-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SGaFuPzEwywWfmKyEypDCwN2IV+HsUZY/gU/x4Aler3mZODnGaHTLgLdmq/dBUf9 2HESDERp4WscuYMTLe/BKw== 0000950123-10-082600.txt : 20100831 0000950123-10-082600.hdr.sgml : 20100831 20100831123107 ACCESSION NUMBER: 0000950123-10-082600 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100831 DATE AS OF CHANGE: 20100831 EFFECTIVENESS DATE: 20100831 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONWIDE VARIABLE INSURANCE TRUST CENTRAL INDEX KEY: 0000353905 IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03213 FILM NUMBER: 101049179 BUSINESS ADDRESS: STREET 1: 1000 CONTINENTAL DRIVE STREET 2: SUITE 400 CITY: KING OF PRUSSIA STATE: PA ZIP: 19406 BUSINESS PHONE: 610-230-2864 MAIL ADDRESS: STREET 1: 1000 CONTINENTAL DRIVE STREET 2: SUITE 400 CITY: KING OF PRUSSIA STATE: PA ZIP: 19406 FORMER COMPANY: FORMER CONFORMED NAME: GARTMORE VARIABLE INSURANCE TRUST DATE OF NAME CHANGE: 20020125 FORMER COMPANY: FORMER CONFORMED NAME: NATIONWIDE SEPARATE ACCOUNT TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: NATIONWIDE SEPARATE ACCOUNT MONEY MARKET TRUST DATE OF NAME CHANGE: 19860226 0000353905 S000005399 NVIT Multi-Manager International Value Fund C000014691 Class I C000014692 Class II C000014693 Class III C000014694 Class IV C000014695 Class VI C000062007 Class Y 0000353905 S000005400 NVIT Government Bond Fund C000014696 Class I C000014697 Class II C000014698 Class III C000014699 Class IV 0000353905 S000005401 NVIT Growth Fund C000014700 Class I C000014701 Class IV 0000353905 S000005402 Gartmore NVIT International Equity Fund C000014702 Class I C000014703 Class III C000033125 Class II C000062008 Class Y C000062667 Class VI 0000353905 S000005403 NVIT Investor Destinations Aggressive Fund C000014704 Class II C000014705 Class VI 0000353905 S000005404 NVIT Investor Destinations Conservative Fund C000014706 Class II C000014707 Class VI 0000353905 S000005405 NVIT Investor Destinations Moderate Fund C000014708 Class II C000014709 Class VI 0000353905 S000005406 NVIT Investor Destinations Moderately Aggressive Fund C000014710 Class II C000014711 Class VI 0000353905 S000005407 NVIT Investor Destinations Moderately Conservative Fund C000014712 Class II C000014713 Class VI 0000353905 S000005409 NVIT Money Market Fund C000014718 Class I C000014719 Class IV C000014720 Class V C000034092 Class Y C000079439 Class II 0000353905 S000005410 NVIT Mid Cap Index Fund C000014721 Class I C000014722 Class II C000033126 Class III C000034093 Class Y 0000353905 S000005412 NVIT Nationwide Fund C000014724 Class I C000014725 Class II C000014726 Class III C000014727 Class IV C000062009 Class Y 0000353905 S000005415 Gartmore NVIT Worldwide Leaders Fund C000014733 Class I C000014734 Class III C000033128 Class II C000075320 Class VI 0000353905 S000005416 NVIT S&P 500 Index Fund C000014735 Class IV C000033129 Class I C000033130 Class II C000034094 Class Y 0000353905 S000005417 NVIT Multi-Manager Small Cap Growth Fund C000014736 Class I C000014737 Class II C000014738 Class III C000062010 Class Y 0000353905 S000005418 NVIT Multi-Manager Small Cap Value Fund C000014739 Class I C000014740 Class II C000014741 Class III C000014742 Class IV C000062011 Class Y 0000353905 S000005419 NVIT Multi-Manager Small Company Fund C000014743 Class I C000014744 Class II C000014745 Class III C000014746 Class IV C000062012 Class Y 0000353905 S000005421 Federated NVIT High Income Bond Fund C000014749 Class I C000014750 Class III 0000353905 S000005422 Van Kampen NVIT Comstock Value Fund C000014751 Class I C000014752 Class II C000014753 Class IV C000062013 Class Y 0000353905 S000005423 NVIT Multi Sector Bond Fund C000014754 Class I C000033131 Class III 0000353905 S000005424 NVIT Developing Markets Fund C000014755 Class II C000033132 Class I 0000353905 S000005425 NVIT Emerging Markets Fund C000014756 Class I C000014757 Class II C000014758 Class III C000014759 Class VI C000075321 Class Y 0000353905 S000012213 American Funds NVIT Growth Fund C000033344 Class II C000033345 Class VII 0000353905 S000012214 American Funds NVIT Global Growth Fund C000033346 Class II C000033347 Class VII 0000353905 S000012215 American Funds NVIT Asset Allocation Fund C000033348 Class II C000033349 Class VII 0000353905 S000012216 American Funds NVIT Bond Fund C000033350 Class II C000033351 Class VII 0000353905 S000012312 NVIT Bond Index Fund C000033502 Class Y C000033503 Class II 0000353905 S000012313 NVIT International Index Fund C000033505 Class Y C000033506 Class II C000033507 Class VI C000033509 Class VIII 0000353905 S000012314 NVIT Small Cap Index Fund C000033510 Class II C000033512 Class Y 0000353905 S000012315 NVIT Enhanced Income Fund C000033513 Class Y C000033514 Class II 0000353905 S000016867 American Funds NVIT Growth-Income Fund C000046995 Class II C000046996 Class VII 0000353905 S000021031 NVIT Core Bond Fund C000059797 Class I C000059798 Class II C000059799 Class Y 0000353905 S000021032 Neuberger Berman NVIT Socially Responsible Fund C000059800 Class I C000059801 Class II C000059802 Class Y 0000353905 S000021033 NVIT Core Plus Bond Fund C000059803 Class I C000059804 Class II C000059805 Class Y 0000353905 S000021034 NVIT Multi-Manager International Growth Fund C000059806 Class VI C000059807 Class Y C000059808 Class I C000059809 Class II C000059810 Class III 0000353905 S000021035 NVIT Multi-Manager Large Cap Growth Fund C000059811 Class I C000059812 Class II C000059813 Class Y 0000353905 S000021036 NVIT Multi-Manager Mid Cap Growth Fund C000059814 Class I C000059815 Class II C000059816 Class Y 0000353905 S000021037 NVIT Multi-Manager Mid Cap Value Fund C000059817 Class I C000059818 Class II C000059819 Class Y 0000353905 S000021038 Neuberger Berman NVIT Multi Cap Opportunities Fund C000059820 Class I C000059821 Class II 0000353905 S000021039 NVIT Real Estate Fund C000059822 Class I C000059823 Class II C000059824 Class Y 0000353905 S000021040 NVIT Short Term Bond Fund C000059825 Class I C000059826 Class II C000059827 Class Y 0000353905 S000021212 NVIT Multi-Manager Large Cap Value Fund C000060393 Class I C000060394 Class II C000060395 Class Y 0000353905 S000021213 NVIT Cardinal Aggressive Fund C000060396 Class I C000060397 Class II 0000353905 S000021214 NVIT Cardinal Moderately Aggressive Fund C000060398 Class I C000060399 Class II 0000353905 S000021215 NVIT Cardinal Capital Appreciation Fund C000060400 Class I C000060401 Class II 0000353905 S000021216 NVIT Cardinal Moderate Fund C000060402 Class I C000060403 Class II 0000353905 S000021217 NVIT Cardinal Balanced Fund C000060404 Class II C000060405 Class I 0000353905 S000021218 NVIT Cardinal Moderately Conservative Fund C000060406 Class I C000060407 Class II 0000353905 S000021219 NVIT Cardinal Conservative Fund C000060408 Class I C000060409 Class II 0000353905 S000025031 AllianceBernstein NVIT Global Fixed Income Fund C000074464 Class I C000074465 Class II C000074466 Class III C000074467 Class VI C000074468 Class Y 0000353905 S000025032 American Century NVIT Multi Cap Value Fund C000074469 Class I C000074470 Class II C000074471 Class Y 0000353905 S000025033 Oppenheimer NVIT Large Cap Growth Fund C000074472 Class II C000074473 Class Y C000074474 Class I 0000353905 S000025034 Templeton NVIT International Value Fund C000074475 Class I C000074476 Class II C000074477 Class III C000074478 Class VI C000074479 Class Y 0000353905 S000025035 NVIT Investor Destinations Capital Appreciation Fund C000074480 Class II C000074481 Class VI 0000353905 S000025036 NVIT Investor Destinations Balanced Fund C000074482 Class II C000074483 Class VI N-CSRS 1 w79649nvcsrs.htm N-CSRS nvcsrs
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number: 811-03213
NATIONWIDE VARIABLE INSURANCE TRUST
(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)
Registrant’s telephone number, including area code: (610) 230-2839
Date of fiscal year end: December 31, 2010
Date of reporting period: January 1, 2010 through June 30, 2010
     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 CFR § 270.30e-1). The Commission may use the information provided on Form N-CSR in the Commission’s 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.
 
 
Item 1. Reports to Stockholders.
Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR § 270.30e-1).

 

 

NVIT Money Market Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MMKT (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Money Market Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Money Market Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       1,000.00       1.39       0.28  
      Hypothetical b     1,000.00       1,023.41       1.40       0.28  
 
 
Class II Shares
    Actual       1,000.00       1,000.00       1.39       0.28  
      Hypothetical b     1,000.00       1,023.41       1.40       0.28  
 
 
Class IV Shares
    Actual       1,000.00       1,000.00       1.44       0.29  
      Hypothetical b     1,000.00       1,023.36       1.45       0.29  
 
 
Class V Shares
    Actual       1,000.00       1,000.00       1.39       0.28  
      Hypothetical b     1,000.00       1,023.41       1.40       0.28  
 
 
Class Y Shares
    Actual       1,000.00       1,000.00       1.39       0.28  
      Hypothetical b     1,000.00       1,023.41       1.40       0.28  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Money Market Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Commercial Paper
    61 .0%
U.S. Government Sponsored & Agency Obligations
    13 .9%
Certificates of Deposit
    12 .8%
Mutual Funds
    9 .8%
Corporate Bonds
    1 .5%
Other assets in excess of liabilities
    1 .0%
         
      100 .0%
 
         
Top Industries †    
 
Finance-Retail
    21 .1%
Finance-Commercial
    18 .9%
Banking
    17 .9%
Asset Management
    9 .9%
Finance-Automotive
    6 .8%
Diversified
    5 .0%
Food & Beverage
    0 .9%
Pharmaceuticals and Health Care
    0 .6%
Retail
    0 .1%
Other Industries
    18 .8%
         
      100 .0%
         
Top Holdings †    
 
Federated Prime Cash Obligations Fund, Institutional Shares, Class I
    5 .0%
Enterprise Funding Co. LLC, 0.09%, 07/01/10
    5 .0%
General Electric Co., 0.08%, 07/01/10
    5 .0%
Federated Prime Obligations Fund, Institutional Shares, Class I
    4 .9%
Federal Home Loan Banks, 0.29%, 07/09/10
    4 .4%
Credit Agricole Corporate and Investment Bank — New York, 0.45%, 08/12/10
    4 .0%
Yorktown Capital LLC, 0.33%, 07/26/10
    3 .7%
FCAR Owner Trust, 0.60%, 07/09/10
    3 .0%
Alpine Securitization Corp., 0.26%, 07/02/10
    2 .7%
Banco Bilbao Vizcaya Argentaria SA, 0.47%, 08/06/10
    2 .7%
Other Holdings
    59 .6%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Money Market Fund
 
                 
                 
Certificates of Deposit 12.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Banking 12.8%
Banco Bilbao Vizcaya Argentaria SA,
0.47%, 08/06/10
  $ 66,500,000     $ 66,500,332  
Bank of Montreal,
0.35%, 12/06/10
    8,000,000       8,000,000  
Barclays Bank PLC,
0.60%, 01/21/11
    35,000,000       35,000,000  
BNP Paribas,
0.31%, 07/15/10
    21,000,000       21,000,000  
Credit Agricole Corporate and Investment Bank — New York
               
0.45%, 08/12/10
    100,000,000       100,000,000  
0.34%, 08/20/10
    8,000,000       8,000,000  
Societe Generale — New York,
0.36%, 07/30/10
    60,000,000       60,000,000  
State Street Bank and Trust Co.,
0.35%, 09/21/10
    25,000,000       25,000,000  
Toronto Dominion Bank — New York,
0.35%, 12/09/10
    2,000,000       2,000,000  
                 
         
Total Certificates of Deposit (cost $325,500,332)
    325,500,332  
         
                 
                 
Commercial Paper 61.0%
Banking 4.9%
Australia & New Zealand Banking Group Ltd.,
0.38%, 01/28/11 (a)
    6,200,000       6,200,000  
Banco Bilbao Vizcaya Argentaria SA,
0.31%, 07/08/10 (a)
    15,000,000       14,999,096  
BNP Paribas Finance, Inc.,
0.61%, 09/16/10
    37,000,000       36,951,725  
Danske Corp.,
0.30%, 07/19/10 (a)
    18,000,000       17,997,300  
Societe Generale North America, Inc.
0.27%, 07/07/10
    12,000,000       11,999,460  
0.38%, 09/28/10
    3,000,000       2,997,181  
Surrey Funding Corp.,
0.33%, 08/02/10 (a)
    7,000,000       6,997,947  
Ticonderoga Funding LLC,
0.10%, 07/01/10 (a)
    13,000,000       13,000,000  
UBS Finance Delaware LLC,
0.03%, 07/01/10
    13,029,000       13,029,000  
                 
              124,171,709  
                 
 
 
Diversified 4.9%
General Electric Co.,
0.08%, 07/01/10
    125,000,000       125,000,000  
                 
 
 
Finance-Automotive 6.8%
FCAR Owner Trust
               
0.60%, 07/09/10
    75,000,000       74,990,000  
0.57%, 07/16/10
    21,000,000       20,995,013  
0.60%, 10/01/10
    17,000,000       16,973,933  
0.67%, 11/01/10
    14,000,000       13,967,952  
Toyota Motor Credit Corp.
               
0.37%, 07/14/10
    5,600,000       5,599,252  
0.43%, 07/22/10
    4,200,000       4,198,946  
0.54%, 08/16/10
    5,000,000       4,996,550  
0.75%, 12/01/10
    30,000,000       29,904,375  
                 
              171,626,021  
                 
 
 
Finance-Commercial 17.9%
Atlantic Asset Securitization LLC
               
0.28%, 07/09/10 (a)
    26,000,000       25,998,382  
0.35%, 07/13/10 (a)
    50,000,000       49,994,167  
0.55%, 08/23/10 (a)
    7,400,000       7,394,008  
Edison Asset Securitization LLC
               
0.30%, 07/20/10 (a)
    20,815,000       20,811,704  
0.35%, 07/30/10 (a)
    60,000,000       59,983,083  
0.38%, 08/09/10 (a)
    23,000,000       22,990,532  
0.46%, 09/07/10 (a)
    15,000,000       14,986,967  
Enterprise Funding Co. LLC,
               
0.09%, 07/01/10 (a)
    125,000,000       125,000,000  
Fairway Finance LLC,
               
0.46%, 12/09/10 (a)
    10,000,000       9,999,560  
Market Street Funding LLC
               
0.08%, 07/01/10 (a)
    25,001,000       25,001,000  
0.50%, 08/24/10 (a)
    26,043,000       26,023,468  
Starbird Funding Corp.
               
0.55%, 08/27/10 (a)
    40,000,000       39,965,167  
0.58%, 09/13/10 (a)
    25,000,000       24,970,194  
                 
              453,118,232  
                 
 
 
Finance-Retail 20.9%
Alpine Securitization Corp.
               
0.26%, 07/02/10 (a)
    68,000,000       67,999,509  
0.26%, 07/06/10 (a)
    20,000,000       19,999,278  
Barton Capital Corp.,
               
0.38%, 07/19/10 (a)
    15,000,000       14,997,150  
Chariot Funding LLC,
               
0.38%, 08/19/10 (a)
    55,897,000       55,868,089  
Falcon Asset Securitization Co. LLC, 0.35%, 07/16/10 (a)
    50,000,000       49,992,708  
Jupiter Securitization Co. LLC
               
0.09%, 07/01/10 (a)
    10,000,000       10,000,000  
0.45%, 09/15/10 (a)
    40,000,000       39,962,000  
Salisbury Receivables Co. LLC
               
0.08%, 07/01/10 (a)
    2,725,000       2,725,000  
0.38%, 07/09/10 (a)
    17,000,000       16,998,564  
0.40%, 07/26/10 (a)
    53,000,000       52,985,278  
0.38%, 08/17/10 (a)
    20,000,000       19,990,078  
0.50%, 09/02/10 (a)
    28,000,000       27,975,500  
Sheffield Receivables Corp.,
               
0.42%, 08/11/10 (a)
    25,000,000       24,988,042  
Yorktown Capital LLC
               
0.09%, 07/01/10 (a)
    33,400,000       33,400,000  
0.33%, 07/26/10 (a)
    91,700,000       91,678,985  
                 
              529,560,181  
                 
 
 
Food & Beverage 0.9%
Nestle Capital Corp.,
0.24%, 08/13/10 (a)
    22,000,000       21,993,693  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Money Market Fund (Continued)
 
                 
Commercial Paper (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Government Agency 4.7%
Straight-A Funding LLC
               
0.26%, 07/12/10
  $ 49,000,000     $ 48,996,107  
0.40%, 08/09/10
    25,000,000       24,989,167  
0.43%, 08/27/10
    43,000,000       42,970,724  
0.40%, 09/17/10
    3,877,000       3,873,640  
                 
              120,829,638  
                 
         
Total Commercial Paper (cost $1,546,299,474)
    1,546,299,474  
         
                 
                 
Corporate Bonds 1.5%
Finance-Commercial 0.8%
General Electric Capital Corp.
               
4.25%, 09/13/10
    1,400,000       1,409,326  
0.35%, 10/06/10 (b)
    5,414,000       5,410,923  
5.00%, 12/01/10
    3,200,000       3,260,732  
6.13%, 02/22/11
    11,325,000       11,714,715  
                 
              21,795,696  
                 
 
 
Pharmaceuticals and Health Care 0.6%
Roche Holdings, Inc.,
2.50%, 02/25/11 (a) (b)
    14,400,000       14,589,777  
                 
 
 
Retail 0.1%
Wal-Mart Stores, Inc.,
4.13%, 02/15/11
    2,000,000       2,045,689  
                 
         
Total Corporate Bonds (cost $38,431,162)
    38,431,162  
         
                 
                 
U.S. Government Sponsored & Agency
Obligations 13.9%
Government Agency Securities 12.9%
Federal Home Loan Banks
               
0.29%, 07/09/10 (b)
    110,000,000       110,000,000  
0.55%, 08/04/10
    32,000,000       31,997,997  
0.13%, 08/25/10
    25,000,000       24,995,226  
0.40%, 12/27/10
    50,000,000       50,000,000  
0.50%, 03/14/11
    10,000,000       10,000,000  
0.60%, 04/18/11
    20,000,000       20,000,000  
0.65%, 05/25/11
    25,000,000       25,000,000  
0.25%, 07/20/11 (b)
    50,000,000       49,983,972  
Federal National Mortgage Association,
0.26%, 08/11/11 (b)
    3,600,000       3,597,585  
                 
              325,574,780  
                 
U.S. Treasury Notes 1.0%
U.S. Treasury Note,
5.13%, 06/30/11
    25,000,000       26,179,699  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $351,754,479)
    351,754,479  
         
                 
                 
Mutual Funds 9.8%
                 
      Shares       Market
Value 		 
 
 
Asset Management 9.8%
Federated Prime Cash Obligations Fund, Institutional Shares,
Class I, 0.20% (c)
    125,171,658       125,171,658  
Federated Prime Obligations Fund, Institutional Shares, Class I, 0.20% (c)
    122,037,918       122,037,918  
                 
         
Total Mutual Funds (cost $247,209,576)
    247,209,576  
         
         
Total Investments (Cost $2,509,195,023) (d) — 99.0%
    2,509,195,023  
         
Other assets in excess of liabilities — 1.0%
    25,729,518  
         
         
NET ASSETS — 100.0%
  $ 2,534,924,541  
         
 
(a) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $1,078,456,226 which represents 42.54% of net assets.
 
(b) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
LLC Limited Liability Company
 
Ltd. Limited
 
PLC Public Limited Company
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
 
           
           
      NVIT Money
 		 
      Market Fund  
       
Assets:
         
Investments, at value (cost $2,509,195,023)
    $ 2,509,195,023  
Cash
      11,552  
Interest and dividends receivable
      802,333  
Receivable for capital shares issued
      32,150,324  
Prepaid expenses and other assets
      24,019  
           
Total Assets
      2,542,183,251  
           
Liabilities:
         
Payable for capital shares redeemed
      6,274,579  
Accrued expenses and other payables:
         
Investment advisory fees
      641,143  
Fund administration fees
      62,352  
Accounting and transfer agent fees
      15,609  
Custodian fees
      33,267  
Compliance program costs (Note 3)
      9,107  
Professional fees
      95,153  
Printing fees
      82,741  
Other
      44,759  
           
Total Liabilities
      7,258,710  
           
Net Assets
    $ 2,534,924,541  
           
Represented by:
         
Capital
    $ 2,536,479,281  
Accumulated net realized losses from investment transactions
      (1,554,740 )
           
Net Assets
    $ 2,534,924,541  
           
Net Assets:
         
Class I Shares
    $ 1,256,492,515  
Class II Shares
      366,636,967  
Class IV Shares
      86,713,886  
Class V Shares
      523,015,033  
Class Y Shares
      302,066,140  
           
Total
    $ 2,534,924,541  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      1,257,360,549  
Class II Shares
      366,829,039  
Class IV Shares
      86,760,746  
Class V Shares
      523,376,366  
Class Y Shares
      302,156,222  
           
Total
      2,536,482,922  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 1.00  
Class II Shares
    $ 1.00  
Class IV Shares
    $ 1.00  
Class V Shares
    $ 1.00  
Class Y Shares
    $ 1.00  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 


Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
 
           
           
      NVIT Money
 		 
      Market Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 3,237,544  
Dividend income
      162,842  
           
Total Income
      3,400,386  
           
EXPENSES:
         
Investment advisory fees
      4,684,984  
Fund administration fees
      405,090  
Distribution fees Class II Shares
      397,682  
Administrative servicing fees Class I Shares
      962,601  
Administrative servicing fees Class II Shares
      246,984  
Administrative servicing fees Class IV Shares
      80,701  
Administrative servicing fees Class V Shares
      264,594  
Professional fees
      116,044  
Printing fees
      38,129  
Trustee fees
      41,756  
Custodian fees
      37,217  
Accounting and transfer agent fees
      17,491  
Compliance program costs (Note 3)
      5,054  
Other
      58,235  
           
Total expenses before earnings credit and expenses waived and reimbursed
      7,356,562  
           
Distribution fees voluntarily waived — Class II (Note 3)
      (385,912 )
Earnings credit (Note 4)
      (1,296 )
Investment advisory fees voluntarily waived (Note 3)
      (1,802,439 )
Administrative servicing fees voluntarily waived — Class I (Note 3)
      (962,601 )
Administrative servicing fees voluntarily waived — Class II (Note 3)
      (246,984 )
Administrative servicing fees voluntarily waived — Class IV (Note 3)
      (41,688 )
Administrative servicing fees voluntarily waived — Class V (Note 3)
      (264,594 )
Expenses reimbursed by adviser (Note 3)
      (250,662 )
           
Net Expenses
      3,400,386  
           
NET INVESTMENT INCOME
      –  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      1,110  
           
Net realized/unrealized gains from investments
      1,110  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 1,110  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Money Market Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ –       $ 1,327,539  
Net realized gains from investment transactions
      1,110         12,163  
                     
Change in net assets resulting from operations
      1,110         1,339,702  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (1,569 )       (757,904 )
Class II (a)
      (469 )       –  
Class IV
      (112 )       (77,598 )
Class V
      (667 )       (349,983 )
Class Y
      (381 )       (139,444 )
                     
Change in net assets from shareholder distributions
      (3,198 )       (1,324,929 )
                     
Change in net assets from capital transactions
      80,218,739         (325,015,204 )
                     
Change in net assets
      80,216,651         (325,000,431 )
                     
                     
Net Assets:
                   
Beginning of period
      2,454,707,890         2,779,708,321  
                     
End of period
    $ 2,534,924,541       $ 2,454,707,890  
                     
Accumulated undistributed net investment income at end of period
    $ –       $ 3,198  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 325,074,869       $ 370,988,906  
Dividends reinvested
      1,569         757,904  
Cost of shares redeemed
      (358,704,159 )       (931,688,668 )
                     
Total Class I
      (33,627,721 )       (559,941,858 )
                     
Class II Shares (a)
                   
Proceeds from shares issued
      418,379,637         30,012,703  
Proceeds from shares issued from merger (Note 7)
      –         303,548,129  
Dividends reinvested
      469         –  
Cost of shares redeemed
      (347,443,484 )       (37,668,415 )
                     
Total Class II
      70,936,622         295,892,417  
                     
Class IV Shares
                   
Proceeds from shares issued
      16,501,781         45,412,180  
Dividends reinvested
      112         77,598  
Cost of shares redeemed
      (20,738,833 )       (37,445,283 )
                     
Total Class IV
      (4,236,940 )       8,044,495  
                     
Class V Shares
                   
Proceeds from shares issued
      125,749,403         331,384,130  
Dividends reinvested
      667         349,983  
Cost of shares redeemed
      (125,874,885 )       (485,839,382 )
                     
Total Class V
      (124,815 )       (154,105,269 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
(a)  For the period from December 14, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Money Market Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
CAPITAL TRANSACTIONS: (continued)
                   
Class Y Shares
                   
Proceeds from shares issued
    $ 54,119,174       $ 194,501,117  
Dividends reinvested
      381         139,444  
Cost of shares redeemed
      (6,847,962 )       (109,545,550 )
                     
Total Class Y
      47,271,593         85,095,011  
                     
Change in net assets from capital transactions
    $ 80,218,739       $ (325,015,204 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      325,074,869         370,988,906  
Reinvested
      1,569         757,904  
Redeemed
      (358,704,159 )       (931,688,668 )
                     
Total Class I Shares
      (33,627,721 )       (559,941,858 )
                     
Class II Shares (a)
                   
Issued
      418,379,637         30,012,703  
Issued in merger (Note 7)
      –         303,548,129  
Reinvested
      469         –  
Redeemed
      (347,443,484 )       (37,668,415 )
                     
Total Class II Shares
      70,936,622         295,892,417  
                     
Class IV Shares
                   
Issued
      16,501,781         45,412,180  
Reinvested
      112         77,598  
Redeemed
      (20,738,833 )       (37,445,283 )
                     
Total Class IV Shares
      (4,236,940 )       8,044,495  
                     
Class V Shares
                   
Issued
      125,749,403         331,384,130  
Reinvested
      667         349,983  
Redeemed
      (125,874,885 )       (485,839,382 )
                     
Total Class V Shares
      (124,815 )       (154,105,269 )
                     
Class Y Shares
                   
Issued
      54,119,174         194,501,117  
Reinvested
      381         139,444  
Redeemed
      (6,847,962 )       (109,545,550 )
                     
Total Class Y Shares
      47,271,593         85,095,011  
                     
Total change in shares
      80,218,739         (325,015,204 )
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
(a) For the period from December 14, 2009 (commencement of operations) through December 31, 2009.
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Money Market Fund
                                                                                                                 
    Operations     Distributions                 Ratios / Supplemental Data    
     
                                                                Ratio of
 		   
                                                          Ratio of Net
 		    Expenses
 		   
    Net Asset
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		   
    Value,
 		    Net
 		    Total
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		   
    Beginning
 		    Investment
 		    from
 		    Investment
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		   
    of Period     Income     Operations     Income     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)    
Class I Shares
                                                                                                               
Six Months Ended June 30, 2010 (Unaudited) (c)
  $ 1 .00       –          –          –          –        $ 1 .00       –        $ 1,256,492,515         0 .28%       –          0 .60%    
Year Ended December 31, 2009 (c)
  $ 1 .00       –          –          –          –        $ 1 .00       0 .04%     $ 1,290,121,011         0 .53%       0 .05%       0 .67%    
Year Ended December 31, 2008
  $ 1 .00       0 .02       0 .02       (0 .02)       (0 .02)     $ 1 .00       2 .05%(d)     $ 1,849,909,902         0 .59%       2 .00%       0 .60%(e)    
Year Ended December 31, 2007
  $ 1 .00       0 .05       0 .05       (0 .05)       (0 .05)     $ 1 .00       4 .79%(f)     $ 1,555,557,742         0 .64%       4 .69%       0 .64%(e)    
Year Ended December 31, 2006
  $ 1 .00       0 .04       0 .04       (0 .04)       (0 .04)     $ 1 .00       4 .53%     $ 1,269,500,302         0 .64%       4 .46%       0 .64%(g)    
Year Ended December 31, 2005
  $ 1 .00       0 .03       0 .03       (0 .03)       (0 .03)     $ 1 .00       2 .67%     $ 1,173,300,924         0 .65%       2 .63%       0 .65%(g)    
                                                                                                                 
Class II Shares
                                                                                                               
Six Months Ended June 30, 2010 (Unaudited) (c)
  $ 1 .00       –          –          –          –        $ 1 .00       –        $ 366,636,967         0 .28%       –          0 .83%    
Period Ended December 31, 2009 (c)(h)
  $ 1 .00       –          –          –          –        $ 1 .00       0 .04%     $ 295,700,874         0 .29%       –          0 .86%    
                                                                                                                 
Class IV Shares
                                                                                                               
Six Months Ended June 30, 2010 (Unaudited) (c)
  $ 1 .00       –          –          –          –        $ 1 .00       –        $ 86,713,886         0 .29%       –          0 .60%    
Year Ended December 31, 2009 (c)
  $ 1 .00       –          –          –          –        $ 1 .00       0 .09%     $ 90,950,906         0 .47%       0 .10%       0 .71%    
Year Ended December 31, 2008
  $ 1 .00       0 .02       0 .02       (0 .02)       (0 .02)     $ 1 .00       2 .15%(d)     $ 82,903,026         0 .50%       2 .12%       0 .62%(e)    
Year Ended December 31, 2007
  $ 1 .00       0 .05       0 .05       (0 .05)       (0 .05)     $ 1 .00       4 .94%(f)     $ 78,295,421         0 .50%       4 .83%       0 .62%(e)    
Year Ended December 31, 2006
  $ 1 .00       0 .05       0 .05       (0 .05)       (0 .05)     $ 1 .00       4 .67%     $ 76,972,805         0 .50%       4 .58%       0 .64%(e)    
Year Ended December 31, 2005
  $ 1 .00       0 .03       0 .03       (0 .03)       (0 .03)     $ 1 .00       2 .82%     $ 74,115,275         0 .50%       2 .76%       0 .65%(e)    
                                                                                                                 
Class V Shares
                                                                                                               
Six Months Ended June 30, 2010 (Unaudited) (c)
  $ 1 .00       –          –          –          –        $ 1 .00       –        $ 523,015,033         0 .28%       –          0 .70%    
Year Ended December 31, 2009 (c)
  $ 1 .00       –          –          –          –        $ 1 .00       0 .06%     $ 523,140,279         0 .50%       0 .06%       0 .60%    
Year Ended December 31, 2008
  $ 1 .00       0 .02       0 .02       (0 .02)       (0 .02)     $ 1 .00       2 .14%(d)     $ 677,242,363         0 .51%       2 .07%       0 .52%(e)    
Year Ended December 31, 2007
  $ 1 .00       0 .05       0 .05       (0 .05)       (0 .05)     $ 1 .00       4 .87%(f)     $ 511,681,426         0 .57%       4 .76%       0 .57%(e)    
Year Ended December 31, 2006
  $ 1 .00       0 .05       0 .05       (0 .05)       (0 .05)     $ 1 .00       4 .61%     $ 466,192,183         0 .56%       4 .56%       0 .56%(g)    
Year Ended December 31, 2005
  $ 1 .00       0 .03       0 .03       (0 .03)       (0 .03)     $ 1 .00       2 .75%     $ 318,972,875         0 .57%       2 .69%       0 .57%(g)    
                                                                                                                 
Class Y Shares (i)
                                                                                                               
Six Months Ended June 30, 2010 (Unaudited) (c)
  $ 1 .00       –          –          –          –        $ 1 .00       –        $ 302,066,140         0 .28%       –          0 .60%    
Year Ended December 31, 2009 (c)
  $ 1 .00       –          –          –          –        $ 1 .00       0 .09%     $ 254,794,820         0 .49%       0 .07%       0 .50%    
Year Ended December 31, 2008
  $ 1 .00       0 .02       0 .02       (0 .02)       (0 .02)     $ 1 .00       2 .18%(d)     $ 169,653,030         0 .47%       2 .19%       0 .47%(e)    
Year Ended December 31, 2007
  $ 1 .00       0 .05       0 .05       (0 .05)       (0 .05)     $ 1 .00       4 .97%(f)     $ 182,709,725         0 .45%       4 .79%       0 .45%(e)    
Period Ended December 31, 2006 (j)
  $ 1 .00       0 .03       0 .03       (0 .03)       (0 .03)     $ 1 .00       3 .26%     $ 15,448,182         0 .48%       4 .81%       0 .48%(g)    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  Per share calculations were performed using average shares method.
(d)  Includes payment from the adviser which increased the total return by 0.03% (Note 3).
(e)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(f)  Includes payment from the adviser which increased the total return by 0.25% (Note 3).
(g)  There were no fee reductions during the period.
(h)  For the period from December 14, 2009 (commencement of operations) through December 31, 2009.
(i)  Effective May 1, 2008, Class ID Shares were renamed Class Y Shares.
(j)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Money Market Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds and the NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Investments of the Fund are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. The Fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
 
 
12 Semiannual Report 2010

 

 
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Certificates of Deposit
  $ —     $ 325,500,332       —     $ 325,500,332      
 
 
Commercial Paper
    —       1,546,299,474       —       1,546,299,474      
 
 
Corporate Bonds
    —       38,431,162       —       38,431,162      
 
 
Mutual Funds
    247,209,576       —       —       247,209,576      
 
 
U.S. Government Sponsored & Agency Obligations
    —       351,754,479       —       351,754,479      
 
 
Total Assets
  $ 247,209,576     $ 2,261,985,447     $ —     $ 2,509,195,023      
 
 
Amounts designated as “—”, are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)   Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(c)   Distributions to Shareholders
 
Distributions from net investment income, if any, are declared daily and paid monthly. 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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)   Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Federated Investment Management Company (the “Subadviser”) as sub-adviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.40%      
 
 
    $1 billion up to $2 billion     0.38%      
 
 
    $2 billion up to $5 billion     0.36%      
 
 
    $5 billion and more     0.34%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $398,952 for the six months ended June 30, 2010.
 
During the six-months ended June 30, 2010, the Fund held shares of the Federated Prime Obligations Fund and the Federated Prime Cash Obligations Fund (the “Federated Funds”), that were advised by the Subadviser. The amount of the fee that NFA paid to the Subadviser for subadvising the Fund was reduced by an amount equal to the dollar amount that the Subadviser earned as the investment adviser to the Federated Funds that was attributable to the investment of the Fund’s assets in the Federated Funds (the “Offset Amount”). NFA in turn has waived from its investment advisory fee an amount equal to the Offset Amount.
 
Until April 30, 2010, the Trust and NFA had entered into a written Expense Limitation Agreement, which limited the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.50% for Class IV shares of the Fund.
 
NFA may request and receive reimbursement from the 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
 
 
 
14 Semiannual Report 2010

 

 
 
the fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                         
Fiscal Year
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
$ 89,226     $ 91,053     $ 141,332     $ 250,662     $ 572,273      
 
 
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares, 0.20% of the average daily net assets of Class IV shares and 0.10% of the daily net assets of Class V shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $1,554,880 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $17,491.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of Class II shares of the Fund at an annual rate not to exceed 0.25%.
 
During the six months ended June 30, 2010, NFA voluntarily waived investment advisory fees payable by the Fund in an amount equal to $1,802,439. During the same period, NFD voluntarily waived Rule 12b-1 fees payable by Class II shares of the Fund in an amount equal to $385,912. Also during that period, NFS voluntarily waived fees payable to it pursuant to the Trust’s Administrative Services Plan by Class I, Class II, Class IV and Class V shares of the Fund in an amount equal to $1,515,867. Each of these fee waivers was made voluntarily, and neither NFA, NFD nor NFS shall be entitled to reimbursement by the Fund of any of the amounts waived. Such waivers may be discontinued at any time, and neither NFA, NFD or NFS represents that any of these voluntary waivers will be continued or repeated.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
 
 
16 Semiannual Report 2010

 

 
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had short-term purchases of $30,499,945 and sales of $30,500,000 of U.S. Government Securities.
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
7. Other
 
On December 14, 2009, the Fund acquired all of the net assets of NVIT Money Market Fund II, a series of the Trust that had operated as a money market fund pursuant to Rule 2a-7 of the 1940 Act, pursuant to a plan of reorganization approved by the Trust’s Board of Trustees at a meeting held on September 10, 2009. The purpose of the reorganization was to combine funds managed by NFA that had comparable investment objectives and strategies. The acquisition was accomplished by a tax-free exchange of 303,548,129 shares of the Fund, valued at $303,548,129, for the assets of NVIT Money Market Fund II. The investment portfolio of NVIT Money Market Fund II, with a fair value and identified cost of $303,612,649 at December 13, 2009, was the principal asset acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair current values; however, the cost basis of the investments received from NVIT Money Market Fund II was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the reorganization, the net assets of the Fund were $2,442,437,294.
 
The following pro forma information for the year ended December 31, 2009 is provided as though the reorganization had been completed on January 1, 2009, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operations for the year ended December 31, 2009 are as follows:
 
  •  Net investment income $1,786,221;
 
  •  Net gain on investments $12,163; and
 
  •  Net increase in net assets resulting from operations $1,798,384.
 
Because the Fund’s combined investment portfolio has been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings attributable to NVIT Money Market Fund II that have been included in the Fund’s statement of operations since December 14, 2009.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 2,509,195,023     $ —     $ —     $ —      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Money Market Fund
 
After noting that Federated Investment Management Company (“Federated”) began managing the Fund in April 2009, the Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Federated and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class I shares was in the fifth quintile of its Peer Group and third quintile of its Peer Universe for the one-year period ended September 30, 2009, and in the fourth quintile of its Peer Group and third quintile of its Peer Universe for the three- and five-year periods ended September 30, 2009. The Trustees noted that, for each period, the Fund underperformed its benchmark, the iMoneyNet First Tier Retail Index.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class I shares were in the fourth quintile of its Peer Group, and the Fund’s total expenses were in the fifth quintile of its Peer Group. The Trustees then noted that current market conditions had increased the time and resources dedicated to supporting the Money Market Funds. The Trustees then noted that shareholders of the Fund received the benefit of an advisory fee waiver. In that regard, the Trustees noted that NFA had put significant fee waivers in place due to the low interest rate environment. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule includes breakpoints, and that the second breakpoint has been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
      Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Name and Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
      Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Name and Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

 
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NVIT Multi Sector Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
24
   
Statement of Assets and Liabilities
       
25
   
Statement of Operations
       
26
   
Statements of Changes in Net Assets
       
27
   
Financial Highlights
       
28
   
Notes to Financial Statements
       
39
   
Supplemental Information
       
42
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MSB (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi Sector Bond Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi Sector
  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       1,047.10       5.08       1.00  
      Hypothetical b     1,000.00       1,019.84       5.01       1.00  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi Sector Bond Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Corporate Bonds
    42 .1%
Sovereign Bonds
    16 .4%
U.S. Government Mortgage Backed Agencies
    8 .5%
Collateralized Mortgage Obligations
    7 .9%
Mutual Fund
    5 .9%
Commercial Mortgage Backed Securities
    5 .6%
U.S. Treasury Notes
    5 .0%
Asset-Backed Securities
    4 .6%
U.S. Government Sponsored & Agency Obligations
    1 .5%
U.S. Treasury Bonds
    1 .4%
Municipal Bonds
    0 .5%
Yankee Dollars
    0 .1%
Convertible Corporate Bonds
    0 .1%
Common Stocks ‡
    0 .0%
Other assets in excess of liabilities
    0 .4%
         
      100 .0%
 
         
Top Industries †    
 
Diversified Telecommunication Services
    4 .2%
Diversified Financial Services
    4 .0%
Oil, Gas & Consumable Fuels
    3 .2%
Media
    2 .5%
Capital Markets
    2 .1%
Metals & Mining
    2 .1%
Commercial Banks
    1 .9%
Energy Equipment & Services
    1 .8%
Health Care Providers & Services
    1 .7%
Hotels, Restaurants & Leisure
    1 .6%
Other Industries
    74 .9%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    5 .9%
Fannie Mae Pool, 4.50%, 07/25/40
    4 .1%
U.S. Treasury Note, 1.88%, 06/30/15
    2 .2%
Fannie Mae Pool, 5.50%, 06/01/38
    1 .6%
U.S. Treasury Note, 3.50%, 05/15/20
    1 .3%
Fannie Mae Pool, 4.00%, 07/25/25
    0 .8%
U.S. Treasury Note, 2.13%, 05/31/15
    0 .8%
Brazilian Government International Bond, 4.88%, 01/22/21
    0 .8%
United Kingdom Gilt, 4.00%, 09/07/16
    0 .8%
Argentina Bonos, 0.39%, 08/03/12
    0 .8%
Other Holdings
    80 .9%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund
 
                 
                 
Common Stocks 0.0%
                 
      Shares       Market
Value 		 
 
 
Diversified Telecommunication Services 0.0%†
XO Holdings, Inc.*
    248     $ 166  
                 
 
 
Media 0.0%†
Charter Communications, Inc., Class A*
    1,118       39,465  
Dex One Corp.*
    832       15,808  
SuperMedia, Inc.*
    651       11,907  
                 
              67,180  
                 
         
Total Common Stocks
(cost $985,119)
    67,346  
         
                 
                 
Asset-Backed Securities 4.6%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Automobile 1.6%
Ally Master Owner Trust, Series 2010-1, Class A,
2.10%, 01/15/15 (a) (b)
  $ 660,000       669,011  
AmeriCredit Automobile Receivables Trust,
Series 2009-1, Class A2,
2.26%, 05/15/12
    239,070       240,110  
Ford Credit Floorplan Master Owner Trust
Series 2010-1, Class A,
2.00%, 12/15/14 (a) (b)
    255,000       257,672  
Series 2010-3, Class A2,
2.05%, 02/15/17 (a) (b)
    385,000       394,207  
Harley-Davidson Motorcycle Trust,
Series 2009-2, Class A3,
2.62%, 03/15/14
    395,000       401,662  
Honda Auto Receivables Owner Trust,
Series 2009-2, Class A3,
2.79%, 01/15/13
    185,000       188,250  
Nissan Auto Receivables Owner Trust,
Series 2009-A, Class A3,
3.20%, 02/15/13
    125,000       127,794  
Nissan Master Owner Trust Receivables, Series 2010-AA, Class A,
1.50%, 01/15/15 (a) (b)
    655,000       656,615  
World Omni Auto Receivables Trust,
Series 2009-A, Class A3,
3.33%, 05/15/13
    235,000       239,757  
                 
              3,175,078  
                 
Credit Card 1.9%
Capital One Multi-Asset Execution Trust
Series 2006-B1, Class B1,
0.63%, 01/15/19 (a)
  $ 325,000     $ 305,421  
Series 2006-C1, Class C,
0.64%, 03/17/14 (a)
    275,000       271,581  
Series 2006-C2, Class C,
0.65%, 06/16/14 (a)
    225,000       221,442  
Series 2008-A5, Class A5,
4.85%, 02/18/14
    185,000       190,726  
Chase Issuance Trust
Series 2005-A10, Class A10,
4.65%, 12/17/12
    75,000       75,877  
Series 2009-A2, Class A2,
1.90%, 04/15/14 (a)
    325,000       332,341  
Discover Card Master Trust,
Series 2008-A3, Class A3,
5.10%, 10/15/13
    470,000       485,584  
Discover Card Master Trust I
Series 1996-4, Class B,
0.90%, 10/16/13 (a)
    425,000       424,051  
Series 2005-4, Class A2,
0.44%, 06/16/15 (a)
    400,000       396,441  
Providian Master Note Trust,
Series 2006-C1A, Class C1,
0.90%, 03/15/15 (a) (b)
    510,000       507,147  
Washington Mutual Master Note Trust,
Series 2006-C2A, Class C2,
0.85%, 08/15/15 (a) (b)
    540,000       534,115  
                 
              3,744,726  
                 
 
 
Home Equity 0.5%
Carrington Mortgage Loan Trust,
Series 2006-NC5, Class A1,
0.40%, 01/25/37 (a)
    136,296       129,637  
Countrywide Asset-Backed Certificates,
Series 2006-S6, Class A2,
5.52%, 03/25/34 (a)
    109,985       87,373  
Credit-Based Asset Servicing and Securitization LLC,
Series 2002-CB2, Class A2,
1.45%, 04/25/32 (a)
    489,193       397,444  
GMAC Mortgage Corp. Loan Trust,
Series 2007-HE2, Class A2,
6.05%, 12/25/37 (a)
    999       539  
Provident Bank Home Equity Loan Trust,
Series 2000-2, Class A1,
0.89%, 08/25/31 (a)
    97,650       49,133  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Asset-Backed Securities (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Home Equity (continued)
                 
Renaissance Home Equity Loan Trust
Series 2006-4, Class AF2,
5.29%, 01/25/37 (c)
  $ 240,000     $ 206,613  
Series 2007-1, Class AF2,
5.51%, 04/25/37 (c)
    120,000       59,972  
                 
              930,711  
                 
 
 
Manufactured Housing 0.1%
Mid-State Trust, Series 4,
Class A, 8.33%, 04/01/30
    235,832       239,098  
                 
 
 
Other 0.4%
Countrywide Asset-Backed Certificates, Series 2007-4, Class A2,
5.53%, 09/25/37
    300,000       257,073  
Dunkin Securitization,
Series 2006-1, Class A2,
5.78%, 06/20/31 (b)
    445,000       433,581  
Fannie Mae Grantor Trust, Series 2003-T4, Class 2A5,
5.41%, 09/26/33 (c)
    71,525       66,679  
                 
              757,333  
                 
 
 
Student Loan 0.1%
SLM Student Loan Trust,
Series 2007-3, Class A1,
0.31%, 10/27/14 (a)
    53,758       53,746  
                 
         
Total Asset-Backed Securities (cost $8,369,721)
    8,900,692  
         
                 
                 
Collateralized Mortgage Obligations 7.9%
                 
American General Mortgage Loan Trust,
Series 2010-1A, Class A1,
5.15%, 03/25/58 (a) (b)
    175,302       175,465  
American Home Mortgage Investment Trust,
Series 2004-1, Class 1A,
0.70%, 04/25/44 (a)
    219,499       152,400  
Banc of America Mortgage Securities, Inc.
Series 2004-I, Class 2A2,
               
3.68%, 10/25/34 (a)
    49,530       47,042  
Series 2004-L, Class 2A1,
               
3.31%, 01/25/35 (a)
    263,019       225,371  
Series 2005-7, Class 1A4,
7.50%, 08/25/35
    335,763       325,058  
Series 2005-I, Class 4A1,
5.20%, 10/25/35 (a)
    216,940       192,828  
Series 2007-3, Class 1A1,
6.00%, 09/25/37
    550,996       486,895  
Bear Stearns ALT-A Trust,
Series 2006-3, Class 33A1,
5.96%, 05/25/36 (a)
    163,979       92,437  
Citicorp Mortgage Securities, Inc.,
Series 2006-3, Class 1A9,
5.75%, 06/25/36
    175,000       154,535  
Countrywide Alternative Loan Trust
Series 2005-44, Class 1A2A,
0.64%, 10/25/35 (a)
    13,921       13,854  
Series 2005-59, Class M,
0.95%, 11/20/35 (a) (d)
    1,351,446       5,271  
Series 2005-72, Class M2,
1.17%, 01/25/36 (a) (d)
    2,210,000       3,315  
Countrywide Home Loan Mortgage Pass Through Trust
Series 2005-11, Class 5A1,
0.65%, 03/25/35 (a)
    374,555       226,791  
Series 2006-1, Class A2,
6.00%, 03/25/36
    178,573       159,729  
Series 2006-HYB3, Class 3A1A,
5.95%, 05/20/36 (a)
    108,748       77,491  
Credit Suisse First Boston Mortgage Securities Corp.,
Series 2002-CKN2, Class C1,
6.38%, 04/15/37 (a)
    55,000       54,199  
Deutsche ALT-A Securities, Inc. Alternate Loan Trust,
Series 2003-4XS, Class A6A,
4.82%, 10/25/33 (c)
    172,991       161,463  
Fannie Mae Interest Strip
Series 207, Class 2,
8.00%, 02/01/23
    170,260       38,171  
Series 264, Class 2,
8.00%, 07/01/24
    412,967       92,910  
Series 267, Class 2,
8.50%, 10/01/24
    401,759       91,608  
Series 274, Class 2,
8.50%, 10/01/25
    371,113       85,593  
Series 277, Class 2,
7.50%, 04/01/27
    202,971       49,473  
Fannie Mae REMICS
Series 2006-22, Class CE,
4.50%, 08/25/23
    110,000       115,639  
Series 2009-71, Class MB,
4.50%, 09/25/24
    180,000       190,698  
Series 2004-70, Class EB,
5.00%, 10/25/24
    205,000       221,272  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Collateralized Mortgage Obligations (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Fannie Mae REMICS (continued)
Series 1997-61, Class PK,
8.00%, 08/18/27
  $ 290,109     $ 71,742  
Series 2009-39, Class LB,
4.50%, 06/25/29
    125,000       128,132  
Series 2009-69, Class MB,
4.00%, 09/25/29
    320,000       319,459  
Series 2009-96, Class DB,
4.00%, 11/25/29
    475,000       471,101  
Series 2003-82, Class IA,
6.00%, 08/25/32
    95,066       2,576  
Series 2003-35, Class UI,
6.50%, 05/25/33
    197,169       40,044  
Series 2003-32, Class UI,
6.00%, 05/25/33
    685,383       113,974  
Series 2003-41, Class IB,
7.00%, 05/25/33
    506,751       89,786  
Series 2003-44, Class IB,
6.00%, 06/25/33
    216,997       31,113  
Series 2007-39, Class EF,
0.60%, 05/25/37 (a)
    86,416       85,985  
Fannie Mae-Aces,
Series 2006-M2, Class A2F,
5.26%, 05/25/20 (a)
    40,000       44,669  
FDIC Structured Sale Guaranteed Notes,
Series 2010-L2A, Class A,
3.00%, 09/30/19 (b)
    731,186       739,363  
First Horizon Asset Securities, Inc., Series 2004-AR5, Class 4A1,
5.67%, 10/25/34 (a)
    47,486       48,723  
Freddie Mac REMICS
Series 3540, Class CD,
2.00%, 06/15/14
    911,182       914,591  
Series 3640, Class JA,
1.50%, 03/15/15
    1,062,063       1,065,235  
Series 1103, Class N,
1,156.50%, 06/15/21
    5       117  
Series 3558, Class G,
4.00%, 08/15/24
    485,000       487,138  
Series 3123, Class HT,
5.00%, 03/15/26
    125,000       137,248  
Series 3150, Class EQ,
5.00%, 05/15/26
    120,000       130,552  
Series 2129, Class SG,
6.63%, 06/17/27 (a)
    722,842       135,540  
Series 3563, Class LB,
4.00%, 08/15/29
    195,000       189,377  
Series 3599, Class DY,
4.50%, 11/15/29
    420,000       435,704  
Series 3620, Class EL,
4.00%, 01/15/30
    185,000       182,306  
Series 3653, Class B,
4.50%, 04/15/30
    395,000       412,593  
Series 2588, Class DG,
5.00%, 03/15/32
    268,032       281,192  
Series 2557, Class IW,
6.00%, 04/15/32
    323,846       10,375  
Series 2649, Class IM,
7.00%, 07/15/33
    243,436       42,061  
Series 2725, Class TA,
4.50%, 12/15/33
    20,000       19,449  
GE Capital Commercial Mortgage Corp., Series 2003-C2, Class F,
5.70%, 07/10/37 (a) (b)
    45,000       44,919  
GMAC Mortgage Corp. Loan Trust, Series 2005-AR2, Class 4A,
5.03%, 05/25/35 (a)
    138,323       121,836  
Government National Mortgage Association, Series 2010-14, Class A,
4.50%, 06/16/39
    247,204       259,351  
JPMorgan Mortgage Trust
Series 2005-A6, Class 1A2,
5.15%, 09/25/35 (a)
    195,000       163,509  
Series 2005-A8, Class 1A1,
5.41%, 11/25/35 (a)
    175,835       157,340  
Series 2006-A6, Class 1A2,
5.93%, 10/25/36 (a)
    30,271       26,543  
Nomura Asset Acceptance Corp., Series 2004-AR2, Class 3A3,
1.27%, 10/25/34 (a)
    166,879       137,146  
Structured Adjustable Rate Mortgage Loan Trust,
Series 2006-5, Class 5A4,
5.49%, 06/25/36 (a)
    104,028       19,791  
Structured Asset Mortgage Investments, Inc.,
Series 2006-AR7, Class B1,
0.72%, 08/25/36 (a) (d)
    2,450,000       6,125  
Structured Asset Securities Corp.
Series 2003-34A, Class 6A,
4.89%, 11/25/33 (a)
    605,924       580,733  
Series 2005-6, Class B2,
5.29%, 05/25/35 (a)
    350,202       17,642  
WaMu Mortgage Pass Through Certificates Series 2006-AR10, Class 1A1,
5.87%, 09/25/36 (a)
    673,262       526,244  
Series 2006-AR14, Class 1A4,
5.54%, 11/25/36 (a)
    274,177       212,647  
Series 2007-HY3, Class 4A1,
5.29%, 03/25/37 (a)
    475,366       403,349  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Collateralized Mortgage Obligations (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Wells Fargo Mortgage Backed Securities Trust
Series 2004-P, Class 2A1,
3.02%, 09/25/34 (a)
  $ 136,323     $ 133,023  
Series 2004-BB, Class A2,
2.90%, 01/25/35 (a)
    49,690       47,410  
Series 2005-AR2, Class 2A1,
2.88%, 03/25/35 (a)
    242,811       217,013  
Series 2005-AR16, Class 2A1,
3.00%, 10/25/35 (a)
    929,915       861,556  
Series 2005-14, Class 2A1,
5.50%, 12/25/35
    196,598       187,291  
Series 2005-17, Class 1A1,
5.50%, 01/25/36
    119,402       115,598  
Series 2006-3, Class A1,
5.50%, 03/25/36
    465,445       427,450  
Series 2006-AR6, Class 7A1,
5.08%, 03/25/36 (a)
    218,775       205,163  
Series 2006-AR10, Class 5A1,
5.46%, 07/25/36 (a)
    356,203       284,642  
Series 2006-AR11, Class A7,
5.33%, 08/25/36 (a)
    596,880       227,115  
                 
         
Total Collateralized Mortgage Obligations (cost $13,861,208)
    15,453,089  
         
                 
                 
Commercial Mortgage Backed Securities 5.6%
                 
Asset Securitization Corp.,
Series 1997-D5, Class A3
7.11%, 02/14/43 (a)
    70,000       75,501  
Banc of America Commercial Mortgage, Inc.
Series 2000-2, Class B,
7.38%, 09/15/32 (a)
    55,000       54,939  
Series 2000-2, Class C,
7.44%, 09/15/32 (a)
    170,000       169,795  
Series 2003-1, Class SBB,
5.86%, 03/11/32 (b)
    86,538       95,040  
Series 2003-1, Class SBE,
6.77%, 03/11/32 (b)
    160,095       179,501  
Series 2006-2, Class A4,
5.93%, 05/10/45 (a)
    150,000       158,869  
Series 2006-4, Class A4,
5.63%, 07/10/46
    210,000       215,821  
Series 2007-2, Class AAB,
5.82%, 04/10/49 (a)
    80,000       85,416  
Series 2008-1, Class A4,
6.37%, 02/10/51 (a)
    305,000       323,699  
Banc of America Commerical Mortgage, Inc.,
Series 2008-1, Class ASB
6.17%, 02/10/51 (a)
    40,000       43,237  
Bear Stearns Commercial Mortgage Securities
Series 2000-WF2, Class C,
7.59%, 10/15/32 (a)
    115,000       115,790  
Series 2001-TOP2, Class A2,
6.48%, 02/15/35
    131,243       134,049  
Series 2007-T26, Class AAB,
5.43%, 01/12/45
    165,000       177,734  
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4
5.43%, 10/15/49
    280,000       285,369  
Citigroup/Deutsche Bank Commercial Mortgage Trust,
Series 2006-CD3, Class A5
5.62%, 10/15/48
    380,000       389,197  
Commercial Mortgage Acceptance Corp., Series 1998-C2, Class E
7.48%, 09/15/30 (a)
    31,586       31,566  
Commercial Mortgage Pass Through Certificates
Series 2001-J1A, Class B,
6.61%, 02/16/34 (a) (b)
    25,000       25,555  
Series 2003-LB1A, Class A2,
4.08%, 06/10/38
    240,000       247,826  
Credit Suisse First Boston Mortgage Securities Corp.
Series 2001-CK1, Class A3,
6.38%, 12/18/35
    18,993       19,192  
Series 2002-CKS4, Class B,
5.33%, 11/15/36
    190,000       196,306  
Series 2003-C3, Class D,
4.13%, 05/15/38
    115,000       110,420  
Crown Castle Towers LLC,
Series 2006-1A, Class B
5.36%, 11/15/36 (b)
    25,000       25,864  
CS First Boston Mortgage Securities Corp.
Series 2001-CF2, Class A4,
6.51%, 02/15/34
    29,755       29,943  
Series 2001-CK1, Class C,
6.73%, 12/18/35
    65,000       66,152  
Series 2002-CKP1, Class A3,
6.44%, 12/15/35
    14,965       15,767  
Series 2005-C6, Class A4,
5.23%, 12/15/40 (a)
    535,000       566,462  
DLJ Commercial Mortgage Corp. Series 2000-CF1, Class A4,
8.02%, 06/10/33 (a)
    28,811       28,800  
Series 2000-CKP1, Class A1B,
7.18%, 11/10/33
    14,702       14,696  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Commercial Mortgage Backed Securities (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
FHLMC Multifamily Structured Pass Through Certificates,
Series K006, Class A2
4.25%, 01/25/20
  $ 690,000     $ 717,314  
First Union Commercial Mortgage Securities, Inc.,
Series 1997-C2, Class D
7.12%, 11/18/29
    128,602       137,190  
First Union National Bank Commercial Mortgage,
Series 2001-C2, Class A2
6.66%, 01/12/43
    125,967       128,223  
First Union National Bank-Bank of America Commercial Mortgage Trust
Series 2001-C1, Class A2,
6.14%, 03/15/33
    20,289       20,480  
Series 2001-C1, Class C,
6.40%, 03/15/33
    25,000       25,323  
GE Capital Commercial Mortgage Corp.
Series 2001-1, Class B,
6.72%, 05/15/33
    95,000       97,427  
Series 2001-1, Class C,
6.97%, 05/15/33 (a)
    60,000       61,652  
Series 2001-1, Class D,
7.11%, 05/15/33 (a)
    190,000       195,202  
Series 2002-1A, Class A3,
6.27%, 12/10/35
    525,000       553,994  
Series 2005-C3, Class A4,
5.05%, 07/10/45 (a)
    30,000       30,005  
GMAC Commercial Mortgage Securities, Inc.,
Series 2004-C3, Class A4
4.55%, 12/10/41
    175,000       177,720  
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A3
4.60%, 08/10/38
    81,761       82,340  
JPMorgan Chase Commercial Mortgage Securities Corp.
Series 2001-CIB3, Class A2, 6.04%, 11/15/35
    15,536       15,719  
Series 2001-CIBC, Class D,
6.75%, 03/15/33
    50,000       50,427  
Series 2002-C1, Class A3,
5.38%, 07/12/37
    305,000       319,398  
Series 2003-C1, Class A2,
4.99%, 01/12/37
    45,000       47,199  
Series 2003-C1, Class B,
5.10%, 01/12/37
    165,000       167,983  
Series 2006-CB15, Class A4,
5.81%, 06/12/43 (a)
    230,000       238,662  
Series 2006-LDP7, Class AJ,
6.06%, 04/15/45 (a)
    150,000       110,668  
Series 2006-LDP7, Class ASB,
6.06%, 04/15/45 (a)
    45,000       48,352  
Series 2007-CB20, Class AJ,
6.30%, 02/12/51 (a)
    115,000       74,627  
Series 2009-IWST, Class A1,
4.31%, 12/05/27 (b)
    164,027       173,295  
Series 2009-IWST, Class A2,
5.63%, 12/05/27 (b)
    320,000       350,102  
Series 2010-C1, Class A1,
3.85%, 06/15/43 (b)
    420,000       430,354  
Series 2010-C1, Class A3,
5.06%, 06/15/43 (b)
    175,000       181,337  
JPMorgan Commercial Mortgage Finance Corp.,
Series 2000-C10, Class B
7.79%, 08/15/32 (a)
    4,148       4,151  
LB-UBS Commercial Mortgage Trust
Series 2000-C4, Class C,
7.61%, 07/15/32
    39,195       39,228  
Series 2000-C5, Class A2,
6.51%, 12/15/26
    40,874       41,155  
Series 2001-C3, Class B,
6.51%, 06/15/36
    55,000       57,023  
Series 2003-C8, Class A2,
4.21%, 11/15/27
    31,420       31,458  
Series 2004-C2, Class A3,
3.97%, 03/15/29
    135,000       137,422  
Series 2004-C4, Class A2,
4.57%, 06/15/29 (a)
    7,011       7,083  
Merrill Lynch Mortgage Trust
Series 2005-CIP1, Class A2,
4.96%, 07/12/38
    346,917       354,680  
Series 2005-CIP1, Class AM,
5.11%, 07/12/38 (a)
    170,000       155,633  
Series 2008-C1, Class A4,
5.69%, 02/12/51
    410,000       413,069  
Morgan Stanley Dean Witter Capital I
Series 2001-DFMA, Class A,
6.00%, 03/14/11 (b)
    79,627       80,910  
Series 2001-FRMA, Class E,
6.69%, 07/12/16 (a) (b)
    60,000       61,104  
OBP Depositor LLC Trust,
Series 2010-OBP, Class A
4.65%, 07/15/45 (b)
    325,000       326,397  
RBSCF Trust,
Series 2010-MB1, Class A2
3.69%, 04/15/24 (b)
    410,000       419,149  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Commercial Mortgage Backed Securities (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Salomon Brothers Mortgage Securities VII, Inc.,
Series 2001-C2, Class C
6.84%, 11/13/36 (a)
  $ 125,000     $ 129,178  
Wachovia Bank Commercial Mortgage Trust,
Series 2004-C14, Class A2
4.37%, 08/15/41
    306,780       313,835  
                 
         
Total Commercial Mortgage Backed Securities (cost $10,299,405)
    10,888,974  
         
                 
                 
Convertible Corporate Bonds 0.1%
                 
                 
Capital Markets 0.0%†
E*Trade Financial Corp.,
0.00%, 08/31/19
    60,000       68,550  
                 
 
 
Marine 0.1%
Horizon Lines, Inc.,
4.25%, 08/15/12
    170,000       140,250  
                 
         
Total Convertible Corporate Bonds (cost $142,291)
    208,800  
         
 
 
                 
                 
Corporate Bonds 42.1%
                 
                 
Aerospace & Defense 0.2%
Honeywell International, Inc.,
5.30%, 03/01/18
    140,000       159,868  
Systems 2001 AT LLC,
6.66%, 09/15/13 (b)
    173,313       183,712  
Triumph Group, Inc.,
8.63%, 07/15/18 (b)
    90,000       91,800  
                 
              435,380  
                 
 
 
Airlines 0.8%
Continental Airlines,
Series 2007-1,
7.34%, 04/19/14
    123,910       118,644  
Continental Airlines Pass Through Trust,
Series 2002-1, Class G2,
6.56%, 02/15/12
    250,000       247,500  
Continental Airlines Pass Through Trust,
Series 1992-2, Class B,
7.57%, 03/15/20
    90,034       88,368  
Delta Air Lines, Inc.,
Series 00A2,
7.57%, 11/18/10
    610,000       617,625  
Delta Air Lines, Inc.,
12.25%, 03/15/15 (b)
    195,000       208,163  
UAL 2007-1, Pass Through Trust,
7.34%, 07/02/19 (b)
    252,260       218,205  
                 
              1,498,505  
                 
 
 
Auto Components 0.1%
American Axle & Manufacturing Holdings, Inc.,
9.25%, 01/15/17 (b)
    120,000       123,600  
TRW Automotive, Inc.,
8.88%, 12/01/17 (b)
    125,000       128,750  
                 
              252,350  
                 
 
 
Automobiles 0.4%
Navistar International Corp.,
8.25%, 11/01/21
    415,000       421,225  
Oshkosh Corp.,
8.50%, 03/01/20
    85,000       88,400  
Volvo Treasury AB,
5.95%, 04/01/15 (b)
    240,000       250,876  
                 
              760,501  
                 
 
 
Beverages 0.5%
Anheuser-Busch InBev Worldwide, Inc.
7.75%, 01/15/19 (b)
    650,000       788,945  
8.20%, 01/15/39 (b)
    95,000       124,980  
                 
              913,925  
                 
 
 
Building Products 0.2%
Building Materials Corp of America,
7.50%, 03/15/20 (b)
    60,000       58,950  
Corp. GEO SA de CV,
9.25%, 06/30/20 (b)
    225,000       224,030  
Goodman Global Group, Inc.,
0.00%, 12/15/14 (b)
    80,000       48,800  
USG Corp.,
9.75%, 08/01/14 (b)
    100,000       104,000  
                 
              435,780  
                 
 
 
Capital Markets 2.1%
Ameriprise Financial, Inc.,
7.30%, 06/28/19
    540,000       637,966  
Bank of New York Mellon Corp. (The)
4.50%, 04/01/13
    90,000       96,953  
5.13%, 08/27/13
    245,000       270,134  
Bear Stearns Cos. LLC (The),
5.55%, 01/22/17
    615,000       644,278  
Credit Suisse USA, Inc.,
5.13%, 08/15/15
    40,000       43,542  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Capital Markets (continued)
                 
E*Trade Financial Corp.,
12.50%, 11/30/17
  $ 250,250     $ 265,891  
Goldman Sachs Group, Inc. (The)
5.63%, 01/15/17
    240,000       242,666  
5.38%, 03/15/20
    240,000       237,148  
6.75%, 10/01/37
    505,000       495,073  
Morgan Stanley,
6.63%, 04/01/18
    465,000       487,382  
Nuveen Investments, Inc.,
5.00%, 09/15/10
    400,000       399,000  
TD Ameritrade Holding Corp.,
4.15%, 12/01/14
    285,000       295,766  
                 
              4,115,799  
                 
 
 
Chemicals 0.4%
CPG International I, Inc.,
7.50%, 07/01/12 (a)
    95,000       92,150  
Lubrizol Corp.,
8.88%, 02/01/19
    115,000       143,918  
MacDermid, Inc.,
9.50%, 04/15/17 (b)
    300,000       300,000  
Momentive Performance Materials, Inc., 9.75%, 12/01/14
    205,000       193,725  
                 
              729,793  
                 
 
 
Commercial Banks 1.6%
Ally Financial, Inc.,
8.30%, 02/12/15 (b)
    265,000       268,313  
Banco do Brasil SA,
6.00%, 01/22/20 (b)
    285,000       294,467  
Banco Santander Brasil SA,
4.50%, 04/06/15 (b)
    980,000       965,301  
Banco Votorantim SA,
7.38%, 01/21/20 (b)
    175,000       178,938  
CBQ Finance Ltd.,
7.50%, 11/18/19 (b)
    100,000       106,829  
Credit Suisse — New York,
6.00%, 02/15/18
    150,000       156,520  
Credit Suisse AG,
5.40%, 01/14/20
    320,000       318,164  
NB Capital Trust IV,
8.25%, 04/15/27
    170,000       165,750  
RSHB Capital SA for OJSC Russian Agricultural Bank,
7.13%, 01/14/14 (b)
    445,000       470,009  
Wachovia Corp.,
5.50%, 05/01/13
    140,000       151,947  
                 
              3,076,238  
                 
Commercial Services & Supplies 0.8%
Casella Waste Systems, Inc.
9.75%, 02/01/13
    275,000       275,000  
11.00%, 07/15/14 (b)
    70,000       75,600  
Clean Harbors, Inc.,
7.63%, 08/15/16
    225,000       231,187  
DynCorp International, Inc.,
10.38%, 07/01/17 (b)
    95,000       95,238  
Iron Mountain, Inc.,
7.75%, 01/15/15
    180,000       181,350  
Live Nation Entertainment, Inc.,
8.13%, 05/15/18 (b)
    30,000       29,100  
PharmaNet Development Group, Inc., 10.88%, 04/15/17 (b)
    115,000       112,125  
Ticketmaster Entertainment LLC/Ticketmaster Noteco, Inc.,
10.75%, 08/01/16
    210,000       226,275  
Waste Management, Inc.,
6.38%, 03/11/15
    75,000       86,008  
WCA Waste Corp.,
9.25%, 06/15/14
    245,000       244,694  
                 
              1,556,577  
                 
 
 
Computers & Peripherals 0.1%
Hewlett-Packard Co.,
5.50%, 03/01/18
    130,000       149,725  
                 
 
 
Construction Materials 0.1%
Cemex Finance Europe BV,
4.75%, 03/05/14
  EUR 150,000       151,175  
Cemex Finance LLC,
9.50%, 12/14/16 (b)
    115,000       110,975  
                 
              262,150  
                 
 
 
Consumer Finance 0.7%
American Express Credit Corp., Series C, 7.30%, 08/20/13
    130,000       147,186  
Discover Financial Services,
10.25%, 07/15/19
    460,000       547,467  
Ford Motor Credit Co. LLC,
7.00%, 04/15/15
    200,000       197,834  
International Lease Finance Corp.
5.75%, 06/15/11
    265,000       260,031  
6.63%, 11/15/13
    125,000       115,938  
Toyota Motor Credit Corp.,
3.20%, 06/17/15
    175,000       178,616  
                 
              1,447,072  
                 
 
 
Consumer Products 0.1%
Spectrum Brands Holdings, Inc.,
9.50%, 06/15/18 (b)
    150,000       154,687  
                 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Containers & Packaging 0.2%
Graphic Packaging International, Inc.,
9.50%, 06/15/17
  $ 110,000     $ 114,950  
Sealed Air Corp.,
7.88%, 06/15/17 (b)
    125,000       130,660  
Solo Cup Co.,
8.50%, 02/15/14
    165,000       148,088  
                 
              393,698  
                 
 
 
Diversified Financial Services 4.0%
AIG SunAmerica Global Financing VI,
6.30%, 05/10/11 (b)
    395,000       398,950  
Bank of America Corp.,
5.63%, 07/01/20
    380,000       383,018  
CDP Financial, Inc.
4.60%, 07/15/20
  CAD 330,000       319,406  
5.60%, 11/25/39 (b)
  $ 570,000       614,586  
CEDC Finance Corp. International, Inc.
8.88%, 12/01/16 (b)
  EUR 200,000       236,010  
9.13%, 12/01/16 (b)
    425,000       410,125  
Citigroup, Inc.
5.63%, 08/27/12
    160,000       164,882  
6.00%, 12/13/13
    290,000       304,243  
6.01%, 01/15/15
    470,000       492,975  
6.13%, 05/15/18
    205,000       213,955  
Farmers Exchange Capital,
7.05%, 07/15/28 (b)
    535,000       510,320  
General Electric Capital Corp.,
5.88%, 01/14/38
    50,000       49,030  
Grupo Papelero Scribe SA,
8.88%, 04/07/20 (b)
    370,000       319,588  
Icahn Enterprises LP/Icahn Enterprises Finance Corp.,
8.00%, 01/15/18 (b)
    150,000       145,500  
Independencia International Ltd.,
15.00%, 03/31/15 (b)
    285,000       239,431  
John Hancock Global Funding II,
7.90%, 07/02/10 (b)
    155,000       155,000  
JPMorgan Chase & Co.
1.16%, 02/26/13 (a)
    405,000       404,986  
3.40%, 06/24/15
    320,000       320,726  
LBI Escrow Corp.,
8.00%, 11/01/17 (b)
    100,000       103,000  
Marsico Parent Co. LLC,
10.63%, 01/15/16 (b)
    130,000       62,400  
Marsico Parent Holdco LLC,
12.50%, 07/15/16 (b)
    103,125       20,625  
Midwest Gaming Borrower LLC/Midwest Finance Corp.,
11.63%, 04/15/16 (b)
    270,000       265,275  
Noble Group Ltd.,
6.75%, 01/29/20 (b)
    475,000       460,750  
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.,
10.63%, 04/01/17
    125,000       130,313  
Reliance Intermediate Holdings LP,
9.50%, 12/15/19 (b)
    125,000       131,719  
Reynolds Group Issuer, Inc.,
8.50%, 05/15/18 (b)
    150,000       147,188  
TNK-BP Finance SA,
Series 144a,
7.50%, 07/18/16 (b)
    100,000       103,500  
TNK-BP Finance SA,
7.25%, 02/02/20 (b)
    200,000       199,760  
UPC Germany GmbH & Co.
KG/Unitymedia NRW GmbH,
8.13%, 12/01/17 (b)
    275,000       269,500  
White Nights Finance BV for Gazprom, 10.50%, 03/25/14
    175,000       203,438  
                 
              7,780,199  
                 
 
 
Diversified Telecommunication Services 4.2%
AT&T Corp.,
8.00%, 11/15/31
    295,000       379,728  
AT&T, Inc.,
4.85%, 02/15/14
    140,000       153,334  
Axtel SAB de CV,
9.00%, 09/22/19 (b)
    110,000       97,900  
Bakrie Telecom Pte Ltd.,
11.50%, 05/07/15 (b)
    880,000       853,600  
British Telecommunications PLC,
9.88%, 12/15/30
    110,000       134,246  
Cincinnati Bell, Inc.,
8.75%, 03/15/18
    145,000       131,588  
Clearwire Communications LLC/Clearwire Finance, Inc.,
12.00%, 12/01/15 (b)
    110,000       109,038  
Deutsche Telekom International Finance BV,
8.13%, 05/29/12
  EUR 160,000       217,951  
France Telecom SA
4.38%, 07/08/14
    265,000       285,768  
8.50%, 03/01/31
    40,000       55,044  
8.13%, 01/28/33
    90,000       158,101  
GCI, Inc.,
8.63%, 11/15/19 (b)
  $ 130,000       129,675  
Intelsat Luxembourg SA,
11.50%, 02/04/17
    140,000       139,650  
Level 3 Financing, Inc.,
10.00%, 02/01/18 (b)
    150,000       132,750  
Qtel International Finance Ltd.,
7.88%, 06/10/19 (b)
    255,000       294,861  
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Diversified Telecommunication Services (continued)
                 
Qwest Corp.
7.88%, 09/01/11
  $ 500,000     $ 520,000  
8.38%, 05/01/16
    175,000       191,187  
6.88%, 09/15/33
    150,000       137,625  
Sprint Capital Corp.
7.63%, 01/30/11
    225,000       228,937  
8.75%, 03/15/32
    515,000       491,825  
Sprint Nextel Corp.,
8.38%, 08/15/17
    185,000       185,000  
Telecom Italia Capital SA,
7.00%, 06/04/18
    360,000       383,459  
Telefonica Emisiones SAU
2.58%, 04/26/13
    240,000       238,349  
6.42%, 06/20/16
    360,000       394,883  
5.13%, 04/27/20
    225,000       225,516  
Telefonos de Mexico SAB de CV,
5.50%, 01/27/15
    400,000       435,273  
Telemar Norte Leste SA,
9.50%, 04/23/19 (b)
    125,000       149,688  
TELUS Corp.,
5.05%, 12/04/19
  CAD 65,000       61,940  
tw telecom holdings, inc.,
8.00%, 03/01/18 (b)
  $ 150,000       153,000  
Verizon Communications, Inc.
5.50%, 02/15/18
    100,000       109,731  
8.75%, 11/01/18
    375,000       487,490  
8.95%, 03/01/39
    145,000       205,404  
Wind Acquisition Finance SA,
12.00%, 12/01/15 (b)
    200,000       207,000  
Wind Acquisition Holdings Finance SA,
12.25%, 07/15/17 (b)
    115,000       104,650  
                 
              8,184,191  
                 
 
 
Electric Utilities 1.5%
AES Eastern Energy LP,
Series 99-A,
9.00%, 01/02/17
    68,010       70,051  
Commonwealth Edison Co.,
5.80%, 03/15/18
    165,000       186,433  
Detroit Edison Co. (The),
6.13%, 10/01/10
    200,000       202,500  
Dubai Electricity & Water Authority,
8.50%, 04/22/15 (b)
    110,000       112,067  
Elwood Energy LLC,
8.16%, 07/05/26
    110,479       104,403  
Enel Finance International SA
3.88%, 10/07/14 (b)
    280,000       282,284  
5.13%, 10/07/19 (b)
    300,000       301,336  
Energy Future Holdings Corp.,
10.88%, 11/01/17
    455,000       336,700  
Majapahit Holding BV,
7.75%, 01/20/20 (b)
    190,000       208,050  
Ohio Power Co.,
Series K,
6.00%, 06/01/16
    225,000       254,819  
Star Energy Geothermal Wayang Windu Ltd.,
11.50%, 02/12/15 (b)
    700,000       724,500  
Union Electric Co.,
6.70%, 02/01/19
    100,000       116,246  
                 
              2,899,389  
                 
 
 
Electrical Equipment 0.1%
Belden, Inc.,
9.25%, 06/15/19 (b)
    100,000       105,500  
                 
 
 
Electronic Equipment, Instruments & Components 0.3%
Jabil Circuit, Inc.,
7.75%, 07/15/16
    325,000       339,625  
NXP BV/NXP Funding LLC,
9.50%, 10/15/15
    200,000       167,500  
                 
              507,125  
                 
 
 
Energy Equipment & Services 1.7%
American Petroleum Tankers LLC/AP Tankers Co.,
10.25%, 05/01/15 (b)
    205,000       205,513  
Coffeyville Resources LLC/Coffeyville Finance, Inc.
9.00%, 04/01/15 (b)
    110,000       108,900  
10.88%, 04/01/17 (b)
    85,000       82,875  
Gaz Capital SA for Gazprom,
6.58%, 10/31/13
  GBP 290,000       452,245  
Helix Energy Solutions Group, Inc.,
9.50%, 01/15/16 (b)
  $ 115,000       105,800  
Hilcorp Energy I LP/Hilcorp Finance Co.,
8.00%, 02/15/20 (b)
    150,000       148,125  
Morgan Stanley Bank AG for OAO Gazprom,
9.63%, 03/01/13 (b)
    560,000       623,840  
Pemex Project Funding Master Trust,
6.63%, 06/15/38
    285,000       290,775  
Petrohawk Energy Corp.,
7.88%, 06/01/15
    130,000       130,325  
Ras Laffan Liquefied Natural Gas Co. Ltd. II,
5.30%, 09/30/20 (b)
    415,000       430,363  
Total Capital SA
3.00%, 06/24/15
    145,000       146,436  
4.45%, 06/24/20
    175,000       178,631  
 
 
 
2010 Semiannual Report 13

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Energy Equipment & Services (continued)
                 
Transocean, Inc.
6.00%, 03/15/18
  $ 190,000     $ 174,867  
6.80%, 03/15/38
    160,000       144,186  
Weatherford International Ltd.,
6.00%, 03/15/18
    140,000       144,043  
                 
              3,366,924  
                 
 
 
Food & Staples Retailing 1.0%
CVS Caremark Corp.
               
3.25%, 05/18/15
    305,000       309,806  
6.13%, 09/15/39
    300,000       320,681  
Delhaize America, Inc.,
9.00%, 04/15/31
    109,000       148,978  
Great Atlantic & Pacific Tea Co.,
11.38%, 08/01/15 (b)
    225,000       187,313  
Kroger Co. (The)
5.00%, 04/15/13
    70,000       74,924  
3.90%, 10/01/15
    130,000       137,134  
6.40%, 08/15/17
    100,000       116,400  
Rite Aid Corp.,
9.75%, 06/12/16
    140,000       146,300  
Wal-Mart Stores, Inc.
4.25%, 04/15/13
    230,000       247,425  
4.13%, 02/01/19
    210,000       219,302  
4.88%, 07/08/40
    125,000       123,093  
                 
              2,031,356  
                 
 
 
Food Products 0.8%
Bumble Bee Foods LLC,
7.75%, 12/15/15 (b)
    200,000       201,250  
ConAgra Foods, Inc.,
8.25%, 09/15/30
    100,000       128,770  
Corp. Pesquera Inca SAC,
9.00%, 02/10/17 (b)
    235,000       229,712  
FAGE Dairy Industry SA/FAGE USA Dairy Industry, Inc.,
9.88%, 02/01/20 (b)
    225,000       189,000  
JBS USA LLC/JBS USA Finance, Inc.,
11.63%, 05/01/14
    125,000       140,156  
Kraft Foods, Inc.
2.63%, 05/08/13
    225,000       229,265  
6.88%, 01/26/39
    95,000       110,196  
6.50%, 02/09/40
    285,000       318,724  
Michael Food, Inc.,
9.75%, 07/15/18 (b)
    35,000       35,963  
                 
              1,583,036  
                 
Gas Utilities 0.9%
CenterPoint Energy Resources Corp.,
6.25%, 02/01/37
    70,000       74,101  
Consolidated Natural Gas Co.,
Series C,
6.25%, 11/01/11
    155,000       164,324  
Dynegy Holdings, Inc.,
Series 144a,
7.50%, 06/01/15 (b)
    215,000       169,044  
El Paso Pipeline Partners Operating Co. LLC,
6.50%, 04/01/20
    395,000       403,430  
EQT Corp.,
6.50%, 04/01/18
    230,000       250,303  
Regency Energy Partners LP/Regency Energy Finance Corp.,
9.38%, 06/01/16 (b)
    195,000       206,700  
Rockies Express Pipeline LLC,
3.90%, 04/15/15 (b)
    265,000       256,113  
Texas Eastern Transmission LP,
7.00%, 07/15/32
    215,000       254,651  
                 
              1,778,666  
                 
 
 
Health Care Equipment & Supplies 0.3%
Baxter International, Inc.,
4.63%, 03/15/15
    35,000       38,566  
Boston Scientific Corp.
4.50%, 01/15/15
    355,000       348,729  
7.38%, 01/15/40
    90,000       91,248  
Covidien International Finance SA,
6.00%, 10/15/17
    100,000       116,046  
                 
              594,589  
                 
 
 
Health Care Providers & Services 1.7%
American Renal Holdings,
8.38%, 05/15/18 (b)
    105,000       103,950  
Biomet, Inc.
10.38%, 10/15/17
    80,000       86,000  
11.63%, 10/15/17
    70,000       75,775  
CRC Health Corp.,
10.75%, 02/01/16
    300,000       276,000  
DJO Finance LLC/DJO Finance Co., Inc.,
11.75%, 11/15/14
    225,000       229,500  
Express Scripts, Inc.,
6.25%, 06/15/14
    190,000       215,121  
HCA, Inc.
9.00%, 12/15/14
    115,000       111,263  
7.25%, 09/15/20
    300,000       301,500  
Health Net, Inc.,
6.38%, 06/01/17
    255,000       237,150  
 
 
 
14 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Health Care Providers & Services (continued)
                 
Healthsouth Corp.,
10.75%, 06/15/16
  $ 480,000     $ 518,400  
Humana, Inc.,
8.15%, 06/15/38
    195,000       211,909  
Medco Health Solutions, Inc.
6.13%, 03/15/13
    10,000       11,068  
7.25%, 08/15/13
    255,000       294,177  
7.13%, 03/15/18
    195,000       232,960  
OnCure Holdings, Inc.,
11.75%, 05/15/17 (b)
    175,000       164,063  
US Oncology Holdings, Inc. PIK,
6.64%, 03/15/12 (a)
    159,000       147,870  
US Oncology, Inc.,
10.75%, 08/15/14
    80,000       82,000  
                 
              3,298,706  
                 
 
 
Hotels, Restaurants & Leisure 1.6%
Carrols Corp.,
9.00%, 01/15/13
    200,000       199,000  
Denny’s Holdings, Inc.,
10.00%, 10/01/12
    125,000       125,313  
Equinox Holdings, Inc.,
9.50%, 02/01/16 (b)
    195,000       192,806  
Games Merger Corp.,
11.00%, 06/01/18 (b)
    125,000       125,938  
Harrah’s Operating Co., Inc.
5.63%, 06/01/15
    150,000       99,375  
11.25%, 06/01/17
    25,000       26,312  
Landry’s Restaurants, Inc.,
11.63%, 12/01/15
    125,000       129,375  
McDonald’s Corp.,
5.00%, 02/01/19
    35,000       38,994  
MCE Finance Ltd.,
10.25%, 05/15/18 (b)
    430,000       446,663  
MGM Resorts International,
8.38%, 02/01/11
    200,000       202,000  
NPC International, Inc.,
9.50%, 05/01/14
    200,000       200,000  
Pinnacle Entertainment, Inc.,
8.75%, 05/15/20 (b)
    125,000       115,781  
Pokagon Gaming Authority,
10.38%, 06/15/14 (b)
    225,000       232,875  
Speedway Motorsports, Inc.,
8.75%, 06/01/16
    110,000       115,500  
Starwood Hotels & Resorts Worldwide, Inc.,
7.15%, 12/01/19
    175,000       177,187  
Yonkers Racing Corp.,
11.38%, 07/15/16 (b)
    145,000       155,331  
Yum! Brands, Inc.
8.88%, 04/15/11
    295,000       311,654  
4.25%, 09/15/15
    135,000       143,243  
                 
              3,037,347  
                 
Household Durables 0.4%
Fortune Brands, Inc.,
3.00%, 06/01/12
    305,000       308,674  
K Hovnanian Enterprises, Inc.,
10.63%, 10/15/16
    160,000       160,000  
Libbey Glass, Inc.,
10.00%, 02/15/15 (b)
    100,000       103,500  
Meritage Homes Corp.,
6.25%, 03/15/15
    135,000       127,575  
                 
              699,749  
                 
 
 
Household Products 0.1%
Central Garden & Pet Co.,
8.25%, 03/01/18
    125,000       123,906  
Prestige Brands, Inc.,
8.25%, 04/01/18 (b)
    145,000       146,088  
                 
              269,994  
                 
 
 
Independent Power Producers & Energy Traders 0.2%
AES Corp. (The),
9.75%, 04/15/16 (b)
    250,000       268,750  
RRI Energy, Inc.,
7.63%, 06/15/14
    130,000       128,050  
                 
              396,800  
                 
 
 
Industrial Conglomerates 0.1%
Textron, Inc.,
6.20%, 03/15/15
    180,000       193,735  
                 
 
 
Information Technology Services 0.2%
First Data Corp.,
10.55%, 09/24/15
    300,000       219,750  
Stratus Technologies, Inc.,
12.00%, 03/29/15 (b)
    90,000       78,412  
SunGard Data Systems, Inc.,
10.63%, 05/15/15
    125,000       133,594  
                 
              431,756  
                 
 
 
Insurance 1.0%
ACE INA Holdings, Inc.,
5.60%, 05/15/15
    135,000       148,748  
Alliant Holdings I, Inc.,
11.00%, 05/01/15 (b)
    175,000       176,312  
Berkshire Hathaway Finance Corp.
4.00%, 04/15/12
    210,000       220,891  
5.40%, 05/15/18
    205,000       227,689  
Chubb Corp.,
5.75%, 05/15/18
    45,000       50,103  
HUB International Holdings, Inc.,
10.25%, 06/15/15 (b)
    280,000       256,900  
 
 
 
2010 Semiannual Report 15

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Insurance (continued)
                 
Lincoln National Corp.,
6.20%, 12/15/11
  $ 750,000     $ 790,834  
Marsh & McLennan Cos., Inc.,
5.15%, 09/15/10
    40,000       40,288  
                 
              1,911,765  
                 
 
 
Internet & Catalog Retail 0.4%
HSN, Inc.,
11.25%, 08/01/16
    175,000       196,000  
QVC, Inc.
7.50%, 10/01/19 (b)
    185,000       181,763  
7.38%, 10/15/20 (b)
    335,000       325,787  
                 
              703,550  
                 
 
 
Leisure Equipment & Products 0.3%
Easton-Bell Sports, Inc.,
9.75%, 12/01/16 (b)
    175,000       181,125  
Hasbro, Inc.
6.13%, 05/15/14
    145,000       154,352  
6.30%, 09/15/17
    80,000       83,129  
6.35%, 03/15/40
    200,000       203,751  
                 
              622,357  
                 
 
 
Machinery 0.6%
Case New Holland, Inc.
7.75%, 09/01/13
    125,000       127,812  
7.88%, 12/01/17 (b)
    210,000       211,575  
Cleaver-Brooks, Inc.,
12.25%, 05/01/16 (b)
    90,000       87,525  
Colt Defense LLC/Colt Finance Corp.,
8.75%, 11/15/17 (b)
    150,000       118,875  
Ingersoll-Rand Global Holding Co. Ltd.,
9.50%, 04/15/14
    310,000       384,086  
RBS Global, Inc./Rexnord LLC,
8.50%, 05/01/18 (b)
    175,000       169,750  
Timken Co.,
6.00%, 09/15/14
    45,000       49,275  
Trimas Corp.,
9.75%, 12/15/17 (b)
    100,000       101,250  
                 
              1,250,148  
                 
 
 
Marine 0.1%
Martin Midstream Partners & Finance/Martin Midstream Finance Corp.,
8.88%, 04/01/18 (b)
    135,000       133,650  
                 
 
 
Media 2.5%
CCH II LLC/CCH II Capital Corp.,
13.50%, 11/30/16
    75,000       87,375  
Cengage Learning Acquisitions, Inc.,
10.50%, 01/15/15 (b)
    160,000       148,800  
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
8.63%, 11/15/17 (b)
    130,000       129,513  
Clear Channel Worldwide Holdings, Inc.,
Series B, 9.25%, 12/15/17 (b)
    60,000       60,300  
Clear Channel Worldwide Holdings, Inc.,
Series A, 9.25%, 12/15/17 (b)
    35,000       34,825  
Columbus International, Inc.,
11.50%, 11/20/14 (b)
    250,000       266,268  
Comcast Corp.
5.70%, 05/15/18
    325,000       357,256  
6.40%, 03/01/40
    200,000       215,263  
DirecTV Holdings LLC/DirecTV Financing Co., Inc.,
4.75%, 10/01/14
    380,000       402,447  
Hughes Network Systems LLC/HNS Finance Corp.,
9.50%, 04/15/14
    130,000       131,625  
Idearc Litigation Trusts,
8.00%, 11/15/16 (e)
    825,000       6,188  
Insight Communications Co., Inc.,
9.38%, 07/15/18 (b)
    200,000       200,000  
Mediacom LLC/Mediacom Capital Corp.,
9.13%, 08/15/19
    95,000       91,675  
NBC Universal, Inc.,
3.65%, 04/30/15 (b)
    340,000       347,684  
Nielsen Finance Co. LLC/Nielsen Finance Co.,
0.00%, 08/01/16 (c)
    130,000       123,825  
Rainbow National Services LLC
8.75%, 09/01/12 (b)
    325,000       325,812  
10.38%, 09/01/14 (b)
    150,000       156,188  
Telesat Canada/Telesat LLC,
12.50%, 11/01/17
    195,000       218,400  
Time Warner Cable, Inc.,
6.75%, 07/01/18
    295,000       338,624  
Time Warner, Inc.,
5.88%, 11/15/16
    155,000       174,732  
Umbrella Acquisition, Inc. PIK,
9.75%, 03/15/15 (a) (b)
    100,000       83,250  
Univision Communications, Inc.,
12.00%, 07/01/14 (b)
    60,000       64,350  
Viacom, Inc.,
6.25%, 04/30/16
    325,000       368,631  
Visant Holding Corp.,
10.25%, 12/01/13 (c)
    105,000       107,231  
 
 
 
16 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Media (continued)
                 
WMG Holdings Corp.,
9.50%, 12/15/14 (c)
  $ 200,000     $ 199,000  
WPP Finance UK,
8.00%, 09/15/14
    215,000       252,079  
                 
              4,891,341  
                 
 
 
Metals & Mining 2.1%
AK Steel Corp.,
7.63%, 05/15/20
    125,000       121,250  
ALROSA Finance SA,
8.88%, 11/17/14 (b)
    350,000       371,000  
ArcelorMittal,
9.85%, 06/01/19
    140,000       174,950  
Corp. Nacional del Cobre de Chile,
7.50%, 01/15/19 (b)
    490,000       600,406  
Freeport-McMoRan Copper & Gold, Inc.,
8.38%, 04/01/17
    375,000       412,500  
Gerdau Holdings, Inc.,
7.00%, 01/20/20 (b)
    100,000       102,000  
Prime Dig Pte Ltd.,
11.75%, 11/03/14 (b)
    100,000       101,000  
Rio Tinto Finance USA Ltd.,
5.88%, 07/15/13
    405,000       443,739  
Ryerson, Inc.,
12.00%, 11/01/15
    125,000       127,812  
Southern Copper Corp.
6.38%, 07/27/15
    200,000       223,365  
7.50%, 07/27/35
    370,000       399,340  
Tube City IMS Corp.,
9.75%, 02/01/15
    40,000       38,700  
Vale Overseas Ltd.,
6.88%, 11/10/39
    650,000       679,054  
Vale SA,
4.38%, 03/24/18
  EUR 100,000       124,855  
Vedanta Resources PLC,
8.75%, 01/15/14 (b)
  $ 155,000       162,750  
                 
              4,082,721  
                 
 
 
Multiline Retail 0.1%
Neiman Marcus Group, Inc. (The),
10.38%, 10/15/15
    210,000       213,675  
                 
 
 
Oil, Gas & Consumable Fuels 3.1%
Berry Petroleum Co.,
10.25%, 06/01/14
    115,000       123,625  
Bumi Capital Pte Ltd.,
12.00%, 11/10/16 (b)
    820,000       832,300  
Cenovus Energy, Inc.,
4.50%, 09/15/14 (b)
    80,000       85,455  
CenterPoint Energy Resources Corp.,
Series B,
7.88%, 04/01/13
    45,000       51,564  
Consol Energy, Inc.
8.00%, 04/01/17 (b)
    105,000       108,413  
8.25%, 04/01/20 (b)
    75,000       78,187  
Denbury Resources, Inc.,
8.25%, 02/15/20
    119,000       124,355  
Devon Energy Corp.,
5.63%, 01/15/14
    500,000       555,016  
El Paso Corp.,
8.25%, 02/15/16
    85,000       89,038  
Enterprise Products Operating LLC
5.90%, 04/15/13
    80,000       86,274  
5.25%, 01/31/20
    140,000       144,133  
Gaz Capital SA,
6.21%, 11/22/16 (b)
    235,000       237,068  
General Maritime Corp.,
12.00%, 11/15/17 (b)
    90,000       91,800  
International Coal Group, Inc.,
9.13%, 04/01/18
    125,000       125,000  
Linn Energy LLC,
9.88%, 07/01/18
    210,000       222,600  
Linn Energy LLC/Linn Energy Finance Corp.,
8.63%, 04/15/20 (b)
    80,000       81,900  
Marathon Oil Corp.,
6.50%, 02/15/14
    95,000       106,967  
MarkWest Energy Partners LP/MarkWest Energy Finance Corp.,
8.75%, 04/15/18
    125,000       126,250  
OPTI Canada, Inc.
9.00%, 12/15/12 (b)
    120,000       121,200  
8.25%, 12/15/14
    245,000       213,150  
Petrobras International Finance Co.,
6.88%, 01/20/40
    50,000       50,409  
Petroleos Mexicanos,
6.00%, 03/05/20 (b)
    105,000       110,250  
Petroleum Co. of Trinidad & Tobago Ltd.,
9.75%, 08/14/19 (b)
    420,000       478,800  
Petronas Capital Ltd.,
5.25%, 08/12/19 (b)
    210,000       220,796  
Power Sector Assets & Liabilities Management Corp.,
7.39%, 12/02/24 (b)
    230,000       250,700  
Shell International Finance BV,
4.38%, 03/25/20
    530,000       547,877  
Williams Partners LP,
3.80%, 02/15/15 (b)
    210,000       211,363  
 
 
 
2010 Semiannual Report 17

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Oil, Gas & Consumable Fuels (continued)
                 
Williams Partners LP/Williams Partners Finance Corp.,
7.25%, 02/01/17
  $ 345,000     $ 391,650  
XTO Energy, Inc.,
6.50%, 12/15/18
    180,000       218,435  
                 
              6,084,575  
                 
 
 
Paper & Forest Products 0.6%
Boise Paper Holdings LLC/Boise Co-Issuer Co.,
8.00%, 04/01/20 (b)
    150,000       149,625  
International Paper Co.,
7.95%, 06/15/18
    245,000       291,695  
NewPage Corp.,
11.38%, 12/31/14
    175,000       158,813  
Norske Skogindustrier ASA,
6.13%, 10/15/15 (b)
    300,000       203,658  
PE Paper Escrow GmbH,
12.00%, 08/01/14 (b)
    400,000       439,500  
Pindo Deli Finance BV,
0.00%, 04/28/25 (a) (b)
    901,231       13,518  
Tjiwi Kimia Finance BV,
Series 144a,
0.00%, 04/28/27 (a) (b)
    473,111       7,097  
                 
              1,263,906  
                 
 
 
Pharmaceuticals 0.1%
Novasep Holding SAS,
9.75%, 12/15/16 (b)
    135,000       132,637  
                 
 
 
Real Estate Investment Trusts (REITs) 0.2%
Developers Diversified Realty Corp.,
4.63%, 08/01/10
    335,000       335,130  
                 
 
 
Real Estate Management & Development 0.2%
Country Garden Holdings Co.,
11.25%, 04/22/17 (b)
    220,000       207,900  
Realogy Corp.
10.50%, 04/15/14
    125,000       105,937  
11.00%, 04/15/14
    158,812       132,608  
                 
              446,445  
                 
 
 
Road & Rail 0.6%
Kansas City Southern de Mexico SA de CV, 12.50%, 04/01/16
    259,000       309,505  
Kansas City Southern Railway Co.
13.00%, 12/15/13
    32,000       38,400  
8.00%, 06/01/15
    400,000       412,000  
RSC Equipment Rental, Inc./RSC Holdings III LLC,
10.00%, 07/15/17 (b)
    105,000       112,613  
TGI International Ltd.,
9.50%, 10/03/17 (b)
    135,000       150,356  
Union Pacific Corp.,
7.88%, 01/15/19
    185,000       235,525  
                 
              1,258,399  
                 
 
 
Semiconductors & Semiconductor Equipment 0.2%
Freescale Semiconductor, Inc.,
9.25%, 04/15/18 (b)
    225,000       222,188  
Freescale Semiconductor, Inc. PIK,
9.13%, 12/15/14
    302,159       270,432  
                 
              492,620  
                 
 
 
Specialty Retail 0.4%
Hillman Group, Inc.,
10.88%, 06/01/18 (b)
    90,000       92,700  
Sally Holdings, Inc./Sally Capital, Inc.,
10.50%, 11/15/16
    160,000       171,200  
Staples, Inc.
7.75%, 04/01/11
    130,000       135,859  
9.75%, 01/15/14
    320,000       392,537  
                 
              792,296  
                 
 
 
Textiles, Apparel & Luxury Goods 0.1%
Hanesbrands, Inc.,
8.00%, 12/15/16
    80,000       81,100  
Quiksilver, Inc.,
6.88%, 04/15/15
    175,000       159,031  
                 
              240,131  
                 
 
 
Tobacco 0.6%
Altria Group, Inc.
9.25%, 08/06/19
    10,000       12,481  
10.20%, 02/06/39
    250,000       335,349  
Philip Morris International, Inc.
6.88%, 03/17/14
    200,000       231,391  
5.65%, 05/16/18
    575,000       629,006  
                 
              1,208,227  
                 
 
 
Transportation Infrastructure 0.1%
DP World Ltd.,
6.85%, 07/02/37 (b)
    170,000       135,233  
                 
 
 
Wireless Telecommunication Services 1.4%
Alltel Corp.
7.00%, 07/01/12
    115,000       127,042  
7.88%, 07/01/32
    190,000       239,633  
America Movil SAB de CV,
6.13%, 03/30/40 (b)
    425,000       443,798  
Cricket Communications, Inc., 7.75%, 05/15/16
    225,000       229,500  
Digicel Group Ltd.
9.13%, 01/15/15 (b)
    225,000       220,781  
10.50%, 04/15/18 (b)
    275,000       283,594  
 
 
 
18 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Wireless Telecommunication Services (continued)
                 
NII Capital Corp.,
10.00%, 08/15/16
  $ 950,000     $ 999,875  
Vodafone Group PLC,
5.63%, 02/27/17
    175,000       191,936  
                 
              2,736,159  
                 
         
Total Corporate Bonds
(cost $79,497,540)
    82,276,207  
         
                 
                 
Municipal Bonds 0.5%
                 
                 
Georgia 0.5%
Municipal Electric Authority of Georgia
Series 2010,
6.64%, 04/01/57
    675,000       653,697  
Series 2010,
7.06%, 04/01/57
    360,000       353,455  
                 
         
Total Municipal Bonds
(cost $1,039,508)
    1,007,152  
         
                 
                 
U.S. Government Mortgage Backed Agencies 8.5%
                 
Fannie Mae Pool
               
Pool# 736280
4.00%, 08/01/18
    852,043       901,018  
Pool# 50946
4.00%, 07/25/25
    1,495,000       1,552,931  
4.50%, 07/25/25
    1,000,000       1,054,844  
Pool# 251752
               
Pool# 252009
               
Pool# 323591
               
Pool# 540017
8.00%, 05/01/30
    2,323       2,690  
Pool# 564363
8.00%, 01/01/31
    939       1,088  
Pool# 564993
7.50%, 03/01/31
    13,857       15,795  
Pool# 606566
7.50%, 10/01/31
    6,947       7,923  
Pool# 642656
7.00%, 07/01/32
    44,910       50,781  
Pool# 555533
               
Pool# 741875
               
Pool# 886574
2.94%, 08/01/36 (a)
    518,182       537,694  
Pool# 968154
               
Pool# 257231
5.50%, 06/01/38
    2,882,079       3,097,803  
4.50%, 07/25/40
    7,730,000       8,011,418  
Fannie Mae TBA
5.50%, 07/25/40
    1,065,000       1,143,211  
Freddie Mac Gold Pool
               
Pool# C90381
7.50%, 11/01/20
    766       857  
Pool# C00712
6.50%, 02/01/29
    16,737       18,629  
Pool# C39060
8.00%, 06/01/30
    474       497  
Pool# C41531
8.00%, 08/01/30
    1,619       1,867  
Pool# C42327
8.00%, 09/01/30
    1,346       1,551  
Pool# C01104
8.00%, 12/01/30
    20,463       23,593  
Pool# C48997
8.00%, 03/01/31
    33,768       35,547  
Pool# C49587
8.00%, 03/01/31
    18,752       21,623  
Pool# C50477
8.00%, 04/01/31
    25,506       29,419  
Pool# C53381
8.00%, 06/01/31
    3,315       3,640  
Pool# C69951
6.50%, 08/01/32
    21,018       23,381  
Pool# G05087
               
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $16,254,264)
    16,537,800  
         
                 
                 
Sovereign Bonds 16.4%
                 
      Principal
Amount 		      Market
Value 		 
 
 
ARGENTINA 1.7%
Argentina Bonos,
0.39%, 08/03/12 (a)
    4,300,000       1,445,875  
Argentina Government International Bond
7.82%, 12/31/33 (a)
  EUR 690,613       472,929  
8.28%, 12/31/33
  $ 1,045,341       714,752  
City of Buenos Aires,
12.50%, 04/06/15 (b)
    600,000       607,500  
                 
              3,241,056  
                 
 
 
BRAZIL 1.8%
Brazil Notas do Tesouro Nacional
10.00%, 01/01/17
  BRL 1,455,000       728,335  
10.00%, 01/01/21
    2,685,000       1,279,280  
 
 
 
2010 Semiannual Report 19

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
BRAZIL (continued)
                 
Brazilian Government International Bond
4.88%, 01/22/21
  $ 1,480,000     $ 1,482,220  
5.63%, 01/07/41
    100,000       98,250  
                 
              3,588,085  
                 
 
 
BULGARIA 0.3%
Bulgaria Government International Bond,
8.25%, 01/15/15 (b)
    450,000       507,375  
                 
 
 
CANADA 0.8%
Canadian Government Bond
5.25%, 06/01/12
  CAD 330,000       332,495  
4.00%, 06/01/16
    570,000       577,496  
4.25%, 06/01/18
    410,000       421,951  
Province of Quebec Canada,
4.50%, 12/01/20
    180,000       175,002  
                 
              1,506,944  
                 
 
 
CAYMAN ISLANDS 0.3%
Cayman Islands Government Bond,
5.95%, 11/24/19 (b)
  $ 600,000       608,868  
                 
 
 
COLOMBIA 0.6%
Colombia Government International Bond
7.38%, 03/18/19
    235,000       274,950  
7.75%, 04/14/21
  COP 819,000,000       463,241  
6.13%, 01/18/41
  $ 460,000       465,750  
                 
              1,203,941  
                 
 
 
EGYPT 0.4%
Egypt Government International Bond,
6.88%, 04/30/40 (b)
    800,000       780,000  
                 
 
 
EL SALVADOR 0.1%
El Salvador Government International Bond,
7.65%, 06/15/35
    105,000       111,300  
                 
 
 
FRANCE 1.2%
France Government Bond OAT
4.00%, 10/25/38
  EUR 1,100,000       1,422,467  
4.00%, 04/25/60
    700,000       915,829  
                 
              2,338,296  
                 
 
 
GERMANY 1.4%
Bundesrepublik Deutschland
4.50%, 01/04/13
    1,000,000       1,336,820  
4.25%, 07/04/18
    600,000       836,906  
3.25%, 01/04/20
    450,000       583,679  
                 
              2,757,405  
                 
GREECE 0.0%†
Hellenic Republic Government International Bond,
2.38%, 03/18/11
  CHF 100,000       86,179  
                 
 
 
INDONESIA 0.2%
Indonesia Government International Bond,
7.75%, 01/17/38 (b)
    290,000       342,200  
                 
 
 
JAPAN 0.3%
Japan Government Ten Year Bond,
0.80%, 03/20/13
  JPY 50,000,000       575,199  
                 
 
 
LITHUANIA 0.2%
Lithuania Government International Bond
6.75%, 01/15/15 (b)
  $ 125,000       131,004  
7.38%, 02/11/20 (b)
    300,000       317,774  
                 
              448,778  
                 
 
 
MEXICO 0.8%
Mexican Bonos
7.25%, 12/15/16
  MXN 16,645,000       1,332,959  
8.50%, 11/18/38
    1,625,000       136,754  
United Mexican States,
6.05%, 01/11/40
  $ 60,000       63,300  
                 
              1,533,013  
                 
 
 
PERU 0.1%
Peru Government International Bond, 7.13%, 03/30/19
    155,000       183,288  
                 
 
 
POLAND 0.3%
Poland Government Bond,
5.50%, 10/25/19
  PLN 1,350,000       387,238  
Poland Government International Bond,
6.38%, 07/15/19
  $ 190,000       210,183  
                 
              597,421  
                 
 
 
QATAR 0.3%
Qatar Government International Bond,
6.40%, 01/20/40 (b)
    590,000       626,875  
                 
 
 
RUSSIA 0.2%
Russian Foreign Bond — Eurobond
3.63%, 04/29/15 (b)
    200,000       193,500  
7.50%, 03/31/30 (c)
    133,352       150,328  
                 
              343,828  
                 
 
 
 
20 Semiannual Report 2010

 

 
 
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
SENEGAL 0.1%
Senegal Government International Bond,
8.75%, 12/22/14
  $ 300,000     $ 291,000  
                 
 
 
SOUTH AFRICA 0.2%
South Africa Government Bond,
6.75%, 03/31/21
  ZAR 2,000,000       221,968  
South Africa Government International Bond,
5.50%, 03/09/20
  $ 235,000       242,931  
                 
              464,899  
                 
 
 
SOUTH KOREA 0.3%
Export-Import Bank of Korea,
5.13%, 06/29/20
    575,000       577,312  
 
 
SPAIN 0.2%
Spain Government Bond,
6.15%, 01/31/13
  EUR 330,000       432,333  
                 
 
 
SUPRANATIONAL 1.5%
Asian Development Bank,
6.00%, 01/20/15
  AUD 650,000       556,094  
Corp. Andina de Fomento,
8.13%, 06/04/19
  $ 430,000       528,328  
Eurasian Development Bank,
7.38%, 09/29/14 (b)
    235,000       247,925  
Inter-American Development Bank,
6.50%, 08/20/19
  AUD 870,000       771,610  
International Bank for Reconstruction & Development,
3.38%, 04/30/15
  NOK 1,900,000       295,028  
Nordic Investment Bank,
1.70%, 04/27/17
  JPY 50,000,000       596,479  
                 
              2,995,464  
                 
 
 
TURKEY 0.1%
Turkey Government International Bond,
6.75%, 05/30/40
  $ 220,000       220,550  
                 
 
 
UNITED KINGDOM 2.3%
Credit Suisse First Boston International for CJSC The EXIM of Ukraine,
7.65%, 09/07/11
    490,000       482,650  
United Kingdom Gilt
4.50%, 03/07/13
  GBP 175,000       284,249  
4.00%, 09/07/16
    900,000       1,457,106  
3.75%, 09/07/19
    690,000       1,066,074  
4.75%, 03/07/20
    350,000       582,759  
4.25%, 12/07/40
    465,000       702,468  
                 
              4,575,306  
                 
URUGUAY 0.1%
Uruguay Government International Bond,
6.88%, 09/28/25
    105,000       117,075  
                 
 
 
VENEZUELA 0.6%
Venezuela Government International Bond,
6.00%, 12/09/20
    2,080,000       1,097,200  
                 
         
Total Sovereign Bonds
(cost $31,779,750)
    32,151,190  
         
                 
                 
U.S. Government Sponsored & Agency Obligations 1.5%
                 
Fannie Mae
               
1.75%, 03/23/11
    675,000       681,578  
5.00%, 05/11/17
    1,050,000       1,197,951  
0.00%, 10/09/19
    1,300,000       803,686  
Freddie Mac
5.13%, 11/17/17
    265,000       305,308  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $2,779,483)
    2,988,523  
         
                 
                 
U.S. Treasury Bonds 1.4%
                 
U.S. Treasury Bond
               
4.38%, 11/15/39 (f)
    475,000       512,777  
4.38%, 05/15/40
    1,160,000       1,254,610  
4.50%, 08/15/39
    325,000       357,957  
4.63%, 02/15/40
    255,000       286,636  
                 
              2,411,980  
                 
U.S. Treasury Strip Bond,
0.00%, 08/15/19
    415,000       313,287  
                 
         
Total U.S. Treasury Bonds
(cost $2,585,472)
    2,725,267  
         
                 
                 
U.S. Treasury Notes 5.0%
                 
U.S. Treasury Note
               
0.63%, 06/30/12
    350,000       350,028  
0.75%, 05/31/12
    950,000       952,746  
1.88%, 06/30/15
    4,390,000       4,406,805  
2.13%, 05/31/15
    1,485,000       1,510,527  
3.50%, 05/15/20
    2,415,000       2,527,442  
                 
         
Total U.S. Treasury Notes
(cost $9,676,842)
    9,747,548  
         
 
 
 
2010 Semiannual Report 21

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi Sector Bond Fund (Continued)
 
                 
                 
                 
Yankee Dollars 0.1%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Energy Equipment & Services 0.0%†
Compton Petroleum Finance Corp.,
7.63%, 12/01/13
  $ 80,000     $ 64,000  
                 
 
 
Oil, Gas & Consumable Fuels 0.1%
Petro-Canada,
6.05%, 05/15/18
    45,000       50,671  
Suncor Energy, Inc.,
5.95%, 12/01/34
    105,000       106,981  
                 
              157,652  
 
 
Road & Rail 0.0%†
Canadian National Railway Co.,
5.55%, 05/15/18
    45,000       51,112  
                 
         
Total Yankee Dollars
(cost $247,758)
    272,764  
         
                 
                 
Mutual Fund 5.9%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 5.9%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (g)
    11,475,427       11,475,427  
                 
         
Total Mutual Fund
(cost $11,475,427)
    11,475,427  
         
         
Total Investments (cost $188,993,788) (h) — 99.6%
    194,700,779  
         
Other assets in excess of liabilities — 0.4%
    858,627  
         
         
NET ASSETS — 100.0%
  $ 195,559,406  
         
 
* Denotes a non-income producing security.
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $41,866,658 which represents 21.41% of net assets.
 
(c) Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at June 30, 2010.
 
(d) Fair Valued Security.
 
(e) Illiquid security.
 
(f) A security or a portion of a security was used to cover the margin requirement for futures contracts.
 
(g) Represents 7-day effective yield as of June 30, 2010.
 
(h) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
AG Stock Corporation
 
ASA Stock Corporation
 
BV Private Limited Liability Company
 
FHLMC Federal Home Loan Mortgage Corporation
 
GmbH Limited Liability Company
 
LLC Limited Liability Company
 
LP Limited Partnership
 
Ltd. Limited
 
OJSC Open Joint Stock Company
 
PLC Public Limited Company
 
PIK Paid In Kind
 
REMICS Real Estate Mortgage Investment Conduits
 
SA Stock Company
 
SA de CV Public Traded Company with Variable Capital
 
SAB de CV Public Traded Company
 
SAU Single Shareholder Corporation
 
TBA To Be Announced
 
Currency:
 
UK United Kingdom
 
AUD Australian Dollar
 
BRL Brazilian Real
 
CAD Canadian Dollar
 
CHF Swiss Franc
 
COP Colombian Peso
 
EUR Euro
 
GBP Great British Pound
 
JPY Japanese Yen
 
MXN Mexican Peso
 
NOK Norwegran Krone
 
PLN Poland New Zloty
 
ZAR South Africa Rand
 
 
 
22 Semiannual Report 2010

 

 
 
 
At June 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Short Contracts:
Australian Dollar
  JPMorgan Chase Bank   7/30/10     (220,000 )   $ (190,410 )   $ (184,569 )   $ 5,841  
Australian Dollar
  JPMorgan Chase Bank   7/30/10     (805,000 )     (696,727 )     (675,354 )     21,373  
Brazilian Real
  JPMorgan Chase Bank   7/02/10     (285,742 )     (155,000 )     (158,306 )     (3,306 )
Brazilian Real
  JPMorgan Chase Bank   7/02/10     (460,875 )     (250,000 )     (255,332 )     (5,332 )
Brazilian Real
  JPMorgan Chase Bank   7/02/10     (46,088 )     (25,000 )     (25,533 )     (533 )
British Pound
  JPMorgan Chase Bank   7/30/10     (420,113 )     (619,658 )     (627,691 )     (8,033 )
British Pound
  JPMorgan Chase Bank   7/30/10     (286,906 )     (423,181 )     (428,667 )     (5,486 )
British Pound
  JPMorgan Chase Bank   7/30/10     (800,000 )     (1,199,808 )     (1,195,280 )     4,528  
British Pound
  JPMorgan Chase Bank   7/30/10     (270,327 )     (406,780 )     (403,896 )     2,884  
British Pound
  JPMorgan Chase Bank   7/30/10     (195,236 )     (293,785 )     (291,702 )     2,083  
Canadian Dollar
  JPMorgan Chase Bank   7/30/10     (1,699,459 )     (1,657,977 )     (1,596,131 )     61,846  
Euro
  JPMorgan Chase Bank   7/30/10     (6,000,000 )     (7,426,620 )     (7,337,660 )     88,960  
Euro
  JPMorgan Chase Bank   7/30/10     (250,000 )     (309,442 )     (305,735 )     3,707  
Mexican Peso
  JPMorgan Chase Bank   7/30/10     (195,400 )     (15,345 )     (15,065 )     280  
Mexican Peso
  JPMorgan Chase Bank   7/30/10     (1,107,300 )     (86,960 )     (85,372 )     1,588  
Mexican Peso
  JPMorgan Chase Bank   7/30/10     (2,605,500 )     (204,618 )     (200,881 )     3,737  
                                         
Total Short Contracts
                  $ (13,961,311 )   $ (13,787,174 )   $ 174,137  
                                         
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Long Contracts:
Canadian Dollar
  JPMorgan Chase Bank   7/02/10     128,814     $ 122,565     $ 121,003     $ (1,562 )
Canadian Dollar
  JPMorgan Chase Bank   7/02/10     331,950       315,848       311,822       (4,026 )
Canadian Dollar
  JPMorgan Chase Bank   7/30/10     128,814       121,265       120,982       (283 )
Canadian Dollar
  JPMorgan Chase Bank   7/30/10     331,950       312,496       311,767       (729 )
Euro
  JPMorgan Chase Bank   7/30/10     1,500,000       1,852,669       1,834,415       (18,254 )
Japanese Yen
  JPMorgan Chase Bank   7/30/10     200,000,000       2,220,471       2,263,085       42,614  
Swiss Franc
  JPMorgan Chase Bank   7/30/10     819,475       750,000       760,616       10,616  
                                         
Total Long Contracts
                  $ 5,695,314     $ 5,723,690     $ 28,376  
                                         
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
 
                             
            Notional Value
 		  Unrealized
Number of
 		          Covered by
 		  Appreciation
Contracts   Long Contracts   Expiration   Contracts   (Depreciation)
 
2
 
Japan 10 Year Bond
    09/09/10     $ 3,103,475     $ 20,105  
100
 
U.S. Treasury 5 Year Note
    09/30/10       11,835,156       129,433  
                             
                $ 14,938,631     $ 149,538  
                             
                             
            Notional Value
 		   
Number of
 		          Covered by
 		  Unrealized
Contracts   Short Contracts   Expiration   Contracts   Appreciation
 
22
 
U.S. Treasury 10 Year Note
    09/21/10     $ 2,696,031     $ (53,844 )
10
 
U.S. Treasury 30 Year Bond
    09/21/10       1,275,000       (37,365 )
                             
                $ 3,971,031     $ (91,209 )
                             
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 23

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Multi
 		 
      Sector Bond
 		 
      Fund  
       
Assets:
         
Investments, at value (cost $188,993,788)
    $ 194,700,779  
Cash
      43,273  
Foreign currencies, at value (cost $4,000,163)
      3,965,760  
Interest and dividends receivable
      2,232,769  
Receivable for investments sold
      12,651,622  
Receivable for capital shares issued
      265,094  
Reclaims receivable
      10,232  
Unrealized appreciation on forward foreign currency contracts (Note 2)
      250,057  
Prepaid expenses and other assets
      10,720  
           
Total Assets
      214,130,306  
           
Liabilities:
         
Payable for investments purchased
      18,267,512  
Payable for capital shares redeemed
      41,863  
Payable for variation margin on futures contracts
      7,608  
Unrealized depreciation on forward foreign currency contracts (Note 2)
      47,544  
Accrued expenses and other payables:
         
Investment advisory fees
      111,561  
Fund administration fees
      10,042  
Administrative servicing fees
      24,424  
Accounting and transfer agent fees
      36,440  
Custodian fees
      1,065  
Compliance program costs (Note 3)
      864  
Printing fees
      20,996  
Other
      981  
           
Total Liabilities
      18,570,900  
           
Net Assets
    $ 195,559,406  
           
Represented by:
         
Capital
    $ 219,793,532  
Accumulated net investment loss
      (291,906 )
Accumulated net realized losses from investment, futures and foreign currency transactions
      (29,862,880 )
Net unrealized appreciation/(depreciation) from investments
      5,706,991  
Net unrealized appreciation/(depreciation) from futures (Note 2)
      58,329  
Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      202,513  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (47,173 )
           
Net Assets
    $ 195,559,406  
           
Net Assets:
         
Class I Shares
    $ 195,559,406  
           
Total
    $ 195,559,406  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      23,186,969  
           
Total
      23,186,969  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.43  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
24 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi Sector
 		 
      Bond Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 6,231,400  
Dividend income
      5,387  
           
Total Income
      6,236,787  
           
EXPENSES:
         
Investment advisory fees
      700,657  
Fund administration fees
      42,655  
Administrative servicing fees Class I Shares
      140,132  
Professional fees
      20,084  
Printing fees
      9,896  
Trustee fees
      3,291  
Custodian fees
      3,592  
Accounting and transfer agent fees
      32,466  
Compliance program costs (Note 3)
      356  
Other
      5,022  
           
Total expenses before earnings credit and expenses reimbursed
      958,151  
Earnings credit (Note 4)
      (307 )
Expenses reimbursed by adviser (Note 3)
      (22,917 )
           
Net Expenses
      934,927  
           
NET INVESTMENT INCOME
      5,301,860  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      1,008,740  
Net realized gains from futures transactions (Note 2)
      209,307  
Net realized gains from forward and foreign currency transactions (Note 2)
      493,891  
           
Net realized gains from investment, futures, forward currency and foreign currency transactions
      1,711,938  
           
Net change in unrealized appreciation/(depreciation) from investments
      1,469,413  
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      233,165  
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      140,986  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (52,062 )
           
Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies
      1,791,502  
           
Net realized/unrealized gains from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies and foreign currency transactions
      3,503,440  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 8,805,300  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 25

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi Sector Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 5,301,860       $ 10,925,622  
Net realized gains from investment, futures, forward currency and foreign currency transactions
      1,711,938         6,118,491  
Net change in unrealized appreciation from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies
      1,791,502         17,149,814  
                     
Change in net assets resulting from operations
      8,805,300         34,193,927  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (5,114,868 )       (15,555,800 )
                     
Change in net assets from shareholder distributions
      (5,114,868 )       (15,555,800 )
                     
Change in net assets from capital transactions
      11,827,993         18,033,522  
                     
Change in net assets
      15,518,425         36,671,649  
                     
                     
Net Assets:
                   
Beginning of period
      180,040,981         143,369,332  
                     
End of period
    $ 195,559,406       $ 180,040,981  
                     
Accumulated undistributed net investment loss at end of period
    $ (291,906 )     $ (478,898 )
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 25,527,879       $ 69,756,620  
Dividends reinvested
      5,114,868         15,555,800  
Cost of shares redeemed
      (18,814,754 )       (67,278,898 )
                     
Change in net assets from capital transactions
    $ 11,827,993       $ 18,033,522  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      3,038,845         8,746,175  
Reinvested
      610,507         1,952,033  
Redeemed
      (2,238,338 )       (8,513,221 )
                     
Total change in shares
      1,411,014         2,184,987  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
26 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi Sector Bond Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     of Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 8 .27       0 .24       0 .15       0 .39       (0 .23)       –          (0 .23)     $ 8 .43       4 .71%     $ 195,559,406         1 .00%       5 .67%       1 .03%       148 .16%    
Year Ended December 31, 2009 (d)
  $ 7 .32       0 .55       1 .17       1 .72       (0 .77)       –          (0 .77)     $ 8 .27       24 .38%     $ 180,040,981         1 .01%       6 .89%       1 .08%       256 .64%    
Year Ended December 31, 2008
  $ 9 .86       0 .50       (2 .17)       (1 .67)       (0 .65)       (0 .22)       (0 .87)     $ 7 .32       (17 .29%)     $ 143,369,332         0 .98%       5 .20%       1 .01%       85 .31%    
Year Ended December 31, 2007
  $ 9 .81       0 .46       (0 .02)       0 .44       (0 .39)       –          (0 .39)     $ 9 .86       4 .62%     $ 240,236,547         1 .01%       4 .65%       1 .01%(e)       101 .00%    
Year Ended December 31, 2006
  $ 9 .78       0 .43       0 .02       0 .45       (0 .40)       (0 .02)       (0 .42)     $ 9 .81       4 .84%     $ 241,027,210         1 .02%       4 .24%       1 .02%(e)       100 .56%    
Year Ended December 31, 2005
  $ 10 .00       0 .42       (0 .20)       0 .22       (0 .39)       (0 .05)       (0 .44)     $ 9 .78       2 .18%     $ 258,958,396         1 .03%       4 .26%       1 .03%(e)       157 .82%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(d)  Per share calculations were performed using average shares method.
(e)  There were no fee reductions during the period.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 27

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi Sector Bond Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
28 Semiannual Report 2010

 

 
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. when fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Asset-Backed Securities
  $ —     $ 8,900,692     $ —     $ 8,900,692      
Collateralized Mortgage Obligations
    —       15,438,378       14,711       15,453,089      
Commercial Mortgage Backed Securities
    —       10,888,974       —       10,888,974      
Common Stocks
    67,346       —       —       67,346      
Convertible Corporate Bonds
    —       208,800       —       208,800      
Corporate Bonds
    —       82,276,207       —       82,276,207      
Forward Currency Contracts
    —       250,057       —       250,057      
Futures Contracts
    149,538       —       —       149,538      
Municipal Bonds
    —       1,007,152       —       1,007,152      
Mutual Fund
    11,475,427       —       —       11,475,427      
Sovereign Bonds
    —       32,151,190       —       32,151,190      
U.S. Government Mortgage Backed Agencies
    —       16,537,800       —       16,537,800      
U.S. Government Sponsored & Agency Obligations
    —       2,988,523       —       2,988,523      
U.S. Treasury Bonds
    —       2,725,267       —       2,725,267      
U.S. Treasury Notes
    —       9,747,548       —       9,747,548      
Yankee Dollars
    —       272,764       —       272,764      
 
 
Total Assets
    11,692,311       183,393,352       14,711       195,100,374      
 
 
 
 
 
2010 Semiannual Report 29

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Liabilities:
                                   
Forward Currency Contracts
  $ —     $ (47,544 )   $ —     $ (47,544 )    
Futures Contracts
    (91,209 )     —       —       (91,209 )    
 
 
Total Liabilities
    (91,209 )     (47,544 )     —       (138,753 )    
 
 
Total
  $ 11,601,102     $ 183,345,808     $ 14,711     $ 194,961,621      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                 
        Collateralized
 		   
        Mortgage
 		   
        Obligations    
 
    Balance as of 12/31/09   $ 34,581      
 
 
    Accrued Accretion/(Amortization)     (1,747 )    
 
 
    Change in Unrealized Appreciation/(Depreciation)     (6,934 )    
 
 
    Net Purchases/(Sales)     (7,860 )    
 
 
    Transfers In/(Out) of Level 3     (3,329 )    
 
 
    Balance as of 6/30/10   $ 14,711      
 
 
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of
 
 
 
30 Semiannual Report 2010

 

 
 
Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
(d)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
(e)        Written Options Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may purchase or write put and call options on foreign currencies, securities or interest rates to gain exposure to, or to hedge against changes in, the value of foreign currencies, securities or interest rates. The Fund may also write put or call options in order to enhance income by reason of premiums paid by the purchasers of such options. A call option gives the purchaser the right (but not the obligation) to buy, and obligates the writer to sell (if the option is exercised by the purchase), the underlying position at a predetermined exercise price. A put option gives the purchaser the right (but not the obligation) to sell, and obligates the writer to buy (if the option is exercised by the purchaser), the underlying position at a predetermined exercise price. When the Fund purchases an option, it pays the writer a premium as consideration for the option. When the Fund writes an option, it receives a premium.
 
 
 
2010 Semiannual Report 31

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
When the Fund writes an option, an amount equal to the premium received by the Fund is recorded as a liability and is subsequently adjusted to the current fair value of the option written. If a call option the Fund has written is exercised, the premium is added to the proceeds from the sale of the underlying position in determining whether the Fund has realized a gain or loss. If a put option the Fund has written is exercised, the premium reduces the cost basis of the assets purchased by the Fund. Premiums received from writing options that expire unexercised are treated by the Fund on the expiration date as realized gains from investments. Options traded on an exchange are valued at the last quoted sale price, or in the absence of a last quoted sale price, the bid price provided by an independent pricing service approved by the Board of Trustees. Non-exchange traded options are valued using dealer supplied quotes.
 
When the Fund writes an option, it bears the market risk of an unfavorable change in the price of the security (or currency) underlying the written option. When the Fund buys an option, it bears the risk of loss of the premium if the Fund chooses not to exercise the option. There is minimal counterparty credit risk to the Fund with respect to exchange-traded options, because such options are issued by a clearing organization affiliated with the exchange on which the options are listed that, in effect, guarantees completion of every exchange-traded option transaction. Over-the-counter option transactions are contracts between the Fund and the counterparty with no clearing organization guarantee. Therefore, failure of the counterparty to fulfill its obligations under an over-the-counter option would cause the Fund to lose any premium paid as well as any expected benefit of the transaction.
 
Options, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) on options,” and in the Statement of Operations under “Net realized gains from option transactions” and “Net change in unrealized appreciation/(depreciation) from options written.” There were no written options outstanding at June 30, 2010.
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments.
 
             
    Statement of Assets & Liabilities Location   Fair Value
 
Assets:
           
Futures — Interest rate contracts*
  Net Assets — Unrealized appreciation from futures contracts   $ 149,538  
 
 
Forward foreign currency contracts
  Receivables — Unrealized appreciation from forward foreign currency contracts     250,257  
 
 
Total
      $ 399,795  
 
 
Liabilities:
           
Futures — Interest rate contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ (91,209 )
 
 
Forward foreign currency contracts
  Payables — Unrealized depreciation from forward foreign currency contracts     (47,544 )
 
 
Total
      $ (138,753 )
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
 
 
 
32 Semiannual Report 2010

 

 
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Interest rate contracts   $ 209,307      
 
 
    Forward foreign currency contracts     677,257      
 
 
    Total   $ 886,564      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Interest rate contracts   $ 233,165      
 
 
    Forward foreign currency contracts     140,986      
 
 
    Total   $ 374,151      
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(f)        Mortgage Dollar Rolls
 
The Fund may enter into mortgage dollar rolls, in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. Mortgage dollar rolls may be implemented in the “to be announced” (“TBA”) market and are referred to as TBAs on the Statement of Investments of the Fund. During the roll period, the Fund foregoes principal and interest paid on the mortgage-backed securities. Each mortgage dollar roll is treated as a purchase and sale transaction; therefore, any gain or loss is considered unrealized until the roll reaches completion. Mortgage dollar roll investments entail risks related to the potential inability of counterparties to complete the transaction, which may be heightened because of the delayed payment date. Income is generated as consideration for entering into mortgage dollar rolls and is included in interest income on the Statement of Operations.
 
(g)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(h)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 33

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(i)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(j)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Logan Circle Partners, LP. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $200 million     0.75%      
 
 
    $200 million and more     0.70%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $280,263 for the six months ended June 30, 2010.
 
 
 
34 Semiannual Report 2010

 

 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.85% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                         
Fiscal Year
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
$ —     $ —     $ 109,509     $ 22,917     $ 132,426      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund 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 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 $30 per customer per year.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
2010 Semiannual Report 35

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I of the Fund.
 
For the six months ended June 30, 2010, NFS received $140,132 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $356.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated
 
 
 
36 Semiannual Report 2010

 

 
 
within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $275,441,656 and sales of $273,287,793 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $72,271,213 and sales of $94,350,079 of U.S. Government securities.
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies.  Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk.  The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
2010 Semiannual Report 37

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 189,055,206     $ 8,851,301     $ (3,205,728)     $ 5,645,573      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
38 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 39

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi Sector Bond Fund
 
After noting that Logan Circle Partners, L.P. (“Logan Circle”) began serving as the Fund’s sub-adviser in February 2009, the Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Logan Circle, the Fund’s new sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that the Fund’s performance for Class I shares for each of the three- and five-year periods ended September 30, 2009 was in the fifth quintile of its Peer Group and below the performance of the Fund’s benchmark, which is a 60%/15%/15%/10% blend of the Citigroup U.S. Broad Investment-Grade Bond Index, the Citigroup U.S. High-Yield Market Index, the Citigroup World Government Bond Index (Unhedged), and the J.P. Morgan Emerging Markets Bond Index. The Trustees noted, however, that the Fund’s performance for Class I shares for the one-year period ended September 30, 2009 was in the first quintile of its Peer Group and outperformed its benchmark. The Trustees noted that the Fund has been under close review since the first quarter of 2008. The Trustees then noted that the Fund has performed favorably relative to its benchmark since Logan Circle began serving as the Fund’s sub-adviser in February 2009.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory for Class I shares were in the fourth and fifth quintiles of its Peer Group, respectively. The Trustees also noted that the Fund’s total expenses were in the third quintile and slightly higher than the median of its Peer Group. The Trustees noted that the Fund was one basis point higher than the median of its Peer Group. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreements
 
At the January 21, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved an interim sub-advisory agreement with Logan Circle in anticipation of the acquisition of Logan Circle by Fortress Investment Group LLC (the “Fortress Transaction”). In this regard, it was noted that the Fortress Transaction would result in a statutory assignment, and subsequent termination, of the Fund’s current sub-advisory agreement. The interim sub-advisory agreement permitted Logan Circle to
 
 
 
40 Semiannual Report 2010

 

 
 
continue to sub-advise the Fund after the completion of the Fortress Transaction on April 16, 2010 until such time as the Board could meet in person to approve a new sub-advisory agreement, in accordance with the 1940 Act. Subsequently, at the June 16, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved a new sub-advisory agreement with Logan Circle. At the June 16, 2010 meeting, the Trustees were provided with a detailed memorandum explaining the Fortress Transaction, and indicating that no changes to the portfolio management team or the team’s investment process or strategies were expected as a result of such transaction. In considering whether to approve the new sub-advisory agreement with Logan Circle, the Board also took into account the materials, including investment performance and expense data, which had been presented to the Board as part of its annual contract review process.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are substantially similar in all material respects as the terms of the sub-advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by Logan Circle were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
2010 Semiannual Report 41

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
42 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 43

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
44 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 45

 

 

 

NVIT Nationwide Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
22
   
Supplemental Information
       
24
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-NAT (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Nationwide Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Nationwide Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       923.20       3.81       0.80  
      Hypothetical b     1,000.00       1,020.83       4.01       0.80  
 
 
Class II Shares
    Actual       1,000.00       922.90       5.01       1.05  
      Hypothetical b     1,000.00       1,019.59       5.26       1.05  
 
 
Class III Shares
    Actual       1,000.00       923.50       3.82       0.80  
      Hypothetical b     1,000.00       1,020.83       4.01       0.80  
 
 
Class IV Shares
    Actual       1,000.00       924.30       3.82       0.80  
      Hypothetical b     1,000.00       1,020.83       4.01       0.80  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Nationwide Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .6%
Mutual Fund
    2 .4%
Repurchase Agreement
    0 .7%
Liabilities in excess of other assets
    (0 .7)%
         
      100 .0%
         
 
         
Top Industries †    
 
Oil, Gas & Consumable Fuels
    8 .6%
Software
    4 .6%
Food Products
    4 .1%
Communications Equipment
    4 .1%
Food & Staples Retailing
    4 .0%
Aerospace & Defense
    3 .9%
Specialty Retail
    3 .7%
Health Care Providers & Services
    3 .7%
Pharmaceuticals
    3 .6%
Insurance
    3 .5%
Other Industries *
    56 .2%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    2 .4%
Cisco Systems, Inc. 
    2 .2%
Hess Corp. 
    2 .1%
JPMorgan Chase & Co. 
    2 .1%
CVS Caremark Corp. 
    2 .0%
PepsiCo, Inc. 
    2 .0%
United Technologies Corp. 
    2 .0%
Exxon Mobil Corp. 
    2 .0%
Apache Corp. 
    1 .9%
Wells Fargo & Co. 
    1 .7%
Other Holdings *
    79 .6%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Nationwide Fund
 
                 
                 
Common Stocks 97.6%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 4.0%
Boeing Co. (The)
    85,400     $ 5,358,850  
Bombardier, Inc., Class B
    1,514,700       6,886,617  
ITT Corp.
    159,570       7,167,884  
United Technologies Corp.
    300,517       19,506,559  
                 
              38,919,910  
                 
 
 
Air Freight & Logistics 0.4%
FedEx Corp.
    54,900       3,849,039  
                 
 
 
Auto Components 0.9%
BorgWarner, Inc.*
    183,800       6,863,092  
Johnson Controls, Inc.
    60,925       1,637,055  
                 
              8,500,147  
                 
 
 
Automobiles 0.3%
Ford Motor Co.*
    248,751       2,507,410  
                 
 
 
Beverages 2.0%
PepsiCo, Inc.
    322,995       19,686,545  
                 
 
 
Biotechnology 1.7%
Amgen, Inc.*
    27,708       1,457,441  
Gilead Sciences, Inc.*
    432,400       14,822,672  
                 
              16,280,113  
                 
 
 
Capital Markets 2.3%
Charles Schwab Corp. (The)
    462,100       6,552,578  
Goldman Sachs Group, Inc. (The)
    25,180       3,305,379  
Raymond James Financial, Inc.
    117,000       2,888,730  
State Street Corp.
    284,700       9,628,554  
                 
              22,375,241  
                 
 
 
Chemicals 3.3%
Cytec Industries, Inc.
    73,600       2,943,264  
E.I. du Pont de Nemours & Co.
    68,400       2,365,956  
International Flavors & Fragrances, Inc.
    81,200       3,444,504  
Monsanto Co.
    185,000       8,550,700  
Praxair, Inc.
    158,300       12,029,217  
Sherwin-Williams Co. (The)
    40,000       2,767,600  
                 
              32,101,241  
                 
 
 
Commercial Banks 3.2%
PNC Financial Services Group, Inc.
    75,300       4,254,450  
Royal Bank of Canada
    178,600       8,505,960  
SunTrust Banks, Inc.
    84,200       1,961,860  
Wells Fargo & Co.
    666,400       17,059,840  
                 
              31,782,110  
                 
 
 
Communications Equipment 4.2%
Cisco Systems, Inc.*
    1,012,463       21,575,587  
JDS Uniphase Corp.*
    89,135       877,088  
Motorola, Inc.*
    629,204       4,102,410  
QUALCOMM, Inc.
    431,200       14,160,608  
                 
              40,715,693  
                 
 
 
Computers & Peripherals 3.1%
Apple, Inc.*
    29,517       7,424,411  
EMC Corp.*
    677,200       12,392,760  
Hewlett-Packard Co.
    188,021       8,137,549  
NCR Corp.*
    177,556       2,151,979  
                 
              30,106,699  
                 
 
 
Consumer Finance 1.6%
American Express Co.
    109,100       4,331,270  
Capital One Financial Corp.
    286,464       11,544,499  
                 
              15,875,769  
                 
 
 
Diversified Financial Services 3.1%
Bank of America Corp.
    537,708       7,726,864  
Citigroup, Inc.*
    409,300       1,538,968  
JPMorgan Chase & Co.
    573,752       21,005,061  
                 
              30,270,893  
                 
 
 
Diversified Telecommunication Services 1.6%
AT&T, Inc.
    205,423       4,969,183  
TELUS Corp.
    165,917       6,260,754  
Verizon Communications, Inc.
    145,900       4,088,118  
                 
              15,318,055  
                 
 
 
Electric Utilities 0.4%
Northeast Utilities
    141,200       3,597,776  
                 
 
 
Electrical Equipment 1.2%
Emerson Electric Co.
    267,500       11,687,075  
                 
 
 
Electronic Equipment, Instruments & Components 0.4%
Avnet, Inc.*
    99,000       2,386,890  
Molex, Inc.
    81,500       1,486,560  
                 
              3,873,450  
                 
 
 
Energy Equipment & Services 2.5%
FMC Technologies, Inc.*
    65,800       3,465,028  
Rowan Cos., Inc.*
    86,900       1,906,586  
Schlumberger Ltd.
    207,800       11,499,652  
Tidewater, Inc.
    197,400       7,643,328  
                 
              24,514,594  
                 
 
 
Food & Staples Retailing 4.0%
Costco Wholesale Corp.
    68,300       3,744,889  
CVS Caremark Corp.
    687,120       20,146,358  
Kroger Co. (The)
    169,700       3,341,393  
Sysco Corp.
    192,300       5,494,011  
Wal-Mart Stores, Inc.
    134,023       6,442,486  
                 
              39,169,137  
                 
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Nationwide Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Food Products 4.2%
Archer-Daniels-Midland Co.
    126,500     $ 3,266,230  
Del Monte Foods Co.
    128,400       1,847,676  
Hormel Foods Corp.
    179,000       7,245,920  
Kellogg Co.
    200,100       10,065,030  
Kraft Foods, Inc., Class A
    554,700       15,531,600  
Tyson Foods, Inc., Class A
    179,300       2,938,727  
                 
              40,895,183  
                 
 
 
Gas Utilities 0.8%
Atmos Energy Corp.
    156,398       4,229,002  
UGI Corp.
    128,900       3,279,216  
                 
              7,508,218  
                 
 
 
Health Care Equipment & Supplies 2.7%
Baxter International, Inc.
    352,200       14,313,408  
St. Jude Medical, Inc.*
    329,068       11,876,064  
                 
              26,189,472  
                 
 
 
Health Care Providers & Services 3.7%
Aetna, Inc.
    327,761       8,646,335  
Cardinal Health, Inc.
    147,400       4,954,114  
McKesson Corp.
    71,426       4,796,970  
Medco Health Solutions, Inc.*
    65,500       3,607,740  
Quest Diagnostics, Inc.
    206,220       10,263,570  
UnitedHealth Group, Inc.
    156,600       4,447,440  
                 
              36,716,169  
                 
 
 
Hotels, Restaurants & Leisure 0.5%
Starwood Hotels & Resorts Worldwide, Inc.
    126,200       5,228,466  
                 
 
 
Household Durables 0.4%
Stanley Black & Decker, Inc.
    51,242       2,588,746  
Whirlpool Corp.
    17,700       1,554,414  
                 
              4,143,160  
                 
 
 
Household Products 1.0%
Procter & Gamble Co. (The)
    161,190       9,668,176  
                 
 
 
Industrial Conglomerates 1.9%
3M Co.
    133,900       10,576,761  
General Electric Co.
    540,746       7,797,557  
                 
              18,374,318  
                 
 
 
Information Technology Services 2.9%
Alliance Data Systems Corp.* (a)
    130,800       7,785,216  
Cognizant Technology Solutions Corp., Class A *
    192,140       9,618,528  
International Business Machines Corp.
    88,189       10,889,578  
                 
              28,293,322  
                 
Insurance 3.5%
Aflac, Inc.
    136,200       5,811,654  
MetLife, Inc.
    305,990       11,554,182  
Old Republic International Corp.
    345,355       4,189,156  
PartnerRe Ltd.
    31,661       2,220,703  
Progressive Corp. (The)
    385,735       7,220,959  
Transatlantic Holdings, Inc.
    70,976       3,404,009  
                 
              34,400,663  
                 
 
 
Internet & Catalog Retail 0.3%
Amazon.com, Inc.*
    30,200       3,299,652  
                 
 
 
Internet Software & Services 1.5%
Google, Inc., Class A*
    8,266       3,677,957  
Yahoo!, Inc.*
    786,400       10,875,912  
                 
              14,553,869  
                 
 
 
Life Sciences Tools & Services 0.4%
Mettler-Toledo International, Inc.*
    39,000       4,353,570  
                 
 
 
Machinery 3.4%
Caterpillar, Inc.
    84,200       5,057,894  
Cummins, Inc.
    52,600       3,425,838  
Deere & Co.
    246,049       13,700,008  
Eaton Corp.
    26,294       1,720,679  
PACCAR, Inc.
    176,100       7,021,107  
Trinity Industries, Inc.
    146,933       2,603,653  
                 
              33,529,179  
                 
 
 
Media 1.6%
Cablevision Systems Corp., Class A
    134,192       3,221,950  
Comcast Corp., Class A
    329,100       5,716,467  
Walt Disney Co. (The)
    217,257       6,843,595  
                 
              15,782,012  
                 
 
 
Multiline Retail 0.2%
J.C. Penney Co., Inc.
    98,400       2,113,632  
                 
 
 
Multi-Utilities 0.2%
Integrys Energy Group, Inc.
    51,800       2,265,732  
                 
 
 
Office Electronics 0.2%
Xerox Corp.
    301,509       2,424,132  
                 
 
 
Oil, Gas & Consumable Fuels 8.7%
Apache Corp.
    226,500       19,069,035  
Chevron Corp.
    139,086       9,438,376  
EOG Resources, Inc.
    115,500       11,361,735  
Exxon Mobil Corp.
    338,043       19,292,114  
Hess Corp.
    417,270       21,005,372  
Murphy Oil Corp.
    101,309       5,019,861  
                 
              85,186,493  
                 
 
 
Paper & Forest Products 0.3%
MeadWestvaco Corp.
    119,500       2,652,900  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Pharmaceuticals 3.6%
Bristol-Myers Squibb Co.
    159,900     $ 3,987,906  
Eli Lilly & Co.
    276,801       9,272,834  
Johnson & Johnson
    275,240       16,255,674  
Pfizer, Inc.
    425,609       6,069,184  
                 
              35,585,598  
                 
 
 
Real Estate Investment Trusts (REITs) 0.3%
Plum Creek Timber Co., Inc.
    76,000       2,624,280  
                 
 
 
Road & Rail 1.5%
Canadian National Railway Co.
    250,700       14,385,166  
                 
 
 
Semiconductors & Semiconductor Equipment 3.3%
Advanced Micro Devices, Inc.*
    305,100       2,233,332  
Intel Corp.
    874,638       17,011,709  
Marvell Technology Group Ltd.*
    651,800       10,272,368  
Texas Instruments, Inc.
    131,200       3,054,336  
                 
              32,571,745  
                 
 
 
Software 4.7%
Cadence Design Systems, Inc.*
    331,313       1,918,302  
Citrix Systems, Inc.*
    52,600       2,221,298  
McAfee, Inc.*
    328,300       10,085,376  
Microsoft Corp.
    276,622       6,365,072  
Oracle Corp.
    692,800       14,867,488  
Solera Holdings, Inc.
    278,600       10,085,320  
                 
              45,542,856  
                 
 
 
Specialty Retail 3.8%
Best Buy Co., Inc.
    72,700       2,461,622  
Home Depot, Inc.
    192,257       5,396,654  
Lowe’s Cos., Inc.
    158,300       3,232,486  
Staples, Inc.
    572,940       10,914,507  
TJX Cos., Inc.
    251,040       10,531,128  
Urban Outfitters, Inc.*
    123,500       4,247,165  
                 
              36,783,562  
                 
 
 
Tobacco 1.5%
Philip Morris International, Inc.
    331,970       15,217,505  
                 
 
 
Wireless Telecommunication Services 0.3%
Telephone & Data Systems, Inc.
    86,900       2,640,891  
                 
         
Total Common Stocks (cost $913,920,582)
    954,060,818  
         
                 
                 
Mutual Fund 2.4%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 2.4%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    23,316,691     $ 23,316,691  
                 
         
Total Mutual Fund (cost $23,316,691)
    23,316,691  
         
                 
                 
Repurchase Agreement 0.7%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10, repurchase price $6,965,471, collateralized by U.S. Government Agency Securities 4.00% - 8.50%, maturing 03/01/15 - 06/01/40; total market value of $7,105,027. (c)
  $ 6,965,468     $ 6,965,468  
                 
         
Total Repurchase Agreement (cost $6,965,468)
    6,965,468  
         
         
Total Investments (Cost $944,202,741) (d) — 100.7%
    984,342,977  
         
Liabilities in excess of other assets — (0.7%)
    (6,552,178 )
         
         
NET ASSETS — 100.0%
  $ 977,790,799  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $6,796,470.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $6,965,468.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
Ltd. Limited
 
REIT Real Estate Investment Trust
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Nationwide Fund  
       
Assets:
         
Investments, at value* (cost $937,237,273)
    $ 977,377,509  
Repurchase agreement, at value and cost
      6,965,468  
           
Total Investments
      984,342,977  
           
Dividends receivable
      1,092,779  
Security lending income receivable
      3,123  
Receivable for investments sold
      404,470  
Receivable for capital shares issued
      36,830  
Prepaid expenses and other assets
      10,431  
           
Total Assets
      985,890,610  
           
Liabilities:
         
Payable for capital shares redeemed
      278,572  
Cash overdraft (Note 2)
      2,901  
Payable upon return of securities loaned (Note 2)
      6,965,468  
Accrued expenses and other payables:
         
Investment advisory fees
      493,510  
Fund administration fees
      29,852  
Distribution fees
      52,387  
Administrative servicing fees
      161,470  
Accounting and transfer agent fees
      2,148  
Trustee fees
      389  
Custodian fees
      3,030  
Compliance program costs (Note 3)
      5,619  
Professional fees
      37,601  
Printing fees
      52,551  
Other
      14,313  
           
Total Liabilities
      8,099,811  
           
Net Assets
    $ 977,790,799  
           
Represented by:
         
Capital
    $ 1,601,113,945  
Accumulated undistributed net investment income
      1,035,961  
Accumulated net realized losses from investment and foreign currency transactions
      (664,498,329 )
Net unrealized appreciation/(depreciation) from investments
      40,140,236  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (1,014 )
           
Net Assets
    $ 977,790,799  
           
Net Assets:
         
Class I Shares
    $ 651,253,851  
Class II Shares
      240,893,710  
Class III Shares
      293,866  
Class IV Shares
      85,349,372  
           
Total
    $ 977,790,799  
           
*  Includes value of securities on loan of $6,796,470 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
8 Semiannual Report 2010

 

 
 
           
           
      NVIT
 		 
      Nationwide Fund  
       
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      87,296,702  
Class II Shares
      32,430,160  
Class III Shares
      39,254  
Class IV Shares
      11,443,540  
           
Total
      131,209,656  
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.46  
Class II Shares
    $ 7.43  
Class III Shares
    $ 7.49  
Class IV Shares
    $ 7.46  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
    Nationwide Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 8,960,888  
Income from securities lending (Note 2)
      15,184  
Foreign tax withholding
      (76,840 )
           
Total Income
      8,899,232  
           
EXPENSES:
         
Investment advisory fees
      3,148,796  
Fund administration fees
      195,721  
Distribution fees Class II Shares
      338,799  
Administrative servicing fees Class I Shares
      541,019  
Administrative servicing fees Class II Shares
      203,281  
Administrative servicing fees Class III Shares
      259  
Administrative servicing fees Class IV Shares
      71,812  
Professional fees
      59,590  
Printing fees
      13,238  
Trustee fees
      19,988  
Custodian fees
      38,721  
Accounting and transfer agent fees
      1,998  
Compliance program costs (Note 3)
      2,414  
Other
      27,665  
           
Total expenses before earnings credits
      4,663,301  
Earnings credit (Note 5)
      (45 )
           
Net Expenses
      4,663,256  
           
NET INVESTMENT INCOME
      4,235,976  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      37,102,751  
Net realized gains from foreign currency transactions (Note 2)
      49,159  
           
Net realized gains from investment and foreign currency transactions
      37,151,910  
           
Net change in unrealized appreciation/(depreciation) from investments
      (119,200,874 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (1,654 )
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (119,202,528 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (82,050,618 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (77,814,642 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
 
                     
      NVIT Nationwide Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 4,235,976       $ 12,131,775  
Net realized gains/(losses) from investment and foreign currency transactions
      37,151,910         (110,307,455 )
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (119,202,528 )       334,680,367  
                     
Change in net assets resulting from operations
      (77,814,642 )       236,504,687  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (2,651,224 )       (8,723,597 )
Class II
      (650,989 )       (3,272,582 )
Class III
      (1,432 )       (4,756 )
Class IV
      (350,091 )       (1,200,447 )
                     
Change in net assets from shareholder distributions
      (3,653,736 )       (13,201,382 )
                     
Change in net assets from capital transactions
      (53,942,039 )       (123,288,111 )
                     
Change in net assets
      (135,410,417 )       100,015,194  
                     
                     
Net Assets:
                   
Beginning of period
      1,113,201,216         1,013,186,022  
                     
End of period
    $ 977,790,799       $ 1,113,201,216  
                     
Accumulated undistributed net investment income at end of period
    $ 1,035,961       $ 453,721  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 3,040,073       $ 8,074,179  
Proceeds from shares issued from merger (Note 9)
      11,589,861         –  
Dividends reinvested
      2,651,224         8,723,597  
Cost of shares redeemed
      (41,004,490 )       (74,293,561 )
                     
Total Class I
      (23,723,332 )       (57,495,785 )
                     
Class II Shares
                   
Proceeds from shares issued
      133,962         40,759,078  
Dividends reinvested
      650,989         3,272,582  
Cost of shares redeemed
      (25,164,393 )       (99,842,709 )
                     
Total Class II
      (24,379,442 )       (55,811,049 )
                     
Class III Shares
                   
Proceeds from shares issued
      187,188         125,990  
Dividends reinvested
      1,432         4,756  
Cost of shares redeemed
      (195,904 )       (314,566 )
                     
Total Class III
      (7,284 )       (183,820 )
                     
Class IV Shares
                   
Proceeds from shares issued
      1,226,037         4,811,550  
Dividends reinvested
      350,091         1,200,447  
Cost of shares redeemed
      (7,408,109 )       (15,809,454 )
                     
Total Class IV
      (5,831,981 )       (9,797,457 )
                     
Change in net assets from capital transactions
    $ (53,942,039 )     $ (123,288,111 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Nationwide Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      369,412         1,196,080  
Issued in merger (Note 9)
      1,339,230         –  
Reinvested
      320,601         1,276,922  
Redeemed
      (4,772,718 )       (11,060,246 )
                     
Total Class I Shares
      (2,743,475 )       (8,587,244 )
                     
Class II Shares
                   
Issued
      15,862         6,512,991  
Reinvested
      78,977         492,997  
Redeemed
      (2,950,860 )       (15,009,992 )
                     
Total Class II Shares
      (2,856,021 )       (8,004,004 )
                     
Class III Shares
                   
Issued
      22,596         16,302  
Reinvested
      172         703  
Redeemed
      (22,954 )       (43,914 )
                     
Total Class III Shares
      (186 )       (26,909 )
                     
Class IV Shares
                   
Issued
      147,570         673,307  
Reinvested
      42,346         176,005  
Redeemed
      (867,525 )       (2,236,578 )
                     
Total Class IV Shares
      (677,609 )       (1,387,266 )
                     
Total change in shares
      (6,277,291 )       (18,005,423 )
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Nationwide Fund
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .11       0 .03       (0 .65)       (0 .62)       (0 .03)       –          (0 .03)       –        $ 7 .46       (7 .68%)     $ 651,253,851         0 .80%       0 .84%       0 .80%       23 .44%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .52       0 .09       1 .59       1 .68       (0 .09)       –          (0 .09)       –        $ 8 .11       26 .10%     $ 729,866,520         0 .81%       1 .24%       0 .81%(g)       85 .37%    
Year Ended December 31, 2008
  $ 13 .59       0 .16       (5 .22)       (5 .06)       (0 .15)       (1 .86)       (2 .01)       –        $ 6 .52       (41 .55%)     $ 643,454,394         0 .82%       1 .50%       0 .82%(g)       373 .58%    
Year Ended December 31, 2007
  $ 13 .32       0 .16       0 .93       1 .09       (0 .15)       (0 .67)       (0 .82)       –        $ 13 .59       8 .18%     $ 1,273,466,977         0 .79%       1 .08%       0 .79%(g)       377 .04%    
Year Ended December 31, 2006
  $ 11 .85       0 .14       1 .47       1 .61       (0 .14)       –          (0 .14)       –        $ 13 .32       13 .63%     $ 1,484,346,294         0 .82%       1 .08%       0 .82%(g)       222 .16%    
Year Ended December 31, 2005
  $ 11 .13       0 .10       0 .72       0 .82       (0 .10)       –          (0 .10)       –        $ 11 .85       7 .44%     $ 1,506,357,815         0 .83%       0 .88%       0 .83%(g)       179 .84%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .07       0 .02       (0 .64)       (0 .62)       (0 .02)       –          (0 .02)       –        $ 7 .43       (7 .71%)     $ 240,893,710         1 .05%       0 .59%       1 .05%       23 .44%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .50       0 .07       1 .58       1 .65       (0 .08)       –          (0 .08)       –        $ 8 .07       25 .56%     $ 284,786,913         1 .07%       1 .02%       1 .07%(g)       85 .37%    
Year Ended December 31, 2008
  $ 13 .54       0 .14       (5 .19)       (5 .05)       (0 .13)       (1 .86)       (1 .99)       –        $ 6 .50       (41 .61%)     $ 281,190,716         1 .05%       1 .30%       1 .05%(g)       373 .58%    
Year Ended December 31, 2007
  $ 13 .28       0 .11       0 .94       1 .05       (0 .12)       (0 .67)       (0 .79)       –        $ 13 .54       7 .89%     $ 406,704,896         1 .07%       0 .83%       1 .08%(g)       377 .04%    
Year Ended December 31, 2006
  $ 11 .82       0 .10       1 .48       1 .58       (0 .12)       –          (0 .12)       –        $ 13 .28       13 .40%     $ 187,747,190         1 .06%       0 .88%       1 .06%(g)       222 .16%    
Year Ended December 31, 2005
  $ 11 .12       0 .07       0 .71       0 .78       (0 .08)       –          (0 .08)       –        $ 11 .82       7 .04%     $ 24,550,224         1 .08%       0 .66%       1 .08%(g)       179 .84%    
                                                                                                                                                         
Class III Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .14       0 .03       (0 .65)       (0 .62)       (0 .03)       –          (0 .03)       –        $ 7 .49       (7 .65%)     $ 293,866         0 .80%       0 .82%       0 .80%       23 .44%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .54       0 .09       1 .60       1 .69       (0 .09)       –          (0 .09)       –        $ 8 .14       26 .16%     $ 320,853         0 .82%       1 .29%       0 .82%(g)       85 .37%    
Year Ended December 31, 2008
  $ 13 .62       0 .18       (5 .24)       (5 .06)       (0 .16)       (1 .86)       (2 .02)       –        $ 6 .54       (41 .54%)     $ 434,001         0 .79%       1 .47%       0 .79%(g)       373 .58%    
Year Ended December 31, 2007
  $ 13 .34       0 .14       0 .95       1 .09       (0 .14)       (0 .67)       (0 .81)       –        $ 13 .62       8 .22%     $ 1,339,269         0 .81%       1 .04%       0 .81%(g)       377 .04%    
Year Ended December 31, 2006
  $ 11 .86       0 .13       1 .49       1 .62       (0 .14)       –          (0 .14)       –        $ 13 .34       13 .71%     $ 1,780,755         0 .82%       1 .02%       0 .82%(g)       222 .16%    
Year Ended December 31, 2005
  $ 11 .15       0 .09       0 .73       0 .82       (0 .11)       –          (0 .11)       –        $ 11 .86       7 .35%     $ 1,594,526         0 .83%       0 .86%       0 .83%(g)       179 .84%    
                                                                                                                                                         
Class IV Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .10       0 .03       (0 .64)       (0 .61)       (0 .03)       –          (0 .03)       –        $ 7 .46       (7 .57%)     $ 85,349,372         0 .80%       0 .84%       0 .80%       23 .44%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .52       0 .09       1 .58       1 .67       (0 .09)       –          (0 .09)       –        $ 8 .10       25 .94%     $ 98,226,930         0 .81%       1 .24%       0 .81%(g)       85 .37%    
Year Ended December 31, 2008
  $ 13 .59       0 .17       (5 .22)       (5 .05)       (0 .16)       (1 .86)       (2 .02)       –        $ 6 .52       (41 .55%)     $ 88,106,911         0 .81%       1 .51%       0 .81%(g)       373 .58%    
Year Ended December 31, 2007
  $ 13 .32       0 .15       0 .94       1 .09       (0 .15)       (0 .67)       (0 .82)       –        $ 13 .59       8 .18%     $ 165,599,721         0 .80%       1 .08%       0 .80%(g)       377 .04%    
Year Ended December 31, 2006
  $ 11 .85       0 .14       1 .47       1 .61       (0 .14)       –          (0 .14)       –        $ 13 .32       13 .63%     $ 166,541,627         0 .82%       1 .09%       0 .82%(g)       222 .16%    
Year Ended December 31, 2005
  $ 11 .13       0 .10       0 .72       0 .82       (0 .10)       –          (0 .10)       –        $ 11 .85       7 .44%     $ 162,547,141         0 .83%       0 .86%       0 .83%(g)       179 .84%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  Excludes merger activity.
(g)  There were no fee reductions during the period.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Nationwide Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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
 
 
 
14 Semiannual Report 2010

 

 
 
issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
  $ 954,060,818     $ —     $ —     $ 954,060,818      
 
 
Mutual Funds
    23,316,691       —       —       23,316,691      
 
 
Repurchase Agreement
    —       6,965,468       —       6,965,468      
 
 
Total Assets
  $ 977,377,509     $ 6,965,468     $ —     $ 984,342,977      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $2,901 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
 
 
16 Semiannual Report 2010

 

 
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 6,796,470     $ 6,965,468      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Aberdeen Asset Management, Inc. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $250 million     0.60%      
 
 
    $250 million up to $1 billion     0.575%      
 
 
    $1 billion up to $2 billion     0.55%      
 
 
    $2 billion up to $5 billion     0.525%      
 
 
    $5 billion and more     0.50%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $1,588,547 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
18 Semiannual Report 2010

 

 
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II and Class III shares and 0.20% of the average daily net assets of Class IV of the Fund.
 
For the six months ended June 30, 2010, NFS received $816,371 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $2,414.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had no redemption fees.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $137.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $249,127,063 (exclude the value of securities acquired in connection with the Fund merger (See Note 9)) and sales of $302,407,733 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered
 
 
 
20 Semiannual Report 2010

 

 
 
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 Trust’s 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. Other
 
On April 30, 2010, the Fund acquired all of the net assets of NVIT Nationwide Leaders Fund, a series of the Trust, pursuant to a plan of reorganization approved by the Trust’s Board of Trustees at a meeting held on December 2, 2009, and approved by the shareholders of the NVIT Nationwide Leaders Fund at a meeting of shareholders held on March 31, 2010. The purpose of the reorganization was to combine funds managed by NFA that had comparable investment objectives and strategies. The reorganization was accomplished by a tax-free exchange of 1,339,230 shares of the Fund, valued at $11,589,861, for the assets of NVIT Nationwide Leaders Fund. The investment portfolio of NVIT Nationwide Leaders Fund, with a fair value and identified cost of $11,399,487 and $8,694,250, respectively at April 30, 2010, was the principal asset acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair current values; however, the cost basis of the investments received was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the reorganization, the net assets of the Fund were $1,141,479,297.
 
The following pro forma information for the period ended June 30, 2010 is provided as though the reorganization had been completed on January 1, 2010, the beginning of the annual reporting period of the Fund:
 
  •  Net investment income $18,751,170;
 
  •  Net loss on investments $(531,353,388); and
 
  •  Net decrease in net assets resulting from operations $(512,602,218).
 
Because the Fund’s combined investment portfolio has been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of NVIT Nationwide Leaders Fund that have been included in the Fund’s Statement of Operations since April 30, 2010.
 
10. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 982,174,625     $ 81,427,420     $ (79,259,068)     $ 2,168,352      
 
 
 
11. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 21

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
22 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Nationwide Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Aberdeen Asset Management Inc., the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2009, the Fund’s performance for Class II shares placed it in the fifth quintile of its Peer Group and below the performance of the Fund’s benchmark, the S&P 500® Index. The Trustees also noted that the Fund has been on the watch list since the fourth quarter of 2008. The Trustees noted that the Fund’s underperformance for the one-year period ended September 30, 2009 was due in large part to poor performance prior to a portfolio manager change. The Trustees noted that the Fund’s performance was improving, and was 179 basis points above its benchmark for the first six months of 2009.
 
The Trustees then noted that the Fund’s contractual advisory fee and actual advisory fee for Class II shares were both in the second quintile of its Peer Group. The Trustees also noted that, although the Fund’s total expenses were in the third quintile and at the median of its Peer Group, total expenses were in the second quintile of its Peer Universe. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule included breakpoints, and that the first two breakpoints have been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 23

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 27

 

 
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NVIT International Index Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
24
   
Statement of Assets and Liabilities
       
26
   
Statement of Operations
       
27
   
Statements of Changes in Net Assets
       
29
   
Financial Highlights
       
30
   
Notes to Financial Statements
       
41
   
Supplemental Information
       
43
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-INTX (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT International Index Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT International Index Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class II Shares
    Actual       1,000.00       859.20       3.37       0.73  
      Hypothetical b     1,000.00       1,021.17       3.66       0.73  
 
 
Class VI Shares
    Actual       1,000.00       859.00       3.36       0.73  
      Hypothetical b     1,000.00       1,021.17       3.66       0.73  
 
 
Class VIII Shares
    Actual       1,000.00       858.40       4.05       0.88  
      Hypothetical b     1,000.00       1,020.43       4.41       0.88  
 
 
Class Y Shares
    Actual       1,000.00       861.10       1.52       0.33  
      Hypothetical b     1,000.00       1,023.16       1.66       0.33  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT International Index Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    98 .6%
Repurchase Agreements
    4 .3%
Preferred Stocks
    0 .4%
Warrant ‡
    0 .0%
Rights ‡
    0 .0%
Liabilities in excess of other assets
    (3 .3)%
         
      100 .0%
         
         
Top Industries †    
 
Commercial Banks
    12 .9%
Pharmaceuticals
    7 .4%
Oil, Gas & Consumable Fuels
    6 .3%
Metals & Mining
    5 .4%
Insurance
    4 .1%
Food Products
    3 .5%
Diversified Telecommunication Services
    3 .5%
Automobiles
    3 .2%
Chemicals
    3 .2%
Electric Utilities
    3 .1%
Other Industries *
    47 .4%
         
      100 .0%
         
         
Top Holdings †    
 
Nestle SA
    1 .8%
HSBC Holdings PLC
    1 .7%
Royal Dutch Shell PLC
    1 .7%
Vodafone Group PLC
    1 .2%
BHP Billiton Ltd.
    1 .2%
Novartis AG
    1 .1%
Roche Holding AG
    1 .1%
Toyota Motor Corp.
    1 .0%
Total SA
    1 .0%
BP PLC
    1 .0%
Other Holdings *
    87 .2%
         
      100 .0%
         
Top Countries †    
 
Japan
    22 .3%
United Kingdom
    17 .8%
France
    8 .9%
Switzerland
    8 .0%
Australia
    7 .7%
Germany
    7 .5%
Netherlands
    4 .4%
Spain
    3 .3%
Sweden
    2 .8%
Italy
    2 .6%
Other Countries *
    14 .7%
         
      100 .0%
         
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries, top holdings and top countries, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT International Index Fund
 
                 
                 
Common Stocks 98.6%
                 
      Shares       Market
Value 		 
 
 
AUSTRALIA 7.9%
Air Freight & Logistics 0.0%†
Toll Holdings Ltd. (a)
    66,317     $ 302,009  
                 
Airlines 0.0%†
Qantas Airways Ltd.*
    130,266       238,797  
                 
Beverages 0.2%
Coca-Cola Amatil Ltd. (a)
    60,201       602,782  
Foster’s Group Ltd. (a)
    206,661       978,857  
                 
              1,581,639  
                 
Biotechnology 0.2%
CSL Ltd. (a)
    58,178       1,588,460  
                 
Capital Markets 0.1%
Macquarie Group Ltd.
    34,503       1,060,502  
                 
Chemicals 0.1%
Incitec Pivot Ltd.
    166,961       377,595  
Orica Ltd.
    37,454       787,862  
                 
              1,165,457  
                 
Commercial Banks 2.3%
Australia & New Zealand Banking Group Ltd.
    263,179       4,727,060  
Bendigo and Adelaide Bank Ltd. (a)
    34,228       233,293  
Commonwealth Bank of Australia
    159,466       6,446,815  
National Australia Bank Ltd.
    220,181       4,257,033  
Westpac Banking Corp.
    309,308       5,452,007  
                 
              21,116,208  
                 
Commercial Services & Supplies 0.1%
Brambles Ltd.
    145,077       660,691  
                 
Construction & Engineering 0.0%†
Leighton Holdings Ltd.
    13,843       332,938  
                 
Construction Materials 0.0%†
Boral Ltd.
    58,087       232,677  
                 
Containers & Packaging 0.1%
Amcor Ltd.
    129,408       689,692  
                 
Diversified Financial Services 0.1%
ASX Ltd.
    18,125       442,146  
                 
Diversified Telecommunication Services 0.1%
Telstra Corp. Ltd.
    452,323       1,232,919  
                 
Electric Utilities 0.0%†
SP AusNet
    139,136       89,334  
                 
Energy Equipment & Services 0.0%†
WorleyParsons Ltd.
    19,678       362,050  
                 
Food & Staples Retailing 0.7%
Metcash Ltd. (a)
    81,225       285,483  
Wesfarmers Ltd.
    120,001       2,869,412  
Woolworths Ltd. (a)
    128,713       2,913,418  
                 
              6,068,313  
                 
Food Products 0.0%†
Goodman Fielder Ltd. (a)
    143,690       161,990  
                 
Health Care Equipment & Supplies 0.1%
Cochlear Ltd. (a)
    5,955       370,929  
                 
Health Care Providers & Services 0.0%†
Sonic Healthcare Ltd.
    36,701       319,366  
                 
Hotels, Restaurants & Leisure 0.1%
Aristocrat Leisure Ltd. (a)
    37,202       113,377  
Crown Ltd. (a)
    48,218       312,591  
TABCORP Holdings Ltd.
    62,516       331,320  
Tatts Group Ltd.
    131,223       246,044  
                 
              1,003,332  
                 
Industrial Conglomerates 0.0%†
CSR Ltd. (a)
    175,729       246,103  
                 
Information Technology Services 0.1%
Computershare Ltd. (a)
    46,702       413,018  
                 
Insurance 0.5%
AMP Ltd.
    213,394       926,142  
AXA Asia Pacific Holdings Ltd.
    106,884       488,991  
Insurance Australia Group Ltd. (a)
    218,360       621,144  
QBE Insurance Group Ltd.
    106,415       1,614,748  
Suncorp-Metway Ltd. (a)
    132,401       885,786  
                 
              4,536,811  
                 
Media 0.0%†
Fairfax Media Ltd. (a)
    207,460       226,683  
                 
Metals & Mining 1.8%
Alumina Ltd. (a)
    240,663       304,577  
BHP Billiton Ltd.
    348,942       10,855,432  
BlueScope Steel Ltd.*
    187,246       325,521  
Fortescue Metals Group Ltd.* (a)
    128,627       436,229  
MacArthur Coal Ltd.
    13,081       130,723  
Newcrest Mining Ltd. (a)
    50,129       1,462,590  
OneSteel Ltd.
    138,747       343,282  
OZ Minerals Ltd.*
    325,614       257,883  
Rio Tinto Ltd.
    45,218       2,486,737  
Sims Metal Management Ltd. (a)
    15,758       223,903  
                 
              16,826,877  
                 
Multiline Retail 0.0%†
Harvey Norman Holdings Ltd.
    49,611       137,037  
                 
Multi-Utilities 0.1%
AGL Energy Ltd.
    48,335       594,483  
                 
Oil, Gas & Consumable Fuels 0.5%
Arrow Energy Ltd.* (a)
    56,894       230,280  
Caltex Australia Ltd. (a)
    14,175       111,220  
Energy Resources of Australia Ltd.
    7,164       79,112  
Origin Energy Ltd. (a)
    91,722       1,144,298  
Paladin Energy Ltd.* (a)
    70,083       208,683  
Santos Ltd.
    85,233       890,728  
Woodside Petroleum Ltd. (a)
    56,422       1,961,190  
                 
              4,625,511  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
AUSTRALIA (continued)
                 
Real Estate Investment Trusts (REITs) 0.5%
CFS Retail Property Trust (a)
    183,807     $ 290,533  
Dexus Property Group
    502,153       322,221  
Goodman Group (a)
    621,730       328,840  
GPT Group (a)
    184,528       430,845  
Mirvac Group (a)
    321,315       350,908  
Stockland
    244,547       758,980  
Westfield Group (a)
    227,785       2,314,697  
                 
              4,797,024  
                 
Real Estate Management & Development 0.0%†
Lend Lease Group (a)
    53,154       323,691  
                 
Road & Rail 0.1%
Asciano Group* (a)
    301,003       404,215  
                 
Textiles, Apparel & Luxury Goods 0.0%†
Billabong International Ltd.
    19,290       140,086  
                 
Transportation Infrastructure 0.1%
Intoll Group
    266,118       231,874  
MAp Group
    53,728       120,414  
Transurban Group (a)
    130,969       464,896  
                 
              817,184  
                 
              73,108,172  
                 
 
 
AUSTRIA 0.3%
Commercial Banks 0.1%
Erste Group Bank AG (a)
    19,759       626,918  
Raiffeisen International Bank Holding AG* (a)
    5,675       215,542  
                 
              842,460  
                 
Diversified Telecommunication Services 0.1%
Telekom Austria AG
    34,878       387,836  
                 
Electric Utilities 0.0%†
Verbund AG (a)
    7,338       224,530  
                 
Insurance 0.0%†
Vienna Insurance Group (a)
    4,040       167,699  
                 
Metals & Mining 0.0%†
Voestalpine AG (a)
    12,604       343,267  
                 
Oil, Gas & Consumable Fuels 0.1%
OMV AG
    15,702       471,540  
                 
Real Estate Management & Development 0.0%†
Immofinanz AG* (a)
    97,109       249,339  
                 
              2,686,671  
                 
 
 
BELGIUM 0.9%
Beverages 0.4%
Anheuser-Busch InBev NV
    74,970       3,604,654  
Anheuser-Busch InBev NV VVPR*
    20,488       75  
                 
              3,604,729  
                 
Chemicals 0.1%
Solvay SA
    6,186       528,239  
Umicore
    12,873       371,402  
                 
              899,641  
                 
Commercial Banks 0.1%
Dexia SA* (a)
    58,546       204,300  
KBC Groep NV*
    16,849       645,826  
                 
              850,126  
                 
Diversified Financial Services 0.1%
Cie Nationale a Portefeuille
    3,254       138,429  
Groupe Bruxelles Lambert SA
    8,449       585,871  
                 
              724,300  
                 
Diversified Telecommunication Services 0.0%†
Belgacom SA
    15,554       489,045  
                 
Food & Staples Retailing 0.1%
Colruyt SA
    1,605       377,561  
Delhaize Group SA
    10,376       752,940  
                 
              1,130,501  
                 
Insurance 0.1%
Ageas
    232,232       516,790  
                 
Pharmaceuticals 0.0%†
UCB SA
    10,374       325,786  
                 
Wireless Telecommunication Services 0.0%†
Mobistar SA
    3,044       161,734  
                 
              8,702,652  
                 
 
 
BERMUDA 0.1%
Energy Equipment & Services 0.1%
Seadrill Ltd. (a)
    29,307       528,638  
                 
 
 
CHINA 0.0%†
Electronic Equipment, Instruments & Components 0.0%†
Foxconn International Holdings Ltd.* (a)
    255,926       165,685  
                 
Machinery 0.0%†
Yangzijiang Shipbuilding Holdings Ltd. (a)
    145,200       138,493  
                 
              304,178  
                 
 
 
CYPRUS 0.0%†
Commercial Banks 0.0%†
Bank of Cyprus Public Co. Ltd.
    63,566       254,570  
                 
 
 
DENMARK 1.0%
Beverages 0.1%
Carlsberg AS, Class B
    11,103       846,149  
                 
Chemicals 0.1%
Novozymes AS, Class B
    4,744       506,209  
                 
Commercial Banks 0.1%
Danske Bank AS*
    47,340       910,936  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
DENMARK (continued)
                 
Electrical Equipment 0.1%
Vestas Wind Systems AS*
    20,955     $ 872,065  
                 
Health Care Equipment & Supplies 0.0%†
Coloplast AS, Class B
    2,342       232,465  
William Demant Holding*
    2,433       177,955  
                 
              410,420  
                 
Insurance 0.0%†
TrygVesta AS
    2,631       138,614  
                 
Marine 0.2%
AP Moller — Maersk AS, Class A
    58       441,115  
AP Moller — Maersk AS, Class B
    135       1,063,235  
                 
              1,504,350  
                 
Pharmaceuticals 0.4%
Novo Nordisk AS, Class B
    45,236       3,654,741  
                 
Road & Rail 0.0%†
DSV AS
    21,515       309,764  
                 
              9,153,248  
                 
 
 
FINLAND 1.0%
Auto Components 0.0%†
Nokian Renkaat OYJ (a)
    11,077       271,090  
                 
Communications Equipment 0.4%
Nokia OYJ
    388,899       3,169,841  
                 
Diversified Financial Services 0.0%†
Pohjola Bank PLC
    17,665       179,374  
                 
Diversified Telecommunication Services 0.0%†
Elisa OYJ*
    13,950       241,281  
                 
Electric Utilities 0.1%
Fortum OYJ
    46,173       1,013,529  
                 
Food & Staples Retailing 0.0%†
Kesko OYJ, Class B
    6,947       224,710  
                 
Insurance 0.1%
Sampo OYJ, Class A
    44,200       931,897  
                 
Machinery 0.2%
Kone OYJ, Class B
    16,021       637,881  
Metso OYJ
    13,146       421,284  
Wartsila OYJ
    8,314       378,052  
                 
              1,437,217  
                 
Media 0.0%†
Sanoma OYJ (a)
    8,645       149,263  
                 
Metals & Mining 0.1%
Outokumpu OYJ (a)
    13,119       197,120  
Rautaruukki OYJ (a)
    9,300       135,546  
                 
              332,666  
                 
Oil, Gas & Consumable Fuels 0.0%†
Neste Oil OYJ
    13,594       197,241  
                 
Paper & Forest Products 0.1%
Stora Enso OYJ, Class R
    59,845       432,424  
Upm-Kymmene OYJ
    53,488       708,144  
                 
              1,140,568  
                 
Pharmaceuticals 0.0%†
Orion OYJ, Class B
    9,517       177,994  
                 
              9,466,671  
                 
 
 
FRANCE 9.2%
Aerospace & Defense 0.1%
Safran SA
    17,160       478,683  
Thales SA
    10,290       332,203  
                 
              810,886  
                 
Airlines 0.0%†
Air France-KLM*
    17,025       202,416  
                 
Auto Components 0.1%
Compagnie Generale des Etablissements Michelin, Class B
    15,653       1,090,579  
                 
Automobiles 0.1%
PSA Peugeot Citroen*
    16,982       431,645  
Renault SA*
    19,731       731,377  
                 
              1,163,022  
                 
Beverages 0.2%
Pernod-Ricard SA (a)
    20,738       1,608,546  
                 
Building Products 0.2%
Cie de Saint-Gobain
    39,936       1,488,196  
                 
Chemicals 0.3%
Air Liquide SA
    29,261       2,954,967  
                 
Commercial Banks 1.0%
BNP Paribas
    98,534       5,301,207  
Credit Agricole SA
    96,705       1,003,329  
Natixis*
    97,088       421,599  
Societe Generale
    65,266       2,685,626  
                 
              9,411,761  
                 
Commercial Services & Supplies 0.0%†
Societe BIC SA
    2,524       179,260  
                 
Communications Equipment 0.1%
Alcatel-Lucent*
    249,023       634,170  
                 
Construction & Engineering 0.3%
Bouygues SA
    23,815       919,294  
Eiffage SA
    4,166       180,852  
Vinci SA
    45,322       1,881,845  
                 
              2,981,991  
                 
Construction Materials 0.1%
Imerys SA
    3,878       197,332  
Lafarge SA (a)
    20,969       1,143,391  
                 
              1,340,723  
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
FRANCE (continued)
                 
Diversified Financial Services 0.0%†
Eurazeo
    2,989     $ 171,466  
                 
Diversified Telecommunication Services 0.4%
France Telecom SA
    192,521       3,339,261  
Iliad SA (a)
    1,588       123,314  
                 
              3,462,575  
                 
Electric Utilities 0.1%
EDF SA
    26,627       1,013,068  
                 
Electrical Equipment 0.4%
Alstom SA (a)
    21,450       971,199  
Legrand SA
    13,532       401,103  
Schneider Electric SA
    24,539       2,478,438  
                 
              3,850,740  
                 
Energy Equipment & Services 0.1%
Cie Generale de Geophysique-Veritas*
    15,873       282,379  
Technip SA
    10,486       601,434  
                 
              883,813  
                 
Food & Staples Retailing 0.3%
Carrefour SA
    62,229       2,468,470  
Casino Guichard Perrachon SA
    5,676       430,722  
                 
              2,899,192  
                 
Food Products 0.4%
Dannone SA
    60,451       3,240,790  
                 
Health Care Equipment & Supplies 0.2%
BioMerieux (a)
    1,189       122,073  
Cie Generale d’Optique Essilor International SA
    21,389       1,271,039  
                 
              1,393,112  
                 
Hotels, Restaurants & Leisure 0.1%
Accor SA* (a)
    15,075       697,902  
Sodexo
    9,698       538,209  
                 
              1,236,111  
                 
Information Technology Services 0.1%
Atos Origin SA*
    4,701       188,759  
Cap Gemini SA
    15,633       687,064  
                 
              875,823  
                 
Insurance 0.4%
AXA SA
    178,267       2,723,402  
CNP Assurances
    3,820       259,887  
SCOR SE
    16,829       321,423  
                 
              3,304,712  
                 
Machinery 0.1%
Vallourec SA
    5,598       965,164  
                 
Media 0.5%
Eutelsat Communications
    10,444       349,640  
JC Decaux SA*
    6,868       160,022  
Lagardere SCA
    12,283       383,098  
M6-Metropole Television SA
    6,028       121,892  
PagesJaunes Groupe (a)
    13,579       139,961  
Publicis Groupe SA (a)
    13,211       526,984  
Societe Television Francaise 1
    12,310       160,386  
Vivendi SA
    127,530       2,591,676  
                 
              4,433,659  
                 
Metals & Mining 0.0%†
Eramet
    569       140,637  
                 
Multiline Retail 0.1%
PPR
    8,149       1,012,294  
                 
Multi-Utilities 0.5%
GDF Suez
    129,151       3,674,423  
Suez Environnement Co.
    27,706       457,213  
Veolia Environnement
    35,543       835,011  
                 
              4,966,647  
                 
Office Electronics 0.0%†
Neopost SA (a)
    3,315       240,050  
                 
Oil, Gas & Consumable Fuels 1.1%
Total SA
    219,746       9,809,201  
                 
Personal Products 0.3%
L’Oreal SA
    24,855       2,433,556  
                 
Pharmaceuticals 0.7%
Ipsen SA
    3,028       92,190  
Sanofi-Aventis SA
    109,624       6,602,358  
                 
              6,694,548  
                 
Professional Services 0.0%†
Bureau Veritas SA (a)
    4,739       256,669  
                 
Real Estate Investment Trusts (REITs) 0.3%
Fonciere Des Regions
    2,584       213,012  
Gecina SA
    1,977       178,597  
ICADE
    2,412       203,573  
Klepierre
    9,034       249,600  
Unibail-Rodamco SE
    9,472       1,543,767  
                 
              2,388,549  
                 
Software 0.0%†
Dassault Systemes SA (a)
    6,351       384,741  
                 
Textiles, Apparel & Luxury Goods 0.5%
Christian Dior SA
    6,548       628,491  
Hermes International (a)
    5,430       719,834  
LVMH Moet Hennessy Louis Vuitton SA
    25,448       2,769,834  
                 
              4,118,159  
                 
Transportation Infrastructure 0.1%
Aeroports de Paris
    2,862       183,608  
Groupe Eurotunnel SA
    53,653       362,600  
                 
              546,208  
                 
              84,588,001  
                 
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
GERMANY 7.3%
Air Freight & Logistics 0.2%
Deutsche Post AG REG
    88,783     $ 1,294,468  
                 
Airlines 0.0%†
Deutsche Lufthansa AG REG*
    23,554       325,623  
                 
Auto Components 0.0%†
Continental AG*
    5,144       267,022  
                 
Automobiles 0.7%
Bayerische Motoren Werke AG
    34,307       1,666,516  
Daimler AG REG*
    93,705       4,740,114  
Volkswagen AG
    3,035       257,478  
                 
              6,664,108  
                 
Capital Markets 0.4%
Deutsche Bank AG REG
    64,477       3,621,623  
                 
Chemicals 0.9%
BASF SE
    95,431       5,214,384  
K+S AG
    14,767       678,637  
Linde AG
    17,591       1,849,690  
Wacker Chemie AG
    1,873       271,310  
                 
              8,014,021  
                 
Commercial Banks 0.1%
Commerzbank AG*
    76,782       535,996  
Deutsche Postbank AG*
    10,160       294,493  
                 
              830,489  
                 
Construction & Engineering 0.0%†
Hochtief AG
    4,680       279,422  
                 
Construction Materials 0.1%
HeidelbergCement AG
    14,849       701,774  
                 
Diversified Financial Services 0.1%
Deutsche Boerse AG
    20,031       1,216,954  
                 
Diversified Telecommunication Services 0.4%
Deutsche Telekom AG REG
    294,340       3,474,850  
                 
Electric Utilities 0.6%
E.ON AG
    187,124       5,031,430  
                 
Food & Staples Retailing 0.1%
Metro AG
    13,336       680,423  
                 
Food Products 0.0%†
Suedzucker AG (a)
    7,112       128,495  
                 
Health Care Equipment & Supplies 0.0%†
Fresenius SE
    2,904       192,511  
                 
Health Care Providers & Services 0.2%
Celesio AG
    8,234       179,547  
Fresenius Medical Care AG & Co. KGaA
    20,510       1,106,608  
                 
              1,286,155  
                 
Hotels, Restaurants & Leisure 0.0%†
TUI AG*
    14,514       127,541  
                 
Household Products 0.1%
Henkel AG & Co. KGaA
    13,583       555,924  
                 
Industrial Conglomerates 0.8%
Siemens AG REG
    85,526       7,649,422  
                 
Insurance 0.8%
Allianz SE REG
    47,155       4,667,090  
Hannover Rueckversicherung AG REG
    5,891       252,461  
Muenchener Rueckversicherungs AG REG
    20,483       2,571,904  
                 
              7,491,455  
                 
Internet Software & Services 0.0%†
United Internet AG*
    11,313       123,880  
                 
Machinery 0.1%
GEA Group AG
    17,017       338,688  
MAN SE
    10,876       896,640  
                 
              1,235,328  
                 
Metals & Mining 0.1%
Salzgitter AG
    4,327       257,861  
ThyssenKrupp AG
    35,470       874,093  
                 
              1,131,954  
                 
Multi-Utilities 0.3%
RWE AG
    43,464       2,844,106  
                 
Personal Products 0.1%
Beiersdorf AG
    10,369       572,680  
                 
Pharmaceuticals 0.6%
Bayer AG
    85,915       4,801,052  
Merck KGaA
    6,647       486,045  
                 
              5,287,097  
                 
Semiconductors & Semiconductor Equipment 0.1%
Infineon Technologies AG*
    115,137       667,496  
                 
Software 0.4%
SAP AG
    89,132       3,963,453  
                 
Textiles, Apparel & Luxury Goods 0.1%
Adidas AG
    21,738       1,052,443  
Puma AG Rudolf Dassler Sport
    601       159,734  
                 
              1,212,177  
                 
Transportation Infrastructure 0.0%†
Fraport AG Frankfurt Airport Services Worldwide
    3,830       162,885  
                 
              67,034,766  
                 
 
 
GREECE 0.2%
Beverages 0.1%
Coca Cola Hellenic Bottling Co. SA
    18,159       389,168  
                 
Commercial Banks 0.1%
Alpha Bank A.E.*
    49,916       243,961  
EFG Eurobank Ergasias SA*
    30,039       133,396  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
GREECE (continued)
Commercial Banks (continued)
                 
National Bank of Greece SA*
    63,543     $ 684,198  
Piraeus Bank SA*
    36,188       152,740  
                 
              1,214,295  
                 
Diversified Telecommunication Services 0.0%†
Hellenic Telecommunications Organization SA
    25,292       190,132  
                 
Electric Utilities 0.0%†
Public Power Corp. SA
    12,386       177,594  
                 
Hotels, Restaurants & Leisure 0.0%†
OPAP SA
    23,392       291,046  
                 
              2,262,235  
                 
 
 
GUERNSEY, CHANNEL ISLANDS 0.0%†
Insurance 0.0%†
Resolution Ltd.
    226,317       214,043  
                 
 
 
HONG KONG 2.5%
Airlines 0.0%†
Cathay Pacific Airways Ltd.
    121,000       239,305  
                 
Commercial Banks 0.3%
Bank of East Asia Ltd.
    163,340       589,264  
BOC Hong Kong Holdings Ltd.
    387,500       882,518  
Hang Seng Bank Ltd.
    79,500       1,062,940  
Wing Hang Bank Ltd.
    19,000       185,505  
                 
              2,720,227  
                 
Distributors 0.1%
Li & Fung Ltd.
    236,800       1,059,438  
                 
Diversified Financial Services 0.2%
Hong Kong Exchanges and Clearing Ltd.
    106,500       1,661,024  
                 
Diversified Telecommunication Services 0.0%†
PCCW Ltd.
    454,000       132,443  
                 
Electric Utilities 0.3%
Cheung Kong Infrastructure Holdings Ltd.
    46,000       170,400  
CLP Holdings Ltd.
    198,000       1,433,143  
Hongkong Electric Holdings Ltd.
    144,000       857,706  
                 
              2,461,249  
                 
Gas Utilities 0.1%
Hong Kong & China Gas Co. Ltd. (a)
    446,798       1,104,822  
                 
Hotels, Restaurants & Leisure 0.0%†
Shangri-La Asia Ltd.
    134,000       247,326  
                 
Industrial Conglomerates 0.2%
Hutchison Whampoa Ltd.
    219,000       1,347,741  
NWS Holdings Ltd.
    87,000       157,247  
                 
              1,504,988  
                 
Marine 0.0%†
Orient Overseas International Ltd.*
    28,000       200,154  
                 
Media 0.0%†
Television Broadcasts Ltd.
    27,000       125,203  
                 
Multiline Retail 0.0%†
Lifestyle International Holdings Ltd.
    63,399       122,667  
                 
Oil, Gas & Consumable Fuels 0.0%†
Mongolia Energy Co. Ltd.*
    371,184       129,137  
                 
Real Estate Investment Trusts (REITs) 0.1%
Link REIT (The)
    226,500       562,030  
                 
Real Estate Management & Development 1.0%
Cheung Kong Holdings Ltd.
    144,000       1,661,872  
Hang Lung Group Ltd.
    84,000       452,690  
Hang Lung Properties Ltd.
    216,000       826,189  
Henderson Land Development Co. Ltd.
    112,000       655,990  
Hopewell Holdings Ltd.
    62,511       176,548  
Hysan Development Co. Ltd.
    59,000       166,785  
Kerry Properties Ltd.
    82,500       356,478  
New World Development Ltd.
    284,130       461,271  
Sino Land Co. Ltd.
    176,000       314,535  
Sun Hung Kai Properties Ltd.
    147,000       2,010,368  
Swire Pacific Ltd., Class A
    79,000       896,748  
Wharf Holdings Ltd.
    144,000       697,617  
Wheelock & Co. Ltd.
    97,000       273,454  
                 
              8,950,545  
                 
Road & Rail 0.1%
MTR Corp.
    150,500       513,238  
                 
Semiconductors & Semiconductor Equipment 0.0%†
ASM Pacific Technology Ltd.
    20,500       159,259  
                 
Specialty Retail 0.1%
Esprit Holdings Ltd.
    123,982       665,952  
                 
Textiles, Apparel & Luxury Goods 0.0%†
Yue Yuen Industrial Holdings Ltd. (a)
    76,500       237,445  
                 
Trading Companies & Distributors 0.0%†
Noble Group Ltd.
    312,945       378,252  
                 
              23,174,704  
                 
 
 
IRELAND 0.5%
Airlines 0.0%†
Ryanair Holdings PLC*
    5,422       23,789  
                 
Commercial Banks 0.0%†
Anglo Irish Bank Corp. Ltd.* (b)
    62,537       0  
Governor & Co. of the Bank of Ireland (The)*
    349,278       281,407  
                 
              281,407  
                 
Construction Materials 0.2%
CRH PLC
    72,369       1,501,165  
James Hardie Industries SE CDI-IE*
    46,013       238,271  
                 
              1,739,436  
                 
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
IRELAND (continued)
                 
Food Products 0.0%†
Kerry Group PLC, Class A
    14,433     $ 400,641  
                 
Pharmaceuticals 0.2%
Elan Corp. PLC*
    50,556       229,480  
Shire PLC
    57,616       1,181,949  
                 
              1,411,429  
                 
Professional Services 0.1%
Experian PLC
    105,945       921,331  
                 
              4,778,033  
                 
 
 
ISRAEL 0.9%
Aerospace & Defense 0.0%†
Elbit Systems Ltd.
    2,385       121,060  
                 
Chemicals 0.1%
Israel Chemicals Ltd.
    45,588       474,922  
Israel Corp. Ltd. (The)*
    238       147,590  
Makhteshim-Agan Industries Ltd.
    24,602       82,097  
                 
              704,609  
                 
Commercial Banks 0.1%
Bank Hapoalim BM*
    101,946       367,188  
Bank Leumi Le-Israel BM*
    121,265       432,108  
Israel Discount Bank Ltd., Class A*
    55,482       93,816  
Mizrahi Tefahot Bank Ltd.*
    12,599       91,685  
                 
              984,797  
                 
Diversified Telecommunication Services 0.1%
Bezeq Israeli Telecommunication Corp. Ltd.
    177,901       388,874  
                 
Electrical Equipment 0.0%†
Ormat Industries
    6,107       45,181  
                 
Industrial Conglomerates 0.0%†
Delek Group Ltd.
    409       84,762  
Discount Investment Corp. REG
    2,630       41,602  
                 
              126,364  
                 
Pharmaceuticals 0.6%
Teva Pharmaceutical Industries Ltd.
    96,474       5,040,504  
                 
Software 0.0%†
NICE Systems Ltd.*
    6,357       161,328  
                 
Wireless Telecommunication Services 0.0%†
Cellcom Israel Ltd.
    5,087       126,693  
Partner Communications Co. Ltd
    8,743       134,199  
                 
              260,892  
                 
              7,833,609  
                 
 
 
ITALY 2.7%
Aerospace & Defense 0.1%
Finmeccanica SpA
    44,868       465,122  
                 
Auto Components 0.0%†
Pirelli & C SpA
    268,426       147,821  
                 
Automobiles 0.1%
Fiat SpA
    81,021       832,216  
                 
Capital Markets 0.0%†
Mediobanca SpA*
    53,113       395,635  
                 
Commercial Banks 0.8%
Banca Carige SpA
    58,035       113,370  
Banca Monte dei Paschi di Siena SpA*
    257,674       291,557  
Banca Popolare di Milano Scarl
    48,310       198,883  
Banco Popolare Societa Cooperativa
    70,562       386,855  
Intesa Sanpaolo SpA
    897,217       2,299,857  
UniCredit SpA
    1,601,151       3,541,805  
Unione di Banche Italiane SCPA
    62,575       538,781  
                 
              7,371,108  
                 
Diversified Financial Services 0.0%†
Exor SpA
    6,883       115,718  
                 
Diversified Telecommunication Services 0.2%
Telecom Italia SpA
    963,528       1,064,074  
Telecom Italia SpA — RSP
    632,058       577,360  
                 
              1,641,434  
                 
Electric Utilities 0.4%
Enel SpA
    683,367       2,893,489  
Terna Rete Elettrica Nazionale SpA (a)
    133,789       481,541  
                 
              3,375,030  
                 
Electrical Equipment 0.0%†
Prysmian SpA
    18,643       267,566  
                 
Energy Equipment & Services 0.1%
Saipem SpA
    27,235       829,530  
                 
Food Products 0.0%†
Parmalat SpA
    174,821       406,341  
                 
Gas Utilities 0.1%
Snam Rete Gas SpA
    149,792       597,789  
                 
Hotels, Restaurants & Leisure 0.0%†
Autogrill SpA*
    10,493       125,459  
                 
Insurance 0.2%
Assicurazioni Generali SpA
    121,109       2,111,808  
Mediolanum SpA (a)
    19,056       74,442  
                 
              2,186,250  
                 
Media 0.1%
Mediaset SpA
    72,906       414,589  
                 
Multi-Utilities 0.0%†
A2A SpA (a)
    112,797       153,984  
                 
Oil, Gas & Consumable Fuels 0.5%
ENI SpA
    270,503       4,965,372  
                 
Real Estate Management & Development 0.0%†
Beni Stabili SpA*
    15,504       11,755  
                 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
ITALY (continued)
                 
Textiles, Apparel & Luxury Goods 0.0%†
Luxottica Group SpA (a)
    13,034     $ 315,577  
                 
Transportation Infrastructure 0.1%
Atlantia SpA
    24,699       437,735  
                 
              25,056,031  
                 
 
 
JAPAN 23.0%
Air Freight & Logistics 0.1%
Yamato Holdings Co. Ltd.
    41,500       549,274  
                 
Airlines 0.0%†
All Nippon Airways Co. Ltd.*
    86,000       272,604  
                 
Auto Components 0.5%
Aisin Seiki Co., Ltd.
    20,000       538,451  
Bridgestone Corp.
    66,900       1,057,835  
Denso Corp.
    50,500       1,395,765  
Koito Manufacturing Co. Ltd.
    9,000       132,532  
NGK Spark Plug Co., Ltd.
    16,000       198,637  
NHK Spring Co. Ltd.
    16,000       146,352  
NOK Corp.
    10,500       166,738  
Stanley Electric Co. Ltd.
    15,200       251,717  
Sumitomo Rubber Industries, Ltd.
    15,900       140,237  
Toyoda Gosei Co. Ltd.
    8,000       198,405  
Toyota Boshoku Corp.
    7,300       106,585  
Toyota Industries Corp.
    18,700       474,533  
                 
              4,807,787  
                 
Automobiles 2.1%
Daihatsu Motor Co. Ltd.
    24,000       223,376  
Fuji Heavy Industries Ltd.*
    60,000       321,425  
Honda Motor Co. Ltd.
    171,600       5,040,380  
Isuzu Motors Ltd.
    122,000       366,609  
Mazda Motor Corp.
    162,900       380,672  
Mitsubishi Motors Corp.* (a)
    399,000       504,725  
Nissan Motor Co., Ltd.*
    258,200       1,799,261  
Suzuki Motor Corp.
    35,400       694,740  
Toyota Motor Corp.
    286,800       9,854,062  
Yamaha Motor Co. Ltd.*
    26,800       354,302  
                 
              19,539,552  
                 
Beverages 0.2%
Asahi Breweries Ltd.
    39,800       674,253  
Coca-Cola West Co. Ltd.
    6,100       100,794  
Ito En Ltd.
    4,900       74,949  
Kirin Holdings Co. Ltd.
    86,000       1,082,704  
Sapporo Holdings Ltd.
    23,000       98,870  
                 
              2,031,570  
                 
Building Products 0.3%
Asahi Glass Co. Ltd.
    105,000       985,932  
Daikin Industries Ltd.
    24,500       747,013  
JS Group Corp.
    25,800       492,466  
Nippon Sheet Glass Co. Ltd.
    60,000       146,785  
TOTO Ltd.
    29,000       192,632  
                 
              2,564,828  
                 
Capital Markets 0.4%
Daiwa Securities Group, Inc.
    173,400       732,087  
JAFCO Co. Ltd.
    2,600       57,515  
Matsui Securities Co. Ltd. (a)
    11,500       70,217  
Mizuho Securities Co. Ltd.
    65,000       144,919  
Nomura Holdings, Inc.
    367,700       2,008,923  
SBI Holdings, Inc.
    1,914       237,777  
                 
              3,251,438  
                 
Chemicals 1.0%
Air Water, Inc.
    15,000       163,774  
Asahi Kasei Corp.
    132,000       689,615  
Daicel Chemical Industries Ltd.
    27,000       182,158  
Denki Kagaku Kogyo KK
    49,000       228,074  
Hitachi Chemical Co. Ltd.
    9,900       183,924  
JSR Corp.
    20,300       340,995  
Kaneka Corp.
    29,000       168,236  
Kansai Paint Co. Ltd.
    23,000       197,430  
Kuraray Co. Ltd.
    35,500       416,471  
Mitsubishi Chemical Holdings Corp.
    124,000       565,990  
Mitsubishi Gas Chemical Co., Inc.
    37,000       179,405  
Mitsui Chemicals, Inc.
    97,000       271,089  
Nissan Chemical Industries Ltd.
    14,000       156,450  
Nitto Denko Corp.
    17,600       577,339  
Shin-Etsu Chemical Co. Ltd.
    42,700       1,985,345  
Showa Denko KK
    146,000       263,684  
Sumitomo Chemical Co. Ltd.
    164,000       634,709  
Taiyo Nippon Sanso Corp.
    27,000       214,407  
Teijin Ltd.
    91,000       270,175  
Tokuyama Corp.
    33,000       145,250  
Toray Industries, Inc.
    149,000       714,169  
Tosoh Corp.
    55,000       142,377  
Ube Industries Ltd.
    97,000       229,351  
                 
              8,920,417  
                 
Commercial Banks 2.1%
77 Bank Ltd. (The)
    33,000       177,258  
Aozora Bank Ltd.
    60,000       77,703  
Bank of Kyoto Ltd. (The)
    33,000       271,668  
Bank of Yokohama Ltd. (The)
    127,000       580,957  
Chiba Bank Ltd. (The)
    78,000       470,894  
Chugoku Bank Ltd. (The)
    17,000       200,317  
Chuo Mitsui Trust Holdings, Inc.
    103,000       363,225  
Fukuoka Financial Group, Inc.
    81,000       337,173  
Gunma Bank Ltd. (The)
    38,000       201,510  
Hachijuni Bank Ltd. (The)
    44,000       247,005  
Hiroshima Bank Ltd. (The)
    47,000       187,852  
Hokuhoku Financial Group, Inc.
    121,000       222,278  
Iyo Bank Ltd. (The)
    26,000       241,786  
Joyo Bank Ltd. (The)
    68,000       269,611  
Mitsubishi UFJ Financial Group, Inc.
    1,323,267       6,008,568  
Mizuho Financial Group, Inc. (a)
    1,434,784       2,354,209  
Mizuho Trust & Banking Co. Ltd.* (a)
    155,000       133,287  
Nishi-Nippon City Bank Ltd. (The)
    72,000       206,200  
Resona Holdings, Inc.
    62,500       762,750  
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
JAPAN (continued)
Commercial Banks (continued)
                 
Sapporo Hokuyo Holdings, Inc.
    33,600     $ 148,207  
Senshu Ikeda Holdings, Inc.
    67,330       98,045  
Seven Bank Ltd.
    63       114,345  
Shinsei Bank Ltd.* (a)
    109,000       92,147  
Shizuoka Bank Ltd. (The)
    63,000       549,049  
Sumitomo Mitsui Financial Group, Inc.
    139,553       3,949,680  
Sumitomo Trust & Banking Co. Ltd. (The)
    150,000       763,675  
Suruga Bank Ltd.
    21,000       190,593  
Yamaguchi Financial Group, Inc.
    20,000       191,141  
                 
              19,411,133  
                 
Commercial Services & Supplies 0.2%
Dai Nippon Printing Co. Ltd.
    57,000       657,855  
Nissha Printing Co. Ltd. (a)
    3,300       88,170  
Secom Co. Ltd.
    21,800       968,052  
Toppan Printing Co. Ltd.
    59,000       466,547  
                 
              2,180,624  
                 
Computers & Peripherals 0.4%
Fujitsu Ltd.
    194,000       1,212,660  
NEC Corp.
    267,000       693,096  
Seiko Epson Corp.
    13,400       173,185  
Toshiba Corp.*
    418,000       2,070,593  
                 
              4,149,534  
                 
Construction & Engineering 0.2%
Chiyoda Corp.
    14,000       101,668  
JGC Corp.
    23,000       349,007  
Kajima Corp.
    80,000       181,368  
Kinden Corp.
    14,000       119,216  
Obayashi Corp.
    63,000       249,763  
Shimizu Corp.
    63,000       215,311  
Taisei Corp.
    97,000       194,003  
                 
              1,410,336  
                 
Construction Materials 0.0%†
Taiheiyo Cement Corp.*
    76,000       95,965  
                 
Consumer Finance 0.1%
Acom Co. Ltd. (a)
    4,590       59,312  
Aeon Credit Service Co. Ltd.
    8,100       72,140  
Credit Saison Co. Ltd.
    15,000       156,990  
ORIX Corp.
    11,150       807,759  
                 
              1,096,201  
                 
Containers & Packaging 0.0%†
Toyo Seikan Kaisha Ltd.
    15,400       224,720  
                 
Distributors 0.0%†
Canon Marketing Japan, Inc.
    5,000       70,371  
                 
Diversified Consumer Services 0.0%†
Benesse Holdings, Inc.
    7,300       332,317  
                 
Diversified Financial Services 0.0%†
Mitsubishi UFJ Lease & Finance Co. Ltd.
    6,160       207,791  
                 
Diversified Telecommunication Services 0.2%
Nippon Telegraph & Telephone Corp.
    53,864       2,194,198  
                 
Electric Utilities 1.2%
Chubu Electric Power Co., Inc.
    68,600       1,702,405  
Chugoku Electric Power Co., Inc. (The)
    30,500       628,193  
Hokkaido Electric Power Co., Inc.
    18,800       404,987  
Hokuriku Electric Power Co.
    18,100       396,923  
Kansai Electric Power Co., Inc. (The)
    78,100       1,904,720  
Kyushu Electric Power Co., Inc.
    39,400       883,650  
Shikoku Electric Power Co., Inc.
    18,400       526,236  
Tohoku Electric Power Co., Inc.
    44,400       953,200  
Tokyo Electric Power Co., Inc. (The)
    126,400       3,438,516  
                 
              10,838,830  
                 
Electrical Equipment 0.5%
Fuji Electric Holdings Co. Ltd.
    60,000       172,760  
Furukawa Electric Co., Ltd.
    74,000       322,853  
GS Yuasa Corp. (a)
    41,000       268,294  
Mabuchi Motor Co. Ltd.
    2,900       132,410  
Mitsubishi Electric Corp.
    201,000       1,568,788  
Nidec Corp.
    11,300       946,004  
Panasonic Electric Works Co. Ltd.
    39,000       383,347  
Sumitomo Electric Industries Ltd.
    78,400       913,668  
Ushio, Inc.
    10,300       158,679  
                 
              4,866,803  
                 
Electronic Equipment, Instruments & Components 1.2%
Citizen Holdings Co. Ltd.
    31,500       192,431  
FUJIFILM Holdings Corp.
    48,700       1,407,404  
Hirose Electric Co. Ltd.
    3,500       320,542  
Hitachi High-Technologies Corp.
    7,300       134,108  
Hitachi Ltd.*
    469,000       1,703,552  
HOYA Corp.
    44,700       951,112  
Ibiden Co. Ltd.
    13,900       374,447  
Keyence Corp.
    4,310       996,655  
Kyocera Corp.
    16,900       1,368,162  
Mitsumi Electric Co., Ltd.
    8,100       137,411  
Murata Manufacturing Co., Ltd.
    20,900       996,681  
Nippon Electric Glass Co. Ltd.
    37,500       429,545  
Omron Corp.
    20,900       455,608  
Shimadzu Corp.
    26,000       195,983  
TDK Corp.
    12,700       694,972  
Yaskawa Electric Corp.
    24,000       178,040  
Yokogawa Electric Corp.
    21,500       133,083  
                 
              10,669,736  
                 
Food & Staples Retailing 0.3%
AEON Co., Ltd.
    64,400       681,438  
FamilyMart Co. Ltd.
    6,500       214,649  
Lawson, Inc.
    6,100       266,801  
 
 
 
2010 Semiannual Report 13

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
JAPAN (continued)
Food & Staples Retailing (continued)
                 
Seven & I Holdings Co. Ltd.
    80,000     $ 1,832,903  
UNY Co. Ltd.
    19,400       147,414  
                 
              3,143,205  
                 
Food Products 0.3%
Ajinomoto Co., Inc.
    70,000       633,304  
Kikkoman Corp.
    16,000       167,048  
MEIJI Holdings Co. Ltd.
    7,240       296,209  
Nippon Meat Packers, Inc.
    22,000       271,562  
Nisshin Seifun Group, Inc.
    18,000       203,243  
Nissin Foods Holdings Co. Ltd.
    6,600       242,273  
Toyo Suisan Kaisha Ltd.
    11,000       262,543  
Yakult Honsha Co. Ltd.
    10,200       277,470  
Yamazaki Baking Co. Ltd.
    12,000       161,835  
                 
              2,515,487  
                 
Gas Utilities 0.2%
Osaka Gas Co. Ltd.
    202,000       728,606  
Toho Gas Co. Ltd.
    43,000       229,368  
Tokyo Gas Co., Ltd.
    264,000       1,205,198  
                 
              2,163,172  
                 
Health Care Equipment & Supplies 0.2%
Olympus Corp.
    22,000       521,157  
Sysmex Corp.
    4,000       227,176  
Terumo Corp.
    18,200       871,591  
                 
              1,619,924  
                 
Health Care Providers & Services 0.1%
Alfresa Holdings Corp.
    4,000       193,325  
Mediceo Paltac Holdings Co. Ltd.
    13,700       162,718  
Suzuken Co. Ltd.
    6,800       227,614  
                 
              583,657  
                 
Hotels, Restaurants & Leisure 0.1%
McDonald’s Holdings Co., (Japan) Ltd.
    7,626       170,762  
Oriental Land Co. Ltd.
    5,200       434,578  
                 
              605,340  
                 
Household Durables 0.8%
Casio Computer Co. Ltd.
    22,600       135,740  
Panasonic Corp.
    203,700       2,543,572  
Rinnai Corp.
    4,100       210,452  
Sanyo Electric Co. Ltd.* (a)
    210,000       270,197  
Sekisui Chemical Co. Ltd.
    45,000       280,702  
Sekisui House Ltd.
    60,000       513,151  
Sharp Corp.
    106,000       1,118,155  
Sony Corp.
    104,300       2,781,995  
                 
              7,853,964  
                 
Household Products 0.0%†
Unicharm Corp.
    4,300       484,895  
                 
Independent Power Producers & Energy Traders 0.0%†
Electric Power Development Co. Ltd.
    12,000       380,622  
                 
Industrial Conglomerates 0.1%
Hankyu Hanshin Holdings, Inc.
    120,000       529,549  
                 
Information Technology Services 0.1%
Itochu Techno-Solutions Corp.
    3,200       116,938  
Nomura Research Institute Ltd.
    10,400       220,788  
NTT Data Corp.
    132       487,237  
Obic Co. Ltd.
    740       142,840  
Otsuka Corp.
    1,700       108,344  
                 
              1,076,147  
                 
Insurance 0.7%
Dai-ichi Life Insurance Co. Ltd. (The)
    832       1,153,686  
MS&AD Insurance Group Holdings
    56,241       1,203,745  
NKSJ Holdings, Inc.*
    145,600       871,146  
Sony Financial Holdings, Inc.
    92       306,890  
T&D Holdings, Inc.
    28,050       599,776  
Tokio Marine Holdings, Inc.
    75,100       1,974,368  
                 
              6,109,611  
                 
Internet & Catalog Retail 0.1%
Dena Co., Ltd.
    8,100       213,875  
Rakuten, Inc.
    754       544,791  
                 
              758,666  
                 
Internet Software & Services 0.1%
Yahoo! Japan Corp.
    1,516       604,240  
                 
Leisure Equipment & Products 0.2%
Namco Bandai Holdings, Inc.
    19,000       167,072  
Nikon Corp.
    33,000       568,716  
Sankyo Co. Ltd.
    5,700       257,649  
Sega Sammy Holdings, Inc.
    20,900       300,221  
Shimano, Inc.
    6,500       278,893  
Yamaha Corp.
    15,400       157,250  
                 
              1,729,801  
                 
Machinery 1.2%
Amada Co. Ltd.
    42,000       276,077  
Fanuc Ltd.
    19,900       2,247,159  
Hino Motors Ltd.
    28,000       138,056  
Hitachi Construction Machinery Co. Ltd. (a)
    10,000       184,113  
IHI Corp.
    141,000       224,376  
Japan Steel Works Ltd. (The)
    32,000       281,277  
JTEKT Corp.
    20,500       189,588  
Kawasaki Heavy Industries Ltd.
    146,000       353,991  
Komatsu Ltd.
    99,000       1,782,607  
Kubota Corp.
    119,000       912,766  
Kurita Water Industries Ltd.
    12,900       352,505  
Makita Corp.
    11,600       310,416  
Minebea Co. Ltd.
    35,000       193,888  
Mitsubishi Heavy Industries Ltd.
    322,000       1,110,817  
Mitsui Engineering & Shipbuilding Co. Ltd.
    68,000       137,346  
NGK Insulators Ltd.
    27,000       420,526  
NSK Ltd.
    45,000       312,531  
 
 
 
14 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
JAPAN (continued)
Machinery (continued)
                 
NTN Corp.
    51,000     $ 208,777  
SMC Corp.
    5,600       749,122  
Sumitomo Heavy Industries Ltd.
    57,000       334,450  
THK Co. Ltd.
    12,400       256,544  
                 
              10,976,932  
                 
Marine 0.2%
Kawasaki Kisen Kaisha Ltd.*
    74,000       300,908  
Mitsui OSK Lines Ltd.
    123,000       813,235  
Nippon Yusen KK
    164,000       597,661  
                 
              1,711,804  
                 
Media 0.1%
Dentsu, Inc.
    17,801       470,133  
Fuji Media Holdings, Inc.
    49       70,348  
Hakuhodo DY Holdings, Inc.
    2,110       105,710  
Jupiter Telecommunications Co. Ltd.
    249       238,394  
Toho Co. Ltd.
    10,700       177,391  
                 
              1,061,976  
                 
Metals & Mining 0.7%
Daido Steel Co. Ltd.
    30,000       128,293  
Dowa Holdings Co. Ltd.
    28,050       134,389  
Hitachi Metals Ltd.
    16,000       161,984  
JFE Holdings, Inc.
    47,400       1,466,414  
Kobe Steel Ltd.
    256,000       487,641  
Maruichi Steel Tube Ltd.
    4,800       91,813  
Mitsubishi Materials Corp.*
    118,000       313,646  
Mitsui Mining & Smelting Co. Ltd.
    53,000       139,869  
Nippon Steel Corp.
    530,000       1,751,884  
Nisshin Steel Co. Ltd.
    64,000       101,759  
Sumitomo Metal Industries Ltd.
    361,000       816,235  
Sumitomo Metal Mining Co. Ltd.
    54,000       673,653  
Tokyo Steel Manufacturing Co. Ltd.
    10,100       116,759  
Yamato Kogyo Co., Ltd.
    3,900       97,209  
                 
              6,481,548  
                 
Multiline Retail 0.1%
Isetan Mitsukoshi Holdings Ltd.
    38,560       375,905  
J. Front Retailing Co. Ltd.
    48,400       232,938  
Marui Group Co. Ltd.
    24,700       166,379  
Takashimaya Co., Ltd.
    29,000       231,166  
                 
              1,006,388  
                 
Office Electronics 0.7%
Brother Industries Ltd.
    24,300       252,265  
Canon, Inc.
    117,800       4,390,341  
Konica Minolta Holdings, Inc.
    51,500       495,444  
Ricoh Co., Ltd.
    70,000       892,607  
                 
              6,030,657  
                 
Oil, Gas & Consumable Fuels 0.3%
Cosmo Oil Co. Ltd.
    55,000       131,329  
Idemitsu Kosan Co. Ltd.
    2,300       173,176  
INPEX Corp.
    83       460,361  
Japan Petroleum Exploration Co.
    3,100       126,475  
JX Holdings, Inc.*
    230,989       1,141,686  
Showa Shell Sekiyu KK
    18,200       125,489  
TonenGeneral Sekiyu KK
    30,000       259,567  
                 
              2,418,083  
                 
Paper & Forest Products 0.1%
Nippon Paper Group, Inc.
    10,200       282,328  
OJI Paper Co. Ltd.
    88,000       431,459  
                 
              713,787  
                 
Personal Products 0.2%
Kao Corp.
    56,100       1,319,969  
Shiseido Co. Ltd.
    35,800       789,078  
                 
              2,109,047  
                 
Pharmaceuticals 1.1%
Astellas Pharma, Inc.
    47,300       1,584,820  
Chugai Pharmaceutical Co. Ltd.
    23,600       420,073  
Daiichi Sankyo Co. Ltd.
    71,000       1,268,478  
Dainippon Sumitomo Pharma Co. Ltd.
    16,400       125,574  
Eisai Co. Ltd.
    26,400       875,975  
Hisamitsu Pharmaceutical Co., Inc.
    7,100       281,626  
Kyowa Hakko Kirin Co. Ltd.
    25,000       237,093  
Mitsubishi Tanabe Pharma Corp.
    24,000       365,667  
Ono Pharmaceutical Co. Ltd.
    8,900       360,787  
Santen Pharmaceutical Co. Ltd.
    7,800       281,045  
Shionogi & Co. Ltd.
    30,700       636,464  
Taisho Pharmaceutical Co. Ltd.
    14,000       276,178  
Takeda Pharmaceutical Co. Ltd.
    77,900       3,346,012  
Tsumura & Co.
    5,800       177,586  
                 
              10,237,378  
                 
Real Estate Investment Trusts (REITs) 0.1%
Japan Prime Realty Investment Corp.
    69       145,347  
Japan Real Estate Investment Corp.
    50       407,280  
Japan Retail Fund Investment Corp.
    152       185,125  
Nippon Building Fund, Inc.
    53       420,530  
Nomura Real Estate Office Fund, Inc.
    25       124,458  
                 
              1,282,740  
                 
Real Estate Management & Development 0.6%
Aeon Mall Co. Ltd.
    8,800       174,333  
Daito Trust Construction Co. Ltd.
    8,800       498,332  
Daiwa House Industry Co. Ltd.
    49,000       440,812  
Mitsubishi Estate Co., Ltd.
    123,000       1,712,366  
Mitsui Fudosan Co., Ltd.
    87,000       1,210,907  
Nomura Real Estate Holdings, Inc.
    10,200       127,655  
NTT Urban Development Corp.
    123       97,716  
Sumitomo Realty & Development Co., Ltd.
    37,000       628,702  
Tokyo Tatemono Co. Ltd.
    40,000       123,268  
Tokyu Land Corp.
    49,000       171,287  
                 
              5,185,378  
                 
 
 
 
2010 Semiannual Report 15

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
JAPAN (continued)
                 
Road & Rail 0.8%
Central Japan Railway Co.
    158     $ 1,304,582  
East Japan Railway Co.
    35,276       2,348,872  
Keihin Electric Express Railway Co. Ltd.
    48,000       424,223  
Keio Corp.
    60,000       387,385  
Keisei Electric Railway Co. Ltd.
    26,000       145,365  
Kintetsu Corp. (a)
    171,000       521,788  
Nippon Express Co. Ltd.
    87,000       392,028  
Odakyu Electric Railway Co. Ltd.
    65,000       557,977  
Tobu Railway Co. Ltd. (a)
    91,000       490,145  
Tokyu Corp.
    126,000       512,845  
West Japan Railway Co.
    177       647,266  
                 
              7,732,476  
                 
Semiconductors & Semiconductor Equipment 0.3%
Advantest Corp.
    17,700       369,890  
Elpida Memory, Inc.*
    19,000       291,906  
Rohm Co. Ltd.
    9,900       594,487  
Shinko Electric Industries Co. Ltd.
    6,600       85,769  
Sumco Corp.*
    11,900       197,232  
Tokyo Electron Ltd.
    18,300       985,769  
                 
              2,525,053  
                 
Software 0.4%
Konami Corp.
    9,600       148,058  
Nintendo Co., Ltd.
    10,300       3,024,175  
Oracle Corp. Japan (a)
    3,600       176,905  
Square Enix Holdings Co. Ltd.
    6,000       110,519  
Trend Micro, Inc.
    10,100       272,950  
                 
              3,732,607  
                 
Specialty Retail 0.2%
ABC-Mart, Inc.
    2,600       101,994  
Fast Retailing Co. Ltd.
    5,500       832,230  
Nitori Co. Ltd.
    3,850       331,867  
Shimamura Co. Ltd.
    2,100       189,876  
USS Co. Ltd.
    2,320       165,728  
Yamada Denki Co. Ltd.
    8,730       570,416  
                 
              2,192,111  
                 
Textiles, Apparel & Luxury Goods 0.0%†
Asics Corp.
    14,000       128,183  
Nisshinbo Holdings, Inc.
    14,000       134,197  
                 
              262,380  
                 
Tobacco 0.2%
Japan Tobacco, Inc.
    467       1,452,882  
                 
Trading Companies & Distributors 1.0%
ITOCHU Corp.
    154,900       1,210,925  
Marubeni Corp.
    170,000       871,488  
Mitsubishi Corp.
    140,900       2,915,001  
Mitsui & Co., Ltd.
    181,100       2,112,674  
Sojitz Corp.
    133,100       208,013  
                 
Sumitomo Corp.
    117,100       1,169,479  
Toyota Tsusho Corp.
    21,900       312,155  
                 
              8,799,735  
                 
Transportation Infrastructure 0.0%†
Kamigumi Co. Ltd.
    25,000       191,831  
Mitsubishi Logistics Corp.
    11,000       122,588  
                 
              314,419  
                 
Wireless Telecommunication Services 0.7%
KDDI Corp.
    304       1,449,072  
NTT DoCoMo, Inc.
    1,605       2,430,435  
Softbank Corp.
    84,500       2,241,216  
                 
              6,120,723  
                 
              212,192,413  
                 
 
 
JERSEY, CHANNEL ISLANDS 0.1%
Metals & Mining 0.1%
Randgold Resources Ltd.
    9,591       911,798  
                 
 
 
LUXEMBOURG 0.5%
Energy Equipment & Services 0.1%
Tenaris SA
    49,077       846,470  
                 
Media 0.1%
SES SA FDR-LU
    31,494       654,966  
                 
Metals & Mining 0.2%
ArcelorMittal
    89,089       2,389,526  
                 
Wireless Telecommunication Services 0.1%
Millicom International Cellular SA SDR-LU
    7,919       642,559  
                 
              4,533,521  
                 
 
 
MACAU 0.1%
Hotels, Restaurants & Leisure 0.1%
Sands China Ltd.*
    198,700       293,674  
Wynn Macau Ltd.*
    160,000       260,918  
                 
              554,592  
                 
              554,592  
                 
 
 
MEXICO 0.0%†
Metals & Mining 0.0%†
Fresnillo PLC
    20,163       292,724  
                 
 
 
NETHERLANDS 4.5%
Aerospace & Defense 0.1%
European Aeronautic Defence and Space Co. NV*
    41,976       856,638  
                 
Air Freight & Logistics 0.1%
TNT NV
    38,163       961,215  
                 
 
 
 
16 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
NETHERLANDS (continued)
                 
Beverages 0.2%
Heineken Holding NV
    11,342     $ 414,348  
Heineken NV
    25,432       1,077,993  
                 
              1,492,341  
                 
Chemicals 0.2%
Akzo Nobel NV
    24,059       1,250,466  
Koninklijke DSM NV
    16,857       670,099  
                 
              1,920,565  
                 
Construction & Engineering 0.0%†
Koninklijke Boskalis Westminster NV (a)
    7,104       276,019  
                 
Diversified Financial Services 0.3%
ING Groep NV CVA-NL*
    397,685       2,943,074  
                 
Diversified Telecommunication Services 0.2%
Koninklijke (Royal) KPN NV
    169,475       2,160,216  
                 
Energy Equipment & Services 0.1%
Fugro NV CVA-NL
    6,902       318,855  
SBM Offshore NV (a)
    17,180       245,781  
                 
              564,636  
                 
Food & Staples Retailing 0.2%
Koninklijke Ahold NV (a)
    123,954       1,533,297  
                 
Food Products 0.5%
Unilever NV CVA-NL
    169,235       4,621,675  
                 
Industrial Conglomerates 0.3%
Koninklijke Philips Electronics NV
    100,950       3,014,576  
                 
Insurance 0.1%
Aegon NV*
    162,588       863,639  
Delta Lloyd NV
    7,666       129,195  
                 
              992,834  
                 
Life Sciences Tools & Services 0.1%
QIAGEN NV*
    24,243       471,646  
                 
Media 0.2%
Reed Elsevier NV
    70,723       782,920  
Wolters Kluwer NV
    31,000       594,487  
                 
              1,377,407  
                 
Oil, Gas & Consumable Fuels 1.7%
Royal Dutch Shell PLC, Class B
    280,188       6,772,342  
Royal Dutch Shell PLC, Class A
    368,615       9,302,392  
                 
              16,074,734  
                 
Professional Services 0.1%
Randstad Holding NV*
    11,555       454,056  
                 
Real Estate Investment Trusts (REITs) 0.0%†
Corio NV
    6,377       309,673  
                 
Semiconductors & Semiconductor Equipment 0.1%
ASML Holding NV
    44,365       1,220,919  
                 
Transportation Infrastructure 0.0%†
Koninklijke Vopak NV
    7,233       265,058  
                 
              41,510,579  
                 
 
 
NEW ZEALAND 0.1%
Construction Materials 0.1%
Fletcher Building Ltd.
    62,350       333,658  
                 
Diversified Telecommunication Services 0.0%†
Telecom Corp of New Zealand Ltd.
    194,873       250,953  
                 
Electric Utilities 0.0%†
Contact Energy Ltd.* (a)
    32,278       125,559  
                 
Hotels, Restaurants & Leisure 0.0%†
Sky City Entertainment Group Ltd.
    51,854       101,030  
                 
Transportation Infrastructure 0.0%†
Auckland International Airport Ltd.
    96,292       123,106  
                 
              934,306  
                 
 
 
NORWAY 0.7%
Chemicals 0.1%
Yara International ASA
    19,150       538,297  
                 
Commercial Banks 0.1%
DnB NOR ASA
    100,531       966,927  
                 
Diversified Telecommunication Services 0.1%
Telenor ASA
    86,084       1,084,427  
                 
Energy Equipment & Services 0.0%†
Aker Solutions ASA
    16,912       193,368  
                 
Industrial Conglomerates 0.1%
Orkla ASA
    78,442       501,648  
                 
Metals & Mining 0.0%†
Norsk Hydro ASA (a)
    70,162       316,841  
                 
Oil, Gas & Consumable Fuels 0.3%
StatoilHydro ASA
    116,152       2,237,648  
                 
Semiconductors & Semiconductor Equipment 0.0%†
Renewable Energy Corp. ASA* (a)
    58,657       138,695  
                 
              5,977,851  
                 
 
 
PORTUGAL 0.3%
Commercial Banks 0.1%
Banco Comercial Portugues SA, Class R (a)
    291,018       218,524  
Banco Espirito Santo SA REG
    51,366       202,680  
                 
              421,204  
                 
Construction Materials 0.0%†
Cimpor Cimentos de Portugal SGPS SA
    22,687       127,482  
                 
Diversified Telecommunication Services 0.1%
Portugal Telecom SGPS SA REG (a)
    61,088       610,571  
                 
Electric Utilities 0.1%
EDP — Energias de Portugal SA
    175,863       523,376  
                 
 
 
 
2010 Semiannual Report 17

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
PORTUGAL (continued)
                 
Food & Staples Retailing 0.0%†
Jeronimo Martins SGPS SA
    21,486     $ 196,859  
                 
Oil, Gas & Consumable Fuels 0.0%†
Galp Energia SGPS SA, Class B
    23,799       355,488  
                 
Transportation Infrastructure 0.0%†
Brisa Auto-Estradas de Portugal SA
    23,541       142,470  
                 
              2,377,450  
                 
 
 
SINGAPORE 1.6%
Aerospace & Defense 0.0%†
Singapore Technologies Engineering Ltd.
    171,000       399,754  
                 
Airlines 0.1%
Singapore Airlines Ltd.
    54,866       568,913  
                 
Commercial Banks 0.6%
DBS Group Holdings Ltd.
    178,500       1,732,323  
Oversea-Chinese Banking Corp. Ltd.
    254,000       1,599,468  
United Overseas Bank Ltd. (a)
    127,000       1,766,807  
                 
              5,098,598  
                 
Distributors 0.0%†
Jardine Cycle & Carriage Ltd.
    12,000       255,366  
                 
Diversified Financial Services 0.0%†
K-Green Trust*
    26,000       19,510  
Singapore Exchange Ltd. (a)
    87,000       456,248  
                 
              475,758  
                 
Diversified Telecommunication Services 0.2%
Singapore Telecommunications Ltd. (a)
    833,850       1,802,712  
                 
Food & Staples Retailing 0.0%†
Olam International Ltd. (a)
    147,600       270,914  
                 
Food Products 0.1%
Golden Agri-Resources Ltd.
    686,612       257,404  
Wilmar International Ltd. (a)
    131,294       537,196  
                 
              794,600  
                 
Hotels, Restaurants & Leisure 0.1%
Genting Singapore PLC*
    623,296       515,534  
                 
Industrial Conglomerates 0.2%
Fraser and Neave Ltd.
    99,745       364,741  
Keppel Corp. Ltd.
    130,000       784,883  
SembCorp Industries Ltd.
    101,000       292,077  
                 
              1,441,701  
                 
Machinery 0.0%†
Cosco Corp. Singapore Ltd. (a)
    104,000       109,401  
SembCorp Marine Ltd. (a)
    80,800       220,804  
                 
              330,205  
                 
Marine 0.0%†
Neptune Orient Lines Ltd.* (a)
    92,749       131,003  
                 
Media 0.0%†
Singapore Press Holdings Ltd. (a)
    164,000       441,459  
                 
Real Estate Investment Trusts (REITs) 0.1%
Ascendas Real Estate Investment Trust
    154,466       199,481  
CapitaMall Trust
    229,200       298,813  
                 
              498,294  
                 
Real Estate Management & Development 0.2%
CapitaLand Ltd.
    264,097       673,433  
CapitaMalls Asia Ltd.
    133,300       199,301  
City Developments Ltd.
    56,000       440,802  
Keppel Land Ltd.
    73,538       202,925  
UOL Group Ltd.
    50,000       134,669  
                 
              1,651,130  
                 
Road & Rail 0.0%†
ComfortDelgro Corp. Ltd.
    193,000       200,156  
                 
Wireless Telecommunication Services 0.0%†
StarHub Ltd.
    75,475       121,345  
                 
              14,997,442  
                 
 
 
SPAIN 3.5%
Airlines 0.0%†
Iberia Lineas Aereas de Espana SA*
    45,750       129,152  
                 
Biotechnology 0.0%†
Grifols SA (a)
    14,246       145,616  
                 
Commercial Banks 1.5%
Banco Bilbao Vizcaya Argentaria SA
    369,782       3,809,838  
Banco de Sabadell SA (a)
    104,020       471,036  
Banco de Valencia SA (a)
    22,704       101,062  
Banco Popular Espanol SA (a)
    95,830       485,707  
Banco Santander SA
    855,678       8,972,801  
Bankinter SA (a)
    26,932       164,085  
                 
              14,004,529  
                 
Construction & Engineering 0.1%
ACS Actividades de Construccion y Servicios SA (a)
    15,563       571,928  
Ferrovial SA (a)
    46,087       298,085  
Fomento de Construcciones y Contratas SA
    4,249       90,959  
                 
              960,972  
                 
Diversified Financial Services 0.0%†
Criteria Caixacorp SA
    86,484       353,671  
                 
Diversified Telecommunication Services 0.9%
Telefonica SA
    426,989       7,909,839  
                 
Electric Utilities 0.3%
Acciona SA (a)
    3,038       231,208  
Iberdrola SA
    409,088       2,299,303  
Red Electrica Corp. SA
    11,526       412,688  
                 
              2,943,199  
                 
 
 
 
18 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
SPAIN (continued)
                 
Electrical Equipment 0.0%†
Gamesa Corp. Tecnologica SA* (a)
    19,155     $ 164,484  
                 
Gas Utilities 0.1%
Enagas (a)
    18,760       282,586  
Gas Natural SDG SA (a)
    25,523       368,835  
                 
              651,421  
                 
Independent Power Producers & Energy Traders 0.1%
EDP Renovaveis SA*
    19,583       115,332  
Iberdrola Renovables SA
    98,610       309,470  
                 
              424,802  
                 
Information Technology Services 0.0%†
Indra Sistemas SA (a)
    9,312       148,883  
                 
Insurance 0.0%†
Mapfre SA (a) (b)
    2,424       6,591  
Mapfre SA (a)
    75,163       204,386  
                 
              210,977  
                 
Machinery 0.0%†
Zardoya Otis SA (b)
    604       7,807  
Zardoya Otis SA
    12,090       155,323  
                 
              163,130  
                 
Media 0.0%†
Gestevision Telecinco SA
    10,771       95,720  
                 
Metals & Mining 0.0%†
Acerinox SA
    10,258       159,402  
                 
Oil, Gas & Consumable Fuels 0.2%
Repsol YPF SA (a)
    76,359       1,540,930  
                 
Specialty Retail 0.2%
Industria de Diseno Textil SA
    22,636       1,290,736  
                 
Transportation Infrastructure 0.1%
Abertis Infraestructuras SA
    32,817       471,707  
                 
              31,769,170  
                 
 
 
SWEDEN 2.9%
Building Products 0.1%
Assa Abloy AB, Class B
    33,800       675,592  
                 
Capital Markets 0.0%†
Ratos AB, Class B
    11,413       285,937  
                 
Commercial Banks 0.6%
Nordea Bank AB
    335,258       2,764,593  
Skandinaviska Enskilda Banken AB, Class A
    145,097       768,801  
Svenska Handelsbanken AB, Class A
    50,816       1,243,156  
Swedbank AB*
    72,518       665,474  
                 
              5,442,024  
                 
Commercial Services & Supplies 0.0%†
Securitas AB, Class B
    30,748       278,715  
                 
Communications Equipment 0.4%
Telefonaktiebolaget LM Ericsson, Class B
    312,860       3,470,313  
                 
Construction & Engineering 0.1%
Skanska AB, Class B
    42,800       619,213  
                 
Diversified Financial Services 0.1%
Investor AB, Class B
    47,394       766,658  
Kinnevik Investment AB, Class B
    24,084       385,588  
                 
              1,152,246  
                 
Diversified Telecommunication Services 0.2%
Tele2 AB, Class B
    33,400       499,013  
TeliaSonera AB
    232,891       1,496,477  
                 
              1,995,490  
                 
Health Care Equipment & Supplies 0.1%
Getinge AB, Class B
    20,589       398,458  
                 
Household Durables 0.1%
Electrolux AB
    25,184       575,727  
Husqvarna AB, Class B
    42,939       258,210  
                 
              833,937  
                 
Machinery 0.6%
Alfa Laval AB
    37,375       485,365  
Atlas Copco AB, Class A
    69,649       1,018,315  
Atlas Copco AB, Class B
    40,760       538,092  
Sandvik AB
    104,676       1,276,832  
Scania AB, Class B
    33,539       511,934  
SKF AB, Class B
    41,675       747,949  
Volvo AB, Class B*
    112,904       1,248,583  
                 
              5,827,070  
                 
Media 0.0%†
Modern Times Group AB, Class B
    5,182       283,680  
                 
Metals & Mining 0.1%
Boliden AB
    28,136       310,977  
SSAB AB, Class A
    21,156       284,040  
Ssab Svenskt Stal AG Series B,
    11,408       136,934  
                 
              731,951  
                 
Paper & Forest Products 0.1%
Holmen AB, Class B
    5,617       133,347  
Svenska Cellulosa AB, Class B
    61,080       718,383  
                 
              851,730  
                 
Specialty Retail 0.3%
Hennes & Mauritz AB, Class B
    106,134       2,916,814  
                 
Tobacco 0.1%
Swedish Match AB
    24,529       536,016  
                 
              26,299,186  
                 
 
 
SWITZERLAND 8.3%
Biotechnology 0.0%†
Actelion Ltd. REG*
    11,573       433,315  
                 
 
 
 
2010 Semiannual Report 19

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
SWITZERLAND (continued)
                 
Building Products 0.1%
Geberit AG REG
    4,063     $ 632,184  
                 
Capital Markets 1.1%
Credit Suisse Group AG REG
    116,910       4,395,493  
GAM Holding Ltd.*
    21,467       231,984  
Julius Baer Group Ltd.
    21,248       605,836  
UBS AG REG*
    378,106       5,009,079  
                 
              10,242,392  
                 
Chemicals 0.4%
Givaudan SA REG
    798       677,768  
Sika AG
    210       372,257  
Syngenta AG REG
    9,791       2,261,878  
                 
              3,311,903  
                 
Computers & Peripherals 0.0%†
Logitech International SA REG* (a)
    18,988       257,029  
                 
Construction Materials 0.2%
Holcim Ltd. REG*
    25,574       1,711,970  
                 
Diversified Financial Services 0.0%†
Pargesa Holding SA
    2,819       184,854  
                 
Diversified Telecommunication Services 0.1%
Swisscom AG REG
    2,398       812,969  
                 
Electrical Equipment 0.4%
ABB Ltd. REG*
    229,242       3,991,241  
                 
Food Products 2.0%
Aryzta AG
    8,384       322,572  
Lindt & Spruengli AG
    90       195,277  
Lindt & Spruengli AG REG (a)
    12       294,068  
Nestle SA REG
    360,597       17,387,567  
                 
              18,199,484  
                 
Health Care Equipment & Supplies 0.1%
Nobel Biocare Holding AG REG
    14,223       244,839  
Sonova Holding AG REG
    4,802       589,290  
Straumann Holding AG REG
    741       160,259  
                 
              994,388  
                 
Insurance 0.6%
Baloise Holding AG REG
    5,365       373,436  
Swiss Life Holding AG REG*
    3,450       329,726  
Swiss Reinsurance Co. Ltd. REG
    36,498       1,499,639  
Zurich Financial Services AG
    15,308       3,374,092  
                 
              5,576,893  
                 
Life Sciences Tools & Services 0.0%†
Lonza Group AG REG
    4,671       310,992  
                 
Machinery 0.1%
Schindler Holding AG REG
    2,488       207,662  
Schindler Holding AG
    5,082       428,344  
                 
              636,006  
                 
Marine 0.1%
Kuehne + Nagel International AG REG
    5,555       571,825  
                 
Metals & Mining 0.3%
Xstrata PLC
    213,581       2,796,770  
                 
Pharmaceuticals 2.2%
Novartis AG REG
    219,383       10,631,986  
Roche Holding AG
    73,041       10,053,489  
                 
              20,685,475  
                 
Professional Services 0.2%
Adecco SA REG (a)
    13,233       631,305  
SGS SA REG
    571       770,651  
                 
              1,401,956  
                 
Semiconductors & Semiconductor Equipment 0.1%
STMicroelectronics NV
    68,400       543,264  
                 
Textiles, Apparel & Luxury Goods 0.3%
Compagnie Financiere Richemont SA, Class A
    54,679       1,908,969  
Swatch Group AG, (The)
    3,172       894,583  
Swatch Group AG, (The) REG
    4,600       235,076  
                 
              3,038,628  
                 
              76,333,538  
                 
 
 
UNITED KINGDOM 18.4%
Aerospace & Defense 0.4%
BAE Systems PLC
    367,403       1,709,974  
Cobham PLC
    120,935       383,114  
Rolls-Royce Group PLC, Class C* (b)
    16,921,530       25,282  
Rolls-Royce Group PLC*
    192,138       1,603,736  
                 
              3,722,106  
                 
Airlines 0.0%†
British Airways PLC* (a)
    54,270       157,669  
                 
Beverages 0.7%
Diageo PLC
    260,128       4,086,068  
SABMiller PLC
    98,453       2,760,672  
                 
              6,846,740  
                 
Capital Markets 0.2%
3I Group PLC
    101,617       400,789  
ICAP PLC
    61,437       368,236  
Investec PLC
    44,892       302,081  
Man Group PLC
    185,064       613,470  
Schroders PLC
    11,885       213,905  
                 
              1,898,481  
                 
Chemicals 0.1%
Johnson Matthey PLC
    22,545       500,882  
                 
Commercial Banks 3.3%
Barclays PLC
    1,189,949       4,749,687  
HSBC Holdings PLC
    1,811,884       16,552,836  
Lloyds Banking Group PLC*
    4,168,510       3,290,903  
 
 
 
20 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED KINGDOM (continued)
Commercial Banks (continued)
                 
Royal Bank of Scotland Group PLC*
    1,732,798     $ 1,055,310  
Standard Chartered PLC
    210,427       5,123,985  
                 
              30,772,721  
                 
Commercial Services & Supplies 0.2%
Aggreko PLC
    26,763       561,830  
G4S PLC
    145,097       575,273  
Serco Group PLC
    51,337       448,326  
                 
              1,585,429  
                 
Construction & Engineering 0.0%†
Balfour Beatty PLC
    70,496       250,731  
                 
Containers & Packaging 0.0%†
Rexam PLC
    87,307       392,756  
                 
Diversified Financial Services 0.0%†
London Stock Exchange Group PLC
    14,539       121,386  
                 
Diversified Telecommunication Services 0.3%
BT Group PLC
    810,958       1,565,389  
Cable & Wireless Worldwide PLC
    286,594       370,821  
Inmarsat PLC
    45,617       483,680  
                 
              2,419,890  
                 
Electric Utilities 0.2%
Scottish & Southern Energy PLC
    95,686       1,593,554  
                 
Energy Equipment & Services 0.1%
Amec PLC
    34,141       418,273  
Petrofac Ltd.
    26,666       469,134  
                 
              887,407  
                 
Food & Staples Retailing 0.7%
J Sainsbury PLC
    125,961       600,993  
Tesco PLC
    829,544       4,679,801  
WM Morrison Supermarkets PLC
    218,561       863,653  
                 
              6,144,447  
                 
Food Products 0.4%
Associated British Foods PLC
    39,166       567,190  
Unilever PLC
    133,282       3,562,897  
                 
              4,130,087  
                 
Health Care Equipment & Supplies 0.1%
Smith & Nephew PLC
    92,123       870,337  
                 
Hotels, Restaurants & Leisure 0.4%
Carnival PLC
    18,097       586,187  
Compass Group PLC
    193,583       1,472,680  
Intercontinental Hotels Group PLC
    27,072       426,658  
Thomas Cook Group PLC
    84,254       223,010  
Tui Travel PLC
    53,323       165,898  
Whitbread PLC
    18,224       380,572  
                 
              3,255,005  
                 
Household Products 0.3%
Reckitt Benckiser Group PLC
    63,559       2,956,406  
                 
Independent Power Producers & Energy Traders 0.1%
International Power PLC
    164,574       735,149  
                 
Industrial Conglomerates 0.1%
Smiths Group PLC
    40,612       646,577  
Tomkins PLC
    90,780       304,901  
                 
              951,478  
                 
Insurance 0.7%
Admiral Group PLC
    20,559       430,553  
Aviva PLC
    286,900       1,333,279  
Legal & General Group PLC
    611,740       713,008  
Old Mutual PLC
    558,238       854,689  
Prudential PLC
    262,610       1,980,764  
RSA Insurance Group PLC
    363,585       645,001  
Standard Life PLC
    233,787       604,153  
                 
              6,561,447  
                 
Internet & Catalog Retail 0.0%†
Home Retail Group PLC
    90,261       286,624  
                 
Machinery 0.0%†
Invensys PLC
    79,648       285,136  
                 
Media 0.5%
British Sky Broadcasting Group PLC
    116,802       1,219,621  
ITV PLC*
    380,064       284,025  
Pearson PLC
    83,104       1,092,965  
Reed Elsevier PLC
    130,106       964,710  
WPP PLC
    130,456       1,228,959  
                 
              4,790,280  
                 
Metals & Mining 2.1%
Anglo American PLC*
    136,788       4,766,403  
Antofagasta PLC
    42,428       493,635  
BHP Billiton PLC
    229,363       5,947,048  
Eurasian Natural Resources Corp. PLC
    28,213       359,006  
Kazakhmys PLC*
    23,529       345,381  
Lonmin PLC*
    16,039       334,902  
Rio Tinto PLC
    150,565       6,611,970  
Vedanta Resources PLC
    12,544       394,125  
                 
              19,252,470  
                 
Multiline Retail 0.2%
Marks & Spencer Group PLC
    170,566       840,279  
Next PLC
    19,406       578,580  
                 
              1,418,859  
                 
Multi-Utilities 0.6%
Centrica PLC
    532,496       2,349,916  
National Grid PLC
    359,266       2,622,990  
United Utilities Group PLC
    70,108       548,621  
                 
              5,521,527  
                 
Oil, Gas & Consumable Fuels 1.8%
BG Group PLC
    350,754       5,216,708  
BP PLC
    1,951,308       9,341,237  
Cairn Energy PLC*
    143,763       883,195  
 
 
 
2010 Semiannual Report 21

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT International Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED KINGDOM (continued)
Oil, Gas & Consumable Fuels (continued)
                 
Tullow Oil PLC
    91,778     $ 1,365,227  
                 
              16,806,367  
                 
Pharmaceuticals 1.8%
AstraZeneca PLC
    150,945       7,116,429  
GlaxoSmithKline PLC
    539,710       9,164,744  
                 
              16,281,173  
                 
Professional Services 0.1%
Capita Group PLC (The)
    64,804       713,961  
                 
Real Estate Investment Trusts (REITs) 0.2%
British Land Co. PLC
    89,306       576,867  
Capital Shopping Centres Group PLC
    49,146       227,048  
Hammerson PLC
    74,000       377,231  
Land Securities Group PLC
    81,668       675,865  
Segro PLC
    72,262       272,458  
                 
              2,129,469  
                 
Road & Rail 0.0%†
Firstgroup PLC
    49,660       269,563  
                 
Semiconductors & Semiconductor Equipment 0.1%
ARM Holdings PLC
    134,933       558,472  
                 
Software 0.1%
Autonomy Corp. PLC*
    22,436       611,569  
Sage Group PLC (The)
    135,176       465,086  
                 
              1,076,655  
                 
Specialty Retail 0.1%
Kingfisher PLC
    246,492       772,152  
                 
Textiles, Apparel & Luxury Goods 0.1%
Burberry Group PLC
    45,010       508,325  
                 
Tobacco 1.0%
British American Tobacco PLC
    207,509       6,585,467  
Imperial Tobacco Group PLC
    105,687       2,952,967  
                 
              9,538,434  
                 
Trading Companies & Distributors 0.1%
Bunzl PLC
    34,583       346,307  
Wolseley PLC*
    29,528       586,127  
                 
              932,434  
                 
Water Utilities 0.1%
Severn Trent PLC
    24,337       446,667  
                 
Wireless Telecommunication Services 1.2%
Vodafone Group PLC
    5,470,853       11,272,651  
                 
              169,615,327  
                 
 
 
UNITED STATES 0.1%
Health Care Equipment & Supplies 0.1%
Synthes, Inc.
    6,476       744,613  
                 
         
Total Common Stocks (cost $1,152,575,290)
    908,190,732  
         
                 
                 
Preferred Stocks 0.4%
                 
      Shares       Market
Value 		 
 
 
GERMANY 0.4%
Automobiles 0.2%
Bayerische Motoren Werke AG
    5,369       187,839  
Porsche Automobil Holding SE
    9,544       408,031  
Volkswagen AG
    17,651       1,548,887  
                 
              2,144,757  
                 
Health Care Equipment & Supplies 0.1%
Fresenius SE
    8,291       547,639  
                 
Household Products 0.1%
Henkel AG & Co. KGaA
    18,327       894,921  
                 
Multi-Utilities 0.0%†
RWE AG
    4,074       245,278  
                 
         
Total Preferred Stocks (cost $4,954,683)
    3,832,595  
         
                 
                 
Rights 0.0%
                 
      Number of
Rights 		      Market
Value 		 
 
 
AUSTRIA 0.0%
Real Estate Investment Trust (REIT) 0.0%
Immoeast AG* (a) (b)
    51,561       0  
                 
 
 
NORWAY 0.0%†
Metals & Mining 0.0%†
Norsk Hydro ASA 7/9/2010*
    21,353       11,015  
                 
         
Total Rights (cost $ — )
    11,015  
         
                 
                 
Warrant 0.0%
                 
      Number of
Warrants 		      Market
Value 		 
 
 
HONG KONG 0.0%†
Real Estate Management & Development 0.0%†
Henderson Land Development Co. Ltd. 6/1/2011*
    17,386       2,947  
                 
         
Total Warrant (cost $ — )
    2,947  
         
 
 
 
22 Semiannual Report 2010

 

 
 
 
                 
                 
                 
Repurchase Agreements 4.3%
                 
      Principal
Amount 		      Market
Value 		 
 
 
                 
Morgan Stanley, 0.03%, dated 6/30/10, due 7/01/10,
repurchase price $29,193,988, collateralized by U.S. Government Agency Mortgage Securities
4.00%-8.50%, maturing 03/01/15-06/01/40; total market value of $29,778,888. (c)
  $ 29,193,964     $ 29,193,964  
Barclays Capital, 0.01%, dated
6/30/10, due 7/01/10,
repurchase price $10,000,003, collateralized by U.S. Treasury Securities 1.88%, maturing 06/30/15; total market value of $10,200,001. (c)
    10,000,000       10,000,000  
                 
         
Total Repurchase Agreements
(Cost $39,193,964)
    39,193,964  
         
         
Total Investments
(Cost $1,196,723,937) (d) — 103.3%
    951,231,253  
         
Liabilities in excess of other assets — (3.3)%
    (30,346,688 )
         
         
NET ASSETS — 100.0%
  $ 920,884,565  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $37,018,499.
 
(b) Fair Valued Security.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $39,193,964.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
AG Stock Corporation
 
AS Stock Corporation
 
ASA Stock Corporation
 
CDI Clearing House Electronic Subregister System (CHESS) Depository Interest
 
CVA Dutch Certificate
 
IE Ireland
 
KGaA Limited Partnership with shares
 
KK Joint Stock Company
 
Ltd. Limited
 
LU Luxembourg
 
NL Netherlands
 
NV Public Traded Company
 
OYJ Public Traded Company
 
PLC Public Limited Company
 
REG Registered Shares
 
REIT Real Estate Investment Trust
 
RSP Savings Shares
 
SA Stock Company
 
SCA Limited partnership with share capital
 
SCPA Italian consortium joint-stock company
 
SE Sweden
 
SGPS Holding Enterprise
 
SpA Limited Share Company
 
VVPR Belgian Dividend Coupon
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
                             
            Notional Value
 		   
Number of
 		  Long
      Covered by
 		  Unrealized
Contracts   Contracts   Expiration   Contracts   Depreciation
 
51
 
DJ Euro STOXX 50
    09/17/10     $ 1,601,542     $ (82,033 )
38
 
E-Mini MSCI EAFE Index
    09/17/10       2,498,880       (67,028 )
16
 
FTSE 100 Index
    09/17/10       1,166,713       (73,071 )
5
 
SPI 200 Index
    09/16/10       448,442       (28,133 )
12
 
Topix Index
    09/09/10       1,138,042       (48,343 )
                             
                $ 6,853,619     $ (298,608 )
                             
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 23

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      International
 		 
      Index Fund  
       
Assets:
         
Investments, at value* (cost $1,157,529,973)
    $ 912,037,289  
Repurchase agreements, at value and cost
      39,193,964  
           
Total Investments
      951,231,253  
           
Deposits with broker for futures
      1,008,000  
Foreign currencies, at value (cost $8,382,675)
      8,432,516  
Dividends receivable
      2,039,763  
Security lending income receivable
      89,123  
Receivable for investments sold
      6,394,454  
Receivable for capital shares issued
      797,278  
Reclaims receivable
      585,510  
Prepaid expenses and other assets
      10,223  
           
Total Assets
      970,588,120  
           
Liabilities:
         
Payable for investments purchased
      6,389,141  
Payable for capital shares redeemed
      7,859  
Payable for variation margin on futures contracts
      41,083  
Cash overdraft (Note 2)
      3,625,868  
Payable upon return of securities loaned (Note 2)
      39,193,964  
Accrued expenses and other payables:
         
Investment advisory fees
      191,668  
Fund administration fees
      27,179  
Distribution fees
      9,150  
Administrative servicing fees
      11,217  
Accounting and transfer agent fees
      46,964  
Trustee fees
      469  
Custodian fees
      5,395  
Compliance program costs (Note 3)
      5,681  
Professional fees
      32,738  
Printing fees
      24,099  
Other
      91,080  
           
Total Liabilities
      49,703,555  
           
Net Assets
    $ 920,884,565  
           
Represented by:
         
Capital
    $ 1,191,111,761  
Accumulated undistributed net investment income
      8,959,073  
Accumulated net realized losses from investment, futures and foreign currency transactions
      (33,457,824 )
Net unrealized appreciation/(depreciation) from investments
      (245,492,684 )
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (298,608 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      62,847  
           
Net Assets
    $ 920,884,565  
           
*  Includes value of securities on loan of $37,018,499 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
24 Semiannual Report 2010

 

 
 
           
           
      NVIT
 		 
      International
 		 
      Index Fund  
       
Net Assets:
         
Class II Shares
    $ 17,717,990  
Class VI Shares
      1,671,649  
Class VIII Shares
      15,038,340  
Class Y Shares
      886,456,586  
           
Total
    $ 920,884,565  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      2,560,671  
Class VI Shares
      241,865  
Class VIII Shares
      2,175,786  
Class Y Shares
      127,882,678  
           
Total
      132,861,000  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 6.92  
Class VI Shares
    $ 6.91  
Class VIII Shares
    $ 6.91  
Class Y Shares
    $ 6.93  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 25

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      International
 		 
      Index Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 20,767,167  
Income from securities lending (Note 2)
      767,066  
Foreign tax withholding
      (2,007,376 )
           
Total Income
      19,526,857  
           
EXPENSES:
         
Investment advisory fees
      1,356,061  
Fund administration fees
      179,455  
Distribution fees Class II Shares
      23,730  
Distribution fees Class VI Shares
      2,300  
Distribution fees Class VIII Shares
      31,602  
Administrative servicing fees Class II Shares
      14,238  
Administrative servicing fees Class VI Shares
      1,380  
Administrative servicing fees Class VIII Shares
      11,850  
Professional fees
      52,494  
Printing fees
      11,809  
Trustee fees
      18,076  
Custodian fees
      18,995  
Accounting and transfer agent fees
      37,691  
Compliance program costs (Note 3)
      2,098  
Recoupment fees
      30,995  
Other
      23,100  
           
Total expenses before earnings credit and expenses waived
      1,815,874  
Earnings credit (Note 5)
      (4 )
Expenses voluntarily waived by adviser (Note 3)
      (60,390 )
           
Net Expenses
      1,755,480  
           
NET INVESTMENT INCOME
      17,771,377  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (8,140,701 )
Net realized losses from futures transactions (Note 2)
      (548,488 )
Net realized losses from forward and foreign currency transactions (Note 2)
      (1,899,128 )
           
Net realized losses from investment, futures, forward currency and foreign currency transactions
      (10,588,317 )
           
Net change in unrealized appreciation/(depreciation) from investments
      (154,863,680 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (1,107,117 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      12,961  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      884,385  
           
Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies
      (155,073,451 )
           
Net realized/unrealized losses from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies and foreign currency transactions
      (165,661,768 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (147,890,391 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
26 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT International Index Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 17,771,377       $ 21,862,613  
Net realized losses from investment, futures, forward currency and foreign currency transactions
      (10,588,317 )       (8,274,798 )
Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies
      (155,073,451 )       225,096,699  
                     
Change in net assets resulting from operations
      (147,890,391 )       238,684,514  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (133,115 )       (287,391 )
Class VI
      (12,493 )       (34,833 )
Class VIII
      (100,471 )       (301,643 )
Class Y
      (8,615,150 )       (24,560,698 )
                     
Change in net assets from shareholder distributions
      (8,861,229 )       (25,184,565 )
                     
Change in net assets from capital transactions
      39,790,564         231,296,179  
                     
Change in net assets
      (116,961,056 )       444,796,128  
                     
                     
Net Assets:
                   
Beginning of period
      1,037,845,621         593,049,493  
                     
End of period
    $ 920,884,565       $ 1,037,845,621  
                     
Accumulated undistributed net investment income at end of period
    $ 8,959,073       $ 48,925  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 5,462,555       $ 14,100,945  
Dividends reinvested
      133,115         287,391  
Cost of shares redeemed
      (4,843,765 )       (4,983,049 )
                     
Total Class II
      751,905         9,405,287  
                     
Class VI Shares
                   
Proceeds from shares issued
      336,012         923,100  
Dividends reinvested
      12,493         34,833  
Cost of shares redeemed
      (303,628 )       (531,272 )
                     
Total Class VI
      44,877         426,661  
                     
Class VIII Shares
                   
Proceeds from shares issued
      3,647,031         6,166,098  
Dividends reinvested
      100,471         301,643  
Cost of shares redeemed
      (1,254,095 )       (2,404,999 )
                     
Total Class VIII
      2,493,407         4,062,742  
                     
Class Y Shares
                   
Proceeds from shares issued
      38,488,285         215,217,506  
Dividends reinvested
      8,615,150         24,560,698  
Cost of shares redeemed
      (10,603,060 )       (22,376,715 )
                     
Total Class Y
      36,500,375         217,401,489  
                     
Change in net assets from capital transactions
    $ 39,790,564       $ 231,296,179  
                     
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 27

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT International Index Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      700,550         1,842,215  
Reinvested
      17,611         39,072  
Redeemed
      (620,306 )       (674,126 )
                     
Total Class II Shares
      97,855         1,207,161  
                     
Class VI Shares
                   
Issued
      43,077         121,564  
Reinvested
      1,653         4,750  
Redeemed
      (40,557 )       (83,359 )
                     
Total Class VI Shares
      4,173         42,955  
                     
Class VIII Shares
                   
Issued
      476,738         880,950  
Reinvested
      13,257         40,976  
Redeemed
      (163,243 )       (364,100 )
                     
Total Class VIII Shares
      326,752         557,826  
                     
Class Y Shares
                   
Issued
      5,002,982         34,076,585  
Reinvested
      1,132,007         3,366,921  
Redeemed
      (1,467,459 )       (3,027,295 )
                     
Total Class Y Shares
      4,667,530         34,416,211  
                     
Total change in shares
      5,096,310         36,224,153  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
28 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT International Index Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) From
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .11       0 .12       (1 .26)       (1 .14)       (0 .05)       –          (0 .05)     $ 6 .92       (14 .08%)     $ 17,717,990         0 .73%       3 .14%       0 .74%       1 .72%    
Year Ended December 31, 2009 (e)
  $ 6 .47       0 .16       1 .67       1 .83       (0 .19)       –          (0 .19)     $ 8 .11       28 .58%     $ 19,971,187         0 .77%       2 .24%       0 .77%       4 .25%    
Year Ended December 31, 2008 (e)
  $ 11 .63       0 .28       (5 .25)       (4 .97)       (0 .18)       (0 .01)       (0 .19)     $ 6 .47       (43 .11%)     $ 8,121,114         0 .80%       3 .01%       0 .80%       5 .50%    
Year Ended December 31, 2007 (e)
  $ 10 .82       0 .17       0 .86       1 .03       (0 .19)       (0 .03)       (0 .22)     $ 11 .63       9 .40%     $ 18,733,442         0 .76%       1 .63%       0 .78%       36 .09%    
Period Ended December 31, 2006 (e) (f)
  $ 10 .00       0 .12       0 .82       0 .94       (0 .12)       –          (0 .12)     $ 10 .82       9 .57%     $ 1,095         0 .76%       1 .83%       1 .29%       10 .94%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .10       0 .12       (1 .26)       (1 .14)       (0 .05)       –          (0 .05)     $ 6 .91       (14 .10%)     $ 1,671,649         0 .73%       3 .16%       0 .74%       1 .72%    
Year Ended December 31, 2009 (e)
  $ 6 .46       0 .16       1 .67       1 .83       (0 .19)       –          (0 .19)     $ 8 .10       28 .62%     $ 1,925,332         0 .79%       2 .31%       0 .79%       4 .25%    
Year Ended December 31, 2008 (e)
  $ 11 .62       0 .26       (5 .23)       (4 .97)       (0 .18)       (0 .01)       (0 .19)     $ 6 .46       (43 .11%)     $ 1,258,425         0 .75%       2 .93%       0 .89%       5 .50%    
Year Ended December 31, 2007 (e)
  $ 10 .81       0 .19       0 .84       1 .03       (0 .19)       (0 .03)       (0 .22)     $ 11 .62       9 .50%     $ 1,739,262         0 .80%       1 .97%       0 .88%       36 .09%    
Period Ended December 31, 2006 (e) (f)
  $ 10 .00       0 .07       0 .86       0 .93       (0 .12)       –          (0 .12)     $ 10 .81       9 .42%     $ 350,392         0 .76%       1 .25%       1 .13%       10 .94%    
                                                                                                                                               
Class VIII Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .10       0 .12       (1 .26)       (1 .14)       (0 .05)       –          (0 .05)     $ 6 .91       (14 .16%)     $ 15,038,340         0 .88%       3 .09%       0 .89%       1 .72%    
Year Ended December 31, 2009 (e)
  $ 6 .46       0 .16       1 .66       1 .82       (0 .18)       –          (0 .18)     $ 8 .10       28 .61%     $ 14,978,079         0 .82%       2 .22%       0 .82%       4 .25%    
Year Ended December 31, 2008 (e)
  $ 11 .61       0 .28       (5 .24)       (4 .96)       (0 .18)       (0 .01)       (0 .19)     $ 6 .46       (43 .09%)     $ 8,345,491         0 .76%       3 .00%       0 .77%       5 .50%    
Year Ended December 31, 2007 (e)
  $ 10 .80       0 .18       0 .83       1 .01       (0 .17)       (0 .03)       (0 .20)     $ 11 .61       9 .39%     $ 15,887,449         0 .82%       1 .87%       0 .91%       36 .09%    
Period Ended December 31, 2006 (e) (f)
  $ 10 .00       0 .07       0 .85       0 .92       (0 .12)       –          (0 .12)     $ 10 .80       9 .30%     $ 5,030,724         0 .88%       0 .98%       1 .35%       10 .94%    
                                                                                                                                               
Class Y Shares (g)
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .12       0 .14       (1 .26)       (1 .12)       (0 .07)       –          (0 .07)     $ 6 .93       (13 .89%)     $ 886,456,586         0 .33%       3 .56%       0 .34%       1 .72%    
Year Ended December 31, 2009 (e)
  $ 6 .48       0 .19       1 .67       1 .86       (0 .22)       –          (0 .22)     $ 8 .12       29 .07%     $ 1,000,971,023         0 .37%       2 .76%       0 .37%       4 .25%    
Year Ended December 31, 2008 (e)
  $ 11 .65       0 .24       (5 .18)       (4 .94)       (0 .22)       (0 .01)       (0 .23)     $ 6 .48       (42 .87%)     $ 575,324,463         0 .37%       2 .85%       0 .38%       5 .50%    
Year Ended December 31, 2007 (e)
  $ 10 .83       0 .20       0 .87       1 .07       (0 .22)       (0 .03)       (0 .25)     $ 11 .65       9 .89%     $ 264,417,580         0 .36%       2 .15%       0 .44%       36 .09%    
Period Ended December 31, 2006 (e) (f)
  $ 10 .00       0 .14       0 .83       0 .97       (0 .14)       –          (0 .14)     $ 10 .83       9 .83%     $ 43,912,307         0 .37%       2 .21%       0 .62%       10 .94%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
(g)  Effective May 1, 2008, Class ID Shares were renamed Class Y Shares.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 29

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT International Index Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) or other Insurance Companies and other series of the Trust that operate as funds-of-funds, such as the NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
30 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of the securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
  $ —     $ 908,190,732     $ —     $ 908,190,732      
Preferred Stocks
    —       3,832,595       —       3,832,595      
Repurchase Agreements
    —       39,193,964       —       39,193,964      
Rights
    —       11,015       —       11,015      
Warrant
    —       2,947       —       2,947      
 
 
Total Assets
    —       951,231,253       —       951,231,253      
 
 
Liabilities:
                                   
Futures Contracts
    (298,608 )     —       —       (298,608 )    
 
 
Total Liabilities
    (298,608 )     —       —       (298,608 )    
 
 
Total
  $ (298,608 )   $ 951,231,253     $ —     $ 950,932,645      
 
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
 
 
2010 Semiannual Report 31

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                             
    Common
 		           
    Stock   Right   Total    
 
Balance as of 12/31/09
  $ —     $ —     $ —      
 
 
Accrued Accretion/(Amortization)
    —       —       —      
 
 
Change in Unrealized Appreciation/(Depreciation)
    —       —       —      
 
 
Realized Gains/(Losses)
    —       —       —      
 
 
Net Purchases/(Sales)
    —       —       —      
 
 
Transfers In/(Out) of Level 3
    —       —       —      
 
 
Balance as of 6/30/10
  $ —     $ —     $ —      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $3,625,868 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of
 
 
 
32 Semiannual Report 2010

 

 
 
Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
(e)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
 
 
2010 Semiannual Report 33

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                     
    Statement of Assets & Liabilities Location   Fair Value    
 
Liabilities:
                   
Futures — Equity contracts*
    Net Assets — Unrealized depreciation from futures contracts     $ (298,608 )    
 
 
Total
          $ (298,608 )    
 
 
  *  Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ (548,488 )    
 
 
    Forward foreign currency contracts     (1,899,128 )    
 
 
    Total   $ (2,447,616 )    
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (1,107,117 )    
 
 
    Forward foreign currency contracts     12,961      
 
 
    Total   $ (1,094,156 )    
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(f)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(g)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
 
 
34 Semiannual Report 2010

 

 
 
(h)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 37,018,499     $ 39,193,964      
 
 
 
(i)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(j)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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
 
 
 
2010 Semiannual Report 35

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
technical merits of the position. If such a tax position taken by the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(k)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected BlackRock Investment Management LLC (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1.5 billion     0.27%      
 
 
    $1.5 billion up to $3 billion     0.26%      
 
 
    $3 billion and more     0.25%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $278,741 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.37% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement.
 
 
 
36 Semiannual Report 2010

 

 
 
Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                             
    Fiscal Year
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ 85,973     $ 59,094     $ —     $ —     $ 145,067      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
In addition, NFA voluntarily agreed to waive from its Investment Advisory Fee an amount equal to $60,390 for which NFA shall not be entitled to later seek recoupment.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT
 
 
 
2010 Semiannual Report 37

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II, Class VI, and Class VIII shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $27,468 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $2,098.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI and 0.40% of Class VIII shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class VI and Class VIII shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class VI and Class VIII shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class VI and Class VIII shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class VI and Class VIII shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,366.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,496.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the Fund under this arrangement would be primarily for temporary or emergency purposes, including the meeting of
 
 
 
38 Semiannual Report 2010

 

 
 
redemption requests that otherwise might require the untimely disposition of securities, and are subject to the Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $98,465,244 and sales of $16,767,194 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Risks Associated with REITs and Real Estate Investments. Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s
 
 
 
2010 Semiannual Report 39

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 1,198,515,710     $ 22,054,295     $ (269,338,752 )   $ (247,284,457 )    
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
40 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 41

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT International Index Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, LLC, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that the Fund’s performance for Class Y shares for the one-year period ended September 30, 2009 was in the third quintile and below the median of its Peer Universe, while for the two-year period ended September 30, 2009, the Fund was in the fourth quintile of its Peer Universe. The Trustees noted that the Fund underperformed its benchmark, the MSCI EAFE Index, for the one- and two-year periods ended September 30, 2009. The Trustees noted that this partially attributable to the fact that the Index, unlike the Fund, does not have expenses. The Trustees then noted that the Fund was only 37 basis points below the Index for the two-year period ended September 30, 2009. The Trustees also noted that the Fund has been on the watch list since the third quarter of 2009.
 
The Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class Y shares were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
42 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 43

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
44 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 45

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
46 Semiannual Report 2010

 

 
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NVIT Investor Destinations Moderate Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
20
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-MOD (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Moderate Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
 
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Investor Destinations Moderate Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a,b   01/01/10 - 06/30/10a,b
 
                                         
Class II Shares
    Actual       1,000.00       968.10       2.73       0.56  
      Hypothetical c     1,000.00       1,022.02       2.81       0.56  
 
 
Class VI Shares
    Actual       1,000.00       968.00       2.73       0.56  
      Hypothetical c     1,000.00       1,022.02       2.81       0.56  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Moderate Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    57 .5%
Fixed Income Funds
    33 .1%
Fixed Contract
    6 .4%
Money Market Fund
    3 .1%
Liabilities in excess of other assets
    (0 .1)%
         
      100 .0%
         
Top Holdings †    
 
NVIT S&P 500 Index Fund, Class Y
    28 .8%
NVIT Bond Index Fund, Class Y
    27 .0%
NVIT International Index Fund, Class Y
    12 .3%
NVIT Mid Cap Index Fund, Class Y
    10 .1%
Nationwide Fixed Contract
    6 .4%
NVIT Enhanced Income Fund, Class Y
    6 .1%
NVIT Small Cap Index Fund, Class Y
    5 .1%
NVIT Money Market Fund, Class Y
    3 .1%
Nationwide International Index Fund, Institutional Class
    1 .1%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Moderate Fund
 
                 
                 
Mutual Funds 93.7%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 57.5%
Nationwide International Index Fund, Institutional Class (a)
    4,676,004     $ 28,102,782  
NVIT International Index Fund, Class Y (a)
    47,036,253       325,961,230  
NVIT Mid Cap Index Fund, Class Y (a)
    18,381,741       266,351,422  
NVIT S&P 500 Index Fund, Class Y (a)
    106,014,332       759,062,614  
NVIT Small Cap Index Fund, Class Y (a)
    18,200,288       133,590,117  
                 
         
Total Equity Funds (cost $1,833,794,827)
    1,513,068,165  
         
 
 
Fixed Income Funds 33.1%
                 
NVIT Bond Index Fund, Class Y (a)
    67,528,558       711,751,006  
NVIT Enhanced Income Fund, Class Y (a)
    16,050,716       159,865,132  
                 
         
Total Fixed Income Funds (cost $840,151,200)
    871,616,138  
         
 
 
Money Market Fund 3.1%
                 
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    81,713,788       81,713,788  
                 
         
Total Money Market Fund (cost $81,713,788)
    81,713,788  
         
         
Total Mutual Funds (cost $2,755,659,815)
    2,466,398,091  
         
                 
                 
Fixed Contract 6.4%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Nationwide Fixed Contract, 3.60% (a) (c)
  $ 169,708,915     $ 169,708,915  
                 
         
Total Fixed Contract (cost $169,708,915)
    169,708,915  
         
         
Total Investments
(Cost $2,925,368,730) (d) — 100.1%
    2,636,107,006  
         
Liabilities in excess of other assets — (0.1)%
    (1,429,284 )
         
         
NET ASSETS — 100.0%
  $ 2,634,677,722  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor Destinations
 
    Moderate Fund  
       
Assets:
         
Investments in affiliates, at value (cost $2,925,368,730)
    $ 2,636,107,006  
Cash
      1,398  
Interest and dividends receivable
      10,617  
Receivable for capital shares issued
      883,216  
Prepaid expenses and other assets
      27,127  
           
Total Assets
      2,637,029,364  
           
Liabilities:
         
Payable for investments purchased
      398,949  
Payable for capital shares redeemed
      464,668  
Accrued expenses and other payables:
         
Investment advisory fees
      291,080  
Fund administration fees
      55,104  
Distribution fees
      554,918  
Administrative servicing fees
      354,411  
Accounting and transfer agent fees
      14,520  
Custodian fees
      16,597  
Compliance program costs (Note 3)
      14,433  
Professional fees
      101,721  
Printing fees
      34,852  
Other
      50,389  
           
Total Liabilities
      2,351,642  
           
Net Assets
    $ 2,634,677,722  
           
Represented by:
         
Capital
    $ 2,979,349,633  
Accumulated undistributed net investment income
      48,584  
Accumulated net realized losses from investment transactions with affiliates
      (55,458,771 )
Net unrealized appreciation/(depreciation) from investments in affiliates
      (289,261,724 )
           
Net Assets
    $ 2,634,677,722  
           
Net Assets:
         
Class II Shares
    $ 2,612,953,260  
Class VI Shares
      21,724,462  
           
Total
    $ 2,634,677,722  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      282,077,118  
Class VI Shares
      2,357,335  
           
Total
      284,434,453  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 9.26  
Class VI Shares
    $ 9.22  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor Destinations
 
    Moderate Fund  
       
INVESTMENT INCOME:
         
Interest income from affiliates
    $ 3,047,773  
Dividend income from affiliates
      28,984,334  
           
Total Income
      32,032,107  
           
EXPENSES:
         
Investment advisory fees
      1,792,058  
Fund administration fees
      111,449  
Distribution fees Class II Shares
      3,418,435  
Distribution fees Class VI Shares
      27,866  
Administrative servicing fees Class II Shares
      2,051,071  
Administrative servicing fees Class VI Shares
      16,720  
Professional fees
      123,180  
Printing fees
      21,264  
Trustee fees
      49,406  
Custodian fees
      53,511  
Accounting and transfer agent fees
      18,462  
Compliance program costs (Note 3)
      5,910  
Other
      65,775  
           
Total expenses before earnings credits
      7,755,107  
Earnings credit (Note 6)
      (5 )
           
Net Expenses
      7,755,102  
           
NET INVESTMENT INCOME
      24,277,005  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions with affiliates
      (17,451,857 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (93,153,346 )
           
Net realized/unrealized losses from affiliated investments
      (110,605,203 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (86,328,198 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
                     
      NVIT Investor Destinations
 		 
      Moderate Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 24,277,005       $ 55,113,915  
Net realized losses from investment transactions with affiliates
      (17,451,857 )       (123,205,188 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (93,153,346 )       516,256,584  
                     
Change in net assets resulting from operations
      (86,328,198 )       448,165,311  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (41,675,875 )       (37,309,718 )
Class VI
      (343,878 )       (266,318 )
Net realized gains:
                   
Class II
      –         (56,803,828 )
Class VI
      –         (406,694 )
                     
Change in net assets from shareholder distributions
      (42,019,753 )       (94,786,558 )
                     
Change in net assets from capital transactions
      (11,610,442 )       188,334,668  
                     
Change in net assets
      (139,958,393 )       541,713,421  
                     
                     
Net Assets:
                   
Beginning of period
      2,774,636,115         2,232,922,694  
                     
End of period
    $ 2,634,677,722       $ 2,774,636,115  
                     
Accumulated undistributed net investment income at end of period
    $ 48,584       $ 17,791,332  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 49,038,591       $ 154,354,723  
Proceeds from shares issued in acquisition of JPMorgan NVIT Balanced Fund (Note 10)
      –         95,904,573  
Dividends reinvested
      41,675,875         94,113,670  
Cost of shares redeemed
      (104,462,101 )       (157,126,263 )
                     
Total Class II
      (13,747,635 )       187,246,703  
                     
Class VI Shares
                   
Proceeds from shares issued
      5,596,558         6,148,683  
Dividends reinvested
      343,878         673,012  
Cost of shares redeemed
      (3,803,243 )       (5,733,730 )
                     
Total Class VI
      2,137,193         1,087,965  
                     
Change in net assets from capital transactions
    $ (11,610,442 )     $ 188,334,668  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations
 		 
      Moderate Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      5,008,735         17,809,978  
Issued in acquisition of JPMorgan NVIT Balanced Fund (Note 10)
      –         11,522,693  
Reinvested
      4,244,757         10,337,950  
Redeemed
      (10,710,918 )       (18,076,647 )
                     
Total Class II Shares
      (1,457,426 )       21,593,974  
                     
Class VI Shares
                   
Issued
      571,154         665,954  
Reinvested
      35,203         74,332  
Redeemed
      (394,804 )       (653,731 )
                     
Total Class VI Shares
      211,553         86,555  
                     
Total change in shares
      (1,245,873 )       21,680,529  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Moderate Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .71       0 .09       (0 .39)       (0 .30)       (0 .15)       –          (0 .15)     $ 9 .26       (3 .19%)     $ 2,612,953,260         0 .56%       1 .76%       0 .56%       1 .56%    
Year Ended December 31, 2009 (e)
  $ 8 .46       0 .20       1 .39       1 .59       (0 .14)       (0 .20)       (0 .34)     $ 9 .71       19 .14%     $ 2,753,893,536         0 .56%       2 .26%       0 .56%       22 .60%(f)    
Year Ended December 31, 2008
  $ 12 .44       0 .27       (2 .98)       (2 .71)       (0 .31)       (0 .96)       (1 .27)     $ 8 .46       (23 .20%)     $ 2,215,598,246         0 .56%       2 .41%       0 .56%       19 .00%    
Year Ended December 31, 2007
  $ 12 .28       0 .32       0 .38       0 .70       (0 .34)       (0 .20)       (0 .54)     $ 12 .44       5 .66%     $ 2,982,977,086         0 .55%       2 .54%       0 .55%       75 .27%    
Year Ended December 31, 2006
  $ 11 .40       0 .26       1 .01       1 .27       (0 .28)       (0 .11)       (0 .39)     $ 12 .28       11 .35%     $ 2,503,357,787         0 .57%       2 .32%       0 .57%       5 .69%    
Year Ended December 31, 2005
  $ 11 .26       0 .26       0 .33       0 .59       (0 .26)       (0 .19)       (0 .45)     $ 11 .40       5 .34%     $ 1,596,054,801         0 .56%       2 .41%       0 .56%       4 .20%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .67       0 .09       (0 .39)       (0 .30)       (0 .15)       –          (0 .15)     $ 9 .22       (3 .20%)     $ 21,724,462         0 .56%       1 .77%       0 .56%       1 .56%    
Year Ended December 31, 2009 (e)
  $ 8 .41       0 .20       1 .40       1 .60       (0 .14)       (0 .20)       (0 .34)     $ 9 .67       19 .37%     $ 20,742,579         0 .56%       2 .26%       0 .56%       22 .60%(f)    
Year Ended December 31, 2008
  $ 12 .40       0 .26       (2 .98)       (2 .72)       (0 .31)       (0 .96)       (1 .27)     $ 8 .41       (23 .37%)     $ 17,324,448         0 .56%       2 .43%       0 .56%       19 .00%    
Year Ended December 31, 2007
  $ 12 .25       0 .32       0 .38       0 .70       (0 .35)       (0 .20)       (0 .55)     $ 12 .40       5 .70%     $ 23,169,643         0 .55%       2 .51%       0 .55%       75 .27%    
Year Ended December 31, 2006
  $ 11 .38       0 .26       1 .02       1 .28       (0 .30)       (0 .11)       (0 .41)     $ 12 .25       11 .44%     $ 21,037,825         0 .56%       2 .30%       0 .56%       5 .69%    
Year Ended December 31, 2005
  $ 11 .24       0 .27       0 .33       0 .60       (0 .27)       (0 .19)       (0 .46)     $ 11 .38       5 .50%     $ 15,819,652         0 .47%       2 .56%       0 .47%       4 .20%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  Excludes merger activity.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Moderate Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Fund also invests in a non-registered Fixed Interest Contract (“Nationwide Fixed Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”).
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short
 
 
 
12 Semiannual Report 2010

 

 
 
term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
The Fund 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 the Fund a fixed rate of interest. The fixed interest rate is a minimum of 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the six months ended June 30, 2010, the rate ranged from 3.60% to 3.70%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions the Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed Contact should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously, under most circumstances, the Nationwide Fixed Contact is valued at par each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day’s net purchase or redemption.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Fixed Contract
  $ —     $ 169,708,915     $ —     $ 169,708,915      
Mutual Funds
    2,466,398,091       —       —       2,466,398,091      
 
 
Total Assets
  $ 2,466,398,091     $ 169,708,915     $ —     $ 2,636,107,006      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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
 
 
 
14 Semiannual Report 2010

 

 
 
liability (or a reduction in a deferred tax asset). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.13%      
 
 
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions;
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI of the Fund.
 
For the six months ended June 30, 2010, NFS received $2,067,791 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $5,910.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value at
 		          Dividend/
 		      Market Value
 		   
    December 31,
 		  Purchases
 		  Sales
  Interest
  Realized
  at June 30,
   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/(Loss)   2010    
 
Nationwide International Index Fund
Institutional Class
  $ 44,628,881     $ 396,920     $ 11,279,547     $ 396,920     $ (8,112,847)     $ 28,102,782      
 
 
NVIT International Index Fund Class Y
    376,358,376       5,263,547       —       3,167,421       —       325,961,230      
 
 
NVIT Mid Cap Index Fund Class Y
    276,358,604       3,533,955       7,537,748       2,136,537       (2,233,845)       266,351,422      
 
 
NVIT S&P 500 Index Fund Class Y
    831,836,726       11,422,314       22,613,244       7,230,062       (6,770,781)       759,062,614      
 
 
NVIT Small Cap Index Fund Class Y
    139,321,797       1,638,428       3,768,874       939,720       (1,032,069)       133,590,117      
 
 
NVIT Bond Index Fund Class Y
    691,312,019       16,965,898       18,844,370       13,471,819       696,006       711,751,006      
 
 
NVIT Enhanced Income Fund Class Y
    159,534,592       2,689,918       1,884,437       1,641,855       1,679       159,865,132      
 
 
NVIT Money Market Fund Class Y
    83,248,871       349,354       1,884,437       —       —       81,713,788      
 
 
Nationwide Fixed Contract
    173,521,179       677,711       7,537,748       3,047,773       —       169,708,915      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class VI shares on behalf of the contract owner for 60 days or less, unless an
 
 
 
16 Semiannual Report 2010

 

 
 
exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $2,143.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,049.
 
6. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
7. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $42,938,045 and sales of $75,350,405 (excluding short-term securities).
 
8. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
9. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
10. Other
 
On April 24, 2009, the Fund acquired all of the net assets of JP Morgan NVIT Balanced Fund, pursuant to a Plan of Reorganization and Liquidation approved by JP Morgan NVIT Balanced Fund shareholders on April 14, 2009. The purpose of the reorganization was to combine funds managed by NFA that had similar investment objectives and strategies. The reorganization was accomplished by (i) a taxable exchange of 11,522,693 Class II shares of the Fund, valued at $95,904,573 for the assets of JPMorgan NVIT Balanced Fund, (ii) the pro rata distribution of the Fund shares to the shareholders of JPMorgan NVIT Balanced Fund in exchange for their 14,067,276 shares outstanding on April 24, 2009, and (iii) the complete liquidation of the JPMorgan NVIT Balanced Fund. The principal asset acquired by the Fund was cash. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. The fair value of the assets acquired became the asset’s new cost basis. Immediately prior to the reorganization, the net assets of the Fund were $2,211,458,761.
 
Assuming the reorganization had been completed on January 1, 2009, the beginning of the annual reporting period of the Fund, the Fund’s pro forma results of operations for the year ended December 31, 2009 are as follows:
 
  •  Net investment income $55,944,694;
 
  •  Net gain on investments $350,805,856; and
 
  •  Net increase in net assets resulting from operations $406,750,550.
 
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of JP Morgan NVIT Balanced Fund that have been included in the Fund’s statement of operations since April 24, 2009.
 
 
 
18 Semiannual Report 2010

 

 
 
11. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 2,986,227,777     $ 26,782,773     $ (376,903,544)     $ (350,120,771)      
 
 
 
12. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 19

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
20 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Moderate Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the fifth quintile of its Peer Group but outperformed its benchmark, which is a 60%/25%/15% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index. The Trustees then noted that the Fund’s performance for Class II shares for the three- and five-year periods ended September 30, 2009 was in the third quintile of its Peer Group and Peer Universe, respectively. The Trustees noted, however, that, with respect to each of the three- and five-year periods ended September 30, 2009, the Fund outperformed its benchmark.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class II shares were in the third quintile and above the median of its Peer Group. The Trustees noted, however, that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

NVIT Multi-Manager Small Company Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
18
   
Statement of Assets and Liabilities
       
20
   
Statement of Operations
       
21
   
Statements of Changes in Net Assets
       
23
   
Financial Highlights
       
24
   
Notes to Financial Statements
       
34
   
Supplemental Information
       
36
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-SCO (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Small Company Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager Small
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Company Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       967.90       5.71       1.17  
      Hypothetical b     1,000.00       1,018.99       5.86       1.17  
 
 
Class II Shares
    Actual       1,000.00       966.10       6.92       1.42  
      Hypothetical b     1,000.00       1,017.75       7.10       1.42  
 
 
Class III Shares
    Actual       1,000.00       968.00       5.71       1.17  
      Hypothetical b     1,000.00       1,018.99       5.86       1.17  
 
 
Class IV Shares
    Actual       1,000.00       967.90       5.71       1.17  
      Hypothetical b     1,000.00       1,018.99       5.86       1.17  
 
 
Class Y Shares
    Actual       1,000.00       968.60       4.98       1.02  
      Hypothetical b     1,000.00       1,019.74       5.11       1.02  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Small Company Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .6%
Mutual Funds
    1 .7%
Repurchase Agreements
    0 .8%
Exchange Traded Funds
    0 .4%
Preferred Stocks
    0 .3%
Liabilities in excess of other assets
    (0 .8)%
         
      100 .0%
         
Top Industries †    
 
Machinery
    5 .9%
Software
    5 .2%
Commercial Banks
    5 .0%
Insurance
    4 .2%
Specialty Retail
    3 .9%
Hotels, Restaurants & Leisure
    3 .5%
Health Care Equipment & Supplies
    3 .4%
Oil, Gas & Consumable Fuels
    3 .3%
Energy Equipment & Services
    3 .1%
Health Care Providers & Services
    2 .5%
Other Industries *
    60 .0%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    1 .7%
Solera Holdings, Inc. 
    1 .1%
Hanover Insurance Group, Inc. (The)
    1 .0%
Wabtec Corp. 
    1 .0%
MICROS Systems, Inc. 
    0 .9%
P.F. Chang’s China Bistro, Inc. 
    0 .8%
Greenhill & Co., Inc. 
    0 .8%
Phillips-Van Heusen Corp. 
    0 .8%
Compass Minerals International, Inc. 
    0 .7%
Tellabs, Inc. 
    0 .7%
Other Holdings *
    90 .5%
         
      100 .0%
         
Top Countries †    
 
United States
    81 .5%
Japan
    4 .7%
United Kingdom
    1 .9%
Bermuda
    1 .3%
Germany
    1 .0%
Australia
    0 .7%
France
    0 .7%
Canada
    0 .6%
Hong Kong
    0 .6%
China
    0 .6%
Other Countries *
    6 .4%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries, top holdings and top countries, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund
 
                 
Common Stocks 97.6%
                 
      Shares       Market
Value 		 
 
 
ARGENTINA 0.3%
Internet Software & Services 0.3%
MercadoLibre, Inc.*
    25,102     $ 1,319,110  
                 
 
 
AUSTRALIA 0.6%
Automobiles 0.1%
Fleetwood Corp. Ltd.
    31,901       244,300  
                 
Commercial Services & Supplies 0.1%
Mineral Resources Ltd.
    30,558       205,581  
                 
Construction & Engineering 0.2%
Ausenco Ltd.
    1,085       1,605  
Monadelphous Group Ltd.
    65,162       689,711  
                 
              691,316  
                 
Electric Utilities 0.1%
Prime Infrastructure Group
    131,402       359,562  
                 
Energy Equipment & Services 0.0%†
Neptune Marine Services Ltd.*
    259,684       49,889  
                 
Insurance 0.0%†
Tower Australia Group Ltd.
    28,016       47,353  
                 
Metals & Mining 0.0%†
Lynas Corp. Ltd.*
    295,862       133,690  
Panoramic Resources Ltd.
    35,455       63,862  
                 
              197,552  
                 
Multiline Retail 0.1%
David Jones Ltd.
    90,050       323,381  
                 
Oil, Gas & Consumable Fuels 0.0%†
Beach Energy Ltd.
    137,036       78,597  
                 
Real Estate Management & Development 0.0%†
FKP Property Group
    92,243       52,004  
Sunland Group Ltd.*
    47,004       26,670  
                 
              78,674  
                 
Trading Companies & Distributors 0.0%†
Emeco Holdings Ltd.
    274,122       131,491  
                 
              2,407,696  
                 
 
 
AUSTRIA 0.1%
Real Estate Management & Development 0.1%
Immofinanz AG* (a)
    102,444       263,037  
Immofinanz AG* (b)
    103,675       0  
                 
              263,037  
                 
 
 
BELGIUM 0.2%
Food Products 0.1%
Sipef SA
    7,814       449,519  
                 
Oil, Gas & Consumable Fuels 0.1%
Euronav NV
    16,763       302,372  
                 
              751,891  
                 
 
 
BERMUDA 1.3%
Insurance 1.2%
Allied World Assurance Co. Holdings Ltd.
    18,800       853,144  
Arch Capital Group Ltd.*
    11,300       841,850  
Aspen Insurance Holdings Ltd.
    80,200       1,984,148  
Assured Guaranty Ltd.
    27,000       358,290  
Lancashire Holdings Ltd.
    82,227       609,547  
Validus Holdings Ltd.
    7,200       175,824  
                 
              4,822,803  
                 
Internet Software & Services 0.1%
VistaPrint NV*
    8,432       400,436  
                 
Oil, Gas & Consumable Fuels 0.0%
Infinity Bio-Energy Ltd.* (b)
    94,500       0  
                 
              5,223,239  
                 
 
 
BRAZIL 0.2%
Household Durables 0.2%
Brookfield Incorporacoes SA
    86,325       373,039  
Gafisa SA ADR-BR
    32,296       391,104  
                 
              764,143  
                 
 
 
CANADA 0.6%
Commercial Services & Supplies 0.1%
Ritchie Bros. Auctioneers, Inc.
    19,700       358,934  
                 
Machinery 0.0%†
AG Growth International, Inc.
    3,100       102,212  
                 
Media 0.0%†
MDC Partners, Inc., Class A
    13,950       148,986  
                 
Metals & Mining 0.1%
Major Drilling Group International
    9,900       201,711  
                 
Oil, Gas & Consumable Fuels 0.1%
Petrobank Energy & Resources Ltd.*
    11,000       389,290  
                 
Textiles, Apparel & Luxury Goods 0.3%
Lululemon Athletica, Inc.*
    37,289       1,387,896  
                 
              2,589,029  
                 
 
 
CAYMAN ISLANDS 0.2%
Insurance 0.2%
Greenlight Capital Re Ltd., Class A*
    26,837       676,024  
                 
 
 
CHINA 0.6%
Automobiles 0.0%†
Dongfeng Motor Group Co. Ltd., H Shares, Class H
    114,000       132,233  
                 
Diversified Consumer Services 0.1%
New Oriental Education & Technology Group ADR-CN*
    3,943       367,448  
                 
Electrical Equipment 0.1%
Harbin Power Equipment Co. Ltd., H Shares, Class H
    358,000       255,351  
                 
Energy Equipment & Services 0.0%†
Anhui Tianda Oil Pipe Co Ltd., H Shares
    549,000       192,036  
                 
Real Estate Management & Development 0.0%†
Shui On Land Ltd.
    151,050       65,016  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
CHINA (continued)
Software 0.1%
Longtop Financial Technologies Ltd. ADR-CN*
    8,636     $ 279,806  
                 
Textiles, Apparel & Luxury Goods 0.1%
Weiqiao Textile Co. Ltd., H Shares, Class H
    350,500       214,124  
                 
Transportation Infrastructure 0.2%
Sichuan Expressway Co. Ltd., H Shares, Class H
    688,000       377,019  
Zhejiang Expressway Co. Ltd., H Shares, Class H
    570,000       525,217  
                 
              902,236  
                 
              2,408,250  
                 
 
 
DENMARK 0.1%
Chemicals 0.0%†
Auriga Industries, Class B
    2,775       37,921  
                 
Construction & Engineering 0.0%†
Per Aarsleff AS, Class B
    962       71,206  
                 
Food Products 0.1%
East Asiatic Co., Ltd. AS
    8,425       180,351  
                 
Marine 0.0%†
               
D/S Norden
    2,345       80,829  
                 
Real Estate Management & Development 0.0%†
TK Development AS*
    27,169       95,513  
                 
              465,820  
                 
 
 
FINLAND 0.1%
Containers & Packaging 0.0%†
Huhtamaki OYJ
    8,706       80,470  
                 
Real Estate Management & Development 0.1%
Citycon OYJ
    88,902       261,566  
                 
Software 0.0%†
F-Secure OYJ (a)
    45,041       114,186  
Tekla OYJ
    2,891       23,907  
                 
              138,093  
                 
              480,129  
                 
 
 
FRANCE 0.7%
Chemicals 0.0%†
Internationale de Plantations d’Heveas SA
    1,103       72,258  
                 
Electrical Equipment 0.1%
Nexans SA
    9,599       559,331  
                 
Gas Utilities 0.1%
Rubis
    1,988       161,481  
                 
Hotels, Restaurants & Leisure 0.0%†
Pierre & Vacances (a)
    1,654       110,297  
                 
Household Durables 0.1%
Nexity
    16,468       469,355  
                 
Industrial Conglomerates 0.1%
Wendel
    3,706       186,602  
                 
IT Services 0.1%
Groupe Steria SCA (a)
    11,405       279,050  
Sopra Group SA*
    1,311       84,967  
                 
              364,017  
                 
Media 0.1%
Havas SA (a)
    100,311       441,279  
                 
Oil, Gas & Consumable Fuels 0.1%
Esso SA Francaise
    1,771       220,091  
                 
Professional Services 0.0%†
Teleperformance
    1,768       44,163  
                 
              2,628,874  
                 
 
 
GABON 0.0%†
Oil, Gas & Consumable Fuels 0.0%†
Total Gabon
    172       51,344  
                 
 
 
GERMANY 0.9%
Aerospace & Defense 0.2%
MTU Aero Engines Holding AG
    15,595       865,758  
                 
Machinery 0.2%
Demag Cranes AG*
    11,950       362,715  
Duerr AG*
    1,281       26,878  
Gesco AG
    1,713       85,204  
Gildemeister AG (a)
    22,333       248,467  
Heidelberger Druckmaschinen AG*
    27,456       247,647  
                 
              970,911  
                 
Media 0.1%
CTS Eventim AG
    5,738       276,880  
                 
Metals & Mining 0.2%
Aurubis AG
    16,291       707,778  
                 
Real Estate Management & Development 0.0%†
Dic Asset AG
    16,982       128,385  
                 
Thrifts & Mortgage Finance 0.2%
Aareal Bank AG*
    34,259       572,152  
                 
Trading Companies & Distributors 0.0%†
Phoenix Solar AG
    980       36,664  
                 
              3,558,528  
                 
 
 
GREECE 0.1%
Commercial Banks 0.1%
Piraeus Bank SA*
    46,403       195,854  
                 
 
 
HONG KONG 0.6%
Communications Equipment 0.3%
VTech Holdings Ltd.
    121,000       1,294,069  
                 
Distributors 0.0%†
Intergrated Distribution Services Group Ltd.
    93,900       162,571  
                 
Diversified Financial Services 0.1%
First Pacific Co.
    320,000       216,507  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
HONG KONG (continued)
Food Products 0.0%†
China Fishery Group Ltd.
    63,700     $ 88,075  
                 
Hotels, Restaurants & Leisure 0.1%
Mandarin Oriental International Ltd.
    117,042       164,348  
                 
Marine 0.0%†
Chu Kong Shipping Development Ltd.
    694,000       159,583  
Jinhui Shipping & Transportation Ltd.*
    1       3  
                 
              159,586  
                 
Pharmaceuticals 0.1%
China Pharmaceutical Group Ltd.
    308,000       184,576  
                 
Real Estate Investment Trusts (REITs) 0.0%†
Gzi Real Estate Investment Trust
    292,000       122,913  
                 
Water Utilities 0.0%†
Guangdong Investment Ltd.
    328,000       154,421  
                 
              2,547,066  
                 
 
 
IRELAND 0.6%
Food & Staples Retailing 0.0%†
Fyffes PLC
    166,947       67,370  
                 
Hotels, Restaurants & Leisure 0.2%
Paddy Power PLC
    20,539       638,110  
                 
Insurance 0.1%
Beazley PLC
    279,306       470,030  
                 
Life Sciences Tools & Services 0.3%
ICON PLC ADR-IE*
    39,700       1,146,933  
                 
              2,322,443  
                 
 
 
ITALY 0.5%
Commercial Banks 0.0%†
Credito Emiliano SpA
    24,013       134,762  
                 
Construction & Engineering 0.0%†
Trevi Finanziaria SpA
    4,503       64,614  
                 
Construction Materials 0.0%†
Buzzi Unicem SpA
    4,175       41,868  
                 
Electronic Equipment, Instruments & Components 0.1%
Esprinet SpA
    42,594       343,304  
                 
Household Durables 0.1%
Indesit Co. SpA
    40,961       459,678  
                 
Machinery 0.1%
Danieli & Co. SpA RSP
    45,590       466,015  
                 
Multi-Utilities 0.1%
ACEA SpA* (a)
    23,981       237,865  
                 
Oil, Gas & Consumable Fuels 0.1%
ERG SpA (a)
    31,578       368,061  
                 
              2,116,167  
                 
 
 
JAPAN 4.7%
Air Freight & Logistics 0.2%
Kintetsu World Express, Inc.
    25,700       643,476  
                 
Auto Components 0.2%
Futaba Industrial Co., Ltd.*
    13,700       102,951  
Press Kogyo Co., Ltd.* (a)
    208,000       649,525  
Sanden Corp.
    35,000       94,772  
Teikoku Piston Ring Co., Ltd.
    700       5,656  
                 
              852,904  
                 
Automobiles 0.2%
Isuzu Motors Ltd.
    237,000       712,184  
                 
Building Products 0.0%†
Takasago Thermal Engineering Co., Ltd.
    11,600       97,905  
                 
Chemicals 0.2%
Kanto Denka Kogyo Co., Ltd. (a)
    14,000       87,770  
Nippon Soda Co., Ltd.
    135,000       443,757  
Taiyo Ink Manufacturing Co., Ltd.
    4,800       125,572  
                 
              657,099  
                 
Commercial Banks 0.0%†
Musashino Bank Ltd. (The)
    6,800       195,247  
                 
Commercial Services & Supplies 0.0%†
Matsuda Sangyo Co., Ltd.
    3,800       61,353  
                 
Communications Equipment 0.1%
Mitsui Knowledge Industry Co., Ltd.
    1,195       201,220  
                 
Computers & Peripherals 0.1%
Megachips Corp. (a)
    3,000       44,532  
Melco Holdings, Inc.
    9,400       297,390  
                 
              341,922  
                 
Construction & Engineering 0.4%
NEC Networks & System Integration Corp.
    44,400       552,201  
Taikisha Ltd.
    32,000       502,237  
Toyo Engineering Corp.
    146,000       421,728  
                 
              1,476,166  
                 
Consumer Finance 0.1%
Hitachi Capital Corp.
    20,600       273,943  
                 
Distributors 0.0%†
Canon Marketing Japan, Inc.
    4,000       56,297  
                 
Diversified Financial Services 0.0%†
Ricoh Leasing Co., Ltd.
    3,200       73,145  
                 
Electrical Equipment 0.0%†
Furukawa Electric Co., Ltd. 
    36,000       157,064  
                 
Electronic Equipment, Instruments & Components 0.1%
Mitsumi Electric Co., Ltd.
    4,800       81,429  
Nihon Dempa Kogyo Co., Ltd. (a)
    6,300       112,183  
Sanshin Electronics Co., Ltd.
    11,300       94,956  
Siix Corp.
    24,100       267,145  
                 
              555,713  
                 
Food & Staples Retailing 0.3%
Arcs Co. Ltd.
    14,500       195,234  
Circle K Sunkus Co., Ltd.
    26,300       337,227  
Cosmos Pharmaceutical Corp.
    11,000       236,683  
Maruetsu, Inc. (The)
    2,000       7,386  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
JAPAN (continued)
Food & Staples Retailing (continued)
                 
Ministop Co., Ltd.
    12,400     $ 171,295  
Okuwa Co., Ltd.
    14,000       142,108  
                 
              1,089,933  
                 
Food Products 0.0%†
Kewpie Corp.
    4,800       55,253  
Yonekyu Corp.
    10,500       92,228  
                 
              147,481  
                 
Health Care Equipment & Supplies 0.2%
Aloka Co. Ltd.
    21,800       167,536  
Eiken Chemical Co., Ltd.
    35,400       323,411  
Hogy Medical Co., Ltd.
    5,100       247,648  
Nihon Kohden Corp.
    12,900       239,615  
                 
              978,210  
                 
Health Care Providers & Services 0.2%
BML, Inc.
    18,000       407,030  
Miraca Holdings, Inc.
    12,400       371,156  
                 
              778,186  
                 
Hotels, Restaurants & Leisure 0.1%
Ohsho Food Service Corp.
    5,400       138,341  
Pacific Golf Group International Holdings KK
    206       125,754  
                 
              264,095  
                 
Household Durables 0.2%
Rinnai Corp.
    13,600       698,085  
                 
Internet & Catalog Retail 0.1%
Dena Co., Ltd.
    12,200       322,132  
                 
Internet Software & Services 0.0%†
Zappallas, Inc.
    24       34,099  
                 
IT Services 0.0%†
Ines Corp.
    16,300       109,390  
NET One Systems Co., Ltd.
    71       91,629  
                 
              201,019  
                 
Leisure Equipment & Products 0.2%
Fields Corp.
    127       154,976  
Mars Engineering Corp.
    1,000       16,844  
Tomy Co. Ltd.
    52,200       397,037  
Universal Entertainment Corp.*
    18,800       341,614  
                 
              910,471  
                 
Machinery 0.4%
Aichi Corp.
    27,100       109,220  
Hosokawa Micron Corp.
    39,000       140,677  
Namura Shipbuilding Co., Ltd.
    32,600       183,973  
Nitta Corp. (a)
    4,100       65,640  
Tsugami Corp. (a)
    137,000       943,463  
                 
              1,442,973  
                 
Media 0.2%
Daiichikosho Co., Ltd.
    8,800       127,983  
Sky Perfect Jsat Holdings Inc
    1,209       432,143  
Wowow, Inc.
    210       416,682  
                 
              976,808  
                 
Metals & Mining 0.4%
Kyoei Steel Ltd.
    21,800       355,126  
Mitsubishi Steel Manufacturing Co., Ltd.
    114,000       223,083  
Nippon Coke & Engineering Co., Ltd.
    45,500       62,731  
Osaka Steel Co., Ltd.
    14,600       200,757  
Pacific Metals Co., Ltd. (a)
    46,000       308,366  
Yamato Kogyo Co., Ltd.
    12,400       309,075  
                 
              1,459,138  
                 
Office Electronics 0.0%†
Brother Industries Ltd.
    2,600       26,991  
Toshiba TEC Corp.
    42,000       135,643  
                 
              162,634  
                 
Personal Products 0.0%†
Mandom Corp.
    4,000       108,709  
                 
Pharmaceuticals 0.2%
Kaken Pharmaceutical Co., Ltd.
    31,000       307,977  
Nippon Shinyaku Co., Ltd.
    45,000       511,749  
                 
              819,726  
                 
Real Estate Management & Development 0.1%
Tokyu Livable, Inc. (a)
    40,200       400,848  
                 
Semiconductors & Semiconductor Equipment 0.1%
Sumco Corp.*
    12,800       212,148  
                 
Software 0.1%
Capcom Co., Ltd.
    2,800       45,151  
DTS Corp.
    6,200       75,596  
Fuji Soft ABC, Inc.
    10,800       178,407  
MTI Ltd.
    121       157,073  
Sumisho Computer Systems Corp.
    3,600       49,930  
                 
              506,157  
                 
Specialty Retail 0.2%
Alpen Co., Ltd.
    3,100       48,807  
Geo Corp.
    559       678,195  
                 
              727,002  
                 
Textiles, Apparel & Luxury Goods 0.1%
Fujibo Holdings, Inc.
    5,000       6,817  
Gunze Ltd.
    61,000       191,191  
Sanei-International Co., Ltd.
    9,600       110,953  
                 
              308,961  
                 
Trading Companies & Distributors 0.0%†
Hanwa Co., Ltd.
    32,000       127,034  
                 
              19,031,487  
                 
 
 
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
MEXICO 0.1%
Transportation Infrastructure 0.1%
Grupo Aeroporuario del Pacifico SAB de CV ADR-MX
    12,787     $ 371,462  
                 
 
 
NETHERLANDS 0.5%
Capital Markets 0.1%
BinckBank NV (a)
    43,195       537,450  
                 
Electrical Equipment 0.0%†
Draka Holding*
    8,294       114,961  
                 
Energy Equipment & Services 0.3%
Core Laboratories NV
    7,500       1,107,075  
                 
Professional Services 0.0%†
USG People NV*
    6,800       95,642  
                 
Software 0.1%
Exact Holding NV
    4,217       95,764  
Unit 4 Agresso NV
    6,171       128,696  
                 
              224,460  
                 
              2,079,588  
                 
 
 
NEW ZEALAND 0.0%†
Airlines 0.0%†
Air New Zealand Ltd.
    31,155       22,782  
                 
 
 
NORWAY 0.3%
Capital Markets 0.0%†
ABG Sundal Collier Holding ASA
    218,280       206,493  
                 
Commercial Banks 0.1%
Sparebank 1 Nord Norge
    7,073       105,235  
Sparebanken Rogaland
    27,056       190,951  
                 
              296,186  
                 
Construction & Engineering 0.1%
Veidekke ASA
    45,916       275,168  
                 
Energy Equipment & Services 0.1%
Fred Olsen Energy ASA
    6,750       173,419  
Petroleum Geo-Services ASA*
    17,096       142,501  
                 
              315,920  
                 
Internet Software & Services 0.0%†
Opera Software ASA (a)
    28,329       97,446  
                 
              1,191,213  
                 
 
 
PANAMA 0.1%
Airlines 0.1%
Copa Holdings SA, Class A
    5,400       238,788  
                 
 
 
PORTUGAL 0.2%
Commercial Banks 0.0%†
Banco BPI SA, Class G (a)
    91,743       170,759  
                 
Food & Staples Retailing 0.1%
Jeronimo Martins SGPS SA
    30,061       275,425  
                 
Paper & Forest Products 0.1%
Semapa-Sociedade de Investimento e Gestao
    54,201       483,545  
                 
              929,729  
                 
 
 
PUERTO RICO 0.0%†
Commercial Banks 0.0%†
Popular, Inc.*
    61,700       165,356  
                 
SINGAPORE 0.4%
Computers & Peripherals 0.0%†
Creative Technology Ltd. 
    18,400       55,002  
                 
Construction & Engineering 0.1%
Rotary Engineering Ltd.
    380,000       255,280  
                 
Distributors 0.1%
Jardine Cycle & Carriage Ltd.
    21,000       446,891  
                 
Industrial Conglomerates 0.1%
Hong Leong Asia Ltd.
    218,000       522,704  
                 
Machinery 0.1%
Jaya Holdings Ltd.*
    275,000       131,136  
                 
Wireless Telecommunication Services 0.0%†
MobileOne Ltd. 
    68,000       103,496  
                 
              1,514,509  
                 
 
 
SPAIN 0.3%
Diversified Financial Services 0.1%
Corporaction Financiera Alba SA
    11,797       434,595  
                 
Machinery 0.1%
Construcciones y Auxiliar de Ferrocarriles SA
    1,317       536,180  
                 
Metals & Mining 0.1%
Tubos Reunidos SA (a)
    110,820       247,727  
                 
Paper & Forest Products 0.0%†
Miquel y Costas & Miquel SA
    2,844       53,468  
                 
              1,271,970  
                 
 
 
SWEDEN 0.6%
Hotels, Restaurants & Leisure 0.1%
Betsson AB*
    40,544       462,693  
Betsson AB, Class D*
    40,544       46,798  
                 
              509,491  
                 
Metals & Mining 0.1%
Boliden AB
    47,278       522,547  
                 
Professional Services 0.1%
AF AB, Class B
    11,724       157,111  
                 
Real Estate Management & Development 0.3%
Kungsleden AB (a)
    79,605       482,002  
Wihlborgs Fastigheter AB
    36,733       695,864  
                 
              1,177,866  
                 
              2,367,015  
                 
 
 
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
SWITZERLAND 0.5%
Capital Markets 0.1%
Partners Group Holding AG
    4,579     $ 552,496  
                 
Commercial Banks 0.2%
Banque Cantonale Vaudoise REG
    1,389       571,605  
                 
Electronic Equipment, Instruments & Components 0.0%†
Inficon Holding AG REG
    257       33,123  
                 
Insurance 0.1%
Helvetia Holding AG REG
    1,295       339,878  
                 
Machinery 0.0%†
Kardex AG REG*
    113       3,402  
                 
Pharmaceuticals 0.0%†
Acino Holding AG REG
    850       81,399  
                 
Specialty Retail 0.1%
Valora Holding AG REG
    999       238,908  
                 
              1,820,811  
                 
 
 
UNITED KINGDOM 1.9%
Air Freight & Logistics 0.0%†
Wincanton PLC
    26,807       94,975  
                 
Capital Markets 0.2%
Close Brothers Group PLC
    5,028       51,760  
Tullett Prebon PLC
    121,571       570,429  
                 
              622,189  
                 
Commercial Services & Supplies 0.1%
Babcock International Group
    32,156       285,673  
Rps Group PLC
    84,079       233,996  
                 
              519,669  
                 
Construction & Engineering 0.1%
Galliford Try PLC
    9,888       46,041  
Keller Group PLC
    16,543       129,666  
Severfield — Rowen PLC
    14,207       44,734  
                 
              220,441  
                 
Diversified Telecommunication Services 0.1%
Colt Telecom Group SA*
    87,703       171,146  
Telcom Plus PLC
    18,648       93,555  
                 
              264,701  
                 
Energy Equipment & Services 0.3%
Petrofac Ltd.
    71,530       1,258,425  
                 
Food Products 0.1%
Dairy Crest Group PLC
    88,897       489,034  
                 
Hotels, Restaurants & Leisure 0.2%
Domino’s Pizza UK & IRL PLC
    61,667       348,409  
Punch Taverns PLC*
    25,080       21,490  
Restaurant Group PLC
    50,858       158,423  
Sportingbet PLC
    140,220       113,899  
                 
              642,221  
                 
Household Durables 0.0%†
Pace PLC
    83,467       200,594  
                 
Independent Power Producers & Energy Traders 0.1%
Drax Group PLC
    64,948       363,450  
                 
Industrial Conglomerates 0.0%†
Tomkins PLC
    24,746       83,114  
                 
Information Technology Services 0.1%
Computacenter PLC
    66,012       278,855  
                 
Insurance 0.0%†
Chesnara PLC
    19,794       68,021  
                 
Internet & Catalog Retail 0.1%
Home Retail Group PLC
    133,151       422,821  
                 
Media 0.0%†
St. Ives PLC
    118,086       144,233  
Yell Group PLC*
    116,480       42,229  
                 
              186,462  
                 
Multiline Retail 0.0%†
Debenhams PLC*
    78,800       61,947  
                 
Oil, Gas & Consumable Fuels 0.0%†
EnQuest plc*
    71,530       106,232  
                 
Professional Services 0.1%
ITE Group PLC
    97,390       208,924  
                 
Road & Rail 0.0%†
Go-Ahead Group PLC
    4,316       68,870  
                 
Semiconductors & Semiconductor Equipment 0.2%
ARM Holdings PLC
    166,710       689,993  
                 
Software 0.1%
Micro Focus International PLC
    56,914       357,646  
                 
Specialty Retail 0.0%†
Game Group PLC
    116,592       110,750  
Hmv Group PLC
    85,646       80,617  
                 
              191,367  
                 
Thrifts & Mortgage Finance 0.1%
Paragon Group of Cos. PLC
    124,880       223,241  
                 
              7,623,192  
                 
 
 
UNITED STATES 80.0%
Aerospace & Defense 1.0%
Aerovironment, Inc.*
    21,900       475,887  
BE Aerospace, Inc.*
    81,565       2,074,198  
DigitalGlobe, Inc.*
    22,884       601,849  
GenCorp, Inc.*
    53,300       233,454  
Innovative Solutions & Support, Inc.*
    71,475       314,490  
Teledyne Technologies, Inc.*
    11,900       459,102  
                 
              4,158,980  
                 
Airlines 0.2%
Hawaiian Holdings, Inc.*
    58,887       304,446  
SkyWest, Inc.
    39,663       484,682  
                 
              789,128  
                 
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
UNITED STATES (continued)
Auto Components 1.1%
American Axle & Manufacturing Holdings, Inc.*
    50,700     $ 371,631  
Drew Industries, Inc.*
    108,000       2,181,600  
Exide Technologies*
    98,600       512,720  
Gentex Corp.
    15,700       282,286  
Modine Manufacturing Co.*
    69,200       531,456  
Tenneco, Inc.*
    29,415       619,480  
                 
              4,499,173  
                 
Beverages 0.1%
Boston Beer Co., Inc., Class A*
    6,300       424,935  
                 
Biotechnology 0.2%
Alnylam Pharmaceuticals, Inc.*
    29,744       446,755  
United Therapeutics Corp.*
    10,500       512,505  
                 
              959,260  
                 
Building Products 0.5%
Gibraltar Industries, Inc.*
    133,040       1,343,704  
Universal Forest Products, Inc.
    16,862       511,087  
                 
              1,854,791  
                 
Capital Markets 1.8%
Capital Southwest Corp.
    2,011       176,787  
Cowen Group, Inc., Class A*
    87,920       360,472  
E*Trade Financial Corp.*
    35,818       423,369  
GLG Partners, Inc.*
    61,506       269,396  
Greenhill & Co., Inc.
    51,480       3,146,972  
Hercules Technology Growth Capital, Inc.
    96,263       886,582  
Investment Technology Group, Inc.*
    29,431       472,662  
SWS Group, Inc.
    29,963       284,649  
TradeStation Group, Inc.*
    144,476       975,213  
Waddell & Reed Financial, Inc., Class A
    16,082       351,874  
                 
              7,347,976  
                 
Chemicals 2.3%
A. Schulman, Inc.
    11,849       224,657  
Balchem Corp.
    9,100       227,500  
Innophos Holdings, Inc.
    20,800       542,464  
Intrepid Potash, Inc.*
    39,298       769,062  
Koppers Holdings, Inc.
    21,800       490,064  
Kraton Performance Polymers, Inc.*
    38,515       723,697  
LSB Industries, Inc.*
    28,585       380,467  
OM Group, Inc.*
    19,000       453,340  
Omnova Solutions, Inc.*
    60,000       468,600  
PolyOne Corp.*
    64,300       541,406  
Rockwood Holdings, Inc.*
    43,728       992,188  
RPM International, Inc.
    42,448       757,272  
Valspar Corp.
    91,200       2,746,944  
                 
              9,317,661  
                 
Commercial Banks 4.6%
Bancorp, Inc. (The)*
    113,679       890,107  
Bank of Hawaii Corp.
    2,700       130,545  
Bank of the Ozarks, Inc.
    77,460       2,747,506  
CapitalSource, Inc.
    587,846       2,798,147  
Columbia Banking System, Inc.
    29,580       540,131  
Danvers Bancorp, Inc.
    25,839       373,374  
First Citizens Bancshares, Inc., Class A
    3,916       753,164  
First Community Bancshares, Inc.
    63,163       927,865  
First Financial Bancorp
    56,363       842,627  
First Financial Bankshares, Inc.
    2,200       105,798  
First Horizon National Corp.*
    43,258       495,301  
First Midwest Bancorp, Inc.
    24,645       299,683  
Hudson Valley Holding Corp.
    10,335       238,945  
Metro Bancorp, Inc.*
    46,243       570,639  
PacWest Bancorp
    22,898       419,262  
Seacoast Banking Corp of Florida*
    48,153       64,044  
Susquehanna Bancshares, Inc.
    67,650       563,525  
SVB Financial Group*
    16,765       691,221  
Trustmark Corp.
    17,615       366,744  
UMB Financial Corp.
    13,565       482,371  
Univest Corp of Pennsylvania
    42,010       727,613  
Westamerica Bancorp
    6,100       320,372  
Whitney Holding Corp.
    33,621       310,994  
Wintrust Financial Corp.
    84,910       2,830,899  
                 
              18,490,877  
                 
Commercial Services & Supplies 1.3%
ATC Technology Corp.*
    31,216       503,202  
Clean Harbors, Inc.*
    12,567       834,574  
Covanta Holding Corp.*
    53,370       885,408  
Deluxe Corp.
    37,300       699,375  
Ennis, Inc.
    16,500       247,665  
Healthcare Services Group, Inc.
    18,300       346,785  
Rollins, Inc.
    29,050       601,045  
Schawk, Inc.
    37,637       562,673  
Waste Connections, Inc.*
    14,930       520,908  
                 
              5,201,635  
                 
Communications Equipment 2.0%
Arris Group, Inc.*
    52,315       533,090  
Comtech Telecommunications Corp.*
    19,900       595,607  
Netgear, Inc.*
    22,200       396,048  
Oplink Communications, Inc.*
    72,707       1,041,891  
Polycom, Inc.*
    46,800       1,394,172  
Riverbed Technology, Inc.*
    37,950       1,048,179  
Tellabs, Inc.
    446,515       2,853,231  
                 
              7,862,218  
                 
Computers & Peripherals 0.3%
BancTec, Inc.* (c)
    36,134       198,737  
Quantum Corp.*
    235,800       443,304  
Stratasys, Inc.*
    30,300       744,168  
                 
              1,386,209  
                 
Construction & Engineering 0.2%
EMCOR Group, Inc.*
    26,100       604,737  
Layne Christensen Co.*
    10,700       259,689  
                 
              864,426  
                 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
UNITED STATES (continued)
Construction Materials 0.6%
Eagle Materials, Inc.
    59,394     $ 1,540,086  
Texas Industries, Inc.
    25,805       762,280  
                 
              2,302,366  
                 
Containers & Packaging 0.5%
AptarGroup, Inc.
    24,300       919,026  
Rock-Tenn Co., Class A
    11,682       580,245  
Silgan Holdings, Inc.
    19,158       543,704  
                 
              2,042,975  
                 
Distributors 0.5%
LKQ Corp.*
    103,412       1,993,783  
                 
Diversified Consumer Services 1.5%
American Public Education, Inc.*
    6,900       301,530  
Capella Education Co.*
    28,900       2,351,015  
Career Education Corp.*
    23,415       539,013  
Grand Canyon Education, Inc.*
    16,100       377,223  
Hillenbrand, Inc.
    7,500       160,425  
Lincoln Educational Services Corp.*
    22,798       469,411  
Matthews International Corp., Class A
    14,800       433,344  
Strayer Education, Inc.
    7,291       1,515,726  
                 
              6,147,687  
                 
Diversified Financial Services 1.2%
MSCI, Inc., Class A*
    69,019       1,891,121  
NewStar Financial, Inc.*
    95,100       604,836  
Pico Holdings, Inc.*
    33,348       999,439  
Portfolio Recovery Associates, Inc.*
    21,100       1,409,058  
                 
              4,904,454  
                 
Diversified Telecommunication Services 0.1%
Cogent Communications Group, Inc.*
    70,685       535,792  
                 
Electric Utilities 0.8%
Brookfield Infrastructure Partners LP
    40,624       644,703  
Great Plains Energy, Inc.
    40,029       681,294  
UIL Holdings Corp.
    23,197       580,621  
Unisource Energy Corp.
    45,914       1,385,684  
                 
              3,292,302  
                 
Electrical Equipment 0.6%
EnerSys*
    28,982       619,345  
General Cable Corp.*
    63,100       1,681,615  
                 
              2,300,960  
                 
Electronic Equipment, Instruments & Components 1.3%
Cogent, Inc.*
    73,396       661,298  
DTS, Inc.*
    26,150       859,551  
Electro Scientific Industries, Inc.*
    51,600       689,376  
Littelfuse, Inc.*
    40,600       1,283,366  
Rofin-Sinar Technologies, Inc.*
    10,900       226,938  
Smart Modular Technologies (WWH), Inc.*
    93,738       548,367  
Trimble Navigation Ltd.*
    17,900       501,200  
TTM Technologies, Inc.*
    51,486       489,117  
                 
              5,259,213  
                 
Energy Equipment & Services 2.4%
CARBO Ceramics, Inc.
    13,450       970,956  
Dresser-Rand Group, Inc.*
    38,300       1,208,365  
Dril-Quip, Inc.*
    24,100       1,060,882  
Helix Energy Solutions Group, Inc.*
    39,600       426,492  
Lufkin Industries, Inc.
    7,400       288,526  
Natural Gas Services Group, Inc.*
    69,700       1,054,561  
Oceaneering International, Inc.*
    10,900       489,410  
Pioneer Drilling Co.*
    87,648       496,964  
Superior Well Services, Inc.*
    39,042       652,782  
TETRA Technologies, Inc.*
    57,600       523,008  
Tidewater, Inc.
    61,145       2,367,534  
                 
              9,539,480  
                 
Food & Staples Retailing 0.6%
Ruddick Corp.
    38,098       1,180,657  
Spartan Stores, Inc.
    42,197       578,943  
Weis Markets, Inc.
    18,882       621,407  
                 
              2,381,007  
                 
Food Products 0.5%
Darling International, Inc.*
    31,900       239,569  
Flowers Foods, Inc.
    6,900       168,567  
J&J Snack Foods Corp.
    5,483       230,834  
Lancaster Colony Corp.
    4,100       218,776  
Smithfield Foods, Inc.*
    89,310       1,330,719  
                 
              2,188,465  
                 
Gas Utilities 0.9%
Energen Corp.
    22,898       1,015,068  
New Jersey Resources Corp.
    12,150       427,680  
Northwest Natural Gas Co.
    2,500       108,925  
South Jersey Industries, Inc.
    12,000       515,520  
Southwest Gas Corp.
    53,047       1,564,887  
                 
              3,632,080  
                 
Health Care Equipment & Supplies 3.2%
Abaxis, Inc.*
    27,000       578,610  
American Medical Systems Holdings, Inc.*
    34,000       752,080  
Cutera, Inc.*
    58,797       541,521  
Gen-Probe, Inc.*
    25,203       1,144,720  
Haemonetics Corp.*
    14,900       797,448  
Hill-Rom Holdings, Inc.
    53,100       1,615,833  
IDEXX Laboratories, Inc.*
    4,504       274,294  
Immucor, Inc.*
    19,900       379,095  
Inverness Medical Innovations, Inc.*
    18,570       495,076  
Masimo Corp.
    26,700       635,727  
Meridian Bioscience, Inc.
    24,700       419,900  
NuVasive, Inc.*
    53,300       1,890,018  
Palomar Medical Technologies, Inc.*
    50,021       559,735  
Sirona Dental Systems, Inc.*
    12,400       432,016  
SurModics, Inc.*
    8,400       137,844  
Teleflex, Inc.
    10,840       588,395  
Volcano Corp.*
    49,800       1,086,636  
West Pharmaceutical Services, Inc.
    4,600       167,854  
Wright Medical Group, Inc.*
    20,100       333,861  
                 
              12,830,663  
                 
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
UNITED STATES (continued)
Health Care Providers & Services 2.4%
Addus HomeCare Corp.*
    39,357     $ 235,748  
Amedisys, Inc.*
    11,240       494,223  
Amsurg Corp.*
    38,834       692,022  
Health Management Associates, Inc., Class A*
    75,960       590,209  
Healthways, Inc.*
    44,300       528,056  
HMS Holdings Corp.*
    9,450       512,379  
Landauer, Inc.
    4,900       298,312  
LHC Group, Inc.*
    56,140       1,557,885  
Lincare Holdings, Inc.*
    19,197       624,095  
MWI Veterinary Supply, Inc.*
    19,300       970,018  
Providence Service Corp. (The)*
    37,400       523,600  
PSS World Medical, Inc.*
    4,400       93,060  
Sun Healthcare Group, Inc.*
    123,200       995,456  
VCA Antech, Inc.*
    55,101       1,364,301  
                 
              9,479,364  
                 
Health Care Technology 0.9%
athenahealth, Inc.*
    55,770       1,457,270  
MedAssets, Inc.*
    33,665       776,988  
Omnicell, Inc.*
    41,600       486,304  
Quality Systems, Inc.
    5,400       313,146  
Vital Images, Inc.*
    33,400       425,850  
                 
              3,459,558  
                 
Hotels, Restaurants & Leisure 3.0%
Ambassadors Group, Inc.
    44,537       502,823  
BJ’s Restaurants, Inc.*
    45,454       1,072,714  
DineEquity, Inc.*
    13,400       374,128  
Domino’s Pizza, Inc.*
    60,326       681,684  
Gaylord Entertainment Co.*
    43,735       966,106  
Lakes Entertainment, Inc.*
    71,676       109,664  
P. F. Chang’s China Bistro, Inc.
    85,728       3,399,115  
Penn National Gaming, Inc.*
    59,930       1,384,383  
Scientific Games Corp., Class A*
    49,200       452,640  
Vail Resorts, Inc.*
    53,772       1,877,181  
WMS Industries, Inc.*
    28,400       1,114,700  
                 
              11,935,138  
                 
Household Durables 0.8%
American Greetings Corp., Class A
    31,561       592,084  
Ethan Allen Interiors, Inc.
    94,000       1,315,060  
iRobot Corp.*
    30,664       576,177  
M/I Homes, Inc.*
    37,025       356,921  
Newell Rubbermaid, Inc.
    25,264       369,865  
                 
              3,210,107  
                 
Household Products 0.2%
Church & Dwight Co., Inc.
    10,100       633,371  
                 
Industrial Conglomerates 0.1%
Raven Industries, Inc.
    10,937       368,686  
                 
Information Technology Services 1.1%
Alliance Data Systems Corp.*
    19,932       1,186,352  
CSG Systems International, Inc.*
    33,181       608,208  
Forrester Research, Inc.*
    57,465       1,738,891  
infoGROUP, Inc.*
    5,901       47,090  
Information Services Group, Inc.*
    103,526       207,052  
Mantech International Corp., Class A*
    11,900       506,583  
NCI, Inc., Class A*
    13,400       302,572  
                 
              4,596,748  
                 
Insurance 2.6%
American Equity Investment Life Holding Co.
    57,167       589,963  
AMERISAFE, Inc.*
    102,720       1,802,736  
Employers Holdings, Inc.
    39,195       577,342  
Hanover Insurance Group, Inc. (The)
    92,161       4,009,004  
Harleysville Group, Inc.
    14,800       459,244  
HCC Insurance Holdings, Inc.
    28,498       705,611  
Infinity Property & Casualty Corp.
    17,682       816,555  
Reinsurance Group of America, Inc.
    12,865       588,059  
RLI Corp.
    8,400       441,084  
Safety Insurance Group, Inc.
    13,100       484,962  
                 
              10,474,560  
                 
Internet 0.2%
Ning, Inc.* (b)
    63,095       367,213  
Twitter, Inc.* (b)
    21,064       336,651  
                 
              703,864  
                 
Internet & Catalog Retail 1.0%
Blue Nile, Inc.*
    46,856       2,205,980  
NutriSystem, Inc.
    68,158       1,563,545  
PetMed Express, Inc.
    11,700       208,260  
                 
              3,977,785  
                 
Internet Software & Services 2.1%
Archipelago Learning, Inc.*
    45,350       518,350  
comScore, Inc.*
    19,037       313,539  
Constant Contact, Inc.*
    34,800       742,284  
DealerTrack Holdings, Inc.*
    88,700       1,459,115  
EarthLink, Inc.
    69,828       555,831  
GSI Commerce, Inc.*
    44,727       1,288,138  
InfoSpace, Inc.*
    3,653       27,471  
Market Leader, Inc.*
    46,645       91,891  
OpenTable, Inc.*
    40,645       1,685,548  
Stamps.com, Inc.*
    43,164       442,431  
United Online, Inc.
    73,577       423,803  
Vocus, Inc.*
    18,050       275,804  
Web.com Group, Inc.*
    119,054       427,404  
                 
              8,251,609  
                 
Leisure Equipment & Products 0.1%
Polaris Industries, Inc.
    4,100       223,942  
RC2 Corp.*
    22,465       361,911  
                 
              585,853  
                 
Life Sciences Tools & Services 0.8%
Charles River Laboratories International, Inc.*
    7,000       239,470  
Dionex Corp.*
    10,400       774,384  
Techne Corp.
    40,929       2,351,371  
                 
              3,365,225  
                 
 
 
 
2010 Semiannual Report 13

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
UNITED STATES (continued)
Machinery 5.0%
ArvinMeritor, Inc.*
    48,700     $ 637,970  
Astec Industries, Inc.*
    7,800       216,294  
Badger Meter, Inc.
    17,000       657,730  
Bucyrus International, Inc.
    9,000       427,050  
Cascade Corp.
    15,117       538,316  
Chart Industries, Inc.*
    9,700       151,126  
Clarcor, Inc.
    26,600       944,832  
Douglas Dynamics, Inc.*
    45,583       524,205  
Dynamic Materials Corp.
    67,947       1,089,870  
EnPro Industries, Inc.*
    21,782       613,163  
FreightCar America, Inc.
    96,070       2,173,104  
Graco, Inc.
    43,400       1,223,446  
Harsco Corp.
    64,270       1,510,345  
Kennametal, Inc.
    67,036       1,704,726  
Lincoln Electric Holdings, Inc.
    2,100       107,079  
Lindsay Corp.
    6,300       199,647  
Nordson Corp.
    8,141       456,547  
Robbins & Myers, Inc.
    9,100       197,834  
Terex Corp.*
    87,237       1,634,821  
Titan International, Inc.
    58,563       583,873  
Toro Co.
    4,711       231,404  
Valmont Industries, Inc.
    5,300       385,098  
Wabtec Corp.
    98,890       3,944,722  
                 
              20,153,202  
                 
Media 0.4%
CKX, Inc.*
    48,738       243,203  
McClatchy Co. (The), Class A*
    104,700       381,108  
Morningstar, Inc.*
    22,002       935,525  
                 
              1,559,836  
                 
Medical Labs & Testing 0.1%
Pacific Biosciences of California Inc.* (b)
    51,877       395,822  
                 
Metals & Mining 1.2%
AK Steel Holding Corp.
    121,700       1,450,664  
Compass Minerals International, Inc.
    42,000       2,951,760  
Horsehead Holding Corp.*
    51,130       386,543  
                 
              4,788,967  
                 
Multi-Utilities 0.5%
Avista Corp.
    53,547       1,045,773  
CMS Energy Corp.
    56,470       827,285  
                 
              1,873,058  
                 
Office Electronics 0.1%
Zebra Technologies Corp., Class A*
    15,947       404,575  
                 
Oil, Gas & Consumable Fuels 3.0%
Approach Resources, Inc.*
    120,393       828,304  
Atlas Energy, Inc.*
    41,481       1,122,891  
Berry Petroleum Co., Class A
    68,390       1,758,991  
Bill Barrett Corp.*
    10,100       310,777  
Brigham Exploration Co.*
    67,000       1,030,460  
Carrizo Oil & Gas, Inc.*
    5,500       85,415  
Comstock Resources, Inc.*
    8,600       238,392  
Concho Resources, Inc.*
    11,600       641,828  
GMX Resources, Inc.*
    47,909       310,929  
James River Coal Co.*
    30,415       484,207  
Penn Virginia Corp.
    15,682       315,365  
PetroQuest Energy, Inc.*
    37,765       255,291  
Resolute Energy Corp.*
    23,800       291,312  
Rex Energy Corp.*
    35,070       354,207  
Rosetta Resources, Inc.*
    38,700       766,647  
Scorpio Tankers, Inc.*
    42,500       486,625  
SM Energy Co.
    22,115       888,138  
Whiting Petroleum Corp.*
    21,790       1,708,772  
                 
              11,878,551  
                 
Paper & Forest Products 0.2%
Buckeye Technologies, Inc.*
    49,000       487,550  
Louisiana-Pacific Corp.*
    67,823       453,736  
                 
              941,286  
                 
Personal Products 0.5%
Alberto-Culver Co.
    78,800       2,134,692  
                 
Pharmaceuticals 1.0%
Ironwood Pharmaceuticals* (b)
    93,487       1,076,970  
Jazz Pharmaceuticals, Inc.*
    67,055       525,041  
Questcor Pharmaceuticals, Inc.*
    72,300       738,183  
ViroPharma, Inc.*
    134,879       1,511,994  
                 
              3,852,188  
                 
Professional Services 1.6%
Advisory Board Co. (The)*
    48,710       2,092,582  
Corporate Executive Board Co. (The)
    16,295       428,070  
CoStar Group, Inc.*
    65,534       2,542,719  
Exponent, Inc.*
    29,300       958,696  
School Specialty, Inc.*
    22,221       401,533  
                 
              6,423,600  
                 
Real Estate Investment Trusts (REITs) 2.4%
Apartment Investment & Management Co., Class A
    23,700       459,069  
Chimera Investment Corp.
    217,689       785,857  
Colony Financial, Inc.
    28,261       477,611  
DCT Industrial Trust, Inc.
    89,212       403,238  
Digital Realty Trust, Inc.
    5,732       330,622  
Essex Property Trust, Inc.
    3,132       305,495  
Glimcher Realty Trust
    28,726       171,781  
Government Properties Income Trust
    23,800       607,376  
Healthcare Realty Trust, Inc.
    52,330       1,149,690  
LaSalle Hotel Properties
    17,498       359,934  
Macerich Co. (The)
    19,701       735,241  
MFA Financial, Inc.
    53,517       396,026  
National Health Investors, Inc.
    21,115       814,194  
National Retail Properties, Inc.
    9,449       202,587  
One Liberty Properties, Inc.
    22,092       329,392  
PS Business Parks, Inc.
    9,200       513,176  
Retail Opportunity Investments Corp.
    55,547       536,029  
Tanger Factory Outlet Centers
    6,432       266,156  
Taubman Centers, Inc.
    10,049       378,144  
Winthrop Realty Trust
    22,152       283,767  
                 
              9,505,385  
                 
 
 
 
14 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
UNITED STATES (continued)
Real Estate Management & Development 0.7%
Consolidated-Tomoka Land Co.
    5,755     $ 164,018  
Hudson Pacific Properties, Inc.*
    12,985       223,991  
Jones Lang LaSalle, Inc.
    36,250       2,379,450  
                 
              2,767,459  
                 
Road & Rail 1.3%
Con-way, Inc.
    32,400       972,648  
J.B. Hunt Transport Services, Inc.
    31,200       1,019,304  
Kansas City Southern*
    73,100       2,657,185  
Knight Transportation, Inc.
    13,000       263,120  
RailAmerica, Inc.*
    25,381       251,780  
                 
              5,164,037  
                 
Semiconductors & Semiconductor Equipment 1.8%
Atmel Corp.*
    149,340       716,832  
Cirrus Logic, Inc.*
    26,928       425,731  
Cymer, Inc.*
    21,298       639,792  
MIPS Technologies, Inc.*
    141,600       723,576  
Semtech Corp.*
    50,400       825,048  
Teradyne, Inc.*
    222,000       2,164,500  
Tessera Technologies, Inc.*
    59,094       948,459  
Ultra Clean Holdings, Inc.*
    104,194       887,733  
                 
              7,331,671  
                 
Software 4.9%
Advent Software, Inc.*
    20,175       947,418  
Blackbaud, Inc.
    57,350       1,248,510  
Blackboard, Inc.*
    34,611       1,292,029  
CommVault Systems, Inc.*
    57,800       1,300,500  
Concur Technologies, Inc.*
    35,218       1,503,104  
EPIQ Systems, Inc.*
    34,180       441,947  
FactSet Research Systems, Inc.
    24,400       1,634,556  
Jack Henry & Associates, Inc.
    7,400       176,712  
MICROS Systems, Inc.*
    115,843       3,691,916  
NetSuite, Inc.*
    19,487       246,316  
Rosetta Stone, Inc.*
    31,033       712,518  
Smith Micro Software, Inc.*
    68,100       647,631  
SolarWinds, Inc.*
    30,200       484,408  
Solera Holdings, Inc.
    121,353       4,392,979  
TeleCommunication Systems, Inc., Class A*
    115,100       476,514  
TeleNav, Inc.*
    61,011       511,882  
                 
              19,708,940  
                 
Specialty Retail 3.6%
Aaron’s, Inc.
    38,450       656,341  
Charming Shoppes, Inc.*
    105,800       396,750  
Citi Trends, Inc.*
    29,954       986,685  
Dress Barn, Inc.*
    26,281       625,751  
Express, Inc.*
    29,448       482,064  
Haverty Furniture Cos., Inc.
    14,100       173,289  
Hibbett Sports, Inc.*
    14,200       340,232  
Jos. A. Bank Clothiers, Inc.*
    14,282       771,085  
Lithia Motors, Inc., Class A
    49,500       305,910  
Monro Muffler Brake, Inc.
    52,900       2,091,137  
OfficeMax, Inc.*
    35,563       464,453  
O’Reilly Automotive, Inc.*
    36,530       1,737,367  
Pier 1 Imports, Inc.*
    56,300       360,883  
Sally Beauty Holdings, Inc.*
    28,000       229,600  
Stage Stores, Inc.
    43,697       466,684  
Talbots, Inc.*
    62,388       643,220  
Tractor Supply Co.
    40,260       2,454,652  
Zumiez, Inc.*
    86,452       1,392,742  
                 
              14,578,845  
                 
Textiles, Apparel & Luxury Goods 1.8%
Carter’s, Inc.*
    22,824       599,130  
Columbia Sportswear Co.
    10,200       476,034  
Iconix Brand Group, Inc.*
    43,997       632,237  
Kenneth Cole Productions, Inc., Class A*
    41,087       452,368  
Phillips-Van Heusen Corp.
    66,242       3,065,017  
Steven Madden Ltd.*
    15,627       492,563  
Under Armour, Inc., Class A*
    43,400       1,437,842  
                 
              7,155,191  
                 
Thrifts & Mortgage Finance 2.3%
Brookline Bancorp, Inc.
    88,500       785,880  
Dime Community Bancshares
    22,750       280,507  
ESSA Bancorp, Inc.
    48,015       591,065  
MGIC Investment Corp.*
    48,714       335,639  
Ocwen Financial Corp.*
    220,930       2,251,277  
Oritani Financial Corp.
    76,892       768,925  
United Financial Bancorp, Inc.
    34,664       473,164  
Washington Federal, Inc.
    126,035       2,039,246  
Westfield Financial, Inc.
    201,670       1,679,911  
                 
              9,205,614  
                 
Trading Companies & Distributors 1.4%
Aceto Corp.
    154,165       883,366  
Applied Industrial Technologies, Inc.
    21,298       539,265  
Beacon Roofing Supply, Inc.*
    130,470       2,351,069  
DXP Enterprises, Inc.*
    41,748       653,356  
H&E Equipment Services, Inc.*
    56,014       419,545  
Rush Enterprises, Inc., Class A*
    57,900       773,544  
                 
              5,620,145  
                 
Water Utilities 0.1%
American States Water Co.
    12,700       420,878  
                 
Wireless Telecommunication Services 0.5%
NTELOS Holdings Corp.
    40,081       689,393  
Shenandoah Telecommunications Co.
    80,900       1,435,166  
                 
              2,124,559  
                 
              321,538,865  
                 
 
 
VIRGIN ISLANDS, BRITISH 0.3%
Air Freight & Logistics 0.3%
UTi Worldwide, Inc.
    112,790       1,396,340  
                 
         
Total Common Stocks (cost $378,857,885)
    392,331,751  
         
 
 
 
2010 Semiannual Report 15

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Company Fund (Continued)
 
                 
                 
                 
Preferred Stocks 0.3%
                 
      Shares       Market
Value 		 
 
 
GERMANY 0.1%
Biotechnology 0.0%†
Biotest AG (Preference)
    3,974     $ 164,886  
                 
Media 0.1%
ProSiebenSat.1 Media AG
    21,650       316,938  
                 
              481,824  
                 
 
 
UNITED STATES 0.2%
Consumer Finance 0.0%†
Xoom Corporation* (b)
    96,245       192,490  
                 
Electrical Equipment 0.1%
Better Place* (b)
    108,194       324,582  
                 
Health Care Technology 0.1%
Castlight Health, Inc* (b)
    65,959       271,165  
                 
              788,237  
                 
         
Total Preferred Stocks (cost $1,216,062)
    1,270,061  
         
Exchange Traded Funds 0.4%
                 
                 
AUSTRALIA 0.1%
Multi-Utilities 0.0%†
Hastings Diversified Utilities Fund
    2,237       2,379  
                 
Transportation Infrastructure 0.1%
Australian Infrastructure Fund
    341,810       483,208  
                 
              485,587  
                 
 
 
UNITED STATES 0.3%
Mutual Funds 0.3%
iShares Russell 2000 Growth Index Fund
    18,600       1,238,388  
                 
         
Total Exchange Traded Funds (cost $2,152,533)
    1,723,975  
         
                 
                 
Mutual Funds 1.7%
                 
                 
Investment Company Fund 0.0%†
Macquarie International Infrastructure Fund Ltd. 
    338,000       116,529  
 
                 
                 
 
Money Market Fund 1.7%
 
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (d)
    6,722,454       6,722,454  
                 
         
Total Mutual Funds (cost $6,970,293)
    6,838,983  
         
                 
                 
Repurchase Agreements 0.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Morgan Stanley, 0.03%, dated 6/30/10, due 7/01/10, repurchase price $247,367, collateralized by U.S. Government Agency Mortgages 4.00%-8.50%, maturing 03/01/15-06/01/40; total market value of $252,323. (e)
  $ 247,367       247,367  
Barclays Capital, 0.01%, dated 6/30/10, due 7/01/10, repurchase price $3,000,001, collateralized by U.S. Government Agency Mortgage Securities 1.88%, maturing 06/30/15; total market value of $3,060,000. (e)
    3,000,000       3,000,000  
                 
         
Total Repurchase Agreements (cost $3,247,367)
    3,247,367  
         
         
Total Investments (cost $392,444,140) (f) — 100.8%
    405,412,137  
         
Liabilities in excess of other assets — (0.8)%
    (3,312,549 )
         
         
NET ASSETS — 100.0%
  $ 402,099,588  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $3,090,551.
 
(b) Fair Valued Security.
 
(c) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $198,737 which represents 0.05% of net assets.
 
(d) Represents 7-day effective yield as of June 30, 2010.
 
(e) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $3,247,367.
 
(f) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
AS Stock Corporation
 
ASA Stock Corporation
 
BR Brazil
 
CN China
 
 
 
16 Semiannual Report 2010

 

 
 
 
IE Ireland
 
KK Joint Stock Company
 
LP Limited Partnership
 
Ltd. Limited
 
MX Mexico
 
NV Public Traded Company
 
OYJ Public Traded Company
 
PLC Public Limited Company
 
REG Registered Shares
 
REIT Real Estate Investment Trust
 
RSP Savings Shares
 
SA Stock Company
 
SAB de CV Public Traded Company
 
SCA Limited partnership with share capital
 
SGPS Holding Enterprise
 
SpA Limited Share Company
 
UK United Kingdom
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 17

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
    Small Company Fund  
       
Assets:
         
Investments, at value* (cost $389,196,773)
    $ 402,164,770  
Repurchase agreements, at value and cost
      3,247,367  
           
Total Investments
      405,412,137  
           
Foreign currencies, at value (cost $72,050)
      72,050  
Dividends receivable
      300,581  
Security lending income receivable
      4,995  
Receivable for investments sold
      1,219,603  
Receivable for capital shares issued
      120,366  
Reclaims receivable
      86,606  
Prepaid expenses and other assets
      4,280  
           
Total Assets
      407,220,618  
           
Liabilities:
         
Payable for investments purchased
      592,668  
Payable for capital shares redeemed
      493,306  
Cash overdraft (Note 2)
      292,209  
Payable upon return of securities loaned (Note 2)
      3,247,367  
Accrued expenses and other payables:
         
Investment advisory fees
      330,172  
Fund administration fees
      18,037  
Distribution fees
      9,513  
Administrative servicing fees
      54,855  
Accounting and transfer agent fees
      26,417  
Trustee fees
      135  
Custodian fees
      3,003  
Compliance program costs (Note 3)
      2,181  
Professional fees
      19,025  
Printing fees
      30,380  
Other
      1,762  
           
Total Liabilities
      5,121,030  
           
Net Assets
    $ 402,099,588  
           
Represented by:
         
Capital
    $ 518,673,813  
Accumulated undistributed net investment income
      334,809  
Accumulated net realized losses from investment and foreign currency transactions
      (129,896,133 )
Net unrealized appreciation/(depreciation) from investments
      12,967,997  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      19,102  
           
Net Assets
    $ 402,099,588  
           
 
*  Includes value of securities on loan of $3,090,551 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
18 Semiannual Report 2010

 

 
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
    Small Company Fund  
       
Net Assets:
         
Class I Shares
    $ 313,963,876  
Class II Shares
      43,754,173  
Class III Shares
      2,189,782  
Class IV Shares
      20,200,073  
Class Y Shares
      21,991,684  
           
Total
    $ 402,099,588  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      22,477,782  
Class II Shares
      3,204,285  
Class III Shares
      156,379  
Class IV Shares
      1,446,582  
Class Y Shares
      1,574,201  
           
Total
      28,859,229  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 13.97  
Class II Shares
    $ 13.65  
Class III Shares
    $ 14.00  
Class IV Shares
    $ 13.96  
Class Y Shares
    $ 13.97  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 19

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
    Small Company Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 2,947,249  
Income from securities lending (Note 2)
      68,547  
Foreign tax withholding
      (98,382 )
           
Total Income
      2,917,414  
           
EXPENSES:
         
Investment advisory fees
      2,052,686  
           
Fund administration fees
      79,492  
Distribution fees Class II Shares
      60,991  
Administrative servicing fees Class I Shares
      260,506  
Administrative servicing fees Class II Shares
      36,595  
Administrative servicing fees Class III Shares
      1,768  
Administrative servicing fees Class IV Shares
      16,828  
Professional fees
      26,133  
Printing fees
      37,405  
Trustee fees
      7,958  
Custodian fees
      15,138  
Accounting and transfer agent fees
      17,390  
Compliance program costs (Note 3)
      847  
Other
      9,881  
           
Total expenses before earnings credits
      2,623,618  
Earnings credit (Note 5)
      (56 )
           
Net Expenses
      2,623,562  
           
NET INVESTMENT INCOME
      293,852  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      21,590,241  
Net realized losses from foreign currency transactions (Note 2)
      (29,549 )
           
Net realized gains from investment and foreign currency transactions
      21,560,692  
           
Net change in unrealized appreciation/(depreciation) from investments
      (34,365,696 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      14,989  
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (34,350,707 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (12,790,015 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (12,496,163 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
20 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager
 		 
      Small Company Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 293,852       $ 1,379,008  
Net realized gains/(losses) from investment and foreign currency transactions
      21,560,692         (48,902,608 )
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (34,350,707 )       163,469,596  
                     
Change in net assets resulting from operations
      (12,496,163 )       115,945,996  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (406,694 )       (843,536 )
Class II
      (1,933 )       (66,463 )
Class III
      (2,700 )       (4,381 )
Class IV
      (26,089 )       (56,449 )
Class Y
      (42,252 )       (30,514 )
                     
Change in net assets from shareholder distributions
      (479,668 )       (1,001,343 )
                     
Change in net assets from capital transactions
      (28,461,925 )       (77,849,419 )
                     
Change in net assets
      (41,437,756 )       37,095,234  
                     
                     
Net Assets:
                   
Beginning of period
      443,537,344         406,442,110  
                     
End of period
    $ 402,099,588       $ 443,537,344  
                     
Accumulated undistributed net investment income at end of period
    $ 334,809       $ 520,625  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 7,141,037       $ 15,803,118  
Dividends reinvested
      406,694         843,536  
Cost of shares redeemed
      (35,914,398 )       (69,902,956 )
                     
Total Class I
      (28,366,667 )       (53,256,302 )
                     
Class II Shares
                   
Proceeds from shares issued
      2,112,093         4,103,871  
Dividends reinvested
      1,933         66,463  
Cost of shares redeemed
      (5,596,812 )       (33,711,441 )
                     
Total Class II
      (3,482,786 )       (29,541,107 )
                     
Class III Shares
                   
Proceeds from shares issued
      759,859         1,429,934  
Dividends reinvested
      2,700         4,381  
Cost of shares redeemed
      (978,152 )       (933,071 )
                     
Total Class III
      (215,593 )       501,244  
                     
Class IV Shares
                   
Proceeds from shares issued
      384,285         1,032,136  
Dividends reinvested
      26,089         56,449  
Cost of shares redeemed
      (2,589,834 )       (4,793,235 )
                     
Total Class IV
      (2,179,460 )       (3,704,650 )
                     
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 21

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Multi-Manager
 		 
      Small Company Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
CAPITAL TRANSACTIONS: (continued)
                   
Class Y Shares
                   
Proceeds from shares issued
    $ 5,958,547       $ 10,233,882  
Dividends reinvested
      42,252         30,514  
Cost of shares redeemed
      (218,218 )       (2,113,000 )
                     
Total Class Y
      5,782,581         8,151,396  
                     
Change in net assets from capital transactions
    $ (28,461,925 )     $ (77,849,419 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      478,577         1,373,186  
Reinvested
      26,810         81,973  
Redeemed
      (2,403,622 )       (6,087,139 )
                     
Total Class I Shares
      (1,898,235 )       (4,631,980 )
                     
Class II Shares
                   
Issued
      145,743         364,397  
Reinvested
      132         6,595  
Redeemed
      (384,905 )       (3,303,633 )
                     
Total Class II Shares
      (239,030 )       (2,932,641 )
                     
Class III Shares
                   
Issued
      48,711         111,901  
Reinvested
      178         423  
Redeemed
      (66,712 )       (76,549 )
                     
Total Class III Shares
      (17,823 )       35,775  
                     
Class IV Shares
                   
Issued
      25,531         88,036  
Reinvested
      1,720         5,492  
Redeemed
      (173,981 )       (406,764 )
                     
Total Class IV Shares
      (146,730 )       (313,236 )
                     
Class Y Shares
                   
Issued
      398,023         876,672  
Reinvested
      2,787         2,923  
Redeemed
      (14,938 )       (164,035 )
                     
Total Class Y Shares
      385,872         715,560  
                     
Total change in shares
      (1,915,946 )       (7,126,522 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
22 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Small Company Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                     
                and
 		                                                    Ratio of Net
 		    Ratio of
 		         
                Unrealized
 		                                                    Investment
 		    Expenses
 		         
    Net Asset
 		    Net
 		    Gains
 		                                              Ratio of
 		    Income
 		    (Prior to
 		         
    Value,
 		    Investment
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    (Loss)
 		    Reimbursements)
 		         
    Beginning
 		    Income
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     (Loss)     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .45       0 .01       (0 .47)       (0 .46)       (0 .02)       –          (0 .02)     $ 13 .97       (3 .21%)     $ 313,963,876         1 .17%       0 .15%       1 .17%       47 .22%    
Year Ended December 31, 2009 (e)
  $ 10 .76       0 .04       3 .68       3 .72       (0 .03)       –          (0 .03)     $ 14 .45       34 .70%     $ 352,187,874         1 .19%       0 .38%       1 .19%(f)       77 .10%    
Year Ended December 31, 2008
  $ 22 .21       0 .14       (7 .45)       (7 .31)       (0 .14)       (4 .00)       (4 .14)     $ 10 .76       (38 .19%)     $ 312,192,179         1 .19%       0 .85%       1 .19%(f)       113 .50%    
Year Ended December 31, 2007
  $ 24 .99       0 .06       0 .67       0 .73       (0 .02)       (3 .49)       (3 .51)     $ 22 .21       2 .13%     $ 628,302,006         1 .19%       0 .24%       1 .19%(f)       115 .83%    
Year Ended December 31, 2006
  $ 22 .78       0 .03       2 .67       2 .70       (0 .03)       (0 .46)       (0 .49)     $ 24 .99       12 .04%     $ 749,047,903         1 .19%       0 .11%       1 .19%(f)       104 .59%    
Year Ended December 31, 2005
  $ 22 .96       (0 .03)       2 .84       2 .81       –          (2 .99)       (2 .99)     $ 22 .78       12 .32%     $ 831,778,341         1 .20%       (0 .12%)       1 .20%(f)       128 .34%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .13       (0 .01)       (0 .47)       (0 .48)       –          –          –        $ 13 .65       (3 .39%)     $ 43,754,173         1 .42%       (0 .10%)       1 .42%       47 .22%    
Year Ended December 31, 2009 (e)
  $ 10 .53       0 .02       3 .60       3 .62       (0 .02)       –          (0 .02)     $ 14 .13       34 .43%     $ 48,640,531         1 .44%       0 .18%       1 .44%(f)       77 .10%    
Year Ended December 31, 2008
  $ 21 .84       0 .09       (7 .30)       (7 .21)       (0 .10)       (4 .00)       (4 .10)     $ 10 .53       (38 .35%)     $ 67,160,569         1 .45%       0 .57%       1 .45%(f)       113 .50%    
Year Ended December 31, 2007
  $ 24 .66       –          0 .67       0 .67       –          (3 .49)       (3 .49)     $ 21 .84       1 .89%     $ 110,373,399         1 .42%       0 .01%       1 .42%(f)       115 .83%    
Year Ended December 31, 2006
  $ 22 .53       (0 .03)       2 .63       2 .60       (0 .01)       (0 .46)       (0 .47)     $ 24 .66       11 .75%     $ 106,813,380         1 .45%       (0 .12%)       1 .45%(f)       104 .59%    
Year Ended December 31, 2005
  $ 22 .80       (0 .07)       2 .79       2 .72       –          (2 .99)       (2 .99)     $ 22 .53       12 .01%     $ 74,165,283         1 .45%       (0 .37%)       1 .45%(f)       128 .34%    
                                                                                                                                               
Class III Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .48       0 .01       (0 .47)       (0 .46)       (0 .02)       –          (0 .02)     $ 14 .00       (3 .20%)     $ 2,189,782         1 .17%       0 .15%       1 .17%       47 .22%    
Year Ended December 31, 2009 (e)
  $ 10 .78       0 .04       3 .69       3 .73       (0 .03)       –          (0 .03)     $ 14 .48       34 .73%     $ 2,523,106         1 .19%       0 .35%       1 .19%(f)       77 .10%    
Year Ended December 31, 2008
  $ 22 .24       0 .16       (7 .47)       (7 .31)       (0 .15)       (4 .00)       (4 .15)     $ 10 .78       (38 .16%)     $ 1,491,946         1 .16%       0 .90%       1 .16%(f)       113 .50%    
Year Ended December 31, 2007
  $ 25 .01       0 .06       0 .67       0 .73       (0 .01)       (3 .49)       (3 .50)     $ 22 .24       2 .11%     $ 2,985,655         1 .21%       0 .19%       1 .21%(f)       115 .83%    
Year Ended December 31, 2006
  $ 22 .80       0 .03       2 .68       2 .71       (0 .04)       (0 .46)       (0 .50)     $ 25 .01       12 .06%     $ 4,880,884         1 .18%       0 .16%       1 .18%(f)       104 .59%    
Year Ended December 31, 2005
  $ 22 .98       (0 .02)       2 .83       2 .81       –          (2 .99)       (2 .99)     $ 22 .80       12 .31%     $ 2,548,033         1 .22%       (0 .14%)       1 .22%(f)       128 .34%    
                                                                                                                                               
Class IV Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .44       0 .01       (0 .47)       (0 .46)       (0 .02)       –          (0 .02)     $ 13 .96       (3 .21%)     $ 20,200,073         1 .17%       0 .15%       1 .17%       47 .22%    
Year Ended December 31, 2009 (e)
  $ 10 .76       0 .04       3 .67       3 .71       (0 .03)       –          (0 .03)     $ 14 .44       34 .61%     $ 23,013,941         1 .19%       0 .38%       1 .19%(f)       77 .10%    
Year Ended December 31, 2008
  $ 22 .21       0 .14       (7 .45)       (7 .31)       (0 .14)       (4 .00)       (4 .14)     $ 10 .76       (38 .19%)     $ 20,512,653         1 .20%       0 .83%       1 .20%(f)       113 .50%    
Year Ended December 31, 2007
  $ 24 .99       0 .07       0 .67       0 .74       (0 .03)       (3 .49)       (3 .52)     $ 22 .21       2 .15%     $ 39,300,304         1 .17%       0 .26%       1 .17%(f)       115 .83%    
Year Ended December 31, 2006
  $ 22 .78       0 .03       2 .67       2 .70       (0 .03)       (0 .46)       (0 .49)     $ 24 .99       12 .04%     $ 42,375,147         1 .19%       0 .12%       1 .19%(f)       104 .59%    
Year Ended December 31, 2005
  $ 22 .96       (0 .03)       2 .84       2 .81       –          (2 .99)       (2 .99)     $ 22 .78       12 .32%     $ 43,205,522         1 .20%       (0 .12%)       1 .20%(f)       128 .34%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .45       0 .03       (0 .48)       (0 .45)       (0 .03)       –          (0 .03)     $ 13 .97       (3 .14%)     $ 21,991,684         1 .02%       0 .34%       1 .02%       47 .22%    
Year Ended December 31, 2009 (e)
  $ 10 .76       0 .05       3 .68       3 .73       (0 .04)       –          (0 .04)     $ 14 .45       34 .80%     $ 17,171,892         1 .03%       0 .43%       1 .03%       77 .10%    
Period Ended December 31, 2008 (g)
  $ 20 .20       0 .12       (5 .39)       (5 .27)       (0 .17)       (4 .00)       (4 .17)     $ 10 .76       (32 .67%)     $ 5,084,763         1 .08%       0 .99%       1 .08%(f)       113 .50%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  There were no fee reductions during the period.
(g)  For the period from March 27, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 23

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Small Company Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
24 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments) Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ 4,158,980     $ 865,758     $ —     $ 5,024,738      
Air Freight & Logistics
    1,396,340       738,451       —       2,134,791      
Airlines
    1,027,916       22,782       —       1,050,698      
Auto Components
    4,499,173       852,904       —       5,352,077      
Automobiles
    —       1,088,717       —       1,088,717      
Beverages
    424,935       —       —       424,935      
Biotechnology
    959,260       —       —       959,260      
Building Products
    1,854,791       97,905       —       1,952,696      
Capital Markets
    7,347,976       1,918,628       —       9,266,604      
Chemicals
    9,317,661       767,278       —       10,084,939      
Commercial Banks
    18,656,233       1,564,413       —       20,220,646      
Commercial Services & Supplies
    5,560,569       786,603       —       6,347,172      
Communications Equipment
    7,862,218       1,495,289       —       9,357,507      
Computers & Peripherals
    1,187,472       396,924       198,737       1,783,133      
Construction & Engineering
    864,426       3,054,191       —       3,918,617      
Construction Materials
    2,302,366       41,868       —       2,344,234      
Consumer Finance
    —       273,943       —       273,943      
Containers & Packaging
    2,042,975       80,470       —       2,123,445      
Distributors
    1,993,783       665,759       —       2,659,542      
Diversified Consumer Services
    6,515,135       —       —       6,515,135      
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Diversified Financial Services
  $ 4,904,454     $ 724,247     $ —     $ 5,628,701      
Diversified Telecommunication Services
    535,792       264,701       —       800,493      
Electric Utilities
    3,292,302       359,562       —       3,651,864      
Electrical Equipment
    2,300,960       1,086,707       —       3,387,667      
Electronic Equipment, Instruments & Components
    5,259,213       932,140       —       6,191,353      
Energy Equipment & Services
    10,646,555       1,816,270       —       12,462,825      
Food & Staples Retailing
    2,381,007       1,432,728       —       3,813,735      
Food Products
    2,188,465       1,354,460       —       3,542,925      
Gas Utilities
    3,632,080       161,481       —       3,793,561      
Health Care Equipment & Supplies
    12,830,663       978,210       —       13,808,873      
Health Care Providers & Services
    9,479,364       778,186       —       10,257,550      
Health Care Technology
    3,459,558       —       —       3,459,558      
Hotels, Restaurants & Leisure
    11,935,138       2,328,562       —       14,263,700      
Household Durables
    3,974,250       1,827,712       —       5,801,962      
Household Products
    633,371       —       —       633,371      
Independent Power Producers & Energy Traders
    —       363,450       —       363,450      
Industrial Conglomerates
    368,686       792,420       —       1,161,106      
Information Technology Services
    4,596,748       278,855       —       4,875,603      
Insurance
    15,363,840       1,534,829       —       16,898,669      
Internet
    —       —       703,864       703,864      
Internet & Catalog Retail
    3,977,785       744,953       —       4,722,738      
Internet Software & Services
    9,971,155       131,545       —       10,102,700      
IT Services
    —       565,036       —       565,036      
Leisure Equipment & Products
    585,853       910,471       —       1,496,324      
Life Sciences Tools & Services
    4,512,158       —       —       4,512,158      
Machinery
    20,153,202       3,652,829       —       23,806,031      
Marine
    —       240,415       —       240,415      
Media
    1,708,822       1,881,429       —       3,590,251      
Medical Labs & Testing
    —       —       395,822       395,822      
Metals & Mining
    4,990,677       3,134,742       —       8,125,419      
Multiline Retail
    —       385,328       —       385,328      
Multi-Utilities
    1,873,058       237,865       —       2,110,923      
Office Electronics
    404,575       162,634       —       567,209      
Oil, Gas & Consumable Fuels
    12,267,841       1,126,697       —       13,394,538      
Paper & Forest Products
    941,286       537,013       —       1,478,299      
Personal Products
    2,134,692       108,709       —       2,243,401      
Pharmaceuticals
    2,775,218       2,162,671       —       4,937,889      
Professional Services
    6,423,600       505,840       —       6,929,440      
Real Estate Investment Trusts (REITs)
    9,505,385       122,913       —       9,628,298      
Real Estate Management & Development
    2,767,459       2,470,905       —       5,238,364      
Road & Rail
    5,164,037       68,870       —       5,232,907      
Semiconductors & Semiconductor Equipment
    7,331,671       902,141       —       8,233,812      
Software
    19,988,746       1,226,356       —       21,215,102      
Specialty Retail
    14,578,845       1,157,277       —       15,736,122      
Textiles, Apparel & Luxury Goods
    8,543,088       523,085       —       9,066,173      
Thrifts & Mortgage Finance
    9,205,614       795,393       —       10,001,007      
Trading Companies & Distributors
    5,620,145       295,189       —       5,915,334      
 
 
 
26 Semiannual Report 2010

 

 
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Transportation Infrastructure
  $ 371,462     $ 902,236     $ —     $ 1,273,698      
Water Utilities
    420,878       154,421       —       575,299      
Wireless Telecommunication Services
    2,124,559       103,496       —       2,228,055      
 
 
Total Common Stocks
    334,096,466       56,936,862       1,298,423       392,331,751      
 
 
Exchange Traded Funds
    1,723,975       —       —       1,723,975      
Mutual Funds
    6,838,983       —       —       6,838,983      
Preferred Stocks
                                   
Biotechnology
    —       164,886       —       164,886      
Consumer Finance
    —       —       192,490       192,490      
Electrical Equipment
    —       —       324,582       324,582      
Health Care Technology
    —       —       271,165       271,165      
Media
    —       316,938       —       316,938      
 
 
Total Preferred Stocks
    —       481,824       788,237       1,270,061      
 
 
Repurchase Agreements
    —       3,247,367       —       3,247,367      
 
 
Total Assets
  $ 342,659,424     $ 60,666,053     $ 2,086,660     $ 405,412,137      
 
 
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                                 
        Common
 		  Preferred
 		       
        Stock   Stock   Total    
 
    Balance as of 12/31/09   $ 3,312,371     $ —     $ 3,312,371      
 
 
    Accrued Accretion/(Amortization)     —       —       —      
 
 
    Change in Unrealized Appreciation/(Depreciation)     (1,052,271 )     (82,996 )     (1,135,267 )    
 
 
    Realized Gains/(Losses)     —       —       —      
 
 
    Net Purchases/(Sales)     —       871,233       871,233      
 
 
    Transfers Into Level 3     18,067       —       18,067      
 
 
    Transfers Out of Level 3     (979,744 )     —       (979,744 )    
 
 
    Balance as of 6/30/10   $ 1,298,423     $ 788,237     $ 2,086,660      
 
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
Changes in valuation may result in transfers in or out of an investment’s assigned level within the hierarchy. The Fund recognizes transfers between levels during the fiscal period in which a change in valuation inputs occurs. A Level 3 equity investment, valued at $180,670 as of December 31, 2009, was transferred from Level 2 to Level 3 during the period ended June 30, 2010. This transfer occurred because the investment was no longer valued on a daily basis by the Fund’s pricing vendor. As of June 30, 2010, the investment is valued at $198,737. A Level 2 common stock investment, valued at $2,056,714 as of December 31, 2009, was transferred from Level 3 to Level 2 during the period ended June 30, 2010. This transfer occurred because the Fund’s pricing vendor began to value the investment on a daily basis. As of June 30, 2010, the investment is currently valued at $1,076,970.
 
 
 
2010 Semiannual Report 27

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $292,209 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of
 
 
 
28 Semiannual Report 2010

 

 
 
collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 3,090,551     $ 3,247,367      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is not aware
 
 
 
2010 Semiannual Report 29

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
     
Subadvisers    
 
Morgan Stanley Investment Management, Inc.
   
 
 
Putnam Investment Management, LLC
   
 
 
Neuberger Berman Management, LLC
   
 
 
Waddell & Reed Investment Management Company
   
 
 
Aberdeen Asset Management, Inc.
   
 
 
Gartmore Global Partners
   
 
 
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                     
    Fee Schedule   Total Fees    
 
      All assets       0.93%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers $1,253,200 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
 
 
30 Semiannual Report 2010

 

 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II and Class III and 0.20% of the average daily net assets of Class IV shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $315,697 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $847.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III shares on behalf of a contract owner may be subject to a 1.00% redemption fee
 
 
 
2010 Semiannual Report 31

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,721.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $105.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $201,085,224 and sales of $220,566,508 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
 
 
32 Semiannual Report 2010

 

 
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 397,944,885     $ 48,934,271     $ (41,467,019 )   $ 7,467,252      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 33

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
34 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Small Company Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., Aberdeen Asset Management Inc., Gartmore Global Partners, Morgan Stanley Investment Management, Inc., Neuberger Berman Management, LLC, Putnam Investment Management, LLC, and Waddell & Reed Investment Management Company) and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees then noted that, for the one-year period ended September 30, 2009, the Fund’s overall performance for Class II shares was in the second quintile of its Peer Group, and that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s overall performance for Class II shares was in the third quintile and below the median of its Peer Group. The Trustees also noted that, for each period, the Fund outperformed its benchmark, the Russell 2000 Index. The Trustees noted that the Fund’s overall performance was negatively affected by the performance of the sleeve managed by American Century Investment Management, Inc. (“American Century”). The Trustees noted that American Century had been terminated as a Sub-Adviser to the Fund in September 2009 and that, as a result, the Fund’s recent performance had improved.
 
The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the fifth quintile of its Peer Group. The Trustees noted, however, that the Fund’s actual advisory fee and total expenses were in the fourth quintile of its Peer Universe. In that regard, The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the Fund invests in a capacity-constrained asset class, which necessarily limits profitability.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 35

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
36 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 37

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
38 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 39

 

 
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NVIT Emerging Markets Fund (formerly, Gartmore NVIT Emerging Markets Fund)
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
23
   
Supplemental Information
       
26
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-EM (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Emerging Markets Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Emerging Markets Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       933.10       5.75       1.20  
      Hypothetical b     1,000.00       1,018.84       6.01       1.20  
 
 
Class II Shares
    Actual       1,000.00       931.60       6.94       1.45  
      Hypothetical b     1,000.00       1,017.60       7.25       1.45  
 
 
Class III Shares
    Actual       1,000.00       933.00       5.75       1.20  
      Hypothetical b     1,000.00       1,018.84       6.01       1.20  
 
 
Class VI Shares
    Actual       1,000.00       931.20       6.94       1.45  
      Hypothetical b     1,000.00       1,017.60       7.25       1.45  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Emerging Markets Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    95 .1%
Mutual Fund
    3 .7%
Preferred Stock
    2 .3%
Liabilities in excess of other assets
    (1 .1)%
         
      100 .0%
         
Top Industries †    
 
Commercial Banks
    23 .1%
Metals & Mining
    10 .4%
Semiconductors & Semiconductor Equipment
    8 .6%
Oil, Gas & Consumable Fuels
    8 .5%
Wireless Telecommunication Services
    4 .2%
Automobiles
    3 .5%
Personal Products
    3 .5%
Auto Components
    2 .8%
Information Technology Services
    2 .8%
Media
    2 .8%
Other Industries
    29 .8%
         
      100 .0%
         
Top Holdings †    
 
Samsung Electronics Co., Ltd. 
    5 .4%
Invesco Liquid Assets Portfolio — Institutional Class
    3 .6%
China Construction Bank Corp., H Shares
    3 .5%
Industrial & Commercial Bank of China, H Shares
    3 .5%
Petroleo Brasileiro SA — Preference Shares
    3 .1%
Randgold Resources Ltd. 
    3 .0%
Hyundai Mobis
    2 .8%
Naspers Ltd. N Shares
    2 .8%
China Resources Land Ltd. 
    2 .4%
Vale SA
    2 .4%
Other Holdings
    67 .5%
         
      100 .0%
         
Top Countries †    
 
China
    14 .2%
South Korea
    13 .6%
Brazil
    11 .0%
Hong Kong
    8 .2%
Russia
    7 .4%
Taiwan
    7 .2%
India
    6 .7%
Indonesia
    6 .2%
Turkey
    5 .6%
United States
    3 .6%
Other Countries
    16 .3%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Emerging Markets Fund
 
                 
                 
Common Stocks 95.1%
                 
      Shares       Market
Value 		 
 
 
BRAZIL 8.7%
Beverages 1.5%
                 
Cia de Bebidas das Americas ADR-BR
    30,104     $ 3,040,805  
                 
Health Care Providers & Services 1.3%
Diagnosticos Da America SA
    274,100       2,578,514  
                 
Oil, Gas & Consumable Fuels 4.0%
Petroleo Brasileiro SA — Common Shares ADR-BR
    55,300       1,897,896  
Petroleo Brasileiro SA — Preference Shares ADR-BR
    215,307       6,416,149  
                 
              8,314,045  
                 
Personal Products 1.9%
Hypermarcas SA*
    312,200       4,004,116  
                 
              17,937,480  
                 
 
 
CHINA 14.4%
Commercial Banks 7.0%
China Construction Bank Corp., H Shares
    8,988,000       7,235,462  
Industrial & Commercial Bank of China, H Shares
    9,951,000       7,232,932  
                 
              14,468,394  
                 
Hotels, Restaurants & Leisure 1.4%
Ctrip.com International Ltd. ADR-CN*
    74,700       2,805,732  
                 
Insurance 1.8%
China Life Insurance Co. Ltd. H Shares
    849,000       3,712,872  
                 
Internet Software & Services 0.9%
Tencent Holdings Ltd.
    113,800       1,885,353  
                 
Multiline Retail 1.7%
Parkson Retail Group Ltd.
    2,055,500       3,464,721  
                 
Oil, Gas & Consumable Fuels 1.6%
PetroChina Co., Ltd., H Shares
    2,924,000       3,234,134  
                 
              29,571,206  
                 
 
 
EGYPT 1.9%
Commercial Banks 1.9%
Commercial International Bank
    327,300       3,831,629  
                 
 
 
HONG KONG 8.3%
Oil, Gas & Consumable Fuels 2.2%
CNOOC Ltd.
    2,682,000       4,558,537  
                 
Paper & Forest Products 1.0%
Nine Dragons Paper Holdings Ltd.
    1,484,000       1,999,277  
                 
Personal Products 1.5%
Hengan International Group Co., Ltd
    392,000       3,174,196  
                 
Real Estate Management & Development 2.5%
China Resources Land Ltd.
    2,690,000       5,057,824  
                 
Specialty Retail 0.7%
Belle International Holdings Ltd.
    994,000       1,410,173  
                 
Textiles, Apparel & Luxury Goods 0.4%
XTEP International Holdings
    1,066,000       876,260  
                 
              17,076,267  
                 
 
 
INDIA 6.8%
Automobiles 1.6%
Hero Honda Motors Ltd.
    74,419       3,264,595  
                 
Commercial Banks 1.4%
ICICI Bank Ltd.
    156,462       2,861,584  
                 
Information Technology Services 2.8%
HCL Technologies Ltd.
    333,570       2,593,055  
Tata Consultancy Services Ltd.
    201,211       3,228,798  
                 
              5,821,853  
                 
Machinery 1.0%
Tata Motors Ltd.
    125,819       2,083,504  
                 
              14,031,536  
                 
 
 
INDONESIA 6.3%
Automobiles 2.0%
Astra International Tbk PT
    770,000       4,068,285  
                 
Commercial Banks 4.3%
Bank Mandiri Tbk PT
    6,885,000       4,511,521  
Bank Rakyat Indonesia PT
    4,335,000       4,401,146  
                 
              8,912,667  
                 
              12,980,952  
                 
 
 
JERSEY, CHANNEL ISLANDS 3.0%
Metals & Mining 3.0%
Randgold Resources Ltd. ADR-CI
    65,800       6,234,550  
                 
 
 
LUXEMBOURG 1.2%
Metals & Mining 1.2%
Ternium SA ADR-LU
    76,800       2,528,256  
                 
 
 
MEXICO 2.0%
Food & Staples Retailing 1.0%
Wal-Mart de Mexico SAB de CV
    906,935       2,009,092  
                 
Wireless Telecommunication Services 1.0%
America Movil SAB de CV ADR-MX, Series L
    44,273       2,102,968  
                 
              4,112,060  
                 
 
 
NETHERLANDS 1.9%
Wireless Telecommunication Services 1.9%
VimpelCom Ltd. ADR-NL*
    239,000       3,867,020  
                 
 
 
PERU 2.4%
Commercial Banks 1.8%
Credicorp Ltd.
    40,600       3,690,134  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Emerging Markets Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
PERU (continued)
Metals & Mining 0.6%
Cia de Minas Buenaventura SA ADR-PE
    29,524     $ 1,134,903  
                 
              4,825,037  
                 
 
 
RUSSIA 7.4%
Commercial Banks 2.2%
Sberbank of Russian Federation
    1,909,321       4,587,237  
                 
Food & Staples Retailing 1.2%
X5 Retail Group NV REG GDR-RU*
    70,817       2,376,555  
                 
Food Products 1.3%
Wimm-Bill-Dann Foods OJSC ADR-RU
    146,500       2,607,700  
                 
Metals & Mining 0.7%
MMC Norilsk Nickel ADR-RU
    102,770       1,473,012  
                 
Oil, Gas & Consumable Fuels 0.7%
Rosneft Oil Co. GDR-RU
    252,298       1,538,569  
                 
Wireless Telecommunication Services 1.3%
Mobile Telesystems OJSC ADR-RU
    141,500       2,711,140  
                 
              15,294,213  
                 
 
 
SOUTH AFRICA 2.8%
Media 2.8%
Naspers Ltd. N Shares
    170,512       5,742,074  
                 
 
 
SOUTH KOREA 13.8%
Auto Components 2.8%
Hyundai Mobis
    34,750       5,828,427  
                 
Commercial Banks 1.5%
KB Financial Group, Inc.
    79,316       3,040,244  
                 
Internet Software & Services 1.5%
NHN Corp.*
    19,962       2,968,932  
                 
Metals & Mining 1.3%
POSCO
    7,008       2,655,407  
                 
Semiconductors & Semiconductor Equipment 6.7%
Hynix Semiconductor, Inc.*
    121,400       2,453,866  
Samsung Electronics Co., Ltd.
    18,133       11,373,276  
                 
              13,827,142  
                 
                 
              28,320,152  
                 
 
 
TAIWAN 7.3%
Capital Markets 1.0%
Yuanta Financial Holding Co., Ltd.
    3,826,000       2,042,340  
                 
Computers & Peripherals 2.1%
Compal Electronics, Inc.
    3,577,200       4,260,456  
                 
Electronic Equipment, Instruments & Components 2.2%
Hon Hai Precision Industry Co., Ltd.*
    1,300,000       4,556,724  
                 
Semiconductors & Semiconductor Equipment 2.0%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR-TW
    417,000       4,069,920  
                 
              14,929,440  
                 
 
 
TURKEY 5.6%
Commercial Banks 3.3%
Turkiye Garanti Bankasi AS
    1,039,614       4,326,492  
Turkiye Halk Bankasi AS
    323,399       2,387,507  
                 
              6,713,999  
                 
Industrial Conglomerates 2.3%
KOC Holding AS
    1,426,004       4,823,315  
                 
              11,537,314  
                 
 
 
UNITED KINGDOM 1.3%
Metals & Mining 1.3%
Antofagasta PLC
    231,257       2,690,592  
                 
         
Total Common Stocks (cost $207,394,540)
    195,509,778  
         
                 
                 
Preferred Stock 2.3%
                 
                 
BRAZIL 2.3%
Metals & Mining 2.3%
Vale SA ADR-BR
    231,970       4,876,010  
                 
         
Total Preferred Stock (cost $6,482,134)
    4,876,010  
         
                 
                 
Mutual Fund 3.7%
                 
                 
Money Market Fund 3.7%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    7,570,686       7,570,686  
                 
         
Total Mutual Fund (cost $7,570,686)
    7,570,686  
         
         
Total Investments (Cost $221,447,360) (b) — 101.1%
    207,956,474  
         
Liabilities in excess of other assets — (1.1)%
    (2,314,567 )
         
         
NET ASSETS — 100.0%
  $ 205,641,907  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AS Stock Corporation
 
BR Brazil
 
CI Channel Islands
 
CN China
 
GDR Global Depositary Receipt
 
Ltd. Limited
 
 
 
6 Semiannual Report 2010

 

 
 
 
LU Luxembourg
 
MX Mexico
 
NL Netherlands
 
NV Public Traded Company
 
OJSC Open Joint Stock Company
 
PE Peru
 
PLC Public Limited Company
 
PT Limited Liability Company
 
RU Russia
 
SA Stock Company
 
SAB de CV   Public Traded Company
 
TW Taiwan
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Emerging
 		 
      Markets Fund  
       
Assets:
         
Investments, at value (cost $221,447,360)
    $ 207,956,474  
Foreign currencies, at value (cost $208,400)
      206,157  
Dividends receivable
      821,205  
Receivable for investments sold
      2,642,295  
Receivable for capital shares issued
      127,964  
Reclaims receivable
      5,773  
Prepaid expenses and other assets
      2,918  
           
Total Assets
      211,762,786  
           
Liabilities:
         
Payable for investments purchased
      5,469,824  
Payable for capital shares redeemed
      275,341  
Cash overdraft (Note 2)
      79,046  
Accrued expenses and other payables:
         
Investment advisory fees
      165,091  
Fund administration fees
      10,895  
Distribution fees
      12,253  
Administrative servicing fees
      35,319  
Accounting and transfer agent fees
      8,689  
Trustee fees
      240  
Custodian fees
      20,413  
Compliance program costs (Note 3)
      1,323  
Professional fees
      21,674  
Printing fees
      18,889  
Other
      1,882  
           
Total Liabilities
      6,120,879  
           
Net Assets
    $ 205,641,907  
           
Represented by:
         
Capital
    $ 238,743,390  
Accumulated undistributed net investment income
      1,082,354  
Accumulated net realized losses from investment and foreign currency transactions
      (20,688,538 )
Net unrealized appreciation/(depreciation) from investments
      (13,490,886 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (4,413 )
           
Net Assets
    $ 205,641,907  
           
Net Assets:
         
Class I Shares
    $ 39,431,078  
Class II Shares
      2,371,550  
Class III Shares
      108,345,756  
Class VI Shares
      55,493,523  
           
Total
    $ 205,641,907  
           
The accompanying notes are an integral part of these financial statements.
 
 
 
 
8 Semiannual Report 2010

 

 
 
           
           
      NVIT Emerging
 		 
      Markets Fund  
       
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      3,721,201  
Class II Shares
      226,261  
Class III Shares
      10,239,047  
Class VI Shares
      5,258,662  
           
Total
      19,445,171  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 10.60  
Class II Shares
    $ 10.48  
Class III Shares
    $ 10.58  
Class VI Shares
    $ 10.55  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Emerging
 		 
      Markets Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 2,760,297  
Income from securities lending (Note 2)
      2,351  
Foreign tax withholding
      (171,047 )
           
Total Income
      2,591,601  
           
EXPENSES:
         
Investment advisory fees
      1,079,392  
Fund administration fees
      50,506  
Distribution fees Class II Shares
      3,520  
Distribution fees Class VI Shares
      75,089  
Administrative servicing fees Class I Shares
      32,745  
Administrative servicing fees Class II Shares
      2,112  
Administrative servicing fees Class III Shares
      90,521  
Administrative servicing fees Class VI Shares
      45,054  
Professional fees
      16,624  
Printing fees
      14,878  
Trustee fees
      4,087  
Custodian fees
      9,750  
Accounting and transfer agent fees
      5,872  
Compliance program costs (Note 3)
      414  
Other
      5,679  
           
Total expenses before earnings credits
      1,436,243  
Earnings credit (Note 5)
      (123 )
           
Net Expenses
      1,436,120  
           
NET INVESTMENT INCOME
      1,155,481  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions †
      35,656,340  
Net realized losses from foreign currency transactions (Note 2)
      (256,304 )
           
Net realized gains from investment and foreign currency transactions
      35,400,036  
           
Net change in unrealized appreciation/(depreciation) from investments
      (52,483,506 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (1,458 )
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (52,484,964 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (17,084,928 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (15,929,447 )
           
 
 
† Net of capital gain country taxes of $752,532.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Emerging Markets Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,155,481       $ 1,979,741  
Net realized gains/(losses) from investment and foreign currency transactions
      35,400,036         (29,343,421 )
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (52,484,964 )       119,395,283  
                     
Change in net assets resulting from operations
      (15,929,447 )       92,031,603  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      –         (382,943 )
Class II
      –         (24,129 )
Class III
      –         (1,069,822 )
Class VI
      –         (421,145 )
Return of capital:
                   
Class I
      –         (94,464 )
Class II
      –         (5,954 )
Class III
      –         (263,901 )
Class VI
      –         (103,887 )
                     
Change in net assets from shareholder distributions
      –         (2,366,245 )
                     
Change in net assets from capital transactions
      (19,102,857 )       (4,255,939 )
                     
Change in net assets
      (35,032,304 )       85,409,419  
                     
                     
Net Assets:
                   
Beginning of period
      240,674,211         155,264,792  
                     
End of period
    $ 205,641,907       $ 240,674,211  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ 1,082,354       $ (73,127 )
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 4,863,896       $ 14,706,877  
Dividends reinvested
      –         477,407  
Cost of shares redeemed
      (8,373,479 )       (15,955,432 )
                     
Total Class I
      (3,509,583 )       (771,148 )
                     
Class II Shares
                   
Proceeds from shares issued
      234         1,167  
Dividends reinvested
      –         30,082  
Cost of shares redeemed
      (459,044 )       (717,646 )
                     
Total Class II
      (458,810 )       (686,397 )
                     
Class III Shares
                   
Proceeds from shares issued
      6,363,996         19,932,113  
Dividends reinvested
      –         1,333,724  
Cost of shares redeemed
      (19,110,879 )       (27,127,353 )
                     
Total Class III
      (12,746,883 )       (5,861,516 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Emerging Markets Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
CAPITAL TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Proceeds from shares issued
    $ 3,872,016       $ 15,065,109  
Dividends reinvested
      –         525,032  
Cost of shares redeemed
      (6,259,597 )       (12,527,019 )
                     
Total Class VI
      (2,387,581 )       3,063,122  
                     
Change in net assets from capital transactions
    $ (19,102,857 )     $ (4,255,939 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      423,802         1,729,361  
Reinvested
      –         56,069  
Redeemed
      (756,151 )       (1,859,097 )
                     
Total Class I Shares
      (332,349 )       (73,667 )
                     
Class II Shares
                   
Issued
      –         47  
Reinvested
      –         3,599  
Redeemed
      (42,446 )       (87,473 )
                     
Total Class II Shares
      (42,446 )       (83,827 )
                     
Class III Shares
                   
Issued
      560,438         2,229,470  
Reinvested
      –         156,844  
Redeemed
      (1,735,927 )       (3,262,626 )
                     
Total Class III Shares
      (1,175,489 )       (876,312 )
                     
Class VI Shares
                   
Issued
      343,833         1,711,591  
Reinvested
      –         61,928  
Redeemed
      (569,066 )       (1,589,452 )
                     
Total Class VI Shares
      (225,233 )       184,067  
                     
Total change in shares
      (1,775,517 )       (849,739 )
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Emerging Markets Fund
 
                                                                                                                                                                   
          Operations     Distributions                       Ratios / Supplemental Data
     
                Net Realized
 		                                                                      Ratio of
 		         
                and
 		                                                                      Expenses
 		         
                Unrealized
 		                                                                Ratio of Net
 		    (Prior to
 		         
    Net Asset
 		          Gains
 		                                                          Ratio of
 		    Investment
 		    Reimbursements)
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		                      Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    to Average
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    Net
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Assets (b)(c)     Turnover (d)    
Class I Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .36       0 .06       (0 .82)       (0 .76)       –          –          –          –          –        $ 10 .60       (6 .69%)     $ 39,431,078         1 .20%       1 .10%       1 .20%       112 .04%    
Year Ended December 31, 2009 (e)
  $ 7 .05       0 .10       4 .32       4 .42       (0 .09)       –          (0 .02)       (0 .11)       –        $ 11 .36       63 .31%     $ 46,047,002         1 .20%       1 .13%       1 .20%       121 .34%    
Year Ended December 31, 2008
  $ 22 .61       0 .20       (11 .89)       (11 .69)       (0 .19)       (3 .69)       –          (3 .88)       0 .01     $ 7 .05       (57 .76%)     $ 29,077,237         1 .30%       1 .27%       1 .30%       63 .87%    
Year Ended December 31, 2007
  $ 17 .52       0 .14       7 .31       7 .45       (0 .14)       (2 .23)       –          (2 .37)       0 .01     $ 22 .61       45 .58%     $ 77,698,603         1 .37%       0 .73%       1 .37%       62 .52%    
Year Ended December 31, 2006
  $ 13 .08       0 .12       4 .58       4 .70       (0 .10)       (0 .17)       –          (0 .27)       0 .01     $ 17 .52       36 .72%     $ 46,161,018         1 .33%       0 .81%       1 .33%       114 .19%    
Year Ended December 31, 2005
  $ 10 .83       0 .10       3 .38       3 .48       (0 .07)       (1 .16)       –          (1 .23)       –        $ 13 .08       32 .64%     $ 30,292,201         1 .46%       0 .89%       1 .46%       132 .22%    
                                                                                                                                                                   
Class II Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .25       0 .04       (0 .81)       (0 .77)       –          –          –          –          –        $ 10 .48       (6 .84%)     $ 2,371,550         1 .45%       0 .81%       1 .45%       112 .04%    
Year Ended December 31, 2009 (e)
  $ 6 .98       0 .08       4 .29       4 .37       (0 .08)       –          (0 .02)       (0 .10)       –        $ 11 .25       63 .09%     $ 3,023,040         1 .46%       0 .91%       1 .46%       121 .34%    
Year Ended December 31, 2008
  $ 22 .46       0 .18       (11 .84)       (11 .66)       (0 .14)       (3 .69)       –          (3 .83)       0 .01     $ 6 .98       (57 .93%)     $ 2,461,889         1 .57%       1 .01%       1 .57%       63 .87%    
Year Ended December 31, 2007
  $ 17 .42       0 .11       7 .24       7 .35       (0 .09)       (2 .23)       –          (2 .32)       0 .01     $ 22 .46       45 .19%     $ 9,720,051         1 .61%       0 .53%       1 .61%       62 .52%    
Year Ended December 31, 2006
  $ 13 .02       0 .09       4 .55       4 .64       (0 .08)       (0 .17)       –          (0 .25)       0 .01     $ 17 .42       36 .31%     $ 8,692,065         1 .58%       0 .61%       1 .58%       114 .19%    
Year Ended December 31, 2005
  $ 10 .79       0 .07       3 .37       3 .44       (0 .05)       (1 .16)       –          (1 .21)       –        $ 13 .02       32 .33%     $ 8,140,826         1 .71%       0 .61%       1 .71%       132 .22%    
                                                                                                                                                                   
Class III Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .34       0 .06       (0 .82)       (0 .76)       –          –          –          –          –        $ 10 .58       (6 .70%)     $ 108,345,756         1 .20%       1 .07%       1 .20%       112 .04%    
Year Ended December 31, 2009 (e)
  $ 7 .03       0 .10       4 .32       4 .42       (0 .09)       –          (0 .02)       (0 .11)       –        $ 11 .34       63 .48%     $ 129,486,944         1 .21%       1 .10%       1 .21%       121 .34%    
Year Ended December 31, 2008
  $ 22 .59       0 .20       (11 .90)       (11 .70)       (0 .18)       (3 .69)       –          (3 .87)       0 .01     $ 7 .03       (57 .83%)     $ 86,462,769         1 .31%       1 .26%       1 .31%       63 .87%    
Year Ended December 31, 2007
  $ 17 .51       0 .15       7 .29       7 .44       (0 .14)       (2 .23)       –          (2 .37)       0 .01     $ 22 .59       45 .55%     $ 299,039,422         1 .36%       0 .74%       1 .36%       62 .52%    
Year Ended December 31, 2006
  $ 13 .08       0 .12       4 .57       4 .69       (0 .10)       (0 .17)       –          (0 .27)       0 .01     $ 17 .51       36 .64%     $ 197,466,543         1 .33%       0 .87%       1 .33%       114 .19%    
Year Ended December 31, 2005
  $ 10 .83       0 .08       3 .40       3 .48       (0 .07)       (1 .16)       –          (1 .23)       –        $ 13 .08       32 .65%     $ 151,545,767         1 .45%       0 .75%       1 .45%       132 .22%    
                                                                                                                                                                   
Class VI Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .33       0 .05       (0 .83)       (0 .78)       –          –          –          –          –        $ 10 .55       (6 .88%)     $ 55,493,523         1 .45%       0 .86%       1 .45%       112 .04%    
Year Ended December 31, 2009 (e)
  $ 7 .03       0 .07       4 .33       4 .40       (0 .08)       –          (0 .02)       (0 .10)       –        $ 11 .33       63 .09%     $ 62,117,225         1 .45%       0 .83%       1 .45%       121 .34%    
Year Ended December 31, 2008
  $ 22 .58       0 .20       (11 .90)       (11 .70)       (0 .17)       (3 .69)       –          (3 .86)       0 .01     $ 7 .03       (57 .86%)     $ 37,262,897         1 .43%       1 .15%       1 .43%       63 .87%    
Year Ended December 31, 2007
  $ 17 .50       0 .12       7 .30       7 .42       (0 .12)       (2 .23)       –          (2 .35)       0 .01     $ 22 .58       45 .45%     $ 126,430,526         1 .45%       0 .62%       1 .45%       62 .52%    
Year Ended December 31, 2006
  $ 13 .07       0 .10       4 .58       4 .68       (0 .09)       (0 .17)       –          (0 .26)       0 .01     $ 17 .50       36 .56%     $ 70,622,603         1 .43%       0 .69%       1 .43%       114 .19%    
Year Ended December 31, 2005
  $ 10 .83       0 .07       3 .40       3 .47       (0 .07)       (1 .16)       –          (1 .23)       –        $ 13 .07       32 .49%     $ 35,999,917         1 .55%       0 .59%       1 .55%       132 .22%    
 
 
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Emerging Markets Fund (formerly known as Gartmore NVIT Emerging Markets Fund) (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a
 
 
 
14 Semiannual Report 2010

 

 
 
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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Auto Components
  $ —     $ 5,828,427     $ —     $ 5,828,427      
 
 
Automobiles
    —       7,332,880       —       7,332,880      
 
 
Beverages
    3,040,805       —       —       3,040,805      
 
 
Capital Markets
    —       2,042,340       —       2,042,340      
 
 
Commercial Banks
    3,690,134       44,415,754       —       48,105,888      
 
 
Computers & Peripherals
    —       4,260,456       —       4,260,456      
 
 
Electronic Equipment, Instruments & Components
    —       4,556,724       —       4,556,724      
 
 
Food & Staples Retailing
    2,009,092       2,376,555       —       4,385,647      
 
 
Food Products
    2,607,700       —       —       2,607,700      
 
 
Health Care Providers & Services
    2,578,514       —       —       2,578,514      
 
 
Hotels, Restaurants & Leisure
    2,805,732       —       —       2,805,732      
 
 
Industrial Conglomerates
    —       4,823,315       —       4,823,315      
 
 
Information Technology Services
    —       5,821,853       —       5,821,853      
 
 
Insurance
    —       3,712,872       —       3,712,872      
 
 
Internet Software & Services
    —       4,854,285       —       4,854,285      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Machinery
  $ —     $ 2,083,504     $ —     $ 2,083,504      
 
 
Media
    —       5,742,074       —       5,742,074      
 
 
Metals & Mining
    9,897,709       6,819,011       —       16,716,720      
 
 
Multiline Retail
    —       3,464,721       —       3,464,721      
 
 
Oil, Gas & Consumable Fuels
    8,314,045       9,331,240       —       17,645,285      
 
 
Paper & Forest Products
    —       1,999,277       —       1,999,277      
 
 
Personal Products
    4,004,116       3,174,196       —       7,178,312      
 
 
Real Estate Management & Development
    —       5,057,824       —       5,057,824      
 
 
Semiconductors & Semiconductor Equipment
    4,069,920       13,827,142       —       17,897,062      
 
 
Specialty Retail
    —       1,410,173       —       1,410,173      
 
 
Textiles, Apparel & Luxury Goods
    —       876,260       —       876,260      
 
 
Wireless Telecommunication Services
    8,681,128       —       —       8,681,128      
 
 
Total Common Stocks
    51,698,895       143,810,883       —       195,509,778      
 
 
Mutual Fund
    7,570,686       —       —       7,570,686      
 
 
Preferred Stocks
    4,876,010       —       —       4,876,010      
 
 
Total Assets
  $ 64,145,591     $ 143,810,883     $ —     $ 207,956,474      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $79,046 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued
 
 
 
16 Semiannual Report 2010

 

 
 
interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty. As of June 30, 2010, the fund did not hold any repurchase agreements.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had no securities on loan.
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. Beginning May 3, 2010, NFA has selected Baring International Investment Limited (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser. Prior to May 3, 2010, Gartmore Global Partners was the subadviser for the Fund.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $500 million     0.95%      
 
 
    $500 million up to $2 billion     0.90%      
 
 
    $2 billion and more     0.85%      
 
 
 
 
 
18 Semiannual Report 2010

 

 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadvisers $369,534 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 1.20% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the Fund had no cumulative potential reimbursements.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II, Class III, and Class VI shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $170,432 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $414.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III and Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III and Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III and Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $18,634.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $55,663.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the Fund under
 
 
 
20 Semiannual Report 2010

 

 
 
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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $244,734,941 and sales of $267,735,677 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Risks Associated with REIT and Real Estate Investments. Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 222,251,715     $ 5,966,339     $ (20,261,580 )   $ (14,295,241 )    
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
22 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 23

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Emerging Markets Fund
 
After noting that the Board was scheduled to consider the termination of Gartmore Global Partners (“GGP”) as sub-adviser to the Fund and the proposed appointment of Baring International Investment Limited (“Baring”) as the new sub-adviser to the Fund later in the meeting, the Trustees agreed that, in addition to considering the continuation of the investment advisory agreement with NFA, it was prudent to consider the continuation of the Fund’s sub-advisory agreement with GGP in order to allow for the scheduling of an orderly sub-adviser transition. The Trustees took these factors into account when considering the continuation of the Fund’s sub-advisory agreement with GGP. The Trustees also reviewed the nature, extent, and quality of the services provided to the Fund by NFA and GGP, the Fund’s current sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for each of the one- and five-year periods ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group, and that for the three-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fourth quintile of its Peer Group. The Trustees noted that, for each period, the Fund underperformed its benchmark, the MSCI Emerging Markets Index. The Trustees also noted that the Fund has been on the watch list since the third quarter of 2008 and that it is under close review, and in this regard, considered that a new sub-adviser had been proposed for the Fund.
 
The Trustees noted that the Board previously approved the elimination of the performance-based fee structure applicable to the Fund effective December 1, 2008, which reduced the Fund’s investment advisory fee to the lowest level possible under the performance fee structure. The Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were each in the first quintile of its Peer Group. The Trustees noted that NFA’s elimination of the performance-based fee structure had improved the Fund’s Peer Group rankings. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreement
 
At the March 11, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved the replacement of GGP as a sub-adviser to the Fund with Baring as a
 
 
 
24 Semiannual Report 2010

 

 
 
sub-adviser to the Fund. The Trustees were provided with detailed materials relating to Baring in advance of and at these meetings. The material factors and conclusions that formed the basis for the approval are discussed below.
 
The Board considered GGP’s performance record for the one-, three-, and five-year periods ended December 31, 2009, noting that the Fund had underperformed relative to the Fund’s benchmark and Lipper peer group. The Board reviewed Baring’s investment strategy for emerging markets investments, as well as Baring’s process and historical composite performance record with respect to such investments. The Board also examined and considered the experience of the investment personnel of Baring that would be managing the Fund. The Trustees concluded that the historical investment performance record of Baring, in combination with various other factors, supported a decision to approve the sub-advisory agreement.
 
The Board considered the Fund’s overall fee level and noted that the overall expenses of the Fund would remain the same under the sub-advisory agreement, as Baring’s fee is paid out of the advisory fee that NFA receives from the Fund. The Board concluded that the sub-advisory fees to be paid to Baring were fair and reasonable.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are identical in all material respects as the terms of the sub-advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by Baring were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
2010 Semiannual Report 25

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 27

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 29

 

 

Federated NVIT High Income Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
13
   
Statement of Assets and Liabilities
       
14
   
Statement of Operations
       
15
   
Statements of Changes in Net Assets
       
16
   
Financial Highlights
       
17
   
Notes to Financial Statements
       
24
   
Supplemental Information
       
26
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-FHI (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Federated NVIT High Income Bond Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Federated NVIT High Income Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       1,032.50       4.69       0.93  
      Hypothetical b     1,000.00       1,020.18       4.66       0.93  
 
 
Class III Shares
    Actual       1,000.00       1,032.30       4.69       0.93  
      Hypothetical b     1,000.00       1,020.18       4.66       0.93  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Federated NVIT High Income Bond Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Corporate Bonds
    97 .4%
Mutual Fund
    0 .5%
Preferred Stock
    0 .3%
Common Stocks
    0 .1%
Warrant ‡
    0 .0%
Other assets in excess of liabilities
    1 .7%
         
      100 .0%
 
         
Top Industries †    
 
Media — Non-Cable
    9 .8%
Technology
    9 .1%
Healthcare
    9 .0%
Gaming
    7 .6%
Industrial — Other
    7 .4%
Consumer Products
    5 .6%
Energy
    5 .2%
Automotive
    4 .5%
Retailers
    4 .3%
Financial Institutions
    4 .2%
Other Industries
    33 .3%
         
      100 .0%
         
Top Holdings †    
 
Ford Motor Credit Co. LLC, 8.00%, 12/15/16
    1 .2%
Intelsat Intermediate Holding Co. Ltd., 9.50%, 02/01/15
    1 .2%
International Lease Finance Corp., 8.75%, 03/15/17
    1 .2%
Biomet, Inc., 11.63%, 10/15/17
    1 .2%
Sprint Capital Corp., 6.90%, 05/01/19
    1 .1%
Harrah’s Operating Co., Inc., 11.25%, 06/01/17
    0 .9%
Nuveen Investments, Inc., 10.50%, 11/15/15
    0 .9%
Sally Holdings, Inc./Sally Capital, Inc., 10.50%, 11/15/16
    0 .8%
SGS International, Inc., 12.00%, 12/15/13
    0 .8%
ARAMARK Corp., 8.50%, 02/01/15
    0 .8%
Other Holdings
    89 .9%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Federated NVIT High Income Bond Fund
 
                 
Common Stocks 0.1%
                 
      Shares       Market
Value 		 
 
 
Consumer Products 0.0%
Sleepmaster LLC Membership Units ADR-NL* (a) (b) (c)
    185     $ 0  
                 
 
 
Media — Non-Cable 0.1%
Dex One Corp.*
    12,196       231,724  
                 
 
 
Packaging 0.0%
Pliant Corp. * (a) (b) (c)
    1       0  
                 
         
Total Common Stocks (cost $2,706,946)
    231,724  
         
                 
                 
Preferred Stock 0.3%
                 
                 
Financial Institutions 0.3%
Ally Financial, Inc.,
7.00% (d) (e)
    678       526,997  
         
         
         
         
Total Preferred Stock (cost $328,381)
    526,997  
         
                 
                 
Corporate Bonds 97.4%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Aerospace/Defense 1.2%
Altegrity, Inc.
               
10.50%, 11/01/15 (c) (e)
  $ 375,000     $ 356,250  
11.75%, 05/01/16 (c) (e)
    600,000       544,500  
Hawker Beechcraft Acquisition Co. LLC, 9.75%, 04/01/17
    350,000       216,125  
Mantech International Corp., 7.25%, 04/15/18 (c) (e)
    250,000       252,500  
Sequa Corp.,
13.50%, 12/01/15 (c) (e)
    457,638       448,485  
TransDigm, Inc.,
7.75%, 07/15/14
    600,000       601,500  
                 
              2,419,360  
                 
 
 
Automotive 4.5%
Affinia Group Holdings, Inc.,
10.75%, 08/15/16 (c) (e)
    525,000       572,250  
American Axle & Manufacturing Holdings, Inc.,
9.25%, 01/15/17 (c) (e)
    125,000       128,750  
ArvinMeritor, Inc.,
10.63%, 03/15/18
    1,050,000       1,113,000  
Cooper-Standard Automotive, Inc.,
8.50%, 05/01/18 (c) (e)
    400,000       403,000  
Ford Motor Credit Co. LLC,
8.00%, 12/15/16
    2,450,000       2,505,347  
General Motors Corp.,
7.40%, 09/01/25* (f)
    2,500,000       731,250  
Lear Corp.
7.88%, 03/15/18
    1,100,000       1,102,750  
8.13%, 03/15/20
    100,000       100,250  
Tenneco, Inc.,
8.63%, 11/15/14
    1,150,000       1,160,062  
TRW Automotive, Inc.,
8.88%, 12/01/17 (c) (e)
    300,000       309,000  
United Components, Inc.,
9.38%, 06/15/13
    1,075,000       1,080,375  
                 
              9,206,034  
                 
 
 
Building Materials 2.1%
Building Materials Corp of America, 7.50%, 03/15/20 (c) (e)
    250,000       245,625  
Goodman Global Group, Inc.,
0.00%, 12/15/14 (c) (e)
    1,350,000       823,500  
Goodman Global, Inc.,
13.50%, 02/15/16
    675,000       742,500  
Norcraft Cos. LP,
10.50%, 12/15/15 (c) (e)
    825,000       849,750  
Norcraft Holdings LP,
9.75%, 09/01/12 (g)
    376,000       355,790  
Nortek, Inc.,
11.00%, 12/01/13
    726,444       757,318  
Ply Gem Industries, Inc.,
11.75%, 06/15/13
    600,000       627,000  
                 
              4,401,483  
                 
 
 
Chemicals 3.5%
Ashland, Inc.,
9.13%, 06/01/17
    100,000       109,500  
CF Industries, Inc.
6.88%, 05/01/18
    125,000       127,187  
7.13%, 05/01/20
    125,000       128,125  
Chemtura Corp.,
6.88%, 06/01/16* (b) (c) (f)
    1,050,000       1,181,250  
Compass Minerals International, Inc.,
8.00%, 06/01/19
    350,000       357,656  
Hexion US Finance Corp.
9.75%, 11/15/14
    725,000       685,125  
8.88%, 02/01/18
    675,000       609,188  
Huntsman International LLC
               
5.50%, 06/30/16 (c) (e)
    400,000       350,000  
8.63%, 03/15/20 (c) (e)
    875,000       809,375  
Koppers, Inc.,
7.88%, 12/01/19
    475,000       479,750  
Nalco Co.,
8.25%, 05/15/17
    200,000       207,000  
Nalco Finance Holdings, Inc.,
9.00%, 02/01/14 (g)
    481,000       488,215  
Solutia, Inc.,
8.75%, 11/01/17
    1,050,000       1,092,000  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Federated NVIT High Income Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Chemicals (continued)
                 
Union Carbide Corp.
7.88%, 04/01/23
  $ 225,000     $ 222,750  
7.50%, 06/01/25
    350,000       344,313  
                 
              7,191,434  
                 
 
 
Construction Machinery 0.5%
Case New Holland, Inc.,
7.88%, 12/01/17 (c) (e)
    225,000       226,688  
RSC Equipment Rental, Inc.,
9.50%, 12/01/14
    550,000       546,562  
RSC Equipment Rental, Inc./RSC Holdings III LLC,
10.00%, 07/15/17 (c) (e)
    275,000       294,937  
                 
              1,068,187  
                 
 
 
Consumer Products 5.5%
AAC Group Holding Corp.,
10.25%, 10/01/12 (c) (e)
    1,400,000       1,386,000  
American Achievement Corp.,
8.25%, 04/01/12 (c) (e)
    725,000       719,562  
American Achievement Group Holding Corp. PIK,
12.75%, 10/01/12 (h)
    567,809       545,097  
Easton-Bell Sports, Inc.,
9.75%, 12/01/16 (c) (e)
    850,000       879,750  
Jarden Corp.
               
8.00%, 05/01/16
    625,000       642,187  
7.50%, 05/01/17
    475,000       465,500  
Libbey Glass, Inc.,
10.00%, 02/15/15 (c) (e)
    325,000       336,375  
Sealy Mattress Co.
               
8.25%, 06/15/14
    1,450,000       1,453,625  
10.88%, 04/15/16 (c) (e)
    495,000       546,975  
Simmons Bedding Co.,
11.25%, 07/15/15 (c) (e)
    650,000       697,938  
Spectrum Brands Holdings, Inc.,
9.50%, 06/15/18 (c) (e)
    175,000       180,469  
Spectrum Brands, Inc. PIK,
12.00%, 08/28/19
    1,219,000       1,328,710  
True Temper Sports, Inc.,
8.38%, 09/15/11* (a) (b) (c) (f)
    750,000       0  
Visant Holding Corp.
               
8.75%, 12/01/13
    1,150,000       1,161,500  
10.25%, 12/01/13 (g)
    1,100,000       1,123,375  
                 
              11,467,063  
                 
 
 
Energy 5.1%
ATP Oil & Gas Corp.,
11.88%, 05/01/15 (c) (e)
    1,425,000       1,033,125  
Basic Energy Services, Inc.,
7.13%, 04/15/16
    550,000       456,500  
Chesapeake Energy Corp.,
9.50%, 02/15/15
    1,000,000       1,105,000  
Cie Generale de Geophysique-Veritas
       
7.50%, 05/15/15
    550,000       523,875  
7.75%, 05/15/17
    400,000       379,000  
Coffeyville Resources LLC/Coffeyville Finance, Inc.,
10.88%, 04/01/17 (c) (e)
    1,025,000       999,375  
Complete Production Services, Inc., 8.00%, 12/15/16
    500,000       488,750  
Denbury Resources, Inc.,
9.75%, 03/01/16
    675,000       729,000  
Forest Oil Corp.,
7.25%, 06/15/19
    700,000       675,500  
Linn Energy LLC/Linn Energy Finance Corp.
               
11.75%, 05/15/17
    500,000       567,500  
8.63%, 04/15/20 (c) (e)
    350,000       358,313  
McJunkin Red Man Corp.,
9.50%, 12/15/16 (c) (e)
    1,325,000       1,285,250  
Petroplus Finance Ltd.,
7.00%, 05/01/17 (c) (e)
    500,000       407,500  
Plains Exploration & Production Co., 7.00%, 03/15/17
    375,000       358,125  
SandRidge Energy, Inc.
               
9.88%, 05/15/16 (c) (e)
    900,000       913,500  
8.00%, 06/01/18 (c) (e)
    275,000       260,562  
                 
              10,540,875  
                 
 
 
Entertainment 1.6%
Cinemark USA, Inc.,
8.63%, 06/15/19
    1,100,000       1,105,500  
HRP Myrtle Beach Operations LLC,
0.00%, 04/01/12* (a) (b) (c) (e) (f) (h)
    675,000       0  
Live Nation Entertainment, Inc.,
8.13%, 05/15/18 (c) (e)
    650,000       630,500  
Universal City Development Partners Ltd.
               
8.88%, 11/15/15 (c) (e)
    875,000       879,375  
10.88%, 11/15/16 (c) (e)
    700,000       714,000  
                 
              3,329,375  
                 
 
 
Environmental 0.4%
Browning-Ferris Industries, Inc.,
9.25%, 05/01/21
    575,000       712,023  
                 
 
 
Financial Institutions 3.8%
Ally Financial, Inc.,
8.00%, 11/01/31
    690,000       636,525  
CIT Group Funding Co. of Delaware LLC, 10.25%, 05/01/17
    950,000       973,750  
CIT Group, Inc.,
7.00%, 05/01/17
    1,050,000       945,000  
International Lease Finance Corp.
               
8.63%, 09/15/15 (c) (e)
    525,000       497,438  
8.75%, 03/15/17 (c) (e)
    2,625,000       2,487,187  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Financial Institutions (continued)
                 
iPayment, Inc.,
9.75%, 05/15/14
  $ 600,000     $ 546,000  
Nuveen Investments, Inc.,
10.50%, 11/15/15
    2,025,000       1,761,750  
                 
              7,847,650  
                 
 
 
Food & Beverage 3.6%
ARAMARK Corp.,
8.50%, 02/01/15
    1,650,000       1,666,500  
B&G Foods, Inc.,
7.63%, 01/15/18
    600,000       603,000  
Michael Food, Inc.,
9.75%, 07/15/18 (c) (e)
    350,000       359,625  
Pinnacle Foods Finance LLC,
9.25%, 04/01/15 (c) (e)
    675,000       688,500  
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.,
10.63%, 04/01/17
    650,000       677,625  
Reddy Ice Corp.
               
11.25%, 03/15/15 (c) (e)
    475,000       489,250  
13.25%, 11/01/15 (c) (e)
    1,432,000       1,381,880  
Smithfield Foods, Inc.
               
10.00%, 07/15/14 (c) (e)
    625,000       692,187  
7.75%, 07/01/17
    900,000       859,500  
TreeHouse Foods, Inc.,
7.75%, 03/01/18
    100,000       103,750  
                 
              7,521,817  
                 
 
 
Food & Staples Retailing 0.0%
Jitney-Jungle Stores of America, Inc., expired maturity,
10.38%, 09/15/07* (a) (b) (f)
    100,000       0  
                 
 
 
Gaming 7.5%
American Casinos & Entertainment Properties, LLC,
11.00%, 06/15/14
    625,000       593,750  
Ameristar Casinos, Inc.,
9.25%, 06/01/14
    1,025,000       1,073,688  
Global Cash Access LLC,
8.75%, 03/15/12
    1,004,000       1,005,255  
Great Canadian Gaming Corp.,
7.25%, 02/15/15 (c) (e)
    1,050,000       1,034,250  
Harrah’s Operating Co., Inc.,
11.25%, 06/01/17
    1,675,000       1,762,937  
Herbst Gaming, Inc.,
7.00%, 11/15/14* (a) (b) (f)
    850,000       0  
Indianapolis Downs LLC & Capital Corp., 11.00%, 11/01/12 (c) (e)
    1,200,000       946,500  
Indianapolis Downs LLC & Capital Corp. PIK,
15.50%, 11/01/13 (c) (e)
    254,269       79,141  
Jacobs Entertainment, Inc.,
9.75%, 06/15/14
    1,150,000       1,069,500  
MGM Grand, Inc.,
10.38%, 05/15/14
    125,000       135,938  
MGM Mirage, Inc.
13.00%, 11/15/13
    150,000       172,875  
5.88%, 02/27/14
    75,000       59,437  
7.50%, 06/01/16
    1,750,000       1,378,125  
11.13%, 11/15/17
    200,000       220,500  
11.38%, 03/01/18 (c) (e)
    800,000       752,000  
Peninsula Gaming LLC,
10.75%, 08/15/17
    1,150,000       1,144,250  
Penn National Gaming, Inc.,
8.75%, 08/15/19
    800,000       822,000  
Pinnacle Entertainment, Inc.,
8.75%, 05/15/20 (c) (e)
    200,000       185,250  
San Pasqual Casino,
8.00%, 09/15/13 (c) (e)
    725,000       688,750  
Seminole Indian Tribe of Florida,
7.80%, 10/01/20 (c) (e)
    1,025,000       938,767  
Tunica-Biloxi Gaming Authority,
9.00%, 11/15/15 (c) (e)
    725,000       648,875  
Yonkers Racing Corp.,
11.38%, 07/15/16 (c) (e)
    650,000       696,312  
                 
              15,408,100  
                 
 
 
Healthcare 8.9%
Accellent, Inc.,
10.50%, 12/01/13
    575,000       566,375  
Bausch & Lomb, Inc.,
9.88%, 11/01/15
    850,000       873,375  
Biomet, Inc.,
11.63%, 10/15/17
    2,175,000       2,354,438  
Bio-Rad Laboratories, Inc.,
8.00%, 09/15/16
    600,000       625,500  
BioScrip, Inc.,
10.25%, 10/01/15 (c) (e)
    200,000       198,000  
CRC Health Corp.,
10.75%, 02/01/16
    800,000       736,000  
HCA, Inc.
9.25%, 11/15/16
    1,275,000       1,351,500  
9.63%, 11/15/16
    500,000       535,000  
9.88%, 02/15/17
    1,050,000       1,128,750  
7.50%, 11/06/33
    650,000       555,750  
Inverness Medical Innovations, Inc.,
7.88%, 02/01/16
    1,075,000       1,050,813  
National Mentor Holdings, Inc.,
11.25%, 07/01/14
    1,125,000       1,122,187  
Omnicare, Inc.,
6.88%, 12/15/15
    1,025,000       1,025,000  
United Surgical Partners International, Inc.,
9.25%, 05/01/17
    1,300,000       1,300,000  
Universal Hospital Services, Inc.
4.13%, 06/01/15 (h)
    375,000       315,000  
8.50%, 06/01/15
    750,000       738,750  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Federated NVIT High Income Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Healthcare (continued)
                 
Vanguard Health Holding LLC,
8.00%, 02/01/18
  $ 1,075,000     $ 1,032,000  
Viant Holdings, Inc.,
10.13%, 07/15/17 (c) (e)
    1,410,000       1,436,437  
VWR Funding, Inc.,
10.25%, 07/15/15
    1,427,656       1,441,933  
                 
              18,386,808  
                 
 
 
Industrial — Other 7.3%
ALH Finance LLC,
8.50%, 01/15/13
    1,150,000       1,150,000  
American Tire Distributors, Inc.,
9.75%, 06/01/17 (c) (e)
    550,000       551,375  
Amsted Industries, Inc.,
8.13%, 03/15/18 (c) (e)
    725,000       723,188  
Aquilex Holdings LLC/Aquilex Finance Corp.,
11.13%, 12/15/16 (c) (e)
    425,000       425,000  
Baker & Taylor, Inc.,
11.50%, 07/01/13 (c) (e)
    675,000       494,437  
Baldor Electric Co.,
8.63%, 02/15/17
    500,000       517,500  
Belden, Inc.,
7.00%, 03/15/17
    375,000       362,344  
Cleaver-Brooks, Inc.,
12.25%, 05/01/16 (c) (e)
    625,000       607,813  
ESCO Corp.
4.41%, 12/15/13 (c) (e) (h)
    250,000       228,750  
8.63%, 12/15/13 (c) (e)
    500,000       496,250  
General Cable Corp.,
7.13%, 04/01/17
    1,150,000       1,138,500  
Hillman Group, Inc.,
10.88%, 06/01/18 (c) (e)
    325,000       334,750  
International Wire Group, Inc.,
9.75%, 04/15/15 (c) (e)
    725,000       717,750  
JohnsonDiversey, Inc.,
8.25%, 11/15/19 (c) (e)
    350,000       360,500  
JohnsonDiversey, Inc. PIK,
10.50%, 05/15/20 (c) (e)
    700,000       777,000  
Knowledge Learning Corp.,
7.75%, 02/01/15 (c) (e)
    1,025,000       943,000  
Maxim Crane Works LP,
12.25%, 04/15/15 (c) (e)
    675,000       660,656  
Mueller Water Products, Inc.,
7.38%, 06/01/17
    475,000       416,812  
RBS Global, Inc./Rexnord LLC,
8.50%, 05/01/18 (c) (e)
    975,000       945,750  
Reliance Intermediate Holdings LP,
9.50%, 12/15/19 (c) (e)
    1,050,000       1,106,438  
Sensus Metering Systems, Inc.,
8.63%, 12/15/13
    975,000       950,625  
SPX Corp.,
7.63%, 12/15/14
    950,000       976,125  
Thermon Industries, Inc.,
9.50%, 05/01/17 (c) (e)
    200,000       203,000  
                 
              15,087,563  
                 
 
 
Lodging 0.4%
Host Hotels & Resorts LP
               
6.88%, 11/01/14
    475,000       473,813  
6.38%, 03/15/15
    350,000       343,000  
                 
              816,813  
                 
 
 
Media — Cable 1.1%
CCH II LLC/CCH II Capital Corp.,
13.50%, 11/30/16
    385,023       448,552  
CCO Holdings LLC/CCO Holdings Capital Corp.,
8.13%, 04/30/20 (c) (e)
    100,000       102,250  
Insight Communications Co., Inc.,
9.38%, 07/15/18 (c) (e)
    225,000       225,000  
Videotron Ltee,
9.13%, 04/15/18
    200,000       217,000  
Virgin Media Finance PLC,
9.50%, 08/15/16
    1,275,000       1,346,719  
                 
              2,339,521  
                 
 
 
Media — Non-Cable 9.5%
Affinity Group Holding, Inc.,
10.88%, 02/15/12 (b)
    869,758       347,903  
Affinity Group, Inc.,
9.00%, 02/15/12
    425,000       317,156  
Belo Corp.,
8.00%, 11/15/16
    50,000       51,375  
Clear Channel Worldwide Holdings, Inc.,
Series B,
9.25%, 12/15/17 (c) (e)
    550,000       552,750  
Clear Channel Worldwide Holdings, Inc.,
Series A,
9.25%, 12/15/17 (c) (e)
    125,000       124,375  
Fox Acquisition Sub LLC,
13.38%, 07/15/16 (c) (e)
    1,150,000       1,127,000  
Idearc Litigation Trusts,
8.00%, 11/15/16* (b)
    1,375,000       10,312  
Inmarsat Finance PLC,
7.38%, 12/01/17 (c) (e)
    300,000       306,750  
Intelsat Intermediate Holding Co. Ltd., 9.50%, 02/01/15 (g)
    2,450,000       2,492,875  
Intelsat Jackson Holdings Ltd.,
11.25%, 06/15/16
    500,000       532,500  
Interpublic Group of Cos., Inc.,
10.00%, 07/15/17
    1,050,000       1,157,625  
Lamar Media Corp.
9.75%, 04/01/14
    100,000       109,000  
6.63%, 08/15/15
    1,725,000       1,634,438  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Media — Non-Cable (continued)
                 
LIN Television Corp.,
8.38%, 04/15/18 (c) (e)
  $ 100,000     $ 99,500  
MDC Partners, Inc.,
11.00%, 11/01/16 (c) (e)
    1,225,000       1,304,625  
MediMedia USA, Inc.,
11.38%, 11/15/14 (c) (e)
    1,550,000       1,414,375  
Nexstar Broadcasting, Inc.,
7.00%, 01/15/14
    450,000       400,500  
Nexstar Broadcasting, Inc. PIK,
7.00%, 01/15/14 (c) (e)
    919,095       817,995  
Nielsen Finance Co. LLC
11.63%, 02/01/14*
    1,000,000       1,092,500  
11.50%, 05/01/16
    750,000       819,375  
Nielsen Finance Co. LLC/Nielsen Finance Co.,
0.00%, 08/01/16 (g)
    475,000       452,437  
QVC, Inc.,
7.13%, 04/15/17 (c) (e)
    500,000       490,000  
Reader’s Digest Association, Inc.
(The),
9.00%, 02/15/17* (a) (b) (f)
    1,525,000       0  
SGS International, Inc.,
12.00%, 12/15/13
    1,675,000       1,710,594  
Sirius XM Radio, Inc.,
8.75%, 04/01/15 (c) (e)
    850,000       837,250  
Umbrella Acquisition, Inc. PIK,
9.75%, 03/15/15 (c) (e) (h)
    1,080,061       899,151  
Univision Communications, Inc.,
12.00%, 07/01/14 (c) (e)
    125,000       134,062  
XM Satellite Radio, Inc.,
13.00%, 08/01/13 (c) (e)
    475,000       518,938  
                 
              19,755,361  
                 
 
 
Metals & Mining 0.0%†
Aleris International, Inc.
9.00%, 12/15/14* (b) (f)
    600,000       4,485  
10.00%, 12/15/16* (b) (f)
    475,000       4,156  
                 
              8,641  
                 
 
 
Packaging 2.6%
Berry Plastics Corp.,
8.88%, 09/15/14
    1,200,000       1,155,000  
BWAY Holding Co.,
10.00%, 06/15/18 (c) (e)
    75,000       78,188  
Crown Americas LLC
7.75%, 11/15/15
    775,000       804,062  
7.63%, 05/15/17 (c) (e)
    750,000       776,250  
Graham Packaging Co. LP,
8.25%, 01/01/17 (c) (e)
    1,100,000       1,083,500  
Greif, Inc.,
7.75%, 08/01/19
    700,000       721,000  
Reynolds Group Issuer, Inc.,
8.50%, 05/15/18 (c) (e)
    825,000       809,531  
                 
              5,427,531  
                 
 
 
Paper 2.0%
Boise Paper Holdings LLC,
9.00%, 11/01/17 (c) (e)
    825,000       849,750  
Cascades, Inc.,
7.88%, 01/15/20
    275,000       273,625  
Clearwater Paper Corp.,
10.63%, 06/15/16
    225,000       247,781  
Graphic Packaging International, Inc.,
       
9.50%, 06/15/17
    950,000       992,750  
NewPage Corp.,
11.38%, 12/31/14
    325,000       294,938  
PE Paper Escrow GmbH,
12.00%, 08/01/14 (c) (e)
    525,000       576,844  
Rock-Tenn Co.,
9.25%, 03/15/16
    900,000       965,250  
                 
              4,200,938  
                 
 
 
Restaurants 1.0%
NPC International, Inc.,
9.50%, 05/01/14
    1,325,000       1,325,000  
Seminole Hard Rock Entertainment, Inc.,
3.04%, 03/15/14 (c) (e) (h)
    975,000       831,188  
                 
              2,156,188  
                 
 
 
Retailers 4.3%
Express LLC,
8.75%, 03/01/18 (c) (e)
    175,000       178,063  
General Nutrition Centers, Inc.
               
5.75%, 03/15/14 (h)
    850,000       779,875  
10.75%, 03/15/15
    200,000       201,000  
JC Penney Corp., Inc.,
7.40%, 04/01/37
    225,000       225,000  
Macy’s Retail Holdings, Inc.
6.65%, 07/15/24
    250,000       240,000  
7.00%, 02/15/28
    225,000       216,562  
6.90%, 04/01/29
    275,000       264,688  
6.90%, 01/15/32
    125,000       118,750  
NBC Acquisition Corp.,
11.00%, 03/15/13 (g)
    400,000       358,000  
Penske Auto Group, Inc.,
7.75%, 12/15/16
    1,300,000       1,222,000  
Sally Holdings, Inc./Sally Capital, Inc.,
       
10.50%, 11/15/16
    1,625,000       1,738,750  
Susser Holdings Corp.,
8.50%, 05/15/16 (c) (e)
    175,000       175,000  
Toys “R” Us Property Co. I LLC,
10.75%, 07/15/17 (c) (e)
    1,325,000       1,447,562  
Yankee Acquisition Corp.,
9.75%, 02/15/17
    1,625,000       1,653,437  
                 
              8,818,687  
                 
                 
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Federated NVIT High Income Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Services 3.2%
Bankrate, Inc.,
11.75%, 07/15/15 (c) (e)
  $ 325,000     $ 323,375  
Ceridian Corp.,
11.25%, 11/15/15
    850,000       767,125  
Garda World Security Corp.,
9.75%, 03/15/17 (c) (e)
    825,000       837,375  
KAR Auction Services, Inc.
8.75%, 05/01/14
    975,000       979,875  
10.00%, 05/01/15
    42,000       42,840  
Sitel LLC,
11.50%, 04/01/18 (c) (e)
    950,000       878,750  
Trans Union LLC,
11.38%, 06/15/18 (c) (e)
    350,000       362,250  
West Corp.
9.50%, 10/15/14
    1,150,000       1,155,750  
11.00%, 10/15/16
    1,300,000       1,322,750  
                 
              6,670,090  
                 
 
 
Specialty Retail 0.0%
U.S. Office Products Co., expired maturity,
9.75%, 06/15/08* (a) (b) (f)
    455,359       0  
                 
 
 
Technology 8.9%
Activant Solutions, Inc.,
9.50%, 05/01/16
    1,100,000       1,045,000  
Advanced Micro Devices, Inc.,
8.13%, 12/15/17 (c) (e)
    950,000       945,250  
Aspect Software, Inc.,
10.63%, 05/15/17 (c) (e)
    825,000       825,000  
Compucom Systems, Inc.,
12.50%, 10/01/15 (c) (e)
    1,450,000       1,526,125  
First Data Corp.,
9.88%, 09/24/15
    625,000       475,000  
Freescale Semiconductor, Inc.
8.88%, 12/15/14
    350,000       319,375  
9.25%, 04/15/18 (c) (e)
    900,000       888,750  
Freescale Semiconductor, Inc. PIK,
9.13%, 12/15/14
    488,768       437,447  
GXS Worldwide, Inc.,
9.75%, 06/15/15 (c) (e)
    1,150,000       1,098,250  
Kemet Corp.,
10.50%, 05/01/18 (c) (e)
    700,000       693,000  
MagnaChip Semiconductor SA/MagnaChip Semiconductor Finance Co.,
10.50%, 04/15/18 (c) (e)
    725,000       737,688  
Seagate HDD,
6.88%, 05/01/20 (c) (e)
    675,000       641,250  
Serena Software, Inc.,
10.38%, 03/15/16
    1,050,000       1,000,125  
Smart Modular Technologies (WWH), Inc.,
6.03%, 04/01/12 (b) (h)
    405,000       383,231  
SS&C Technologies, Inc.,
11.75%, 12/01/13
    649,000       678,205  
SSI Invest II,
11.13%, 06/01/18 (c) (e)
    525,000       532,875  
Stream Global Services, Inc.,
11.25%, 10/01/14
    1,150,000       1,175,875  
SunGard Data Systems, Inc.
10.63%, 05/15/15
    1,350,000       1,442,813  
10.25%, 08/15/15
    1,050,000       1,084,125  
Terremark Worldwide, Inc.,
12.00%, 06/15/17
    1,175,000       1,321,875  
Unisys Corp.,
12.50%, 01/15/16
    475,000       513,000  
Viasystems, Inc.,
12.00%, 01/15/15 (c) (e)
    675,000       729,000  
                 
              18,493,259  
                 
 
 
Transportation 0.7%
Avis Budget Car Rental LLC,
9.63%, 03/15/18 (c) (e)
    125,000       126,250  
Hertz Corp.,
8.88%, 01/01/14
    700,000       708,750  
Kansas City Southern Railway Co.,
8.00%, 06/01/15
    375,000       386,250  
Teekay Corp.,
8.50%, 01/15/20
    200,000       199,000  
                 
              1,420,250  
                 
 
 
Utility — Electric 1.5%
Dynegy Holdings, Inc.,
7.75%, 06/01/19
    775,000       535,719  
Edison Mission Energy,
7.75%, 06/15/16
    800,000       556,000  
Energy Future Holdings Corp.,
10.88%, 11/01/17
    250,000       185,000  
FPL Energy National Wind Portfolio LLC,
6.13%, 03/25/19 (c) (e)
    282,218       276,435  
NV Energy, Inc.,
6.75%, 08/15/17
    800,000       805,927  
Texas Competitive Electric Holdings Co. LLC,
10.25%, 11/01/15
    1,175,000       775,500  
                 
              3,134,581  
                 
 
 
Utility — Natural Gas 3.4%
AmeriGas Partners LP,
7.13%, 05/20/16
    875,000       870,625  
Crosstex Energy LP,
8.88%, 02/15/18
    750,000       749,062  
Holly Energy Partners LP,
6.25%, 03/01/15
    1,025,000       978,875  
Inergy LP,
6.88%, 12/15/14
    750,000       738,750  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Utility — Natural Gas (continued)
                 
MarkWest Energy Partners LP/MarkWest Energy Finance Corp.,
8.75%, 04/15/18
  $ 1,050,000     $ 1,060,500  
Niska Gas Storage US LLC,
8.88%, 03/15/18 (c) (e)
    800,000       812,000  
Regency Energy Partners LP,
8.38%, 12/15/13
    775,000       798,250  
Regency Energy Partners LP/Regency Energy Finance Corp.,
9.38%, 06/01/16 (c) (e)
    225,000       238,500  
Southern Star Central Corp.,
6.75%, 03/01/16
    600,000       580,500  
Suburban Propane Partners LP,
7.38%, 03/15/20
    225,000       227,813  
                 
              7,054,875  
                 
 
 
Wireless Communications 3.2%
Digicel Group Ltd.
               
12.00%, 04/01/14 (c) (e)
    500,000       558,750  
9.13%, 01/15/15 (e)
    767       753  
8.25%, 09/01/17 (c) (e)
    1,375,000       1,361,250  
10.50%, 04/15/18 (c) (e)
    150,000       154,687  
MetroPCS Wireless, Inc.,
9.25%, 11/01/14
    1,450,000       1,493,500  
Nextel Communications, Inc.,
7.38%, 08/01/15
    1,000,000       950,000  
Sprint Capital Corp.,
6.90%, 05/01/19
    2,350,000       2,126,750  
                 
              6,645,690  
                 
 
 
Wireline Communications 0.1%
tw telecom holdings, inc.,
8.00%, 03/01/18 (c) (e)
    100,000       102,000  
                 
         
Total Corporate Bonds (cost $203,082,711)
    201,632,197  
         
                 
                 
Warrant 0.0%
 
                 
      Number of
Warrants 		      Market
Value 		 
 
 
Media — Non-Cable 0.0%
RDA Holding Co., expiring 2/19/2014* (a) (b)
    4,859     $ 0  
                 
         
Total Warrant (cost $0)
    0  
                 
                 
Mutual Fund 0.5%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 0.5%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21%(i)
    1,052,419     $ 1,052,419  
                 
         
Total Mutual Fund
(cost $1,052,419)
    1,052,419  
         
         
Total Investments (cost $207,170,457) (j) — 98.3%
    203,443,337  
         
Other assets in excess of liabilities — 1.7%
    3,572,479  
         
         
NET ASSETS — 100.0%
  $ 207,015,816  
         
 
* Denotes a non-income producing security.
 
(a) Fair Valued Security.
 
(b) Illiquid security.
 
(c) Restricted security.
 
(d) Perpetual bond security. The maturity date reflects the next call date.
 
(e) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $73,555,642 which represents 35.53% of net assets.
 
(f) Security in default.
 
(g) Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at June 30, 2010.
 
(h) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(i) Represents 7-day effective yield as of June 30, 2010.
 
(j) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
ADR American Depositary Receipt
 
GmbH Limited Liability Company
 
LLC Limited Liability Company
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Federated NVIT High Income Bond Fund (Continued)
 
LP Limited Partnership
 
Ltd. Limited
 
NL Netherlands
 
PLC Public Limited Company
 
PIK Paid In Kind
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Federated
 		 
      NVIT High
 		 
      Income
 		 
      Bond Fund  
       
Assets:
         
Investments, at value (cost $207,170,457)
    $ 203,443,337  
Cash
      17  
Interest and dividends receivable
      4,291,735  
Receivable for investments sold
      175,547  
Receivable for capital shares issued
      111,352  
Prepaid expenses and other assets
      2,103  
           
Total Assets
      208,024,091  
           
Liabilities:
         
Payable for investments purchased
      722,000  
Payable for capital shares redeemed
      74,756  
Accrued expenses and other payables:
         
Investment advisory fees
      114,785  
Fund administration fees
      10,416  
Administrative servicing fees
      28,046  
Accounting and transfer agent fees
      17,066  
Trustee fees
      403  
Custodian fees
      909  
Compliance program costs (Note 3)
      1,684  
Professional fees
      16,663  
Printing fees
      16,723  
Other
      4,824  
           
Total Liabilities
      1,008,275  
           
Net Assets
    $ 207,015,816  
           
Represented by:
         
Capital
    $ 230,479,204  
Accumulated undistributed net investment income
      3,742,752  
Accumulated net realized losses from investment transactions
      (23,479,020 )
Net unrealized appreciation/(depreciation) from investments
      (3,727,120 )
           
Net Assets
    $ 207,015,816  
           
Net Assets:
         
Class I Shares
    $ 77,613,717  
Class III Shares
      129,402,099  
           
Total
    $ 207,015,816  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      11,832,595  
Class III Shares
      19,745,647  
           
Total
      31,578,242  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 6.56  
Class III Shares
    $ 6.55  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
 
           
           
      Federated
 		 
      NVIT High
 		 
      Income
 		 
      Bond Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 11,631,487  
Dividend income
      27,768  
           
Total Income
      11,659,255  
           
EXPENSES:
         
Investment advisory fees
      811,982  
Fund administration fees
      52,025  
Administrative servicing fees Class I Shares
      59,757  
Administrative servicing fees Class III Shares
      119,558  
Professional fees
      20,540  
Printing fees
      11,181  
Trustee fees
      3,954  
Custodian fees
      6,633  
Accounting and transfer agent fees
      17,597  
Compliance program costs (Note 3)
      415  
Other
      5,811  
           
Total expenses before earnings credits
      1,109,453  
Earnings credit (Note 5)
      (72 )
           
Net Expenses
      1,109,381  
           
NET INVESTMENT INCOME
      10,549,874  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      132,255  
Net change in unrealized appreciation/(depreciation) from investments
      (4,941,504 )
           
Net realized/unrealized losses from investments
      (4,809,249 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 5,740,625  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      Federated NVIT High
 		 
      Income Bond Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 10,549,874       $ 22,380,864  
Net realized gains/(losses) from investment transactions
      132,255         (7,197,039 )
Net change in unrealized appreciation/(depreciation) from investments
      (4,941,504 )       70,960,751  
                     
Change in net assets resulting from operations
      5,740,625         86,144,576  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (3,001,598 )       (7,217,773 )
Class III
      (4,999,817 )       (14,458,061 )
                     
Change in net assets from shareholder distributions
      (8,001,415 )       (21,675,834 )
                     
Change in net assets from capital transactions
      (87,955,019 )       75,422,001  
                     
Change in net assets
      (90,215,809 )       139,890,743  
                     
                     
Net Assets:
                   
Beginning of period
      297,231,625         157,340,882  
                     
End of period
    $ 207,015,816       $ 297,231,625  
                     
Accumulated undistributed net investment income at end of period
    $ 3,742,752       $ 1,194,293  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 6,702,683       $ 14,867,859  
Dividends reinvested
      3,001,598         7,217,773  
Cost of shares redeemed
      (14,123,274 )       (26,135,374 )
                     
Total Class I
      (4,418,993 )       (4,049,742 )
                     
Class III Shares
                   
Proceeds from shares issued
      111,261,371         155,115,923  
Dividends reinvested
      4,999,817         14,458,061  
Cost of shares redeemed
      (199,797,214 )       (90,102,241 )
                     
Total Class III
      (83,536,026 )       79,471,743  
                     
Change in net assets from capital transactions
    $ (87,955,019 )     $ 75,422,001  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      964,010         2,489,593  
Reinvested
      453,769         1,257,738  
Redeemed
      (2,108,072 )       (4,445,757 )
                     
Total Class I Shares
      (690,293 )       (698,426 )
                     
Class III Shares
                   
Issued
      16,356,606         28,006,733  
Reinvested
      755,751         2,453,646  
Redeemed
      (29,950,046 )       (16,274,472 )
                     
Total Class III Shares
      (12,837,689 )       14,185,907  
                     
Total change in shares
      (13,527,982 )       13,487,481  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Federated NVIT High Income Bond Fund
 
                                                                                                                                               
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 6 .60       0 .29       (0 .08)       0 .21       (0 .25)       (0 .25)       –        $ 6 .56       3 .25%     $ 77,613,717         0 .93%       8 .89%       0 .93%       38 .71%    
Year Ended December 31, 2009 (e)
  $ 4 .98       0 .58       1 .61       2 .19       (0 .57)       (0 .57)       –        $ 6 .60       46 .00%     $ 82,596,487         0 .94%       9 .89%       0 .94%       34 .23%    
Year Ended December 31, 2008
  $ 7 .64       0 .62       (2 .66)       (2 .04)       (0 .62)       (0 .62)       –        $ 4 .98       (28 .13%)     $ 65,854,240         0 .90%       8 .80%       0 .90%       30 .09%    
Year Ended December 31, 2007
  $ 7 .98       0 .60       (0 .36)       0 .24       (0 .59)       (0 .59)       0 .01     $ 7 .64       3 .13%     $ 121,100,406         0 .95%       7 .24%       0 .95%       42 .02%    
Year Ended December 31, 2006
  $ 7 .77       0 .60       0 .19       0 .79       (0 .58)       (0 .58)       –        $ 7 .98       10 .60%     $ 155,024,233         0 .94%       7 .38%       0 .94%       42 .91%    
Year Ended December 31, 2005
  $ 8 .20       0 .64       (0 .46)       0 .18       (0 .61)       (0 .61)       –        $ 7 .77       2 .38%     $ 181,905,380         0 .96%       7 .35%       0 .96%       37 .06%    
                                                                                                                                               
Class III Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 6 .59       0 .29       (0 .08)       0 .21       (0 .25)       (0 .25)       –        $ 6 .55       3 .23%     $ 129,402,099         0 .93%       8 .82%       0 .93%       38 .71%    
Year Ended December 31, 2009 (e)
  $ 4 .97       0 .57       1 .62       2 .19       (0 .57)       (0 .57)       –        $ 6 .59       46 .08%     $ 214,635,138         0 .94%       9 .64%       0 .94%       34 .23%    
Year Ended December 31, 2008
  $ 7 .63       0 .62       (2 .67)       (2 .05)       (0 .61)       (0 .61)       –        $ 4 .97       (28 .24%)     $ 91,486,642         1 .04%       8 .61%       1 .04%       30 .09%    
Year Ended December 31, 2007
  $ 7 .97       0 .60       (0 .36)       0 .24       (0 .59)       (0 .59)       0 .01     $ 7 .63       3 .17%     $ 110,021,994         0 .91%       7 .28%       0 .91%       42 .02%    
Year Ended December 31, 2006
  $ 7 .76       0 .57       0 .22       0 .79       (0 .58)       (0 .58)       –        $ 7 .97       10 .60%     $ 103,857,357         0 .96%       7 .37%       0 .96%       42 .91%    
Period Ended December 31, 2005 (f)
  $ 7 .83       0 .39       0 .01       0 .40       (0 .47)       (0 .47)       –        $ 7 .76       5 .14%     $ 63,264,112         0 .95%       7 .23%       0 .95%       37 .06%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from April 28, 2005 (commencement of operations) through December 31, 2005.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Federated NVIT High Income Bond Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Prior to May 21, 2010, debt and other fixed-income securities (other than short-term obligations) were valued at the mean of the bid and asked prices and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Effective May 21, 2010, debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
  $ 231,724     $ —     $ —     $ 231,724      
 
 
Corporate Bonds
    —       201,632,197       —       201,632,197      
 
 
Mutual Fund
    1,052,419       —       —       1,052,419      
 
 
Preferred Stock
    —       526,997       —       526,997      
 
 
Warrant
    —       —       —       —      
 
 
Total Assets
  $ 1,284,143     $ 202,159,194     $ —     $ 203,443,337      
 
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
 
 
18 Semiannual Report 2010

 

 
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                                 
        Common
 		  Corporate
 		       
        Stocks   Bonds   Total    
 
    Balance as of 12/31/09   $ —     $ —     $ —      
 
 
    Accrued Accretion/(Amortization)     —       —       —      
 
 
    Change in Unrealized Appreciation/(Depreciation)     —       (29,638 )     (29,638 )    
 
 
    Net Purchases/(Sales)     —       —       —      
 
 
    Transfers Into Level 3     —       29,638       29,638      
 
 
    Transfers Out of Level 3     —       —       —      
 
 
    Balance as of 6/30/10   $ —     $ —     $ —      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
Changes in valuation may result in transfers in or out of an investment’s assigned level within the hierarchy. The Fund recognizes transfers between levels during the fiscal period in which a change in valuation inputs occurs. These Level 3 corporate bond investments, valued at $29,638 as of December 31, 2009, were transferred from Level 2 to Level 3 during the period ended June 30, 2010. This transfer occurred because the investment was no longer valued on a daily basis by the Fund’s pricing vendor. As of June 30, 2010, the investments are valued at $0.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
merits and consideration of the relevant taxing authorities’ widely understood administrative practices and precedents. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Federated Investment Management Company (“Federated”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of Federated.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $50 million     0.80%      
 
 
    $50 million up to $250 million     0.65%      
 
 
    $250 million up to $500 million     0.60%      
 
 
    $500 million and more     0.55%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $333,812 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement are based on the sum of the following: (i) the amount
 
 
 
20 Semiannual Report 2010

 

 
 
payable by NFM to its sub-administrator and sub-transfer agent; and (ii) a percentage of the combined average daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class III shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $179,315 in Administrative Services fees from the Fund.
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $415.
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $810,672.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $215,772.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $92,258,029 and sales of $174,017,025 (excluding short-term securities).
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s
 
 
 
22 Semiannual Report 2010

 

 
 
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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 207,595,042     $ 10,216,274     $ (14,367,979 )   $ (4,151,705 )    
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 23

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
24 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Federated NVIT High Income Bond Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Federated Investment Management Company (“Federated”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning first to performance, the Trustees noted that the Fund’s performance for Class I shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Group, and that the Fund’s performance for Class I shares for the three-year period ended September 30, 2009 was in the third quintile and below the median of its Peer Group. The Trustees also noted that the Fund’s performance for Class I shares was in the fifth quintile of its Peer Group for the five-year period ended September 30, 2009. The Trustees noted that for each of the one-, three-, and five-year periods ended September 30, 2009, the Fund underperformed its benchmark, the Barclays Capital U.S. Corporate High Yield 2% Issuer Cap Index. The Trustees further noted that the Fund has been on the watch list since the fourth quarter of 2008 and that it is under close review.
 
Turning next to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class I shares were in the fourth and fifth quintiles of its Peer Group, respectively. The Trustees also noted that the Fund’s total expenses were in the fourth quintile of its Peer Group. The Trustees then noted that the Fund’s total expenses are seven basis points above the Peer Group median. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule includes breakpoints, and that the first two breakpoints have been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 25

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 27

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 29

 

 

NVIT Developing Markets Fund (formerly, Gartmore NVIT Developing Markets Fund)
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
9
   
Statement of Operations
       
10
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
20
   
Supplemental Information
       
23
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-DMKT (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Developing Markets Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Developing Markets Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class II Shares
    Actual       1,000.00       935.10       7.44       1.55  
      Hypothetical b     1,000.00       1,017.11       7.75       1.55  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Developing Markets Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    94 .2%
Mutual Fund
    4 .8%
Preferred Stock
    2 .4%
Liabilities in excess of other assets
    (1 .4)%
         
      100 .0%
         
         
Top Industries †    
 
Commercial Banks
    22 .9%
Metals & Mining
    10 .3%
Oil, Gas & Consumable Fuels
    8 .6%
Semiconductors & Semiconductor Equipment
    7 .7%
Wireless Telecommunication Services
    4 .1%
Automobiles
    3 .7%
Personal Products
    3 .6%
Auto Components
    2 .8%
Media
    2 .7%
Information Technology Services
    2 .7%
Other Industries
    30 .9%
         
      100 .0%
         
         
Top Holdings †    
 
Samsung Electronics Co., Ltd. 
    5 .4%
Invesco Liquid Assets Portfolio — Institutional Class
    4 .8%
Industrial & Commercial Bank of China, H Shares
    3 .4%
China Construction Bank Corp., H Shares
    3 .4%
Randgold Resources Ltd. 
    3 .0%
Petroleo Brasileiro SA — Preference Shares
    2 .9%
Hyundai Mobis
    2 .8%
Naspers Ltd. N Shares
    2 .7%
Sberbank of Russian Federation
    2 .5%
KOC Holding AS
    2 .4%
Other Holdings
    66 .7%
         
      100 .0%
         
Top Countries †    
 
China
    14 .1%
South Korea
    13 .2%
Brazil
    10 .8%
Hong Kong
    8 .0%
Russia
    7 .8%
Indonesia
    6 .6%
Taiwan
    6 .6%
India
    6 .6%
Turkey
    5 .4%
United States
    4 .8%
Other Countries
    16 .1%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Developing Markets Fund
 
                 
                 
Common Stocks 94.2%
                 
      Shares       Market
Value 		 
 
 
BRAZIL 8.6%
Beverages 1.5%
Cia de Bebidas das Americas ADR-BR
    24,095     $ 2,433,836  
                 
Health Care Providers & Services 1.1%
Diagnosticos Da America SA
    196,100       1,844,752  
                 
Oil, Gas & Consumable Fuels 4.0%
Petroleo Brasileiro SA — Common Shares ADR-BR
    49,500       1,698,840  
Petroleo Brasileiro SA — Preference Shares ADR-BR
    162,821       4,852,066  
                 
              6,550,906  
                 
Personal Products 2.0%
Hypermarcas SA*
    253,588       3,252,389  
                 
              14,081,883  
                 
 
 
CHINA 14.3%
Commercial Banks 6.9%
China Construction Bank Corp., H Shares
    6,955,000       5,598,869  
Industrial & Commercial Bank of China, H Shares
    7,861,000       5,713,806  
                 
              11,312,675  
                 
Hotels, Restaurants & Leisure 1.4%
Ctrip.com International Ltd. ADR-CN*
    59,800       2,246,088  
                 
Insurance 1.7%
China Life Insurance Co. Ltd. H Shares
    614,000       2,685,163  
                 
Internet Software & Services 1.0%
Tencent Holdings Ltd.
    101,900       1,688,203  
                 
Multiline Retail 1.7%
Parkson Retail Group Ltd.
    1,689,500       2,847,796  
                 
Oil, Gas & Consumable Fuels 1.6%
PetroChina Co., Ltd., H Shares
    2,408,000       2,663,404  
                 
              23,443,329  
                 
 
 
EGYPT 1.8%
Commercial Banks 1.8%
Commercial International Bank
    244,955       2,867,634  
                 
 
 
HONG KONG 8.1%
Oil, Gas & Consumable Fuels 2.3%
CNOOC Ltd.
    2,225,600       3,782,804  
                 
Paper & Forest Products 1.1%
Nine Dragons Paper Holdings Ltd.
    1,329,000       1,790,457  
                 
Personal Products 1.6%
Hengan International Group Co., Ltd
    325,000       2,631,668  
                 
Real Estate Management & Development 2.0%
China Resources Land Ltd.
    1,718,000       3,230,239  
                 
Specialty Retail 0.7%
Belle International Holdings Ltd.
    795,000       1,127,855  
                 
Textiles, Apparel & Luxury Goods 0.4%
XTEP International Holdings
    852,000       700,350  
                 
              13,263,373  
                 
 
 
INDIA 6.7%
Automobiles 1.7%
Hero Honda Motors Ltd.
    61,678       2,705,676  
                 
Commercial Banks 1.2%
ICICI Bank Ltd.
    111,864       2,045,917  
                 
Information Technology Services 2.8%
HCL Technologies Ltd.
    256,569       1,994,476  
Tata Consultancy Services Ltd.
    158,488       2,543,230  
                 
              4,537,706  
                 
Machinery 1.0%
Tata Motors Ltd.
    100,749       1,668,356  
                 
              10,957,655  
                 
 
 
INDONESIA 6.7%
Automobiles 2.1%
Astra International Tbk PT
    641,000       3,386,715  
                 
Commercial Banks 4.6%
Bank Mandiri Tbk PT
    5,850,000       3,833,319  
Bank Rakyat Indonesia PT
    3,688,500       3,744,781  
                 
              7,578,100  
                 
              10,964,815  
                 
 
 
JERSEY, CHANNEL ISLANDS 3.0%
Metals & Mining 3.0%
Randgold Resources Ltd. ADR-CI
    52,300       4,955,425  
                 
 
 
LUXEMBOURG 1.2%
Metals & Mining 1.2%
Ternium SA ADR-LU
    61,200       2,014,704  
                 
 
 
MEXICO 2.0%
Food & Staples Retailing 1.0%
Wal-Mart de Mexico SAB de CV
    709,196       1,571,050  
                 
Wireless Telecommunication Services 1.0%
America Movil SAB de CV ADR-MX, Series L
    35,250       1,674,375  
                 
              3,245,425  
                 
 
 
NETHERLANDS 1.9%
Wireless Telecommunication Services 1.9%
VimpelCom Ltd. ADR-NL*
    188,700       3,053,166  
                 
 
 
PERU 2.4%
Commercial Banks 1.8%
Credicorp Ltd.
    32,600       2,963,014  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Developing Markets Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
PERU (continued)
Metals & Mining 0.6%
Cia de Minas Buenaventura SA ADR-PE
    25,177     $ 967,804  
                 
              3,930,818  
                 
 
 
RUSSIA 7.9%
Commercial Banks 2.5%
Sberbank of Russian Federation
    1,709,123       4,106,252  
                 
Food & Staples Retailing 1.3%
X5 Retail Group NV REG GDR-RU*
    63,392       2,127,379  
                 
Food Products 1.3%
Wimm-Bill-Dann Foods OJSC ADR-RU
    118,146       2,102,999  
                 
Metals & Mining 0.7%
MMC Norilsk Nickel ADR-RU*
    82,259       1,179,026  
                 
Oil, Gas & Consumable Fuels 0.8%
Rosneft Oil Co. GDR-RU
    202,026       1,231,999  
                 
Wireless Telecommunication Services 1.3%
Mobile Telesystems OJSC ADR-RU*
    109,802       2,103,806  
                 
              12,851,461  
                 
 
 
SOUTH AFRICA 2.8%
Media 2.8%
Naspers Ltd. N Shares
    134,925       4,543,665  
                 
 
 
SOUTH KOREA 13.4%
Auto Components 2.9%
Hyundai Mobis
    27,851       4,671,295  
                 
Commercial Banks 1.3%
KB Financial Group, Inc.
    57,447       2,201,988  
                 
Internet Software & Services 1.4%
NHN Corp.*
    15,052       2,238,672  
                 
Metals & Mining 1.3%
POSCO
    5,611       2,126,069  
                 
Semiconductors & Semiconductor Equipment 6.5%
Hynix Semiconductor, Inc.*
    92,410       1,867,889  
Samsung Electronics Co., Ltd.
    14,086       8,834,940  
                 
              10,702,829  
                 
                 
              21,940,853  
                 
 
 
TAIWAN 6.7%
Capital Markets 1.0%
Yuanta Financial Holding Co., Ltd.*
    3,069,000       1,638,249  
                 
Computers & Peripherals 2.0%
Compal Electronics, Inc.
    2,787,700       3,320,160  
                 
Electronic Equipment, Instruments & Components 2.4%
Hon Hai Precision Industry Co., Ltd.*
    1,109,000       3,887,236  
                 
Semiconductors & Semiconductor Equipment 1.3%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR-TW
    216,700       2,114,992  
                 
              10,960,637  
                 
 
 
TURKEY 5.5%
Commercial Banks 3.0%
Turkiye Garanti Bankasi AS
    737,679       3,069,950  
Turkiye Halk Bankasi AS
    251,529       1,856,923  
                 
              4,926,873  
                 
Industrial Conglomerates 2.5%
KOC Holding AS
    1,186,770       4,014,130  
                 
              8,941,003  
                 
 
 
UNITED KINGDOM 1.2%
Metals & Mining 1.2%
Antofagasta PLC
    168,247       1,957,494  
                 
         
Total Common Stocks (cost $163,462,145)
    153,973,340  
         
                 
                 
Preferred Stock 2.4%
                 
                 
BRAZIL 2.4%
Metals & Mining 2.4%
Vale SA ADR-BR
    185,748       3,904,423  
                 
         
Total Preferred Stock
(cost $5,184,229)
    3,904,423  
         
                 
                 
Mutual Fund 4.8%
                 
                 
Money Market Fund 4.8%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    7,901,006       7,901,006  
                 
Total Mutual Fund (cost $7,901,006)
            7,901,006  
                 
         
Total Investments (cost $176,547,380) (b) — 101.4%
    165,778,769  
         
         
Liabilities in excess of other assets — (1.4)%
    (2,245,463 )
         
         
NET ASSETS — 100.0%
  $ 163,533,306  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AS Stock Corporation
 
 
 
6 Semiannual Report 2010

 

 
 
 
BR Brazil
 
CI Channel Islands
 
CN China
 
GDR Global Depositary Receipt
 
Ltd. Limited
 
LU Luxembourg
 
MX Mexico
 
NL Netherlands
 
NV Public Traded Company
 
OJSC Open Joint Stock Company
 
PE Peru
 
PLC Public Limited Company
 
PT Limited Liability Company
 
RU Russia
 
SA Stock Company
 
SAB de CV Public Traded Company
 
TW Taiwan
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Developing
 		 
      Markets Fund  
       
Assets:
         
Investments, at value (cost $176,547,380)
    $ 165,778,769  
Foreign currencies, at value (cost $153,678)
      153,137  
Dividends receivable
      699,181  
Receivable for investments sold
      2,453,730  
Receivable for capital shares issued
      9,906  
Reclaims receivable
      771  
Prepaid expenses and other assets
      3,164  
           
Total Assets
      169,098,658  
           
Liabilities:
         
Payable for investments purchased
      4,367,928  
Payable for capital shares redeemed
      739,659  
Cash overdraft (Note 2)
      59,221  
Accrued expenses and other payables:
         
Investment advisory fees
      131,473  
Fund administration fees
      9,585  
Distribution fees
      34,598  
Administrative servicing fees
      147,017  
Accounting and transfer agent fees
      8,702  
Trustee fees
      413  
Custodian fees
      49,378  
Compliance program costs (Note 3)
      1,406  
Professional fees
      13,608  
Other
      2,364  
           
Total Liabilities
      5,565,352  
           
Net Assets
    $ 163,533,306  
           
Represented by:
         
Capital
    $ 219,541,941  
Accumulated undistributed net investment income
      443,230  
Accumulated net realized losses from investment and foreign currency transactions
      (45,683,411 )
Net unrealized appreciation/(depreciation) from investments
      (10,768,611 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated
in foreign currencies
      157  
           
Net Assets
    $ 163,533,306  
           
Net Assets:
         
Class II Shares
    $ 163,533,306  
           
Total
    $ 163,533,306  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      29,094,216  
           
Total
      29,094,216  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 5.62  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Developing
 		 
      Markets Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 2,263  
Dividend income
      2,376,315  
Income from securities lending (Note 2)
      1,554  
Foreign tax withholding
      (147,937 )
           
Total Income
      2,232,195  
           
EXPENSES:
         
Investment advisory fees
      952,589  
Fund administration fees
      45,479  
Distribution fees Class II Shares
      250,681  
Administrative servicing fees Class II Shares
      250,681  
Professional fees
      16,233  
Printing fees
      12,136  
Trustee fees
      3,588  
Custodian fees
      7,571  
Accounting and transfer agent fees
      5,828  
Compliance program costs (Note 3)
      381  
Other
      4,841  
           
Total expenses before earnings credits
      1,550,008  
Earnings credit (Note 4)
      (3 )
           
Net Expenses
      1,550,005  
           
NET INVESTMENT INCOME
      682,190  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions †
      32,032,048  
Net realized losses from foreign currency transactions (Note 2)
      (221,231 )
           
Net realized gains from investment and foreign currency transactions
      31,810,817  
           
Net change in unrealized appreciation/(depreciation) from investments ††
      (47,903,886 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (1,501 )
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (47,905,387 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (16,094,570 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (15,412,380 )
           
 
 
 
†  Net of capital gain country taxes of $634,262.
 
††  Net of deferred capital gain country tax accrual on unrealized depreciation of $(294,680).
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statements of Changes in Net Assets
 
                     
      NVIT Developing Markets Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 682,190       $ 924,485  
Net realized gains/(losses) from investment and foreign currency transactions
      31,810,817         (42,306,957 )
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (47,905,387 )       114,273,706  
                     
Change in net assets resulting from operations
      (15,412,380 )       72,891,234  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      –         (1,155,701 )
Return of Capital:
                   
Class II
      –         (655,820 )
                     
Change in net assets from shareholder distributions
      –         (1,811,521 )
                     
Change in net assets from capital transactions
      (50,879,597 )       49,629,480  
                     
Change in net assets
      (66,291,977 )       120,709,192  
                     
                     
Net Assets:
                   
Beginning of period
      229,825,283         109,116,091  
                     
End of period
    $ 163,533,306       $ 229,825,283  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ 443,230       $ (183,562 )
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 25,631,032       $ 113,032,836  
Dividends reinvested
      –         1,811,521  
Cost of shares redeemed
      (76,510,629 )       (65,214,877 )
                     
Change in net assets from capital transactions
    $ (50,879,597 )     $ 49,629,480  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      4,224,463         23,184,889  
Reinvested
      –         390,624  
Redeemed
      (13,369,852 )       (14,407,350 )
                     
Total change in shares
      (9,145,389 )       9,168,163  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Developing Markets Fund
 
                                                                                                                                                         
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                           
                and
 		                                                                Ratio of
 		         
                Unrealized
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Gains
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover    
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 6 .01       0 .01       (0 .40)       (0 .39)       –          –          –          –        $ 5 .62       (6 .49%)     $ 163,533,306         1 .55%       0 .33%       1 .55%       114 .39%    
Year Ended December 31, 2009 (d)
  $ 3 .75       0 .03       2 .29       2 .32       (0 .04)       –          (0 .02)       (0 .06)     $ 6 .01       62 .23%     $ 229,825,283         1 .53%       0 .58%       1 .56%       124 .25%    
Year Ended December 31, 2008
  $ 19 .34       0 .11       (8 .85)       (8 .74)       (0 .10)       (6 .75)       –          (6 .85)     $ 3 .75       (57 .86%)     $ 109,116,091         1 .62%       0 .89%       1 .85%       67 .43%    
Year Ended December 31, 2007
  $ 15 .68       0 .09       6 .17       6 .26       (0 .08)       (2 .52)       –          (2 .60)     $ 19 .34       43 .51%     $ 543,834,621         1 .56%       0 .50%       1 .56%       98 .49%    
Year Ended December 31, 2006
  $ 13 .04       0 .08       3 .96       4 .04       (0 .08)       (1 .32)       –          (1 .40)     $ 15 .68       34 .57%     $ 364,233,390         1 .65%       0 .57%       1 .65%(e)       133 .28%    
Year Ended December 31, 2005
  $ 11 .83       0 .07       3 .17       3 .24       (0 .07)       (1 .96)       –          (2 .03)     $ 13 .04       31 .52%     $ 313,051,603         1 .77%       0 .49%       1 .77%(e)       157 .77%    
Amounts designated as “–” are zero or have been rounded to zero.
(a) Not annualized for periods less than one year.
(b) Annualized for periods less than one year.
(c) During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(d) Per share calculations were performed using average shares method.
(e) There were no fee reductions during the period.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Developing Markets Fund (formerly, Gartmore NVIT Developing Markets Fund) (the “Fund”), a series of the Trust.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
12 Semiannual Report 2010

 

 
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Assets:
                                   
Common Stocks
                                   
Auto Components
  $ —     $ 4,671,295     $ —     $ 4,671,295      
Automobiles
    —       6,092,391       —       6,092,391      
Beverages
    2,433,836       —       —       2,433,836      
Capital Markets
    —       1,638,249       —       1,638,249      
Commercial Banks
    2,963,014       35,039,439       —       38,002,453      
Computers & Peripherals
    —       3,320,160       —       3,320,160      
Electronic Equipment, Instruments & Components
    —       3,887,236       —       3,887,236      
Food & Staples Retailing
    1,571,050       2,127,379       —       3,698,429      
Food Products
    2,102,999       —       —       2,102,999      
Health Care Providers & Services
    1,844,752       —       —       1,844,752      
Hotels, Restaurants & Leisure
    2,246,088       —       —       2,246,088      
Industrial Conglomerates
    —       4,014,130       —       4,014,130      
Information Technology Services
    —       4,537,706       —       4,537,706      
Insurance
    —       2,685,163       —       2,685,163      
Internet Software & Services
    —       3,926,875       —       3,926,875      
Machinery
    —       1,668,356       —       1,668,356      
Media
    —       4,543,665       —       4,543,665      
Metals & Mining
    7,937,933       5,262,589       —       13,200,522      
Multiline Retail
    —       2,847,796       —       2,847,796      
Oil, Gas & Consumable Fuels
    6,550,906       7,678,207       —       14,229,113      
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Paper & Forest Products
  $ —     $ 1,790,457     $ —     $ 1,790,457      
Personal Products
    3,252,389       2,631,668       —       5,884,057      
Real Estate Management & Development
    —       3,230,239       —       3,230,239      
Semiconductors & Semiconductor Equipment
    2,114,992       10,702,829       —       12,817,821      
Specialty Retail
    —       1,127,855       —       1,127,855      
Textiles, Apparel & Luxury Goods
    —       700,350       —       700,350      
Wireless Telecommunication Services
    6,831,347       —       —       6,831,347      
 
 
Total Common Stocks
    39,849,306       114,124,034       —       153,973,340      
 
 
Mutual Fund
    7,901,006       —       —       7,901,006      
 
 
Preferred Stock
                                   
Metals & Mining
    3,904,423       —       —       3,904,423      
 
 
Total Preferred Stock
    3,904,423       —       —       3,904,423      
 
 
Total Assets
  $ 51,654,735     $ 114,124,034     $ —     $ 165,778,769      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $59,221 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the
 
 
 
14 Semiannual Report 2010

 

 
 
portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had no securities on loan.
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. Beginning May 3, 2010, NFA has selected Baring International Investment Limited (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser. Prior to May 3, 2010, Gartmore Global Partners was the subadviser for the Fund.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $500 million     0.95%      
 
 
    $500 million up to $2 billion     0.90%      
 
 
    $2 billion and more     0.85%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadvisers $336,433 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 1.20% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
 
 
16 Semiannual Report 2010

 

 
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                             
    Fiscal Year
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ —     $ 230,275     $ 50,322     $ —     $ 280,597      
 
 
Amounts designated as “—”, are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $250,681 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $381.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $220,960,003 and sales of $276,886,813 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may
 
 
 
18 Semiannual Report 2010

 

 
 
carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 179,815,944     $ 3,513,554     $ (17,550,729)     $ (14,037,175)      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 19

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft
 
 
 
20 Semiannual Report 2010

 

 
 
dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Developing Markets Fund
 
After noting that the Board was scheduled to consider the termination of Gartmore Global Partners (“GGP”) as sub-adviser to the Fund and the proposed appointment of Baring International Investment Limited (“Baring”) as the new sub-adviser to the Fund later in the meeting, the Trustees agreed that, in addition to considering the continuation of the investment advisory agreement with NFA, it was prudent to consider the continuation of the Fund’s sub-advisory agreement with GGP in order to allow for the scheduling of an orderly sub-adviser transition. The Trustees took these factors into account when considering the continuation of the Fund’s sub-advisory agreement with GGP. The Trustees also reviewed the nature, extent, and quality of the services provided to the Fund by NFA and GGP, the Fund’s current sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group. The Trustees also noted that, for each period, the Fund underperformed its benchmark, the MSCI Emerging Markets Index. The Trustees also noted that the Fund has been on the watch list since the third quarter of 2008 and that it is under close review.
 
The Trustees noted that the Board previously approved the elimination of the performance-based fee structure applicable to the Fund effective December 1, 2008, which reduced the Fund’s investment advisory fee to the lowest level possible under the performance fee structure. The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the first quintile of its Peer Group. The Trustees noted that NFA’s elimination of the performance-based fee structure had improved the Fund’s Peer Group rankings. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreement
 
At the March 11, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved the replacement of GGP as a sub-adviser to the Fund with Baring as a sub-adviser to the Fund. The Trustees were provided with detailed materials relating to Baring in advance of
 
 
 
2010 Semiannual Report 21

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
and at these meetings. The material factors and conclusions that formed the basis for the approval are discussed below.
 
The Board reviewed GGP’s performance record for the one-, three-, and five-year periods ended December 31, 2009, noting that the Fund had underperformed relative to the Fund’s benchmark and Lipper peer group. The Board reviewed Baring’s investment strategy for emerging markets investments, as well as Baring’s process and historical composite performance record with respect to such investments. The Board also examined and considered the experience of the investment personnel of Baring that would be managing the Fund. The Trustees concluded that the historical investment performance record of Baring, in combination with various other factors, supported a decision to approve the sub-advisory agreement.
 
The Board considered the Fund’s overall fee level and noted that the overall expenses of the Fund would remain the same under the sub-advisory agreement, as Baring’s fee is paid out of the advisory fee that NFA receives from the Fund. The Board concluded that the sub-advisory fees to be paid to Baring were fair and reasonable.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are identical in all material respects as the terms of the sub-advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by Baring were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
22 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
26 Semiannual Report 2010

 

 
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Gartmore NVIT International Equity Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
23
   
Supplemental Information
       
25
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-IE (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Gartmore NVIT International Equity Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
Gartmore NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
International Equity Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       863.00       5.03       1.09  
      Hypothetical b     1,000.00       1,019.39       5.46       1.09  
 
 
Class III Shares
    Actual       1,000.00       863.20       5.04       1.09  
      Hypothetical b     1,000.00       1,019.39       5.46       1.09  
 
 
Class VI Shares
    Actual       1,000.00       862.50       6.19       1.34  
      Hypothetical b     1,000.00       1,018.15       6.71       1.34  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Gartmore NVIT International Equity Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    96 .7%
Mutual Fund
    1 .7%
Other assets in excess of liabilities
    1 .6%
         
      100 .0%
         
Top Industries †    
 
Commercial Banks
    14 .9%
Metals & Mining
    9 .2%
Pharmaceuticals
    8 .8%
Semiconductors & Semiconductor Equipment
    6 .4%
Insurance
    6 .1%
Food Products
    5 .0%
Industrial Conglomerates
    4 .8%
Oil, Gas & Consumable Fuels
    4 .6%
Electronic Equipment, Instruments & Components
    3 .9%
Household Durables
    3 .9%
Other Industries
    32 .4%
         
      100 .0%
         
Top Holdings †    
 
Novartis AG
    3 .5%
Sanofi-Aventis SA
    3 .3%
Zurich Financial Services AG
    3 .2%
Centrica PLC
    3 .0%
Rolls-Royce Group PLC
    2 .8%
Koninklijke Philips Electronics NV
    2 .6%
Imperial Tobacco Group PLC
    2 .6%
Bank Mandiri Tbk PT
    2 .6%
Samsung Electronics Co. Ltd. REG
    2 .5%
Wharf Holdings Ltd. 
    2 .3%
Other Holdings
    71 .6%
         
      100 .0%
         
Top Countries †    
 
United Kingdom
    15 .0%
Switzerland
    14 .2%
Japan
    13 .7%
Netherlands
    8 .0%
Canada
    7 .5%
Germany
    4 .7%
Australia
    4 .5%
Hong Kong
    4 .5%
France
    4 .1%
Brazil
    3 .9%
Other Countries
    19 .9%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Gartmore NVIT International Equity Fund
 
                 
                 
Common Stocks 96.7%
                 
      Shares       Market
Value 		 
 
 
AUSTRALIA 4.5%
Commercial Banks 0.9%
Australia & New Zealand Banking Group Ltd.
    41,980     $ 754,019  
                 
Information Technology Services 2.1%
Computershare Ltd.
    185,840       1,643,510  
                 
Metals & Mining 1.5%
BHP Billiton Ltd.
    24,380       758,451  
MacArthur Coal Ltd.
    44,220       441,907  
                 
              1,200,358  
                 
              3,597,887  
                 
 
 
BERMUDA 1.4%
Energy Equipment & Services 1.4%
Seadrill Ltd.
    64,400       1,161,644  
                 
 
 
BRAZIL 3.8%
Commercial Banks 2.4%
Banco Bradesco SA ADR-BR
    50,500       800,930  
Itau Unibanco Holding SA ADR-BR
    65,437       1,178,520  
                 
              1,979,450  
                 
Metals & Mining 0.7%
Vale SA ADR-BR
    25,670       539,584  
                 
Oil, Gas & Consumable Fuels 0.7%
Petroleo Brasileiro SA ADR-BR
    19,300       575,140  
                 
              3,094,174  
                 
 
 
CANADA 7.4%
Auto Components 1.1%
Magna International, Inc., Class A
    14,080       927,557  
                 
Chemicals 1.2%
Agrium, Inc.
    19,060       931,022  
                 
Commercial Banks 2.5%
National Bank of Canada
    21,900       1,120,149  
Toronto-Dominion Bank
    13,300       861,805  
                 
              1,981,954  
                 
Metals & Mining 2.6%
Barrick Gold Corp.
    17,600       799,216  
Teck Resources Ltd., Class B
    45,280       1,338,983  
                 
              2,138,199  
                 
              5,978,732  
                 
 
 
CHINA 1.6%
Commercial Banks 1.6%
China Construction Bank Corp., H Shares
    809,000       651,256  
Industrial & Commercial Bank of China, H Shares
    900,000       654,169  
                 
              1,305,425  
                 
FRANCE 4.0%
Automobiles 0.8%
Renault SA*
    17,990       666,843  
                 
Pharmaceuticals 3.2%
Sanofi-Aventis SA
    42,760       2,575,319  
                 
              3,242,162  
                 
 
 
GERMANY 4.6%
Chemicals 1.5%
Lanxess AG
    28,240       1,188,662  
                 
Insurance 1.5%
Allianz SE REG
    12,130       1,200,547  
                 
Semiconductors & Semiconductor Equipment 1.6%
Infineon Technologies AG*
    231,060       1,339,549  
                 
              3,728,758  
                 
 
 
HONG KONG 4.5%
Industrial Conglomerates 2.2%
Jardine Matheson Holdings Ltd.
    49,700       1,739,392  
                 
Real Estate Management & Development 2.3%
Wharf Holdings Ltd.
    382,000       1,850,623  
                 
              3,590,015  
                 
 
 
INDIA 0.0% †
Commercial Banks 0.0% †
HDFC Bank Ltd. ADR-IN
    20       2,859  
                 
 
 
INDONESIA 3.4%
Commercial Banks 2.6%
Bank Mandiri Tbk PT
    3,131,500       2,051,972  
                 
Food Products 0.8%
Indofoods Sukses Makmur Tbk PT
    1,421,000       643,684  
                 
              2,695,656  
                 
 
 
ISRAEL 2.0%
Pharmaceuticals 2.0%
Teva Pharmaceutical Industries Ltd. ADR-IL
    30,980       1,610,650  
                 
 
 
JAPAN 13.5%
Automobiles 1.6%
Honda Motor Co. Ltd.
    42,700       1,254,221  
                 
Capital Markets 0.9%
Nomura Holdings, Inc.
    134,200       733,200  
                 
Commercial Banks 0.4%
Sumitomo Mitsui Financial Group, Inc. ADR-JP
    118,700       332,360  
                 
Electronic Equipment, Instruments & Components 2.6%
Ibiden Co. Ltd.
    24,300       654,608  
Nippon Electric Glass Co. Ltd.
    126,000       1,443,272  
                 
              2,097,880  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Gartmore NVIT International Equity Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
JAPAN (continued)
                 
Household Durables 3.8%
Panasonic Corp.
    61,800     $ 771,688  
Sharp Corp.
    128,000       1,350,225  
Sony Corp. ADR-JP
    36,500       973,820  
                 
                 
              3,095,733  
                 
Office Electronics 1.1%
Canon, Inc.
    23,100       860,924  
                 
Trading Companies & Distributors 2.1%
Mitsubishi Corp.
    81,000       1,675,764  
                 
Wireless Telecommunication Services 1.0%
Softbank Corp.
    31,600       838,135  
                 
                 
              10,888,217  
                 
 
 
MEXICO 1.0%
Wireless Telecommunication Services 1.0%
America Movil SAB de CV ADR-MX, Series L
    16,600       788,500  
                 
 
 
NETHERLANDS 7.9%
Food Products 2.0%
Unilever NV CVA-NL
    57,296       1,564,709  
                 
Industrial Conglomerates 2.6%
Koninklijke Philips Electronics NV
    69,170       2,065,559  
                 
Oil, Gas & Consumable Fuels 1.2%
Royal Dutch Shell PLC, Class B
    40,740       984,715  
                 
Semiconductors & Semiconductor Equipment 2.1%
ASML Holding NV
    62,500       1,719,991  
                 
                 
              6,334,974  
                 
 
 
NORWAY 1.8%
Commercial Banks 1.8%
DnB NOR ASA
    151,300       1,455,234  
                 
 
 
SOUTH KOREA 2.5%
Semiconductors & Semiconductor Equipment 2.5%
Samsung Electronics Co. Ltd. REG GDR-KR
    6,400       2,001,641  
                 
 
 
SPAIN 0.9%
Commercial Banks 0.9%
Banco Santander SA
    68,000       713,061  
                 
 
 
SWITZERLAND 14.0%
Capital Markets 2.0%
Credit Suisse Group AG REG
    42,040       1,580,588  
                 
Electrical Equipment 1.9%
ABB Ltd. REG*
    87,500       1,523,428  
                 
Food Products 2.2%
Nestle SA REG
    36,500       1,759,987  
                 
Insurance 3.2%
Zurich Financial Services AG
    11,640       2,565,614  
                 
Metals & Mining 1.3%
Xstrata PLC
    82,800       1,084,238  
                 
Pharmaceuticals 3.4%
Novartis AG REG
    57,300       2,776,937  
                 
              11,290,792  
                 
 
 
TAIWAN 1.3%
Electronic Equipment, Instruments & Components 1.3%
Hon Hai Precision Industry Co., Ltd.*
    293,000       1,027,016  
                 
 
 
THAILAND 1.9%
Oil, Gas & Consumable Fuels 1.9%
Banpu PCL NVDR-TH
    84,020       1,556,142  
                 
 
 
UNITED KINGDOM 14.7%
Aerospace & Defense 2.8%
Rolls-Royce Group PLC*
    264,730       2,209,646  
Rolls-Royce Group PLC, Class C* (a)
    24,113,700       36,028  
                 
              2,245,674  
                 
Commercial Banks 1.5%
Standard Chartered PLC
    51,240       1,247,715  
                 
Insurance 1.3%
Prudential PLC
    144,140       1,087,192  
                 
Metals & Mining 2.8%
BHP Billiton PLC
    24,020       622,804  
Rio Tinto PLC
    38,290       1,681,482  
                 
              2,304,286  
                 
Multi-Utilities 3.0%
Centrica PLC
    542,190       2,392,696  
                 
Oil, Gas & Consumable Fuels 0.7%
BP PLC
    114,120       546,311  
                 
Tobacco 2.6%
Imperial Tobacco Group PLC
    73,850       2,063,420  
                 
              11,887,294  
                 
         
Total Common Stocks (cost $83,239,806)
    77,950,833  
         
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
                 
Mutual Fund 1.7%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 1.7%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    1,390,065     $ 1,390,065  
                 
         
Total Mutual Fund (cost $1,390,065)
    1,390,065  
         
         
Total Investments
(cost $84,629,871) (c) — 98.4%
    79,340,898  
         
Other assets in excess of liabilities — 1.6%
    1,324,295  
         
         
NET ASSETS — 100.0%
  $ 80,665,193  
         
 
* Denotes a non-income producing security.
 
(a) Fair Valued Security.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
ASA Stock Corporation
 
BR Brazil
 
CVA Dutch Certificate
 
GDR Global Depositary Receipt
 
IL Israel
 
IN India
 
JP Japan
 
KR South Korea
 
Ltd. Limited
 
MX Mexico
 
NL Netherlands
 
NV Public Traded Company
 
NVDR Non Voting Depository Receipt
 
PCL Public Company Limited
 
PLC Public Limited Company
 
PT Limited Liability Company
 
REG Registered Shares
 
SA Stock Company
 
SAB de CV Public Traded Company
 
SE Sweden
 
TH Thailand
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Gartmore NVIT
 		 
      International
 		 
      Equity Fund  
       
Assets:
         
Investments, at value (cost $84,629,871)
    $ 79,340,898  
Foreign currencies, at value (cost $186,748)
      193,724  
Dividends receivable
      154,574  
Receivable for investments sold
      2,742,501  
Receivable for capital shares issued
      94,811  
Reclaims receivable
      177,346  
Prepaid expenses and other assets
      970  
           
Total Assets
      82,704,824  
           
Liabilities:
         
Payable for investments purchased
      1,713,125  
Payable for capital shares redeemed
      120,962  
Cash overdraft (Note 2)
      11,368  
Payable for Thailand capital gain tax
      78,061  
Accrued expenses and other payables:
         
Investment advisory fees
      55,151  
Fund administration fees
      8,311  
Distribution fees
      3,486  
Administrative servicing fees
      10,680  
Accounting and transfer agent fees
      9,909  
Trustee fees
      183  
Custodian fees
      1,407  
Compliance program costs (Note 3)
      601  
Professional fees
      20,684  
Printing fees
      5,030  
Other
      673  
           
Total Liabilities
      2,039,631  
           
Net Assets
    $ 80,665,193  
           
Represented by:
         
Capital
    $ 103,034,775  
Accumulated undistributed net investment income
      973,077  
Accumulated net realized losses from investment and foreign currency transactions
      (17,982,130 )
Net unrealized appreciation/(depreciation) from investments †
      (5,367,034 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      6,505  
           
Net Assets
    $ 80,665,193  
           
Net Assets:
         
Class I Shares
    $ 7,683,234  
Class III Shares
      56,446,873  
Class VI Shares
      16,535,086  
           
Total
    $ 80,665,193  
           
†  Net of ($78,061) of deferred capital gain country tax
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
8 Semiannual Report 2010

 

 
 
           
           
      Gartmore NVIT
 		 
      International
 		 
      Equity Fund  
       
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      1,111,249  
Class III Shares
      8,152,850  
Class VI Shares
      2,397,185  
           
Total
      11,661,284  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 6.91  
Class III Shares
    $ 6.92  
Class VI Shares
    $ 6.90  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      Gartmore NVIT
 		 
      International
 		 
      Equity Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 1,731,289  
Income from securities lending (Note 2)
      477  
Foreign tax withholding
      (164,168 )
           
Total Income
      1,567,598  
           
EXPENSES:
         
Investment advisory fees
      366,430  
Fund administration fees
      28,437  
Distribution fees Class VI Shares
      22,163  
Administrative servicing fees Class I Shares
      6,730  
Administrative servicing fees Class III Shares
      48,678  
Administrative servicing fees Class VI Shares
      13,298  
Professional fees
      10,175  
Printing fees
      8,997  
Trustee fees
      1,618  
Custodian fees
      2,953  
Accounting and transfer agent fees
      6,579  
Compliance program costs (Note 3)
      167  
Other
      2,672  
           
Total expenses before earnings credits
      518,897  
Earnings credit (Note 5)
      (2 )
           
Net Expenses
      518,895  
           
NET INVESTMENT INCOME
      1,048,703  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions †
      1,738,986  
Net realized losses from foreign currency transactions (Note 2)
      (59,764 )
           
Net realized gains from investment and foreign currency transactions
      1,679,222  
           
Net change in unrealized appreciation/(depreciation) from investments ††
      (15,906,658 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      8,773  
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (15,897,885 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (14,218,663 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (13,169,960 )
           
 
 
† Net of capital gain country taxes of $194.
 
†† Net of increase in deferred capital gain country tax accrual on unrealized depreciation of $78,009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      Gartmore NVIT
 		 
      International Equity Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,048,703       $ 624,565  
Net realized gains/(losses) from investment and foreign currency transactions
      1,679,222         (3,737,623 )
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (15,897,885 )       20,728,688  
                     
Change in net assets resulting from operations
      (13,169,960 )       17,615,630  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (3,734 )       (81,043 )
Class III
      (25,342 )       (344,912 )
Class VI
      –         (46,402 )
Return of capital:
                   
Class I
      –         (12,653 )
Class III
      –         (53,849 )
Class VI
      –         (7,245 )
                     
Change in net assets from shareholder distributions
      (29,076 )       (546,104 )
                     
Change in net assets from capital transactions
      (6,562,209 )       29,481,746  
                     
Change in net assets
      (19,761,245 )       46,551,272  
                     
                     
Net Assets:
                   
Beginning of period
      100,426,438         53,875,166  
                     
End of period
    $ 80,665,193       $ 100,426,438  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ 973,077       $ (46,550 )
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 1,552,735       $ 4,222,611  
Dividends reinvested
      3,734         93,696  
Cost of shares redeemed
      (1,872,351 )       (6,962,799 )
                     
Total Class I
      (315,882 )       (2,646,492 )
                     
Class III Shares
                   
Proceeds from shares issued
      1,172,704         35,283,306  
Dividends reinvested
      25,342         398,761  
Cost of shares redeemed
      (6,521,284 )       (17,675,238 )
                     
Total Class III
      (5,323,238 )       18,006,829  
                     
Class VI Shares
                   
Proceeds from shares issued
      2,703,786         15,933,976  
Dividends reinvested
      –         53,647  
Cost of shares redeemed
      (3,626,875 )       (1,866,214 )
                     
Total Class VI
      (923,089 )       14,121,409  
                     
Change in net assets from capital transactions
    $ (6,562,209 )     $ 29,481,746  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      Gartmore NVIT
 		 
      International Equity Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      197,766         615,079  
Reinvested
      504         15,423  
Redeemed
      (251,869 )       (1,043,331 )
                     
Total Class I Shares
      (53,599 )       (412,829 )
                     
Class III Shares
                   
Issued
      152,225         4,928,278  
Reinvested
      3,415         65,562  
Redeemed
      (852,018 )       (2,696,869 )
                     
Total Class III Shares
      (696,378 )       2,296,971  
                     
Class VI Shares
                   
Issued
      350,117         2,291,999  
Reinvested
      –         8,791  
Redeemed
      (463,564 )       (275,423 )
                     
Total Class VI Shares
      (113,447 )       2,025,367  
                     
Total change in shares
      (863,424 )       3,909,509  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Gartmore NVIT International Equity Fund
 
                                                                                                                                                                   
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net
                                                                                 
                Realized
 		                                                                                 
                and
 		                                                                Ratio of Net
 		    Ratio of
 		         
                Unrealized
 		                                                          Ratio of
 		    Investment
 		    Expenses
 		         
    Net Asset
 		          Gains
 		                                                          Expenses
 		    Income
 		    (Prior to
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		                      Net Asset
 		          Net Assets
 		    to Average
 		    to Average
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
    Net
    Net
    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     Fees     of Period     Return (a)     Period     Assets (b)     Assets (b)     Net Assets (b)     Turnover (c)    
Class I Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 8 .01       0 .09       (1 .19)       (1 .10)       –          –          –          –          –        $ 6 .91       (13 .70%)     $ 7,683,234         1 .09%       2 .34%       1 .09%       66 .00%    
Year Ended December 31, 2009 (d)
  $ 6 .25       0 .08       1 .75       1 .83       (0 .06)       –          (0 .01)       (0 .07)       –        $ 8 .01       29 .72%     $ 9,333,669         1 .13%       1 .17%       1 .13%       330 .92%    
Year Ended December 31, 2008
  $ 14 .06       0 .14       (6 .09)       (5 .95)       (0 .15)       (1 .71)       –          (1 .86)       –        $ 6 .25       (46 .06%)     $ 9,856,592         1 .23%       1 .31%       1 .23%       139 .07%    
Year Ended December 31, 2007
  $ 12 .07       0 .04       3 .10       3 .14       (0 .05)       (1 .10)       –          (1 .15)       –        $ 14 .06       27 .15%     $ 22,903,021         1 .29%       0 .30%       1 .29%       151 .60%    
Year Ended December 31, 2006
  $ 9 .21       0 .08       2 .92       3 .00       (0 .12)       (0 .02)       –          (0 .14)       –        $ 12 .07       32 .96%     $ 16,082,262         1 .24%       0 .41%       1 .24%       169 .26%    
Year Ended December 31, 2005
  $ 7 .16       0 .07       2 .08       2 .15       (0 .08)       (0 .02)       –          (0 .10)       –        $ 9 .21       30 .21%     $ 6,301,605         1 .34%       0 .94%       1 .34%       215 .52%    
                                                                                                                                                                   
Class III Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 8 .02       0 .09       (1 .19)       (1 .10)       –          –          –          –          –        $ 6 .92       (13 .68%)     $ 56,446,873         1 .09%       2 .34%       1 .09%       66 .00%    
Year Ended December 31, 2009 (d)
  $ 6 .26       0 .07       1 .76       1 .83       (0 .06)       –          (0 .01)       (0 .07)       –        $ 8 .02       29 .67%     $ 71,006,135         1 .13%       0 .99%       1 .13%       330 .92%    
Year Ended December 31, 2008
  $ 14 .07       0 .15       (6 .10)       (5 .95)       (0 .15)       (1 .71)       –          (1 .86)       –        $ 6 .26       (46 .04%)     $ 40,987,136         1 .27%       1 .32%       1 .27%       139 .07%    
Year Ended December 31, 2007
  $ 12 .08       0 .06       3 .09       3 .15       (0 .06)       (1 .10)       –          (1 .16)       –        $ 14 .07       27 .15%     $ 106,245,421         1 .25%       0 .38%       1 .25%       151 .60%    
Year Ended December 31, 2006
  $ 9 .22       0 .07       2 .93       3 .00       (0 .12)       (0 .02)       –          (0 .14)       –        $ 12 .08       32 .95%     $ 75,014,627         1 .22%       0 .59%       1 .22%       169 .26%    
Year Ended December 31, 2005
  $ 7 .17       0 .06       2 .09       2 .15       (0 .08)       (0 .02)       –          (0 .10)       –        $ 9 .22       30 .17%     $ 37,647,023         1 .33%       0 .54%       1 .33%       215 .52%    
                                                                                                                                                                   
Class VI Shares
                                                                                                                                                                 
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 8 .00       0 .08       (1 .18)       (1 .10)       –          –          –          –          –        $ 6 .90       (13 .75%)     $ 16,535,086         1 .34%       2 .10%       1 .34%       66 .00%    
Year Ended December 31, 2009 (d)
  $ 6 .25       0 .03       1 .79       1 .82       (0 .06)       –          (0 .01)       (0 .07)       –        $ 8 .00       29 .45%     $ 20,086,634         1 .34%       0 .44%       1 .34%       330 .92%    
Period Ended December 31, 2008 (e)
  $ 13 .81       0 .07       (5 .79)       (5 .72)       (0 .13)       (1 .71)       –          (1 .84)       –        $ 6 .25       (44 .92%)     $ 3,031,438         1 .44%       0 .76%       1 .44%       139 .07%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)  Per share calculations were performed using average shares method.
(e)  For the period from May 1, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Gartmore NVIT International Equity Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
14 Semiannual Report 2010

 

 
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ —     $ 2,245,674     $ —     $ 2,245,674      
 
 
Auto Components
    927,557       —       —       927,557      
 
 
Automobiles
    —       1,921,064       —       1,921,064      
 
 
Capital Markets
    —       2,313,788       —       2,313,788      
 
 
Chemicals
    931,022       1,188,662       —       2,119,684      
 
 
Commercial Banks
    4,296,623       7,527,426       —       11,824,049      
 
 
Electrical Equipment
    —       1,523,428       —       1,523,428      
 
 
Electronic Equipment, Instruments & Components
    —       3,124,896       —       3,124,896      
 
 
Energy Equipment & Services
    —       1,161,644       —       1,161,644      
 
 
Food Products
    —       3,968,380       —       3,968,380      
 
 
Household Durables
    973,820       2,121,913       —       3,095,733      
 
 
Industrial Conglomerates
    —       3,804,951       —       3,804,951      
 
 
Information Technology Services
    —       1,643,510       —       1,643,510      
 
 
Insurance
    —       4,853,353       —       4,853,353      
 
 
Metals & Mining
    2,677,783       4,588,882       —       7,266,665      
 
 
Multi-Utilities
    —       2,392,696       —       2,392,696      
 
 
Office Electronics
    —       860,924       —       860,924      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Oil, Gas & Consumable Fuels
  $ 575,140     $ 3,087,168     $ —     $ 3,662,308      
 
 
Pharmaceuticals
    1,610,650       5,352,256       —       6,962,906      
 
 
Real Estate Management & Development
    —       1,850,623       —       1,850,623      
 
 
Semiconductors & Semiconductor Equipment
    —       5,061,181       —       5,061,181      
 
 
Tobacco
    —       2,063,420       —       2,063,420      
 
 
Trading Companies & Distributors
    —       1,675,764       —       1,675,764      
 
 
Wireless Telecommunication Services
    788,500       838,135       —       1,626,635      
 
 
Total Common Stocks
    12,781,095       65,169,738       —       77,950,833      
 
 
Mutual Fund
    1,390,065       —       —       1,390,065      
 
 
Total Assets
  $ 14,171,160     $ 65,169,738     $ —     $ 79,340,898      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $11,368 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
 
 
16 Semiannual Report 2010

 

 
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund did not have any securities on loan.
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
precedents. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Gartmore Global Partners (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $500 million     0.80%      
 
 
    $500 million up to $2 billion     0.75%      
 
 
    $2 billion and more     0.70%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $183,215 for the six months ended June 30, 2010.
 
Until April 30, 2010, the Trust and NFA had entered into a written Expense Limitation Agreement, which limited the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 1.05% for all share classes.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making
 
 
 
18 Semiannual Report 2010

 

 
 
such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the Fund had no cumulative potential reimbursements.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions;
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class III and Class VI shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $68,706 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $167.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class VI shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III and Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III and Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III and Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $4,507.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $7,765.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the
 
 
 
20 Semiannual Report 2010

 

 
 
safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $59,105,354 and sales of $67,395,865 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 84,903,987     $ 2,958,639     $ (8,521,728)     $ (5,563,089)      
 
 
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
22 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 23

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Gartmore NVIT International Equity Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Gartmore Global Partners, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Class III shares was in the first quintile of its Peer Group, while for the one-year period ended September 30, 2009, the Fund’s performance for Class III shares was in the fifth quintile of its Peer Group. The Trustees noted that, with respect to the five-year period ended September 30, 2009, the Fund’s Class III shares outperformed the Fund’s benchmark, the MSCI All Country World Ex-U.S. Index, but that, for each of the one- and three-year periods ended September 30, 2009, the Fund’s Class III shares underperformed its benchmark. The Trustees then noted that, for the three-year period ended September 30, 2009, the Fund’s performance was only 13 basis points below its benchmark. The Trustees noted that the Fund had an overall four-star Morningstar rating as of September 30, 2009, and that Morningstar had recently given the Fund a five-star rating for its five-year performance. The Trustees then noted that the Fund has been on the watch list since the second quarter of 2009.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee for Class III shares was in the fourth quintile of its Peer Group, but that the Fund’s actual advisory fee was in the third quintile and at the median of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class III shares were in the second quintile of its Peer Group. The Trustees then noted that NFA had eliminated the performance-based fee structure applicable to the Fund effective May 1, 2009, which reduced the Fund’s investment advisory fee to the lowest level possible under the performance fee structure and improved the Fund’s Peer Group rankings. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
24 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 27

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
28 Semiannual Report 2010

 

 
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Gartmore NVIT Worldwide Leaders Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
20
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-WWL (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Gartmore NVIT Worldwide Leaders Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expenses Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
Gartmore NVIT Worldwide
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Leaders Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       882.00       5.60       1.20  
      Hypothetical b     1,000.00       1,018.84       6.01       1.20  
 
 
Class III Shares
    Actual       1,000.00       882.00       5.60       1.20  
      Hypothetical b     1,000.00       1,018.84       6.01       1.20  
 
 
Class VI Shares
    Actual       1,000.00       881.90       6.25       1.34  
      Hypothetical b     1,000.00       1,018.15       6.71       1.34  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Gartmore NVIT Worldwide Leaders Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .0%
Mutual Fund
    1 .8%
Other assets in excess of liabilities
    1 .2%
         
      100 .0%
         
Top Industries †    
 
Commercial Banks
    8 .0%
Metals & Mining
    7 .0%
Semiconductors & Semiconductor Equipment
    6 .6%
Pharmaceuticals
    6 .2%
Diversified Financial Services
    5 .1%
Oil, Gas & Consumable Fuels
    5 .0%
Media
    4 .4%
Food Products
    4 .4%
Computers & Peripherals
    4 .3%
Textiles, Apparel & Luxury Goods
    4 .0%
Other Industries
    45 .0%
         
      100 .0%
         
Top Holdings †    
 
Unilever PLC
    4 .4%
Apple, Inc. 
    4 .3%
Polo Ralph Lauren Corp., Class A
    4 .0%
Pfizer, Inc. 
    4 .0%
JPMorgan Chase & Co. 
    3 .7%
American Express Co. 
    3 .7%
Centrica PLC
    3 .5%
Intel Corp. 
    3 .5%
Daimler AG
    3 .4%
PepsiCo, Inc. 
    3 .3%
Other Holdings
    62 .2%
         
      100 .0%
         
Top Countries †    
 
United States
    51 .6%
United Kingdom
    16 .9%
Germany
    8 .7%
Netherlands
    4 .1%
China
    3 .9%
Japan
    3 .6%
Ireland
    3 .2%
Switzerland
    2 .9%
Canada
    2 .2%
South Korea
    2 .0%
Other Countries
    0 .9%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Gartmore NVIT Worldwide Leaders Fund
 
                 
                 
Common Stocks 97.0%
                 
      Shares       Market
Value 		 
 
 
BRAZIL 0.6%
Metals & Mining 0.6%
Vale SA ADR-BR
    5,200     $ 109,304  
                 
 
 
CANADA 2.2%
Metals & Mining 2.2%
Teck Resources Ltd., Class B
    13,650       403,767  
                 
 
 
CHINA 3.8%
Commercial Banks 2.9%
China Construction Bank Corp., H Shares
    660,000       531,309  
                 
Health Care Providers & Services 0.9%
Sinopharm Group Co., Ltd. H Shares
    47,600       173,436  
                 
              704,745  
                 
 
 
GERMANY 8.6%
Automobiles 3.3%
Daimler AG REG*
    12,100       612,085  
                 
Industrial Conglomerates 3.1%
Siemens AG REG*
    6,300       563,470  
                 
Pharmaceuticals 2.2%
Bayer AG
    7,100       396,758  
                 
              1,572,313  
                 
 
 
IRELAND 3.2%
Information Technology Services 3.2%
Accenture PLC, Class A
    15,100       583,615  
                 
 
 
JAPAN 3.6%
Household Durables 1.8%
Sony Corp.
    11,900       317,409  
                 
Real Estate Management & Development 1.8%
Mitsubishi Estate Co., Ltd.
    24,000       334,120  
                 
              651,529  
                 
 
 
NETHERLANDS 4.1%
Oil, Gas & Consumable Fuels 3.0%
Royal Dutch Shell PLC, Class B
    22,810       551,334  
                 
Semiconductors & Semiconductor Equipment 1.1%
ASML Holding NV
    7,250       199,519  
                 
              750,853  
                 
 
 
SOUTH KOREA 2.0%
Semiconductors & Semiconductor Equipment 2.0%
Samsung Electronics Co., Ltd.
    570       357,512  
                 
 
 
SWITZERLAND 2.8%
Capital Markets 2.8%
Credit Suisse Group AG REG
    13,800       518,842  
                 
 
 
TAIWAN 0.3%
Electronic Equipment, Instruments & Components 0.3%
Hon Hai Precision Industry Co., Ltd.*
    15,000       52,577  
                 
UNITED KINGDOM 16.7%
Aerospace & Defense 1.3%
Rolls-Royce Group PLC*
    29,600       247,065  
                 
Diversified Telecommunication Services 2.9%
BT Group PLC
    272,900       526,778  
                 
Food Products 4.3%
Unilever PLC
    29,600       791,268  
                 
Metals & Mining 2.7%
Rio Tinto PLC
    11,200       491,841  
                 
Multi-Utilities 3.5%
Centrica PLC
    144,100       635,917  
                 
Wireless Telecommunication Services 2.0%
Vodafone Group PLC
    175,200       360,998  
                 
              3,053,867  
                 
 
 
UNITED STATES 49.1%
Air Freight & Logistics 1.0%
FedEx Corp.
    2,600       182,286  
                 
Beverages 3.2%
PepsiCo, Inc.
    9,700       591,215  
                 
Chemicals 2.7%
Praxair, Inc.
    6,500       493,935  
                 
Commercial Banks 5.0%
PNC Financial Services Group, Inc.
    7,260       410,190  
Wells Fargo & Co.
    19,580       501,248  
                 
              911,438  
                 
Computers & Peripherals 4.2%
Apple, Inc.*
    3,080       774,712  
                 
Consumer Finance 3.6%
American Express Co.
    16,700       662,990  
                 
Diversified Financial Services 5.0%
Bank of America Corp.
    17,600       252,912  
JPMorgan Chase & Co.
    18,296       669,816  
                 
              922,728  
                 
Machinery 2.5%
PACCAR, Inc.
    11,400       454,518  
                 
Media 4.4%
CBS Corp. Non-Voting, Class B
    34,700       448,671  
News Corp., Class B
    25,200       349,020  
                 
              797,691  
                 
Metals & Mining 1.4%
Freeport-McMoRan Copper & Gold, Inc.
    4,420       261,355  
                 
Oil, Gas & Consumable Fuels 2.0%
Hess Corp.
    7,100       357,414  
                 
Pharmaceuticals 3.9%
Pfizer, Inc.
    50,300       717,278  
                 
Semiconductors & Semiconductor Equipment 3.5%
Intel Corp.
    32,488       631,892  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Gartmore NVIT Worldwide Leaders Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
                 
Software 2.7%
Microsoft Corp.
    21,400     $ 492,414  
                 
Textiles, Apparel & Luxury Goods 4.0%
Polo Ralph Lauren Corp., Class A
    10,000       729,600  
                 
              8,981,466  
                 
         
Total Common Stocks (cost $18,627,818)
    17,740,390  
         
                 
                 
Mutual Fund 1.8%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 1.8%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    334,599       334,599  
                 
         
Total Mutual Fund (cost $334,599)
    334,599  
         
         
Total Investments
(cost $18,962,417) (b) — 98.8%
    18,074,989  
         
Other assets in excess of liabilities — 1.2%
    228,430  
         
         
NET ASSETS — 100.0%
  $ 18,303,419  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
BR Brazil
 
Ltd. Limited
 
NV Public Traded Company
 
PLC Public Limited Company
 
REG Registered Shares
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Gartmore NVIT
 		 
      Worldwide Leaders Fund  
       
Assets:
         
Investments, at value (cost $18,962,417)
    $ 18,074,989  
Foreign currencies, at value (cost $170,584)
      170,357  
Dividends receivable
      26,920  
Receivable for investments sold
      613,833  
Receivable for capital shares issued
      896  
Reclaims receivable
      17,781  
Prepaid expenses and other assets
      2,156  
           
Total Assets
      18,906,932  
           
Liabilities:
         
Payable for investments purchased
      550,526  
Payable for capital shares redeemed
      11,980  
Accrued expenses and other payables:
         
Investment advisory fees
      5,318  
Fund administration fees
      7,085  
Distribution fees
      198  
Administrative servicing fees
      3,147  
Accounting and transfer agent fees
      7,866  
Trustee fees
      19  
Custodian fees
      133  
Compliance program costs (Note 3)
      110  
Professional fees
      8,026  
Printing fees
      9,105  
           
Total Liabilities
      603,513  
           
Net Assets
    $ 18,303,419  
           
Represented by:
         
Capital
    $ 31,161,270  
Accumulated undistributed net investment income
      106,388  
Accumulated net realized losses from investment and foreign currency transactions
      (12,076,699 )
Net unrealized appreciation/(depreciation) from investments
      (887,428 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (112 )
           
Net Assets
    $ 18,303,419  
           
Net Assets:
         
Class I Shares
    $ 10,458,133  
Class III Shares
      6,888,267  
Class VI Shares
      957,019  
           
Total
    $ 18,303,419  
           
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      1,164,503  
Class III Shares
      767,140  
Class VI Shares
      106,528  
           
Total
      2,038,171  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.98  
Class III Shares
    $ 8.98  
Class VI Shares
    $ 8.98  
           
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
    Gartmore NVIT Worldwide Leaders Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 249,458  
Foreign tax withholding
      (15,810 )
           
Total Income
      233,648  
           
EXPENSES:
         
Investment advisory fees
      84,490  
Fund administration fees
      17,091  
Distribution fees Class VI Shares
      993  
Administrative servicing fees Class I Shares
      9,069  
Administrative servicing fees Class III Shares
      6,178  
Professional fees
      8,368  
Printing fees
      6,382  
Trustee fees
      378  
Custodian fees
      484  
Accounting and transfer agent fees
      4,917  
Compliance program costs (Note 3)
      41  
Other
      1,263  
           
Total expenses before earnings credit and expenses reimbursed
      139,654  
Earnings credit (Note 5)
      (1 )
Expenses reimbursed by adviser (Note 3)
      (12,520 )
           
Net Expenses
      127,133  
           
NET INVESTMENT INCOME
      106,515  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      1,043,868  
Net realized gains from forward and foreign currency transactions (Note 2)
      509  
           
Net realized gains from investment and forward foreign currency transactions
      1,044,377  
           
Net change in unrealized appreciation/(depreciation) from investments
      (3,668,696 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (265 )
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (3,668,961 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (2,624,584 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (2,518,069 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      Gartmore NVIT
 		 
      Worldwide Leaders Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 106,515       $ 208,165  
Net realized gains/(losses) from investment and foreign currency transactions
      1,044,377         (1,076,290 )
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (3,668,961 )       5,285,165  
                     
Change in net assets resulting from operations
      (2,518,069 )       4,417,040  
                     
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (45,899 )       (120,669 )
Class III
      (30,381 )       (84,436 )
Class VI (a)
      (3,116 )       (2,326 )
                     
Change in net assets from shareholder distributions
      (79,396 )       (207,431 )
                     
Change in net assets from capital transactions
      (1,810,295 )       (2,746,999 )
                     
Change in net assets
      (4,407,638 )       1,462,610  
                     
                     
                     
Net Assets:
                   
Beginning of period
      22,711,179         21,248,569  
                     
End of period
    $ 18,303,419       $ 22,711,179  
                     
                     
Accumulated undistributed net investment income at end of period
    $ 106,388       $ 79,269  
                     
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 460,024       $ 1,126,635  
Dividends reinvested
      45,899         120,669  
Cost of shares redeemed
      (1,527,731 )       (2,903,617 )
                     
Total Class I
      (1,021,808 )       (1,656,313 )
                     
Class III Shares
                   
Proceeds from shares issued
      199,813         873,961  
Dividends reinvested
      30,381         84,436  
Cost of shares redeemed
      (1,544,467 )       (2,563,845 )
                     
Total Class III
      (1,314,273 )       (1,605,448 )
                     
Class VI Shares(a)
                   
Proceeds from shares issued
      691,282         562,408  
Dividends reinvested
      3,116         2,326  
Cost of shares redeemed
      (168,612 )       (49,972 )
                     
Total Class VI
      525,786         514,762  
                     
Change in net assets from capital transactions
    $ (1,810,295 )     $ (2,746,999 )
                     
(a)  For the period from May 1, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      Gartmore NVIT
 		 
      Worldwide Leaders Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      44,036         137,546  
Reinvested
      4,577         13,520  
Redeemed
      (153,219 )       (352,868 )
                     
Total Class I Shares
      (104,606 )       (201,802 )
                     
Class III Shares
                   
Issued
      19,544         94,551  
Reinvested
      3,031         9,458  
Redeemed
      (153,061 )       (309,053 )
                     
Total Class III Shares
      (130,486 )       (205,044 )
                     
Class VI Shares (a)
                   
Issued
      68,770         59,729  
Reinvested
      312         236  
Redeemed
      (17,351 )       (5,168 )
                     
Total Class VI Shares
      51,731         54,797  
                     
Total change in shares
      (183,361 )       (352,049 )
                     
 
 
(a)  For the period from May 1, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Gartmore NVIT Worldwide Leaders Fund
 
                                                                                                                                                         
          Operations     Distributions                 Ratios/Supplemental Data
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended
  $ 10 .22       0 .05       (1 .25)       (1 .20)       (0 .04)       –          (0 .04)       –        $ 8 .98       (11 .80%)     $ 10,458,133         1 .20%       1 .01%       1 .32%       104 .22%    
June 30, 2010 (Unaudited) (e)
                                                                                                                                                       
Year Ended December 31, 2009 (e)
  $ 8 .26       0 .09       1 .96       2 .05       (0 .09)       –          (0 .09)       –        $ 10 .22       25 .00%     $ 12,975,261         1 .17%       1 .05%       1 .28%       230 .98%    
Year Ended December 31, 2008
  $ 18 .99       0 .12       (7 .75)       (7 .63)       (0 .11)       (2 .99)       (3 .10)       –        $ 8 .26       (44 .34%)     $ 12,145,914         1 .19%       0 .84%       1 .19%       237 .52%    
Year Ended December 31, 2007
  $ 15 .90       0 .06       3 .10       3 .16       (0 .07)       –          (0 .07)       –        $ 18 .99       19 .90%     $ 28,659,341         1 .30%       0 .33%       1 .30%       270 .07%    
Year Ended December 31, 2006
  $ 12 .73       0 .13       3 .16       3 .29       (0 .12)       –          (0 .12)       –        $ 15 .90       25 .88%     $ 29,402,523         1 .21%       0 .96%       1 .21%       269 .37%    
Year Ended December 31, 2005
  $ 10 .78       0 .01       2 .04       2 .05       (0 .10)       –          0 .10       –        $ 12 .73       19 .34%     $ 29,173,437         1 .29%       0 .18%       1 .29%       360 .00%    
                                                                                                                                                         
Class III Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .22       0 .05       (1 .25)       (1 .20)       (0 .04)       –          (0 .04)       –        $ 8 .98       (11 .80%)     $ 6,888,267         1 .20%       1 .00%       1 .32%       104 .22%    
Year Ended December 31, 2009 (e)
  $ 8 .26       0 .09       1 .96       2 .05       (0 .09)       –          (0 .09)       –        $ 10 .22       25 .00%     $ 9,175,367         1 .17%       1 .06%       1 .28%       230 .98%    
Year Ended December 31, 2008
  $ 18 .98       0 .12       (7 .75)       (7 .63)       (0 .10)       (2 .99)       (3 .09)       –        $ 8 .26       (44 .33%)     $ 9,102,655         1 .24%       0 .78%       1 .24%       237 .52%    
Year Ended December 31, 2007
  $ 15 .89       0 .08       3 .09       3 .17       (0 .08)       –          (0 .08)       –        $ 18 .98       19 .94%     $ 26,077,031         1 .26%       0 .43%       1 .26%       270 .07%    
Year Ended December 31, 2006
  $ 12 .73       0 .12       3 .16       3 .28       (0 .12)       –          (0 .12)       –        $ 15 .89       25 .81%     $ 23,154,788         1 .20%       0 .93%       1 .20%       269 .37%    
Year Ended December 31, 2005
  $ 10 .78       0 .01       2 .04       2 .05       (0 .10)       –          (0 .10)       –        $ 12 .73       19 .34%     $ 16,198,379         1 .29%       0 .13%       1 .29%       360 .00%    
                                                                                                                                                         
Class VI Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .23       0 .05       (1 .26)       (1 .21)       (0 .04)       –          (0 .04)       –        $ 8 .98       (11 .81%)     $ 957,019         1 .34%       1 .03%       1 .46%       104 .22%    
                                                                                                                                                         
Period Ended December 31, 2009 (e)(f)
  $ 7 .69       0 .02       2 .60       2 .62       (0 .08)       –          (0 .08)       –        $ 10 .23       35 .40%     $ 560,551         1 .32%       0 .24%       1 .38%       230 .98%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from May 1, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Gartmore NVIT Worldwide Leaders Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a
 
 
 
12 Semiannual Report 2010

 

 
 
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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ —     $ 247,065     $ —     $ 247,065      
 
 
Air Freight & Logistics
    182,286       —       —       182,286      
 
 
Automobiles
    —       612,085       —       612,085      
 
 
Beverages
    591,215       —       —       591,215      
 
 
Capital Markets
    —       518,842       —       518,842      
 
 
Chemicals
    493,935       —       —       493,935      
 
 
Commercial Banks
    911,438       531,309       —       1,442,747      
 
 
Computers & Peripherals
    774,712       —       —       774,712      
 
 
Consumer Finance
    662,990       —       —       662,990      
 
 
Diversified Financial Services
    922,728       —       —       922,728      
 
 
Diversified Telecommunication Services
    —       526,778       —       526,778      
 
 
Electronic Equipment, Instruments & Components
    —       52,577       —       52,577      
 
 
Food Products
    —       791,268       —       791,268      
 
 
Health Care Providers & Services
    —       173,436       —       173,436      
 
 
Household Durables
    —       317,409       —       317,409      
 
 
Industrial Conglomerates
    —       563,470       —       563,470      
 
 
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Information Technology Services
  $ 583,615     $ —     $ —     $ 583,615      
 
 
Machinery
    454,518       —       —       454,518      
 
 
Media
    797,691       —       —       797,691      
 
 
Metals & Mining
    774,426       491,841       —       1,266,267      
 
 
Multi-Utilities
    —       635,917       —       635,917      
 
 
Oil, Gas & Consumable Fuels
    357,414       551,334       —       908,748      
 
 
Pharmaceuticals
    717,278       396,758       —       1,114,036      
 
 
Real Estate Management & Development
    —       334,120       —       334,120      
 
 
Semiconductors & Semiconductor Equipment
    631,892       557,031       —       1,188,923      
 
 
Software
    492,414       —       —       492,414      
 
 
Textiles, Apparel & Luxury Goods
    729,600       —       —       729,600      
 
 
Wireless Telecommunication Services
    —       360,998       —       360,998      
 
 
Total Common Stocks
    10,078,152       7,662,238       —       17,740,390      
 
 
Mutual Fund
    334,599       —       —       334,599      
 
 
Total Assets
  $ 10,412,751     $ 7,662,238     $ —     $ 18,074,989      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(d)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
14 Semiannual Report 2010

 

 
 
(e)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(f)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Gartmore Global Partners (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $50 million     0.80%      
 
 
    $50 million and more     0.75%      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $51,750 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 1.05% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                             
    Fiscal Year
  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ —     $ —     $ 20,326     $ 12,520     $ 32,846      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
16 Semiannual Report 2010

 

 
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class III and Class VI shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $15,247 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $41.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class VI shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III and Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III and Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
For purposes of determining whether the redemption fee applies, the Class III and Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $187.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $861.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $21,268,219 and sales of $22,723,023 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or
 
 
 
18 Semiannual Report 2010

 

 
 
ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 19,256,985     $ 601,353     $ (1,783,349)     $ (1,181,996)      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 19

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
20 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Gartmore NVIT Worldwide Leaders Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Gartmore Global Partners, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the one-, three-, and five-year periods ended September 30, 2009, the Fund’s performance for Class I shares was in the fifth, second, and first quintiles of its Peer Group, respectively. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s Class I shares underperformed the Fund’s benchmark, the MSCI World Index, but that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s Class I shares outperformed its benchmark. The Trustees also noted that the Fund has been on the watch list since the second quarter of 2009.
 
The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class I shares were in the second quintile of its Peer Group. The Trustees also noted that NFA had eliminated the performance-based fee structure applicable to the Fund effective May 1, 2009, which reduced the Fund’s investment advisory fee to the lowest level possible under the performance fee structure. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

Neuberger Berman NVIT Multi Cap Opportunities Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
23
   
Supplemental Information
       
25
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MCO (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Neuberger Berman NVIT Multi Cap Opportunities Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
Neuberger Berman NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Multi Cap Opportunities Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       910.50       4.07       0.86  
      Hypothetical b     1,000.00       1,020.53       4.31       0.86  
 
 
Class II Shares
    Actual       1,000.00       908.90       4.54       0.96  
      Hypothetical b     1,000.00       1,020.03       4.81       0.96  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Neuberger Berman NVIT Multi Cap Opportunities Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .6%
Repurchase Agreements
    13 .5%
Mutual Fund
    3 .2%
Liabilities in excess of other assets
    (14 .3)%
         
      100 .0%
         
         
Top Industries †    
 
Oil, Gas & Consumable Fuels
    10 .4%
Diversified Financial Services
    7 .7%
Capital Markets
    5 .2%
Insurance
    4 .1%
Metals & Mining
    4 .1%
Commercial Banks
    3 .9%
Personal Products
    3 .8%
Health Care Providers & Services
    3 .8%
Specialty Retail
    3 .7%
Health Care Equipment & Supplies
    3 .5%
Other Industries *
    49 .8%
         
      100 .0%
         
         
Top Holdings †    
 
Bank of America Corp. 
    2 .8%
Invesco Liquid Assets Portfolio — Institutional Class
    2 .8%
Berkshire Hathaway, Inc., Class B
    2 .4%
Canadian Natural Resources Ltd. 
    2 .3%
Owens Corning, Inc. 
    2 .1%
NBTY, Inc. 
    1 .9%
EOG Resources, Inc. 
    1 .9%
American Express Co. 
    1 .9%
Avon Products, Inc. 
    1 .9%
Shire PLC
    1 .8%
Other Holdings *
    78 .2%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Neuberger Berman NVIT Multi Cap Opportunities Fund
 
                 
Common Stocks 97.6%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 2.0%
Boeing Co. (The)
    72,980     $ 4,579,495  
                 
 
 
Automobiles 1.6%
Harley-Davidson, Inc.
    156,220       3,472,771  
                 
 
 
Beverages 0.5%
Coca-Cola Co. (The)
    20,410       1,022,949  
                 
 
 
Building Products 3.1%
Masco Corp.
    153,990       1,656,933  
Owens Corning, Inc.*
    178,240       5,331,158  
                 
              6,988,091  
                 
 
 
Capital Markets 5.9%
Goldman Sachs Group, Inc. (The)
    23,190       3,044,151  
Invesco Ltd.
    247,065       4,158,104  
Morgan Stanley
    143,600       3,332,956  
State Street Corp.
    81,960       2,771,887  
                 
              13,307,098  
                 
 
 
Commercial Banks 4.4%
Fifth Third Bancorp
    268,860       3,304,289  
SunTrust Banks, Inc.
    109,770       2,557,641  
Wells Fargo & Co.
    158,480       4,057,088  
                 
              9,919,018  
                 
 
 
Computers & Peripherals 1.8%
Hewlett-Packard Co.
    94,020       4,069,186  
                 
 
 
Construction & Engineering 1.2%
Chicago Bridge & Iron Co. NV NYRS-NL REG*
    144,635       2,720,584  
                 
 
 
Consumer Finance 3.1%
American Express Co.
    122,345       4,857,096  
Capital One Financial Corp.
    49,880       2,010,164  
                 
              6,867,260  
                 
 
 
Diversified Financial Services 8.9%
Bank of America Corp.
    507,400       7,291,338  
Citigroup, Inc.*
    1,061,121       3,989,815  
JPMorgan Chase & Co.
    118,530       4,339,383  
Moody’s Corp.
    210,860       4,200,331  
                 
              19,820,867  
                 
 
 
Electrical Equipment 1.9%
ABB Ltd. ADR-CH* (a)
    243,380       4,205,606  
                 
 
 
Energy Equipment & Services 2.8%
Halliburton Co.
    95,050       2,333,477  
National Oilwell Varco, Inc.
    66,980       2,215,029  
Weatherford International Ltd.*
    126,280       1,659,319  
                 
              6,207,825  
                 
Food & Staples Retailing 1.2%
CVS Caremark Corp.
    89,260       2,617,103  
                 
 
 
Health Care Equipment & Supplies 4.0%
Boston Scientific Corp.*
    281,540       1,632,932  
Covidien PLC
    77,990       3,133,638  
Zimmer Holdings, Inc.*
    76,040       4,109,962  
                 
              8,876,532  
                 
 
 
Health Care Providers & Services 4.3%
Aetna, Inc.
    126,555       3,338,521  
AmerisourceBergen Corp.
    81,490       2,587,308  
WellPoint, Inc.*
    76,350       3,735,805  
                 
              9,661,634  
                 
 
 
Household Durables 1.5%
NVR, Inc.*
    1,830       1,198,705  
Whirlpool Corp.
    24,520       2,153,346  
                 
              3,352,051  
                 
 
 
Household Products 1.3%
Energizer Holdings, Inc.*
    58,865       2,959,732  
                 
 
 
Independent Power Producers & Energy Traders 0.7%
NRG Energy, Inc.* (a)
    71,465       1,515,773  
                 
 
 
Industrial Conglomerates 1.8%
McDermott International, Inc.*
    96,235       2,084,450  
Textron, Inc. (a)
    120,180       2,039,455  
                 
              4,123,905  
                 
 
 
Information Technology Services 1.3%
Lender Processing Services, Inc.
    92,210       2,887,095  
                 
 
 
Insurance 4.7%
Berkshire Hathaway, Inc., Class B* (a)
    76,550       6,100,270  
MetLife, Inc.
    90,915       3,432,950  
Principal Financial Group, Inc.
    45,900       1,075,896  
                 
              10,609,116  
                 
 
 
Machinery 3.7%
Bucyrus International, Inc. (a)
    34,940       1,657,903  
Ingersoll-Rand PLC (a)
    91,950       3,171,356  
Joy Global, Inc.
    32,200       1,612,898  
Terex Corp.*
    100,980       1,892,365  
                 
              8,334,522  
                 
 
 
Media 2.0%
McGraw-Hill Cos., Inc. (The) (a)
    162,140       4,562,620  
                 
 
 
Metals & Mining 4.7%
Freeport-McMoRan Copper & Gold, Inc.
    32,705       1,933,847  
Teck Resources Ltd., Class B
    144,065       4,261,443  
United States Steel Corp. (a)
    28,980       1,117,179  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Neuberger Berman NVIT Multi Cap Opportunities Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Metals & Mining (continued)
                 
Walter Energy, Inc. (a)
    24,765     $ 1,506,950  
Xstrata PLC
    122,020       1,597,810  
                 
              10,417,229  
                 
 
 
Multiline Retail 2.9%
J.C. Penney Co., Inc.
    180,710       3,881,651  
Macy’s, Inc.
    149,585       2,677,571  
                 
              6,559,222  
                 
 
 
Oil, Gas & Consumable Fuels 11.9%
Canadian Natural Resources Ltd.
    172,800       5,742,145  
Cenovus Energy, Inc.
    130,600       3,368,174  
EOG Resources, Inc.
    50,310       4,948,995  
Peabody Energy Corp.
    51,200       2,003,456  
Petrohawk Energy Corp.*
    51,200       868,864  
Petroleo Brasileiro SA ADR-BR (a)
    125,410       4,304,071  
Southwestern Energy Co.*
    95,070       3,673,505  
Talisman Energy, Inc.
    111,860       1,698,035  
                 
              26,607,245  
                 
 
 
Paper & Forest Products 0.5%
International Paper Co.
    50,120       1,134,216  
                 
 
 
Personal Products 4.4%
Avon Products, Inc.
    180,270       4,777,155  
NBTY, Inc.*
    146,535       4,983,655  
                 
              9,760,810  
                 
 
 
Pharmaceuticals 2.1%
Shire PLC ADR-IE (a)
    76,660       4,705,391  
                 
 
 
Semiconductors & Semiconductor Equipment 1.0%
Intel Corp.
    77,060       1,498,817  
Lam Research Corp.*
    18,000       685,080  
                 
              2,183,897  
                 
 
 
Software 2.2%
Check Point Software Technologies*
    75,440       2,223,971  
Oracle Corp.
    128,130       2,749,670  
                 
              4,973,641  
                 
 
 
Specialty Retail 4.2%
Best Buy Co., Inc.
    118,895       4,025,785  
Limited Brands, Inc.
    67,300       1,485,311  
Lowe’s Cos., Inc.
    187,910       3,837,122  
                 
              9,348,218  
                 
         
Total Common Stocks (cost $225,221,249)
    218,370,702  
         
                 
                 
Mutual Fund 3.2%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 3.2%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    7,061,521       7,061,521  
                 
         
Total Mutual Fund (cost $7,061,521)
    7,061,521  
         
                 
                 
Repurchase Agreements 13.5%
                 
      Principal
Amount 		      Market
Value 		 
 
 
                 
Morgan Stanley, 0.02%, dated 06/30/10, due 07/01/10, repurchase price $15,222,656, collateralized by U.S. Government Agency Mortgages ranging 4.00%-8.50%, maturing 03/01/15-06/01/40; total market value of $15,527,646. (c)
  $ 15,222,648       15,222,648  
Barclays Capital, 0.02%, dated 06/30/10, due 07/01/10, repurchase price $15,000,008, collateralized by U.S. Treasury Notes 1.88%, maturing 06/30/15; total market value of $15,300,001. (c)
    15,000,000       15,000,000  
                 
                 
         
Total Repurchase Agreements (cost $30,222,648)
    30,222,648  
         
         
Total Investments (cost $262,505,418) (d) — 114.3%
    255,654,871  
         
Liabilities in excess of other assets — (14.3)%
    (31,937,902 )
         
         
NET ASSETS — 100.0%
  $ 223,716,969  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $29,178,969.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $30,222,648.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
BR Brazil
 
CH Switzerland
 
 
 
6 Semiannual Report 2010

 

 
 
 
IE Ireland
 
Ltd. Limited
 
NL Netherlands
 
NV Public Traded Company
 
NYRS New York Registry Shares
 
PLC Public Limited Company
 
REG Registered Shares
 
SA Stock Company
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Neuberger Berman
 		 
    NVIT Multi Cap Opportunities Fund  
       
Assets:
         
Investments, at value * (cost $232,282,770)
    $ 225,432,223  
Repurchase agreements, at value and cost
      30,222,648  
           
Total Investments
      255,654,871  
           
Cash
      114  
Dividends receivable
      78,897  
Security lending income receivable
      4,516  
Receivable for investments sold
      838  
Receivable for capital shares issued
      29,050  
Reclaims receivable
      2,051  
Prepaid expenses and other assets
      3,013  
           
Total Assets
      255,773,350  
           
Liabilities:
         
Payable for investments purchased
      1,467,379  
Payable for capital shares redeemed
      181,548  
Payable upon return of securities loaned (Note 2)
      30,222,648  
Accrued expenses and other payables:
         
Investment advisory fees
      118,253  
Fund administration fees
      11,094  
Distribution fees
      3,076  
Administrative servicing fees
      25,187  
Accounting and transfer agent fees
      2,606  
Trustee fees
      598  
Compliance program costs (Note 3)
      1,944  
Professional fees
      12,064  
Other
      9,984  
           
Total Liabilities
      32,056,381  
           
Net Assets
    $ 223,716,969  
           
Represented by:
         
Capital
    $ 221,319,125  
Accumulated undistributed net investment income
      57,323  
Accumulated net realized gains from investment and foreign currency transactions
      9,191,068  
Net unrealized appreciation/(depreciation) from investments
      (6,850,547 )
           
Net Assets
    $ 223,716,969  
           
Net Assets:
         
Class I Shares
    $ 208,706,349  
Class II Shares
      15,010,620  
           
Total
    $ 223,716,969  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      27,540,165  
Class II Shares
      1,992,923  
           
Total
      29,533,088  
           
*  Includes value of securities on loan of $29,178,969 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
8 Semiannual Report 2010

 

 
 
           
           
      Neuberger Berman
 		 
    NVIT Multi Cap Opportunities Fund  
       
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.58  
Class II Shares
    $ 7.53  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      Neuberger Berman
 		 
      NVIT Multi Cap
 		 
      Opportunities Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 1,200,879  
Income from securities lending (Note 2)
      8,987  
Foreign tax withholding
      (17,279 )
           
Total Income
      1,192,587  
           
EXPENSES:
         
Investment advisory fees
      785,031  
Fund administration fees
      55,442  
Distribution fees Class II Shares
      20,147  
Administrative servicing fees Class I Shares
      184,170  
Professional fees
      18,056  
Printing fees
      52,144  
Trustee fees
      4,548  
Custodian fees
      4,729  
Accounting and transfer agent fees
      2,426  
Compliance program costs (Note 3)
      554  
Other
      5,553  
           
Total expenses before earnings credits
      1,132,800  
Earnings credit (Note 4)
      (13 )
           
Net Expenses
      1,132,787  
           
NET INVESTMENT INCOME
      59,800  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      9,522,520  
Net realized losses from foreign currency transactions (Note 2)
      (3,603 )
           
Net realized gains from investment and foreign currency transactions
      9,518,917  
           
Net change in unrealized appreciation/(depreciation) from investments
      (31,925,489 )
           
Net realized/unrealized losses from investments and foreign currency transactions
      (22,406,572 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (22,346,772 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
                     
      Neuberger Berman NVIT
 		 
      Multi Cap Opportunities Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 59,800       $ 202,374  
Net realized gains from investment and foreign currency transactions
      9,518,917         3,999,657  
Net change in unrealized appreciation/(depreciation) from investments
      (31,925,489 )       25,941,063  
                     
Change in net assets resulting from operations
      (22,346,772 )       30,143,094  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (13,641 )       (171,596 )
Class II
      –         –  
Net realized gains:
                   
Class I
      (3,406,627 )       (542,839 )
Class II
      (236,806 )       (24,213 )
                     
Change in net assets from shareholder distributions
      (3,657,074 )       (738,648 )
                     
Change in net assets from capital transactions
      (12,423,723 )       231,123,756  
                     
Change in net assets
      (38,427,569 )       260,528,202  
                     
                     
Net Assets:
                   
Beginning of period
      262,144,538         1,616,336  
                     
End of period
    $ 223,716,969       $ 262,144,538  
                     
Accumulated undistributed net investment income at end of period
    $ 57,323       $ 11,164  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 3,202,182       $ 16,062,717  
Proceeds from shares issued in-kind (Note 8)
      –         232,822,777  
Dividends reinvested
      3,420,268         714,435  
Cost of shares redeemed
      (24,869,141 )       (26,913,011 )
                     
Total Class I
      (18,246,691 )       222,686,918  
                     
Class II Shares
                   
Proceeds from shares issued
      10,969,232         9,389,246  
Dividends reinvested
      236,806         24,213  
Cost of shares redeemed
      (5,383,070 )       (976,621 )
                     
Total Class II
      5,822,968         8,436,838  
                     
Change in net assets from capital transactions
    $ (12,423,723 )     $ 231,123,756  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      Neuberger Berman NVIT
 		 
      Multi Cap Opportunities Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
    $ 357,746       $ 2,246,784  
Issued in-kind (Note 8)
      –         30,643,846  
Reinvested
      410,596         84,250  
Redeemed
      (2,875,307 )       (3,463,303 )
                     
Total Class I Shares
      (2,106,965 )       29,511,577  
                     
Class II Shares
                   
Issued
      1,257,240         1,348,284  
Reinvested
      28,600         2,872  
Redeemed
      (665,920 )       (135,215 )
                     
Total Class II Shares
      619,920         1,215,941  
                     
Total change in shares
      (1,487,045 )       30,727,518  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Neuberger Berman NVIT Multi Cap Opportunities Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                                                                      Ratio of Net
 		               
                Net Realized
 		                                                    Investment
 		    Ratio of
 		         
                and
 		                                                    Income
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    (Loss)
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    to Average
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    Net
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .45       –          (0 .75)       (0 .75)       –          (0 .12)       (0 .12)     $ 7 .58       (8 .95%)     $ 208,706,349         0 .86%       0 .05%       0 .86%       24 .19%    
Year Ended December 31, 2009 (e)
  $ 5 .54       0 .02       2 .92       2 .94       (0 .01)       (0 .02)       (0 .03)     $ 8 .45       52 .96%     $ 250,604,126         0 .86%       0 .21%       0 .86%       85 .68%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .05       (4 .51)       (4 .46)       –          –          –        $ 5 .54       (44 .70%)     $ 750,526         0 .78%       0 .84%       1 .93%       25 .43%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .41       –          (0 .76)       (0 .76)       –          (0 .12)       (0 .12)     $ 7 .53       (9 .11%)     $ 15,010,620         0 .96%       (0 .04%)       0 .96%       24 .19%    
Year Ended December 31, 2009 (e)
  $ 5 .51       0 .01       2 .91       2 .92       –          (0 .02)       (0 .02)     $ 8 .41       52 .96%     $ 11,540,412         1 .00%       0 .11%       1 .05%       85 .68%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .04       (4 .53)       (4 .49)       –          –          –        $ 5 .51       (44 .90%)     $ 865,810         1 .10%       0 .68%       2 .30%       25 .43%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Neuberger Berman NVIT Multi Cap Opportunities Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
14 Semiannual Report 2010

 

 
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ 4,579,495     $ —     $ —     $ 4,579,495      
 
 
Automobiles
    3,472,771       —       —       3,472,771      
 
 
Beverages
    1,022,949       —       —       1,022,949      
 
 
Building Products
    6,988,091       —       —       6,988,091      
 
 
Capital Markets
    13,307,098       —       —       13,307,098      
 
 
Commercial Banks
    9,919,018       —       —       9,919,018      
 
 
Computers & Peripherals
    4,069,186       —       —       4,069,186      
 
 
Construction & Engineering
    2,720,584       —       —       2,720,584      
 
 
Consumer Finance
    6,867,260       —       —       6,867,260      
 
 
Diversified Financial Services
    19,820,867       —       —       19,820,867      
 
 
Electrical Equipment
    4,205,606       —       —       4,205,606      
 
 
Energy Equipment & Services
    6,207,825       —       —       6,207,825      
 
 
Food & Staples Retailing
    2,617,103       —       —       2,617,103      
 
 
Health Care Equipment & Supplies
    8,876,532       —       —       8,876,532      
 
 
Heath Care Providers & Services
    9,661,634       —       —       9,661,634      
 
 
Household Durables
    3,352,051       —       —       3,352,051      
 
 
Household Products
    2,959,732       —       —       2,959,732      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Independent Power Producers & Energy Traders
  $ 1,515,773     $ —     $ —     $ 1,515,773      
 
 
Industrial Conglomerates
    4,123,905       —       —       4,123,905      
 
 
Information Technology Services
    2,887,095       —       —       2,887,095      
 
 
Insurance
    10,609,116       —       —       10,609,116      
 
 
Machinery
    8,334,522       —       —       8,334,522      
 
 
Media
    4,562,620       —       —       4,562,620      
 
 
Metals & Mining
    8,819,419       1,597,810       —       10,417,229      
 
 
Multiline Retail
    6,559,222       —       —       6,559,222      
 
 
Oil, Gas & Consumable Fuels
    26,607,245       —       —       26,607,245      
 
 
Paper & Forest Products
    1,134,216       —       —       1,134,216      
 
 
Personal Products
    9,760,810       —       —       9,760,810      
 
 
Pharmaceuticals
    4,705,391       —       —       4,705,391      
 
 
Semiconductors & Semiconductor Equipment
    2,183,897       —       —       2,183,897      
 
 
Software
    4,973,641       —       —       4,973,641      
 
 
Specialty Retail
    9,348,218       —       —       9,348,218      
 
 
Total Common Stocks
    216,772,892       1,597,810       —       218,370,702      
 
 
Mutual Fund
    7,061,521       —       —       7,061,521      
 
 
Repurchase Agreements
    —       30,222,648       —       30,222,648      
 
 
Total Assets
  $ 223,834,413     $ 31,820,458     $ —     $ 225,654,871      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into
 
 
 
16 Semiannual Report 2010

 

 
 
a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 29,178,969     $ 30,222,648      
 
 
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
U.S. Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Neuberger Berman Management, LLC (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.60%      
 
 
    $1 billion and more     0.55%      
 
 
 
 
 
18 Semiannual Report 2010

 

 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.60%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $457,934 for the six months ended June 30, 2010.
 
Until April 30, 2010, the Trust and NFA had entered into a written Expense Limitation Agreement, which limited the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.78% for all share classes.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 13,634     $ —     $ —     $ 13,634      
 
 
(a) For the period March 28, 2008 (commencement of operations) through December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $184,170 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $554.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the Fund under
 
 
 
20 Semiannual Report 2010

 

 
 
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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $61,234,022 and sales of $77,513,823 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Other
 
During the year-ended December 31, 2009, the Fund issued shares of beneficial interest in exchange for securities tendered to the Fund by the purchaser of such shares. On August 14, 2009, the Fund issued 6,898,027 shares of beneficial interest in exchange for securities with a market value of $52,425,006 on such date; 23,331,397 shares of beneficial interest in exchange for securities with a market value of $177,318,617 on such date. On September 2, 2009, the Fund issued 414,422 shares of beneficial interest in exchange for securities with a market value of $3,079,154.
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
9. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 262,706,185     $ 12,003,725     $ (19,055,039)     $ (7,051,314)      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
22 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 23

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Neuberger Berman NVIT Multi Cap Opportunities Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Neuberger Berman Management, LLC (“Neuberger Berman”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the second quintile of its Peer Group and outperformed its benchmark, the Russell 1000 Value Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration Neuberger Berman’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of Neuberger Berman.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the second quintile of its Peer Group. The Trustees then noted that the Fund’s actual advisory fee was in the first quintile of its Peer Universe. The Trustees also noted that shareholders of the Fund received the benefit of an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
24 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 27

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
28 Semiannual Report 2010

 

 
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Neuberger Berman NVIT Socially Responsible Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
9
   
Statement of Operations
       
10
   
Statements of Changes in Net Assets
       
12
   
Financial Highlights
       
13
   
Notes to Financial Statements
       
22
   
Supplemental Information
       
24
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-SR (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Neuberger Berman NVIT Socially Responsible Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
 
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
Neuberger Berman NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Socially Responsible Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       995.30       3.91       0.79  
      Hypothetical b     1,000.00       1,020.88       3.96       0.79  
 
 
Class II Shares
    Actual       1,000.00       994.80       4.35       0.88  
      Hypothetical b     1,000.00       1,020.43       4.41       0.88  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Neuberger Berman NVIT Socially Responsible Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation Responsible Fund    
 
Common Stocks
    98 .5%
Mutual Fund
    1 .6%
Repurchase Agreement
    0 .8%
Liabilities in excess of other assets
    (0 .9)%
         
      100 .0%
 
         
Top Industries †    
 
Media
    10 .7%
Oil, Gas & Consumable Fuels
    9 .5%
Semiconductors & Semiconductor Equipment
    8 .1%
Pharmaceuticals
    7 .4%
Electronic Equipment, Instruments & Components
    6 .6%
Health Care Equipment & Supplies
    5 .8%
Capital Markets
    5 .8%
Insurance
    5 .5%
Machinery
    4 .5%
Software
    4 .4%
Other Industries *
    31 .7%
         
      100 .0%
         
Top Holdings †    
 
Altera Corp. 
    5 .1%
Danaher Corp. 
    4 .5%
Washington Post Co. (The), Class B
    4 .5%
Novo Nordisk AS
    4 .5%
Intuit, Inc. 
    4 .4%
Yahoo!, Inc. 
    4 .1%
3M Co. 
    4 .0%
BG Group PLC
    3 .9%
Newfield Exploration Co. 
    3 .8%
Scripps Networks Interactive, Inc., Class A
    3 .4%
Other Holdings *
    57 .8%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Neuberger Berman NVIT Socially Responsible Fund
 
                 
Common Stocks 98.5%
                 
      Shares       Market
Value 		 
 
 
Capital Markets 5.8%
Bank of New York Mellon Corp. (The)
    283,095     $ 6,989,615  
Charles Schwab Corp. (The)
    579,850       8,222,273  
                 
              15,211,888  
                 
 
 
Chemicals 3.5%
Novozymes AS, Class B
    24,315       2,594,533  
Praxair, Inc.
    85,035       6,461,810  
                 
              9,056,343  
                 
 
 
Commercial Services & Supplies 2.6%
Herman Miller, Inc.
    353,580       6,672,055  
                 
 
 
Electronic Equipment, Instruments & Components 6.7%
Anixter International, Inc.*
    196,580       8,374,308  
National Instruments Corp.
    283,325       9,004,068  
                 
              17,378,376  
                 
 
 
Energy Equipment & Services 3.0%
Smith International, Inc.
    206,455       7,773,031  
                 
 
 
Food Products 3.2%
JM Smucker Co. (The)
    137,420       8,275,432  
                 
 
 
Health Care Equipment & Supplies 5.9%
Becton, Dickinson and Co.
    115,985       7,842,906  
Covidien PLC
    186,580       7,496,784  
                 
              15,339,690  
                 
 
 
Household Products 3.3%
Procter & Gamble Co. (The)
    143,205       8,589,436  
                 
 
 
Industrial Conglomerates 4.1%
3M Co.
    133,735       10,563,728  
                 
 
 
Insurance 5.5%
Markel Corp.*
    16,090       5,470,600  
Progressive Corp. (The)
    474,935       8,890,783  
                 
              14,361,383  
                 
 
 
Internet Software & Services 4.1%
Yahoo!, Inc.*
    782,105       10,816,512  
                 
 
 
Machinery 4.6%
Danaher Corp.
    321,240       11,924,429  
                 
 
 
Media 10.8%
Comcast Corp., Special Class A
    447,050       7,345,031  
Scripps Networks Interactive, Inc., Class A
    224,055       9,038,379  
Washington Post Co. (The), Class B
    28,555       11,721,256  
                 
              28,104,666  
                 
Oil, Gas & Consumable Fuels 9.6%
BG Group PLC
    691,779       10,288,719  
Cimarex Energy Co.
    67,565       4,836,303  
Newfield Exploration Co.*
    201,605       9,850,420  
                 
              24,975,442  
                 
 
 
Pharmaceuticals 7.5%
Novo Nordisk AS ADR-DK
    76,855       6,226,792  
Novo Nordisk AS, Class B
    67,643       5,465,064  
Roche Holding AG
    14,489       1,994,291  
Roche Holding AG ADR-CH
    167,780       5,754,854  
                 
              19,441,001  
                 
 
 
Professional Services 1.6%
ICF International, Inc.*
    179,445       4,294,119  
                 
 
 
Road & Rail 2.0%
Canadian National Railway Co.
    91,275       5,237,359  
                 
 
 
Semiconductors & Semiconductor Equipment 8.1%
Altera Corp.
    539,890       13,394,671  
Texas Instruments, Inc.
    334,115       7,778,197  
                 
              21,172,868  
                 
 
 
Software 4.5%
Intuit, Inc.*
    335,930       11,680,286  
                 
 
 
Trading Companies & Distributors 2.1%
W.W. Grainger, Inc. (a)
    56,395       5,608,483  
                 
         
Total Common Stocks (cost $246,784,928)
    256,476,527  
         
                 
                 
Mutual Fund 1.6%
                 
                 
Money Market Fund 1.6%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    4,168,973       4,168,973  
                 
         
Total Mutual Fund (cost $4,168,973)
    4,168,973  
         
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Neuberger Berman NVIT Socially Responsible Fund (Continued)
 
                 
                 
                 
Repurchase Agreement 0.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10, repurchase price $2,177,927, collateralized by U.S. Government Agency Securities 4.00% – 8.50%, maturing 03/01/15 – 06/01/40; total market value of $2,221,561 (c)
  $ 2,177,925     $ 2,177,925  
                 
         
Total Repurchase Agreement
(cost $2,177,925)
    2,177,925  
         
         
Total Investments (cost $253,131,826) (d) — 100.9%
    262,823,425  
         
Liabilities in excess of other assets — (0.9%)
    (2,406,800 )
         
         
NET ASSETS — 100.0%
  $ 260,416,625  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $2,118,285.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $2,177,925.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
AS Stock Corporation
 
CH Switzerland
 
DK Denmark
 
PLC Public Limited Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Neuberger Berman
 		 
      NVIT Socially
 		 
      Responsible Fund  
       
Assets:
         
Investments, at value* (cost $250,953,901)
    $ 260,645,500  
Repurchase agreement, at value and cost
      2,177,925  
           
Total Investments
      262,823,425  
           
Foreign currencies, at value (cost $3,848)
      3,969  
Dividends receivable
      39,871  
Security lending income receivable
      1,638  
Receivable for capital shares issued
      27  
Reclaims receivable
      11,103  
Prepaid expenses and other assets
      2,483  
           
Total Assets
      262,882,516  
           
Liabilities:
         
Payable for capital shares redeemed
      51,909  
Cash overdraft (Note 2)
      1,107  
Payable upon return of securities loaned (Note 2)
      2,177,925  
Accrued expenses and other payables:
         
Investment advisory fees
      145,608  
Fund administration fees
      11,712  
Distribution fees
      19,729  
Administrative servicing fees
      12,611  
Accounting and transfer agent fees
      2,474  
Custodian fees
      2,044  
Compliance program costs (Note 3)
      1,272  
Professional fees
      15,188  
Printing fees
      13,995  
Other
      10,317  
           
Total Liabilities
      2,465,891  
           
Net Assets
    $ 260,416,625  
           
Represented by:
         
Capital
    $ 328,580,460  
Accumulated undistributed net investment income
      116,304  
Accumulated net realized losses from investment and foreign currency transactions
      (77,971,834 )
Net unrealized appreciation/(depreciation) from investments
      9,691,599  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      96  
           
Net Assets
    $ 260,416,625  
           
Net Assets:
         
Class I Shares
    $ 5,628,688  
Class II Shares
      254,787,937  
           
Total
    $ 260,416,625  
           
 
* Includes value of securities on loan of $2,118,285 (Note 2).
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Assets and Liabilities (Continued)
 
           
           
      Neuberger Berman
 		 
      NVIT Socially
 		 
      Responsible Fund  
       
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      672,422  
Class II Shares
      30,466,215  
           
Total
      31,138,637  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.37  
Class II Shares
    $ 8.36  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      Neuberger Berman
 		 
      NVIT Socially
 		 
      Responsible Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 1,939,876  
Income from securities lending (Note 2)
      3,090  
Foreign tax withholding
      (42,330 )
           
Total Income
      1,900,636  
           
EXPENSES:
         
Investment advisory fees
      910,207  
Fund administration fees
      57,970  
Distribution fees Class II Shares
      342,809  
Administrative servicing fees Class I Shares
      1,454  
Administrative servicing fees Class II Shares
      68,564  
Professional fees
      19,165  
Printing fees
      20,664  
Trustee fees
      5,172  
Custodian fees
      6,251  
Accounting and transfer agent fees
      2,363  
Compliance program costs (Note 3)
      554  
Other
      8,088  
           
Total expenses before earnings credits
      1,443,261  
Distribution fees voluntarily waived — Class II (Note 3)
      (219,400 )
Earnings credit (Note 4)
      (7 )
           
Net Expenses
      1,223,854  
           
NET INVESTMENT INCOME
      676,782  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (1,737,547 )
Net realized gains from foreign currency transactions (Note 2)
      7,242  
           
Net realized losses from investment and foreign currency transactions
      (1,730,305 )
           
Net change in unrealized appreciation/(depreciation) from investments
      1,038,872  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      1,752  
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      1,040,624  
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (689,681 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (12,899 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statements of Changes in Net Assets
 
                     
      Neuberger Berman NVIT
 		 
      Socially Responsible Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 676,782       $ 988,684  
Net realized losses from investment and foreign currency transactions
      (1,730,305 )       (56,944,759 )
Net change in unrealized appreciation from investments and translations of assets and liabilities denominated in foreign currencies
      1,040,624         132,829,522  
                     
Change in net assets resulting from operations
      (12,899 )       76,873,447  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (14,437 )       (27,826 )
Class II
      (547,605 )       (1,035,183 )
Return of capital:
                   
Class I
      –         (3,002 )
Class II
      –         (111,677 )
                     
Change in net assets from shareholder distributions
      (562,042 )       (1,177,688 )
                     
Change in net assets from capital transactions
      (31,049,833 )       (49,248,711 )
                     
Change in net assets
      (31,624,774 )       26,447,048  
                     
                     
Net Assets:
                   
Beginning of period
      292,041,399         265,594,351  
                     
End of period
    $ 260,416,625       $ 292,041,399  
                     
Accumulated undistributed net investment income at end of period
    $ 116,304       $ 1,564  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 962,035       $ 1,340,897  
Dividends reinvested
      14,437         30,828  
Cost of shares redeemed
      (1,543,553 )       (4,608,460 )
                     
Total Class I
      (567,081 )       (3,236,735 )
                     
Class II Shares
                   
Proceeds from shares issued
      7,359,646         39,365,588  
Dividends reinvested
      547,605         1,146,860  
Cost of shares redeemed
      (38,390,003 )       (86,524,424 )
                     
Total Class II
      (30,482,752 )       (46,011,976 )
                     
Change in net assets from capital transactions
    $ (31,049,833 )     $ (49,248,711 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      108,743         205,750  
Reinvested
      1,611         4,450  
Redeemed
      (175,084 )       (717,957 )
                     
Total Class I Shares
      (64,730 )       (507,757 )
                     
Amounts designated as “–“ are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
 
10 Semiannual Report 2010

 

 
 
                     
      Neuberger Berman NVIT
 		 
      Socially Responsible Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class II Shares
                   
Issued
      817,869         6,345,462  
Reinvested
      61,171         167,827  
Redeemed
      (4,343,855 )       (12,589,492 )
                     
Total Class II Shares
      (3,464,815 )       (6,076,203 )
                     
Total change in shares
      (3,529,545 )       (6,583,960 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Neuberger Berman NVIT Socially Responsible Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios/Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Return
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    of
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Capital     Distributions     of Period     Return (a)     of Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
                                                                                                                                               
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .43       0 .02       (0 .06)       (0 .04)       (0 .02)       –          (0 .02)     $ 8 .37       (0 .47%)     $ 5,628,688         0 .79%       0 .56%       0 .79%       15 .34%    
Year Ended December 31, 2009 (e)
  $ 6 .44       0 .03       1 .99       2 .02       (0 .03)       –          (0 .03)     $ 8 .43       31 .53%     $ 6,215,347         0 .76%       0 .43%       0 .79%       45 .46%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .04       (3 .56)       (3 .52)       (0 .04)       –          (0 .04)     $ 6 .44       (35 .25%)     $ 8,022,553         0 .82%       0 .74%       0 .93%       38 .63%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .42       0 .02       (0 .06)       (0 .04)       (0 .02)       –          (0 .02)     $ 8 .36       (0 .52%)     $ 254,787,937         0 .88%       0 .48%       1 .04%       15 .34%    
Year Ended December 31, 2009 (e)
  $ 6 .44       0 .02       1 .99       2 .01       (0 .03)       –          (0 .03)     $ 8 .42       31 .27%     $ 285,826,052         0 .85%       0 .34%       0 .93%       45 .46%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .04       (3 .56)       (3 .52)       (0 .04)       –          (0 .04)     $ 6 .44       (35 .27%)     $ 257,571,798         0 .91%       0 .59%       1 .07%       38 .63%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Neuberger Berman NVIT Socially Responsible Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Capital Markets
  $ 15,211,888     $ —     $ —     $ 15,211,888      
Chemicals
    6,461,810       2,594,533       —       9,056,343      
Commercial Services & Supplies
    6,672,054       —       —       6,672,054      
Electronic Equipment, Instruments & Components
    17,378,376       —       —       17,378,376      
Energy Equipment & Services
    7,773,031       —       —       7,773,031      
Food Products
    8,275,432       —       —       8,275,432      
Health Care Equipment & Supplies
    15,339,690       —       —       15,339,690      
Household Products
    8,589,436       —       —       8,589,436      
Industrial Conglomerates
    10,563,728       —       —       10,563,728      
Insurance
    14,361,383       —       —       14,361,383      
Internet Software & Services
    10,816,512       —       —       10,816,512      
Machinery
    11,924,429       —       —       11,924,429      
Media
    28,104,667       —       —       28,104,667      
Oil, Gas & Consumable Fuels
    14,686,723       10,288,719       —       24,975,442      
Pharmaceuticals
    11,981,646       7,459,355       —       19,441,001      
Professional Services
    4,294,119       —       —       4,294,119      
Road & Rail
    5,237,359       —       —       5,237,359      
Semiconductors & Semiconductor Equipment
    21,172,868       —       —       21,172,868      
 
 
 
14 Semiannual Report 2010

 

 
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Software
  $ 11,680,286     $ —     $ —     $ 11,680,286      
Trading Companies & Distributors
    5,608,483       —       —       5,608,483      
 
 
Total Common Stocks
    236,133,920       20,342,607       —       256,476,527      
 
 
Mutual Fund
    4,168,973       —       —       4,168,973      
 
 
Repurchase Agreement
    —       2,177,925       —       2,177,925      
 
 
Total Assets
  $ 240,302,893     $ 22,520,532     $ —     $ 262,823,425      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $1,107 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 2,118,285     $ 2,177,925      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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
 
 
 
16 Semiannual Report 2010

 

 
 
technical merits of the position. If such a tax position taken by the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Neuberger Berman Management, LLC (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.65%      
 
 
    $1 billion and more     0.60%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.65%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $490,110 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.78% for all share classes until at least April 30, 2011.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 4,126     $ 82,127     $ —     $ 86,253      
 
 
(a) For the period March 28, 2008 (commencement of operations) through December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
18 Semiannual Report 2010

 

 
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $70,018 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $554.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. Beginning May 1, 2010, the Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $219,400.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the Fund under
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $41,827,281 and sales of $70,671,145 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Social Policy Risk. The Fund’s social policy may cause it to underperform similar mutual funds that do not have a social policy. This can occur because:
 
  •  undervalued stocks that do not meet the social criteria could outperform those that do;
 
  •  economic or political changes could make certain companies less attractive for investment; or
 
  •  the social policy could cause the Fund to see or avoid stocks that subsequently perform well.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
20 Semiannual Report 2010

 

 
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 255,813,258     $ 27,398,072     $ (20,387,905)     $ 7,010,167      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 21

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
22 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Neuberger Berman NVIT Socially Responsible Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Neuberger Berman Management, LLC (“Neuberger Berman”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group and underperformed its benchmark, the S&P 500® Index. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. The Trustees noted that, for the period since inception through September 30, 2009, the Fund’s performance was only two basis points below its benchmark. As was the case upon initial approval of Neuberger Berman, the Trustees took into consideration Neuberger Berman’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees noted that the contractual advisory fee for Class II shares was in the first quintile of the Fund’s Peer Group, and that its actual advisory fee and total expenses were in the second quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 23

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 27

 

 
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NVIT Bond Index Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
30
   
Statement of Assets and Liabilities
       
31
   
Statement of Operations
       
32
   
Statements of Changes in Net Assets
       
33
   
Financial Highlights
       
34
   
Notes to Financial Statements
       
42
   
Supplemental Information
       
44
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-BDX (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Bond Index Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Bond Index Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class Y Shares
    Actual       1,000.00       1,052.40       1.37       0.27  
      Hypothetical b     1,000.00       1,023.46       1.35       0.27  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Bond Index Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
U.S. Government Mortgage Backed Agencies
    34 .0%
U.S. Treasury Notes
    26 .9%
Corporate Bonds
    19 .4%
U.S. Government Sponsored & Agency Obligations
    5 .3%
U.S. Treasury Bonds
    4 .6%
Mutual Fund
    3 .4%
Commercial Mortgage Backed Securities
    2 .8%
Sovereign Bonds
    2 .5%
Yankee Dollars
    0 .8%
Municipal Bonds
    0 .6%
Asset-Backed Securities
    0 .5%
Repurchase Agreement
    0 .3%
Liabilities in excess of other assets
    (1 .1)%
         
      100 .0%
         
Top Industries †    
 
Diversified Financial Services
    3 .4%
Oil, Gas & Consumable Fuels
    1 .7%
Commercial Banks
    1 .6%
Electric Utilities
    1 .4%
Diversified Telecommunication Services
    1 .2%
Media
    1 .2%
Insurance
    1 .0%
Capital Markets
    1 .0%
Pharmaceuticals
    0 .9%
Aerospace & Defense
    0 .5%
Other Industries *
    86 .1%
         
      100 .0%
         
Top Holdings †    
 
Freddie Mac Gold Pool, 5.00%, 02/01/40
    3 .5%
Invesco Liquid Assets Portfolio — Institutional Class
    3 .3%
Fannie Mae Pool, 5.00%, 05/01/33
    2 .8%
Fannie Mae Pool, 6.00%, 09/01/37
    2 .7%
Freddie Mac Gold Pool, 6.00%, 08/15/40
    2 .5%
U.S. Treasury Note, 4.50%, 09/30/11
    1 .9%
Freddie Mac Gold Pool, 5.50%, 05/01/39
    1 .8%
U.S. Treasury Note, 1.38%, 09/15/12
    1 .8%
U.S. Treasury Note, 3.38%, 11/15/19
    1 .8%
U.S. Treasury Note, 3.63%, 08/15/19
    1 .7%
Other Holdings *
    76 .2%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries, top holdings and top countries, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund
 
                 
                 
Asset-Backed Securities 0.5%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Automobile 0.3%
Ford Credit Auto Owner Trust,
Series 2009-E, Class A3,
1.51%, 01/15/14
  $ 749,000     $ 753,354  
USAA Auto Owner Trust, Series 2008-3, Class A3, 4.28%, 10/15/12
    2,949,702       3,001,057  
                 
              3,754,411  
                 
 
 
Credit Card 0.2%
Citibank Credit Card Issuance Trust,
Series 2006-A4, Class A4, 5.45%, 05/10/13
    3,321,000       3,450,208  
                 
 
 
Home Equity 0.0%†
Aegis Asset Backed Securities Trust,
Series 2006-1, Class A1, 0.43%, 01/25/37 (a)
    410,257       408,492  
                 
         
Total Asset-Backed Securities (cost $7,490,278)
    7,613,111  
         
                 
                 
Commercial Mortgage Backed Securities 2.8%
                 
Banc of America Commercial Mortgage, Inc.
Series 2006-6, Class A4,
5.36%, 10/10/45
    4,070,000       4,074,549  
Series 2007-1, Class A4, 5.45%, 01/15/49
    2,295,000       2,323,738  
Bear Stearns Commercial Mortgage Securities, Inc., Series 2005-PWR8, Class AJ 4.75%, 06/11/41
    1,991,000       1,699,224  
Citigroup Commercial Mortgage Trust,
Series 2008-C7, Class A4 6.30%, 12/10/49 (a)
    3,271,583       3,360,421  
Commercial Mortgage Pass Through Certificates, Series 2005-LP5, Class A4 4.98%, 05/10/43 (a)
    5,820,000       6,140,016  
CW Capital Cobalt Ltd., Series 2007-C3, Class A4 6.02%, 05/15/46 (a)
    2,080,000       2,032,247  
First Union National Bank Commercial Mortgage, Series 2000-C2, Class A2 7.20%, 10/15/32
    637,422       637,436  
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A5 5.28%, 08/10/38 (a)
    3,067,000       3,246,581  
JPMorgan Chase Commercial Mortgage Securities Corp. Series 2005-LDP4, Class AM, 5.00%, 10/15/42 (a)
    2,224,000       2,087,175  
Series 2006-LDP7, Class A4, 6.06%, 04/15/45 (a)
    3,339,000       3,558,223  
Series 2007-CB18, Class AM, 5.47%, 06/12/47 (a)
    420,000       358,844  
Series 2007-LD12, Class A2, 5.83%, 02/15/51
    2,200,000       2,282,118  
LB-UBS Commercial Mortgage Trust
Series 2003-C8, Class A4, 5.12%, 11/15/32 (a)
    3,109,000       3,321,226  
Series 2007-C1, Class A2, 5.32%, 02/15/40
    2,140,000       2,200,413  
Morgan Stanley Capital I Series 2005-T19, Class A2, 4.73%, 06/12/47
    577,264       576,917  
Series 2007-IQ14, Class A4, 5.69%, 04/15/49 (a)
    2,080,000       2,006,366  
Wachovia Bank Commercial Mortgage Trust
Series 2002-C1, Class C, 6.55%, 04/15/34
    1,711,000       1,806,939  
Series 2006-C25, Class A5, 5.92%, 05/15/43 (a)
    800,000       856,353  
Series 2007-C33, Class A4, 6.10%, 02/15/51 (a)(b)
    1,945,000       1,910,481  
                 
         
Total Commercial Mortgage Backed Securities (cost $39,012,503)
    44,479,267  
         
                 
                 
Corporate Bonds 19.4%
                 
                 
Aerospace & Defense 0.5%
Boeing Co. (The),
4.88%, 02/15/20
    1,100,000       1,211,153  
General Dynamics Corp., 4.25%, 05/15/13
    250,000       269,509  
Goodrich Corp.
               
6.29%, 07/01/16
    354,000       414,605  
6.80%, 07/01/36
    185,000       223,611  
Honeywell International, Inc.
               
6.13%, 11/01/11
    147,000       156,924  
5.40%, 03/15/16
    705,000       805,540  
5.30%, 03/01/18
    840,000       959,210  
Lockheed Martin Corp.
               
6.15%, 09/01/36
    354,000       409,588  
5.72%, 06/01/40 (c)
    215,000       232,885  
McDonnell Douglas Corp., 9.75%, 04/01/12
    600,000       687,618  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Aerospace & Defense (continued)
                 
Northrop Grumman Systems Corp., 7.75%, 02/15/31
  $ 118,000     $ 158,246  
Raytheon Co.
               
5.50%, 11/15/12
    88,000       96,602  
6.40%, 12/15/18
    206,000       247,098  
7.00%, 11/01/28
    133,000       166,315  
Rockwell Collins, Inc., 4.75%, 12/01/13
    295,000       319,430  
United Technologies Corp.
               
4.88%, 05/01/15
    545,000       609,450  
6.13%, 07/15/38
    400,000       468,115  
                 
              7,435,899  
                 
 
 
Air Freight & Logistics 0.0%†
United Parcel Service of America, Inc.
               
8.38%, 04/01/20
    118,000       162,829  
8.38%, 04/01/30 (d)
    177,000       240,348  
United Parcel Service, Inc., 6.20%, 01/15/38
    295,000       354,641  
                 
              757,818  
                 
 
 
Airlines 0.0%†
Qantas Airways Ltd., 6.05%, 04/15/16 (c)
    177,000       183,427  
Southwest Airlines Co., 5.13%, 03/01/17
    147,000       149,172  
                 
              332,599  
                 
 
 
Auto Components 0.0%†
Johnson Controls, Inc., 4.88%, 09/15/13
    177,000       190,660  
                 
 
 
Automobile 0.2%
Daimler Finance North America LLC
               
5.88%, 03/15/11
    1,987,000       2,047,337  
7.30%, 01/15/12
    389,000       419,307  
6.50%, 11/15/13
    487,000       545,069  
                 
              3,011,713  
                 
 
 
Beverages 0.3%
Anheuser-Busch Cos., Inc.
               
4.38%, 01/15/13
    29,000       30,547  
5.00%, 03/01/19
    236,000       245,568  
5.75%, 04/01/36
    324,000       334,144  
6.00%, 11/01/41
    147,000       151,859  
Bottling Group LLC, 4.63%, 11/15/12
    413,000       446,410  
Coca-Cola Bottling Co. Consolidated,
5.00%, 11/15/12
    88,000       94,180  
Coca-Cola Enterprises, Inc.
               
8.50%, 02/01/12
    354,000       393,845  
7.38%, 03/03/14
    480,000       572,142  
6.95%, 11/15/26
    147,000       181,384  
Diageo Finance BV, 5.30%, 10/28/15
    649,000       726,326  
Pepsi Bottling Group, Inc., 7.00%, 03/01/29
    206,000       262,612  
PepsiAmericas, Inc., 4.88%, 01/15/15
    442,000       490,918  
PepsiCo, Inc.,
7.90%, 11/01/18
    700,000       905,071  
SABMiller PLC,
5.50%, 08/15/13 (c)
    147,000       160,817  
                 
              4,995,823  
                 
 
 
Biotechnology 0.0%†
Amgen, Inc.,
6.40%, 02/01/39
    600,000       710,520  
Genentech, Inc.,
5.25%, 07/15/35
    88,000       92,282  
                 
              802,802  
                 
 
 
Capital Markets 1.0%
Bank of New York Mellon Corp. (The),
5.13%, 08/27/13
    450,000       496,164  
Bear Stearns Cos. LLC (The)
               
5.70%, 11/15/14
    369,000       408,708  
5.30%, 10/30/15
    177,000       191,314  
4.65%, 07/02/18
    354,000       348,205  
Credit Suisse Guernsey, 5.86%, 05/15/17 (e)
    400,000       353,000  
Credit Suisse USA, Inc.
               
6.13%, 11/15/11
    265,000       281,503  
6.50%, 01/15/12
    354,000       379,330  
5.13%, 01/15/14
    171,000       184,001  
5.85%, 08/16/16
    400,000       442,431  
7.13%, 07/15/32
    555,000       686,547  
Goldman Sachs Group, Inc. (The)
               
6.60%, 01/15/12
    103,000       108,937  
5.25%, 10/15/13
    870,000       917,075  
5.13%, 01/15/15
    664,000       697,489  
5.35%, 01/15/16
    1,077,000       1,114,251  
5.63%, 01/15/17
    1,000,000       1,011,110  
6.13%, 02/15/33
    1,150,000       1,125,821  
6.75%, 10/01/37
    500,000       490,171  
Jefferies Group, Inc., 6.25%, 01/15/36
    177,000       158,424  
Mellon Funding Corp., 5.00%, 12/01/14
    265,000       289,317  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Capital Markets (continued)
                 
Morgan Stanley
               
6.60%, 04/01/12
  $ 501,000     $ 531,684  
5.30%, 03/01/13
    664,000       690,499  
4.75%, 04/01/14
    590,000       591,013  
5.45%, 01/09/17
    1,325,000       1,313,467  
7.30%, 05/13/19
    700,000       752,793  
5.63%, 09/23/19
    1,000,000       967,413  
7.25%, 04/01/32
    324,000       364,273  
UBS Preferred Funding Trust V,
6.24%, 05/15/16 (e)
    275,000       235,812  
WT Finance Aust Pty Ltd./Westfield Capital/WEA Finance LLC, 5.13%, 11/15/14 (c)
    153,000       160,157  
                 
                 
              15,290,909  
                 
 
 
Chemicals 0.2%
Albemarle Corp.,
5.10%, 02/01/15
    118,000       128,558  
Cytec Industries, Inc., 6.00%, 10/01/15
    162,000       178,071  
Dow Chemical Co. (The)
               
6.00%, 10/01/12
    590,000       634,396  
8.55%, 05/15/19
    585,000       716,106  
9.40%, 05/15/39
    260,000       361,605  
EI Du Pont de Nemours & Co.,
5.25%, 12/15/16
    885,000       1,009,265  
Lubrizol Corp.
               
5.50%, 10/01/14
    354,000       381,051  
6.50%, 10/01/34
    147,000       148,598  
Praxair, Inc.,
3.95%, 06/01/13
    177,000       188,263  
                 
                 
              3,745,913  
                 
 
 
Commercial Banks 1.6%
Bank of America NA
               
6.00%, 06/15/16
    295,000       311,199  
5.30%, 03/15/17
    200,000       201,380  
Bank One Corp.
               
5.25%, 01/30/13
    147,000       156,443  
8.00%, 04/29/27
    290,000       357,542  
Barclays Bank plc
               
5.20%, 07/10/14
    550,000       580,444  
5.13%, 01/08/20
    800,000       795,764  
BB&T Corp.,
4.75%, 10/01/12
    236,000       249,550  
Charter One Bank NA,
Series AI,
6.38%, 05/15/12
    700,000       733,096  
Comerica, Inc.,
4.80%, 05/01/15
    177,000       183,809  
Eksportfinans ASA, 5.50%, 05/25/16
    383,000       435,295  
HSBC Bank USA NA
               
4.63%, 04/01/14
    590,000       621,400  
5.63%, 08/15/35
    250,000       238,171  
HSBC Holdings PLC
               
6.50%, 05/02/36
    400,000       414,867  
6.50%, 09/15/37
    600,000       621,029  
JPMorgan Chase Bank NA
               
5.88%, 06/13/16
    442,000       483,538  
6.00%, 07/05/17
    2,210,000       2,392,455  
6.00%, 10/01/17
    1,000,000       1,088,962  
KeyBank NA
               
5.70%, 08/15/12
    265,000       280,353  
5.80%, 07/01/14
    147,000       156,938  
6.95%, 02/01/28
    225,000       232,446  
Korea Development Bank, 5.75%, 09/10/13
    118,000       126,570  
Kreditanstalt fuer Wiederaufbau, 4.38%, 03/15/18 (b)
    600,000       647,623  
Marshall & Ilsley Bank, 5.25%, 09/04/12
    162,000       161,874  
National City Bank, 6.20%, 12/15/11
    300,000       317,571  
National City Corp., 4.90%, 01/15/15
    354,000       381,596  
PNC Funding Corp., 5.25%, 11/15/15
    354,000       376,858  
Regions Bank,
3.25%, 12/09/11
    3,560,000       3,689,573  
St. George Bank Ltd., 5.30%, 10/15/15 (c)
    236,000       247,259  
SunTrust Bank
               
5.20%, 01/17/17
    177,000       176,001  
5.45%, 12/01/17
    183,000       182,957  
UBS AG
               
5.88%, 07/15/16
    1,121,000       1,180,296  
5.88%, 12/20/17
    350,000       370,467  
UnionBanCal Corp., 5.25%, 12/16/13
    206,000       223,378  
US Bank NA
               
6.38%, 08/01/11
    501,000       528,960  
4.95%, 10/30/14
    265,000       288,793  
4.80%, 04/15/15
    133,000       144,187  
Wachovia Bank NA
               
5.60%, 03/15/16
    708,000       754,747  
6.60%, 01/15/38
    1,000,000       1,087,337  
Wachovia Capital Trust III, 5.80%, 12/31/49 (e)
    850,000       675,750  
Wachovia Corp.,
4.88%, 02/15/14
    183,000       191,448  
Wells Fargo & Co.
               
5.13%, 09/15/16
    206,000       219,253  
5.38%, 02/07/35
    457,000       447,753  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Commercial Banks (continued)
                 
Wells Fargo Capital X, 5.95%, 12/15/36
  $ 875,000     $ 776,048  
Wells Fargo Capital XIII, 7.70%, 03/26/13 (e)
    1,075,000       1,085,750  
                 
                 
              24,816,730  
                 
 
 
Commercial Services & Supplies 0.1%
Pitney Bowes, Inc.
               
4.75%, 01/15/16
    295,000       317,753  
4.75%, 05/15/18
    88,000       92,525  
RR Donnelley & Sons Co.
               
4.95%, 04/01/14
    118,000       120,250  
6.13%, 01/15/17
    700,000       703,010  
Science Applications International Corp.,
5.50%, 07/01/33
    177,000       166,246  
Waste Management, Inc.
               
6.38%, 11/15/12
    206,000       225,712  
6.38%, 03/11/15
    500,000       573,387  
7.00%, 07/15/28
    162,000       187,329  
                 
              2,386,212  
                 
 
 
Communications Equipment 0.1%
Cisco Systems, Inc.
               
5.50%, 02/22/16
    425,000       489,597  
5.90%, 02/15/39
    500,000       555,783  
Motorola, Inc.,
7.50%, 05/15/25
    206,000       227,203  
                 
                 
              1,272,583  
                 
 
 
Computers & Peripherals 0.2%
Dell, Inc.,
7.10%, 04/15/28
    206,000       245,411  
Hewlett-Packard Co.
               
6.50%, 07/01/12
    292,000       322,766  
5.50%, 03/01/18
    800,000       921,387  
International Business Machines Corp.
               
4.75%, 11/29/12
    516,000       558,577  
5.88%, 11/29/32
    983,000       1,110,951  
                 
                 
              3,159,092  
                 
 
 
Construction Materials 0.1%
CRH America, Inc.,
6.00%, 09/30/16
    885,000       986,592  
Lafarge SA,
6.50%, 07/15/16
    265,000       274,518  
                 
                 
              1,261,110  
                 
 
 
Consumer Finance 0.5%
American Express Co.
               
4.88%, 07/15/13
    1,348,000       1,439,251  
8.13%, 05/20/19
    845,000       1,049,147  
6.80%, 09/01/66 (a)
    290,000       276,225  
Capital One Bank USA NA, 5.13%, 02/15/14
    765,000       820,722  
Capital One Capital III, 7.69%, 08/15/36
    250,000       235,000  
Capital One Financial Corp., 5.25%, 02/21/17
    304,000       319,541  
Caterpillar Financial Services Corp.
               
6.13%, 02/17/14
    1,400,000       1,584,436  
5.50%, 03/15/16
    295,000       333,832  
HSBC Finance Corp.
               
7.00%, 05/15/12
    811,000       873,254  
5.25%, 04/15/15
    265,000       279,627  
SLM Corp.,
5.38%, 05/15/14
    1,091,000       997,567  
                 
                 
              8,208,602  
                 
 
 
Diversified Financial Services 3.4%
Associates Corp of North America,
6.95%, 11/01/18
    339,000       347,014  
AXA Financial, Inc., 7.00%, 04/01/28
    133,000       141,113  
Bank of America Corp.
               
5.38%, 08/15/11
    383,000       397,941  
2.10%, 04/30/12
    2,325,000       2,380,940  
4.88%, 09/15/12
    289,000       300,795  
4.88%, 01/15/13
    649,000       678,235  
4.75%, 08/01/15
    619,000       632,705  
5.25%, 12/01/15
    737,000       752,253  
5.63%, 10/14/16
    1,460,000       1,512,893  
5.65%, 05/01/18
    3,700,000       3,791,804  
BP Capital Markets America, Inc.,
4.20%, 06/15/18
    147,000       116,946  
BSKYB Finance UK PLC, 5.63%, 10/15/15 (c)
    147,000       163,904  
Capital One Capital IV, 6.75%, 02/17/37 (a)
    185,000       154,475  
Citigroup Funding, Inc., 2.25%, 12/10/12
    6,485,000       6,675,678  
Citigroup, Inc.
               
6.00%, 02/21/12
    147,000       153,859  
5.25%, 02/27/12
    1,750,000       1,812,522  
5.63%, 08/27/12
    295,000       304,003  
5.50%, 10/15/14
    2,100,000       2,159,042  
5.30%, 01/07/16
    1,979,000       2,002,245  
5.85%, 08/02/16
    413,000       428,679  
6.63%, 06/15/32
    333,000       316,996  
5.88%, 02/22/33
    118,000       105,816  
5.85%, 12/11/34
    525,000       496,960  
5.88%, 05/29/37
    250,000       234,456  
ConocoPhillips Australia Funding Co.,
5.50%, 04/15/13
    324,000       357,833  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Diversified Financial Services (continued)
                 
Deutsche Bank AG, 4.88%, 05/20/13
  $ 1,250,000     $ 1,334,666  
Deutsche Bank Financial LLC, 5.38%, 03/02/15
    177,000       190,190  
EnCana Holdings Finance Corp.,
5.80%, 05/01/14
    634,000       713,878  
General Electric Capital Corp.
               
5.88%, 02/15/12
    59,000       62,702  
6.00%, 06/15/12
    263,000       283,020  
4.88%, 03/04/15
    619,000       660,711  
5.00%, 01/08/16
    295,000       311,088  
5.40%, 02/15/17
    585,000       621,363  
5.63%, 09/15/17
    2,000,000       2,137,670  
6.75%, 03/15/32
    1,128,000       1,213,995  
6.15%, 08/07/37
    1,200,000       1,217,416  
6.38%, 11/15/67 (a)
    925,000       860,250  
Goldman Sachs Capital I, 6.35%, 02/15/34
    1,250,000       1,121,595  
Goldman Sachs Capital II, 5.79%, 06/01/12 (e)
    575,000       434,125  
JPMorgan Chase & Co.
               
6.63%, 03/15/12
    643,000       691,855  
2.13%, 12/26/12
    3,225,000       3,316,693  
3.70%, 01/20/15
    805,000       823,390  
4.75%, 03/01/15
    254,000       269,905  
5.15%, 10/01/15
    501,000       536,034  
Kreditanstalt fuer Wiederaufbau
               
3.50%, 03/10/14
    2,915,000       3,077,949  
4.13%, 10/15/14
    708,000       765,316  
4.38%, 07/21/15
    2,145,000       2,340,225  
Landwirtschaftliche Rentenbank, 5.13%, 02/01/17
    750,000       849,533  
National Rural Utilities Cooperative Finance Corp.
               
4.75%, 03/01/14
    324,000       355,287  
5.45%, 04/10/17
    850,000       942,337  
8.00%, 03/01/32
    159,000       204,991  
Oesterreichische Kontrollbank AG
               
4.50%, 03/09/15
    236,000       256,859  
4.88%, 02/16/16
    350,000       388,322  
TIAA Global Markets, Inc., 4.95%, 07/15/13 (c)
    1,254,000       1,341,137  
UFJ Finance Aruba AEC, 6.75%, 07/15/13
    354,000       396,469  
                 
                 
              54,138,078  
                 
 
 
Diversified Telecommunication Services 1.3%
Ameritech Capital Funding Corp., 6.45%, 01/15/18
    88,000       98,904  
AT&T, Inc.
               
5.88%, 08/15/12
    425,000       463,708  
4.95%, 01/15/13
    1,500,000       1,628,217  
5.10%, 09/15/14
    1,003,000       1,112,670  
5.63%, 06/15/16
    295,000       334,362  
6.15%, 09/15/34
    1,161,000       1,218,965  
6.55%, 02/15/39
    410,000       459,238  
BellSouth Corp.
               
6.00%, 10/15/11
    838,000       889,598  
5.20%, 09/15/14
    501,000       556,711  
6.55%, 06/15/34
    177,000       194,936  
Deutsche Telekom International Finance BV
               
5.25%, 07/22/13
    737,000       792,951  
5.75%, 03/23/16
    697,000       762,617  
8.75%, 06/15/30
    369,000       476,636  
Embarq Corp.,
7.08%, 06/01/16
    133,000       141,786  
France Telecom SA, 8.50%, 03/01/31
    407,000       560,074  
GTE Corp.
               
6.84%, 04/15/18
    206,000       232,940  
6.94%, 04/15/28
    147,000       161,720  
Qwest Corp.,
8.38%, 05/01/16
    1,225,000       1,338,313  
Telecom Italia Capital SA
               
6.20%, 07/18/11
    206,000       213,465  
4.95%, 09/30/14
    295,000       295,592  
5.25%, 10/01/15
    940,000       948,694  
6.00%, 09/30/34
    230,000       197,049  
Telefonica Emisiones SAU, 6.42%, 06/20/16
    1,770,000       1,941,508  
Telefonos de Mexico SAB de CV, 5.50%, 01/27/15
    236,000       256,811  
Verizon Communications, Inc.
               
4.90%, 09/15/15
    590,000       648,111  
8.75%, 11/01/18
    550,000       714,985  
6.35%, 04/01/19
    200,000       231,427  
5.85%, 09/15/35
    118,000       121,720  
Verizon Global Funding Corp.
               
6.88%, 06/15/12
    295,000       325,102  
7.38%, 09/01/12
    522,000       586,463  
4.38%, 06/01/13
    369,000       396,423  
7.75%, 12/01/30
    1,190,000       1,482,919  
                 
              19,784,615  
                 
 
 
Electric Utilities 1.3%
Alabama Power Co., 5.70%, 02/15/33
    574,000       622,782  
Ameren Energy Generating Co.,
Series F,
7.95%, 06/01/32
    105,000       107,029  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Electric Utilities (continued)
                 
American Electric Power Co., Inc.,
5.25%, 06/01/15
  $ 192,000     $ 209,768  
Appalachian Power Co.,
Series L,
5.80%, 10/01/35
    206,000       209,717  
Arizona Public Service Co., 5.50%, 09/01/35
    215,000       210,285  
Baltimore Gas & Electric Co., 5.90%, 10/01/16
    1,135,000       1,307,285  
Cleveland Electric Illuminating Co. (The),
5.50%, 08/15/24
    400,000       434,740  
Commonwealth Edison Co., Series 98,
6.15%, 03/15/12
    118,000       127,188  
Consolidated Edison Co. of New York, Inc.,
Series 02-B,
4.88%, 02/01/13
    124,000       134,384  
Consolidated Edison Co. of New York, Inc.,
Series 05-C,
5.38%, 12/15/15
    177,000       198,950  
Consolidated Edison Co. of New York, Inc.,
Series 08-A,
5.85%, 04/01/18
    1,000,000       1,143,213  
Consolidated Edison Co. of New York, Inc.,
Series 03-A,
5.88%, 04/01/33
    118,000       127,811  
Duke Energy Carolinas LLC, 6.25%, 01/15/12
    1,650,000       1,777,601  
Duke Energy Corp., 5.05%, 09/15/19
    1,200,000       1,279,589  
Duke Energy Ohio, Inc., 5.70%, 09/15/12
    41,000       44,354  
Duke Energy Ohio, Inc.,
Series A,
5.40%, 06/15/33
    74,000       75,329  
Entergy Gulf States, Inc., 5.25%, 08/01/15
    81,000       81,106  
Entergy Mississippi, Inc., 5.15%, 02/01/13
    289,000       309,148  
Exelon Corp.
               
4.90%, 06/15/15
    413,000       441,050  
5.63%, 06/15/35
    836,000       809,953  
FirstEnergy Corp.,
Series C,
7.38%, 11/15/31
    663,000       699,063  
Florida Power & Light Co.
               
4.85%, 02/01/13
    147,000       158,638  
5.85%, 02/01/33
    100,000       109,783  
5.95%, 10/01/33
    77,000       85,687  
5.40%, 09/01/35
    130,000       138,083  
5.65%, 02/01/37
    450,000       493,152  
Florida Power Corp., 5.90%, 03/01/33
    318,000       351,280  
Georgia Power Co.,
Series K,
5.13%, 11/15/12
    106,000       115,072  
Metropolitan Edison Co., 4.88%, 04/01/14
    236,000       248,996  
MidAmerican Energy Co., 5.80%, 10/15/36
    550,000       595,778  
MidAmerican Energy Holdings Co., 5.88%, 10/01/12
    1,334,000       1,444,278  
New York State Electric & Gas Corp.,
5.75%, 05/01/23
    59,000       55,659  
Ohio Power Co.,
Series G,
6.60%, 02/15/33
    236,000       265,576  
Oncor Electric Delivery
Co. LLC
               
6.38%, 05/01/12
    552,000       596,252  
6.38%, 01/15/15
    692,000       784,022  
Pacific Gas & Electric Co.
               
4.80%, 03/01/14
    472,000       511,463  
6.25%, 03/01/39
    600,000       691,887  
PacifiCorp,
5.25%, 06/15/35
    177,000       177,877  
Pepco Holdings, Inc.
               
6.45%, 08/15/12
    106,000       118,090  
7.45%, 08/15/32
    118,000       141,011  
Progress Energy, Inc., 7.75%, 03/01/31
    236,000       298,844  
PSEG Power LLC
               
6.95%, 06/01/12
    74,000       80,846  
5.50%, 12/01/15
    413,000       456,644  
Public Service Co. of Colorado,
Series 15,
5.50%, 04/01/14
    251,000       279,160  
Public Service Electric & Gas Co.,
5.13%, 09/01/12
    195,000       210,041  
Puget Sound Energy, Inc., Series A,
5.48%, 06/01/35
    147,000       145,397  
Scottish Power Ltd., 5.81%, 03/15/25
    118,000       116,453  
Southern California Edison Co.,
6.00%, 01/15/34
    177,000       203,629  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Electric Utilities (continued)
                 
Southern California Edison Co.,
Series 05-B,
5.55%, 01/15/36
  $ 436,000     $ 476,079  
Southern Power Co., Series B,
6.25%, 07/15/12
    251,000       273,264  
SPI Electricity & Gas Australia Holdings Pty Ltd., 6.15%, 11/15/13 (c)
    189,000       200,189  
Virginia Electric and Power Co.,
Series A,
5.40%, 01/15/16
    147,000       164,085  
Westar Energy, Inc., 6.00%, 07/01/14
    265,000       297,358  
Wisconsin Electric Power Co., 5.63%, 05/15/33
    59,000       63,868  
                 
              20,698,786  
                 
 
 
Electrical Equipment 0.0%†
Emerson Electric Co., 6.00%, 08/15/32
    83,000       95,730  
                 
 
 
Energy Equipment & Services 0.1%
Anadarko Finance Co.,
Series B,
7.50%, 05/01/31
    298,000       250,622  
EOG Resources, Inc., 5.63%, 06/01/19
    130,000       146,174  
Halliburton Co.,
6.70%, 09/15/38
    400,000       437,226  
Nabors Industries, Inc., 5.38%, 08/15/12
    41,000       43,568  
Transocean, Inc.,
7.50%, 04/15/31
    177,000       163,712  
                 
                 
              1,041,302  
                 
 
 
Food & Staples Retailing 0.5%
Costco Wholesale Corp., 5.50%, 03/15/17
    850,000       978,355  
CVS Caremark Corp., 6.25%, 06/01/27
    795,000       867,389  
Kroger Co. (The)
               
6.20%, 06/15/12
    236,000       256,818  
7.50%, 04/01/31
    257,000       323,431  
Safeway, Inc.
               
5.80%, 08/15/12
    206,000       223,791  
5.63%, 08/15/14
    177,000       198,362  
5.00%, 08/15/19
    200,000       214,660  
Sysco Corp.,
5.38%, 09/21/35
    106,000       115,012  
Wal-Mart Stores, Inc.
               
5.00%, 04/05/12
    1,800,000       1,926,310  
3.20%, 05/15/14
    900,000       948,771  
3.63%, 07/08/20
    500,000       499,560  
7.55%, 02/15/30
    118,000       156,568  
5.25%, 09/01/35
    708,000       745,669  
                 
                 
              7,454,696  
                 
 
 
Food Products 0.3%
Archer-Daniels-Midland Co.
               
5.94%, 10/01/32
    345,000       385,978  
5.38%, 09/15/35
    147,000       154,403  
Bunge Ltd. Finance Corp., 5.10%, 07/15/15
    88,000       92,152  
Cadbury Schweppes US Finance LLC,
5.13%, 10/01/13 (c)
    177,000       192,659  
Campbell Soup Co., 4.88%, 10/01/13
    236,000       262,149  
ConAgra Foods, Inc.
               
6.75%, 09/15/11
    10,000       10,626  
7.00%, 10/01/28
    221,000       259,968  
General Mills, Inc.,
6.00%, 02/15/12
    267,000       287,680  
H.J. Heinz Finance Co.
               
6.00%, 03/15/12
    350,000       376,273  
6.75%, 03/15/32
    88,000       101,459  
Kellogg Co., Series B, 7.45%, 04/01/31
    147,000       194,061  
Kraft Foods, Inc.
               
5.63%, 11/01/11
    468,000       492,469  
6.00%, 02/11/13
    550,000       606,351  
6.50%, 11/01/31
    189,000       207,502  
7.00%, 08/11/37
    910,000       1,072,215  
Sara Lee Corp.,
6.25%, 09/15/11
    251,000       265,793  
Unilever Capital Corp., 5.90%, 11/15/32
    206,000       239,527  
                 
                 
              5,201,265  
                 
 
 
Gas Utilities 0.1%
AGL Capital Corp.,
4.45%, 04/15/13
    177,000       186,115  
Atmos Energy Corp.
               
5.13%, 01/15/13
    133,000       143,224  
4.95%, 10/15/14
    265,000       287,294  
Southern California Gas Co., 4.80%, 10/01/12
    383,000       409,187  
                 
                 
              1,025,820  
                 
 
 
Health Care Equipment & Supplies 0.1%
Baxter International, Inc.
               
4.63%, 03/15/15
    77,000       84,844  
5.38%, 06/01/18
    400,000       459,449  
Covidien International Finance SA, 6.00%, 10/15/17
    400,000       464,186  
                 
                 
              1,008,479  
                 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Health Care Providers & Services 0.3%
Aetna, Inc.,
6.00%, 06/15/16
  $ 550,000     $ 627,144  
Medtronic, Inc.,
4.45%, 03/15/20
    800,000       852,485  
Quest Diagnostics, Inc., 5.45%, 11/01/15
    324,000       356,301  
UnitedHealth Group, Inc.
               
5.38%, 03/15/16
    295,000       320,594  
5.80%, 03/15/36
    708,000       711,705  
WellPoint, Inc.
               
5.00%, 12/15/14
    1,036,000       1,125,588  
5.25%, 01/15/16
    324,000       354,726  
5.95%, 12/15/34
    118,000       120,448  
                 
                 
              4,468,991  
                 
 
 
Hotels, Restaurants & Leisure 0.1%
McDonald’s Corp.,
5.35%, 03/01/18
    360,000       412,304  
Yum! Brands, Inc.,
6.88%, 11/15/37
    600,000       688,785  
                 
                 
              1,101,089  
                 
 
 
Household Durables 0.0%†
Black & Decker Corp., 4.75%, 11/01/14
    230,000       248,411  
Fortune Brands, Inc.,
5.38%, 01/15/16
    265,000       285,690  
MDC Holdings, Inc., 5.50%, 05/15/13
    147,000       152,359  
Toll Brothers Finance Corp., 6.88%, 11/15/12
    7,000       7,421  
                 
                 
              693,881  
                 
 
 
Household Products 0.2%
Kimberly-Clark Corp.
               
5.63%, 02/15/12
    295,000       316,780  
4.88%, 08/15/15
    800,000       899,447  
6.63%, 08/01/37
    630,000       800,903  
Procter & Gamble Co. (The)
               
4.85%, 12/15/15
    177,000       200,274  
5.80%, 08/15/34
    545,000       631,770  
                 
                 
              2,849,174  
                 
 
 
Industrial Conglomerates 0.1%
3M Co.,
5.70%, 03/15/37
    415,000       474,460  
General Electric Co., 5.00%, 02/01/13
    929,000       996,218  
                 
                 
              1,470,678  
                 
 
 
Insurance 1.0%
ACE INA Holdings, Inc., 5.88%, 06/15/14
    560,000       619,495  
AIG Life Holdings US, Inc., 7.50%, 07/15/25
    147,000       144,060  
Allstate Corp. (The)
               
6.13%, 02/15/12
    254,000       272,284  
6.13%, 12/15/32
    118,000       123,393  
5.55%, 05/09/35
    88,000       86,512  
5.95%, 04/01/36
    118,000       121,417  
6.13%, 05/15/37 (a)
    195,000       171,844  
6.50%, 05/15/57 (a)
    195,000       175,013  
American International Group, Inc.
               
5.05%, 10/01/15
    147,000       135,056  
5.60%, 10/18/16
    585,000       534,105  
Berkshire Hathaway Finance Corp.
               
4.75%, 05/15/12
    1,090,000       1,157,198  
4.85%, 01/15/15
    1,779,000       1,953,835  
Chubb Corp.
               
6.00%, 05/11/37
    315,000       340,661  
6.38%, 03/29/67 (a)
    400,000       384,000  
Farmers Insurance Exchange, 8.63%, 05/01/24 (c)
    400,000       445,466  
Genworth Financial, Inc.
               
5.75%, 06/15/14
    88,000       87,925  
6.50%, 06/15/34
    206,000       181,589  
Hartford Financial Services Group, Inc.
               
4.75%, 03/01/14
    118,000       120,875  
6.10%, 10/01/41
    59,000       51,163  
Infinity Property & Casualty Corp.,
Series B,
5.50%, 02/18/14
    118,000       120,067  
Lincoln National Corp., 6.15%, 04/07/36
    440,000       420,288  
Marsh & McLennan Cos., Inc.
               
6.25%, 03/15/12
    103,000       108,864  
5.75%, 09/15/15
    43,000       45,991  
MetLife, Inc.
               
6.13%, 12/01/11
    640,000       677,128  
5.50%, 06/15/14
    265,000       288,809  
5.70%, 06/15/35
    659,000       644,501  
6.40%, 12/15/36
    500,000       440,000  
Metropolitan Life Global Funding I, 5.13%, 06/10/14 (c)
    750,000       814,742  
Nationwide Financial Services, Inc., 6.75%, 05/15/37 (i)
    105,000       78,993  
Nationwide Mutual Insurance Co., 5.81%, 12/15/24 (a) (c) (i)
    295,000       250,818  
New York Life Insurance Co., 5.88%, 05/15/33 (c)
    200,000       209,675  
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Insurance (continued)
                 
NLV Financial Corp., 7.50%, 08/15/33 (c)
  $ 74,000     $ 64,788  
Progressive Corp. (The)
               
6.25%, 12/01/32
    162,000       174,197  
6.70%, 06/15/37 (a)
    370,000       345,950  
Prudential Financial, Inc.
               
5.10%, 12/14/11
    740,000       772,570  
5.10%, 09/20/14
    295,000       313,728  
5.75%, 07/15/33
    147,000       140,429  
RLI Corp.,
5.95%, 01/15/14
    118,000       122,911  
Travelers Cos., Inc. (The)
               
5.75%, 12/15/17
    585,000       640,123  
6.25%, 03/15/37 (a)
    400,000       375,348  
Travelers Property Casualty Corp.,
6.38%, 03/15/33
    192,000       211,489  
Western & Southern Financial Group, Inc.,
5.75%, 07/15/33 (c)
    147,000       132,310  
Willis North America, Inc., 5.63%, 07/15/15
    177,000       187,229  
XL Group PLC,
5.25%, 09/15/14
    779,000       797,093  
                 
                 
              15,483,932  
                 
 
 
Machinery 0.1%
Caterpillar, Inc.
               
7.30%, 05/01/31
    100,000       129,537  
6.05%, 08/15/36
    177,000       203,637  
Deere & Co.,
8.10%, 05/15/30
    500,000       688,984  
Dover Corp.,
4.88%, 10/15/15
    224,000       251,433  
Stanley Black & Decker, Inc., 4.90%, 11/01/12
    133,000       142,192  
                 
                 
              1,415,783  
                 
 
 
Media 1.2%
CBS Corp.
               
5.63%, 08/15/12
    590,000       625,101  
8.88%, 05/15/19
    50,000       62,906  
7.88%, 07/30/30
    80,000       92,625  
5.50%, 05/15/33
    118,000       108,371  
Comcast Cable Communications Holdings, Inc.,
9.46%, 11/15/22
    118,000       162,776  
Comcast Cable Holdings LLC,
9.80%, 02/01/12
    307,000       343,457  
Comcast Corp.
               
5.90%, 03/15/16
    413,000       465,429  
6.50%, 01/15/17
    1,013,000       1,160,734  
5.70%, 07/01/19
    500,000       549,644  
7.05%, 03/15/33
    295,000       340,595  
6.50%, 11/15/35
    100,000       108,751  
6.95%, 08/15/37
    295,000       335,570  
COX Communications, Inc.
               
5.45%, 12/15/14
    354,000       390,738  
5.50%, 10/01/15
    383,000       418,066  
Historic TW, Inc.,
6.88%, 06/15/18
    176,000       207,079  
News America Holdings, Inc.
               
9.25%, 02/01/13
    118,000       138,945  
8.00%, 10/17/16
    118,000       145,272  
News America, Inc.
               
5.30%, 12/15/14
    367,000       407,799  
7.28%, 06/30/28
    77,000       86,297  
6.55%, 03/15/33
    300,000       321,680  
6.20%, 12/15/34
    245,000       258,038  
Omnicom Group, Inc., 5.90%, 04/15/16
    177,000       201,210  
Time Warner Cable, Inc.
               
6.20%, 07/01/13
    750,000       838,830  
6.75%, 07/01/18
    585,000       671,509  
8.25%, 04/01/19
    1,700,000       2,090,663  
6.75%, 06/15/39
    900,000       994,251  
Time Warner, Inc.
               
6.88%, 05/01/12
    3,021,000       3,291,210  
7.63%, 04/15/31
    777,000       934,711  
7.70%, 05/01/32
    932,000       1,124,024  
Viacom, Inc.
               
6.25%, 04/30/16
    649,000       736,127  
6.88%, 04/30/36
    324,000       366,790  
Walt Disney Co. (The)
               
6.38%, 03/01/12
    139,000       150,659  
6.20%, 06/20/14
    413,000       479,391  
                 
                 
              18,609,248  
                 
 
 
Metals & Mining 0.4%
Alcoa, Inc.,
5.87%, 02/23/22
    625,000       581,108  
ArcelorMittal,
6.13%, 06/01/18
    2,660,000       2,782,044  
Barrick Gold Finance Co., 4.88%, 11/15/14
    230,000       249,087  
BHP Billiton Finance USA Ltd.
               
4.80%, 04/15/13
    236,000       255,939  
5.25%, 12/15/15
    285,000       322,813  
Corp. Nacional del Cobre de Chile,
               
6.38%, 11/30/12 (c)
    120,000       131,969  
Newmont Mining Corp., 5.88%, 04/01/35
    236,000       242,683  
Placer Dome, Inc.,
6.38%, 03/01/33
    139,000       159,283  
 
 
 
2010 Semiannual Report 13

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Metals & Mining (continued)
                 
Rio Tinto Alcan, Inc.
               
5.00%, 06/01/15
  $ 295,000     $ 313,810  
5.75%, 06/01/35
    206,000       211,231  
Vale Overseas Ltd., 6.88%, 11/21/36
    944,000       984,130  
                 
                 
              6,234,097  
                 
 
 
Multiline Retail 0.1%
Target Corp.
               
6.00%, 01/15/18
    500,000       590,763  
7.00%, 07/15/31
    174,000       211,971  
6.35%, 11/01/32
    313,000       359,872  
                 
                 
              1,162,606  
                 
 
 
Multi-Utilities 0.2%
Dominion Resources, Inc.
               
5.70%, 09/17/12
    162,000       175,105  
5.20%, 08/15/19
    200,000       216,842  
Dominion Resources, Inc.,
Series E,
6.30%, 03/15/33
    10,000       11,010  
Dominion Resources, Inc.,
Series B,
5.95%, 06/15/35
    251,000       265,726  
DTE Energy Co.,
6.35%, 06/01/16
    913,000       1,022,482  
SCANA Corp.,
6.25%, 02/01/12
    147,000       156,908  
Sempra Energy,
6.00%, 10/15/39
    720,000       763,948  
Xcel Energy, Inc.
               
5.61%, 04/01/17
    248,000       272,122  
6.50%, 07/01/36
    177,000       204,188  
                 
                 
              3,088,331  
                 
 
 
Oil, Gas & Consumable Fuels 1.3%
Anadarko Petroleum Corp., 6.45%, 09/15/36
    531,000       422,399  
Apache Corp.
               
6.25%, 04/15/12
    230,000       248,374  
7.63%, 07/01/19
    59,000       73,794  
Apache Finance Canada Corp.,
               
4.38%, 05/15/15
    487,000       528,749  
Boardwalk Pipelines LP, 5.20%, 06/01/18
    88,000       89,290  
Canadian Natural Resources Ltd.,
6.25%, 03/15/38
    590,000       644,997  
Cenovus Energy, Inc., 5.70%, 10/15/19 (c)
    1,020,000       1,114,087  
CenterPoint Energy Resources Corp.,
Series B,
7.88%, 04/01/13
    354,000       405,639  
Chevron Corp.,
3.95%, 03/03/14
    585,000       627,059  
Colonial Pipeline Co., 7.63%, 04/15/32 (c)
    215,000       278,769  
Conoco Funding Co., 6.35%, 10/15/11
    767,000       818,166  
ConocoPhillips
               
4.75%, 10/15/12
    675,000       724,611  
4.60%, 01/15/15
    950,000       1,037,827  
5.90%, 10/15/32
    177,000       195,957  
6.50%, 02/01/39
    400,000       483,048  
Consolidated Natural Gas Co.,
Series A,
5.00%, 12/01/14
    1,069,000       1,156,765  
Devon Energy Corp., 7.95%, 04/15/32
    350,000       448,516  
Devon Financing Corp. ULC, 6.88%, 09/30/11
    643,000       686,509  
Enterprise Products Operating LLC,
Series G,
5.60%, 10/15/14
    1,194,000       1,295,650  
Enterprise Products Operating LLC, 6.13%, 10/15/39
    285,000       284,389  
Hess Corp.,
7.30%, 08/15/31
    354,000       417,652  
Kern River Funding Corp., 4.89%, 04/30/18 (c)
    64,325       66,742  
Kinder Morgan Energy Partners LP
               
6.75%, 03/15/11
    91,000       94,199  
6.85%, 02/15/20
    935,000       1,064,105  
5.80%, 03/15/35
    206,000       194,392  
Marathon Oil Corp., 6.80%, 03/15/32
    118,000       137,116  
Motiva Enterprises LLC, 5.20%, 09/15/12 (c)
    74,000       79,285  
Murphy Oil Corp.,
6.38%, 05/01/12
    59,000       62,676  
Occidental Petroleum Corp.
               
6.75%, 01/15/12
    265,000       287,651  
7.00%, 11/01/13
    500,000       584,325  
Pemex Project Funding Master Trust,
6.63%, 06/15/35
    324,000       333,252  
Petrobras International Finance Co., 5.75%, 01/20/20
    1,425,000       1,435,043  
 
 
 
14 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Oil, Gas & Consumable Fuels (continued)
                 
Plains All American Pipeline LP/PAA Finance Corp., 5.63%, 12/15/13
  $ 330,000     $ 358,800  
PTT PCL,
5.88%, 08/03/35 (c)
    177,000       171,379  
Shell International Finance BV,
6.38%, 12/15/38
    820,000       979,657  
Spectra Energy Capital LLC, 6.75%, 02/15/32
    327,000       340,023  
Texas Gas Transmission LLC, 4.60%, 06/01/15
    177,000       184,966  
Valero Energy Corp.
               
6.88%, 04/15/12
    590,000       635,209  
7.50%, 04/15/32
    118,000       123,712  
6.63%, 06/15/37
    455,000       443,008  
XTO Energy, Inc.
               
4.90%, 02/01/14
    147,000       161,728  
5.30%, 06/30/15
    280,000       316,939  
5.65%, 04/01/16
    118,000       135,185  
6.50%, 12/15/18
    210,000       254,841  
6.38%, 06/15/38
    610,000       754,766  
                 
                 
              21,181,246  
                 
 
 
Paper & Forest Products 0.2%
Celulosa Arauco y Constitucion SA, 5.13%, 07/09/13
    177,000       186,277  
International Paper Co.
               
5.85%, 10/30/12
    43,000       46,413  
5.30%, 04/01/15
    206,000       220,279  
9.38%, 05/15/19
    2,065,000       2,667,137  
Inversiones CMPC SA, 4.88%, 06/18/13 (c)
    177,000       186,326  
                 
                 
              3,306,432  
                 
 
 
Pharmaceuticals 0.9%
Abbott Laboratories
               
5.88%, 05/15/16
    481,000       562,718  
6.00%, 04/01/39
    1,040,000       1,195,835  
AstraZeneca PLC
               
5.40%, 06/01/14
    295,000       331,348  
5.90%, 09/15/17
    400,000       467,945  
6.45%, 09/15/37
    200,000       242,361  
Bristol-Myers Squibb Co., 5.25%, 08/15/13
    1,425,000       1,579,980  
Eli Lilly & Co.
               
6.00%, 03/15/12
    295,000       321,283  
7.13%, 06/01/25
    118,000       150,137  
GlaxoSmithKline Capital, Inc.
               
4.85%, 05/15/13
    2,700,000       2,951,910  
5.38%, 04/15/34
    201,000       210,824  
Johnson & Johnson, 4.95%, 05/15/33
    663,000       690,779  
Merck & Co., Inc.
               
4.75%, 03/01/15
    354,000       393,928  
6.40%, 03/01/28
    74,000       87,982  
5.95%, 12/01/28
    162,000       186,350  
Novartis Securities Investment Ltd., 5.13%, 02/10/19
    470,000       526,140  
Pfizer, Inc.
               
4.65%, 03/01/18
    265,000       287,437  
7.20%, 03/15/39
    525,000       690,154  
Pharmacia Corp.,
6.60%, 12/01/28
    177,000       207,273  
Schering-Plough Corp., 5.30%, 12/01/13
    1,400,000       1,570,468  
Teva Pharmaceutical Finance Co. LLC,
6.15%, 02/01/36
    142,000       164,870  
Wyeth
               
5.50%, 02/01/14
    678,000       761,624  
5.50%, 02/15/16
    634,000       726,724  
6.50%, 02/01/34
    206,000       242,757  
                 
                 
              14,550,827  
                 
 
 
Real Estate Investment Trusts (REITs) 0.4%
AvalonBay Communities, Inc.,
6.63%, 09/15/11
    39,000       40,954  
Boston Properties LP
               
5.00%, 06/01/15
    590,000       611,806  
5.63%, 11/15/20
    465,000       486,427  
Camden Property Trust, 5.00%, 06/15/15
    147,000       151,608  
CommonWealth REIT, 5.75%, 02/15/14
    177,000       184,141  
ERP Operating LP
               
5.25%, 09/15/14
    472,000       504,999  
5.38%, 08/01/16
    295,000       316,778  
HCP, Inc.
               
6.45%, 06/25/12
    56,000       59,672  
6.00%, 01/30/17
    472,000       476,567  
Health Care REIT, Inc., 6.00%, 11/15/13
    177,000       192,366  
Hospitality Properties Trust, 6.75%, 02/15/13
    745,000       790,262  
Liberty Property LP, 7.25%, 03/15/11
    38,000       39,202  
Simon Property Group LP
               
5.10%, 06/15/15
    531,000       560,109  
6.10%, 05/01/16
    413,000       458,405  
Washington Real Estate Investment Trust,
5.25%, 01/15/14
    118,000       124,791  
 
 
 
2010 Semiannual Report 15

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Real Estate Investment Trusts (continued)
                 
WEA Finance LLC/WT Finance Aust Pty Ltd.,
5.75%, 09/02/15 (c)
  $ 760,000     $ 821,547  
                 
                 
              5,819,634  
                 
 
 
Road & Rail 0.2%
Burlington Northern Santa Fe LLC
               
6.75%, 07/15/11
    215,000       226,473  
7.95%, 08/15/30
    206,000       265,731  
CSX Corp.
               
5.50%, 08/01/13
    507,000       554,240  
7.38%, 02/01/19
    400,000       489,947  
Norfolk Southern Corp., 5.59%, 05/17/25
    84,000       89,993  
Union Pacific Corp.
               
5.13%, 02/15/14
    600,000       656,423  
5.38%, 06/01/33
    62,000       61,300  
6.25%, 05/01/34
    236,000       269,429  
                 
                 
              2,613,536  
                 
 
 
Software 0.2%
Microsoft Corp.,
2.95%, 06/01/14
    420,000       439,475  
Oracle Corp.
               
3.75%, 07/08/14
    1,210,000       1,295,460  
5.25%, 01/15/16
    572,000       649,066  
5.00%, 07/08/19
    200,000       221,860  
                 
                 
              2,605,861  
                 
 
 
Specialty Retail 0.1%
Home Depot, Inc.
               
5.40%, 03/01/16
    590,000       656,677  
5.88%, 12/16/36
    300,000       307,530  
Lowe’s Cos., Inc.
               
6.50%, 03/15/29
    236,000       276,932  
5.80%, 10/15/36
    300,000       324,247  
                 
                 
              1,565,386  
                 
 
 
Thrifts & Mortgage Finance 0.0%†
Golden West Financial Corp., 4.75%, 10/01/12
    156,000       162,777  
                 
 
 
Tobacco 0.2%
Altria Group, Inc.
               
9.70%, 11/10/18
    800,000       1,013,104  
9.25%, 08/06/19
    700,000       873,674  
Philip Morris International, Inc.
               
5.65%, 05/16/18
    400,000       437,569  
6.38%, 05/16/38
    210,000       246,429  
                 
                 
              2,570,776  
                 
Trading Companies & Distributors 0.0%†
TTX Co.,
4.90%, 03/01/15 (c)
    221,000       235,276  
                 
 
 
Wireless Telecommunication Services 0.3%
America Movil SAB de CV
               
5.75%, 01/15/15
    295,000       328,491  
6.38%, 03/01/35
    177,000       189,420  
AT&T Mobility LLC, 7.13%, 12/15/31
    413,000       493,127  
New Cingular Wireless Services, Inc.
               
8.13%, 05/01/12
    44,000       49,236  
8.75%, 03/01/31
    321,000       440,669  
Rogers Communications, Inc.,
7.25%, 12/15/12
    875,000       979,002  
Vodafone Group PLC
               
5.00%, 12/16/13
    664,000       719,181  
4.15%, 06/10/14
    865,000       907,641  
7.88%, 02/15/30
    206,000       248,433  
                 
                 
              4,355,200  
                 
         
Total Corporate Bonds (cost $284,357,068)
    303,661,997  
         
                 
                 
Municipal Bonds 0.6%
California 0.2%
State of California,
7.55%, 04/01/39
    2,760,000       2,961,618  
 
 
Illinois 0.2%
State of Illinois,
5.10%, 06/01/33
    3,945,000       3,075,443  
 
 
New Jersey 0.1%
New Jersey State Turnpike Authority,
Series F,
7.41%, 01/01/40
    790,000       962,299  
 
 
New York 0.1%
Metropolitan Transportation Authority,
Series C,
7.34%, 11/15/39
    145,000       177,055  
Port Authority of New York & New Jersey,
               
6.04%, 12/01/29
    620,000       665,911  
                 
                 
              842,966  
                 
 
 
Texas 0.0%†
City of Dallas,
Series C,
               
5.50%, 02/15/24 (a)
    708,000       708,085  
                 
         
Total Municipal Bonds (cost $8,725,960)
    8,550,411  
         
 
 
 
16 Semiannual Report 2010

 

 
 
 
                 
                 
                 
U.S. Government Mortgage Backed Agencies 38.0%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Fannie Mae Pool
               
Pool# 822023
5.50%, 07/01/20
  $ 11,864     $ 12,873  
Pool# 826869
5.50%, 08/01/20
    504,358       547,268  
Pool# 835228
5.50%, 08/01/20
    12,744       13,952  
Pool# 825811
5.50%, 09/01/20
    13,204       14,458  
Pool# 832837
5.50%, 09/01/20
    464,273       503,773  
Pool# 839585
5.50%, 09/01/20
    41,556       45,091  
Pool# 811505
5.50%, 10/01/20
    34,162       37,410  
Pool# 829704
5.50%, 10/01/20
    47,658       51,712  
Pool# 838565
5.50%, 10/01/20
    562,346       615,692  
Pool# 838566
5.50%, 10/01/20
    19,478       21,135  
Pool# 840102
5.50%, 10/01/20
    399,120       436,935  
Pool# 841947
5.50%, 10/01/20
    20,336       22,066  
Pool# 843102
5.50%, 10/01/20
    15,471       16,940  
Pool# 839100
5.50%, 11/01/20
    14,780       16,038  
Pool# 840808
5.50%, 11/01/20
    22,052       23,928  
Pool# 847832
5.50%, 11/01/20
    29,088       31,562  
Pool# 847920
5.50%, 11/01/20
    509,447       552,790  
Pool# 830670
5.50%, 12/01/20
    23,877       26,136  
Pool# 866142
5.50%, 01/01/21
    46,221       50,023  
Pool# 788210
5.50%, 02/01/21
    422,715       457,490  
Pool# 837194
5.50%, 02/01/21
    14,171       15,377  
Pool# 867183
5.50%, 02/01/21
    69,556       75,278  
Pool# 811558
5.50%, 03/01/21
    538,486       584,299  
Pool# 870296
5.50%, 03/01/21
    12,276       13,286  
Pool# 878120
5.50%, 04/01/21
    25,081       27,451  
Pool# 878121
5.50%, 04/01/21
    34,727       37,584  
Pool# 811559
5.50%, 05/01/21
    301,462       326,262  
Pool# 879115
5.50%, 05/01/21
    79,613       86,163  
Pool# 883922
5.50%, 05/01/21
    450,498       487,558  
Pool# 885440
5.50%, 05/01/21
    10,788       11,805  
Pool# 845489
5.50%, 06/01/21
    9,046       9,790  
Pool# 880950
5.50%, 07/01/21
    322,752       349,304  
Pool# 870092
5.50%, 08/01/21
    14,627       15,830  
Pool# 896599
5.50%, 08/01/21
    15,900       17,208  
Pool# 896605
5.50%, 08/01/21
    10,795       11,683  
Pool# 903350
5.00%, 10/01/21
    32,300       34,578  
Pool# 894126
5.50%, 10/01/21
    8,808       9,532  
Pool# 902789
5.50%, 11/01/21
    365,432       395,494  
Pool# 901509
5.00%, 12/01/21
    34,084       36,489  
Pool# 906708
5.00%, 12/01/21
    481,332       515,288  
Pool# 905586
5.50%, 12/01/21
    407,814       441,363  
Pool# 906205
5.50%, 01/01/22
    12,695       13,739  
Pool# 906317
5.50%, 01/01/22
    22,401       24,232  
Pool# 928106
5.50%, 02/01/22
    578,823       626,137  
Pool# 913889
5.50%, 03/01/22
    240,410       260,188  
Pool# 914385
5.50%, 03/01/22
    10,558       11,421  
Pool# 913323
5.50%, 04/01/22
    17,377       18,798  
Pool# 913331
5.50%, 05/01/22
    27,073       29,286  
Pool# 941632
5.00%, 06/01/22
    1,623,411       1,734,640  
Pool# 899438
5.50%, 06/01/22
    419,336       453,612  
Pool# 939673
5.50%, 06/01/22
    90,819       98,243  
Pool# 928711
6.00%, 09/01/22
    892,204       971,178  
Pool# 963257
5.00%, 05/01/23
    3,711,045       3,964,730  
Pool# AD0054
5.00%, 02/01/24
    3,435,196       3,670,561  
 
 
 
2010 Semiannual Report 17

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# AA2549
4.00%, 04/01/24
  $ 4,200,755     $ 4,375,267  
Pool# 934863
4.00%, 06/01/24
    6,323,722       6,586,429  
Pool# AC1374
4.00%, 08/01/24
    1,338,640       1,394,251  
Pool# AC1529
4.50%, 09/01/24
    5,922,239       6,259,702  
Pool# AC5377
4.50%, 10/01/24
    2,279,414       2,409,301  
Pool# 560868
7.50%, 02/01/31
    2,667       3,041  
Pool# 607212
7.50%, 10/01/31
    51,277       58,479  
Pool# 607559
6.50%, 11/01/31
    1,985       2,217  
Pool# 607632
6.50%, 11/01/31
    432       482  
Pool# 545556
7.00%, 04/01/32
    32,498       36,810  
Pool# 545605
7.00%, 05/01/32
    41,787       47,615  
Pool# 651361
7.00%, 07/01/32
    23,592       26,676  
Pool# 661664
7.50%, 09/01/32
    27,662       31,486  
Pool# 689741
5.50%, 02/01/33
    184,667       199,164  
Pool# 656559
6.50%, 02/01/33
    192,161       214,542  
Pool# 555346
5.50%, 04/01/33
    582,204       627,907  
Pool# 713560
5.50%, 04/01/33
    51,183       55,201  
Pool# 694846
6.50%, 04/01/33
    33,271       37,062  
Pool# 701261
7.00%, 04/01/33
    3,551       3,963  
Pool# 555421
5.00%, 05/01/33
    40,770,463       43,358,540  
Pool# 555684
5.50%, 07/01/33
    124,270       134,026  
Pool# 720087
5.50%, 07/01/33
    5,214,837       5,624,201  
Pool# 728721
5.50%, 07/01/33
    334,396       360,646  
Pool# 743235
5.50%, 10/01/33
    195,342       210,676  
Pool# 750229
6.50%, 10/01/33
    174,334       194,203  
Pool# 755872
5.50%, 12/01/33
    2,574,394       2,776,484  
Pool# 725221
5.50%, 01/01/34
    72,844       78,563  
Pool# 725223
5.50%, 03/01/34
    7,517       8,107  
Pool# 725425
5.50%, 04/01/34
    4,962,740       5,348,144  
Pool# 725423
5.50%, 05/01/34
    387,606       418,033  
Pool# 725594
5.50%, 07/01/34
    1,664,610       1,792,681  
Pool# 788027
6.50%, 09/01/34
    155,120       172,169  
Pool# 807310
7.00%, 11/01/34
    23,413       26,087  
Pool# 735141
5.50%, 01/01/35
    5,958,953       6,417,420  
Pool# 889852
5.50%, 05/01/35
    139,976       151,051  
Pool# 256023
6.00%, 12/01/35
    4,538,208       4,947,639  
Pool# 889745
5.50%, 06/01/36
    68,281       73,641  
Pool# 888635
5.50%, 09/01/36
    1,933,609       2,085,398  
Pool# 901957
5.50%, 10/01/36
    53,729       57,762  
Pool# 907252
7.00%, 12/01/36
    504,525       560,986  
Pool# 923834
7.00%, 04/01/37
    378,032       420,442  
Pool# 888596
6.50%, 07/01/37
    9,493,623       10,412,428  
Pool# 925172
7.00%, 08/01/37
    280,756       312,253  
Pool# 995050
6.00%, 09/01/37
    39,503,896       42,993,817  
Pool# 947831
7.00%, 10/01/37
    384,936       428,120  
Pool# 955194
7.00%, 11/01/37
    976,498       1,086,048  
Pool# 889072
6.50%, 12/01/37
    1,943,734       2,131,851  
Pool# 928940
7.00%, 12/01/37
    329,579       366,554  
Pool# 970320
5.50%, 02/01/38
    9,133,477       9,817,118  
Pool# 257137
7.00%, 03/01/38
    19,609       21,773  
Pool# 257409
7.00%, 10/01/38
    544,237       604,292  
Pool# 990810
7.00%, 10/01/38
    856,927       951,486  
Pool# AA6013
4.50%, 05/01/39
    10,929,084       11,347,804  
Pool# 190396
4.50%, 06/01/39
    11,954,972       12,412,996  
 
 
 
18 Semiannual Report 2010

 

 
 
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# AA9611
4.00%, 07/01/39
  $ 6,113,054     $ 6,199,336  
Pool# AA9393
4.50%, 07/01/39
    23,096,791       23,981,686  
Pool# AA9809
4.50%, 07/01/39
    13,319,515       13,829,818  
Pool# 994002
4.00%, 08/01/39
    4,868,605       4,937,323  
Pool# AC1454
4.00%, 08/01/39
    7,282,101       7,384,884  
Pool# AC1921
4.00%, 09/01/39
    3,229,252       3,274,832  
Pool# AC2651
4.00%, 10/01/39
    2,070,007       2,099,224  
Pool# 932274
4.50%, 12/01/39
    3,387,088       3,516,856  
Pool# AC8512
4.50%, 12/01/39
    10,511,507       10,914,228  
Pool# AC9895
3.29%, 04/01/40 (a)
    7,664,903       7,983,073  
Pool# AC9890
3.31%, 04/01/40 (a)
    10,930,170       11,375,574  
Pool# AD2888
4.50%, 04/01/40
    4,162,859       4,321,698  
4.50%, 08/25/40
    4,500,000       4,646,952  
Freddie Mac Gold Pool
               
Pool# E00394
7.50%, 09/01/10
    685       693  
Pool# M80898
4.50%, 02/01/11
    180,693       184,697  
Pool# M80904
4.50%, 03/01/11
    118,363       120,986  
Pool# M80917
4.50%, 05/01/11
    29,909       29,964  
Pool# M80926
4.50%, 07/01/11
    111,282       113,565  
Pool# M80934
4.50%, 08/01/11
    157,040       160,521  
Pool# G10940
6.50%, 11/01/11
    1,414       1,426  
Pool# G11130
6.00%, 12/01/11
    11,828       12,089  
Pool# M80981
4.50%, 07/01/12
    67,650       69,581  
Pool# E00507
7.50%, 09/01/12
    891       945  
Pool# G10749
6.00%, 10/01/12
    20,139       21,737  
Pool# M81009
4.50%, 02/01/13
    40,100       41,265  
Pool# E69050
6.00%, 02/01/13
    19,672       21,356  
Pool# E72896
7.00%, 10/01/13
    6,799       7,242  
Pool# G11612
6.00%, 04/01/14
    5,932       6,063  
Pool# E00677
6.00%, 06/01/14
    44,382       47,577  
Pool# E00802
7.50%, 02/01/15
    26,546       28,654  
Pool# G11001
6.50%, 03/01/15
    15,854       17,226  
Pool# G11003
7.50%, 04/01/15
    1,283       1,382  
Pool# G11164
7.00%, 05/01/15
    3,946       4,259  
Pool# E81396
7.00%, 10/01/15
    745       808  
Pool# E81394
7.50%, 10/01/15
    7,899       8,576  
Pool# E84097
6.50%, 12/01/15
    3,287       3,572  
Pool# E00938
7.00%, 01/01/16
    10,015       10,849  
Pool# E82132
7.00%, 01/01/16
    2,170       2,352  
Pool# E82815
6.00%, 03/01/16
    8,197       8,899  
Pool# E83231
6.00%, 04/01/16
    2,295       2,496  
Pool# E83233
6.00%, 04/01/16
    5,944       6,464  
Pool# G11972
6.00%, 04/01/16
    130,120       141,257  
Pool# E83046
7.00%, 04/01/16
    1,461       1,584  
Pool# E00975
6.00%, 05/01/16
    34,072       36,794  
Pool# E83355
6.00%, 05/01/16
    8,148       8,861  
Pool# E83636
6.00%, 05/01/16
    15,196       16,525  
Pool# E83933
6.50%, 05/01/16
    642       698  
Pool# E00985
6.00%, 06/01/16
    18,450       19,931  
Pool# E00987
6.50%, 06/01/16
    16,015       17,287  
Pool# E84236
6.50%, 06/01/16
    4,547       4,941  
Pool# E00996
6.50%, 07/01/16
    2,060       2,225  
Pool# E84912
6.50%, 08/01/16
    9,952       10,813  
Pool# E85117
6.50%, 08/01/16
    5,829       6,334  
Pool# E85387
6.00%, 09/01/16
    18,256       19,853  
 
 
 
2010 Semiannual Report 19

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# E85800
6.50%, 10/01/16
  $ 4,663     $ 5,066  
Pool# E86183
6.00%, 11/01/16
    3,013       3,277  
Pool# E01083
7.00%, 11/01/16
    4,727       5,131  
Pool# G11207
7.00%, 11/01/16
    10,769       11,671  
Pool# E86533
6.00%, 12/01/16
    7,263       7,898  
Pool# E01095
6.00%, 01/01/17
    8,085       8,752  
Pool# E87584
6.00%, 01/01/17
    6,224       6,768  
Pool# E86995
6.50%, 01/01/17
    16,750       18,199  
Pool# E87291
6.50%, 01/01/17
    26,308       28,584  
Pool# E87446
6.50%, 01/01/17
    4,726       5,154  
Pool# E88076
6.00%, 02/01/17
    7,944       8,658  
Pool# E01127
6.50%, 02/01/17
    12,832       13,913  
Pool# E88055
6.50%, 02/01/17
    45,200       49,294  
Pool# E88106
6.50%, 02/01/17
    27,630       30,133  
Pool# E01137
6.00%, 03/01/17
    12,212       13,230  
Pool# E88134
6.00%, 03/01/17
    2,769       3,018  
Pool# E88474
6.00%, 03/01/17
    11,155       12,158  
Pool# E88768
6.00%, 03/01/17
    27,733       30,158  
Pool# E01138
6.50%, 03/01/17
    7,410       8,033  
Pool# E01139
6.00%, 04/01/17
    56,666       61,416  
Pool# E88729
6.00%, 04/01/17
    10,712       11,676  
Pool# E89149
6.00%, 04/01/17
    14,719       16,043  
Pool# E89151
6.00%, 04/01/17
    9,383       10,227  
Pool# E89217
6.00%, 04/01/17
    10,297       11,223  
Pool# E89222
6.00%, 04/01/17
    58,220       63,458  
Pool# E89347
6.00%, 04/01/17
    3,484       3,798  
Pool# E89496
6.00%, 04/01/17
    8,659       9,438  
Pool# E89203
6.50%, 04/01/17
    5,767       6,289  
Pool# E01140
6.00%, 05/01/17
    48,605       52,704  
Pool# E89530
6.00%, 05/01/17
    37,159       40,502  
Pool# E89746
6.00%, 05/01/17
    81,565       88,902  
Pool# E89788
6.00%, 05/01/17
    7,758       8,456  
Pool# E89909
6.00%, 05/01/17
    11,594       12,637  
Pool# G11409
6.00%, 05/01/17
    74,782       81,322  
Pool# E01156
6.50%, 05/01/17
    19,750       21,410  
Pool# E89924
6.50%, 05/01/17
    41,088       44,810  
Pool# B15071
6.00%, 06/01/17
    157,946       171,761  
Pool# E01157
6.00%, 06/01/17
    34,936       37,900  
Pool# E90194
6.00%, 06/01/17
    8,954       9,759  
Pool# E90227
6.00%, 06/01/17
    8,207       8,946  
Pool# E90313
6.00%, 06/01/17
    4,143       4,515  
Pool# E90594
6.00%, 07/01/17
    31,568       34,408  
Pool# E90645
6.00%, 07/01/17
    53,887       58,735  
Pool# E90667
6.00%, 07/01/17
    9,344       10,185  
Pool# E01205
6.50%, 08/01/17
    15,601       16,912  
Pool# G11458
6.00%, 09/01/17
    19,933       21,639  
Pool# G11434
6.50%, 01/01/18
    20,371       22,134  
Pool# G18007
6.00%, 07/01/19
    47,150       51,465  
Pool# B16087
6.00%, 08/01/19
    85,210       93,008  
Pool# G18062
6.00%, 06/01/20
    79,749       87,048  
Pool# J00718
5.00%, 12/01/20
    715,001       767,230  
Pool# J00935
5.00%, 12/01/20
    106,186       113,943  
Pool# J00854
5.00%, 01/01/21
    390,677       419,215  
Pool# J00871
5.00%, 01/01/21
    167,256       179,473  
 
 
 
20 Semiannual Report 2010

 

 
 
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# J01049
5.00%, 01/01/21
  $ 1,503,259     $ 1,613,067  
Pool# G18096
5.50%, 01/01/21
    63,294       68,629  
Pool# J01189
5.00%, 02/01/21
    130,061       139,237  
Pool# J01279
5.50%, 02/01/21
    131,144       141,912  
Pool# J01256
5.00%, 03/01/21
    100,004       107,059  
Pool# J01414
5.00%, 03/01/21
    85,732       91,780  
Pool# J01576
5.00%, 04/01/21
    418,817       448,363  
Pool# J01570
5.50%, 04/01/21
    92,498       100,093  
Pool# J01633
5.50%, 04/01/21
    376,472       407,384  
Pool# J01757
5.00%, 05/01/21
    169,675       181,645  
Pool# J01771
5.00%, 05/01/21
    62,042       66,419  
Pool# J01833
5.00%, 05/01/21
    77,847       83,339  
Pool# J01879
5.00%, 05/01/21
    145,381       155,637  
Pool# J06015
5.00%, 05/01/21
    169,593       181,557  
Pool# G18122
5.00%, 06/01/21
    139,430       149,267  
Pool# G18123
5.50%, 06/01/21
    216,322       234,084  
Pool# J01980
6.00%, 06/01/21
    120,333       131,121  
Pool# J03074
5.00%, 07/01/21
    128,765       137,849  
Pool# J03028
5.50%, 07/01/21
    97,896       105,934  
Pool# G12245
6.00%, 07/01/21
    82,183       89,550  
Pool# G12310
5.50%, 08/01/21
    59,921       64,841  
Pool# G12348
6.00%, 08/01/21
    144,054       156,969  
Pool# G12412
5.50%, 11/01/21
    78,542       84,991  
Pool# G13145
5.50%, 04/01/23
    3,653,045       3,948,793  
Pool# C00351
8.00%, 07/01/24
    1,819       2,093  
Pool# D60780
8.00%, 06/01/25
    4,797       5,525  
4.00%, 07/15/25
    6,000,000       6,227,814  
4.50%, 07/15/25
    12,400,000       13,070,369  
Pool# D64617
8.00%, 10/01/25
    922       906  
Pool# D82854
7.00%, 10/01/27
    4,695       5,326  
Pool# C00566
7.50%, 12/01/27
    6,882       7,859  
Pool# C00678
7.00%, 11/01/28
    10,112       11,482  
Pool# C18271
7.00%, 11/01/28
    5,695       6,466  
Pool# C00836
7.00%, 07/01/29
    4,042       4,593  
Pool# A16201
7.00%, 08/01/29
    20,783       23,613  
Pool# C31282
7.00%, 09/01/29
    723       822  
Pool# C31285
7.00%, 09/01/29
    9,416       10,698  
Pool# A18212
7.00%, 11/01/29
    130,182       147,909  
Pool# C32914
8.00%, 11/01/29
    5,775       6,657  
Pool# C37436
8.00%, 01/01/30
    6,339       7,307  
Pool# C36306
7.00%, 02/01/30
    2,973       3,380  
Pool# C36429
7.00%, 02/01/30
    6,016       6,840  
Pool# C00921
7.50%, 02/01/30
    6,003       6,874  
Pool# G01108
7.00%, 04/01/30
    3,183       3,616  
Pool# C37703
7.50%, 04/01/30
    4,339       4,969  
Pool# C41561
8.00%, 08/01/30
    2,677       3,086  
Pool# C01051
8.00%, 09/01/30
    10,840       12,131  
Pool# C43550
7.00%, 10/01/30
    10,833       12,318  
Pool# C44017
7.50%, 10/01/30
    994       1,139  
Pool# C43967
8.00%, 10/01/30
    49,168       56,689  
Pool# C44978
7.00%, 11/01/30
    2,158       2,454  
Pool# C44957
8.00%, 11/01/30
    5,737       6,614  
Pool# C01106
7.00%, 12/01/30
    51,725       58,814  
Pool# C01103
7.50%, 12/01/30
    4,874       5,581  
Pool# C01116
7.50%, 01/01/31
    4,495       5,147  
 
 
 
2010 Semiannual Report 21

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# C46932
7.50%, 01/01/31
  $ 7,105     $ 8,135  
Pool# C47287
7.50%, 02/01/31
    6,468       7,406  
Pool# C48851
7.00%, 03/01/31
    9,506       10,813  
Pool# G01217
7.00%, 03/01/31
    46,361       52,715  
Pool# C48206
7.50%, 03/01/31
    5,625       6,428  
Pool# C53324
7.00%, 06/01/31
    7,815       8,890  
Pool# C01209
8.00%, 06/01/31
    2,853       3,289  
Pool# C54792
7.00%, 07/01/31
    50,169       57,066  
Pool# C55071
7.50%, 07/01/31
    854       978  
Pool# G01309
7.00%, 08/01/31
    11,616       13,213  
Pool# C01222
7.00%, 09/01/31
    8,362       9,511  
Pool# G01311
7.00%, 09/01/31
    67,190       76,399  
Pool# G01315
7.00%, 09/01/31
    2,645       3,007  
Pool# C58647
7.00%, 10/01/31
    3,297       3,750  
Pool# C58694
7.00%, 10/01/31
    15,902       18,088  
Pool# C60012
7.00%, 11/01/31
    2,451       2,788  
Pool# C61298
8.00%, 11/01/31
    7,256       8,366  
Pool# C61105
7.00%, 12/01/31
    7,857       8,937  
Pool# C01305
7.50%, 12/01/31
    5,324       6,100  
Pool# C62218
7.00%, 01/01/32
    7,711       8,771  
Pool# C63171
7.00%, 01/01/32
    26,271       29,882  
Pool# C64121
7.50%, 02/01/32
    7,911       9,063  
Pool# C01345
7.00%, 04/01/32
    36,988       41,739  
Pool# C66744
7.00%, 04/01/32
    1,360       1,534  
Pool# G01391
7.00%, 04/01/32
    111,887       127,222  
Pool# C65717
7.50%, 04/01/32
    10,923       12,519  
Pool# C01370
8.00%, 04/01/32
    6,784       7,800  
Pool# C66916
7.00%, 05/01/32
    31,634       35,698  
Pool# C67235
7.00%, 05/01/32
    67,838       76,553  
Pool# C01381
8.00%, 05/01/32
    47,740       55,063  
Pool# C68290
7.00%, 06/01/32
    12,615       14,235  
Pool# C68300
7.00%, 06/01/32
    55,385       62,501  
Pool# C68307
8.00%, 06/01/32
    1,716       1,788  
Pool# G01449
7.00%, 07/01/32
    79,289       90,156  
Pool# C68988
7.50%, 07/01/32
    4,426       5,055  
Pool# C69908
7.00%, 08/01/32
    49,992       56,415  
Pool# C70211
7.00%, 08/01/32
    16,652       18,792  
Pool# C71089
7.50%, 09/01/32
    15,832       18,146  
Pool# G01536
7.00%, 03/01/33
    59,344       66,968  
Pool# A16419
6.50%, 11/01/33
    38,590       42,831  
Pool# A16522
6.50%, 12/01/33
    236,421       262,405  
Pool# A17177
6.50%, 12/01/33
    15,935       17,687  
Pool# A17262
6.50%, 12/01/33
    49,240       54,651  
Pool# C01806
7.00%, 01/01/34
    38,340       43,266  
Pool# A21356
6.50%, 04/01/34
    162,089       179,498  
Pool# C01851
6.50%, 04/01/34
    142,499       157,805  
Pool# A22067
6.50%, 05/01/34
    250,687       277,613  
Pool# A24301
6.50%, 05/01/34
    127,963       141,707  
Pool# A24988
6.50%, 07/01/34
    124,107       137,437  
Pool# G01741
6.50%, 10/01/34
    108,081       120,230  
Pool# G08023
6.50%, 11/01/34
    179,729       199,033  
Pool# A33137
6.50%, 01/01/35
    36,115       39,993  
Pool# A31989
6.50%, 04/01/35
    62,659       69,036  
Pool# G08064
6.50%, 04/01/35
    105,892       116,669  
 
 
 
22 Semiannual Report 2010

 

 
 
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# G01947
7.00%, 05/01/35
  $ 89,451     $ 100,943  
Pool# G08073
5.50%, 08/01/35
    1,582,873       1,704,408  
Pool# A37135
5.50%, 09/01/35
    2,973,390       3,201,691  
Pool# A46935
6.50%, 09/01/35
    49,661       54,716  
Pool# A38255
5.50%, 10/01/35
    2,361,095       2,542,383  
Pool# A38531
5.50%, 10/01/35
    3,008,429       3,239,420  
Pool# G08088
6.50%, 10/01/35
    615,543       678,194  
Pool# A39759
5.50%, 11/01/35
    174,768       188,187  
Pool# A47682
6.50%, 11/01/35
    454,480       500,738  
Pool# A40376
5.50%, 12/01/35
    148,815       160,241  
Pool# A42305
5.50%, 01/01/36
    863,467       928,416  
Pool# A41548
7.00%, 01/01/36
    118,900       132,802  
Pool# G08111
5.50%, 02/01/36
    3,675,253       3,951,701  
Pool# A43672
6.50%, 02/01/36
    39,258       43,156  
Pool# A48303
7.00%, 02/01/36
    42,367       47,196  
Pool# A43452
5.50%, 03/01/36
    53,484       57,507  
Pool# A43861
5.50%, 03/01/36
    2,765,006       2,972,986  
Pool# A43884
5.50%, 03/01/36
    2,292,719       2,468,757  
Pool# A43885
5.50%, 03/01/36
    1,828,088       1,965,595  
Pool# A43886
5.50%, 03/01/36
    3,060,667       3,290,887  
Pool# A48378
5.50%, 03/01/36
    1,471,248       1,581,913  
Pool# G08116
5.50%, 03/01/36
    701,811       754,600  
Pool# A48735
5.50%, 05/01/36
    275,430       296,148  
Pool# A49960
7.00%, 06/01/36
    18,389       20,485  
Pool# A53039
6.50%, 10/01/36
    312,132       343,120  
Pool# A53219
6.50%, 10/01/36
    208,800       229,530  
Pool# G03620
6.50%, 10/01/37
    63,355       69,566  
Pool# G04473
5.50%, 06/01/38
    5,968,244       6,412,170  
Pool# G04581
6.50%, 08/01/38
    2,470,062       2,712,205  
Pool# A81674
6.00%, 09/01/38
    6,920,776       7,520,980  
Pool# A85442
5.00%, 03/01/39
    5,045,438       5,344,433  
Pool# G05459
5.50%, 05/01/39
    26,136,870       28,078,350  
Pool# A88133
4.50%, 08/01/39
    8,435,729       8,751,015  
Pool# A91165
5.00%, 02/01/40
    51,682,151       54,744,855  
Pool# A91538
4.50%, 03/01/40
    6,449,523       6,690,574  
6.00%, 08/15/40
    36,300,000       39,283,424  
Ginnie Mae I Pool
               
Pool# 279461
9.00%, 11/15/19
    2,302       2,631  
Pool# 376510
7.00%, 05/15/24
    6,057       6,842  
Pool# 457801
7.00%, 08/15/28
    6,902       7,840  
Pool# 486936
6.50%, 02/15/29
    6,631       7,435  
Pool# 502969
6.00%, 03/15/29
    23,807       26,346  
Pool# 487053
7.00%, 03/15/29
    9,834       11,177  
Pool# 781014
6.00%, 04/15/29
    18,915       20,933  
Pool# 509099
7.00%, 06/15/29
    4,690       5,330  
Pool# 470643
7.00%, 07/15/29
    18,570       21,107  
Pool# 434505
7.50%, 08/15/29
    1,021       1,162  
Pool# 416538
7.00%, 10/15/29
    1,720       1,955  
Pool# 524269
8.00%, 11/15/29
    10,318       10,717  
Pool# 781124
7.00%, 12/15/29
    36,986       42,026  
Pool# 525561
8.00%, 01/15/30
    3,772       4,359  
Pool# 507396
7.50%, 09/15/30
    100,763       114,840  
Pool# 531352
7.50%, 09/15/30
    9,747       11,109  
Pool# 536334
7.50%, 10/15/30
    1,184       1,349  
Pool# 540659
7.00%, 01/15/31
    1,145       1,300  
 
 
 
2010 Semiannual Report 23

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# 486019
7.50%, 01/15/31
  $ 3,110     $ 3,552  
Pool# 535388
7.50%, 01/15/31
    4,089       4,670  
Pool# 537406
7.50%, 02/15/31
    1,885       2,153  
Pool# 528589
6.50%, 03/15/31
    89,277       99,993  
Pool# 508473
7.50%, 04/15/31
    15,049       17,187  
Pool# 544470
8.00%, 04/15/31
    4,307       4,484  
Pool# 781287
7.00%, 05/15/31
    20,256       23,003  
Pool# 549742
7.00%, 07/15/31
    6,919       7,860  
Pool# 781319
7.00%, 07/15/31
    6,299       7,154  
Pool# 485879
7.00%, 08/15/31
    22,037       25,034  
Pool# 572554
6.50%, 09/15/31
    178,009       199,375  
Pool# 555125
7.00%, 09/15/31
    3,576       4,062  
Pool# 781328
7.00%, 09/15/31
    19,196       21,801  
Pool# 550991
6.50%, 10/15/31
    6,578       7,368  
Pool# 571267
7.00%, 10/15/31
    1,932       2,194  
Pool# 547948
6.50%, 11/15/31
    9,568       10,716  
Pool# 574837
7.50%, 11/15/31
    3,252       3,712  
Pool# 555171
6.50%, 12/15/31
    2,392       2,680  
Pool# 781380
7.50%, 12/15/31
    5,832       6,649  
Pool# 781481
7.50%, 01/15/32
    30,148       34,356  
Pool# 580972
6.50%, 02/15/32
    4,576       5,100  
Pool# 781401
7.50%, 02/15/32
    16,101       18,367  
Pool# 781916
6.50%, 03/15/32
    374,845       418,994  
Pool# 552474
7.00%, 03/15/32
    13,134       14,928  
Pool# 781478
7.50%, 03/15/32
    10,240       11,669  
Pool# 781429
8.00%, 03/15/32
    16,081       18,670  
Pool# 781431
7.00%, 04/15/32
    69,374       78,813  
Pool# 568715
7.00%, 05/15/32
    54,856       62,345  
Pool# 552616
7.00%, 06/15/32
    79,493       90,346  
Pool# 570022
7.00%, 07/15/32
    105,328       119,708  
Pool# 583645
8.00%, 07/15/32
    7,542       8,722  
Pool# 595077
6.00%, 10/15/32
    50,311       55,677  
Pool# 596657
7.00%, 10/15/32
    6,880       7,819  
Pool# 552903
6.50%, 11/15/32
    348,087       387,910  
Pool# 552952
6.00%, 12/15/32
    49,379       54,645  
Pool# 588192
6.00%, 02/15/33
    24,870       27,461  
Pool# 602102
6.00%, 02/15/33
    31,941       35,268  
Pool# 553144
5.50%, 04/15/33
    208,913       227,409  
Pool# 604243
6.00%, 04/15/33
    100,418       110,877  
Pool# 611526
6.00%, 05/15/33
    44,093       48,686  
Pool# 631924
6.00%, 05/15/33
    93,784       103,552  
Pool# 553320
6.00%, 06/15/33
    115,230       127,231  
Pool# 572733
6.00%, 07/15/33
    11,678       12,895  
Pool# 573916
6.00%, 11/15/33
    95,858       105,843  
Pool# 604788
6.50%, 11/15/33
    236,629       263,109  
Pool# 604875
6.00%, 12/15/33
    212,313       234,427  
Pool# 781688
6.00%, 12/15/33
    216,780       239,585  
Pool# 781690
6.00%, 12/15/33
    92,592       102,391  
Pool# 781699
7.00%, 12/15/33
    35,314       40,114  
Pool# 621856
6.00%, 01/15/34
    58,801       64,705  
Pool# 564799
6.00%, 03/15/34
    505,331       556,069  
Pool# 630038
6.50%, 08/15/34
    173,924       193,061  
Pool# 781804
6.00%, 09/15/34
    299,271       329,506  
Pool# 781847
6.00%, 12/15/34
    275,358       303,151  
 
 
 
24 Semiannual Report 2010

 

 
 
 
                 
U.S. Government Mortgage Backed
Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Pool# 486921
5.50%, 02/15/35
  $ 110,374     $ 119,870  
Pool# 781902
6.00%, 02/15/35
    236,188       259,315  
Pool# 781933
6.00%, 06/15/35
    42,400       46,578  
Pool# 649454
5.50%, 09/15/35
    1,148,633       1,247,451  
Pool# 649510
5.50%, 10/15/35
    1,716,830       1,864,531  
Pool# 649513
5.50%, 10/15/35
    2,510,322       2,726,288  
Pool# 652207
5.50%, 03/15/36
    1,956,210       2,121,449  
Pool# 652539
5.00%, 05/15/36
    169,210       180,928  
Pool# 655519
5.00%, 05/15/36
    223,151       238,605  
Pool# 606308
5.50%, 05/15/36
    326,479       354,056  
Pool# 606314
5.50%, 05/15/36
    149,561       162,195  
Pool# 657912
6.50%, 08/15/36
    84,138       92,607  
Pool# 704630
5.50%, 07/15/39
    498,426       539,437  
Pool# 722292
5.00%, 09/15/39
    9,391,235       10,029,838  
6.00%, 07/15/40
    11,800,000       12,858,318  
4.50%, 08/15/40
    1,400,000       1,453,375  
5.00%, 08/15/40
    6,900,000       7,321,549  
5.50%, 08/15/40
    6,200,000       6,678,566  
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $573,607,232)
    594,106,219  
         
                 
                 
Sovereign Bonds 2.5%
BRAZIL 0.2%
Brazilian Government International Bond,
               
7.13%, 01/20/37
    2,105,000       2,483,900  
Republic of Brazil, 10.50%, 07/14/14
    700,000       889,000  
                 
              3,372,900  
                 
 
 
CANADA 0.6%
Canada Government International Bond,
               
2.38%, 09/10/14
    2,915,000       2,991,854  
Province of British Columbia Canada,
               
4.30%, 05/30/13
    159,000       172,778  
Province of Nova Scotia Canada,
5.13%, 01/26/17
    885,000       1,008,461  
Province of Ontario Canada
               
4.38%, 02/15/13
    428,000       459,378  
4.10%, 06/16/14
    2,470,000       2,656,235  
4.50%, 02/03/15
    667,000       729,911  
4.75%, 01/19/16
    295,000       326,301  
Province of Quebec Canada
               
4.60%, 05/26/15
    354,000       390,834  
7.50%, 09/15/29
    578,000       793,376  
                 
                 
              9,529,128  
                 
 
 
CHILE 0.0%†
Chile Government International Bond,
               
5.50%, 01/15/13
    177,000       193,213  
                 
 
 
CHINA 0.0%†
China Government International Bond,
               
4.75%, 10/29/13
    295,000       321,663  
                 
 
 
ITALY 0.2%
Italian Republic
               
4.38%, 06/15/13
    560,000       576,450  
4.50%, 01/21/15 (b)
    938,000       945,841  
4.75%, 01/25/16
    413,000       429,425  
6.88%, 09/27/23
    251,000       285,568  
5.38%, 06/15/33
    841,000       825,855  
                 
                 
              3,063,139  
                 
 
 
MEXICO 0.2%
Mexico Government International Bond
               
6.38%, 01/16/13
    643,000       705,050  
6.75%, 09/27/34
    1,496,000       1,724,140  
                 
                 
              2,429,190  
                 
 
 
PERU 0.1%
Peru Government International Bond,
               
7.13%, 03/30/19
    1,840,000       2,175,800  
                 
POLAND 0.0%†
Poland Government International Bond,
               
5.00%, 10/19/15
    224,000       237,378  
                 
 
 
SOUTH AFRICA 0.0%†
South Africa Government International Bond,
               
6.50%, 06/02/14 (b)
    206,000       228,660  
                 
 
 
 
2010 Semiannual Report 25

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
SOUTH KOREA 0.1%
Republic of Korea,
4.25%, 06/01/13
  $ 708,000     $ 739,010  
                 
 
 
SUPRANATIONAL 0.7%
Asian Development Bank, 2.63%, 02/09/15 (b)
    3,710,000       3,812,032  
Corp. Andina de Fomento, 6.88%, 03/15/12
    236,000       254,906  
European Investment Bank
               
3.00%, 04/08/14
    1,260,000       1,308,220  
4.63%, 05/15/14
    895,000       983,268  
4.63%, 10/20/15
    2,325,000       2,568,872  
5.13%, 09/13/16
    350,000       396,444  
Inter-American Development Bank,
               
5.13%, 09/13/16
    235,000       268,967  
International Bank for Reconstruction & Development,
               
7.63%, 01/19/23
    973,000       1,359,210  
                 
              10,951,919  
                 
 
 
SWEDEN 0.4%
Svensk Exportkredit AB, 4.88%, 09/29/11
    5,899,000       6,174,731  
                 
         
Total Sovereign Bonds (cost $37,377,356)
    39,416,731  
         
                 
                 
U.S. Government Sponsored & Agency Obligations 5.3%
                 
Fannie Mae
               
5.38%, 11/15/11
    3,501,000       3,730,809  
1.75%, 08/10/12 (b)
    2,770,000       2,823,996  
1.50%, 06/26/13
    7,680,000       7,764,042  
2.50%, 05/15/14 (b)
    4,800,000       4,955,222  
3.00%, 09/16/14 (b)
    5,325,000       5,588,060  
4.63%, 10/15/14
    1,779,000       1,984,576  
5.00%, 04/15/15 (b)
    1,628,000       1,847,060  
4.38%, 10/15/15
    118,000       130,508  
5.38%, 06/12/17 (b)
    8,495,000       9,898,145  
Federal Farm Credit Bank 4.88%, 01/17/17
    695,000       785,715  
Federal Home Loan Banks
               
3.63%, 10/18/13
    5,000,000       5,355,700  
4.88%, 05/17/17 (b)
    1,125,000       1,281,280  
5.25%, 06/05/17
    7,000,000       8,040,578  
Financing Corp. (FICO) 9.80%, 11/30/17
    18,000       26,091  
Freddie Mac
               
5.13%, 07/15/12
    6,091,000       6,641,261  
4.13%, 12/21/12
    3,610,000       3,896,670  
4.38%, 07/17/15
    7,214,000       7,999,677  
3.75%, 03/27/19 (b)
    1,870,000       1,951,014  
6.75%, 09/15/29 (b)
    557,000       729,189  
6.25%, 07/15/32
    1,245,000       1,576,059  
Tennessee Valley Authority
               
6.25%, 12/15/17
    50,000       60,783  
4.50%, 04/01/18
    4,635,000       5,124,447  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $76,673,163)
    82,190,882  
         
                 
                 
U.S. Treasury Bonds 4.6%
                 
U.S. Treasury Bond
               
3.50%, 02/15/39
    2,285,000       2,122,550  
4.25%, 05/15/39
    5,595,000       5,915,840  
4.38%, 11/15/39
    8,245,000       8,900,733  
4.38%, 05/15/40
    1,700,000       1,838,652  
4.50%, 02/15/36 (b)
    2,620,000       2,894,283  
4.50%, 08/15/39
    2,380,000       2,621,346  
4.63%, 02/15/40
    8,295,000       9,324,094  
5.00%, 05/15/37
    305,000       363,522  
5.38%, 02/15/31
    5,337,000       6,566,175  
6.25%, 08/15/23
    13,581,000       17,604,371  
6.88%, 08/15/25
    1,613,000       2,238,038  
8.00%, 11/15/21
    3,710,000       5,395,731  
8.13%, 08/15/19
    1,900,000       2,706,907  
8.50%, 02/15/20
    2,138,000       3,136,179  
8.75%, 05/15/17
    124,000       174,511  
                 
         
Total U.S. Treasury Bonds (cost $66,147,507)
    71,802,932  
         
                 
                 
U.S. Treasury Notes 26.9%
                 
U.S. Treasury Note
               
0.88%, 02/29/12 (b)
    10,305,000       10,360,132  
1.00%, 09/30/11
    9,290,000       9,353,869  
1.00%, 04/30/12 (b)
    17,600,000       17,732,000  
1.13%, 12/15/12
    15,000,000       15,123,045  
1.38%, 04/15/12 (b)
    3,750,000       3,806,396  
1.38%, 09/15/12 (b)
    27,540,000       27,959,544  
1.38%, 11/15/12
    15,000,000       15,214,455  
1.38%, 02/15/13
    7,415,000       7,512,322  
1.38%, 03/15/13 (b)
    20,000,000       20,259,400  
1.75%, 08/15/12 (b)
    13,169,000       13,474,560  
1.75%, 03/31/14 (b)
    7,655,000       7,760,853  
1.88%, 06/15/12 (b)
    8,190,000       8,392,195  
1.88%, 02/28/14 (b)
    4,000,000       4,076,248  
1.88%, 04/30/14 (b)
    10,525,000       10,714,945  
2.13%, 11/30/14 (b)
    5,230,000       5,341,137  
2.25%, 05/31/14 (b)
    14,000,000       14,445,158  
2.38%, 08/31/14 (b)
    1,302,000       1,346,044  
2.38%, 09/30/14 (b)
    5,605,000       5,789,354  
2.38%, 02/28/15
    5,225,000       5,385,042  
 
 
 
26 Semiannual Report 2010

 

 
 
 
                 
U.S. Treasury Notes (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
2.38%, 03/31/16
  $ 2,000,000     $ 2,029,532  
2.50%, 04/30/15 (b)
    17,505,000       18,127,250  
2.75%, 05/31/17 (b)
    5,665,000       5,784,497  
3.00%, 09/30/16 (b)
    2,460,000       2,565,126  
3.00%, 02/28/17
    2,475,000       2,569,359  
3.25%, 06/30/16 (b)
    6,135,000       6,506,456  
3.25%, 12/31/16
    12,650,000       13,333,884  
3.38%, 11/15/19
    26,860,000       27,818,983  
3.50%, 05/15/20
    5,900,000       6,174,704  
3.63%, 08/15/19
    26,080,000       27,577,566  
3.63%, 02/15/20 (b)
    3,430,000       3,624,008  
4.00%, 02/15/15
    3,250,000       3,586,934  
4.13%, 05/15/15
    1,748,000       1,942,056  
4.25%, 09/30/12
    7,000,000       7,568,750  
4.25%, 11/15/17 (b)
    8,710,000       9,784,457  
4.50%, 09/30/11 (b)
    28,100,000       29,533,550  
4.50%, 04/30/12 (b)
    4,000,000       4,289,532  
4.50%, 11/15/15
    6,372,000       7,234,208  
4.50%, 05/15/17
    5,775,000       6,569,963  
4.63%, 02/29/12
    15,297,000       16,337,915  
4.63%, 02/15/17
    6,365,000       7,271,516  
4.75%, 05/31/12 (b)
    6,465,000       6,978,664  
                 
         
Total U.S. Treasury Notes (cost $405,661,487)
    421,255,609  
         
                 
                 
Yankee Dollars 0.8%
                 
                 
Chemicals 0.0%†
Potash Corp of Saskatchewan, Inc.
               
7.75%, 05/31/11
    41,000       43,379  
4.88%, 03/01/13
    165,000       177,468  
5.88%, 12/01/36
    125,000       134,327  
                 
                 
              355,174  
                 
 
 
Commercial Banks 0.0%†
Westpac Banking Corp.,
               
4.63%, 06/01/18
    147,000       146,724  
                 
 
 
Diversified Financial Services 0.0%†
ConocoPhillips Canada Funding Co. I,
               
5.63%, 10/15/16
    365,000       423,982  
                 
 
 
Electric Utilities 0.1%
Hydro Quebec
               
8.40%, 01/15/22
    220,000       306,615  
8.88%, 03/01/26
    156,000       222,914  
                 
                 
              529,529  
                 
 
 
Energy Equipment & Services 0.1%
EnCana Corp.
               
4.75%, 10/15/13
    339,000       363,515  
6.50%, 08/15/34
    350,000       385,251  
Weatherford International Ltd.,
5.50%, 02/15/16
    74,000       78,896  
                 
                 
              827,662  
                 
 
 
Insurance 0.0%†
Montpelier Re Holdings Ltd., 6.13%, 08/15/13
    74,000       75,521  
                 
 
 
Metals & Mining 0.1%
BHP Billiton Finance USA Ltd.,
6.42%, 03/01/26
    80,000       93,082  
Rio Tinto Alcan, Inc.
               
6.45%, 03/15/11
    44,000       45,531  
4.50%, 05/15/13
    372,000       391,104  
Vale Inco Ltd.,
7.75%, 05/15/12
    177,000       192,630  
Xstrata Canada Corp., 6.20%, 06/15/35
    177,000       171,241  
                 
                 
              893,588  
                 
 
 
Oil, Gas & Consumable Fuels 0.4%
Burlington Resources Finance Co.
               
6.40%, 08/15/11
    124,000       130,008  
6.50%, 12/01/11
    206,000       220,932  
Canadian Natural Resources Ltd.,
               
4.90%, 12/01/14
    280,000       304,614  
Enbridge, Inc.,
               
5.60%, 04/01/17
    1,500,000       1,669,122  
Nexen, Inc.
               
5.05%, 11/20/13
    295,000       315,933  
5.20%, 03/10/15
    350,000       375,530  
5.88%, 03/10/35
    133,000       130,123  
6.40%, 05/15/37
    350,000       364,985  
Petro-Canada,
               
5.95%, 05/15/35
    271,000       283,100  
Statoil ASA,
               
6.80%, 01/15/28
    650,000       778,365  
Suncor Energy, Inc.,
               
6.10%, 06/01/18
    805,000       906,747  
Talisman Energy, Inc.
               
7.25%, 10/15/27
    133,000       154,744  
5.75%, 05/15/35
    350,000       351,633  
TransCanada Pipelines Ltd.,
               
5.85%, 03/15/36
    750,000       768,691  
                 
                 
              6,754,527  
                 
 
 
Road & Rail 0.1%
Canadian National Railway Co.
               
4.40%, 03/15/13
    1,035,000       1,109,385  
6.90%, 07/15/28
    242,000       296,722  
6.20%, 06/01/36
    236,000       277,863  
                 
                 
              1,683,970  
                 
 
 
 
2010 Semiannual Report 27

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Bond Index Fund (Continued)
 
                 
Yankee Dollars (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Supranational 0.0%†
Inter-American Development Bank,
6.80%, 10/15/25
  $ 413,000     $ 519,598  
                 
         
Total Yankee Dollars (cost $11,152,778)
    12,210,275  
         
                 
                 
Mutual Fund 3.4%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 3.4%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (f)
    52,808,056       52,808,056  
                 
         
Total Mutual Fund (cost $52,808,056)
    52,808,056  
         
                 
                 
Repurchase Agreement 0.3%
                 
      Principal
Amount 		      Market
Value 		 
 
 
                 
Morgan Stanley, dated 6/30/2010, due 7/1/2010, repurchase price $4,882,521, collateralized by U.S. Government Agency Mortgage Securities 4.00% – 8.50%, maturing 03/01/2015 – 06/01/2040; total market value of $4,980,342 (g)
  $ 4,882,517       4,882,517  
                 
         
Total Repurchase Agreement (cost $4,882,517)
    4,882,517  
         
         
Total Investments Before TBA Sale Commitments
(cost $1,567,895,905) — 105.1%
    1,642,978,007  
         
                 
                 
TBA Sale Commitments −4.0%
                 
      Principal
Amount 		      Market
Value 		 
 
 
U.S. Government Mortgage Backed Agencies
Fannie Mae Pool
5.00%, 07/25/40
    (14,000,000 )     (14,811,566 )
6.00%, 07/25/40
    (42,700,000 )     (46,309,474 )
5.50%, 08/25/40
    (1,500,000 )     (1,605,000 )
                 
         
Total TBA Sale Commitments (cost $(61,759,266))
    (62,726,040 )
         
         
Total Investments
(cost $1,506,136,639) (h) — 101.1%
    1,580,251,967  
         
Liabilities in excess of other assets — (1.1)%
    (16,781,470 )
         
         
NET ASSETS — 100.0%
  $ 1,563,470,497  
         
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $232,397,015, which was collateralized by repurchase agreements with a value of $4,882,517 and $231,854,037, of collateral in the form of U.S. government agency securities, interest rates ranging from 0.00% to 6.50% and maturity dates ranging from 06/02/11 to 01/01/48, a total value of $236,736,554.
 
(c) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $7,885,613 which represents 0.50% of net assets.
 
(d) Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at June 30, 2010.
 
(e) Variable Rate and Perpetual Bond Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date reflects the next call date.
 
(f) Represents 7-day effective yield as of June 30, 2010.
 
(g) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $4,882,517.
 
(h) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
(i) Investment in affiliate.
 
† Amount rounds to less than 0.1%.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
28 Semiannual Report 2010

 

 
 
 
 
AB Stock Company
 
AG Stock Corporation
 
ASA Stock Corporation
 
BV Private Limited Liability Company
 
FICO Fair Isaac Corporation
 
LLC Limited Liability Company
 
LP Limited Partnership
 
Ltd. Limited
 
NA National Association
 
PCL Public Company Limited
 
PLC Public Limited Company
 
SA Stock Company
 
SAB de CV Public Traded Company
 
SAU Single Shareholder Corporation
 
TBA To Be Announced
 
UK United Kingdom
 
ULC Unlimited Liability Company
 
 
 
 
2010 Semiannual Report 29

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Bond
 		 
      Index Fund  
       
Assets:
         
Investments, at value* (cost $1,563,013,388)
    $ 1,638,095,490  
Repurchase agreement, at value and cost
      4,882,517  
           
Total Investments
      1,642,978,007  
           
Interest and dividends receivable
      11,610,389  
Security lending income receivable
      6,927  
Receivable for investments sold
      148,747,272  
Receivable for capital shares issued
      2,125,304  
Reclaims receivable
      2,025  
Prepaid expenses and other assets
      14,826  
           
Total Assets
      1,805,484,750  
           
Liabilities:
         
Payable for investments purchased
      172,936,967  
Payable for capital shares redeemed
      843,856  
Cash overdraft (Note 2)
      14,735  
TBA Sale Commitments (proceeds 61,759,266)
      62,726,040  
Payable for interest income on TBA Sale Commitments
      123,295  
Payable upon return of securities loaned (Note 2)
      4,882,517  
Accrued expenses and other payables:
         
Investment advisory fees
      247,484  
Fund administration fees
      39,254  
Accounting and transfer agent fees
      84,423  
Custodian fees
      7,159  
Compliance program costs (Note 3)
      7,395  
Professional fees
      49,875  
Printing fees
      21,271  
Other
      29,982  
           
Total Liabilities
      242,014,253  
           
Net Assets
    $ 1,563,470,497  
           
Represented by:
         
Capital
    $ 1,487,961,716  
Accumulated net investment loss
      (2,051,358 )
Accumulated net realized gains from investment transactions
      3,444,811  
Net unrealized appreciation/(depreciation) from investments
      74,115,328  
           
Net Assets
    $ 1,563,470,497  
           
Net Assets:
         
Class Y Shares
    $ 1,563,470,497  
           
Total
    $ 1,563,470,497  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class Y Shares
      148,331,035  
           
Total
      148,331,035  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class Y Shares
    $ 10.54  
 
 
 
* Includes value of securities on loan of $232,397,015 (Note 2).
 
The accompanying notes are an integral part of these financial statements.
 
 
 
30 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Bond
 		 
      Index Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 27,622,672  
Dividend income
      56,570  
Income from securities lending (Note 2)
      51,843  
           
Total Income
      27,731,085  
           
EXPENSES:
         
Investment advisory fees
      1,640,912  
Fund administration fees
      257,758  
Professional fees
      76,939  
Printing fees
      9,187  
Trustee fees
      26,461  
Custodian fees
      30,171  
Accounting and transfer agent fees
      59,852  
Compliance program costs (Note 3)
      3,178  
Other
      35,245  
           
Total expenses before earnings credit and expenses waived
      2,139,703  
Earnings credit (Note 5)
      (93 )
Expenses voluntarily waived by adviser (Note 3)
      (92,097 )
           
Net Expenses
      2,047,513  
           
NET INVESTMENT INCOME
      25,683,572  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      5,189,461  
Net change in unrealized appreciation/(depreciation) from investments
      47,036,074  
           
Net realized/unrealized gains from investments
      52,225,535  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 77,909,107  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 31

 

Statements of Changes in Net Assets
 
                     
      NVIT Bond Index Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 25,683,572       $ 52,910,818  
Net realized gains from investment transactions
      5,189,461         3,507,828  
Net change in unrealized appreciation from investments
      47,036,074         12,329,865  
                     
Change in net assets resulting from operations
      77,909,107         68,748,511  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
                     
Class Y
      (29,232,103 )       (53,728,974 )
Net realized gains:
                   
Class Y
      –         (1,705,548 )
                     
Change in net assets from shareholder distributions
      (29,232,103 )       (55,434,522 )
                     
Change in net assets from capital transactions
      49,886,638         84,778,168  
                     
Change in net assets
      98,563,642         98,092,157  
                     
                     
Net Assets:
                   
Beginning of period
      1,464,906,855         1,366,814,698  
                     
End of period
    $ 1,563,470,497       $ 1,464,906,855  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (2,051,358 )     $ 1,497,173  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class Y Shares
                   
Proceeds from shares issued
    $ 75,862,818       $ 395,652,835  
Dividends reinvested
      29,232,103         55,434,522  
Cost of shares redeemed
      (55,208,283 )       (366,309,189 )
                     
Total Class Y
      49,886,638         84,778,168  
                     
Change in net assets from capital transactions
    $ 49,886,638       $ 84,778,168  
                     
                     
SHARE TRANSACTIONS:
                   
Class Y Shares
                   
Issued
      7,296,554         38,778,913  
Reinvested
      2,815,837         5,479,595  
Redeemed
      (5,320,912 )       (36,181,636 )
                     
Total Class Y Shares
      4,791,479         8,076,872  
                     
Total change in shares
      4,791,479         8,076,872  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
32 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Bond Index Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover    
Class Y Shares(d)
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .21       0 .18       0 .35       0 .53       (0 .20)       –          (0 .20)     $ 10 .54       5 .24%     $ 1,563,470,497         0 .27%       3 .44%       0 .29%       110 .09%    
Year Ended December 31, 2009 (e)
  $ 10 .09       0 .42       0 .15       0 .57       (0 .44)       (0 .01)       (0 .45)     $ 10 .21       5 .77%     $ 1,464,906,855         0 .31%       4 .17%       0 .31%       143 .71%(f)    
Year Ended December 31, 2008
  $ 10 .15       0 .47       –          0 .47       (0 .46)       (0 .07)       (0 .53)     $ 10 .09       4 .74%     $ 1,366,814,698         0 .32%       4 .60%       0 .32%       66 .57%    
Period Ended December 31, 2007 (g)
  $ 10 .00       0 .35       0 .14       0 .49       (0 .34)       –          (0 .34)     $ 10 .15       4 .99%     $ 1,561,586,156         0 .29%       5 .06%       0 .29%       166 .82%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(d)  Effective May 1, 2008, Class ID Shares were renamed Class Y Shares.
(e)  Per share calculations were performed using average shares method.
(f)  The amount shown includes the effect of mortgage dollar roll transactions while the prior year amounts did not include the effect of mortgage dollar roll transactions. In the prior years, had mortgage dollar roll transactions been included, the portfolio turnover would have increased.
(g)  For the period from April 20, 2007 (commencement of operations) through December 31, 2007.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 33

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Bond Index Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held by other Insurance Companies and other series of the Trust that operate as funds-of-funds, such as the NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) were valued at the mean price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. On May 21, 2010, debt and other fixed-income securities (other than short-term obligations) were valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
34 Semiannual Report 2010

 

 
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. when fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Asset-Backed Securities
  $ —     $ 7,613,111     $ —     $ 7,613,111      
 
 
Commercial Mortgage Backed Securities
    —       44,479,267       —       44,479,267      
 
 
Corporate Bonds
    —       303,661,997       —       303,661,997      
 
 
Municipal Bonds
    —       8,550,411       —       8,550,411      
 
 
Mutual Fund
    52,808,056       —       —       52,808,056      
 
 
Repurchase Agreement
    —       4,882,517       —       4,882,517      
 
 
Sovereign Bonds
    —       39,416,731       —       39,416,731      
 
 
U.S. Government Mortgage Backed Agencies
    —       594,106,219       —       594,106,219      
 
 
U.S. Government Sponsored & Agency Obligations
    —       82,190,882       —       82,190,882      
 
 
U.S. Treasury Bonds
    —       71,802,932       —       71,802,932      
 
 
U.S. Treasury Notes
    —       421,255,609       —       421,255,609      
 
 
 
 
 
2010 Semiannual Report 35

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Yankee Dollars
  $ —     $ 12,210,275     $ —     $ 12,210,275      
 
 
Total Assets
    52,808,056       1,590,169,951       —       1,642,978,007      
 
 
Liabilities:
                                   
U.S. Government Mortgage Backed Agencies
    —       (62,726,040 )     —       (62,726,040 )    
 
 
Total Liabilities
    —       (62,726,040 )     —       (62,726,040 )    
 
 
Total
  $ 52,808,056     $ 1,527,443,911     $ —     $ 1,580,251,967      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $14,735 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(d)        Mortgage Dollar Rolls
 
The Fund may enter into mortgage dollar rolls, in which the Fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date. Mortgage dollar rolls may be implemented in the “to be announced” (“TBA”) market and are referred to as TBAs on the Statement of Investments of the Fund. During the roll period, the Fund foregoes principal and interest paid on the mortgage-backed securities. Each mortgage dollar roll is treated as a purchase and sale transaction; therefore, any gain or loss is considered unrealized until the roll reaches completion. Mortgage dollar roll investments entail risks related to the potential inability of counterparties to complete the transaction, which may be heightened because of the delayed payment date. Income is generated as consideration for entering into mortgage dollar rolls and is included in interest income on the Statement of Operations.
 
 
 
36 Semiannual Report 2010

 

 
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral*    
 
    $ 232,397,015     $ 236,736,554      
 
 
  *   Includes $231,854,037 of collateral in the form of U.S. Government Agency Mortgage securities, interest rates ranging from 0.00% to 6.50%, and maturity dates ranging from 06/02/11 to 01/01/48.
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains
 
 
 
2010 Semiannual Report 37

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2007 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2007 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected BlackRock Investment Management LLC (“BlackRock”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of BlackRock.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1.5 billion     0.22%      
 
 
    $1.5 billion up to $3 billion     0.21%      
 
 
    $3 billion and more     0.20%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $293,614 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.32% for the Fund’s Class Y shares until at least April 30, 2011. Pursuant to the Expense Limitation Agreement, the expense ratio for Class Y shares of the Fund will not exceed 4.00% through March 1, 2011.
 
 
 
38 Semiannual Report 2010

 

 
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ —     $ —     $ —     $ —      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
In addition, NFA voluntarily agreed to waive from its Investment Advisory Fee an amount equal to $92,097 for which NFA shall not be entitled to later seek recoupment.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
2010 Semiannual Report 39

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $3,178.
 
4. Investment in Affiliate Issuers
 
A summary of the Fund’s transactions from Nationwide issuers during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Security   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
Nationwide Financial Services, Inc. 
  $ 81,865     $ —     $ —     $ 3,665     $ —     $ 78,993      
 
 
Nationwide Mutual Insurance Co. 
    233,050       —       —       8,592       —       250,818      
 
 
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any
 
 
 
40 Semiannual Report 2010

 

 
 
offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $1,553,705,718 and sales of $1,607,920,297 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $160,584,649 and sales of $99,534,692 of U.S. Government securities.
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 1,569,398,135     $ 75,548,551     $ (1,968,679 )   $ 73,579,872      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 41

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
42 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Bond Index Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class Y shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Universe, and slightly below the performance of its benchmark, the Barclays Capital U.S. Aggregate Bond Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund had achieved its objective of tracking the performance of the Barclays Capital U.S. Aggregate Bond Index.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class Y shares were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 43

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
44 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 45

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
46 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 47

 

 
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NVIT Core Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
10
   
Statement of Assets and Liabilities
       
11
   
Statement of Operations
       
12
   
Statements of Changes in Net Assets
       
14
   
Financial Highlights
       
15
   
Notes to Financial Statements
       
22
   
Supplemental Information
       
24
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CB (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Core Bond Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Core Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       1,053.70       3.16       0.62  
      Hypothetical b     1,000.00       1,021.72       3.11       0.62  
 
 
Class II Shares
    Actual       1,000.00       1,051.60       4.43       0.87  
      Hypothetical b     1,000.00       1,020.48       4.36       0.87  
 
 
Class Y Shares
    Actual       1,000.00       1,054.50       2.39       0.47  
      Hypothetical b     1,000.00       1,022.46       2.36       0.47  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Core Bond Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Corporate Bonds
    36 .8%
U.S. Government Sponsored & Agency Obligations
    25 .5%
U.S. Government Mortgage Backed Agencies
    20 .3%
Collateralized Mortgage Obligations
    7 .8%
Commercial Mortgage Backed Securities
    3 .6%
Mutual Fund
    2 .3%
U.S. Treasury Bonds
    1 .4%
U.S. Treasury Note
    0 .8%
Yankee Dollars
    0 .7%
Asset-Backed Securities
    0 .3%
Other assets in excess of liabilities
    0 .5%
         
      100 .0%
         
         
Top Industries †    
 
Diversified Financial Services
    11 .4%
Commercial Banks
    3 .3%
Metals & Mining
    2 .9%
Chemicals
    2 .2%
Thrifts & Mortgage Finance
    1 .9%
Oil, Gas & Consumable Fuels
    1 .6%
Consumer Finance
    1 .5%
Energy Equipment & Services
    1 .5%
Electric Utilities
    1 .4%
Insurance
    1 .4%
Other Industries
    70 .9%
         
      100 .0%
         
         
Top Holdings †    
 
Fannie Mae, 3.00%, 09/16/14
    5 .1%
Federal Home Loan Banks, 3.63%, 10/18/13
    3 .5%
Federal Home Loan Banks, 3.00%, 06/24/13
    3 .4%
Private Export Funding Corp., 4.30%, 12/15/21
    3 .4%
Government National Mortgage Association, 5.00%, 03/16/37
    2 .6%
Citigroup Funding, Inc., 1.38%, 05/05/11
    2 .4%
Freddie Mac, 5.35%, 08/01/15
    2 .4%
Fannie Mae REMICS, 6.00%, 02/25/36
    2 .4%
Invesco Liquid Assets Portfolio — Institutional Class
    2 .3%
Freddie Mac REMICS, 4.50%, 04/15/38
    2 .3%
Other Holdings
    70 .2%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Core Bond Fund
 
                 
Asset-Backed Securities 0.3%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Credit Card 0.2%
Golden Credit Card Trust, Series 2008-3, Class A,
1.35%, 07/15/17 (a)(b)
  $ 1,000,000     $ 1,006,207  
                 
 
 
Student Loan 0.1%
Access Group, Inc.,
Series 2002-1, Class A2,
0.72%, 09/25/25 (a)
    580,008       578,499  
                 
         
Total Asset-Backed Securities
(cost $1,566,873)
    1,584,706  
         
                 
                 
Collateralized Mortgage Obligations 7.8%
                 
Fannie Mae REMICS,
Series 2008-55, Class VB,
5.00%, 02/25/27
    10,000,000       10,851,171  
Government National Mortgage Association,
Series 2010-37, Class ML,
4.50%, 12/20/38
    12,000,000       12,999,071  
Government National Mortgage Association,
Series 2010-6, Class PC,
5.00%, 03/16/37
    15,000,000       16,360,456  
Government National Mortgage Association,
Series 2010-61, Class PC,
4.50%, 02/20/37
    8,000,000       8,610,872  
                 
         
Total Collateralized Mortgage Obligations (cost $46,738,067)
    48,821,570  
         
                 
                 
Commercial Mortgage Backed Securities 3.6%
                 
Banc of America Commercial Mortgage, Inc.
               
Series 2004-4, Class A3,
4.13%, 07/10/42
    99,820       99,766  
Series 2005-2, Class AM,
4.91%, 07/10/43 (a)
    700,000       669,136  
Series 2005-6, Class A4,
5.35%, 09/10/47 (a)
    2,500,000       2,676,792  
Bear Stearns Commercial Mortgage Securities
               
Series 2004-T16, Class A4,
4.32%, 02/13/46
    495,218       501,062  
Series 2005-T18, Class A4,
4.93%, 02/13/42 (a)
    1,700,000       1,797,515  
Series 2006-T22, Class AM,
5.63%, 04/12/38 (a)
    500,000       444,818  
Greenwich Capital Commercial Funding Corp.,
Series 2007-GG9, Class AM
5.48%, 03/10/39
    750,000       595,537  
GS Mortgage Securities Corp. II Series 2004-GG2, Class A4,
               
4.96%, 08/10/38
    1,000,000       1,034,516  
Series 2004-GG2, Class A6,
5.40%, 08/10/38 (a)
    1,500,000       1,582,234  
JPMorgan Chase Commercial Mortgage Securities Corp.
               
Series 2001-CIBC, Class A3,
6.26%, 03/15/33
    279,552       283,348  
Series 2006-LDP6, Class A4,
5.48%, 04/15/43 (a)
    1,359,000       1,443,000  
Series 2008-C2, Class A4,
6.07%, 02/12/51
    500,000       483,048  
LB-UBS Commercial Mortgage Trust
               
Series 2004-C4, Class A3,
5.29%, 06/15/29 (a)
    600,000       621,837  
Series 2004-C6, Class A4,
4.58%, 08/15/29
    350,000       354,334  
Series 2007-C6, Class A2,
5.85%, 07/15/40
    746,775       777,339  
Series 2008-C1, Class A2,
6.32%, 04/15/41 (a)
    500,000       530,592  
Morgan Stanley Capital I
               
Series 2005-T19, Class A3,
4.83%, 06/12/47
    750,000       774,076  
Series 2005-T19, Class AJ,
4.99%, 06/12/47 (a)
    1,000,000       844,829  
Series 2006-HQ9, Class A3,
5.71%, 07/12/44
    1,000,000       1,060,433  
Series 2006-T21, Class A4,
5.16%, 10/12/52 (a)
    2,500,000       2,616,255  
Series 2006-T23, Class AM,
5.98%, 08/12/41 (a)
    1,479,000       1,368,793  
Series 2007-IQ16, Class A4,
5.81%, 12/12/49
    1,000,000       1,035,511  
Morgan Stanley Dean Witter Capital I, Series 2001-TOP5, Class A4
6.39%, 10/15/35
    462,312       483,580  
                 
         
Total Commercial Mortgage Backed Securities (cost $21,322,833)
    22,078,351  
         
                 
                 
Corporate Bonds 36.8%
                 
                 
                 
                 
Aerospace & Defense 0.8%
L-3 Communications Corp.,
               
4.75%, 07/15/20
    5,000,000       5,038,440  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Airlines 0.4%
American Airlines 2003-1,
Pass Through Trust,
3.86%, 07/09/10
  $ 934,843     $ 932,506  
Continental Airlines 2000-2,
Pass Through Trust, Series 00A2,
7.49%, 10/02/10
    1,000,000       1,005,000  
Continental Airlines 2000-2,
Pass Through Trust, Series 002A,
7.71%, 04/02/21
    311,069       318,846  
                 
              2,256,352  
                 
 
 
Beverages 0.8%
Anheuser-Busch InBev Worldwide, Inc.
               
7.75%, 01/15/19 (b)
    1,500,000       1,820,643  
6.88%, 11/15/19 (b)
    1,500,000       1,729,872  
SABMiller PLC,
6.50%, 07/15/18 (b)
    1,250,000       1,454,306  
                 
              5,004,821  
                 
 
 
Chemicals 2.0%
Agrium, Inc.,
               
6.75%, 01/15/19
    4,000,000       4,639,640  
Airgas, Inc.,
               
4.50%, 09/15/14
    1,000,000       1,039,815  
Cytec Industries, Inc.,
6.00%, 10/01/15
    3,000,000       3,297,603  
Mosaic Global Holdings, Inc.
               
7.38%, 08/01/18
    2,000,000       2,347,978  
7.30%, 01/15/28
    1,205,000       1,386,256  
                 
              12,711,292  
                 
 
 
Commercial Banks 3.2%
Bank of America NA,
               
6.10%, 06/15/17
    3,800,000       3,932,529  
BNP Paribas,
               
4.80%, 06/24/15 (b)
    2,000,000       2,032,188  
HSBC Holdings PLC,
               
6.80%, 06/01/38
    2,750,000       2,963,623  
JPMorgan Chase Bank NA,
               
6.00%, 10/01/17
    5,350,000       5,825,947  
Standard Chartered Bank,
               
6.40%, 09/26/17 (b)
    1,155,000       1,244,437  
Svenska Handelsbanken AB,
               
4.88%, 06/10/14 (b)
    3,000,000       3,167,562  
Wells Fargo Capital XIII,
               
7.70%, 03/26/13 (c)
    1,000,000       1,010,000  
                 
              20,176,286  
                 
 
 
Consumer Finance 1.5%
American Honda Finance Corp.,
6.70%, 10/01/13 (b)
    1,000,000       1,138,188  
Sallie Mae, Inc.,
0.00%, 10/03/22
    14,956,000       8,487,276  
                 
              9,625,464  
                 
 
 
Diversified Financial Services 11.3%
BP Capital Markets PLC,
5.25%, 11/07/13
    1,000,000       919,256  
Citigroup Funding, Inc.,
1.38%, 05/05/11
    15,000,000       15,114,795  
Citigroup, Inc.,
8.13%, 07/15/39
    1,500,000       1,789,465  
FMR LLC,
6.50%, 12/14/40 (b)
    3,000,000       2,982,840  
General Electric Capital Corp.,
6.00%, 08/07/19
    2,000,000       2,165,142  
JPMorgan Chase & Co., Series 1,
7.90%, 04/30/18 (c)
    1,000,000       1,030,730  
National Rural Utilities Cooperative Finance Corp.,
10.38%, 11/01/18
    2,500,000       3,466,680  
Pooled Funding Trust II,
2.63%, 03/30/12 (b)
    5,000,000       5,114,015  
Private Export Funding Corp.
               
3.05%, 10/15/14
    10,000,000       10,455,480  
4.30%, 12/15/21
    20,000,000       20,869,220  
Tyco International Finance SA,
4.13%, 10/15/14
    2,000,000       2,123,000  
Xstrata Finance Canada Ltd.
               
5.80%, 11/15/16 (b)
    2,148,000       2,302,626  
6.90%, 11/15/37 (b)
    2,000,000       2,111,012  
                 
              70,444,261  
                 
 
 
Diversified Telecommunication Services 0.5%
Verizon Communications, Inc.,
5.50%, 02/15/18
    3,000,000       3,291,930  
                 
 
 
Electric Utilities 1.4%
Nisource Finance Corp.,
6.13%, 03/01/22
    3,000,000       3,202,110  
Oncor Electric Delivery Co. LLC,
6.80%, 09/01/18
    2,000,000       2,347,714  
PacifiCorp,
5.65%, 07/15/18
    1,500,000       1,714,568  
Public Service Co. of Colorado, Series 12,
4.88%, 03/01/13
    500,000       543,880  
Public Service Electric & Gas Co.,
6.33%, 11/01/13
    1,000,000       1,138,775  
                 
              8,947,047  
                 
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Energy Equipment & Services 1.5%
Smith International, Inc.
               
8.63%, 03/15/14
  $ 500,000     $ 593,812  
9.75%, 03/15/19
    3,000,000       4,083,330  
Weatherford International Ltd.,
6.00%, 03/15/18
    1,000,000       1,028,881  
Weatherford International, Inc., 6.35%, 06/15/17
    3,465,000       3,651,708  
                 
              9,357,731  
                 
 
 
Food & Staples Retailing 1.0%
CVS Pass Through Trust,
6.94%, 01/10/30
    5,697,310       6,283,221  
                 
 
 
Food Products 0.9%
Kraft Foods, Inc.
               
6.13%, 02/01/18
    1,442,000       1,636,523  
5.38%, 02/10/20
    4,000,000       4,286,204  
                 
              5,922,727  
                 
 
 
Health Care Providers & Services 0.4%
Laboratory Corp of America Holdings, 5.63%, 12/15/15
    2,000,000       2,213,454  
                 
 
 
Industrial Conglomerates 1.0%
General Electric Co.,
5.25%, 12/06/17
    1,000,000       1,087,406  
Tyco Electronics Group SA
               
5.95%, 01/15/14
    2,905,000       3,212,672  
6.55%, 10/01/17
    1,500,000       1,722,618  
                 
              6,022,696  
                 
 
 
Insurance 1.4%
MetLife, Inc.,
6.75%, 06/01/16
    4,000,000       4,525,396  
Principal Life Income Funding Trusts, 5.30%, 12/14/12
    750,000       807,826  
Prudential Financial, Inc.,
4.75%, 09/17/15
    3,000,000       3,097,287  
                 
              8,430,509  
                 
 
 
Media 1.4%
Comcast Cable Communications Holdings, Inc.,
8.38%, 03/15/13
    456,000       528,033  
DIRECTV Holdings LLC,
5.20%, 03/15/20
    4,000,000       4,168,852  
Time Warner Cable, Inc.,
6.75%, 07/01/18
    3,250,000       3,730,604  
                 
              8,427,489  
                 
 
 
Metals & Mining 2.4%
Anglo American Capital plc,
9.38%, 04/08/19 (b)
    2,800,000       3,601,340  
ArcelorMittal,
9.85%, 06/01/19
    3,000,000       3,748,923  
Rio Tinto Finance USA Ltd.,
5.88%, 07/15/13
    2,250,000       2,465,217  
Teck Resources Ltd.,
9.75%, 05/15/14
    4,500,000       5,318,172  
                 
              15,133,652  
                 
 
 
Oil, Gas & Consumable Fuels 1.6%
Energy Transfer Partners LP
               
6.00%, 07/01/13
    1,250,000       1,356,661  
6.70%, 07/01/18
    4,000,000       4,301,488  
Sunoco Logistics Partners
Operations LP, 8.75%, 02/15/14
    1,000,000       1,174,826  
Williams Partners LP,
5.25%, 03/15/20 (b)
    3,000,000       3,067,701  
                 
              9,900,676  
                 
 
 
Pharmaceuticals 0.3%
Novartis Securities Investment Ltd., 5.13%, 02/10/19
    1,500,000       1,679,169  
                 
 
 
Road & Rail 0.2%
CSX Corp., 6.25%, 03/15/18
    1,000,000       1,148,190  
                 
 
 
Thrifts & Mortgage Finance 1.9%
U.S. Central Federal Credit Union, 1.90%, 10/19/12
    10,000,000       10,206,290  
WMC Finance USA, Ltd.,
5.13%, 05/15/13
    1,250,000       1,365,335  
                 
              11,571,625  
                 
 
 
Tobacco 0.9%
Reynolds American, Inc.,
7.63%, 06/01/16
    4,700,000       5,330,406  
                 
         
Total Corporate Bonds
(cost $218,844,678)
    228,917,438  
         
                 
                 
U.S. Government Mortgage Backed Agencies 20.3%
                 
                 
                 
Fannie Mae Pool
               
Pool# 873863
               
5.69%, 05/01/16
    4,781,458       5,313,305  
Pool# AA6943
               
4.50%, 05/01/39
    9,354,837       9,713,244  
Fannie Mae REMICS
               
Pool# FNR 2005-53 MH
               
5.50%, 03/25/34
    10,000,000       10,836,642  
Pool# FNR 2007-74 QC
               
6.00%, 02/25/36
    13,652,000       14,864,018  
Pool# FNR 2007-6 PA
               
5.50%, 02/25/37
    8,584,997       9,275,231  
Pool# FNR 2007-66 AH
               
6.00%, 07/25/37
    10,000,000       10,141,142  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Bond Fund (Continued)
 
                 
U.S. Government Mortgage Backed Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Freddie Mac Gold Pool
Pool# A85748,
5.00%, 04/01/39
  $ 8,428,618     $ 8,928,101  
Freddie Mac REMICS
               
Pool# FHR 3451 VB
               
5.00%, 05/15/28
    10,000,000       10,853,778  
Pool# FHR 3036 TM
               
4.50%, 12/15/34
    10,000,000       10,733,927  
Pool# FHR 3334 MD
               
5.00%, 06/15/35
    10,000,000       10,736,680  
Pool# FHR 3189 PC
               
6.00%, 08/15/35
    10,000,000       11,036,678  
Pool# FHR 3540 LN
               
4.50%, 04/15/38
    13,665,637       14,065,914  
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $123,220,170)
    126,498,660  
         
                 
                 
U.S. Government Sponsored & Agency Obligations 25.5%
                 
Fannie Mae
               
3.25%, 04/09/13
    2,500,000       2,653,433  
3.00%, 09/16/14
    30,000,000       31,482,030  
Farmer Mac Guaranteed Notes Trust 2007-1
5.13%, 04/19/17 (b)
    8,225,000       8,989,686  
Federal Farm Credit Bank
2.80%, 11/05/14
    10,000,000       10,423,970  
Federal Home Loan Banks
               
3.00%, 06/24/13
    20,000,000       21,043,620  
3.63%, 10/18/13
    20,000,000       21,422,800  
3.13%, 12/13/13
    10,000,000       10,568,770  
2.75%, 03/13/15
    5,000,000       5,153,780  
5.38%, 08/15/18
    3,000,000       3,495,084  
5.00%, 03/12/21
    5,000,000       5,624,735  
Freddie Mac
               
5.75%, 01/15/12
    2,500,000       2,693,535  
1.00%, 08/28/12
    10,000,000       10,039,480  
5.35%, 08/01/15
    13,000,000       14,928,238  
Freddie Mac Strips
0.00%, 03/15/12
    10,439,000       10,206,503  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $153,997,823)
    158,725,664  
         
                 
                 
U.S. Treasury Bonds 1.4%
                 
U.S. Treasury Bond,
8.13%, 08/15/21
    3,500,000       5,119,842  
U.S. Treasury Inflation Indexed Bond,
2.13%, 01/15/19
    3,000,000       3,324,198  
                 
         
Total U.S. Treasury Bonds (cost $8,126,009)
    8,444,040  
         
                 
                 
U.S. Treasury Note 0.8%
                 
U.S. Treasury Note,
0.88%, 05/31/11
    5,100,000       5,124,307  
                 
         
Total U.S. Treasury Note (cost $5,077,784)
    5,124,307  
         
                 
                 
Yankee Dollars 0.7%
                 
                 
Chemicals 0.2%
Potash Corp of Saskatchewan, Inc., 4.88%, 03/01/13
    1,135,000       1,220,763  
 
 
Metals & Mining 0.5%
Xstrata Canada Corp.
               
7.25%, 07/15/12
    1,170,000       1,267,193  
6.00%, 10/15/15
    2,000,000       2,164,180  
                 
              3,431,373  
                 
         
Total Yankee Dollars (cost $4,068,766)
    4,652,136  
         
                 
                 
Mutual Fund 2.3%
                 
      Shares       Market
Value 		 
 
 
                 
                 
Money Market Fund 2.3%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (d)
    14,135,264       14,135,264  
                 
         
Total Mutual Fund (cost $14,135,264)
    14,135,264  
         
         
Total Investments
(cost $597,098,267) (e) — 99.5%
    618,982,136  
         
         
Other assets in excess of liabilities — 0.5%
    3,047,557  
         
         
NET ASSETS — 100.0%
  $ 622,029,693  
         
 
 
 
8 Semiannual Report 2010

 

 
 
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $41,762,623 which represents 6.71% of net assets.
 
(c) Variable Rate and Perpetual Bond Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date reflects the next call date.
 
(d) Represents 7-day effective yield as of June 30, 2010.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
AB Stock Company
 
LLC Limited Liability Company
 
LP Limited Partnership
 
Ltd. Limited
 
NA National Association
 
PLC Public Limited Company
 
REMICS Real Estate Mortgage Investment Conduits
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Core Bond Fund  
       
Assets:
         
Investments, at value (cost $597,098,267)
    $ 618,982,136  
Interest and dividends receivable
      4,607,811  
Receivable for capital shares issued
      1,809,807  
Reclaims receivable
      9,530  
Prepaid expenses and other assets
      5,926  
           
Total Assets
      625,415,210  
           
Liabilities:
         
Payable for investments purchased
      2,982,840  
Payable for capital shares redeemed
      35,917  
Accrued expenses and other payables:
         
Investment advisory fees
      198,809  
Fund administration fees
      17,970  
Distribution fees
      44,983  
Administrative servicing fees
      25,176  
Accounting and transfer agent fees
      9,402  
Custodian fees
      430  
Compliance program costs (Note 3)
      3,012  
Professional fees
      18,098  
Printing fees
      32,608  
Other
      16,272  
           
Total Liabilities
      3,385,517  
           
Net Assets
    $ 622,029,693  
           
Represented by:
         
Capital
    $ 595,682,497  
Accumulated undistributed net investment income
      3,522,278  
Accumulated net realized gains from investment transactions
      941,049  
Net unrealized appreciation/(depreciation) from investments
      21,883,869  
           
Net Assets
    $ 622,029,693  
           
Net Assets:
         
Class I Shares
    $ 15,011,952  
Class II Shares
      221,147,774  
Class Y Shares
      385,869,967  
           
Total
    $ 622,029,693  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      1,410,910  
Class II Shares
      20,844,590  
Class Y Shares
      36,280,767  
           
Total
      58,536,267  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 10.64  
Class II Shares
    $ 10.61  
Class Y Shares
    $ 10.64  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
    Core Bond Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 10,538,561  
Dividend income
      11,098  
           
Total Income
      10,549,659  
           
EXPENSES:
         
Investment advisory fees
      1,100,919  
Fund administration fees
      100,690  
Distribution fees Class II Shares
      267,094  
Administrative servicing fees Class I Shares
      10,623  
Administrative servicing fees Class II Shares
      160,257  
Professional fees
      29,459  
Printing fees
      30,317  
Trustee fees
      9,404  
Custodian fees
      8,044  
Accounting and transfer agent fees
      9,274  
Compliance program costs (Note 3)
      957  
Other
      11,312  
           
Total expenses before earnings credits
      1,738,350  
Earnings credit (Note 4)
      (2 )
           
Net Expenses
      1,738,348  
           
NET INVESTMENT INCOME
      8,811,311  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      959,088  
Net change in unrealized appreciation/(depreciation) from investments
      19,226,528  
           
Net realized/unrealized gains from investments
      20,185,616  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 28,996,927  
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Statements of Changes in Net Assets
 
                     
      NVIT Core Bond Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 8,811,311       $ 9,124,393  
Net realized gains from investment transactions
      959,088         2,802,985  
Net change in unrealized appreciation from investments
      19,226,528         4,897,525  
                     
Change in net assets resulting from operations
      28,996,927         16,824,903  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (132,362 )       (268,424 )
Class II
      (1,709,584 )       (3,290,126 )
Class Y
      (3,447,087 )       (5,640,953 )
Net realized gains:
                   
Class I
      (29,237 )       (62,340 )
Class II
      (440,587 )       (974,692 )
Class Y
      (750,258 )       (1,162,814 )
                     
Change in net assets from shareholder distributions
      (6,509,115 )       (11,399,349 )
                     
Change in net assets from capital transactions
      107,857,617         402,248,472  
                     
Change in net assets
      130,345,429         407,674,026  
                     
                     
Net Assets:
                   
Beginning of period
      491,684,264         84,010,238  
                     
End of period
    $ 622,029,693       $ 491,684,264  
                     
Accumulated undistributed net investment income at end of period
    $ 3,522,278       $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 4,291,269       $ 18,124,653  
Dividends reinvested
      161,599         330,764  
Cost of shares redeemed
      (3,471,268 )       (7,359,055 )
                     
Total Class I
      981,600         11,096,362  
                     
Class II Shares
                   
Proceeds from shares issued
      12,267,636         204,715,568  
Dividends reinvested
      2,150,171         4,264,818  
Cost of shares redeemed
      (6,860,150 )       (7,068,739 )
                     
Total Class II
      7,557,657         201,911,647  
                     
Class Y Shares
                   
Proceeds from shares issued
      98,765,745         198,916,868  
Dividends reinvested
      4,197,345         6,803,767  
Cost of shares redeemed
      (3,644,730 )       (16,480,172 )
                     
Total Class Y
      99,318,360         189,240,463  
                     
Change in net assets from capital transactions
    $ 107,857,617       $ 402,248,472  
                     
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
 
12 Semiannual Report 2010

 

 
 
                     
      NVIT Core Bond Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      410,437         1,785,702  
Reinvested
      15,399         32,307  
Redeemed
      (332,253 )       (723,271 )
                     
Total Class I Shares
      93,583         1,094,738  
                     
Class II Shares
                   
Issued
      1,189,135         20,082,951  
Reinvested
      205,418         415,714  
Redeemed
      (658,573 )       (689,356 )
                     
Total Class II Shares
      735,980         19,809,309  
                     
Class Y Shares
                   
Issued
      9,449,366         19,612,203  
Reinvested
      399,977         665,930  
Redeemed
      (349,168 )       (1,648,453 )
                     
Total Class Y Shares
      9,500,175         18,629,680  
                     
Total change in shares
      10,329,738         39,533,727  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Core Bond Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios/Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .21       0 .17       0 .38       0 .55       (0 .10)       (0 .02)       (0 .12)     $ 10 .64       5 .37%     $ 15,011,952         0 .62%       3 .20%       0 .62%       22 .44%    
Year Ended December 31, 2009 (e)
  $ 9 .69       0 .35       0 .50       0 .85       (0 .28)       (0 .05)       (0 .33)     $ 10 .21       8 .78%     $ 13,455,339         0 .65%       3 .47%       0 .65%       64 .87%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .34       (0 .41)       (0 .07)       (0 .24)       –          (0 .24)     $ 9 .69       (0 .65%)     $ 2,157,895         0 .69%       4 .60%       0 .77%       88 .25%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .19       0 .15       0 .37       0 .52       (0 .08)       (0 .02)       (0 .10)     $ 10 .61       5 .16%     $ 221,147,774         0 .87%       2 .95%       0 .87%       22 .44%    
Year Ended December 31, 2009 (e)
  $ 9 .67       0 .31       0 .52       0 .83       (0 .26)       (0 .05)       (0 .31)     $ 10 .19       8 .59%     $ 204,807,516         0 .88%       3 .03%       0 .88%       64 .87%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .32       (0 .41)       (0 .09)       (0 .24)       –          (0 .24)     $ 9 .67       (0 .87%)     $ 2,893,560         0 .94%       4 .41%       1 .01%       88 .25%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited)(e)
  $ 10 .21       0 .17       0 .38       0 .55       (0 .10)       (0 .02)       (0 .12)     $ 10 .64       5 .45%     $ 385,869,967         0 .47%       3 .36%       0 .47%       22 .44%    
Year Ended December 31, 2009 (e)
  $ 9 .69       0 .38       0 .48       0 .86       (0 .29)       (0 .05)       (0 .34)     $ 10 .21       8 .92%     $ 273,421,409         0 .50%       3 .69%       0 .50%       64 .87%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .33       (0 .39)       (0 .06)       (0 .25)       –          (0 .25)     $ 9 .69       (0 .56%)     $ 78,958,783         0 .55%       4 .44%       0 .62%       88 .25%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Core Bond Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) were valued at the mean price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. On May 21, 2010, debt and other fixed-income securities (other than short-term obligations) were valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Asset-Backed Securities
  $ —     $ 1,584,706     $ —     $ 1,584,706      
 
 
Collateralized Mortgage Obligations
    —       48,821,570       —       48,821,570      
 
 
Commercial Mortgage Backed Securities
    —       22,078,351       —       22,078,351      
 
 
Corporate Bonds
    —       228,917,438       —       228,917,438      
 
 
Mutual Fund
    14,135,264       —       —       14,135,264      
 
 
U.S. Government Mortgage Backed Agencies
    —       126,498,660       —       126,498,660      
 
 
U.S. Government Sponsored & Agency Obligations
    —       158,725,664       —       158,725,664      
 
 
U.S. Treasury Bonds
    —       8,444,040       —       8,444,040      
 
 
U.S. Treasury Note
    —       5,124,307       —       5,124,307      
 
 
Yankee Dollars
    —       4,652,136       —       4,652,136      
 
 
Total Assets
  $ 14,135,264     $ 604,846,872     $ —     $ 618,982,136      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
 
 
16 Semiannual Report 2010

 

 
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(e)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Nationwide Asset Management LLC (“NWAM”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of NWAM.
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.40%      
 
 
    $1 billion and more     0.38%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.40%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $375,033 for the six months ended June 30, 2010.
 
Until April 30, 2010, the Trust and NFA had entered into a written Expense Limitation Agreement, which limited the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.55% for all share classes.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
 
 
18 Semiannual Report 2010

 

 
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/ year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 32,882     $ —     $ —     $ 32,882      
 
 
(a) For the period March 25, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced and NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $170,880 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $957.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $218,499,072 and sales of $89,780,858 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $15,925,684 and sales of $29,811,751 of U.S. Government securities.
 
 
 
20 Semiannual Report 2010

 

 
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
7. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 597,098,267     $ 22,727,096     $ (843,227 )   $ 21,883,869      
 
 
 
8. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 21

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
22 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Core Bond Fund
 
The Trustees then led the Trustees’ review of the nature, extent, and quality of the services provided to the Fund by NFA and Nationwide Asset Management, LLC (“NWAM”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the third quintile and below the median of its Peer Group. For the one-year period, the Trustees noted that the Fund underperformed its benchmark, the Barclays Capital U.S. Aggregate Bond Index. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of NWAM, the Trustees took into consideration NWAM’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the first quintile of its Peer Group, and that the Fund’s actual advisory fee was in the third quintile and slightly above the median of its Peer Group. The Trustees then noted that the Fund’s total expenses were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 23

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 27

 

 
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NVIT Government Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-GB (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Government Bond Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Government Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       1,048.10       3.50       0.69  
      Hypothetical b     1,000.00       1,021.37       3.46       0.69  
 
 
Class II Shares
    Actual       1,000.00       1,046.80       4.77       0.94  
      Hypothetical b     1,000.00       1,020.13       4.71       0.94  
 
 
Class III Shares
    Actual       1,000.00       1,048.10       3.50       0.69  
      Hypothetical b     1,000.00       1,021.37       3.46       0.69  
 
 
Class IV Shares
    Actual       1,000.00       1,048.90       3.51       0.69  
      Hypothetical b     1,000.00       1,021.37       3.46       0.69  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Government Bond Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
U.S. Government Mortgage Backed Agencies
    36 .0%
U.S. Treasury Bonds
    17 .7%
Collateralized Mortgage Obligations
    15 .8%
U.S. Treasury Notes
    13 .6%
Mutual Fund
    6 .9%
Corporate Bonds
    6 .9%
U.S. Government Sponsored & Agency Obligations
    4 .5%
Liabilities in excess of other assets
    (1 .4)%
         
      100 .0%
         
Top Holdings †    
 
U.S. Treasury Bond, 8.13%, 08/15/21
    8 .7%
U.S. Treasury Note, 4.00%, 08/15/18
    7 .0%
Invesco Liquid Assets Portfolio — Institutional Class
    6 .8%
U.S. Treasury Note, 3.75%, 11/15/18
    6 .4%
Fannie Mae Pool, 6.26%, 09/01/13
    6 .0%
Freddie Mac Gold Pool, 4.50%, 05/01/24
    4 .4%
Fannie Mae Pool, 4.66%, 05/01/13
    4 .3%
Pooled Funding Trust II, 2.63%, 03/30/12
    4 .0%
U.S. Treasury Inflation Indexed Bonds,
2.50%, 01/15/29
    3 .6%
Fannie Mae Pool, 4.50%, 07/01/24
    3 .5%
Other Holdings
    45 .3%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Government Bond Fund
 
                 
                 
Collateralized Mortgage Obligations 15.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Fannie Mae Grantor Trust, Series 2001-T11, Class B,
5.50%, 09/25/11
  $ 11,215,000     $ 11,778,595  
Fannie Mae Grantor Trust, Series 2002-T11, Class B,
5.34%, 04/25/12
    28,300,000       30,366,845  
Fannie Mae REMICS, Series 1993-149, Class M,
7.00%, 08/25/23
    2,640,189       2,963,420  
Fannie Mae REMICS,
Series 2003-64, Class HQ,
5.00%, 07/25/23
    6,000,000       6,544,462  
Fannie Mae REMICS,
Series 2003-66, Class AP,
3.50%, 11/25/32
    1,248,693       1,286,024  
Fannie Mae REMICS, Series 2005-109, Class AG,
5.50%, 04/25/24
    12,486,462       13,507,017  
FHLMC Multifamily Structured Pass Through Certificates,
Series K001, Class A3,
5.47%, 01/25/12 (a)
    7,573,693       7,870,257  
Freddie Mac REMICS,
Series 2468, Class TE,
5.50%, 07/15/17
    4,015,964       4,352,459  
Freddie Mac REMICS,
Series 2509, Class LK,
5.50%, 10/15/17
    10,626,497       11,538,113  
Freddie Mac REMICS,
Series 2517, Class BH,
5.50%, 10/15/17
    6,762,374       7,337,937  
Freddie Mac REMICS,
Series 2751, Class ND,
5.00%, 04/15/29
    23,762,017       24,777,515  
Freddie Mac REMICS,
Series 2922, Class GA,
5.50%, 05/15/34
    7,740,282       8,441,658  
Freddie Mac REMICS,
Series 2985, Class JR,
4.50%, 06/15/25
    22,000,000       23,402,731  
Freddie Mac REMICS,
Series 3356, Class PD,
6.00%, 03/15/36
    26,365,666       29,096,590  
                 
         
Total Collateralized Mortgage Obligations (cost $171,410,004)
    183,263,623  
         
                 
                 
Corporate Bonds 6.9%
                 
                 
Commercial Banks 2.9%
Ally Financial Inc,
2.20%, 12/19/12
    32,350,000       33,239,690  
                 
Diversified Financial Services 4.0%
Pooled Funding Trust II,
2.63%, 03/30/12 (b)
    45,500,000       46,537,536  
                 
         
Total Corporate Bonds (cost $78,752,153)
    79,777,226  
         
                 
                 
U.S. Government Mortgage Backed Agencies 36.0%
                 
Fannie Mae Pool
               
Pool# 384773
               
6.08%, 02/01/12
    32,136,187       33,942,148  
Pool# 555505
               
4.66%, 05/01/13
    48,689,404       51,246,963  
Pool# 360500
               
6.26%, 09/01/13
    64,000,000       70,742,187  
Pool# 383661
               
6.62%, 06/01/16
    10,085,266       11,448,122  
Pool# 462260
               
5.60%, 09/01/18
    10,893,536       11,880,292  
Pool# 874142
               
5.56%, 12/01/21
    11,400,000       12,401,369  
Pool# 995865
               
4.50%, 07/01/24
    38,937,267       41,192,512  
Pool# 745684
               
3.01%, 04/01/34 (a)
    17,809,040       18,465,292  
Pool# 790760
               
4.99%, 09/01/34 (a)
    5,614,798       5,873,164  
Pool# 799144
               
4.71%, 04/01/35 (a)
    4,878,060       5,126,877  
Pool# 822705
               
4.77%, 04/01/35 (a)
    7,272,690       7,652,116  
Pool# 815217
               
4.78%, 05/01/35 (a)
    6,565,215       6,919,219  
Pool# 783609
               
4.88%, 05/01/35 (a)
    8,258,219       8,677,748  
Pool# 821377
               
5.29%, 05/01/35 (a)
    4,198,136       4,465,587  
Pool# 826181
               
4.79%, 07/01/35 (a)
    19,178,390       20,223,961  
Pool# 873932
               
6.31%, 08/01/36
    8,118,361       9,165,734  
Pool# 745866
               
3.55%, 09/01/36 (a)
    17,459,956       18,058,714  
Freddie Mac Gold Pool
Pool# G13518,4.50%, 05/01/24
    48,974,270       51,780,246  
Freddie Mac Non Gold Pool
               
Pool# 847558
               
3.10%, 06/01/35 (a)
    10,470,441       10,970,675  
Pool# 1G2082
               
5.68%, 07/01/37 (a)
    17,706,890       19,015,666  
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $401,970,250)
    419,248,592  
         
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Government Bond Fund (Continued)
 
                 
                 
                 
U.S. Government Sponsored & Agency Obligations 4.5%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Farmer Mac Guaranteed Notes Trust 2007-1
5.13%, 04/19/17 (b)
  $ 25,000,000     $ 27,324,275  
Federal Farm Credit Bank
5.00%, 03/03/14
    12,146,000       13,654,837  
Lightship Tankers III LLC
6.50%, 06/14/24
    8,809,000       10,266,713  
U.S. Department of Housing and Urban Development
7.08%, 08/01/16
    1,725,000       1,729,190  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $49,478,484)
    52,975,015  
         
                 
                 
U.S. Treasury Bonds 17.7%
                 
U.S. Treasury Bond
               
8.13%, 05/15/21
    20,000,000       29,162,500  
8.13%, 08/15/21
    70,000,000       102,396,840  
U.S. Treasury Inflation Indexed Bonds
               
2.50%, 01/15/29
    36,500,000       41,889,258  
3.38%, 04/15/32
    20,000,000       31,981,695  
                 
         
Total U.S. Treasury Bonds (cost $192,052,579)
    205,430,293  
         
                 
                 
U.S. Treasury Notes 13.6%
                 
U.S. Treasury Note
               
3.75%, 11/15/18
    70,000,000       75,425,000  
4.00%, 08/15/18
    75,000,000       82,494,150  
                 
         
Total U.S. Treasury Notes (cost $151,618,745)
    157,919,150  
         
                 
                 
Mutual Fund 6.9%
                 
                 
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 6.9%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    80,801,934     $ 80,801,934  
                 
         
Total Mutual Fund (cost $80,801,934)
    80,801,934  
         
         
Total Investments (cost $1,126,084,149) (d) — 101.4%
    1,179,415,833  
         
Liabilities in excess of other assets — (1.4)%
    (15,824,428 )
         
         
NET ASSETS — 100.0%
  $ 1,163,591,405  
         
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $73,861,811 which represents 6.35% of net assets.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
FHLMC Federal Home Loan Mortgage Corporation
 
LLC Limited Liability Company
 
REMICS Real Estate Mortgage Investment Conduits
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Government
 		 
    Bond Fund  
       
Assets:
         
Investments, at value (cost $1,126,084,149)
    $ 1,179,415,833  
Cash
      2  
Interest and dividends receivable
      7,821,269  
Receivable for investments sold
      18,521,236  
Receivable for capital shares issued
      756,702  
Prepaid expenses and other assets
      10,498  
           
Total Assets
      1,206,525,540  
           
Liabilities:
         
Payable for investments purchased
      41,048,397  
Payable for capital shares redeemed
      1,112,955  
Accrued expenses and other payables:
         
Investment advisory fees
      451,833  
Fund administration fees
      31,518  
Distribution fees
      1,895  
Administrative servicing fees
      162,177  
Accounting and transfer agent fees
      8,534  
Custodian fees
      10,473  
Compliance program costs (Note 3)
      5,150  
Professional fees
      49,292  
Printing fees
      39,504  
Other
      12,407  
           
Total Liabilities
      42,934,135  
           
Net Assets
    $ 1,163,591,405  
           
Represented by:
         
Capital
    $ 1,089,157,872  
Accumulated net investment loss
      (93,942 )
Accumulated net realized gains from investment transactions
      21,195,791  
Net unrealized appreciation/(depreciation) from investments
      53,331,684  
           
Net Assets
    $ 1,163,591,405  
           
Net Assets:
         
Class I Shares
    $ 1,098,750,799  
Class II Shares
      9,148,703  
Class III Shares
      25,280,608  
Class IV Shares
      30,411,295  
           
Total
    $ 1,163,591,405  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      90,727,501  
Class II Shares
      757,766  
Class III Shares
      2,087,054  
Class IV Shares
      2,511,637  
           
Total
      96,083,958  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 12.11  
Class II Shares
    $ 12.07  
Class III Shares
    $ 12.11  
Class IV Shares
    $ 12.11  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Government
 		 
      Bond Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 22,400,181  
Dividend income
      46,894  
           
Total Income
      22,447,075  
           
EXPENSES:
         
Investment advisory fees
      2,754,309  
Fund administration fees
      203,331  
Distribution fees Class II Shares
      12,317  
Administrative servicing fees Class I Shares
      819,827  
Administrative servicing fees Class II Shares
      7,390  
Administrative servicing fees Class III Shares
      16,467  
Administrative servicing fees Class IV Shares
      22,765  
Professional fees
      63,720  
Printing fees
      15,020  
Trustee fees
      20,858  
Custodian fees
      23,548  
Accounting and transfer agent fees
      10,779  
Compliance program costs (Note 3)
      2,586  
Other
      32,158  
           
Total expenses before earnings credits
      4,005,075  
Earnings credit (Note 5)
      (1 )
           
Net Expenses
      4,005,074  
           
NET INVESTMENT INCOME
      18,442,001  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      21,288,731  
Net change in unrealized appreciation/(depreciation) from investments
      14,708,839  
           
Net realized/unrealized gains from investments
      35,997,570  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 54,439,571  
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
 
                     
      NVIT Government Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
Operations:
                   
Net investment income
    $ 18,442,001       $ 43,379,572  
Net realized gains from investment transactions
      21,288,731         17,637,976  
Net change in unrealized appreciation/(depreciation) from investments
      14,708,839         (27,866,747 )
                     
Change in net assets resulting from operations
      54,439,571         33,150,801  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (17,535,337 )       (40,827,686 )
Class II
      (139,437 )       (363,636 )
Class III
      (376,242 )       (712,728 )
Class IV
      (484,927 )       (1,117,447 )
Net realized gains:
                   
Class I
      –         (16,556,630 )
Class II
      –         (155,668 )
Class III
      –         (340,913 )
Class IV
      –         (456,081 )
                     
Change in net assets from shareholder distributions
      (18,535,943 )       (60,530,789 )
                     
Change in net assets from capital transactions
      (62,188,267 )       (214,042,511 )
                     
Change in net assets
      (26,284,639 )       (241,422,499 )
                     
                     
Net Assets:
                   
Beginning of period
      1,189,876,044         1,431,298,543  
                     
End of period
    $ 1,163,591,405       $ 1,189,876,044  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (93,942 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 79,858,353       $ 112,467,158  
Dividends reinvested
      17,535,337         57,384,316  
Cost of shares redeemed
      (157,984,729 )       (383,175,573 )
                     
Total Class I
      (60,591,039 )       (213,324,099 )
                     
Class II Shares
                   
Proceeds from shares issued
      248,491         529,848  
Dividends reinvested
      139,437         519,304  
Cost of shares redeemed
      (2,084,383 )       (3,323,470 )
                     
Total Class II
      (1,696,455 )       (2,274,318 )
                     
Class III Shares
                   
Proceeds from shares issued
      10,509,121         13,912,473  
Dividends reinvested
      376,242         1,053,641  
Cost of shares redeemed
      (8,879,742 )       (11,837,945 )
                     
Total Class III
      2,005,621         3,128,169  
                     
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Government Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
CAPITAL TRANSACTIONS: (continued)
                   
Class IV Shares
                   
Proceeds from shares issued
    $ 1,388,595       $ 4,799,890  
Dividends reinvested
      484,927         1,573,528  
Cost of shares redeemed
      (3,779,916 )       (7,945,681 )
                     
Total Class IV
      (1,906,394 )       (1,572,263 )
                     
Change in net assets from capital transactions
    $ (62,188,267 )     $ (214,042,511 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      6,691,089         9,387,532  
Reinvested
      1,470,106         4,842,471  
Redeemed
      (13,318,677 )       (31,994,359 )
                     
Total Class I Shares
      (5,157,482 )       (17,764,356 )
                     
Class II Shares
                   
Issued
      20,912         44,200  
Reinvested
      11,727         43,958  
Redeemed
      (175,102 )       (278,782 )
                     
Total Class II Shares
      (142,463 )       (190,624 )
                     
Class III Shares
                   
Issued
      877,448         1,157,138  
Reinvested
      31,524         88,918  
Redeemed
      (748,767 )       (993,551 )
                     
Total Class III Shares
      160,205         252,505  
                     
Class IV Shares
                   
Issued
      115,764         402,108  
Reinvested
      40,650         132,784  
Redeemed
      (317,021 )       (663,698 )
                     
Total Class IV Shares
      (160,607 )       (128,806 )
                     
Total change in shares
      (5,300,347 )       (17,831,281 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Government Bond Fund
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .74       0 .19       0 .37       0 .56       (0 .19)       –          (0 .19)       –        $ 12 .11       4 .81%     $ 1,098,750,799         0 .69%       3 .20%       0 .69%       47 .45%    
Year Ended December 31, 2009 (e)
  $ 12 .01       0 .41       (0 .09)       0 .32       (0 .41)       (0 .18)       (0 .59)       –        $ 11 .74       2 .69%     $ 1,125,363,950         0 .71%       3 .39%       0 .71%       65 .87%    
Year Ended December 31, 2008
  $ 11 .63       0 .50       0 .38       0 .88       (0 .50)       –          (0 .50)       –        $ 12 .01       7 .72%     $ 1,364,508,386         0 .70%       4 .24%       0 .70%       55 .58%    
Year Ended December 31, 2007
  $ 11 .35       0 .51       0 .28       0 .79       (0 .51)       –          (0 .51)       –        $ 11 .63       7 .16%     $ 1,235,739,182         0 .72%       4 .52%       0 .72%       87 .90%    
Year Ended December 31, 2006
  $ 11 .54       0 .48       (0 .11)       0 .37       (0 .47)       (0 .09)       (0 .56)       –        $ 11 .35       3 .34%     $ 1,067,945,373         0 .73%       4 .16%       0 .73%       93 .01%    
Year Ended December 31, 2005
  $ 11 .62       0 .43       (0 .06)       0 .37       (0 .43)       (0 .02)       (0 .45)       –        $ 11 .54       3 .26%     $ 1,117,512,481         0 .73%       3 .65%       0 .73%       87 .79%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .70       0 .17       0 .37       0 .54       (0 .17)       –          (0 .17)       –        $ 12 .07       4 .68%     $ 9,148,703         0 .94%       2 .95%       0 .94%       47 .45%    
Year Ended December 31, 2009 (e)
  $ 11 .97       0 .37       (0 .08)       0 .29       (0 .38)       (0 .18)       (0 .56)       –        $ 11 .70       2 .43%     $ 10,532,918         0 .96%       3 .14%       0 .96%       65 .87%    
Year Ended December 31, 2008
  $ 11 .59       0 .47       0 .38       0 .85       (0 .47)       –          (0 .47)       –        $ 11 .97       7 .48%     $ 13,057,446         0 .94%       4 .00%       0 .94%       55 .58%    
Year Ended December 31, 2007
  $ 11 .32       0 .49       0 .26       0 .75       (0 .48)       –          (0 .48)       –        $ 11 .59       6 .91%     $ 14,013,343         0 .97%       4 .27%       0 .97%       87 .90%    
Year Ended December 31, 2006
  $ 11 .51       0 .45       (0 .11)       0 .34       (0 .44)       (0 .09)       (0 .53)       –        $ 11 .32       3 .00%     $ 14,469,737         0 .98%       3 .91%       0 .98%       93 .01%    
Year Ended December 31, 2005
  $ 11 .59       0 .40       (0 .06)       0 .34       (0 .40)       (0 .02)       (0 .42)       –        $ 11 .51       3 .01%     $ 15,765,561         0 .98%       3 .40%       0 .98%       87 .79%    
                                                                                                                                                         
Class III Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .74       0 .19       0 .37       0 .56       (0 .19)       –          (0 .19)       –        $ 12 .11       4 .81%     $ 25,280,608         0 .69%       3 .19%       0 .69%       47 .45%    
Year Ended December 31, 2009 (e)
  $ 12 .01       0 .41       (0 .09)       0 .32       (0 .41)       (0 .18)       (0 .59)       –        $ 11 .74       2 .69%     $ 22,621,617         0 .71%       3 .41%       0 .71%       65 .87%    
Year Ended December 31, 2008
  $ 11 .63       0 .50       0 .38       0 .88       (0 .50)       –          (0 .50)       –        $ 12 .01       7 .73%     $ 20,106,128         0 .69%       4 .25%       0 .69%       55 .58%    
Year Ended December 31, 2007
  $ 11 .35       0 .49       0 .30       0 .79       (0 .51)       –          (0 .51)       –        $ 11 .63       7 .15%     $ 18,582,814         0 .73%       4 .51%       0 .73%       87 .90%    
Year Ended December 31, 2006
  $ 11 .54       0 .47       (0 .10)       0 .37       (0 .47)       (0 .09)       (0 .56)       –        $ 11 .35       3 .35%     $ 13,164,278         0 .72%       4 .21%       0 .72%       93 .01%    
Year Ended December 31, 2005
  $ 11 .63       0 .40       (0 .04)       0 .36       (0 .43)       (0 .02)       (0 .45)       –        $ 11 .54       3 .18%     $ 10,604,399         0 .73%       3 .66%       0 .73%       87 .79%    
                                                                                                                                                         
Class IV Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .73       0 .19       0 .38       0 .57       (0 .19)       –          (0 .19)       –        $ 12 .11       4 .89%     $ 30,411,295         0 .69%       3 .19%       0 .69%       47 .45%    
Year Ended December 31, 2009 (e)
  $ 12 .00       0 .41       (0 .09)       0 .32       (0 .41)       (0 .18)       (0 .59)       –        $ 11 .73       2 .69%     $ 31,357,559         0 .71%       3 .40%       0 .71%       65 .87%    
Year Ended December 31, 2008
  $ 11 .63       0 .50       0 .37       0 .87       (0 .50)       –          (0 .50)       –        $ 12 .00       7 .62%     $ 33,626,583         0 .71%       4 .23%       0 .71%       55 .58%    
Year Ended December 31, 2007
  $ 11 .35       0 .52       0 .27       0 .79       (0 .51)       –          (0 .51)       –        $ 11 .63       7 .26%     $ 35,461,651         0 .70%       4 .53%       0 .71%       87 .90%    
Year Ended December 31, 2006
  $ 11 .53       0 .48       (0 .10)       0 .38       (0 .47)       (0 .09)       (0 .56)       –        $ 11 .35       3 .34%     $ 35,962,429         0 .73%       4 .16%       0 .73%       93 .01%    
Year Ended December 31, 2005
  $ 11 .62       0 .43       (0 .07)       0 .36       (0 .43)       (0 .02)       (0 .45)       –        $ 11 .53       3 .17%     $ 39,264,028         0 .73%       3 .65%       0 .73%       87 .79%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Government Bond Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. On May 21, 2010, debt and other fixed-income securities (other than short-term obligations) were valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of
 
 
 
12 Semiannual Report 2010

 

 
 
the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Collateralized Mortgage Obligations
  $ —     $ 183,263,623     $ —     $ 183,263,623      
 
 
Corporate Bonds
    —       79,777,226       —       79,777,226      
 
 
Mutual Fund
    80,801,934       —       —       80,801,934      
 
 
U.S. Government Mortgage Backed Agencies
    —       420,260,591       —       420,260,591      
 
 
U.S. Government Sponsored & Agency obligations
    —       52,975,015       —       52,975,015      
 
 
U.S. Treasury Bonds
    —       205,430,293       —       205,430,293      
 
 
U.S. Treasury Notes
    —       157,919,150       —       157,919,150      
 
 
Total Assets
  $ 80,801,934     $ 1,099,625,898     $ —     $ 1,180,427,832      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
 
 
14 Semiannual Report 2010

 

 
 
(e)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Nationwide Assets Management LLC (“NWAM”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of NWAM.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $250 million     0.50%      
 
 
    $250 million up to $1 billion     0.475%      
 
 
    $1 billion up to $2 billion     0.45%      
 
 
    $2 billion up to $5 billion     0.425%      
 
 
    $5 billion and more     0.40%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $877,008 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II and Class III shares and 0.20% of Class IV shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $866,449 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $2,586.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining
 
 
 
16 Semiannual Report 2010

 

 
 
whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $18,246.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $10,146.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $524,259,744 and sales of $633,343,743 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $411,073,314 and sales of $222,031,002 of U.S. Government securities.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 1,127,092,607     $ 53,453,675     $ (118,450 )   $ 53,335,225      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Government Bond Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Nationwide Asset Management, LLC (“NWAM”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that the Fund’s performance for Class I shares for each of the one- and five-year periods ended September 30, 2009 was in the first quintile of its Peer Group, and that the Fund’s performance for Class I shares for the three-year period ended September 30, 2009 was in the second quintile of its Peer Group. The Trustees then noted that, for the three- and five-year periods ended September 30, 2009, the Fund underperformed its benchmark, the BofA Merrill Lynch AAA U.S. Treasury/Agency Master Index (formerly the Merrill Lynch Government Master Index), but that the Fund outperformed its benchmark for the one-year period.
 
The Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the third quintile and slightly above the median of its Peer Group, and that the Fund’s actual advisory fee was in the third quintile and equal to the median of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the third quintile and equal to the median of the Fund’s Peer Group. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule includes breakpoints, and that the second breakpoint has been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

 
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NVIT Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
9
   
Statement of Operations
       
10
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-GR (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Growth Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       931.30       4.12       0.86  
      Hypothetical b     1,000.00       1,020.53       4.31       0.86  
 
 
Class IV Shares
    Actual       1,000.00       930.40       4.12       0.86  
      Hypothetical b     1,000.00       1,020.53       4.31       0.86  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Growth Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    99 .1%
Mutual Fund
    0 .9%
Repurchase Agreement ‡
    0 .0%
Other assets in excess of liabilities ‡
    0 .0%
         
      100 .0%
         
Top Industries †    
 
Computers & Peripherals
    9 .6%
Semiconductors & Semiconductor Equipment
    7 .3%
Machinery
    6 .1%
Pharmaceuticals
    5 .7%
Communications Equipment
    5 .4%
Software
    5 .2%
Health Care Equipment & Supplies
    5 .1%
Hotels, Restaurants & Leisure
    4 .7%
Information Technology Services
    4 .2%
Internet Software & Services
    3 .7%
Other Industries *
    43 .0%
         
      100 .0%
         
Top Holdings †    
 
Apple, Inc. 
    5 .6%
Cisco Systems, Inc. 
    3 .5%
Intel Corp. 
    2 .6%
Google, Inc., Class A
    2 .6%
Target Corp. 
    2 .2%
Hewlett-Packard Co. 
    2 .2%
Abbott Laboratories
    2 .2%
Oracle Corp. 
    2 .1%
PepsiCo, Inc. 
    2 .1%
3M Co. 
    1 .9%
Other Holdings *
    73 .0%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Growth Fund
 
                 
                 
Common Stocks 99.1%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 1.8%
Boeing Co. (The)
    3,500     $ 219,625  
Precision Castparts Corp.
    11,100       1,142,412  
United Technologies Corp.
    8,570       556,279  
                 
              1,918,316  
                 
 
 
Auto Components 0.8%
BorgWarner, Inc.*
    23,200       866,288  
                 
 
 
Beverages 2.3%
Coca-Cola Enterprises, Inc.
    8,300       214,638  
PepsiCo, Inc.
    35,910       2,188,714  
                 
              2,403,352  
                 
 
 
Biotechnology 1.7%
Amgen, Inc.*
    5,780       304,028  
Biogen Idec, Inc.*
    5,400       256,230  
Gilead Sciences, Inc.*
    36,290       1,244,021  
                 
              1,804,279  
                 
 
 
Capital Markets 0.5%
BlackRock, Inc.
    1,000       143,400  
Northern Trust Corp.
    7,150       333,905  
                 
              477,305  
                 
 
 
Chemicals 3.1%
Monsanto Co.
    5,200       240,344  
Potash Corp. of Saskatchewan, Inc.
    8,800       758,912  
Praxair, Inc.
    18,150       1,379,218  
Valspar Corp.
    28,300       852,396  
                 
              3,230,870  
                 
 
 
Communications Equipment 5.4%
Cisco Systems, Inc.*
    174,830       3,725,627  
F5 Networks, Inc.*
    9,100       623,987  
QUALCOMM, Inc.
    42,070       1,381,579  
                 
              5,731,193  
                 
 
 
Computers & Peripherals 9.6%
Apple, Inc.*
    23,550       5,923,531  
EMC Corp.*
    44,500       814,350  
Hewlett-Packard Co.
    54,240       2,347,507  
NetApp, Inc.*
    23,821       888,762  
Western Digital Corp.*
    5,800       174,928  
                 
              10,149,078  
                 
 
 
Consumer Finance 1.0%
Capital One Financial Corp.
    26,900       1,084,070  
                 
 
 
Containers & Packaging 0.1%
Owens-Illinois, Inc.*
    5,300       140,185  
                 
Diversified Financial Services 1.8%
IntercontinentalExchange, Inc.*
    7,600       859,028  
JPMorgan Chase & Co.
    22,150       810,912  
NYSE Euronext
    8,300       229,329  
                 
              1,899,269  
                 
 
 
Diversified Telecommunication Services 0.1%
Windstream Corp.
    14,400       152,064  
                 
 
 
Electrical Equipment 0.8%
Emerson Electric Co.
    18,900       825,741  
                 
 
 
Energy Equipment & Services 3.5%
Cameron International Corp.*
    41,601       1,352,864  
Halliburton Co.
    68,013       1,669,719  
Helmerich & Payne, Inc.
    6,200       226,424  
Schlumberger Ltd.
    7,740       428,332  
                 
              3,677,339  
                 
 
 
Food & Staples Retailing 2.2%
Costco Wholesale Corp.
    5,300       290,599  
CVS Caremark Corp.
    38,159       1,118,822  
Kroger Co. (The)
    15,000       295,350  
Wal-Mart Stores, Inc.
    12,300       591,261  
                 
              2,296,032  
                 
 
 
Food Products 1.0%
Kellogg Co.
    13,900       699,170  
Mead Johnson Nutrition Co.
    7,650       383,418  
                 
              1,082,588  
                 
 
 
Health Care Equipment & Supplies 5.1%
Baxter International, Inc.
    21,300       865,632  
Beckman Coulter, Inc.
    6,300       379,827  
Hill-Rom Holdings, Inc.
    40,100       1,220,243  
Intuitive Surgical, Inc.*
    2,500       789,050  
Medtronic, Inc.
    11,000       398,970  
St. Jude Medical, Inc.*
    47,250       1,705,252  
                 
              5,358,974  
                 
 
 
Health Care Providers & Services 1.1%
Express Scripts, Inc.*
    24,138       1,134,969  
                 
 
 
Hotels, Restaurants & Leisure 4.7%
Darden Restaurants, Inc.
    7,800       303,030  
International Game Technology
    15,200       238,640  
McDonald’s Corp.
    5,400       355,698  
P.F. Chang’s China Bistro, Inc.
    19,200       761,280  
Starbucks Corp.
    51,130       1,242,459  
Starwood Hotels & Resorts Worldwide, Inc.
    27,000       1,118,610  
WMS Industries, Inc.*
    16,888       662,854  
Yum! Brands, Inc.
    7,900       308,416  
                 
              4,990,987  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Household Durables 0.1%
Garmin Ltd. (a)
    4,750     $ 138,605  
                 
 
 
Household Products 2.9%
Church & Dwight Co., Inc.
    7,850       492,273  
Clorox Co.
    12,600       783,216  
Colgate-Palmolive Co.
    20,200       1,590,952  
Procter & Gamble Co. (The)
    3,670       220,127  
                 
              3,086,568  
                 
 
 
Industrial Conglomerates 1.9%
3M Co.
    26,000       2,053,740  
                 
 
 
Information Technology Services 4.2%
Cognizant Technology Solutions Corp., Class A*
    26,920       1,347,615  
International Business Machines Corp.
    10,060       1,242,209  
Visa, Inc., Class A
    26,210       1,854,358  
                 
              4,444,182  
                 
 
 
Internet & Catalog Retail 1.5%
Amazon.com, Inc.*
    3,600       393,336  
Netflix, Inc.*
    1,700       184,705  
Priceline.com, Inc.*
    5,651       997,628  
                 
              1,575,669  
                 
 
 
Internet Software & Services 3.7%
Google, Inc., Class A*
    6,170       2,745,341  
Yahoo!, Inc.*
    83,600       1,156,188  
                 
              3,901,529  
                 
 
 
Leisure Equipment & Products 0.4%
Hasbro, Inc.
    9,200       378,120  
                 
 
 
Life Sciences Tools & Services 0.8%
Furiex Pharmaceuticals, Inc.*
    766       7,783  
Waters Corp.*
    13,300       860,510  
                 
              868,293  
                 
 
 
Machinery 6.1%
Caterpillar, Inc.
    5,900       354,413  
Cummins, Inc.
    17,800       1,159,314  
Danaher Corp.
    49,480       1,836,698  
Deere & Co.
    26,600       1,481,088  
Harsco Corp.
    13,500       317,250  
PACCAR, Inc.
    8,200       326,934  
Parker Hannifin Corp.
    18,100       1,003,826  
                 
              6,479,523  
                 
 
 
Metals & Mining 0.7%
Freeport-McMoRan Copper & Gold, Inc.
    12,700       750,951  
                 
Multiline Retail 2.2%
Target Corp.
    48,050       2,362,619  
                 
 
 
Multi-Utilities 0.2%
CenterPoint Energy, Inc.
    15,100       198,716  
                 
 
 
Oil, Gas & Consumable Fuels 2.5%
EOG Resources, Inc.
    10,900       1,072,233  
Exxon Mobil Corp.
    3,700       211,159  
Southwestern Energy Co.*
    34,600       1,336,944  
                 
              2,620,336  
                 
 
 
Personal Products 0.8%
Alberto-Culver Co.
    30,900       837,081  
                 
 
 
Pharmaceuticals 5.7%
Abbott Laboratories
    49,630       2,321,691  
Allergan, Inc.
    21,850       1,272,981  
Bristol-Myers Squibb Co.
    51,400       1,281,916  
Johnson & Johnson
    19,590       1,156,986  
                 
              6,033,574  
                 
 
 
Real Estate Investment Trusts (REITs) 0.2%
Rayonier, Inc.
    5,500       242,110  
                 
 
 
Real Estate Management & Development 0.4%
Jones Lang LaSalle, Inc.
    6,700       439,788  
                 
 
 
Road & Rail 1.7%
Canadian National Railway Co.
    15,600       895,128  
Kansas City Southern*
    23,761       863,712  
                 
              1,758,840  
                 
 
 
Semiconductors & Semiconductor Equipment 7.3%
Analog Devices, Inc.
    40,400       1,125,544  
Broadcom Corp., Class A
    44,400       1,463,868  
Intel Corp.
    142,380       2,769,291  
Marvell Technology Group Ltd.*
    93,450       1,472,772  
Teradyne, Inc.*
    60,300       587,925  
Texas Instruments, Inc.
    15,300       356,184  
                 
              7,775,584  
                 
 
 
Software 5.2%
Activision Blizzard, Inc.
    23,900       250,711  
McAfee, Inc.*
    27,600       847,872  
Microsoft Corp.
    55,830       1,284,648  
Oracle Corp.
    104,000       2,231,840  
Solera Holdings, Inc.
    18,100       655,220  
Symantec Corp.*
    16,600       230,408  
                 
              5,500,699  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Specialty Retail 1.5%
Lowe’s Cos., Inc.
    27,100     $ 553,382  
Urban Outfitters, Inc.*
    30,400       1,045,456  
                 
              1,598,838  
                 
 
 
Textiles, Apparel & Luxury Goods 0.8%
Coach, Inc.
    22,300       815,065  
                 
 
 
Tobacco 0.9%
Philip Morris International, Inc.
    21,200       971,808  
                 
 
 
Trading Companies & Distributors 0.8%
W.W. Grainger, Inc.
    8,500       845,325  
                 
         
Total Common Stocks (cost $101,924,092)
    104,900,462  
         
                 
                 
Mutual Fund 0.9%
                 
                 
Money Market Fund 0.9%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    953,118       953,118  
                 
         
Total Mutual Fund (cost $953,118)
    953,118  
         
                 
                 
Repurchase Agreement 0.0%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10 repurchase price $42,000 collateralized by U.S. Government Agency Securities ranging from 4.00% – 8.50% maturing 01/01/19 – 06/01/40; total market value of $42,842 (c)
               
    $ 42,000     $ 42,000  
                 
         
Total Repurchase Agreement
(cost $42,000)
    42,000  
         
         
Total Investments (cost $102,919,210) (d) — 100.0%
    105,895,580  
         
Other assets in excess of liabilities — 0.0%
    50,081  
         
         
NET ASSETS — 100.0%
  $ 105,945,661  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $40,852.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $42,000.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
Ltd. Limited
 
REIT Real Estate Investment Trust
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Growth Fund  
       
Assets:
         
Investments, at value* (cost $102,877,210)
    $ 105,853,580  
Repurchase agreement, at value and cost
      42,000  
           
Total Investments
      105,895,580  
           
Dividends receivable
      67,394  
Security lending income receivable
      581  
Receivable for investments sold
      230,000  
Receivable for capital shares issued
      21,097  
Prepaid expenses and other assets
      1,444  
           
Total Assets
      106,216,096  
           
Liabilities:
         
Payable for capital shares redeemed
      121,397  
Cash overdraft (Note 2)
      180  
Payable upon return of securities loaned (Note 2)
      42,000  
Accrued expenses and other payables:
         
Investment advisory fees
      55,564  
Fund administration fees
      8,689  
Administrative servicing fees
      15,789  
Accounting and transfer agent fees
      1,908  
Trustee fees
      80  
Custodian fees
      809  
Compliance program costs (Note 3)
      584  
Professional fees
      9,836  
Printing fees
      13,599  
           
Total Liabilities
      270,435  
           
Net Assets
    $ 105,945,661  
           
Represented by:
         
Capital
    $ 216,647,829  
Accumulated undistributed net investment income
      57,452  
Accumulated net realized losses from investment transactions
      (113,735,990 )
Net unrealized appreciation/(depreciation) from investments
      2,976,370  
           
Net Assets
    $ 105,945,661  
           
Net Assets:
         
Class I Shares
    $ 86,435,323  
Class IV Shares
      19,510,338  
           
Total
    $ 105,945,661  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      7,910,929  
Class IV Shares
      1,785,950  
           
Total
      9,696,879  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 10.93  
Class IV Shares
    $ 10.92  
*  Includes value of securities on loan of $40,852 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Growth Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 732,514  
Income from securities lending (Note 2)
      4,384  
Foreign tax withholding
      (1,559 )
           
Total Income
      735,339  
           
EXPENSES:
         
Investment advisory fees
      355,687  
Fund administration fees
      32,441  
Administrative servicing fees Class I Shares
      72,600  
Administrative servicing fees Class IV Shares
      16,322  
Professional fees
      11,750  
Printing fees
      10,380  
Trustee fees
      2,123  
Custodian fees
      2,460  
Accounting and transfer agent fees
      1,713  
Compliance program costs (Note 3)
      233  
Other
      3,573  
           
Total expenses before earnings credits
      509,282  
Earnings credit (Note 4)
      (15 )
           
Net Expenses
      509,267  
           
NET INVESTMENT INCOME
      226,072  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      7,816,050  
Net change in unrealized appreciation/(depreciation) from investments
      (15,805,192 )
           
Net realized/unrealized losses from investments
      (7,989,142 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (7,763,070 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statements of Changes in Net Assets
 
                     
      NVIT Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 226,072       $ 587,839  
Net realized gains/(losses) from investment transactions
      7,816,050         (11,336,534 )
Net change in unrealized appreciation/(depreciation) from investments
      (15,805,192 )       43,140,162  
                     
Change in net assets resulting from operations
      (7,763,070 )       32,391,467  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (194,481 )       (498,281 )
Class IV
      (43,713 )       (111,697 )
                     
Change in net assets from shareholder distributions
      (238,194 )       (609,978 )
                     
Change in net assets from capital transactions
      (9,982,320 )       (12,737,892 )
                     
Change in net assets
      (17,983,584 )       19,043,597  
                     
                     
Net Assets:
                   
Beginning of period
      123,929,245         104,885,648  
                     
End of period
    $ 105,945,661       $ 123,929,245  
                     
Accumulated undistributed net investment income at end of period
    $ 57,452       $ 69,574  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 860,526       $ 3,801,342  
Dividends reinvested
      194,481         498,281  
Cost of shares redeemed
      (9,581,316 )       (14,521,074 )
                     
Total Class I
      (8,526,309 )       (10,221,451 )
                     
Class IV Shares
                   
Proceeds from shares issued
      401,155         1,065,352  
Dividends reinvested
      43,713         111,697  
Cost of shares redeemed
      (1,900,879 )       (3,693,490 )
                     
Total Class IV
      (1,456,011 )       (2,516,441 )
                     
Change in net assets from capital transactions
    $ (9,982,320 )     $ (12,737,892 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      71,273         393,181  
Reinvested
      16,108         50,367  
Redeemed
      (805,771 )       (1,490,350 )
                     
Total Class I Shares
      (718,390 )       (1,046,802 )
                     
Class IV Shares
                   
Issued
      33,341         109,915  
Reinvested
      3,621         11,304  
Redeemed
      (160,594 )       (373,295 )
                     
Total Class IV Shares
      (123,632 )       (252,076 )
                     
Total change in shares
      (842,022 )       (1,298,878 )
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Growth Fund
 
                                                                                                                                     
          Operations     Distributions                       Ratios / Supplemental Data          
     
                Net Realized
 		                                                    Ratio of
 		         
                and
 		                                              Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                        Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                     
Class I Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .76       0 .02       (0 .83)       (0 .81)       (0 .02)       (0 .02)     $ 10 .93       (6 .87%)     $ 86,435,323         0 .86%       0 .38%       0 .86%       53 .10%    
Year Ended December 31, 2009 (e)
  $ 8 .86       0 .05       2 .91       2 .96       (0 .06)       (0 .06)     $ 11 .76       33 .47%     $ 101,476,994         0 .86%       0 .53%       0 .86%       157 .59%    
Year Ended December 31, 2008
  $ 14 .50       0 .04       (5 .65)       (5 .61)       (0 .03)       (0 .03)     $ 8 .86       (38 .71%)     $ 85,735,294         0 .85%       0 .33%       0 .85%       209 .42%    
Year Ended December 31, 2007
  $ 12 .15       0 .02       2 .35       2 .37       (0 .02)       (0 .02)     $ 14 .50       19 .54%     $ 171,965,942         0 .86%       0 .17%       0 .86%       244 .42%    
Year Ended December 31, 2006
  $ 11 .45       0 .01       0 .70       0 .71       (0 .01)       (0 .01)     $ 12 .15       6 .17%     $ 171,610,375         0 .87%       0 .04%       0 .87%       294 .57%    
Year Ended December 31, 2005
  $ 10 .76       0 .01       0 .69       0 .70       (0 .01)       (0 .01)     $ 11 .45       6 .50%     $ 199,445,881         0 .87%       0 .05%       0 .87%       275 .31%    
                                                                                                                                     
Class IV Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .76       0 .02       (0 .84)       (0 .82)       (0 .02)       (0 .02)     $ 10 .92       (6 .96%)     $ 19,510,338         0 .86%       0 .38%       0 .86%       53 .10%    
Year Ended December 31, 2009 (e)
  $ 8 .86       0 .05       2 .91       2 .96       (0 .06)       (0 .06)     $ 11 .76       33 .62%     $ 22,452,251         0 .86%       0 .53%       0 .86%       157 .59%    
Year Ended December 31, 2008
  $ 14 .50       0 .04       (5 .65)       (5 .61)       (0 .03)       (0 .03)     $ 8 .86       (38 .72%)     $ 19,150,354         0 .86%       0 .31%       0 .86%       209 .42%    
Year Ended December 31, 2007
  $ 12 .15       0 .03       2 .35       2 .38       (0 .03)       (0 .03)     $ 14 .50       19 .56%     $ 35,107,460         0 .84%       0 .18%       0 .85%       244 .42%    
Year Ended December 31, 2006
  $ 11 .45       0 .01       0 .70       0 .71       (0 .01)       (0 .01)     $ 12 .15       6 .17%     $ 33,938,770         0 .87%       0 .05%       0 .87%       294 .57%    
Year Ended December 31, 2005
  $ 10 .76       0 .01       0 .69       0 .70       (0 .01)       (0 .01)     $ 11 .45       6 .50%     $ 36,208,702         0 .87%       0 .05%       0 .87%       275 .31%    
Amounts designated as “–” are zero or have been rounded to zero
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Growth Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
12 Semiannual Report 2010

 

 
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1     Level 2     Level 3     Total      
 
Assets:
                                   
Common Stocks
  $ 104,900,462     $ —     $ —     $ 104,900,462      
 
 
Mutual Fund
    953,118       —       —       953,118      
 
 
Repurchase Agreement
    —       42,000       —       42,000      
 
 
Total Assets
  $ 105,853,580     $ 42,000     $ —     $ 105,895,580      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $180 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 40,852     $ 42,000      
 
 
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for
 
 
 
14 Semiannual Report 2010

 

 
 
federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Aberdeen Asset Management, Inc. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $250 million     0.60%      
 
 
    $250 million up to $1 billion     0.575%      
 
 
    $1 billion up to $2 billion     0.55%      
 
 
    $2 billion up to $5 billion     0.525%      
 
 
    $5 billion and more     0.50%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $207,484 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
16 Semiannual Report 2010

 

 
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I shares and 0.20% of the average daily net assets of Class IV of the Fund.
 
For the six months ended June 30, 2010, NFS received $88,922 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $233.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $61,731,814 and sales of $70,736,840 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with REITs and Real Estate Investments.  Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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 Trust’s 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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 106,328,340     $ 6,077,455     $ (6,510,215)     $ (432,760)      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Growth Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Aberdeen Asset Management Inc., the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Class I shares was in the first quintile of its Peer Group, while for the one-year period ended September 30, 2009, the Fund’s performance for Class I shares was in the second quintile of its Peer Group. The Trustees also noted that, for each of these periods, the Fund also outperformed its benchmark, the Russell 1000 Growth Index.
 
The Trustees then noted that the Fund’s contractual advisory fee and total expenses for Class I shares were in the second quintile of its Peer Group. The Trustees also noted that, although the Fund’s actual advisory fee was in the third quintile and at the median of its Peer Group, the Fund’s actual advisory fee was in the second quintile of its Peer Universe. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

 
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NVIT Mid Cap Index Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
12
   
Statement of Assets and Liabilities
       
14
   
Statement of Operations
       
15
   
Statements of Changes in Net Assets
       
17
   
Financial Highlights
       
18
   
Notes to Financial Statements
       
27
   
Supplemental Information
       
29
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MCX (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Mid Cap Index Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Mid Cap Index Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       984.10       2.12       0.43  
      Hypothetical b     1,000.00       1,022.66       2.16       0.43  
 
 
Class II Shares
    Actual       1,000.00       982.90       3.34       0.68  
      Hypothetical b     1,000.00       1,021.42       3.41       0.68  
 
 
Class Y Shares
    Actual       1,000.00       984.90       1.38       0.28  
      Hypothetical b     1,000.00       1,023.41       1.40       0.28  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Mid Cap Index Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    99 .2%
Repurchase Agreements
    3 .8%
Mutual Fund
    1 .1%
Liabilities in excess of other assets
    (4 .1)%
         
      100 .0%
 
         
Top Industries †    
 
Real Estate Investment Trusts (REITs)
    7 .5%
Machinery
    5 .2%
Insurance
    4 .3%
Software
    4 .1%
Health Care Equipment & Supplies
    4 .1%
Specialty Retail
    3 .7%
Commercial Banks
    3 .7%
Health Care Providers & Services
    3 .7%
Oil, Gas & Consumable Fuels
    3 .6%
Chemicals
    3 .1%
Other Industries *
    57 .0%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    1 .1%
Vertex Pharmaceuticals, Inc. 
    0 .7%
New York Community Bancorp, Inc. 
    0 .7%
Newfield Exploration Co. 
    0 .7%
Cree, Inc. 
    0 .7%
Edwards Lifesciences Corp. 
    0 .7%
Cimarex Energy Co. 
    0 .7%
Sybase, Inc. 
    0 .6%
F5 Networks, Inc. 
    0 .6%
Lubrizol Corp. 
    0 .6%
Other Holdings *
    92 .9%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Mid Cap Index Fund
 
                 
Common Stocks 99.2%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 0.5%
Alliant Techsystems, Inc.*
    37,404     $ 2,321,292  
BE Aerospace, Inc.*
    115,799       2,944,769  
                 
              5,266,061  
                 
 
 
Airlines 0.4%
AirTran Holdings, Inc.*
    152,698       740,585  
Alaska Air Group, Inc.*
    40,385       1,815,306  
JetBlue Airways Corp.*
    234,955       1,289,903  
                 
              3,845,794  
                 
 
 
Auto Components 0.8%
BorgWarner, Inc.*
    133,082       4,969,282  
Gentex Corp.
    157,396       2,829,980  
                 
              7,799,262  
                 
 
 
Automobiles 0.1%
Thor Industries, Inc.
    44,315       1,052,481  
                 
 
 
Beverages 0.3%
Hansen Natural Corp.*
    79,902       3,124,967  
                 
 
 
Biotechnology 1.0%
United Therapeutics Corp.*
    55,565       2,712,128  
Vertex Pharmaceuticals, Inc.*
    228,587       7,520,513  
                 
              10,232,641  
                 
 
 
Building Products 0.2%
Lennox International, Inc.
    55,036       2,287,847  
                 
 
 
Capital Markets 2.1%
Affiliated Managers Group, Inc.*
    50,362       3,060,499  
Apollo Investment Corp.
    219,138       2,044,557  
Eaton Vance Corp.
    134,031       3,700,596  
Greenhill & Co., Inc.
    24,183       1,478,307  
Jefferies Group, Inc. (a)
    137,971       2,908,429  
Raymond James Financial, Inc.
    112,372       2,774,465  
SEI Investments Co.
    146,235       2,977,344  
Waddell & Reed Financial, Inc., Class A
    97,691       2,137,479  
                 
              21,081,676  
                 
 
 
Chemicals 3.3%
Albemarle Corp.
    103,447       4,107,880  
Ashland, Inc.
    88,432       4,105,013  
Cabot Corp.
    74,043       1,785,177  
Cytec Industries, Inc.
    55,259       2,209,807  
Intrepid Potash, Inc.* (a)
    46,981       919,418  
Lubrizol Corp.
    77,193       6,199,370  
Minerals Technologies, Inc.
    21,306       1,012,887  
NewMarket Corp.
    13,143       1,147,647  
Olin Corp.
    88,978       1,609,612  
RPM International, Inc.
    146,706       2,617,235  
Scotts Miracle-Gro Co. (The), Class A
    51,294       2,277,967  
Sensient Technologies Corp.
    55,764       1,445,961  
Valspar Corp.
    112,427       3,386,301  
                 
              32,824,275  
                 
 
 
Commercial Banks 3.8%
Associated Banc-Corp.
    195,684       2,399,086  
BancorpSouth, Inc.
    83,048       1,484,898  
Bank of Hawaii Corp.
    54,393       2,629,902  
Cathay General Bancorp
    88,582       915,052  
City National Corp.
    49,075       2,514,112  
Commerce Bancshares, Inc.
    82,698       2,976,301  
Cullen/Frost Bankers, Inc.
    68,444       3,518,022  
FirstMerit Corp.
    121,825       2,086,862  
Fulton Financial Corp.
    224,612       2,167,506  
International Bancshares Corp.
    58,874       982,607  
PacWest Bancorp
    35,123       643,102  
Prosperity Bancshares, Inc.
    52,736       1,832,576  
SVB Financial Group*
    46,852       1,931,708  
Synovus Financial Corp.
    885,272       2,248,591  
TCF Financial Corp.
    139,728       2,320,882  
Trustmark Corp.
    64,229       1,337,248  
Valley National Bancorp (a)
    182,170       2,481,155  
Webster Financial Corp.
    75,412       1,352,891  
Westamerica Bancorp (a)
    33,092       1,737,992  
Wilmington Trust Corp.
    103,098       1,143,357  
                 
              38,703,850  
                 
 
 
Commercial Services & Supplies 1.7%
Brink’s Co. (The)
    54,047       1,028,515  
Clean Harbors, Inc.*
    25,874       1,718,292  
Copart, Inc.*
    76,267       2,731,121  
Corrections Corp of America*
    128,923       2,459,851  
Deluxe Corp.
    58,012       1,087,725  
Herman Miller, Inc.
    64,391       1,215,058  
HNI Corp.
    51,032       1,407,973  
Mine Safety Appliances Co.
    34,241       848,492  
Rollins, Inc.
    49,650       1,027,259  
Waste Connections, Inc.*
    87,962       3,068,994  
                 
              16,593,280  
                 
 
 
Communications Equipment 1.8%
ADC Telecommunications, Inc.*
    109,624       812,314  
ADTRAN, Inc.
    62,800       1,712,556  
Ciena Corp.* (a)
    104,884       1,329,929  
CommScope, Inc.*
    106,801       2,538,660  
F5 Networks, Inc.*
    90,605       6,212,785  
Palm, Inc.*
    189,898       1,080,520  
Plantronics, Inc.
    54,669       1,563,533  
Polycom, Inc.*
    96,324       2,869,492  
                 
              18,119,789  
                 
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Mid Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Computers & Peripherals 0.4%
Diebold, Inc.
    74,795     $ 2,038,164  
NCR Corp.*
    180,363       2,185,999  
                 
              4,224,163  
                 
 
 
Construction & Engineering 1.4%
Aecom Technology Corp.*
    129,114       2,977,369  
Granite Construction, Inc.
    37,949       894,837  
KBR, Inc.
    181,789       3,697,588  
Shaw Group, Inc. (The)*
    95,328       3,262,124  
URS Corp.*
    93,790       3,690,637  
                 
              14,522,555  
                 
 
 
Construction Materials 0.4%
Martin Marietta Materials, Inc. (a)
    51,348       4,354,824  
                 
 
 
Consumer Finance 0.2%
AmeriCredit Corp.*
    109,204       1,989,697  
                 
 
 
Containers & Packaging 1.7%
AptarGroup, Inc.
    76,863       2,906,959  
Greif, Inc., Class A
    38,946       2,163,061  
Packaging Corp. of America
    116,720       2,570,174  
Rock-Tenn Co., Class A
    43,974       2,184,189  
Silgan Holdings, Inc.
    60,727       1,723,432  
Sonoco Products Co.
    113,580       3,461,918  
Temple-Inland, Inc.
    121,809       2,517,792  
                 
              17,527,525  
                 
 
 
Distributors 0.3%
LKQ Corp.*
    161,476       3,113,257  
                 
 
 
Diversified Consumer Services 1.5%
Career Education Corp.*
    75,192       1,730,920  
Corinthian Colleges, Inc.* (a)
    99,397       979,060  
ITT Educational Services, Inc.*
    32,873       2,729,116  
Matthews International Corp., Class A
    34,528       1,010,980  
Regis Corp.
    64,991       1,011,910  
Service Corp. International
    287,804       2,129,750  
Sotheby’s
    75,993       1,737,960  
Strayer Education, Inc. (a)
    15,759       3,276,138  
                 
              14,605,834  
                 
 
 
Diversified Financial Services 0.4%
MSCI, Inc., Class A*
    131,759       3,610,197  
                 
 
 
Diversified Telecommunication Services 0.4%
Cincinnati Bell, Inc.*
    227,803       685,687  
TW Telecom, Inc.*
    171,500       2,860,620  
                 
              3,546,307  
                 
 
 
Electric Utilities 1.9%
Cleco Corp.
    68,550       1,810,406  
DPL, Inc.
    134,747       3,220,453  
Great Plains Energy, Inc.
    153,354       2,610,085  
Hawaiian Electric Industries, Inc.
    105,333       2,399,486  
IDACORP, Inc.
    54,328       1,807,493  
NV Energy, Inc.
    266,052       3,142,074  
PNM Resources, Inc.
    97,862       1,094,097  
Westar Energy, Inc.
    125,056       2,702,460  
                 
              18,786,554  
                 
 
 
Electrical Equipment 1.5%
Acuity Brands, Inc.
    49,243       1,791,460  
Ametek, Inc.
    120,402       4,834,140  
Hubbell, Inc., Class B
    67,688       2,686,537  
Regal-Beloit Corp.
    43,524       2,427,769  
Thomas & Betts Corp.*
    59,613       2,068,571  
Woodward Governor Co.
    64,330       1,642,345  
                 
              15,450,822  
                 
 
 
Electronic Equipment, Instruments & Components 2.2%
Arrow Electronics, Inc.*
    135,758       3,034,191  
Avnet, Inc.*
    171,893       4,144,340  
Ingram Micro, Inc., Class A*
    186,975       2,840,150  
Itron, Inc.*
    45,505       2,813,119  
National Instruments Corp.
    64,199       2,040,244  
Tech Data Corp.*
    57,404       2,044,731  
Trimble Navigation Ltd.*
    136,728       3,828,384  
Vishay Intertechnology, Inc.*
    211,460       1,636,701  
                 
              22,381,860  
                 
 
 
Energy Equipment & Services 1.8%
Atwood Oceanics, Inc.*
    64,201       1,638,410  
Exterran Holdings, Inc.*
    70,829       1,828,097  
Helix Energy Solutions Group, Inc.*
    103,559       1,115,330  
Oceaneering International, Inc.*
    62,218       2,793,588  
Patterson-UTI Energy, Inc.
    173,979       2,239,110  
Pride International, Inc.*
    198,903       4,443,493  
Tidewater, Inc.
    58,592       2,268,682  
Unit Corp.*
    45,831       1,860,280  
                 
              18,186,990  
                 
 
 
Food & Staples Retailing 0.4%
BJ’s Wholesale Club, Inc.*
    61,043       2,259,202  
Ruddick Corp.
    46,394       1,437,750  
                 
              3,696,952  
                 
 
 
Food Products 1.5%
Corn Products International, Inc.
    85,076       2,577,803  
Flowers Foods, Inc.
    87,286       2,132,397  
Green Mountain Coffee Roasters, Inc.* (a)
    118,857       3,054,625  
Lancaster Colony Corp.
    22,049       1,176,534  
Ralcorp Holdings, Inc.*
    62,020       3,398,696  
Smithfield Foods, Inc.*
    166,852       2,486,095  
Tootsie Roll Industries, Inc. (a)
    30,568       722,933  
                 
              15,549,083  
                 
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Gas Utilities 2.2%
AGL Resources, Inc.
    87,849     $ 3,146,751  
Atmos Energy Corp.
    105,421       2,850,584  
Energen Corp.
    81,287       3,603,452  
National Fuel Gas Co.
    92,610       4,248,947  
Questar Corp.*
    197,462       3,189,011  
UGI Corp.
    123,327       3,137,439  
WGL Holdings, Inc.
    56,991       1,939,404  
                 
              22,115,588  
                 
 
 
Health Care Equipment & Supplies 4.2%
Beckman Coulter, Inc.
    79,151       4,772,014  
Edwards Lifesciences Corp.*
    128,145       7,178,683  
Gen-Probe, Inc.*
    56,083       2,547,290  
Hill-Rom Holdings, Inc.
    71,232       2,167,590  
Hologic, Inc.*
    292,801       4,078,718  
IDEXX Laboratories, Inc.* (a)
    65,287       3,975,978  
Immucor, Inc.*
    79,065       1,506,188  
Kinetic Concepts, Inc.*
    70,307       2,566,908  
Masimo Corp.
    59,123       1,407,719  
ResMed, Inc.*
    85,718       5,212,511  
STERIS Corp.
    66,987       2,081,956  
Teleflex, Inc.
    45,046       2,445,097  
Thoratec Corp.*
    64,652       2,762,580  
                 
              42,703,232  
                 
 
 
Health Care Providers & Services 3.8%
Community Health Systems, Inc.*
    107,260       3,626,461  
Health Management Associates, Inc., Class A *
    283,072       2,199,469  
Health Net, Inc.*
    112,625       2,744,671  
Henry Schein, Inc.*
    103,299       5,671,115  
Kindred Healthcare, Inc.*
    43,992       564,857  
LifePoint Hospitals, Inc.*
    62,140       1,951,196  
Lincare Holdings, Inc.*
    112,347       3,652,401  
MEDNAX, Inc.*
    53,271       2,962,400  
Omnicare, Inc.
    136,265       3,229,481  
Owens & Minor, Inc.
    71,308       2,023,721  
Psychiatric Solutions, Inc.*
    64,630       2,114,694  
Universal Health Services, Inc., Class B
    109,862       4,191,235  
VCA Antech, Inc.*
    96,840       2,397,758  
WellCare Health Plans, Inc.*
    47,848       1,135,912  
                 
              38,465,371  
                 
 
 
Hotels, Restaurants & Leisure 2.3%
Bally Technologies, Inc.*
    62,562       2,026,383  
Bob Evans Farms, Inc.
    34,633       852,664  
Boyd Gaming Corp.*
    62,028       526,618  
Brinker International, Inc.
    116,091       1,678,676  
Burger King Holdings, Inc.
    104,203       1,754,779  
Cheesecake Factory, Inc. (The)*
    68,336       1,521,159  
Chipotle Mexican Grill, Inc.*
    35,615       4,872,488  
International Speedway Corp., Class A
    34,609       891,528  
Life Time Fitness, Inc.* (a)
    46,917       1,491,491  
Panera Bread Co., Class A*
    36,043       2,713,677  
Scientific Games Corp., Class A*
    73,603       677,148  
Wendy’s/Arby’s Group, Inc., Class A
    380,915       1,523,660  
WMS Industries, Inc.*
    59,130       2,320,853  
                 
              22,851,124  
                 
 
 
Household Durables 1.7%
American Greetings Corp., Class A
    44,746       839,435  
KB Home (b)
    83,515       918,665  
M.D.C. Holdings, Inc.
    42,522       1,145,968  
Mohawk Industries, Inc.*
    63,604       2,910,519  
NVR, Inc.*
    6,972       4,566,869  
Ryland Group, Inc.
    49,684       786,001  
Toll Brothers, Inc.*
    158,992       2,601,109  
Tupperware Brands Corp.
    71,454       2,847,442  
                 
              16,616,008  
                 
 
 
Household Products 0.9%
Church & Dwight Co., Inc.
    80,029       5,018,619  
Energizer Holdings, Inc.*
    79,107       3,977,500  
                 
              8,996,119  
                 
 
 
Independent Power Producers & Energy Traders 0.0%†
Dynegy, Inc.*
    114,593       441,183  
                 
 
 
Industrial Conglomerates 0.2%
Carlisle Cos., Inc.
    68,801       2,485,780  
                 
 
 
Information Technology Services 2.8%
Acxiom Corp.*
    89,550       1,315,490  
Alliance Data Systems Corp.* (a)
    60,312       3,589,770  
Broadridge Financial Solutions, Inc.
    153,956       2,932,862  
Convergys Corp.*
    139,554       1,369,025  
CoreLogic, Inc.
    117,911       2,082,308  
DST Systems, Inc.
    41,910       1,514,627  
Gartner, Inc.*
    68,469       1,591,904  
Global Payments, Inc.
    92,336       3,373,957  
Hewitt Associates, Inc., Class A*
    93,832       3,233,451  
Lender Processing Services, Inc.
    107,408       3,362,944  
Mantech International Corp., Class A*
    25,168       1,071,402  
NeuStar, Inc., Class A*
    84,371       1,739,730  
SRA International, Inc., Class A*
    48,649       956,926  
                 
              28,134,396  
                 
 
 
Insurance 4.4%
American Financial Group, Inc.
    85,744       2,342,526  
Arthur J Gallagher & Co.
    117,118       2,855,337  
Brown & Brown, Inc.
    133,648       2,558,023  
Everest Re Group Ltd.
    66,710       4,717,731  
Fidelity National Financial, Inc., Class A
    260,181       3,379,751  
First American Financial Corp.
    117,261       1,486,870  
Hanover Insurance Group, Inc. (The)
    50,913       2,214,716  
HCC Insurance Holdings, Inc.
    129,830       3,214,591  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Mid Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Insurance (continued)
                 
Mercury General Corp.
    40,346     $ 1,671,938  
Old Republic International Corp.
    272,670       3,307,487  
Protective Life Corp.
    96,963       2,074,039  
Reinsurance Group of America, Inc.
    82,696       3,780,034  
StanCorp Financial Group, Inc.
    53,513       2,169,417  
Transatlantic Holdings, Inc.
    72,941       3,498,250  
Unitrin, Inc.
    56,474       1,445,734  
W.R. Berkley Corp.
    145,418       3,847,760  
                 
              44,564,204  
                 
 
 
Internet & Catalog Retail 0.5%
Netflix, Inc.*
    46,733       5,077,540  
                 
 
 
Internet Software & Services 0.9%
AOL, Inc.*
    120,695       2,509,249  
Digital River, Inc.*
    44,792       1,070,977  
Equinix, Inc.*
    51,292       4,165,936  
ValueClick, Inc.*
    92,551       989,370  
                 
              8,735,532  
                 
 
 
Life Sciences Tools & Services 1.9%
Affymetrix, Inc.*
    80,144       472,850  
Bio-Rad Laboratories, Inc., Class A*
    21,807       1,886,087  
Charles River Laboratories International, Inc.*
    74,646       2,553,640  
Covance, Inc.*
    73,110       3,752,005  
Furiex Pharmaceuticals, Inc.*
    34       342  
Mettler-Toledo International, Inc.*
    38,097       4,252,768  
Pharmaceutical Product Development, Inc.
    134,223       3,410,606  
Techne Corp.
    42,271       2,428,469  
                 
              18,756,767  
                 
 
 
Machinery 5.4%
AGCO Corp.*
    104,741       2,824,865  
Bucyrus International, Inc.
    91,613       4,347,037  
Crane Co.
    53,077       1,603,456  
Donaldson Co., Inc.
    87,283       3,722,620  
Gardner Denver, Inc.
    59,337       2,645,837  
Graco, Inc.
    68,068       1,918,837  
Harsco Corp.
    90,992       2,138,312  
IDEX Corp.
    91,766       2,621,755  
Joy Global, Inc.
    116,612       5,841,095  
Kennametal, Inc.
    92,382       2,349,274  
Lincoln Electric Holdings, Inc.
    48,304       2,463,021  
Nordson Corp.
    38,574       2,163,230  
Oshkosh Corp.*
    101,424       3,160,372  
Pentair, Inc.
    111,409       3,587,370  
SPX Corp.
    56,436       2,980,385  
Terex Corp.*(b)
    122,696       2,299,323  
Timken Co.
    90,023       2,339,698  
Trinity Industries, Inc.
    89,730       1,590,015  
Valmont Industries, Inc.
    22,633       1,644,514  
Wabtec Corp.
    53,950       2,152,065  
                 
              54,393,081  
                 
 
 
Marine 0.4%
Alexander & Baldwin, Inc.
    46,439       1,382,953  
Kirby Corp.*
    60,966       2,331,950  
                 
              3,714,903  
                 
 
 
Media 0.7%
DreamWorks Animation SKG, Inc., Class A*
    85,794       2,449,418  
Harte-Hanks, Inc.
    43,524       454,826  
John Wiley & Sons, Inc., Class A
    48,537       1,876,926  
Lamar Advertising Co., Class A*
    60,436       1,481,891  
Scholastic Corp.
    28,709       692,461  
                 
              6,955,522  
                 
 
 
Metals & Mining 1.0%
Carpenter Technology Corp.
    49,823       1,635,689  
Commercial Metals Co.
    127,902       1,690,865  
Reliance Steel & Aluminum Co.
    72,749       2,629,876  
Steel Dynamics, Inc.
    245,082       3,232,632  
Worthington Industries, Inc.
    69,278       890,915  
                 
              10,079,977  
                 
 
 
Multiline Retail 0.8%
99 Cents Only Stores*
    51,721       765,471  
Dollar Tree, Inc.*
    144,009       5,995,094  
Saks, Inc.* (a)
    180,798       1,372,257  
                 
              8,132,822  
                 
 
 
Multi-Utilities 1.9%
Alliant Energy Corp.
    125,334       3,978,101  
Black Hills Corp.
    44,003       1,252,765  
MDU Resources Group, Inc.
    212,825       3,837,235  
NSTAR
    121,000       4,235,000  
OGE Energy Corp.
    109,943       4,019,516  
Vectren Corp.
    91,942       2,175,348  
                 
              19,497,965  
                 
 
 
Office Electronics 0.2%
Zebra Technologies Corp., Class A*
    65,528       1,662,445  
                 
 
 
Oil Field Equipment & Services 0.2%
Superior Energy Services, Inc.*
    88,973       1,661,126  
                 
 
 
Oil, Gas & Consumable Fuels 3.8%
Arch Coal, Inc.
    184,062       3,646,268  
Bill Barrett Corp.*
    43,811       1,348,064  
Cimarex Energy Co.
    94,976       6,798,382  
Comstock Resources, Inc.*
    53,370       1,479,416  
Forest Oil Corp.*
    127,368       3,484,789  
Frontier Oil Corp.
    118,607       1,595,264  
Mariner Energy, Inc.*
    116,679       2,506,265  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Oil, Gas & Consumable Fuels (continued)
                 
Newfield Exploration Co.*
    150,517     $ 7,354,261  
Overseas Shipholding Group, Inc.
    29,970       1,110,089  
Patriot Coal Corp.*
    85,455       1,004,096  
Plains Exploration & Production Co.*
    157,924       3,254,814  
Quicksilver Resources, Inc.*
    134,137       1,475,507  
Southern Union Co.
    140,948       3,081,123  
                 
              38,138,338  
                 
 
 
Paper & Forest Products 0.1%
Louisiana-Pacific Corp.*
    143,620       960,818  
                 
 
 
Personal Products 0.5%
Alberto-Culver Co.
    96,971       2,626,945  
NBTY, Inc.*
    71,634       2,436,272  
                 
              5,063,217  
                 
 
 
Pharmaceuticals 1.3%
Endo Pharmaceuticals Holdings, Inc.*
    131,774       2,875,309  
Medicis Pharmaceutical Corp., Class A
    65,703       1,437,581  
Perrigo Co.
    91,138       5,383,522  
Valeant Pharmaceuticals International*
    71,180       3,722,002  
                 
              13,418,414  
                 
 
 
Professional Services 1.0%
Corporate Executive Board Co. (The)
    38,863       1,020,931  
FTI Consulting, Inc.*
    52,660       2,295,449  
Korn/Ferry International*
    51,616       717,463  
Manpower, Inc.
    92,747       4,004,816  
Navigant Consulting, Inc.*
    56,906       590,684  
Towers Watson & Co., Class A
    47,698       1,853,067  
                 
              10,482,410  
                 
 
 
Real Estate Investment Trusts (REITs) 7.8%
Alexandria Real Estate Equities, Inc.
    50,172       3,179,400  
AMB Property Corp.
    190,113       4,507,579  
BRE Properties, Inc.
    70,451       2,601,755  
Camden Property Trust
    74,441       3,040,915  
Corporate Office Properties Trust SBI MD
    66,147       2,497,711  
Cousins Properties, Inc.
    115,750       780,155  
Duke Realty Corp.
    279,510       3,172,438  
Equity One, Inc.
    39,946       623,158  
Essex Property Trust, Inc.
    34,031       3,319,384  
Federal Realty Investment Trust
    69,397       4,876,527  
Highwoods Properties, Inc.
    80,850       2,244,396  
Hospitality Properties Trust
    139,777       2,949,295  
Liberty Property Trust (a)
    127,755       3,685,732  
Macerich Co. (The)
    146,666       5,473,575  
Mack-Cali Realty Corp.
    89,716       2,667,257  
Nationwide Health Properties, Inc.
    135,428       4,844,260  
Omega Healthcare Investors, Inc.
    105,117       2,094,982  
Potlatch Corp.
    45,128       1,612,423  
Rayonier, Inc.
    90,527       3,984,998  
Realty Income Corp. (a)
    118,274       3,587,250  
Regency Centers Corp.
    92,401       3,178,594  
Senior Housing Properties Trust
    144,307       2,902,014  
SL Green Realty Corp.
    88,168       4,852,767  
UDR, Inc.
    183,331       3,507,122  
Weingarten Realty Investors
    118,374       2,255,025  
                 
              78,438,712  
                 
 
 
Real Estate Management & Development 0.3%
Jones Lang LaSalle, Inc.
    47,501       3,117,966  
                 
 
 
Road & Rail 1.3%
Con-way, Inc.
    60,918       1,828,758  
J.B. Hunt Transport Services, Inc.
    99,491       3,250,371  
Kansas City Southern*
    115,028       4,181,268  
Landstar System, Inc.
    56,928       2,219,623  
Werner Enterprises, Inc.
    49,792       1,089,947  
                 
              12,569,967  
                 
 
 
Semiconductors & Semiconductor Equipment 2.5%
Atmel Corp.*
    520,810       2,499,888  
Cree, Inc.*
    121,511       7,294,305  
Fairchild Semiconductor International, Inc.*
    140,853       1,184,574  
Integrated Device Technology, Inc.*
    184,928       915,393  
International Rectifier Corp.*
    80,440       1,496,988  
Intersil Corp., Class A
    139,373       1,687,807  
Lam Research Corp.*
    143,215       5,450,763  
RF Micro Devices, Inc.*
    303,525       1,186,783  
Semtech Corp.*
    69,645       1,140,089  
Silicon Laboratories, Inc.*
    52,035       2,110,540  
                 
              24,967,130  
                 
 
 
Software 4.3%
ACI Worldwide, Inc.*
    38,359       746,850  
Advent Software, Inc.* (a)
    17,747       833,399  
ANSYS, Inc.*
    102,319       4,151,082  
Cadence Design Systems, Inc.*
    304,506       1,763,090  
FactSet Research Systems, Inc.
    47,033       3,150,741  
Fair Isaac Corp.
    51,922       1,131,380  
Informatica Corp.*
    103,817       2,479,150  
Jack Henry & Associates, Inc.
    95,733       2,286,104  
Mentor Graphics Corp.*
    120,767       1,068,788  
MICROS Systems, Inc.*
    90,247       2,876,172  
Parametric Technology Corp.*
    131,659       2,063,096  
Quest Software, Inc.*
    70,159       1,265,668  
Rovi Corp.*
    115,562       4,380,955  
Solera Holdings, Inc.
    79,152       2,865,302  
Sybase, Inc.*
    98,245       6,352,522  
Synopsys, Inc.*
    167,276       3,491,050  
TIBCO Software, Inc.*
    188,709       2,275,831  
                 
              43,181,180  
                 
                 
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Mid Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Specialty Retail 3.9%
Aaron’s, Inc.
    92,271     $ 1,575,066  
Advance Auto Parts, Inc.
    98,965       4,966,064  
Aeropostale, Inc.*
    105,970       3,034,981  
American Eagle Outfitters, Inc.
    235,386       2,765,785  
AnnTaylor Stores Corp.*
    66,462       1,081,337  
Barnes & Noble, Inc. (a)
    44,890       579,081  
Chico’s FAS, Inc.
    201,642       1,992,223  
Coldwater Creek, Inc.*
    65,400       219,744  
Collective Brands, Inc.*
    72,643       1,147,759  
Dick’s Sporting Goods, Inc.*
    102,077       2,540,697  
Dress Barn, Inc.*
    67,628       1,610,223  
Foot Locker, Inc.
    177,320       2,237,778  
Guess?, Inc.
    65,933       2,059,747  
J Crew Group, Inc.*
    63,390       2,333,386  
PetSmart, Inc.
    133,993       4,042,569  
Rent-A-Center, Inc., Class A*
    74,454       1,508,438  
Tractor Supply Co.
    40,896       2,493,429  
Williams-Sonoma, Inc.
    121,472       3,014,935  
                 
              39,203,242  
                 
 
 
Textiles, Apparel & Luxury Goods 1.1%
Fossil, Inc.*
    54,624       1,895,453  
Hanesbrands, Inc.*
    108,079       2,600,381  
Phillips-Van Heusen Corp.
    64,276       2,974,050  
Timberland Co. (The), Class A*
    48,855       789,008  
Under Armour, Inc., Class A* (a)
    42,744       1,416,109  
Warnaco Group, Inc. (The)*
    50,376       1,820,589  
                 
              11,495,590  
                 
 
 
Thrifts & Mortgage Finance 1.5%
Astoria Financial Corp.
    92,960       1,279,130  
First Niagara Financial Group, Inc.
    236,734       2,966,277  
New York Community Bancorp, Inc.
    492,271       7,516,978  
NewAlliance Bancshares, Inc.
    120,061       1,345,884  
Washington Federal, Inc.
    127,396       2,061,267  
                 
              15,169,536  
                 
 
 
Tobacco 0.1%
Universal Corp.
    27,496       1,091,041  
                 
 
 
Trading Companies & Distributors 0.5%
GATX Corp.
    52,232       1,393,550  
MSC Industrial Direct Co., Class A
    50,129       2,539,535  
United Rentals, Inc.*
    68,103       634,720  
                 
              4,567,805  
                 
 
 
Water Utilities 0.3%
Aqua America, Inc. (a)
    154,384       2,729,509  
                 
 
 
Wireless Telecommunication Services 0.5%
Syniverse Holdings, Inc.*
    78,614       1,607,656  
Telephone & Data Systems, Inc.
    104,062       3,162,444  
                 
              4,770,100  
                 
         
Total Common Stocks (cost $1,127,827,254)
    997,884,203  
         
                 
                 
Mutual Fund 1.1%
                 
                 
Money Market Fund 1.1%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    11,170,962       11,170,962  
                 
                 
         
Total Mutual Fund (cost $11,170,962)
    11,170,962  
         
                 
                 
Repurchase Agreements 3.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
                 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10, repurchase price $5,000,004, collateralized by U.S. Government Agency Securities 4.00% – 8.50%, maturing 03/01/15 – 06/01/40; total market value of $5,100,179 (d)
  $ 5,000,000       5,000,000  
Barclays Capital, 0.01%, dated 06/30/10, due 07/01/10, repurchase price $25,000,007, collateralized by U.S. Government Treasury Securities 1.88%, maturing 06/30/15; total market value of $25,500,001 (d)
    25,000,000       25,000,000  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Repurchase Agreements (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
GOLDMAN SACHS & CO., 0.03%, dated 06/30/10, due 07/01/10, repurchase price $7,999,672, collateralized by U.S. Government Agency Securities 0.00% – 7.00%, maturing 02/20/17 – 06/20/40; total market value of $8,159,659 (d)
  $ 7,999,666     $ 7,999,666  
                 
         
Total Repurchase Agreements (cost $37,999,666)
    37,999,666  
         
         
Total Investments (cost $1,176,997,882) (e) — 104.1%
    1,047,054,831  
         
         
Liabilities in excess of other assets — (4.1%)
    (40,912,600 )
         
         
NET ASSETS — 100.0%
  $ 1,006,142,231  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $36,760,262.
 
(b) A security or a portion of a security was used to cover the margin requirement for futures contracts.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $37,999,666.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
Ltd. Limited
 
REIT Real Estate Investment Trust
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
 
                             
            Notional Value
   
Number of
 		          Covered by
 		  Unrealized
Contracts   Long Contracts   Expiration   Contracts   Depreciation
 
146
 
E-mini S&P MidCap
400 Futures
    09/17/10     $ 10,366,000     $ (635,019 )
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Mid
 		 
      Cap Index Fund  
       
Assets:
         
Investments, at value* (cost $1,138,998,216)
    $ 1,009,055,165  
Repurchase agreements, at value and cost
      37,999,666  
           
Total Investments
      1,047,054,831  
           
Dividends receivable
      961,186  
Security lending income receivable
      21,017  
Receivable for investments sold
      422,974  
Receivable for capital shares issued
      713,079  
Prepaid expenses and other assets
      10,827  
           
Total Assets
      1,049,183,914  
           
Liabilities:
         
Payable for investments purchased
      3,189,445  
Payable for capital shares redeemed
      1,431,440  
Payable for variation margin on futures contracts
      52,560  
Cash overdraft (Note 2)
      12,776  
Payable upon return of securities loaned (Note 2)
      37,999,666  
Accrued expenses and other payables:
         
Investment advisory fees
      178,019  
Fund administration fees
      28,961  
Distribution fees
      2,515  
Administrative servicing fees
      45,564  
Accounting and transfer agent fees
      7,431  
Custodian fees
      5,264  
Compliance program costs (Note 3)
      5,434  
Professional fees
      35,069  
Printing fees
      31,708  
Other
      15,831  
           
Total Liabilities
      43,041,683  
           
Net Assets
    $ 1,006,142,231  
           
Represented by:
         
Capital
    $ 1,164,986,795  
Accumulated undistributed net investment income
      1,007,377  
Accumulated net realized losses from investment and futures transactions
      (29,273,871 )
Net unrealized appreciation/(depreciation) from investments
      (129,943,051 )
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (635,019 )
           
Net Assets
    $ 1,006,142,231  
           
Net Assets:
         
Class I Shares
    $ 268,966,111  
Class II Shares
      11,604,229  
Class Y Shares
      725,571,891  
           
Total
    $ 1,006,142,231  
           
*  Includes value of securities on loan of $36,760,262 (Note 2).
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
12 Semiannual Report 2010

 

 
 
           
           
      NVIT Mid
 		 
      Cap Index Fund  
       
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      18,555,817  
Class II Shares
      803,923  
Class Y Shares
      50,061,426  
           
Total
      69,421,166  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 14.49  
Class II Shares
    $ 14.43  
Class Y Shares
    $ 14.49  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Mid
 		 
      Cap Index Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 7,742,505  
Income from securities lending (Note 2)
      203,103  
           
Total Income
      7,945,608  
           
EXPENSES:
         
Investment advisory fees
      1,193,974  
Fund administration fees
      191,205  
Distribution fees Class II Shares
      15,905  
Administrative servicing fees Class I Shares
      223,454  
Administrative servicing fees Class II Shares
      9,543  
Professional fees
      53,408  
Printing fees
      9,523  
Trustee fees
      19,538  
Custodian fees
      21,833  
Accounting and transfer agent fees
      8,960  
Compliance program costs (Note 3)
      2,383  
Recoupment fees
      18,507  
Other
      24,937  
           
Total expenses before earnings credit and expenses waived
      1,793,170  
Earnings credit (Note 4)
      (240 )
Expenses voluntarily waived by adviser (Note 3)
      (45,505 )
           
Net Expenses
      1,747,425  
           
NET INVESTMENT INCOME
      6,198,183  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      15,916,763  
Net realized gains from futures transactions (Note 2)
      1,052,904  
           
Net realized gains from investment and futures transactions
      16,969,667  
           
Net change in unrealized appreciation/(depreciation) from investments
      (36,039,902 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (954,228 )
           
Net change in unrealized appreciation/(depreciation) from investments and futures
      (36,994,130 )
           
Net realized/unrealized losses from investments and futures transactions
      (20,024,463 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (13,826,280 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Mid Cap Index Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 6,198,183       $ 12,119,635  
Net realized gains/(losses) from investment and futures transactions
      16,969,667         (22,259,624 )
Net change in unrealized appreciation/(depreciation) from investments and futures
      (36,994,130 )       319,061,480  
                     
Change in net assets resulting from operations
      (13,826,280 )       308,921,491  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (2,008,739 )       (2,471,277 )
Class II
      (69,688 )       (80,666 )
Class Y
      (5,804,381 )       (7,467,228 )
Net realized gains:
                   
Class I
      –         (7,853,444 )
Class II
      –         (346,467 )
Class Y
      –         (21,828,945 )
                     
Change in net assets from shareholder distributions
      (7,882,808 )       (40,048,027 )
                     
Change in net assets from capital transactions
      (25,914,763 )       (18,721,615 )
                     
Change in net assets
      (47,623,851 )       250,151,849  
                     
                     
Net Assets:
                   
Beginning of period
      1,053,766,082         803,614,233  
                     
End of period
    $ 1,006,142,231       $ 1,053,766,082  
                     
Accumulated undistributed net investment income at end of period
    $ 1,007,377       $ 2,692,002  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 18,987,344       $ 29,256,342  
Dividends reinvested
      2,008,739         10,324,721  
Cost of shares redeemed
      (43,129,830 )       (64,295,228 )
                     
Total Class I
      (22,133,747 )       (24,714,165 )
                     
Class II Shares
                   
Proceeds from shares issued
      1,018,275         1,423,447  
Dividends reinvested
      69,688         427,133  
Cost of shares redeemed
      (1,919,860 )       (3,512,553 )
                     
Total Class II
      (831,897 )       (1,661,973 )
                     
Class Y Shares
                   
Proceeds from shares issued
      28,047,106         132,500,886  
Dividends reinvested
      5,804,381         29,296,173  
Cost of shares redeemed
      (36,800,606 )       (154,142,536 )
                     
Total Class Y
      (2,949,119 )       7,654,523  
                     
Change in net assets from capital transactions
    $ (25,914,763 )     $ (18,721,615 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 15

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Mid Cap Index Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      1,206,149         2,336,952  
Reinvested
      125,754         747,398  
Redeemed
      (2,768,058 )       (5,410,183 )
                     
Total Class I Shares
      (1,436,155 )       (2,325,833 )
                     
Class II Shares
                   
Issued
      64,359         118,113  
Reinvested
      4,376         30,918  
Redeemed
      (123,261 )       (297,594 )
                     
Total Class II Shares
      (54,526 )       (148,563 )
                     
Class Y Shares
                   
Issued
      1,804,023         11,717,697  
Reinvested
      363,858         2,125,078  
Redeemed
      (2,369,751 )       (11,721,021 )
                     
Total Class Y Shares
      (201,870 )       2,121,754  
                     
Total change in shares
      (1,692,551 )       (352,642 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Mid Cap Index Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .82       0 .08       (0 .31)       (0 .23)       (0 .10)       –          (0 .10)     $ 14 .49       (1 .59%)     $ 268,966,111         0 .43%       1 .04%       0 .43%       5 .01%    
Year Ended December 31, 2009 (e)
  $ 11 .25       0 .15       3 .94       4 .09       (0 .12)       (0 .40)       (0 .52)     $ 14 .82       36 .76%     $ 296,275,777         0 .45%       1 .23%       0 .45%       22 .52%    
Year Ended December 31, 2008
  $ 19 .18       0 .21       (6 .83)       (6 .62)       (0 .21)       (1 .10)       (1 .31)     $ 11 .25       (36 .46%)     $ 250,979,592         0 .44%       1 .22%       0 .44%       24 .70%    
Year Ended December 31, 2007
  $ 18 .59       0 .27       1 .16       1 .43       (0 .27)       (0 .57)       (0 .84)     $ 19 .18       7 .56%     $ 479,738,690         0 .46%       1 .34%       0 .47%       23 .90%    
Year Ended December 31, 2006
  $ 17 .36       0 .21       1 .48       1 .69       (0 .21)       (0 .25)       (0 .46)     $ 18 .59       9 .89%     $ 548,012,004         0 .50%       1 .17%       0 .50%(f)       13 .76%    
Year Ended December 31, 2005
  $ 16 .61       0 .16       1 .82       1 .98       (0 .18)       (1 .05)       (1 .23)     $ 17 .36       12 .10%     $ 576,338,849         0 .55%       0 .93%       0 .55%(f)       19 .32%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .76       0 .06       (0 .31)       (0 .25)       (0 .08)       –          (0 .08)     $ 14 .43       (1 .71%)     $ 11,604,229         0 .68%       0 .79%       0 .68%       5 .01%    
Year Ended December 31, 2009 (e)
  $ 11 .20       0 .12       3 .93       4 .05       (0 .09)       (0 .40)       (0 .49)     $ 14 .76       36 .50%     $ 12,669,285         0 .70%       0 .99%       0 .70%       22 .52%    
Year Ended December 31, 2008
  $ 19 .11       0 .18       (6 .81)       (6 .63)       (0 .18)       (1 .10)       (1 .28)     $ 11 .20       (36 .61%)     $ 11,279,926         0 .64%       1 .02%       0 .64%       24 .70%    
Year Ended December 31, 2007
  $ 18 .53       0 .23       1 .16       1 .39       (0 .24)       (0 .57)       (0 .81)     $ 19 .11       7 .37%     $ 20,694,631         0 .62%       1 .17%       0 .62%       23 .90%    
Year Ended December 31, 2006
  $ 17 .30       0 .19       1 .47       1 .66       (0 .18)       (0 .25)       (0 .43)     $ 18 .53       9 .74%     $ 21,522,029         0 .66%       1 .01%       0 .66%(f)       13 .76%    
Year Ended December 31, 2005
  $ 16 .56       0 .13       1 .81       1 .94       (0 .15)       (1 .05)       (1 .20)     $ 17 .30       11 .90%     $ 21,512,149         0 .72%       0 .76%       0 .72%(f)       19 .32%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .82       0 .09       (0 .30)       (0 .21)       (0 .12)       –          (0 .12)     $ 14 .49       (1 .51%)     $ 725,571,891         0 .28%       1 .19%       0 .28%       5 .01%    
Year Ended December 31, 2009 (e)
  $ 11 .25       0 .17       3 .94       4 .11       (0 .14)       (0 .40)       (0 .54)     $ 14 .82       36 .96%     $ 744,821,020         0 .30%       1 .34%       0 .30%       22 .52%    
Year Ended December 31, 2008
  $ 19 .18       0 .23       (6 .83)       (6 .60)       (0 .23)       (1 .10)       (1 .33)     $ 11 .25       (36 .38%)     $ 541,354,715         0 .31%       1 .36%       0 .31%       24 .70%    
Year Ended December 31, 2007
  $ 18 .59       0 .03       1 .18       1 .46       (0 .30)       (0 .57)       (0 .87)     $ 19 .18       7 .74%     $ 861,468,698         0 .29%       1 .28%       0 .29%       23 .90%    
Period Ended December 31, 2006 (g)
  $ 18 .88       0 .16       (0 .01)       0 .15       (0 .19)       (0 .25)       (0 .44)     $ 18 .59       0 .94%     $ 153,172,267         0 .31%       1 .38%       0 .31%(f)       13 .76%    
                                                                                                                                               
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  There were no fee reductions during the period.
(g)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 17

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Mid Cap Index Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) or other insurance companies and other series of the Trust that operate as funds-of-funds, such as the NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
18 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of the securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
  $ 997,884,203     $ —     $ —     $ 997,884,203      
 
 
Mutual Fund
    11,170,962       —       —       11,170,962      
 
 
Repurchase Agreements
    —       37,999,666       —       37,999,666      
 
 
Total Assets
    1,009,055,165       37,999,666       —       1,047,054,831      
 
 
Liabilities:
                                   
Future Contracts
    (635,019 )     —       —       (635,019 )    
 
 
Total Liabilities
    (635,019 )     —       —       (635,019 )    
 
 
Total
  $ 1,008,420,146     $ 37,999,666     $ —     $ 1,046,419,812      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $12,776 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
 
 
20 Semiannual Report 2010

 

 
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
             
    Statement of Assets & Liabilities Location   Fair Value
 
Liabilities:
           
Futures — Equity contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ (635,019 )
 
 
Total
      $ (635,019 )
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ 1,052,904      
 
 
    Total   $ 1,052,904      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (954,228 )    
 
 
    Total   $ (954,228 )    
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 36,760,262     $ 37,999,666      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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
 
 
 
22 Semiannual Report 2010

 

 
 
technical merits of the position. If such a tax position taken by the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected BlackRock Investment Management LLC (“BlackRock”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of BlackRock.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1.5 billion     0.22%      
 
 
    $1.5 billion up to $3 billion     0.21%      
 
 
    $3 billion and more     0.20%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $198,730 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.32% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement.
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                             
    Fiscal Year
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ —     $ —     $ 37,041     $ —     $ 37,041      
 
 
Amounts designated as “—”, are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
In addition, NFA voluntarily agreed to waive from its Investment Advisory Fee an amount equal to $45,505 for which NFA shall not be entitled to later seek recoupment.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement are calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, and the NVIT Investor Destinations Balanced Funds (collectively, the “Investor Destinations Funds”) and NVIT Cardinal Aggressive, NVIT Cardinal
 
 
 
24 Semiannual Report 2010

 

 
 
Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Fund (collectively, the “Cardinal Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds and the Cardinal Funds do not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $232,997 in Administrative Services fees from the Fund.
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $2,383.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $53,354,344 and sales of $72,662,186 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with REITs and Real Estate Investments. Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                             
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$1,192,112,708
  $ 90,265,035     $ (235,322,912 )   $ (145,057,877 )    
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
26 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 27

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Mid Cap Index Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, LLC, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for each of the one- and three-year periods ended September 30, 2009, the Fund’s performance for Class Y shares was in second quintile of its Peer Group. The Trustees also noted that, for each period, the Fund had slightly underperformed its benchmark, the S&P MidCap 400® Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund had achieved its objective of tracking the performance of the S&P MidCap 400® Index.
 
The Trustees then noted that the Fund’s contractual advisory fee and actual advisory fee for Class Y shares were in the first quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class Y shares were in the second quintile of its Peer Group, and that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
28 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 31

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
32 Semiannual Report 2010

 

 
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NVIT S&P 500 Index Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
13
   
Statement of Assets and Liabilities
       
15
   
Statement of Operations
       
16
   
Statements of Changes in Net Assets
       
17
   
Financial Highlights
       
18
   
Notes to Financial Statements
       
27
   
Supplemental Information
       
29
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-S&P (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT S&P 500 Index Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT S&P 500 Index Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class IV Shares
    Actual       1,000.00       932.70       1.39       0.29  
      Hypothetical b     1,000.00       1,023.36       1.45       0.29  
 
 
Class Y Shares
    Actual       1,000.00       933.10       0.91       0.19  
      Hypothetical b     1,000.00       1,023.85       0.95       0.19  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT S&P 500 Index Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    99 .4%
Mutual Fund
    0 .6%
Repurchase Agreement
    0 .4%
Liabilities in excess of other assets
    (0 .4)%
         
      100 .0%
         
         
Top Industries †    
 
Oil, Gas & Consumable Fuels
    8 .9%
Pharmaceuticals
    6 .1%
Computers & Peripherals
    4 .5%
Diversified Financial Services
    4 .5%
Insurance
    3 .9%
Software
    3 .7%
Information Technology Services
    3 .1%
Media
    3 .1%
Commercial Banks
    3 .1%
Aerospace & Defense
    2 .8%
Other Industries *
    56 .3%
         
      100 .0%
         
         
Top Holdings †    
 
Exxon Mobil Corp. 
    3 .1%
Apple, Inc. 
    2 .4%
Microsoft Corp. 
    1 .9%
Procter & Gamble Co. (The)
    1 .8%
Johnson & Johnson
    1 .7%
International Business Machines Corp. 
    1 .7%
General Electric Co. 
    1 .6%
JPMorgan Chase & Co. 
    1 .6%
Bank of America Corp. 
    1 .5%
AT&T, Inc. 
    1 .5%
Other Holdings *
    81 .2%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT S&P 500 Index Fund
 
                 
                 
Common Stocks 99.4%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 2.8%
Boeing Co. (The)
    154,306     $ 9,682,702  
General Dynamics Corp.
    78,423       4,592,451  
Goodrich Corp.
    25,461       1,686,791  
Honeywell International, Inc.
    155,699       6,076,932  
ITT Corp.
    37,179       1,670,081  
L-3 Communications Holdings, Inc.
    23,536       1,667,290  
Lockheed Martin Corp.
    63,397       4,723,076  
Northrop Grumman Corp.
    61,579       3,352,361  
Precision Castparts Corp.
    28,832       2,967,389  
Raytheon Co.
    77,386       3,744,709  
Rockwell Collins, Inc.
    32,017       1,701,063  
United Technologies Corp.
    190,281       12,351,140  
                 
              54,215,985  
                 
 
 
Air Freight & Logistics 1.0%
CH Robinson Worldwide, Inc.
    33,916       1,887,765  
Expeditors International of Washington, Inc.
    43,125       1,488,244  
FedEx Corp.
    63,619       4,460,328  
United Parcel Service, Inc., Class B
    201,751       11,477,614  
                 
              19,313,951  
                 
 
 
Airlines 0.1%
Southwest Airlines Co.
    151,680       1,685,165  
                 
 
 
Auto Components 0.2%
Goodyear Tire & Rubber Co. (The)*
    49,443       491,464  
Johnson Controls, Inc.
    136,620       3,670,979  
                 
              4,162,443  
                 
 
 
Automobiles 0.4%
Ford Motor Co.*
    692,394       6,979,332  
Harley-Davidson, Inc.
    47,575       1,057,592  
                 
              8,036,924  
                 
 
 
Beverages 2.6%
Brown-Forman Corp., Class B
    22,098       1,264,669  
Coca-Cola Co. (The)
    469,193       23,515,953  
Coca-Cola Enterprises, Inc.
    65,907       1,704,355  
Constellation Brands, Inc., Class A*
    40,651       634,969  
Dr. Pepper Snapple Group, Inc.
    49,981       1,868,790  
Molson Coors Brewing Co., Class B
    32,182       1,363,229  
PepsiCo, Inc.
    328,079       19,996,415  
                 
              50,348,380  
                 
 
 
Biotechnology 1.4%
Amgen, Inc.*
    194,875       10,250,425  
Biogen Idec, Inc.*
    54,859       2,603,060  
Celgene Corp.*
    93,650       4,759,293  
Cephalon, Inc.*
    15,300       868,275  
Genzyme Corp.*
    54,087       2,745,997  
Gilead Sciences, Inc.*
    181,037       6,205,948  
                 
              27,432,998  
                 
 
 
Building Products 0.0%†
Masco Corp.
    73,460       790,430  
                 
 
 
Capital Markets 2.4%
Ameriprise Financial, Inc.
    51,938       1,876,520  
Bank of New York Mellon Corp. (The)
    246,481       6,085,616  
Charles Schwab Corp. (The)
    198,642       2,816,743  
E*Trade Financial Corp.*
    39,782       470,223  
Federated Investors, Inc., Class B (a)
    18,033       373,463  
Franklin Resources, Inc.
    30,183       2,601,473  
Goldman Sachs Group, Inc. (The)
    104,725       13,747,251  
Invesco Ltd.
    94,673       1,593,347  
Janus Capital Group, Inc.
    37,033       328,853  
Legg Mason, Inc.
    33,197       930,512  
Morgan Stanley
    284,085       6,593,613  
Northern Trust Corp.
    49,183       2,296,846  
State Street Corp.
    101,878       3,445,514  
T. Rowe Price Group, Inc.
    52,714       2,339,974  
                 
              45,499,948  
                 
 
 
Chemicals 1.9%
Air Products & Chemicals, Inc.
    43,161       2,797,264  
Airgas, Inc.
    16,800       1,044,960  
CF Industries Holdings, Inc.
    14,345       910,190  
Dow Chemical Co. (The)
    234,677       5,566,538  
E.I. du Pont de Nemours & Co.
    184,129       6,369,022  
Eastman Chemical Co.
    14,906       795,384  
Ecolab, Inc.
    48,090       2,159,722  
FMC Corp.
    14,800       849,964  
International Flavors & Fragrances, Inc.
    16,026       679,823  
Monsanto Co.
    110,930       5,127,185  
PPG Industries, Inc.
    33,762       2,039,562  
Praxair, Inc.
    62,282       4,732,809  
Sherwin-Williams Co. (The)
    18,756       1,297,728  
Sigma-Aldrich Corp.
    24,909       1,241,216  
                 
              35,611,367  
                 
 
 
Commercial Banks 3.1%
BB&T Corp.
    140,677       3,701,212  
Comerica, Inc.
    35,714       1,315,347  
Fifth Third Bancorp
    161,835       1,988,952  
First Horizon National Corp.*
    47,212       540,579  
Huntington Bancshares, Inc.
    144,611       801,145  
KeyCorp
    178,400       1,371,896  
M&T Bank Corp. (a)
    16,960       1,440,752  
Marshall & Ilsley Corp.
    106,518       764,799  
PNC Financial Services Group, Inc.
    106,901       6,039,907  
Regions Financial Corp.
    243,031       1,599,144  
SunTrust Banks, Inc.
    101,611       2,367,536  
U.S. Bancorp
    389,649       8,708,655  
Wells Fargo & Co.
    1,059,659       27,127,270  
Zions Bancorporation
    32,307       696,862  
                 
              58,464,056  
                 
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT S&P 500 Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Commercial Services & Supplies 0.5%
Avery Dennison Corp.
    22,854     $ 734,299  
Cintas Corp.
    26,931       645,536  
Iron Mountain, Inc.
    37,003       831,088  
Pitney Bowes, Inc.
    42,425       931,653  
Republic Services, Inc.
    66,099       1,965,123  
RR Donnelley & Sons Co.
    42,033       688,080  
Stericycle, Inc.*
    17,229       1,129,878  
Waste Management, Inc.
    98,652       3,086,821  
                 
              10,012,478  
                 
 
 
Communications Equipment 2.3%
Cisco Systems, Inc.*
    1,163,228       24,788,389  
Harris Corp.
    26,670       1,110,806  
JDS Uniphase Corp.*
    45,393       446,667  
Juniper Networks, Inc.*
    106,916       2,439,823  
Motorola, Inc.*
    471,891       3,076,729  
QUALCOMM, Inc.
    333,705       10,958,872  
Tellabs, Inc.
    78,885       504,075  
                 
              43,325,361  
                 
 
 
Computers & Peripherals 4.6%
Apple, Inc.*
    185,084       46,554,178  
Dell, Inc.*
    350,110       4,222,327  
EMC Corp.*
    417,921       7,647,954  
Hewlett-Packard Co.
    474,912       20,554,191  
Lexmark International, Inc., Class A*
    15,977       527,720  
NetApp, Inc.*
    69,938       2,609,387  
QLogic Corp.*
    23,453       389,789  
SanDisk Corp.*
    46,652       1,962,650  
Teradata Corp.*
    34,010       1,036,625  
Western Digital Corp.*
    46,419       1,399,997  
                 
              86,904,818  
                 
 
 
Construction & Engineering 0.2%
Fluor Corp.
    36,266       1,541,305  
Jacobs Engineering Group, Inc.*
    25,400       925,576  
Quanta Services, Inc.*
    42,500       877,625  
                 
              3,344,506  
                 
 
 
Construction Materials 0.1%
Vulcan Materials Co.
    25,887       1,134,627  
                 
Consumer Finance 0.8%
American Express Co.
    244,207       9,695,018  
Capital One Financial Corp.
    92,706       3,736,052  
Discover Financial Services
    110,932       1,550,829  
SLM Corp.*
    98,295       1,021,285  
                 
              16,003,184  
                 
 
 
Containers & Packaging 0.2%
Ball Corp.
    19,200       1,014,336  
Bemis Co., Inc.
    21,944       592,488  
Owens-Illinois, Inc.*
    34,500       912,525  
Pactiv Corp.*
    27,083       754,261  
Sealed Air Corp.
    32,487       640,644  
                 
              3,914,254  
                 
 
 
Distributors 0.1%
Genuine Parts Co.
    32,351       1,276,247  
                 
 
 
Diversified Consumer Services 0.2%
Apollo Group, Inc., Class A*
    26,047       1,106,216  
DeVry, Inc.
    12,600       661,374  
H&R Block, Inc.
    68,650       1,077,119  
                 
              2,844,709  
                 
 
 
Diversified Financial Services 4.5%
Bank of America Corp.
    2,040,575       29,323,063  
Citigroup, Inc.*
    4,596,654       17,283,419  
CME Group, Inc.
    13,363       3,762,353  
IntercontinentalExchange, Inc.*
    14,991       1,694,433  
JPMorgan Chase & Co.
    809,209       29,625,141  
Leucadia National Corp.*
    38,826       757,495  
Moody’s Corp. (a)
    40,175       800,286  
NASDAQ OMX Group, Inc. (The)*
    30,100       535,178  
NYSE Euronext
    53,200       1,469,916  
                 
              85,251,284  
                 
 
 
Diversified Telecommunication Services 2.6%
AT&T, Inc.
    1,201,801       29,071,566  
CenturyLink, Inc.
    60,893       2,028,346  
Frontier Communications Corp. (a)
    63,837       453,881  
Qwest Communications International, Inc.
    303,103       1,591,291  
Verizon Communications, Inc.
    576,175       16,144,423  
Windstream Corp.
    97,653       1,031,216  
                 
              50,320,723  
                 
 
 
Electric Utilities 1.9%
Allegheny Energy, Inc.
    34,626       716,066  
American Electric Power Co., Inc.
    97,247       3,141,078  
Duke Energy Corp.
    266,842       4,269,472  
Edison International
    66,320       2,103,670  
Entergy Corp.
    38,493       2,756,869  
Exelon Corp.
    134,159       5,094,017  
FirstEnergy Corp.
    62,044       2,185,810  
NextEra Energy, Inc.
    84,248       4,107,933  
Northeast Utilities
    35,536       905,457  
Pepco Holdings, Inc.
    45,458       712,781  
Pinnacle West Capital Corp.
    21,867       795,084  
PPL Corp.
    95,300       2,377,735  
Progress Energy, Inc.
    58,241       2,284,212  
Southern Co.
    167,527       5,575,299  
                 
              37,025,483  
                 
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Electrical Equipment 0.5%
Emerson Electric Co.
    153,156     $ 6,691,385  
Rockwell Automation, Inc.
    29,152       1,431,072  
Roper Industries, Inc.
    18,981       1,062,177  
                 
              9,184,634  
                 
 
 
Electronic Equipment, Instruments & Components 0.6%
Agilent Technologies, Inc.*
    70,665       2,009,006  
Amphenol Corp., Class A
    35,100       1,378,728  
Corning, Inc.
    316,915       5,118,177  
FLIR Systems, Inc.*
    31,400       913,426  
Jabil Circuit, Inc.
    38,997       518,660  
Molex, Inc.
    27,270       497,405  
                 
              10,435,402  
                 
 
 
Energy Equipment & Services 1.7%
Baker Hughes, Inc.
    87,342       3,630,807  
Cameron International Corp.*
    49,706       1,616,439  
Diamond Offshore Drilling, Inc. (a)
    14,200       883,098  
FMC Technologies, Inc.*
    24,793       1,305,599  
Halliburton Co.
    184,044       4,518,280  
Helmerich & Payne, Inc.
    21,543       786,750  
Nabors Industries Ltd.*
    57,980       1,021,608  
National Oilwell Varco, Inc.
    85,126       2,815,117  
Rowan Cos., Inc.*
    23,272       510,588  
Schlumberger Ltd.
    243,141       13,455,423  
Smith International, Inc.
    50,608       1,905,391  
                 
              32,449,100  
                 
 
 
Food & Staples Retailing 2.5%
Costco Wholesale Corp.
    89,586       4,912,000  
CVS Caremark Corp.
    276,848       8,117,183  
Kroger Co. (The)
    132,239       2,603,786  
Safeway, Inc.
    79,191       1,556,895  
SUPERVALU, Inc.
    43,337       469,773  
Sysco Corp.
    120,512       3,443,028  
Walgreen Co.
    200,262       5,346,996  
Wal-Mart Stores, Inc.
    422,611       20,314,911  
Whole Foods Market, Inc.*
    34,705       1,250,074  
                 
              48,014,646  
                 
                 
                 
Food Products 1.9%
Archer-Daniels-Midland Co.
    130,708       3,374,881  
Campbell Soup Co.
    38,434       1,377,090  
ConAgra Foods, Inc.
    90,206       2,103,604  
Dean Foods Co.*
    37,252       375,128  
General Mills, Inc.
    134,802       4,788,167  
H.J. Heinz Co.
    64,336       2,780,602  
Hershey Co. (The)
    33,846       1,622,239  
Hormel Foods Corp.
    14,300       578,864  
JM Smucker Co. (The)
    24,219       1,458,468  
Kellogg Co.
    51,830       2,607,049  
Kraft Foods, Inc., Class A
    354,441       9,924,348  
McCormick & Co., Inc., Non-Voting Shares
    26,775       1,016,379  
Mead Johnson Nutrition Co.
    41,600       2,084,992  
Sara Lee Corp.
    134,634       1,898,339  
Tyson Foods, Inc., Class A
    62,424       1,023,129  
                 
              37,013,279  
                 
 
 
Gas Utilities 0.2%
EQT Corp.
    29,421       1,063,275  
Nicor, Inc.
    9,281       375,880  
Oneok, Inc.
    21,532       931,259  
Questar Corp.
    35,649       1,621,673  
                 
              3,992,087  
                 
 
 
Health Care Equipment & Supplies 1.8%
Baxter International, Inc.
    121,338       4,931,176  
Becton, Dickinson and Co.
    47,942       3,241,838  
Boston Scientific Corp.*
    307,123       1,781,313  
C.R. Bard, Inc.
    19,489       1,510,982  
CareFusion Corp.*
    36,250       822,875  
DENTSPLY International, Inc.
    30,042       898,556  
Hospira, Inc.*
    33,619       1,931,412  
Intuitive Surgical, Inc.*
    7,947       2,508,232  
Medtronic, Inc.
    224,504       8,142,760  
St. Jude Medical, Inc.*
    66,227       2,390,133  
Stryker Corp.
    57,496       2,878,250  
Varian Medical Systems, Inc.*
    25,267       1,320,959  
Zimmer Holdings, Inc.*
    41,258       2,229,995  
                 
              34,588,481  
                 
 
 
Health Care Providers & Services 2.1%
Aetna, Inc.
    87,701       2,313,552  
AmerisourceBergen Corp.
    57,507       1,825,847  
Cardinal Health, Inc.
    73,556       2,472,217  
CIGNA Corp.
    55,948       1,737,745  
Coventry Health Care, Inc.*
    30,158       533,193  
DaVita, Inc.*
    21,034       1,313,363  
Express Scripts, Inc.*
    111,929       5,262,902  
Humana, Inc.*
    34,714       1,585,388  
Laboratory Corp of America Holdings*
    21,328       1,607,065  
McKesson Corp.
    55,109       3,701,121  
Medco Health Solutions, Inc.*
    92,939       5,119,080  
Patterson Cos., Inc.
    19,075       544,210  
Quest Diagnostics, Inc.
    30,615       1,523,709  
Tenet Healthcare Corp.*
    88,898       385,817  
UnitedHealth Group, Inc.
    231,237       6,567,131  
WellPoint, Inc.*
    86,904       4,252,213  
                 
              40,744,553  
                 
 
 
Health Care Technology 0.1%
Cerner Corp.*
    13,902       1,055,023  
                 
 
 
Hotels, Restaurants & Leisure 1.7%
Carnival Corp.
    88,291       2,669,920  
Darden Restaurants, Inc.
    28,612       1,111,576  
International Game Technology
    60,278       946,365  
Marriott International, Inc., Class A
    51,864       1,552,808  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT S&P 500 Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Hotels, Restaurants & Leisure (continued)
                 
McDonald’s Corp.
    218,766     $ 14,410,116  
Starbucks Corp.
    151,179       3,673,650  
Starwood Hotels & Resorts Worldwide, Inc.
    38,406       1,591,161  
Wyndham Worldwide Corp.
    36,587       736,862  
Wynn Resorts Ltd.
    14,100       1,075,407  
Yum! Brands, Inc.
    95,433       3,725,704  
                 
              31,493,569  
                 
 
 
Household Durables 0.4%
D.R. Horton, Inc.
    56,458       554,982  
Fortune Brands, Inc.
    30,726       1,203,845  
Harman International Industries, Inc.*
    13,932       416,427  
Leggett & Platt, Inc.
    30,263       607,076  
Lennar Corp., Class A
    32,930       458,056  
Newell Rubbermaid, Inc.
    56,795       831,479  
Pulte Group, Inc.*
    64,503       534,085  
Stanley Black & Decker, Inc.
    32,504       1,642,102  
Whirlpool Corp.
    15,228       1,337,323  
                 
              7,585,375  
                 
 
 
Household Products 2.6%
Clorox Co.
    28,557       1,775,103  
Colgate-Palmolive Co.
    99,774       7,858,200  
Kimberly-Clark Corp.
    84,636       5,131,481  
Procter & Gamble Co. (The)
    585,865       35,140,183  
                 
              49,904,967  
                 
 
 
Independent Power Producers & Energy Traders 0.2%
AES Corp. (The)*
    136,248       1,258,931  
Constellation Energy Group, Inc.
    40,976       1,321,476  
NRG Energy, Inc.*
    53,580       1,136,432  
                 
              3,716,839  
                 
Industrial Conglomerates 2.3%
3M Co.
    144,973       11,451,417  
General Electric Co.
    2,171,497       31,312,987  
Textron, Inc.
    55,430       940,647  
                 
              43,705,051  
                 
 
 
Information Technology Services 3.1%
Automatic Data Processing, Inc.
    102,655       4,132,890  
Cognizant Technology Solutions Corp., Class A*
    60,780       3,042,647  
Computer Sciences Corp.
    31,147       1,409,402  
Fidelity National Information Services, Inc.
    67,077       1,799,005  
Fiserv, Inc.*
    31,039       1,417,241  
International Business Machines Corp.
    260,871       32,212,351  
MasterCard, Inc., Class A
    19,647       3,920,166  
Paychex, Inc.
    65,454       1,699,840  
SAIC, Inc.*
    59,900       1,002,726  
Total System Services, Inc.
    39,674       539,566  
Visa, Inc., Class A
    91,978       6,507,444  
Western Union Co. (The)
    138,980       2,072,192  
                 
              59,755,470  
                 
 
 
Insurance 4.0%
Aflac, Inc.
    95,402       4,070,803  
Allstate Corp. (The)
    109,146       3,135,765  
American International Group, Inc.*(a)
    27,538       948,409  
Aon Corp.
    54,628       2,027,791  
Assurant, Inc.
    22,749       789,390  
Berkshire Hathaway, Inc., Class B*
    336,666       26,828,914  
Chubb Corp.
    66,832       3,342,268  
Cincinnati Financial Corp.
    33,290       861,212  
Genworth Financial, Inc., Class A*
    99,656       1,302,504  
Hartford Financial Services Group, Inc.
    90,322       1,998,826  
Lincoln National Corp.
    61,416       1,491,795  
Loews Corp.
    72,222       2,405,715  
Marsh & McLennan Cos., Inc.
    109,797       2,475,922  
MetLife, Inc.
    166,745       6,296,291  
Principal Financial Group, Inc.
    65,223       1,528,827  
Progressive Corp. (The)
    136,647       2,558,032  
Prudential Financial, Inc.
    94,705       5,081,870  
Torchmark Corp.
    16,891       836,274  
Travelers Cos., Inc. (The)
    100,768       4,962,824  
Unum Group
    67,907       1,473,582  
XL Capital Ltd., Class A
    70,036       1,121,276  
                 
              75,538,290  
                 
 
 
Internet & Catalog Retail 0.5%
Amazon.com, Inc.*
    69,756       7,621,540  
Expedia, Inc.
    43,100       809,418  
Priceline.com, Inc.*
    9,616       1,697,609  
                 
              10,128,567  
                 
 
 
Internet Software & Services 1.7%
Akamai Technologies, Inc.*
    35,011       1,420,396  
eBay, Inc.*
    230,993       4,529,773  
Google, Inc., Class A*
    49,227       21,903,554  
Monster Worldwide, Inc.*
    25,788       300,430  
VeriSign, Inc.*
    37,426       993,660  
Yahoo!, Inc.*
    242,060       3,347,690  
                 
              32,495,503  
                 
 
 
Leisure Equipment & Products 0.2%
Eastman Kodak Co.*
    55,518       240,948  
Hasbro, Inc.
    26,464       1,087,670  
Mattel, Inc.
    73,980       1,565,417  
                 
              2,894,035  
                 
 
 
Life Sciences Tools & Services 0.5%
Life Technologies Corp.*
    37,010       1,748,722  
Millipore Corp.*
    11,424       1,218,370  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Life Sciences Tools & Services (continued)
                 
PerkinElmer, Inc.
    23,872     $ 493,434  
Thermo Fisher Scientific, Inc.*
    83,263       4,084,050  
Waters Corp.*
    19,078       1,234,347  
                 
              8,778,923  
                 
 
 
Machinery 1.7%
Caterpillar, Inc.
    127,593       7,664,512  
Cummins, Inc.
    40,970       2,668,376  
Danaher Corp.
    106,816       3,965,010  
Deere & Co.
    86,209       4,800,117  
Dover Corp.
    37,896       1,583,674  
Eaton Corp.
    33,999       2,224,895  
Flowserve Corp.
    11,400       966,720  
Illinois Tool Works, Inc.
    78,669       3,247,456  
PACCAR, Inc.
    74,092       2,954,048  
Pall Corp.
    23,947       823,058  
Parker Hannifin Corp.
    32,675       1,812,155  
Snap-on, Inc.
    11,856       485,029  
                 
              33,195,050  
                 
 
 
Media 3.1%
CBS Corp. Non-Voting, Class B
    137,741       1,780,991  
Comcast Corp., Class A
    574,008       9,970,519  
DIRECTV Group, Inc. (The), Class A*
    184,879       6,271,096  
Discovery Communications, Inc., Class A*
    57,719       2,061,145  
Gannett Co., Inc.
    48,318       650,360  
Interpublic Group of Cos., Inc. (The)*
    99,281       707,874  
McGraw-Hill Cos., Inc. (The)
    64,124       1,804,449  
Meredith Corp.
    7,537       234,627  
New York Times Co. (The), Class A*
    23,563       203,820  
News Corp., Class A
    458,080       5,478,637  
Omnicom Group Inc.
    63,185       2,167,246  
Scripps Networks Interactive, Inc., Class A
    18,122       731,041  
Time Warner Cable, Inc.
    71,887       3,743,875  
Time Warner, Inc.
    231,855       6,702,928  
Viacom, Inc., Class B
    123,504       3,874,320  
Walt Disney Co. (The)
    398,229       12,544,214  
Washington Post Co. (The), Class B
    1,220       500,786  
                 
              59,427,928  
                 
 
 
Metals & Mining 1.1%
AK Steel Holding Corp.
    22,446       267,556  
Alcoa, Inc.
    207,083       2,083,255  
Allegheny Technologies, Inc.
    20,025       884,905  
Cliffs Natural Resources Inc.
    27,428       1,293,504  
Freeport-McMoRan Copper & Gold, Inc.
    95,859       5,668,143  
Newmont Mining Corp.
    99,812       6,162,393  
Nucor Corp.
    64,078       2,452,906  
Titanium Metals Corp.*
    17,200       302,548  
United States Steel Corp.
    29,016       1,118,567  
                 
              20,233,777  
                 
 
 
Multiline Retail 0.9%
Big Lots, Inc.*
    17,048       547,070  
Family Dollar Stores, Inc.
    28,141       1,060,634  
J.C. Penney Co., Inc.
    48,259       1,036,603  
Kohl’s Corp.*
    62,558       2,971,505  
Macy’s, Inc.
    85,619       1,532,580  
Nordstrom, Inc.
    33,583       1,081,037  
Sears Holdings Corp.* (a)
    9,972       644,690  
Target Corp.
    149,822       7,366,748  
                 
              16,240,867  
                 
 
 
Multi-Utilities 1.4%
Ameren Corp.
    48,220       1,146,189  
CenterPoint Energy, Inc.
    84,193       1,107,980  
CMS Energy Corp.
    46,855       686,426  
Consolidated Edison, Inc.
    57,217       2,466,053  
Dominion Resources, Inc.
    122,004       4,726,435  
DTE Energy Co.
    34,112       1,555,848  
Integrys Energy Group, Inc.
    15,565       680,813  
NiSource, Inc.
    56,419       818,076  
PG&E Corp.
    75,538       3,104,612  
Public Service Enterprise Group, Inc.
    102,915       3,224,327  
SCANA Corp.
    22,988       822,051  
Sempra Energy
    50,191       2,348,437  
TECO Energy, Inc.
    43,604       657,112  
Wisconsin Energy Corp.
    23,838       1,209,540  
Xcel Energy, Inc.
    92,961       1,915,926  
                 
              26,469,825  
                 
 
 
Office Electronics 0.1%
Xerox Corp.
    279,785       2,249,471  
                 
 
 
Oil, Gas & Consumable Fuels 8.9%
Anadarko Petroleum Corp.
    100,481       3,626,359  
Apache Corp.
    68,538       5,770,214  
Cabot Oil & Gas Corp.
    21,185       663,514  
Chesapeake Energy Corp.
    132,573       2,777,404  
Chevron Corp.
    408,528       27,722,710  
ConocoPhillips
    302,641       14,856,647  
CONSOL Energy, Inc.
    45,737       1,544,081  
Denbury Resources, Inc.*
    80,616       1,180,218  
Devon Energy Corp.
    90,760       5,529,099  
El Paso Corp.
    142,535       1,583,564  
EOG Resources, Inc.
    51,440       5,060,153  
Exxon Mobil Corp.
    1,039,915       59,347,958  
Hess Corp.
    59,248       2,982,544  
Marathon Oil Corp.
    144,244       4,484,546  
Massey Energy Co.
    20,725       566,829  
Murphy Oil Corp.
    38,840       1,924,522  
Noble Energy, Inc.
    35,500       2,141,715  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT S&P 500 Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Oil, Gas & Consumable Fuels (continued)
                 
Occidental Petroleum Corp.
    165,140     $ 12,740,551  
Peabody Energy Corp.
    54,802       2,144,402  
Pioneer Natural Resources Co.
    23,600       1,403,020  
Range Resources Corp.
    32,291       1,296,484  
Southwestern Energy Co.*
    70,407       2,720,527  
Spectra Energy Corp.
    131,749       2,644,202  
Sunoco, Inc.
    24,318       845,537  
Tesoro Corp.
    28,936       337,683  
Valero Energy Corp.
    114,855       2,065,093  
Williams Cos., Inc. (The)
    118,778       2,171,262  
                 
              170,130,838  
                 
 
 
Paper & Forest Products 0.2%
International Paper Co.
    88,571       2,004,362  
MeadWestvaco Corp.
    35,024       777,533  
Weyerhaeuser Co.
    42,965       1,512,368  
                 
              4,294,263  
                 
 
 
Personal Products 0.2%
Avon Products, Inc.
    87,002       2,305,553  
Estee Lauder Cos., Inc. (The), Class A
    24,223       1,349,948  
                 
              3,655,501  
                 
 
 
Pharmaceuticals 6.1%
Abbott Laboratories (b)
    314,011       14,689,435  
Allergan, Inc.
    62,541       3,643,639  
Bristol-Myers Squibb Co.
    349,562       8,718,076  
Eli Lilly & Co.
    206,263       6,909,810  
Forest Laboratories, Inc.*
    61,728       1,693,199  
Johnson & Johnson
    560,960       33,130,298  
King Pharmaceuticals, Inc.*
    51,405       390,164  
Merck & Co., Inc.
    634,155       22,176,400  
Mylan, Inc.* (a)
    62,547       1,065,801  
Pfizer, Inc.
    1,640,450       23,392,817  
Watson Pharmaceuticals, Inc.*
    21,744       882,154  
                 
              116,691,793  
                 
 
 
Professional Services 0.1%
Dun & Bradstreet Corp.
    10,423       699,592  
Equifax, Inc.
    25,824       724,621  
Robert Half International, Inc.
    30,383       715,520  
                 
              2,139,733  
                 
 
 
Real Estate Investment Trusts (REITs) 1.3%
Apartment Investment & Management Co., Class A
    24,018       465,229  
AvalonBay Communities, Inc.
    16,813       1,569,830  
Boston Properties, Inc.
    28,282       2,017,638  
Equity Residential
    57,404       2,390,302  
HCP, Inc.
    59,678       1,924,615  
Health Care REIT, Inc.
    25,200       1,061,424  
Host Hotels & Resorts, Inc.
    133,435       1,798,704  
Kimco Realty Corp.
    82,040       1,102,618  
Plum Creek Timber Co., Inc.
    33,289       1,149,469  
ProLogis
    96,347       975,995  
Public Storage
    27,611       2,427,283  
Simon Property Group, Inc.
    59,462       4,801,556  
Ventas, Inc.
    32,000       1,502,400  
Vornado Realty Trust
    32,047       2,337,829  
                 
              25,524,892  
                 
 
 
Real Estate Management & Development 0.0% †
CB Richard Ellis Group, Inc., Class A*
    54,538       742,262  
                 
 
 
Road & Rail 0.8%
CSX Corp.
    79,318       3,936,552  
Norfolk Southern Corp.
    75,089       3,983,472  
Ryder System, Inc.
    10,961       440,961  
Union Pacific Corp.
    102,867       7,150,285  
                 
              15,511,270  
                 
 
 
Semiconductors & Semiconductor Equipment 2.6%
Advanced Micro Devices, Inc.*
    115,262       843,718  
Altera Corp.
    61,093       1,515,717  
Analog Devices, Inc.
    60,386       1,682,354  
Applied Materials, Inc.
    272,832       3,279,441  
Broadcom Corp., Class A
    87,722       2,892,194  
First Solar, Inc.* (a)
    9,900       1,126,917  
Intel Corp.
    1,131,565       22,008,939  
KLA-Tencor Corp.
    34,961       974,713  
Linear Technology Corp.
    45,570       1,267,302  
LSI Corp.*
    133,548       614,321  
MEMC Electronic Materials, Inc.*
    46,258       457,029  
Microchip Technology, Inc. (a)
    37,600       1,043,024  
Micron Technology, Inc.*
    173,772       1,475,324  
National Semiconductor Corp.
    47,944       645,326  
Novellus Systems, Inc.*
    19,849       503,371  
NVIDIA Corp.*
    115,797       1,182,287  
Teradyne, Inc.*
    35,663       347,714  
Texas Instruments, Inc.
    248,640       5,788,339  
Xilinx, Inc.
    56,217       1,420,042  
                 
              49,068,072  
                 
 
 
Software 3.7%
Adobe Systems, Inc.*
    106,917       2,825,816  
Autodesk, Inc.*
    46,646       1,136,297  
BMC Software, Inc.*
    37,222       1,288,998  
CA, Inc.
    80,516       1,481,494  
Citrix Systems, Inc.*
    37,710       1,592,493  
Compuware Corp.*
    46,775       373,265  
Electronic Arts, Inc.*
    66,573       958,651  
Intuit, Inc.*
    63,893       2,221,560  
McAfee, Inc.*
    32,300       992,256  
Microsoft Corp.
    1,550,806       35,684,046  
Novell, Inc.*
    69,754       396,203  
Oracle Corp.
    796,107       17,084,456  
Red Hat, Inc.*
    38,400       1,111,296  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Software (continued)
                 
Salesforce.com, Inc.*
    22,943     $ 1,968,968  
Symantec Corp.*
    164,089       2,277,555  
                 
              71,393,354  
                 
 
 
Specialty Retail 2.0%
Abercrombie & Fitch Co., Class A
    18,031       553,371  
AutoNation, Inc.* (a)
    18,397       358,741  
AutoZone, Inc.*
    6,057       1,170,334  
Bed Bath & Beyond, Inc.*
    53,325       1,977,291  
Best Buy Co., Inc.
    70,192       2,376,701  
CarMax, Inc.*
    45,369       902,843  
GameStop Corp., Class A*
    31,257       587,319  
Gap, Inc. (The)
    91,323       1,777,146  
Home Depot, Inc.
    341,838       9,595,393  
Limited Brands, Inc.
    54,711       1,207,472  
Lowe’s Cos., Inc.
    290,745       5,937,013  
Office Depot, Inc.*
    57,472       232,187  
O’Reilly Automotive, Inc.*
    28,100       1,336,436  
RadioShack Corp.
    25,632       500,080  
Ross Stores, Inc.
    24,803       1,321,752  
Staples, Inc.
    148,105       2,821,400  
Tiffany & Co.
    25,707       974,552  
TJX Cos., Inc.
    82,996       3,481,682  
Urban Outfitters, Inc.*
    26,561       913,433  
                 
              38,025,146  
                 
 
 
Textiles, Apparel & Luxury Goods 0.5%
Coach, Inc.
    62,068       2,268,585  
NIKE, Inc., Class B
    79,276       5,355,094  
Polo Ralph Lauren Corp.
    13,380       976,205  
VF Corp.
    18,001       1,281,311  
                 
              9,881,195  
                 
 
 
Thrifts & Mortgage Finance 0.1%
Hudson City Bancorp, Inc.
    96,676       1,183,314  
People’s United Financial, Inc.
    75,747       1,022,585  
                 
              2,205,899  
                 
 
 
Tobacco 1.6%
Altria Group, Inc.
    423,340       8,483,734  
Lorillard, Inc.
    31,509       2,268,018  
Philip Morris International, Inc.
    376,731       17,269,349  
Reynolds American, Inc.
    34,342       1,789,905  
                 
              29,811,006  
                 
 
 
Trading Companies & Distributors 0.1%
Fastenal Co.
    26,745       1,342,331  
W.W. Grainger, Inc.
    12,551       1,248,197  
                 
              2,590,528  
                 
 
 
Wireless Telecommunication Services 0.4%
American Tower Corp., Class A*
    81,863       3,642,903  
MetroPCS Communications, Inc.*
    53,322       436,707  
Sprint Nextel Corp.*
    605,757       2,568,410  
                 
              6,648,020  
                 
         
Total Common Stocks (cost $2,426,049,558)
    1,896,523,805  
         
                 
                 
Mutual Fund 0.6%
Money Market Fund 0.6%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    11,269,257       11,269,257  
                 
         
Total Mutual Fund (cost $11,269,257)
    11,269,257  
         
                 
                 
Repurchase Agreement 0.4%
                 
      Principal
Amount 		      Market
Value 		 
 
 
                 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10, repurchase price $8,425,071, collateralized by U.S. Government Agency Mortgages 4.00%-8.50%, maturing 03/01/15-06/01/40; total market value of $8,593,867. (d)
  $ 8,425,064       8,425,064  
                 
         
Total Repurchase Agreement (cost $8,425,064)
    8,425,064  
         
         
Total Investments
(cost $2,445,743,879) (e) — 100.4%
    1,916,218,126  
         
Liabilities in excess of other assets — (0.4%)
    (7,804,846 )
         
         
NET ASSETS — 100.0%
  $ 1,908,413,280  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $8,177,847.
 
(b) A security or a portion of a security was used to cover the margin requirement for futures contracts.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $8,425,064.
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT S&P 500 Index Fund (Continued)
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
Ltd. Limited
 
REIT Real Estate Investment Trust
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
 
                             
            Notional Value
 		   
Number of
 		          Covered by
 		  Unrealized
Contracts   Long Contracts   Expiration   Contracts   Depreciation
 
267
 
E-Mini S&P 500
    09/17/10     $ 13,705,110     $ (741,844 )
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT S&P 500
 		 
      Index Fund  
       
Assets:
         
Investments, at value* (cost $2,437,318,815)
    $ 1,907,793,062  
Repurchase agreement, at value and cost
      8,425,064  
           
Total Investments
      1,916,218,126  
           
Dividends receivable
      2,594,936  
Security lending income receivable
      10,900  
Receivable for capital shares issued
      1,672,109  
Prepaid expenses and other assets
      20,829  
           
Total Assets
      1,920,516,900  
           
Liabilities:
         
Payable for capital shares redeemed
      3,060,980  
Payable for variation margin on futures contracts
      109,344  
Cash overdraft (Note 2)
      185  
Payable upon return of securities loaned (Note 2)
      8,425,064  
Accrued expenses and other payables:
         
Investment advisory fees
      203,492  
Fund administration fees
      50,847  
Administrative servicing fees
      22,473  
Accounting and transfer agent fees
      12,187  
Trustee fees
      677  
Custodian fees
      11,834  
Compliance program costs (Note 3)
      11,259  
Professional fees
      65,869  
Printing fees
      30,525  
Other
      98,884  
           
Total Liabilities
      12,103,620  
           
Net Assets
    $ 1,908,413,280  
           
Represented by:
         
Capital
    $ 2,621,015,272  
Accumulated undistributed net investment income
      1,988,833  
Accumulated net realized losses from investment and futures transactions
      (184,323,228 )
Net unrealized appreciation/(depreciation) from investments
      (529,525,753 )
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (741,844 )
           
Net Assets
    $ 1,908,413,280  
           
Net Assets:
         
Class IV Shares
    $ 138,123,294  
Class Y Shares
      1,770,289,986  
           
Total
    $ 1,908,413,280  
           
*  Includes value of securities on loan of $8,177,847 (Note 2).
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 13

 

 
Statement of Assets and Liabilities (Continued)
 
           
           
      NVIT S&P 500
 		 
      Index Fund  
       
           
Shares Outstanding (unlimited number of shares authorized):
         
Class IV Shares
      19,276,506  
Class Y Shares
      247,183,029  
           
Total
      266,459,535  
           
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class IV Shares
    $ 7.17  
Class Y Shares
    $ 7.16  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT S&P 500
 		 
      Index Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 20,460,727  
Income from securities lending (Note 2)
      67,498  
           
Total Income
      20,528,225  
           
EXPENSES:
         
Investment advisory fees
      1,321,676  
Fund administration fees
      357,812  
Administrative servicing fees Class IV Shares
      77,303  
Professional fees
      100,195  
Printing fees
      16,288  
Trustee fees
      37,524  
Custodian fees
      41,566  
Accounting and transfer agent fees
      15,594  
Compliance program costs (Note 3)
      4,477  
Recoupment fees (Note 3)
      24,924  
Other
      116,828  
           
Total expenses before earnings credit and expenses waived
      2,114,187  
Earnings credit (Note 4)
      (103 )
Expenses voluntarily waived by adviser (Note 3)
      (22,810 )
           
Net Expenses
      2,091,274  
           
NET INVESTMENT INCOME
      18,436,951  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (14,268,530 )
Net realized gains from futures transactions (Note 2)
      936,990  
           
Net realized losses from investment and futures transactions
      (13,331,540 )
           
Net change in unrealized appreciation/(depreciation) from investments
      (141,338,862 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (907,048 )
           
Net change in unrealized appreciation/(depreciation) from investments and futures
      (142,245,910 )
           
Net realized/unrealized losses from investments and futures transactions
      (155,577,450 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (137,140,499 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Statements of Changes in Net Assets
 
                     
      NVIT S&P 500 Index Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 18,436,951       $ 43,891,500  
Net realized losses from investment and futures transactions
      (13,331,540 )       (45,991,905 )
Net change in unrealized appreciation/(depreciation) from investments and futures
      (142,245,910 )       469,597,582  
                     
Change in net assets resulting from operations
      (137,140,499 )       467,497,177  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class IV
      (1,259,533 )       (3,231,439 )
Class Y
      (16,828,738 )       (40,401,997 )
                     
Change in net assets from shareholder distributions
      (18,088,271 )       (43,633,436 )
                     
Change in net assets from capital transactions
      (17,825,590 )       35,314,520  
                     
Change in net assets
      (173,054,360 )       459,178,261  
                     
                     
Net Assets:
                   
Beginning of period
      2,081,467,640         1,622,289,379  
                     
End of period
    $ 1,908,413,280       $ 2,081,467,640  
                     
Accumulated undistributed net investment income at end of period
    $ 1,988,833       $ 1,640,153  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class IV Shares
                   
Proceeds from shares issued
    $ 2,846,215       $ 5,549,979  
Dividends reinvested
      1,259,533         3,231,439  
Cost of shares redeemed
      (14,041,225 )       (25,058,742 )
                     
Total Class IV
      (9,935,477 )       (16,277,324 )
                     
Class Y Shares
                   
Proceeds from shares issued
      68,661,307         289,406,168  
Dividends reinvested
      16,828,738         40,401,997  
Cost of shares redeemed
      (93,380,158 )       (278,216,321 )
                     
Total Class Y
      (7,890,113 )       51,591,844  
                     
Change in net assets from capital transactions
    $ (17,825,590 )     $ 35,314,520  
                     
                     
SHARE TRANSACTIONS:
                   
Class IV Shares
                   
Issued
      362,345         856,533  
Reinvested
      158,838         485,489  
Redeemed
      (1,795,325 )       (3,808,759 )
                     
Total Class IV Shares
      (1,274,142 )       (2,466,737 )
                     
Class Y Shares
                   
Issued
      8,789,990         46,731,658  
Reinvested
      2,125,795         6,041,800  
Redeemed
      (11,952,939 )       (39,943,833 )
                     
Total Class Y Shares
      (1,037,154 )       12,829,625  
                     
Total change in shares
      (2,311,296 )       10,362,888  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT S&P 500 Index Fund
 
                                                                                                                                     
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                    Ratio of
 		         
                and
 		                                              Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                        Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                     
Class IV Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 7 .75       0 .07       (0 .59)       (0 .52)       (0 .06)       (0 .06)     $ 7 .17       (6 .73%)     $ 138,123,294         0 .29%       1 .68%       0 .30%       2 .39%    
Year Ended December 31, 2009 (e)
  $ 6 .28       0 .15       1 .47       1 .62       (0 .15)       (0 .15)     $ 7 .75       26 .22%     $ 159,219,298         0 .33%       2 .30%       0 .33%       11 .47%    
Year Ended December 31, 2008
  $ 10 .22       0 .17       (3 .95)       (3 .78)       (0 .16)       (0 .16)     $ 6 .28       (37 .29%)     $ 144,568,725         0 .34%       1 .99%       0 .34%(f)       5 .47%    
Year Ended December 31, 2007
  $ 9 .88       0 .19       0 .32       0 .51       (0 .17)       (0 .17)     $ 10 .22       5 .11%     $ 255,677,256         0 .32%       1 .77%       0 .32%(f)       4 .93%    
Year Ended December 31, 2006
  $ 8 .71       0 .17       1 .15       1 .32       (0 .15)       (0 .15)     $ 9 .88       15 .32%     $ 270,585,372         0 .31%       1 .80%       0 .38%       5 .40%    
Year Ended December 31, 2005
  $ 8 .45       0 .14       0 .26       0 .40       (0 .14)       (0 .14)     $ 8 .71       4 .75%     $ 265,571,021         0 .28%       1 .58%       0 .47%       4 .29%    
                                                                                                                                     
Class Y Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 7 .74       0 .07       (0 .58)       (0 .51)       (0 .07)       (0 .07)     $ 7 .16       (6 .69%)     $ 1,770,289,986         0 .19%       1 .78%       0 .20%       2 .39%    
Year Ended December 31, 2009 (e)
  $ 6 .28       0 .16       1 .46       1 .62       (0 .16)       (0 .16)     $ 7 .74       26 .19%     $ 1,922,248,342         0 .22%       2 .40%       0 .22%       11 .47%    
Year Ended December 31, 2008
  $ 10 .21       0 .18       (3 .94)       (3 .76)       (0 .17)       (0 .17)     $ 6 .28       (37 .15%)     $ 1,477,720,654         0 .22%       2 .12%       0 .22%(f)       5 .47%    
Year Ended December 31, 2007
  $ 9 .88       0 .18       0 .33       0 .51       (0 .18)       (0 .18)     $ 10 .21       5 .13%     $ 2,217,327,968         0 .20%       1 .87%       0 .20%(f)       4 .93%    
Period Ended December 31, 2006 (g)
  $ 9 .15       0 .13       0 .72       0 .85       (0 .12)       (0 .12)     $ 9 .88       9 .42%     $ 282,751,481         0 .23%       1 .99%       0 .23%       5 .40%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  There were no fee reductions during the period.
(g)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 17

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT S&P 500 Index Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) or other insurance companies and other series of the Trust that operate as funds-of-funds, such as the NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
18 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1     Level 2     Level 3     Total      
 
Assets:
                                   
 
 
Common Stocks
  $ 1,896,523,805     $ —     $ —     $ 1,896,523,805      
 
 
Mutual Fund
    11,269,257       —       —       11,269,257      
 
 
Repurchase Agreement
    —       8,425,064       —       8,425,064      
 
 
Total Assets
    1,907,793,062       8,425,064       —       1,916,218,126      
 
 
Liabilities:
                                   
 
 
Futures Contract
    (741,844 )     —       —       (741,844 )    
 
 
Total Liabilities
    (741,844 )     —       —       (741,844 )    
 
 
Total
  $ 1,907,051,218     $ 8,425,064     $ —     $ 1,915,476,282      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $185 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
 
 
20 Semiannual Report 2010

 

 
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                 
    Statement of Assets & Liabilities Location   Fair Value    
 
Liabilities:
               
 
 
Futures — Equity contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ (741,844 )    
 
 
Total
      $ (741,844 )    
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ 936,990      
 
 
    Total   $ 936,990      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (907,048 )    
 
 
    Total   $ (907,048 )    
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 8,177,847     $ 8,425,064      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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
 
 
 
22 Semiannual Report 2010

 

 
 
technical merits of the position. If such a tax position taken by the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected BlackRock Investment Management LLC (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1.5 billion     0.13%      
 
 
    $1.5 billion up to $3 billion     0.12%      
 
 
    $3 billion and more     0.11%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $95,683 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.23% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement.
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                             
    Fiscal Year
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2007 Amount   2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ —     $ —     $ 49,888     $ —     $ 49,888      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $24,924.
 
In addition, NFA voluntarily agreed to waive from its Investment Advisory Fee an amount equal to $22,810 for which NFA shall not be entitled to later seek recoupment.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT
 
 
 
24 Semiannual Report 2010

 

 
 
Cardinal Capital Appreciation, NVIT Cardinal Conservative NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.20% of the average daily net assets of Class IV shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $77,303 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $4,477.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $48,905,682 and sales of $53,308,986 (excluding short-term securities).
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. In addition, the Trust has entered
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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 Trust’s 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.
 
7. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 2,478,202,672     $ 82,577,576     $ (652,987,186)     $ (570,409,610)      
 
 
 
8. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
26 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 27

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT S&P 500 Index Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, LLC, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class Y shares was in the first quintile of its Peer Group, and that, for the three-year period ended September 30, 2009, the Fund’s performance for Class Y shares was in the third quintile of its Peer Group. The Trustees noted that for each period, the Fund’s Class Y shares slightly underperformed its benchmark, the S&P 500® Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees then noted that the Fund’s performance for the three-year period ended September 30, 2009 was only three basis points below the performance of its index, the S&P 500® Index, and that the Fund had therefore achieved its objective of tracking the performance of the S&P 500® Index.
 
The Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class Y shares were in the second quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class Y shares were in the first quintile of its Peer Group. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule includes breakpoints, and that the first breakpoint has been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
28 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 31

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
32 Semiannual Report 2010

 

 
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NVIT Small Cap Index Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
28
   
Statement of Assets and Liabilities
       
29
   
Statement of Operations
       
30
   
Statements of Changes in Net Assets
       
31
   
Financial Highlights
       
32
   
Notes to Financial Statements
       
42
   
Supplemental Information
       
44
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-SCX (8/10)
(NATIONWIDE FUNDS LOGO)

 

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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Small Cap Index Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Small Cap Index Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class Y Shares
    Actual       1,000.00       979.70       1.33       0.27  
      Hypothetical b     1,000.00       1,023.46       1.35       0.27  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Small Cap Index Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    98 .1%
Repurchase Agreements
    7 .8%
Mutual Fund
    1 .8%
Warrant ‡
    0 .0%
Liabilities in excess of other assets
    (7 .7)%
         
      100 .0%
 
         
Top Industries †    
 
Real Estate Investment Trusts (REITs)
    6 .6%
Commercial Banks
    5 .8%
Software
    3 .9%
Health Care Equipment & Supplies
    3 .6%
Semiconductors & Semiconductor Equipment
    3 .3%
Health Care Providers & Services
    3 .3%
Oil, Gas & Consumable Fuels
    3 .2%
Specialty Retail
    3 .0%
Biotechnology
    3 .0%
Insurance
    2 .7%
Other Industries *
    61 .6%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    1 .7%
Salix Pharmaceuticals Ltd. 
    0 .2%
MFA Financial, Inc. 
    0 .2%
Jack Henry & Associates, Inc. 
    0 .2%
TIBCO Software, Inc. 
    0 .2%
Highwoods Properties, Inc. 
    0 .2%
Rock-Tenn Co., Class A
    0 .2%
Nordson Corp. 
    0 .2%
ev3, Inc. 
    0 .2%
Psychiatric Solutions, Inc. 
    0 .2%
Other Holdings *
    96 .5%
         
      100 .0%
 
 
‡
Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund
 
                 
                 
Common Stocks 98.1%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 1.8%
AAR Corp.*
    11,221     $ 187,840  
Aerovironment, Inc.*
    4,822       104,782  
American Science & Engineering, Inc.
    2,621       199,746  
Applied Energetics, Inc.*
    23,701       24,412  
Applied Signal Technology, Inc.
    4,040       79,386  
Argon ST, Inc.*
    3,870       132,702  
Astronics Corp.*
    2,867       46,904  
Ceradyne, Inc.*
    7,367       157,433  
Cubic Corp.
    4,545       165,347  
Curtiss-Wright Corp.
    13,058       379,204  
DigitalGlobe, Inc.*
    7,925       208,428  
Ducommun, Inc.
    3,190       54,549  
DynCorp International, Inc., Class A*
    4,528       79,331  
Esterline Technologies Corp.*
    8,616       408,829  
GenCorp, Inc.*
    17,030       74,591  
GeoEye, Inc.*
    6,609       205,804  
HEICO Corp. (a)
    8,505       305,500  
Herley Industries, Inc.*
    4,182       59,635  
Hexcel Corp.*
    28,130       436,296  
Kratos Defense & Security Solutions, Inc.*
    4,810       50,505  
Ladish Co., Inc.*
    4,601       104,535  
LMI Aerospace, Inc.*
    2,600       41,002  
Moog, Inc., Class A*
    13,146       423,696  
Orbital Sciences Corp.*
    16,598       261,751  
Stanley, Inc.*
    4,098       153,183  
Taser International, Inc.* (a)
    18,256       71,198  
Teledyne Technologies, Inc.*
    10,433       402,505  
Triumph Group, Inc.
    4,814       320,757  
                 
              5,139,851  
                 
 
 
Air Freight & Logistics 0.4%
Air Transport Services Group, Inc.*
    16,146       76,855  
Atlas Air Worldwide Holdings, Inc.*
    7,541       358,198  
Dynamex, Inc.*
    3,248       39,626  
Forward Air Corp.
    8,521       232,197  
HUB Group, Inc., Class A*
    10,924       327,829  
Pacer International, Inc.*
    10,591       74,031  
Park-Ohio Holdings Corp.*
    2,465       35,471  
                 
              1,144,207  
                 
 
 
Airlines 0.7%
AirTran Holdings, Inc.*
    39,409       191,134  
Alaska Air Group, Inc.*
    10,391       467,075  
Allegiant Travel Co. (a)
    4,427       188,989  
Hawaiian Holdings, Inc.*
    15,384       79,535  
JetBlue Airways Corp.*
    71,071       390,180  
Pinnacle Airlines Corp.*
    6,001       32,645  
Republic Airways Holdings, Inc.*
    10,440       63,788  
SkyWest, Inc.
    16,262       198,722  
US Airways Group, Inc.*
    47,067       405,247  
                 
              2,017,315  
                 
 
 
Auto Components 0.7%
American Axle & Manufacturing Holdings, Inc.*
    15,731       115,308  
Amerigon, Inc.*
    6,500       47,970  
Cooper Tire & Rubber Co.
    17,647       344,116  
Dana Holding Corp.*
    40,830       408,300  
Dorman Products, Inc.*
    3,282       66,723  
Drew Industries, Inc.*
    5,546       112,029  
Exide Technologies*
    22,303       115,976  
Fuel Systems Solutions, Inc.* (a)
    4,145       107,563  
Hawk Corp., Class A*
    1,600       40,720  
Modine Manufacturing Co.*
    13,300       102,144  
Spartan Motors, Inc.
    9,850       41,370  
Standard Motor Products, Inc.
    5,814       46,919  
Stoneridge, Inc.*
    4,600       34,914  
Superior Industries International, Inc.
    6,727       90,411  
Tenneco, Inc.*
    17,368       365,770  
                 
              2,040,233  
                 
 
 
Automobiles 0.0%†
Winnebago Industries, Inc.*
    8,424       83,735  
                 
 
 
Beverages 0.2%
Boston Beer Co., Inc., Class A*
    2,600       175,370  
Coca-Cola Bottling Co. Consolidated
    1,300       62,296  
Heckmann Corp.*
    26,394       122,468  
MGP Ingredients, Inc.*
    3,964       26,282  
National Beverage Corp.
    3,375       41,445  
                 
              427,861  
                 
 
 
Biotechnology 3.2%
Acorda Therapeutics, Inc.*
    11,295       351,387  
Affymax, Inc.* (a)
    6,191       37,022  
Alkermes, Inc.*
    27,558       343,097  
Allos Therapeutics, Inc.*
    23,070       141,419  
Alnylam Pharmaceuticals, Inc.*
    10,675       160,339  
AMAG Pharmaceuticals, Inc.*
    6,131       210,600  
Arena Pharmaceuticals, Inc.* (a)
    29,973       92,017  
ARIAD Pharmaceuticals, Inc.*
    32,854       92,648  
Arqule, Inc.*
    12,419       53,402  
Array BioPharma, Inc.*
    15,900       48,495  
AVI BioPharma, Inc.* (a)
    33,152       53,375  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Biotechnology (continued)
                 
BioCryst Pharmaceuticals, Inc.* (a)
    8,594     $ 50,791  
Biosante Pharmaceuticals, Inc.*
    19,858       34,950  
Biotime, Inc.*
    6,500       40,040  
Celera Corp.*
    24,006       157,239  
Celldex Therapeutics, Inc.* (a)
    9,533       43,471  
Cepheid, Inc.*
    17,346       277,883  
Chelsea Therapeutics International Ltd.*
    9,763       28,606  
Clinical Data, Inc.* (a)
    3,248       40,405  
Combinatorx, Inc.*
    21,066       30,546  
Cubist Pharmaceuticals, Inc.*
    16,888       347,893  
Curis, Inc.* (a)
    22,957       31,910  
Cytokinetics, Inc.*
    14,514       34,398  
Cytori Therapeutics, Inc.* (a)
    12,422       43,229  
CytRx Corp.*
    36,545       28,140  
Dyax Corp.*
    29,203       66,291  
Dynavax Technologies Corp.*
    21,857       40,654  
Emergent Biosolutions, Inc.*
    5,503       89,919  
Enzon Pharmaceuticals, Inc.*
    14,540       154,851  
Exact Sciences Corp.*
    10,871       47,832  
Exelixis, Inc.*
    31,926       110,783  
Genomic Health, Inc.* (a)
    4,167       53,879  
Geron Corp.* (a)
    28,370       142,417  
Halozyme Therapeutics, Inc.*
    21,123       148,706  
Idenix Pharmaceuticals, Inc.*
    10,756       53,780  
ImmunoGen, Inc.*
    19,829       183,815  
Immunomedics, Inc.* (a)
    19,494       60,237  
Incyte Corp Ltd.*
    25,722       284,743  
Infinity Pharmaceuticals, Inc.* (a)
    4,870       28,782  
Inhibitex, Inc.*
    15,197       38,752  
Inovio Pharmaceuticals, Inc.* (a)
    25,651       26,164  
InterMune, Inc.*
    13,312       124,467  
Ironwood Pharmaceuticals, Inc.*
    5,996       71,472  
Isis Pharmaceuticals, Inc.*
    27,459       262,783  
Keryx Biopharmaceuticals, Inc.*
    15,010       54,937  
Lexicon Pharmaceuticals, Inc.*
    58,512       74,895  
Ligand Pharmaceuticals, Inc., Class B*
    36,214       52,872  
MannKind Corp.* (a)
    18,185       116,202  
Martek Biosciences Corp.*
    9,633       228,398  
Maxygen, Inc.*
    9,440       52,203  
Medivation, Inc.* (a)
    9,962       88,064  
Metabolix, Inc.* (a)
    7,931       113,493  
Micromet, Inc.*
    23,741       148,144  
Momenta Pharmaceuticals, Inc.*
    11,800       144,668  
Nabi Biopharmaceuticals*
    13,587       73,913  
Neuralstem, Inc.*
    13,137       32,843  
Neurocrine Biosciences, Inc.*
    14,482       81,099  
NeurogesX, Inc.* (a)
    3,575       23,702  
Novavax, Inc.* (a)
    25,084       54,432  
NPS Pharmaceuticals, Inc.*
    17,446       112,352  
Omeros Corp.* (a)
    5,890       43,704  
Onyx Pharmaceuticals, Inc.*
    18,212       393,197  
Opko Health, Inc.* (a)
    26,887       60,765  
Orexigen Therapeutics, Inc.* (a)
    9,704       40,757  
Osiris Therapeutics, Inc.* (a)
    5,100       29,631  
PDL BioPharma, Inc.
    34,460       193,665  
Peregrine Pharmaceuticals, Inc.*
    15,606       33,553  
Pharmacyclics, Inc.*
    11,367       75,704  
Pharmasset, Inc.*
    8,685       237,448  
Progenics Pharmaceuticals, Inc.* (a)
    8,704       47,698  
Rigel Pharmaceuticals, Inc.*
    15,539       111,881  
Sangamo BioSciences, Inc.* (a)
    13,634       50,582  
Savient Pharmaceuticals, Inc.*
    19,726       248,548  
SciClone Pharmaceuticals, Inc.* (a)
    10,800       28,728  
Seattle Genetics, Inc.*
    24,412       292,700  
SIGA Technologies, Inc.* (a)
    9,694       74,644  
Spectrum Pharmaceuticals, Inc.* (a)
    14,864       58,267  
StemCells, Inc.* (a)
    37,400       35,156  
Targacept, Inc.*
    7,006       135,426  
Theravance, Inc.*
    18,283       229,817  
Vanda Pharmaceuticals, Inc.*
    8,317       54,975  
Vical, Inc.* (a)
    17,004       52,712  
ZIOPHARM Oncology, Inc.*
    14,799       47,061  
Zymogenetics, Inc.*
    15,779       66,587  
                 
              8,859,052  
                 
 
 
Building Products 0.7%
A.O. Smith Corp.
    7,023       338,438  
AAON, Inc.
    3,679       85,758  
American Woodmark Corp.
    2,808       48,017  
Ameron International Corp.
    2,686       162,046  
Apogee Enterprises, Inc.
    8,300       89,889  
Builders FirstSource, Inc.* (a)
    14,265       34,236  
Gibraltar Industries, Inc.*
    8,999       90,890  
Griffon Corp.*
    13,165       145,605  
Insteel Industries, Inc.
    5,350       62,167  
NCI Building Systems, Inc.*
    5,473       45,809  
Quanex Building Products Corp.
    11,152       192,818  
Simpson Manufacturing Co., Inc.
    11,406       280,017  
Trex Co., Inc.* (a)
    4,597       92,354  
Universal Forest Products, Inc.
    5,615       170,191  
                 
              1,838,235  
                 
 
 
Capital Markets 2.1%
American Capital Ltd.* (a)
    98,947       476,924  
Apollo Investment Corp.
    57,189       533,573  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Capital Markets (continued)
                 
Artio Global Investors, Inc.
    8,123     $ 127,856  
BGC Partners, Inc., Class A (a)
    16,867       86,190  
BlackRock Kelso Capital Corp. (a)
    16,610       163,941  
Calamos Asset Management, Inc., Class A
    5,700       52,896  
Capital Southwest Corp. (a)
    847       74,460  
Cohen & Steers, Inc. (a)
    4,976       103,202  
Cowen Group, Inc., Class A*
    10,850       44,485  
Diamond Hill Investment Group, Inc. (a)
    700       39,683  
Duff & Phelps Corp., Class A
    8,078       102,025  
Epoch Holding Corp.
    4,017       49,289  
Evercore Partners, Inc., Class A
    4,530       105,775  
FBR Capital Markets Corp.*
    15,514       51,662  
Fifth Street Finance Corp.
    13,106       144,559  
Financial Engines, Inc.*
    3,931       53,462  
GAMCO Investors, Inc., Class A
    2,005       74,586  
GFI Group, Inc.
    19,210       107,192  
Gladstone Capital Corp.
    6,211       67,141  
Gladstone Investment Corp. (a)
    7,100       41,393  
Gleacher & Co., Inc.*
    22,603       57,638  
Golub Capital BDC, Inc.
    2,197       31,681  
Harris & Harris Group, Inc.*
    9,403       38,458  
Hercules Technology Growth Capital, Inc.
    10,682       98,381  
HFF, Inc., Class A*
    5,911       41,791  
International Assets Holding Corp.*
    3,768       60,288  
Investment Technology Group, Inc.*
    12,448       199,915  
JMP Group, Inc.
    4,636       28,697  
Kayne Anderson Energy Development Co.
    3,000       45,510  
KBW, Inc.*
    10,270       220,189  
Knight Capital Group, Inc., Class A*
    27,079       373,419  
LaBranche & Co., Inc.*
    11,021       47,170  
Ladenburg Thalmann Financial Services, Inc.*
    27,409       34,261  
Main Street Capital Corp. (a)
    3,736       55,778  
MCG Capital Corp.
    22,489       108,622  
MF Global Holdings Ltd.*
    24,987       142,676  
MVC Capital, Inc.
    7,100       91,732  
NGP Capital Resources Co.
    6,600       47,322  
Oppenheimer Holdings, Inc., Class A
    2,930       70,173  
optionsXpress Holdings, Inc.*
    12,001       188,896  
PennantPark Investment Corp.
    9,384       89,617  
Penson Worldwide, Inc.* (a)
    6,055       34,150  
Piper Jaffray Cos.*
    4,989       160,745  
Prospect Capital Corp. (a)
    19,504       188,214  
Safeguard Scientifics, Inc.*
    6,089       64,300  
Sanders Morris Harris Group, Inc.
    6,100       33,855  
Solar Capital Ltd.
    1,592       30,662  
Stifel Financial Corp.*
    8,890       385,737  
SWS Group, Inc.
    8,144       77,368  
THL Credit, Inc.*
    2,682       30,843  
Thomas Weisel Partners Group, Inc.*
    6,788       39,981  
TICC Capital Corp. (a)
    8,100       68,040  
TradeStation Group, Inc.*
    11,805       79,684  
Triangle Capital Corp. (a)
    3,744       53,240  
Virtus Investment Partners, Inc.*
    1,605       30,046  
Westwood Holdings Group, Inc.
    1,700       59,755  
                 
              5,909,128  
                 
 
 
Chemicals 2.1%
A. Schulman, Inc.
    9,206       174,546  
American Vanguard Corp.
    5,900       46,787  
Arch Chemicals, Inc.
    6,579       202,238  
Balchem Corp.
    8,282       207,050  
Calgon Carbon Corp.*
    16,201       214,501  
Ferro Corp.*
    25,178       185,562  
Georgia Gulf Corp.*
    9,808       130,839  
H.B. Fuller Co.
    14,153       268,766  
Hawkins, Inc. (a)
    2,632       63,379  
Innophos Holdings, Inc.
    6,293       164,121  
KMG Chemicals, Inc.
    1,902       27,313  
Koppers Holdings, Inc.
    6,050       136,004  
Kraton Performance Polymers, Inc.*
    3,298       61,969  
Landec Corp.*
    7,800       45,942  
LSB Industries, Inc.*
    5,066       67,428  
Minerals Technologies, Inc.
    5,434       258,332  
NewMarket Corp.
    2,983       260,476  
Olin Corp.
    22,793       412,325  
OM Group, Inc.*
    8,961       213,809  
Omnova Solutions, Inc.*
    13,259       103,553  
PolyOne Corp.*
    27,138       228,502  
Quaker Chemical Corp.
    3,300       89,397  
Rockwood Holdings, Inc.*
    15,196       344,797  
Senomyx, Inc.*
    11,725       44,438  
Sensient Technologies Corp.
    14,364       372,459  
Solutia, Inc.*
    35,351       463,098  
Spartech Corp.*
    9,100       93,275  
Stepan Co.
    2,277       155,815  
STR Holdings, Inc.* (a)
    8,291       155,871  
TPC Group, Inc.*
    2,460       40,836  
W.R. Grace & Co.*
    21,157       445,143  
Westlake Chemical Corp.
    5,707       105,979  
Zep, Inc.
    6,416       111,895  
Zoltek Cos., Inc.* (a)
    8,400       71,148  
                 
              5,967,593  
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Commercial Banks 6.2%
1st Source Corp.
    4,565     $ 77,240  
1st United Bancorp, Inc.*
    6,774       49,857  
Alliance Financial Corp.
    1,577       43,841  
American National Bankshares, Inc. (a)
    2,046       43,764  
Ameris Bancorp*
    7,174       69,301  
Ames National Corp. (a)
    2,521       49,260  
Arrow Financial Corp.
    2,790       64,449  
Bancfirst Corp.
    2,000       72,980  
Banco Latinoamericano de Comercio Exterior SA, Class E
    8,300       103,667  
Bancorp Rhode Island, Inc.
    1,288       33,746  
Bancorp, Inc. (The)*
    6,899       54,019  
Bank of Marin Bancorp (a)
    1,674       53,451  
Bank of the Ozarks, Inc.
    3,796       134,644  
Boston Private Financial Holdings, Inc.
    20,491       131,757  
Bridge Bancorp, Inc. (a)
    2,062       50,065  
Bryn Mawr Bank Corp. (a)
    2,726       45,742  
Camden National Corp.
    2,300       63,181  
Capital City Bank Group, Inc. (a)
    3,721       46,066  
Cardinal Financial Corp.
    8,600       79,464  
Cathay General Bancorp
    22,944       237,012  
Center Financial Corp.*
    10,714       55,177  
Centerstate Banks, Inc.
    6,650       67,099  
Chemical Financial Corp.
    7,135       155,400  
Citizens & Northern Corp. (a)
    3,790       40,553  
Citizens Republic Bancorp, Inc.*
    116,603       99,113  
City Holding Co.
    4,563       127,216  
CNB Financial Corp.
    2,995       32,885  
CoBiz Financial, Inc.
    9,987       65,814  
Columbia Banking System, Inc.
    11,450       209,077  
Community Bank System, Inc.
    9,636       212,281  
Community Trust Bancorp, Inc.
    4,057       101,831  
CVB Financial Corp. (a)
    26,047       247,446  
Danvers Bancorp, Inc.
    5,693       82,264  
Eagle Bancorp, Inc.* (a)
    4,992       58,806  
Enterprise Financial Services Corp. (a)
    4,750       45,790  
Financial Institutions, Inc.
    3,372       59,887  
First Bancorp, Inc.
    2,900       38,077  
First Bancorp, North Carolina
    4,500       65,205  
First Busey Corp. (a)
    15,987       72,421  
First Commonwealth Financial Corp.
    25,349       133,082  
First Community Bancshares, Inc.
    4,762       69,954  
First Financial Bancorp
    16,760       250,562  
First Financial Bankshares, Inc.
    5,961       286,664  
First Financial Corp.
    3,329       85,921  
First Interstate BancSystem, Inc.
    3,820       60,089  
First Merchants Corp.
    7,842       66,500  
First Midwest Bancorp, Inc.
    21,507       261,525  
First of Long Island Corp. (The)
    1,874       48,181  
First South Bancorp, Inc. (a)
    2,794       29,644  
FirstMerit Corp.
    31,141       533,445  
FNB Corp.
    33,322       267,576  
German American Bancorp, Inc. (a)
    3,552       54,346  
Glacier Bancorp, Inc.
    20,877       306,266  
Great Southern Bancorp, Inc. (a)
    3,000       60,930  
Green Bankshares, Inc.*
    3,656       46,687  
Hancock Holding Co.
    8,358       278,823  
Heartland Financial USA, Inc. (a)
    4,000       69,120  
Heritage Financial Corp.*
    2,845       42,590  
Home Bancorp, Inc.*
    2,791       36,032  
Home Bancshares, Inc.
    6,466       147,489  
Hudson Valley Holding Corp.
    3,488       80,643  
IBERIABANK Corp.
    7,717       397,271  
Independent Bank Corp.
    6,233       153,830  
International Bancshares Corp.
    15,437       257,644  
Investors Bancorp, Inc.*
    13,887       182,197  
Lakeland Bancorp, Inc.
    6,319       53,838  
Lakeland Financial Corp.
    4,815       96,204  
MainSource Financial Group, Inc.
    6,100       43,737  
MB Financial, Inc.
    15,421       283,592  
Merchants Bancshares, Inc. (a)
    1,663       36,952  
Metro Bancorp, Inc.*
    4,116       50,791  
MidSouth Bancorp, Inc. (a)
    2,500       31,925  
MidWestOne Financial Group, Inc.
    2,326       36,006  
Nara Bancorp, Inc.*
    11,300       95,259  
National Bankshares, Inc. (a)
    2,100       50,883  
National Penn Bancshares, Inc.
    36,900       221,769  
NBT Bancorp, Inc.
    10,016       204,527  
Northfield Bancorp, Inc.
    5,360       69,573  
Old National Bancorp
    25,220       261,279  
OmniAmerican Bancorp, Inc.*
    3,872       43,715  
Oriental Financial Group, Inc.
    9,621       121,802  
Orrstown Financial Services, Inc. (a)
    2,063       45,654  
Pacific Continental Corp. (a)
    5,714       54,112  
PacWest Bancorp
    9,032       165,376  
Park National Corp. (a)
    3,601       234,209  
Peapack Gladstone Financial Corp.
    2,795       32,701  
Penns Woods Bancorp, Inc. (a)
    1,360       41,371  
Peoples Bancorp, Inc.
    3,305       47,923  
Pinnacle Financial Partners, Inc.*
    9,900       127,215  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Commercial Banks (continued)
                 
PrivateBancorp, Inc.
    15,186     $ 168,261  
Prosperity Bancshares, Inc.
    13,431       466,727  
Renasant Corp. (a)
    6,400       91,840  
Republic Bancorp, Inc., Class A
    2,851       63,862  
S&T Bancorp, Inc. (a)
    7,240       143,062  
Sandy Spring Bancorp, Inc.
    7,114       99,667  
SCBT Financial Corp.
    3,766       132,639  
Sierra Bancorp (a)
    2,981       34,282  
Signature Bank*
    11,821       449,316  
Simmons First National Corp., Class A
    5,047       132,534  
Southside Bancshares, Inc.
    4,833       94,920  
Southwest Bancorp, Inc.
    5,756       76,497  
State Bancorp, Inc.
    5,286       50,217  
StellarOne Corp.
    6,900       88,113  
Sterling Bancorp
    7,888       70,992  
Sterling Bancshares, Inc.
    26,956       126,963  
Suffolk Bancorp (a)
    2,907       89,943  
Susquehanna Bancshares, Inc.
    37,816       315,007  
SVB Financial Group*
    12,076       497,893  
SY Bancorp, Inc. (a)
    3,550       81,579  
Taylor Capital Group, Inc.* (a)
    3,002       38,846  
Texas Capital Bancshares, Inc.*
    10,634       174,398  
Tompkins Financial Corp.
    2,330       87,957  
Tower Bancorp, Inc.
    1,809       39,599  
TowneBank (a)
    7,000       101,640  
Trico Bancshares (a)
    4,200       71,106  
Trustmark Corp.
    18,392       382,921  
UMB Financial Corp.
    9,056       322,031  
Umpqua Holdings Corp.
    33,366       383,042  
Union First Market Bankshares Corp.
    5,364       65,763  
United Bankshares, Inc. (a)
    11,273       269,876  
United Community Banks, Inc.*
    27,818       109,881  
Univest Corp of Pennsylvania
    4,974       86,150  
Virginia Commerce Bancorp, Inc.* (a)
    6,330       39,562  
Washington Banking Co. (a)
    4,627       59,179  
Washington Trust Bancorp, Inc.
    4,348       74,090  
Webster Financial Corp.
    18,994       340,752  
WesBanco, Inc.
    6,843       115,305  
West Bancorp, Inc.*
    4,997       34,030  
West Coast Bancorp (a)
    28,137       71,749  
Westamerica Bancorp
    8,329       437,439  
Western Alliance Bancorp*
    17,296       124,012  
Whitney Holding Corp.
    27,955       258,584  
Wilshire Bancorp, Inc. (a)
    5,800       50,750  
Wintrust Financial Corp.
    9,024       300,860  
                 
              17,311,108  
                 
 
 
Commercial Services & Supplies 2.5%
ABM Industries, Inc.
    15,146       317,309  
ACCO Brands Corp.*
    16,299       81,332  
American Reprographics Co.*
    11,054       96,501  
APAC Customer Services, Inc.*
    9,763       55,649  
ATC Technology Corp.*
    5,814       93,722  
Bowne & Co., Inc.
    11,856       133,024  
Brink’s Co. (The)
    13,772       262,081  
Casella Waste Systems, Inc., Class A*
    8,795       33,597  
Cenveo, Inc.*
    16,383       89,779  
Clean Harbors, Inc.*
    6,676       443,353  
Consolidated Graphics, Inc.*
    2,773       119,905  
Cornell Cos., Inc.*
    3,365       90,418  
Courier Corp.
    3,466       42,320  
Deluxe Corp.
    15,015       281,531  
EnergySolutions, Inc.
    25,863       131,643  
EnerNOC, Inc.*
    5,794       182,163  
Ennis, Inc.
    7,800       117,078  
Fuel Tech, Inc.* (a)
    5,400       34,128  
G&K Services, Inc., Class A
    5,500       113,575  
Geo Group, Inc. (The)*
    14,315       297,036  
Healthcare Services Group, Inc.
    12,901       244,474  
Herman Miller, Inc.
    16,709       315,299  
HNI Corp.
    13,232       365,071  
Innerworkings, Inc.*
    7,451       50,890  
Interface, Inc., Class A
    14,920       160,241  
Kimball International, Inc., Class B
    9,700       53,641  
Knoll, Inc.
    13,888       184,571  
M&F Worldwide Corp.*
    3,162       85,690  
McGrath Rentcorp
    7,051       160,622  
Metalico, Inc.* (a)
    11,212       44,624  
Mine Safety Appliances Co.
    7,586       187,981  
Mobile Mini, Inc.*
    10,682       173,903  
Multi-Color Corp.
    3,525       36,096  
Rollins, Inc.
    12,383       256,204  
Schawk, Inc.
    3,426       51,219  
Standard Parking Corp.*
    4,769       75,493  
Steelcase, Inc., Class A
    22,662       175,630  
SYKES Enterprises, Inc.*
    12,096       172,126  
Team, Inc.*
    5,693       74,294  
Tetra Tech, Inc.*
    17,912       351,254  
United Stationers, Inc.*
    7,027       382,761  
US Ecology, Inc.
    5,531       80,587  
Viad Corp.
    6,200       109,430  
Waste Services, Inc.*
    8,100       94,446  
                 
              6,902,691  
                 
 
 
Communications Equipment 2.7%
Acme Packet, Inc.*
    12,798       344,010  
ADC Telecommunications, Inc.*
    28,434       210,696  
ADTRAN, Inc.
    18,020       491,405  
Anaren, Inc.*
    4,460       66,632  
Arris Group, Inc.*
    36,913       376,144  
Aruba Networks, Inc.*
    21,409       304,864  
Aviat Networks, Inc.*
    18,071       65,598  
Bel Fuse, Inc., Class B
    3,100       51,181  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Communications Equipment (continued)
                 
BigBand Networks, Inc.*
    15,147     $ 45,744  
Black Box Corp.
    5,200       145,028  
Blue Coat Systems, Inc.*
    12,144       248,102  
Comtech Telecommunications Corp.*
    8,323       249,107  
DG FastChannel, Inc.*
    7,329       238,779  
Digi International, Inc.*
    7,400       61,198  
EMS Technologies, Inc.*
    4,614       69,302  
Emulex Corp.*
    23,471       215,464  
Extreme Networks*
    27,001       72,903  
Finisar Corp.*
    22,019       328,083  
Globecomm Systems, Inc.*
    6,710       55,358  
Harmonic, Inc.*
    28,518       155,138  
Hughes Communications, Inc.*
    2,974       72,357  
Infinera Corp.*
    25,870       166,344  
InterDigital, Inc.*
    12,731       314,328  
Ixia*
    9,700       83,323  
KVH Industries, Inc.* (a)
    4,300       53,406  
Loral Space & Communications, Inc.*
    3,271       139,737  
Netgear, Inc.*
    10,277       183,342  
Network Engines, Inc.*
    11,326       30,694  
Network Equipment Technologies, Inc.*
    9,604       33,518  
Oclaro, Inc.* (a)
    14,531       161,149  
Oplink Communications, Inc.*
    6,200       88,846  
Palm, Inc.*
    49,653       282,526  
PC-Tel, Inc.*
    6,331       31,908  
Plantronics, Inc.
    14,042       401,601  
Powerwave Technologies, Inc.* (a)
    39,900       61,446  
Riverbed Technology, Inc.*
    18,379       507,628  
Seachange International, Inc.*
    8,414       69,247  
ShoreTel, Inc.*
    13,600       63,104  
Sonus Networks, Inc.*
    62,087       168,256  
Sycamore Networks, Inc.
    5,795       96,313  
Symmetricom, Inc.*
    13,404       68,226  
Tekelec*
    19,881       263,224  
UTStarcom, Inc.*
    34,300       63,112  
ViaSat, Inc.*
    9,661       314,562  
                 
              7,512,933  
                 
 
 
Computers & Peripherals 0.9%
3PAR, Inc.* (a)
    11,445       106,553  
ADPT Corp.*
    32,400       93,636  
Avid Technology, Inc.*
    8,673       110,407  
Compellent Technologies, Inc.*
    6,840       82,901  
Cray, Inc.*
    10,729       59,868  
Electronics for Imaging, Inc.*
    13,244       129,129  
Hutchinson Technology, Inc.*
    7,458       32,293  
Hypercom Corp.*
    13,924       64,607  
Imation Corp.*
    8,966       82,397  
Immersion Corp.*
    8,500       43,010  
Intermec, Inc.*
    14,283       146,401  
Intevac, Inc.*
    6,600       70,422  
Isilon Systems, Inc.*
    7,913       101,603  
Netezza Corp.*
    14,928       204,215  
Novatel Wireless, Inc.*
    9,400       53,956  
Presstek, Inc.*
    8,565       30,234  
Quantum Corp.*
    63,309       119,021  
Rimage Corp.*
    2,932       46,414  
Silicon Graphics International Corp.*
    9,000       63,720  
STEC, Inc.* (a)
    11,835       148,648  
Stratasys, Inc.*
    6,036       148,244  
Super Micro Computer, Inc.*
    7,251       97,888  
Synaptics, Inc.* (a)
    9,832       270,380  
Xyratex Ltd.*
    8,877       125,610  
                 
              2,431,557  
                 
 
 
Construction & Engineering 0.8%
Comfort Systems USA, Inc.
    11,300       109,158  
Dycom Industries, Inc.*
    11,435       97,769  
EMCOR Group, Inc.*
    19,256       446,162  
Furmanite Corp.*
    11,100       44,067  
Granite Construction, Inc.
    10,078       237,639  
Great Lakes Dredge & Dock Corp.
    17,516       105,096  
Insituform Technologies, Inc., Class A*
    11,481       235,131  
Layne Christensen Co.*
    5,799       140,742  
MasTec, Inc.*
    15,496       145,662  
Michael Baker Corp.*
    2,300       80,270  
MYR Group, Inc.*
    5,960       99,472  
Northwest Pipe Co.*
    2,788       52,972  
Orion Marine Group, Inc.*
    7,904       112,237  
Pike Electric Corp.*
    5,000       47,100  
Primoris Services Corp. (a)
    6,533       41,158  
Sterling Construction Co., Inc.*
    4,855       62,824  
Tutor Perini Corp.*
    7,800       128,544  
                 
              2,186,003  
                 
 
 
Construction Materials 0.1%
Headwaters, Inc.*
    18,348       52,108  
Texas Industries, Inc.
    6,048       178,658  
United States Lime & Minerals, Inc.*
    817       31,471  
                 
              262,237  
                 
 
 
Consumer Finance 0.6%
Advance America Cash Advance Centers, Inc.
    16,407       67,761  
Cardtronics, Inc.*
    8,081       104,730  
Cash America International, Inc.
    8,617       295,305  
Credit Acceptance Corp.*
    1,877       91,541  
Dollar Financial Corp.*
    7,300       144,467  
EZCORP, Inc., Class A*
    13,500       250,425  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Consumer Finance (continued)
                 
First Cash Financial Services, Inc.*
    8,878     $ 193,540  
First Marblehead Corp. (The)*
    17,605       41,372  
Nelnet, Inc., Class A
    7,802       150,422  
Student Loan Corp. (The)
    1,274       30,678  
World Acceptance Corp.* (a)
    4,800       183,888  
                 
              1,554,129  
                 
 
 
Containers & Packaging 0.5%
AEP Industries, Inc.*
    1,445       34,507  
Boise, Inc.*
    20,495       112,518  
Graham Packaging Co., Inc.*
    4,916       58,844  
Graphic Packaging Holding Co.*
    33,215       104,627  
Myers Industries, Inc.
    10,503       84,969  
Rock-Tenn Co., Class A
    11,240       558,291  
Silgan Holdings, Inc.
    15,520       440,458  
                 
              1,394,214  
                 
 
 
Distributors 0.0%†
               
Audiovox Corp., Class A*
    5,600       41,160  
Core-Mark Holding Co., Inc.*
    3,256       89,214  
                 
              130,374  
                 
 
 
Diversified Consumer Services 1.2%
American Public Education, Inc.*
    5,392       235,630  
Bridgepoint Education, Inc.*
    5,717       90,386  
Capella Education Co.*
    4,893       398,046  
Coinstar, Inc.* (a)
    9,215       395,969  
Corinthian Colleges, Inc.* (a)
    25,492       251,096  
CPI Corp.
    1,612       36,141  
Grand Canyon Education, Inc.*
    9,099       213,190  
K12, Inc.*
    7,380       163,688  
Lincoln Educational Services Corp.*
    4,817       99,182  
Mac-Gray Corp.
    3,600       40,104  
Matthews International Corp., Class A
    8,708       254,970  
Pre-Paid Legal Services, Inc.* (a)
    2,199       100,033  
Regis Corp.
    16,662       259,427  
Sotheby’s
    19,493       445,805  
Steiner Leisure Ltd.*
    4,397       169,021  
Stewart Enterprises, Inc., Class A
    23,702       128,228  
Universal Technical Institute, Inc.*
    6,157       145,551  
                 
              3,426,467  
                 
 
 
Diversified Financial Services 0.5%
Asta Funding, Inc. (a)
    3,734       36,855  
Compass Diversified Holdings
    9,746       130,694  
Encore Capital Group, Inc.*
    4,172       85,985  
Life Partners Holdings, Inc. (a)
    2,333       47,733  
MarketAxess Holdings, Inc.
    8,015       110,527  
Marlin Business Services Corp.*
    2,742       33,151  
Medallion Financial Corp.
    5,719       37,745  
MSCI, Inc., Class A*
    1       27  
NewStar Financial, Inc.*
    8,653       55,033  
PHH Corp.*
    15,993       304,507  
Pico Holdings, Inc.*
    6,587       197,412  
Portfolio Recovery Associates, Inc.*
    4,965       331,563  
                 
              1,371,232  
                 
 
 
Diversified Telecommunication Services 0.7%
AboveNet, Inc.*
    6,542       308,652  
Alaska Communications Systems Group, Inc. (a)
    13,400       113,766  
Atlantic Tele-Network, Inc.
    2,753       113,699  
Cbeyond, Inc.*
    7,902       98,775  
Cincinnati Bell, Inc.*
    58,631       176,479  
Cogent Communications Group, Inc.*
    13,400       101,572  
Consolidated Communications Holdings, Inc.
    7,601       129,293  
General Communication, Inc., Class A*
    14,324       108,719  
Global Crossing Ltd.*
    9,120       96,399  
Globalstar, Inc.*
    22,793       35,101  
IDT Corp., Class B*
    4,483       57,158  
Iridium Communications, Inc.* (a)
    10,077       101,173  
Neutral Tandem, Inc.*
    9,651       108,574  
PAETEC Holding Corp.*
    37,474       127,786  
Premiere Global Services, Inc.*
    17,662       111,977  
Vonage Holdings Corp.*
    31,107       71,546  
                 
              1,860,669  
                 
 
 
Electric Utilities 1.2%
Allete, Inc.
    9,020       308,845  
Central Vermont Public Service Corp.
    3,943       77,835  
Cleco Corp.
    17,460       461,119  
El Paso Electric Co.*
    12,761       246,925  
Empire District Electric Co. (The)
    11,869       222,781  
IDACORP, Inc.
    13,907       462,686  
MGE Energy, Inc.
    6,808       245,360  
PNM Resources, Inc.
    25,495       285,034  
Portland General Electric Co.
    21,883       401,115  
UIL Holdings Corp.
    8,841       221,290  
Unisource Energy Corp.
    10,450       315,381  
Unitil Corp.
    3,806       79,584  
                 
              3,327,955  
                 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Electrical Equipment 1.9%
A123 Systems, Inc.*
    21,309     $ 200,944  
Acuity Brands, Inc.
    12,610       458,752  
Advanced Battery Technologies, Inc.* (a)
    17,621       57,797  
American Superconductor Corp.* (a)
    13,090       349,372  
AZZ, Inc.
    3,651       134,247  
Baldor Electric Co.
    13,637       492,023  
Belden, Inc.
    13,680       300,960  
Brady Corp., Class A
    14,089       351,098  
Broadwind Energy, Inc.* (a)
    27,681       77,507  
Capstone Turbine Corp.*
    72,070       70,629  
Encore Wire Corp.
    5,529       100,573  
Ener1, Inc.* (a)
    18,278       61,780  
Energy Conversion Devices, Inc.* (a)
    13,704       56,186  
EnerSys*
    14,025       299,714  
Evergreen Solar, Inc.* (a)
    56,600       38,601  
Franklin Electric Co., Inc.
    6,835       196,985  
FuelCell Energy, Inc.* (a)
    22,744       26,838  
Generac Holdings, Inc.*
    5,732       80,305  
GrafTech International Ltd.*
    35,014       511,905  
GT Solar International, Inc.* (a)
    18,275       102,340  
II-VI, Inc.*
    7,337       217,395  
LaBarge, Inc.*
    3,913       44,647  
LSI Industries, Inc.
    6,100       29,768  
Microvision, Inc.* (a)
    26,339       77,963  
Polypore International, Inc.*
    6,427       146,150  
Powell Industries, Inc.*
    2,659       72,697  
PowerSecure International, Inc.*
    5,581       50,731  
Satcon Technology Corp.*
    21,928       62,714  
UQM Technologies, Inc.*
    11,040       37,426  
Vicor Corp.*
    5,906       73,766  
Woodward Governor Co.
    17,757       453,336  
                 
              5,235,149  
                 
 
 
Electronic Equipment, Instruments & Components 2.3%
Agilysys, Inc.
    5,660       37,865  
Anixter International, Inc.*
    8,163       347,744  
Bell Microproducts, Inc.*
    9,800       68,404  
Benchmark Electronics, Inc.*
    18,389       291,466  
Brightpoint, Inc.*
    20,707       144,949  
Checkpoint Systems, Inc.*
    11,533       200,213  
Cogent, Inc.*
    15,313       137,970  
Cognex Corp.
    11,625       204,367  
Coherent, Inc.*
    7,392       253,546  
Comverge, Inc.* (a)
    7,594       68,042  
CPI International, Inc.*
    2,331       36,340  
CTS Corp.
    10,096       93,287  
Daktronics, Inc. (a)
    10,100       75,750  
DDi Corp.
    4,200       31,626  
DTS, Inc.*
    5,100       167,637  
Echelon Corp.* (a)
    9,800       71,834  
Electro Rent Corp.
    5,100       65,229  
Electro Scientific Industries, Inc.*
    8,324       111,209  
FARO Technologies, Inc.*
    4,818       90,145  
Gerber Scientific, Inc.*
    7,735       41,382  
ICx Technologies, Inc.* (a)
    3,800       27,740  
Insight Enterprises, Inc.*
    13,698       180,266  
IPG Photonics Corp.*
    7,680       116,966  
Keithley Instruments, Inc.
    3,506       30,958  
L-1 Identity Solutions, Inc.*
    22,620       185,258  
Littelfuse, Inc.*
    6,423       203,031  
Maxwell Technologies, Inc.*
    7,874       89,764  
Measurement Specialties, Inc.*
    4,400       60,280  
Mercury Computer Systems, Inc.*
    7,094       83,213  
Methode Electronics, Inc.
    11,174       108,835  
MTS Systems Corp.
    4,800       139,200  
Multi-Fineline Electronix, Inc.*
    3,019       75,354  
Newport Corp.*
    10,958       99,279  
OSI Systems, Inc.*
    4,758       132,130  
Park Electrochemical Corp.
    6,048       147,632  
Plexus Corp.*
    11,783       315,077  
Power-One, Inc.*
    17,174       115,925  
RadiSys Corp.*
    7,361       70,077  
Richardson Electronics Ltd.
    4,573       41,157  
Rofin-Sinar Technologies, Inc.*
    9,338       194,417  
Rogers Corp.*
    4,642       128,908  
Sanmina-SCI Corp.*
    23,259       316,555  
ScanSource, Inc.*
    7,852       195,750  
Smart Modular Technologies (WWH), Inc.*
    15,597       91,242  
Spectrum Control, Inc.*
    3,800       53,124  
SYNNEX Corp.*
    6,572       168,375  
Technitrol, Inc.
    12,709       40,160  
TTM Technologies, Inc.*
    23,506       223,307  
Universal Display Corp.* (a)
    8,800       158,224  
X-Rite, Inc.* (a)
    10,601       39,118  
Zygo Corp.*
    5,482       44,459  
                 
              6,414,786  
                 
 
 
Energy Equipment & Services 1.8%
Basic Energy Services, Inc.*
    6,900       53,130  
Boots & Coots, Inc.*
    24,431       72,072  
Bristow Group, Inc.*
    10,447       307,142  
Cal Dive International, Inc.*
    27,651       161,758  
CARBO Ceramics, Inc.
    5,531       399,283  
Complete Production Services, Inc.*
    22,756       325,411  
Dawson Geophysical Co.*
    2,400       51,048  
Dril-Quip, Inc.*
    9,862       434,125  
Global Industries Ltd.*
    29,625       133,016  
Gulf Island Fabrication, Inc.
    4,343       67,403  
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Energy Equipment & Services (continued)
                 
Gulfmark Offshore, Inc., Class A*
    6,800     $ 178,160  
Helix Energy Solutions Group, Inc.*
    30,412       327,537  
Hercules Offshore, Inc.*
    34,269       83,274  
Hornbeck Offshore Services, Inc.*
    6,810       99,426  
ION Geophysical Corp.*
    36,740       127,855  
Key Energy Services, Inc.*
    36,629       336,254  
Lufkin Industries, Inc.
    8,741       340,812  
Matrix Service Co.*
    7,800       72,618  
Natural Gas Services Group, Inc.*
    3,679       55,663  
Newpark Resources, Inc.*
    26,193       158,468  
OYO Geospace Corp.*
    1,246       60,406  
Parker Drilling Co.*
    34,297       135,473  
PHI, Inc., Non-Voting Shares*
    4,103       57,811  
Pioneer Drilling Co.*
    16,011       90,782  
RPC, Inc.
    8,505       116,093  
Seahawk Drilling, Inc.*
    3,495       33,972  
Superior Well Services, Inc.* (a)
    6,765       113,111  
T-3 Energy Services, Inc.*
    3,914       109,201  
Tesco Corp.*
    8,955       109,968  
TETRA Technologies, Inc.*
    22,102       200,686  
Union Drilling, Inc.*
    4,849       26,718  
Vantage Drilling Co.*
    37,935       51,212  
Willbros Group, Inc.*
    11,815       87,431  
                 
              4,977,319  
                 
 
 
Food & Staples Retailing 0.9%
Andersons, Inc. (The)
    5,400       175,986  
Arden Group, Inc., Class A
    405       35,587  
Casey’s General Stores, Inc.
    14,848       518,195  
Great Atlantic & Pacific Tea Co.* (a)
    9,970       38,883  
Ingles Markets, Inc., Class A
    4,365       65,693  
Nash Finch Co.
    3,790       129,466  
Pantry, Inc. (The)*
    6,894       97,274  
PriceSmart, Inc.
    4,759       110,552  
Rite Aid Corp.*
    163,822       160,546  
Ruddick Corp.
    12,771       395,773  
Spartan Stores, Inc.
    6,897       94,627  
United Natural Foods, Inc.*
    12,587       376,100  
Village Super Market, Inc., Class A
    2,095       54,994  
Weis Markets, Inc.
    3,333       109,689  
Winn-Dixie Stores, Inc.*
    16,300       157,132  
                 
              2,520,497  
                 
 
 
Food Products 1.4%
American Italian Pasta Co., Class A*
    6,362       336,359  
B&G Foods, Inc., Class A
    14,048       151,438  
Calavo Growers, Inc. (a)
    3,399       61,046  
Cal-Maine Foods, Inc. (a)
    4,129       131,839  
Chiquita Brands International, Inc.*
    13,172       160,040  
Darling International, Inc.*
    24,111       181,074  
Diamond Foods, Inc.
    6,364       261,560  
Dole Food Company, Inc.* (a)
    10,646       111,038  
Farmer Bros Co. (a)
    2,200       33,198  
Fresh Del Monte Produce, Inc.*
    11,539       233,549  
Hain Celestial Group, Inc. (The)*
    11,974       241,516  
Imperial Sugar Co. (a)
    3,703       37,400  
J&J Snack Foods Corp.
    4,153       174,841  
John B. Sanfilippo & Son, Inc.*
    2,745       39,720  
Lancaster Colony Corp.
    5,597       298,656  
Lance, Inc.
    7,631       125,835  
Limoneira Co.
    2,365       51,462  
Pilgrim’s Pride Corp.* (a)
    14,968       98,340  
Sanderson Farms, Inc.
    6,587       334,224  
Seneca Foods Corp., Class A*
    2,362       76,198  
Smart Balance, Inc.*
    19,000       77,710  
Synutra International, Inc.* (a)
    5,360       86,671  
Tootsie Roll Industries, Inc.
    6,893       163,020  
TreeHouse Foods, Inc.*
    10,094       460,892  
                 
              3,927,626  
                 
 
 
Gas Utilities 1.2%
Chesapeake Utilities Corp.
    2,970       93,258  
Laclede Group, Inc. (The)
    6,630       219,652  
New Jersey Resources Corp.
    11,867       417,718  
Nicor, Inc. (b)
    12,933       523,786  
Northwest Natural Gas Co.
    7,640       332,875  
Piedmont Natural Gas Co., Inc.
    20,602       521,231  
South Jersey Industries, Inc.
    8,586       368,855  
Southwest Gas Corp.
    13,159       388,190  
WGL Holdings, Inc.
    14,558       495,409  
                 
              3,360,974  
                 
 
 
Health Care Equipment & Supplies 3.9%
Abaxis, Inc.*
    6,438       137,966  
ABIOMED, Inc.*
    9,310       90,121  
Accuray, Inc.*
    15,021       99,589  
AGA Medical Holdings, Inc.* (a)
    4,054       51,445  
Align Technology, Inc.*
    17,252       256,537  
Alphatec Holdings, Inc.*
    15,111       70,115  
American Medical Systems Holdings, Inc.*
    21,807       482,371  
Analogic Corp.
    3,752       170,754  
AngioDynamics, Inc.*
    7,300       107,675  
Antares Pharma, Inc.* (a)
    22,010       38,738  
Arthrocare Corp.*
    7,874       241,338  
Atrion Corp.
    474       64,014  
ATS Medical, Inc.*
    15,466       61,400  
Cantel Medical Corp.
    3,766       62,892  
 
 
 
2010 Semiannual Report 13

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Health Care Equipment & Supplies (continued)
                 
Cerus Corp.*
    12,295     $ 38,852  
Conceptus, Inc.*
    9,000       140,220  
CONMED Corp.*
    8,496       158,281  
CryoLife, Inc.*
    8,577       46,230  
Cutera, Inc.*
    4,000       36,840  
Cyberonics, Inc.*
    8,151       193,016  
Cynosure, Inc., Class A*
    2,900       31,233  
Delcath Systems, Inc.* (a)
    10,991       69,683  
DexCom, Inc.*
    16,982       196,312  
DynaVox, Inc., Class A* (a)
    2,830       45,308  
Endologix, Inc.*
    14,608       66,174  
ev3, Inc.*
    24,193       542,165  
Exactech, Inc.*
    2,500       42,700  
Greatbatch, Inc.*
    6,700       149,477  
Haemonetics Corp.*
    7,181       384,327  
Hansen Medical, Inc.* (a)
    13,151       28,012  
HealthTronics, Inc.*
    13,583       65,606  
HeartWare International, Inc.*
    2,757       193,183  
ICU Medical, Inc.*
    3,372       108,477  
Immucor, Inc.*
    20,224       385,267  
Insulet Corp.*
    11,210       168,711  
Integra LifeSciences Holdings Corp.*
    6,073       224,701  
Invacare Corp.
    8,449       175,232  
IRIS International, Inc.*
    4,876       49,443  
Kensey Nash Corp.*
    2,278       54,011  
MAKO Surgical Corp.* (a)
    7,612       94,769  
Masimo Corp.
    15,100       359,531  
Medical Action Industries, Inc.*
    4,309       51,665  
MELA Sciences, Inc.* (a)
    6,900       51,336  
Meridian Bioscience, Inc.
    11,820       200,940  
Merit Medical Systems, Inc.*
    8,215       132,015  
Micrus Endovascular Corp.*
    4,800       99,792  
Natus Medical, Inc.*
    8,362       136,217  
Neogen Corp.*
    6,774       176,463  
NuVasive, Inc.* (a)
    11,392       403,960  
NxStage Medical, Inc.*
    7,383       109,564  
OraSure Technologies, Inc.*
    13,900       64,357  
Orthofix International NV*
    5,157       165,282  
Orthovita, Inc.*
    19,800       40,194  
Palomar Medical Technologies, Inc.*
    5,497       61,511  
Quidel Corp.*
    6,331       80,340  
Rochester Medical Corp.*
    3,368       31,828  
RTI Biologics, Inc.*
    16,719       48,987  
SenoRx, Inc.*
    5,032       55,251  
Sirona Dental Systems, Inc.*
    9,698       337,878  
Solta Medical, Inc.*
    18,182       34,546  
Somanetics Corp.*
    3,522       87,874  
SonoSite, Inc.*
    4,287       116,221  
Spectranetics Corp.*
    10,165       52,655  
Staar Surgical Co.*
    10,570       60,460  
Stereotaxis, Inc.* (a)
    8,944       29,605  
STERIS Corp.
    17,099       531,437  
SurModics, Inc.* (a)
    5,066       83,133  
Symmetry Medical, Inc.*
    10,500       110,670  
Syneron Medical Ltd.*
    10,398       106,891  
Synovis Life Technologies, Inc.*
    3,401       51,967  
TomoTherapy, Inc.*
    15,072       47,929  
Unilife Corp.*
    14,264       83,016  
Vascular Solutions, Inc.*
    5,061       63,263  
Volcano Corp.*
    14,660       319,881  
West Pharmaceutical Services, Inc.
    9,545       348,297  
Wright Medical Group, Inc.*
    11,300       187,693  
Young Innovations, Inc.
    1,708       48,080  
Zoll Medical Corp.*
    6,248       169,321  
                 
              10,763,235  
                 
 
 
Health Care Providers & Services 3.6%
Accretive Health, Inc.*
    3,387       44,810  
Air Methods Corp.*
    3,264       97,104  
Alliance HealthCare Services, Inc.*
    8,119       32,801  
Allied Healthcare International, Inc.*
    14,520       33,686  
Almost Family, Inc.*
    2,396       83,692  
Amedisys, Inc.* (a)
    8,264       363,368  
America Service Group, Inc.
    2,815       48,418  
American Dental Partners, Inc.*
    4,957       60,029  
AMERIGROUP Corp.*
    14,944       485,381  
AMN Healthcare Services, Inc.*
    9,991       74,733  
Amsurg Corp.*
    8,887       158,366  
Assisted Living Concepts, Inc., Class A*
    2,907       86,018  
Bio-Reference Labs, Inc.*
    6,965       154,414  
BioScrip, Inc.*
    11,700       61,308  
Capital Senior Living Corp.*
    8,432       41,907  
CardioNet, Inc.*
    7,300       40,004  
Catalyst Health Solutions, Inc.*
    11,000       379,500  
Centene Corp.*
    14,155       304,333  
Chemed Corp.
    6,576       359,313  
Chindex International, Inc.*
    4,158       52,100  
Clarient, Inc.*
    16,660       51,313  
Continucare Corp.*
    9,063       30,361  
CorVel Corp.*
    2,136       72,175  
Cross Country Healthcare, Inc.*
    9,300       83,607  
Emeritus Corp.* (a)
    5,913       96,441  
Ensign Group, Inc. (The)
    4,224       69,780  
Five Star Quality Care, Inc.*
    9,981       30,143  
Genoptix, Inc.*
    5,028       86,482  
Gentiva Health Services, Inc.*
    8,217       221,941  
Hanger Orthopedic Group, Inc.*
    7,500       134,700  
Health Grades, Inc.*
    7,881       47,286  
HealthSouth Corp.*
    27,661       517,537  
Healthspring, Inc.*
    16,806       260,661  
Healthways, Inc.*
    9,954       118,652  
 
 
 
14 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Health Care Providers & Services (continued)
                 
HMS Holdings Corp.*
    7,924     $ 429,639  
inVentiv Health, Inc.*
    9,941       254,490  
IPC The Hospitalist Co., Inc.*
    4,750       119,225  
Kindred Healthcare, Inc.*
    11,482       147,429  
Landauer, Inc.
    2,769       168,577  
LCA-Vision, Inc.* (a)
    5,625       31,163  
LHC Group, Inc.*
    4,523       125,513  
Magellan Health Services, Inc.*
    9,511       345,440  
Medcath Corp.*
    6,261       49,211  
Metropolitan Health Networks, Inc.*
    11,915       44,443  
Molina Healthcare, Inc.*
    3,814       109,843  
MWI Veterinary Supply, Inc.*
    3,672       184,555  
National HealthCare Corp.
    2,561       88,252  
Odyssey HealthCare, Inc.*
    9,800       261,856  
Owens & Minor, Inc.
    18,201       516,544  
PharMerica Corp.*
    8,944       131,119  
Providence Service Corp. (The)*
    3,914       54,796  
PSS World Medical, Inc.*
    16,513       349,250  
Psychiatric Solutions, Inc.*
    16,548       541,451  
RehabCare Group, Inc.*
    7,185       156,489  
Res-Care, Inc.*
    7,500       72,450  
Rural/Metro Corp.* (a)
    5,756       46,854  
Select Medical Holdings Corp.*
    14,513       98,398  
Skilled Healthcare Group, Inc., Class A*
    6,255       42,471  
Sun Healthcare Group, Inc.*
    13,000       105,040  
Sunrise Senior Living, Inc.*
    16,563       46,045  
Team Health Holdings, Inc.*
    4,512       58,295  
Triple-S Management Corp., Class B*
    6,030       111,857  
U.S. Physical Therapy, Inc.*
    3,049       51,467  
Universal American Corp.*
    9,269       133,474  
Virtual Radiologic Corp.* (a)
    2,225       38,181  
WellCare Health Plans, Inc.*
    12,307       292,168  
                 
              9,988,349  
                 
 
 
Health Care Technology 0.7%
athenahealth, Inc.* (a)
    9,690       253,200  
Computer Programs & Systems, Inc.
    2,897       118,545  
Eclipsys Corp.*
    16,763       299,052  
MedAssets, Inc.*
    12,594       290,670  
Medidata Solutions, Inc.*
    5,610       86,899  
MedQuist, Inc.
    3,774       29,852  
Merge Healthcare, Inc.*
    15,677       45,934  
Omnicell, Inc.*
    9,639       112,680  
Phase Forward, Inc.*
    11,842       197,525  
Quality Systems, Inc.
    5,484       318,017  
Transcend Services, Inc.*
    2,799       37,786  
Vital Images, Inc.*
    4,402       56,125  
                 
              1,846,285  
                 
Hotels, Restaurants & Leisure 2.4%
AFC Enterprises, Inc.*
    7,877       71,681  
Ambassadors Group, Inc.
    5,839       65,922  
Ameristar Casinos, Inc.
    8,024       120,841  
Biglari Holdings, Inc.*
    428       122,793  
BJ’s Restaurants, Inc.*
    6,694       157,978  
Bob Evans Farms, Inc.
    8,978       221,038  
Boyd Gaming Corp.*
    15,836       134,448  
Buffalo Wild Wings, Inc.*
    5,317       194,496  
California Pizza Kitchen, Inc.*
    5,801       87,885  
CEC Entertainment, Inc.*
    6,437       226,969  
Cheesecake Factory, Inc. (The)*
    17,600       391,776  
Churchill Downs, Inc.
    3,408       111,782  
CKE Restaurants, Inc.
    16,152       202,385  
Cracker Barrel Old Country Store, Inc.
    6,996       325,734  
Denny’s Corp.*
    29,100       75,660  
DineEquity, Inc.* (a)
    5,300       147,976  
Domino’s Pizza, Inc.*
    10,841       122,503  
Gaylord Entertainment Co.*
    10,185       224,987  
Interval Leisure Group, Inc.*
    11,768       146,512  
Isle of Capri Casinos, Inc.*
    4,700       43,522  
Jack in the Box, Inc.*
    16,061       312,386  
Jamba, Inc.*
    18,778       39,997  
Krispy Kreme Doughnuts, Inc.* (a)
    17,700       59,649  
Landry’s Restaurants, Inc.*
    2,272       55,573  
Life Time Fitness, Inc.*
    12,155       386,407  
Marcus Corp.
    6,500       61,490  
McCormick & Schmick’s Seafood Restaurants, Inc.*
    4,744       35,390  
Monarch Casino & Resort, Inc.*
    2,986       30,248  
Morgans Hotel Group Co.* (a)
    6,954       42,837  
Multimedia Games, Inc.*
    8,720       39,240  
O’Charleys, Inc.*
    5,896       31,249  
Orient-Express Hotels Ltd., Class A*
    26,570       196,618  
P.F. Chang’s China Bistro, Inc. (a)
    6,762       268,113  
Papa John’s International, Inc.*
    6,149       142,165  
Peet’s Coffee & Tea, Inc.*
    3,448       135,403  
Pinnacle Entertainment, Inc.*
    17,913       169,457  
Red Robin Gourmet Burgers, Inc.*
    4,674       80,206  
Ruby Tuesday, Inc.*
    18,969       161,237  
Ruth’s Hospitality Group, Inc.*
    9,194       38,431  
Scientific Games Corp., Class A*
    18,981       174,625  
Shuffle Master, Inc.*
    15,845       126,918  
Sonic Corp.*
    18,053       139,911  
Speedway Motorsports, Inc.
    3,855       52,274  
Texas Roadhouse, Inc.*
    16,870       212,899  
Vail Resorts, Inc.*
    10,561       368,685  
                 
              6,558,296  
                 
 
 
 
2010 Semiannual Report 15

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Household Durables 0.7%
American Greetings Corp., Class A
    11,676     $ 219,042  
Beazer Homes USA, Inc.* (a)
    21,984       79,802  
Blyth, Inc.
    1,750       59,623  
Cavco Industries, Inc.*
    2,000       70,360  
CSS Industries, Inc.
    2,318       38,247  
Ethan Allen Interiors, Inc.
    7,256       101,511  
Furniture Brands International, Inc.*
    13,037       68,053  
Helen of Troy Ltd.*
    9,068       200,040  
Hooker Furniture Corp.
    3,593       38,301  
Hovnanian Enterprises, Inc., Class A* (a)
    15,795       58,126  
iRobot Corp.* (a)
    6,226       116,987  
Kid Brands, Inc.*
    4,039       28,394  
La-Z-Boy, Inc.*
    15,300       113,679  
Libbey, Inc.* (a)
    4,953       64,290  
Lifetime Brands, Inc.*
    2,977       43,524  
M/I Homes, Inc.*
    5,500       53,020  
Meritage Homes Corp.*
    9,380       152,706  
National Presto Industries, Inc.
    1,414       131,304  
Ryland Group, Inc.
    12,827       202,923  
Sealy Corp.* (a)
    14,816       39,559  
Skyline Corp.
    2,217       39,928  
Standard Pacific Corp.*
    31,283       104,172  
Universal Electronics, Inc.*
    4,197       69,796  
                 
              2,093,387  
                 
 
 
Household Products 0.2%
Central Garden and Pet Co., Class A*
    16,884       151,450  
Oil-Dri Corp of America (a)
    1,951       44,775  
Spectrum Brands Holdings, Inc.*
    5,400       136,944  
WD-40 Co.
    5,034       168,136  
                 
              501,305  
                 
 
 
Independent Power Producers & Energy Traders 0.0%†
Dynegy, Inc.*
    29,946       115,292  
                 
 
 
Industrial Conglomerates 0.3%
Otter Tail Corp.
    10,606       205,014  
Raven Industries, Inc.
    4,773       160,898  
Seaboard Corp.
    94       141,940  
Standex International Corp.
    3,718       94,251  
Tredegar Corp.
    7,193       117,390  
                 
              719,493  
                 
 
 
Information Technology Services 1.9%
Acxiom Corp.*
    19,938       292,889  
CACI International, Inc., Class A*
    8,766       372,380  
Cass Information Systems, Inc.
    2,580       88,365  
CIBER, Inc.*
    19,308       53,483  
Computer Task Group, Inc.*
    4,500       29,070  
CSG Systems International, Inc.*
    9,973       182,805  
CyberSource Corp.*
    20,624       526,531  
Echo Global Logistics, Inc.* (a)
    3,391       41,404  
Euronet Worldwide, Inc.*
    14,370       183,792  
ExlService Holdings, Inc.*
    4,500       77,265  
Forrester Research, Inc.*
    4,312       130,481  
Global Cash Access Holdings, Inc.*
    14,888       107,342  
Heartland Payment Systems, Inc.
    11,100       164,724  
iGate Corp.
    7,000       89,740  
infoGROUP, Inc.*
    11,612       92,664  
Integral Systems, Inc.*
    5,472       34,747  
Lionbridge Technologies, Inc.*
    17,927       81,926  
Mantech International Corp., Class A*
    6,449       274,534  
MAXIMUS, Inc.
    5,087       294,385  
MoneyGram International, Inc.*
    25,000       61,250  
NCI, Inc., Class A*
    1,951       44,054  
Online Resources Corp.*
    8,399       34,856  
RightNow Technologies, Inc.*
    6,497       101,938  
Sapient Corp.
    30,038       304,585  
SRA International, Inc., Class A*
    12,470       245,285  
Syntel, Inc.
    3,848       130,640  
TeleTech Holdings, Inc.*
    8,875       114,399  
Tier Technologies, Inc., Class B*
    4,779       29,056  
TNS, Inc.*
    7,673       133,817  
Unisys Corp.*
    12,406       229,387  
VeriFone Holdings, Inc.*
    24,927       471,868  
Virtusa Corp.*
    4,318       40,287  
Wright Express Corp.*
    11,256       334,303  
                 
              5,394,252  
                 
 
 
Insurance 2.9%
Alterra Capital Holdings Ltd.
    27,943       524,769  
Ambac Financial Group, Inc.* (a)
    84,516       56,626  
American Equity Investment Life Holding Co.
    16,880       174,202  
American Physicians Capital, Inc.
    2,385       73,577  
American Physicians Service Group, Inc.
    2,124       51,932  
American Safety Insurance Holdings Ltd.*
    3,287       51,672  
AMERISAFE, Inc.*
    5,625       98,719  
Amtrust Financial Services, Inc.
    6,681       80,439  
Argo Group International Holdings Ltd.
    9,009       275,585  
Baldwin & Lyons, Inc., Class B
    2,700       56,727  
 
 
 
16 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Insurance (continued)
                 
Citizens, Inc.*
    10,400     $ 69,264  
CNA Surety Corp.*
    5,215       83,805  
CNO Financial Group, Inc.*
    64,507       319,310  
Crawford & Co., Class B* (a)
    8,187       25,871  
Delphi Financial Group, Inc., Class A
    13,669       333,660  
Donegal Group, Inc., Class A
    3,600       44,244  
eHealth, Inc.*
    7,072       80,409  
EMC Insurance Group, Inc. (a)
    1,600       35,088  
Employers Holdings, Inc.
    12,471       183,698  
Enstar Group Ltd.*
    2,046       135,936  
FBL Financial Group, Inc., Class A
    3,890       81,690  
First American Financial Corp.
    30,204       382,987  
First Mercury Financial Corp.
    4,522       47,843  
Flagstone Reinsurance Holdings SA
    15,347       166,054  
FPIC Insurance Group, Inc.*
    3,011       77,232  
Greenlight Capital Re Ltd., Class A*
    8,349       210,311  
Hallmark Financial Services*
    3,695       36,765  
Harleysville Group, Inc.
    3,438       106,681  
Hilltop Holdings, Inc.*
    11,892       119,039  
Horace Mann Educators Corp.
    11,435       174,955  
Infinity Property & Casualty Corp.
    4,042       186,659  
Kansas City Life Insurance Co.
    1,259       37,229  
Maiden Holdings Ltd.
    15,193       99,818  
Meadowbrook Insurance Group, Inc.
    16,090       138,857  
Montpelier Re Holdings Ltd.
    20,577       307,215  
National Financial Partners Corp.*
    12,500       122,125  
National Interstate Corp.
    2,000       39,640  
National Western Life Insurance Co., Class A
    634       96,850  
Navigators Group, Inc. (The)*
    3,566       146,670  
NYMAGIC, Inc.
    1,500       28,935  
Phoenix Cos., Inc. (The)*
    34,336       72,449  
Platinum Underwriters Holdings Ltd.
    12,947       469,847  
PMA Capital Corp., Class A*
    10,089       66,083  
Presidential Life Corp.
    6,126       55,747  
Primerica, Inc.*
    7,261       155,676  
ProAssurance Corp.*
    9,378       532,295  
RLI Corp.
    5,279       277,200  
Safety Insurance Group, Inc.
    3,794       140,454  
SeaBright Holdings, Inc.
    6,843       64,872  
Selective Insurance Group, Inc.
    15,689       233,138  
State Auto Financial Corp.
    4,375       67,856  
Stewart Information Services Corp.
    5,394       48,654  
Tower Group, Inc.
    13,255       285,380  
United America Indemnity Ltd., Class A*
    8,473       62,361  
United Fire & Casualty Co.
    6,770       134,181  
                 
              8,029,281  
                 
 
 
Internet & Catalog Retail 0.4%
Blue Nile, Inc.* (a)
    3,696       174,008  
Drugstore.Com, Inc.*
    28,027       86,323  
Gaiam, Inc., Class A
    5,211       31,631  
HSN, Inc.*
    11,392       273,408  
NutriSystem, Inc. (a)
    9,166       210,268  
Overstock.com, Inc.* (a)
    4,394       79,399  
PetMed Express, Inc. (a)
    6,810       121,218  
Shutterfly, Inc.*
    7,885       188,925  
US Auto Parts Network, Inc.*
    4,209       25,254  
Vitacost.com, Inc.*
    4,393       39,493  
                 
              1,229,927  
                 
 
 
Internet Software & Services 1.9%
Ancestry.com, Inc.*
    5,571       98,161  
Archipelago Learning, Inc.*
    3,595       41,091  
Art Technology Group, Inc.*
    45,981       157,255  
comScore, Inc.*
    6,713       110,563  
Constant Contact, Inc.* (a)
    8,364       178,404  
DealerTrack Holdings, Inc.*
    11,785       193,863  
Dice Holdings, Inc.*
    4,863       33,652  
Digital River, Inc.*
    11,502       275,013  
DivX, Inc.*
    9,881       75,688  
EarthLink, Inc.
    31,303       249,172  
GSI Commerce, Inc.*
    18,107       521,482  
InfoSpace, Inc.*
    10,500       78,960  
Internap Network Services Corp.*
    15,400       64,218  
Internet Brands, Inc., Class A*
    8,657       89,427  
Internet Capital Group, Inc.*
    10,962       83,311  
j2 Global Communications, Inc.*
    13,083       285,733  
Keynote Systems, Inc.
    4,170       37,613  
KIT Digital, Inc.*
    6,004       52,955  
Knot, Inc. (The)*
    9,100       70,798  
Limelight Networks, Inc.*
    12,477       54,774  
Liquidity Services, Inc.*
    4,360       56,506  
LivePerson, Inc.*
    13,297       91,217  
Local.com Corp.*
    4,963       33,947  
LogMeIn, Inc.*
    4,444       116,566  
LoopNet, Inc.*
    5,904       72,796  
ModusLink Global Solutions, Inc.*
    13,418       80,911  
Move, Inc.*
    46,616       95,563  
NIC, Inc.
    16,518       105,880  
OpenTable, Inc.* (a)
    4,660       193,250  
Openwave Systems, Inc.*
    25,371       51,503  
Perficient, Inc.*
    6,965       62,058  
QuinStreet, Inc.* (a)
    2,950       33,955  
 
 
 
2010 Semiannual Report 17

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Internet Software & Services (continued)
                 
Rackspace Hosting, Inc.* (a)
    28,220     $ 517,555  
RealNetworks, Inc.*
    25,100       82,830  
Saba Software, Inc.*
    8,832       45,485  
SAVVIS, Inc.*
    11,095       163,651  
Stamps.com, Inc.*
    3,401       34,860  
support.com, Inc.*
    14,000       58,240  
Terremark Worldwide, Inc.*
    17,300       135,113  
United Online, Inc.
    25,302       145,740  
ValueClick, Inc.*
    23,725       253,620  
Vocus, Inc.*
    5,000       76,400  
Zix Corp.* (a)
    17,903       40,461  
                 
              5,300,240  
                 
 
 
Leisure Equipment & Products 0.8%
Arctic Cat, Inc.*
    3,801       34,627  
Brunswick Corp.
    25,871       321,576  
Callaway Golf Co.
    18,913       114,234  
Eastman Kodak Co.*
    78,255       339,627  
JAKKS Pacific, Inc.*
    8,418       121,051  
Leapfrog Enterprises, Inc.*
    10,211       41,048  
Polaris Industries, Inc.
    9,044       493,983  
Pool Corp.
    14,428       316,262  
RC2 Corp.*
    6,443       103,797  
Smith & Wesson Holding Corp.* (a)
    18,099       74,025  
Sport Supply Group, Inc.
    2,505       33,717  
Steinway Musical Instruments, Inc.*
    1,907       33,926  
Sturm Ruger & Co., Inc. (a)
    5,660       81,108  
                 
              2,108,981  
                 
 
 
Life Sciences Tools & Services 0.7%
Accelrys, Inc.*
    8,634       55,689  
Affymetrix, Inc.*
    20,708       122,177  
Albany Molecular Research, Inc.*
    7,221       37,333  
Bruker Corp.*
    21,055       256,029  
Caliper Life Sciences, Inc.*
    13,592       58,038  
Cambrex Corp.*
    9,965       31,390  
Dionex Corp.*
    5,128       381,831  
Enzo Biochem, Inc.*
    10,000       40,700  
eResearchTechnology, Inc.*
    14,463       113,968  
Kendle International, Inc.*
    4,522       52,093  
Luminex Corp.*
    10,893       176,684  
Parexel International Corp.*
    17,044       369,514  
Pure Bioscience* (a)
    11,353       27,134  
Sequenom, Inc.* (a)
    18,238       107,787  
                 
              1,830,367  
                 
 
 
Machinery 2.8%
3D Systems Corp.*
    5,519       69,264  
Actuant Corp., Class A
    19,718       371,290  
Alamo Group, Inc.
    1,900       41,230  
Albany International Corp., Class A
    8,077       130,767  
Altra Holdings, Inc.*
    8,004       104,212  
American Railcar Industries, Inc.*
    3,004       36,288  
Ampco-Pittsburgh Corp.
    2,575       53,637  
ArvinMeritor, Inc.*
    27,333       358,062  
Astec Industries, Inc.*
    5,792       160,612  
Badger Meter, Inc.
    4,361       168,727  
Barnes Group, Inc.
    14,100       231,099  
Blount International, Inc.*
    14,020       143,985  
Briggs & Stratton Corp.
    14,520       247,130  
Cascade Corp.
    2,674       95,221  
Chart Industries, Inc.*
    8,428       131,308  
CIRCOR International, Inc.
    5,016       128,309  
Clarcor, Inc.
    14,580       517,882  
Colfax Corp.*
    7,027       73,151  
Columbus Mckinnon Corp.*
    5,734       80,104  
Commercial Vehicle Group, Inc.*
    7,273       74,257  
Douglas Dynamics, Inc.*
    3,512       40,388  
Dynamic Materials Corp.
    3,856       61,850  
Energy Recovery, Inc.* (a)
    12,256       49,024  
EnPro Industries, Inc.*
    6,030       169,745  
ESCO Technologies, Inc.
    7,710       198,533  
Federal Signal Corp.
    18,190       109,868  
Flow International Corp.*
    14,618       34,499  
Force Protection, Inc.*
    20,699       84,866  
FreightCar America, Inc.
    3,636       82,246  
Gorman-Rupp Co. (The)
    3,626       90,831  
Graham Corp.
    2,989       44,805  
Greenbrier Cos., Inc.*
    5,701       63,851  
John Bean Technologies Corp.
    8,328       127,002  
Kadant, Inc.*
    3,700       64,454  
Kaydon Corp.
    9,667       317,658  
LB Foster Co., Class A*
    3,000       77,760  
Lindsay Corp. (a)
    3,635       115,193  
Lydall, Inc.*
    5,216       39,850  
Met-Pro Corp.
    4,688       50,443  
Middleby Corp.*
    4,808       255,738  
Miller Industries, Inc.
    3,000       40,410  
Mueller Industries, Inc.
    10,939       269,099  
Mueller Water Products, Inc., Class A
    45,509       168,838  
NACCO Industries, Inc., Class A
    1,712       151,957  
Nordson Corp.
    9,913       555,921  
PMFG, Inc.* (a)
    4,516       68,417  
RBC Bearings, Inc.*
    6,367       184,579  
Robbins & Myers, Inc.
    7,827       170,159  
Sauer-Danfoss, Inc.*
    3,602       44,017  
Sun Hydraulics Corp.
    3,725       87,389  
Tecumseh Products Co., Class A*
    5,731       63,729  
Tennant Co.
    5,529       186,991  
 
 
 
18 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Machinery (continued)
                 
Thermadyne Holdings Corp.*
    2,761     $ 29,846  
Titan International, Inc. (a)
    10,313       102,821  
Trimas Corp.*
    4,621       52,264  
Twin Disc, Inc.
    2,600       29,536  
Wabash National Corp.*
    17,203       122,313  
Watts Water Technologies, Inc., Class A
    8,501       243,639  
Xerium Technologies, Inc.* (a)
    2,220       31,346  
                 
              7,898,410  
                 
 
 
Marine 0.2%
American Commercial Lines, Inc.* (a)
    2,700       60,777  
Baltic Trading Ltd*
    5,008       56,941  
Eagle Bulk Shipping, Inc.* (a)
    18,478       77,977  
Excel Maritime Carriers Ltd*
    11,845       60,646  
Genco Shipping & Trading Ltd.* (a)
    7,510       112,575  
Horizon Lines, Inc., Class A
    9,689       40,985  
International Shipholding Corp.
    1,865       41,272  
Ultrapetrol Bahamas Ltd.*
    7,200       31,320  
                 
              482,493  
                 
 
 
Media 1.5%
AH Belo Corp., Class A*
    5,813       38,598  
Arbitron, Inc.
    7,775       199,273  
Ascent Media Corp., Class A*
    4,662       117,762  
Ballantyne Strong, Inc.*
    4,560       33,014  
Belo Corp., Class A*
    27,000       153,630  
Cinemark Holdings, Inc.
    16,897       222,196  
CKX, Inc.*
    16,665       83,158  
Dex One Corp.*
    14,569       276,811  
E.W. Scripps Co. (The), Class A*
    9,700       72,071  
Entercom Communications Corp., Class A*
    7,328       64,633  
Entravision Communications Corp., Class A*
    15,957       33,669  
Fisher Communications, Inc.*
    2,270       38,227  
Global Sources Ltd.*
    7,008       54,943  
Gray Television, Inc.*
    15,074       36,328  
Harte-Hanks, Inc.
    11,386       118,984  
Journal Communications, Inc., Class A*
    13,200       52,404  
Knology, Inc.*
    9,203       100,589  
Lee Enterprises, Inc.*
    14,082       36,191  
LIN TV Corp., Class A*
    9,123       49,356  
Lions Gate Entertainment Corp.*
    20,374       142,211  
Live Nation Entertainment, Inc.*
    41,246       431,021  
LodgeNet Interactive Corp.* (a)
    8,140       30,199  
Martha Stewart Living Omnimedia, Class A* (a)
    8,171       40,201  
McClatchy Co. (The), Class A*
    17,796       64,778  
Media General, Inc., Class A* (a)
    6,796       66,329  
Mediacom Communications Corp., Class A*
    12,481       83,872  
National CineMedia, Inc.
    12,741       212,265  
RCN Corp.*
    10,436       154,557  
Rentrak Corp.*
    2,989       72,722  
Scholastic Corp.
    8,993       216,911  
Sinclair Broadcast Group, Inc., Class A*
    13,900       81,037  
SuperMedia, Inc.* (a)
    3,789       69,301  
Valassis Communications, Inc.*
    14,543       461,304  
Warner Music Group Corp.*
    13,658       66,378  
World Wrestling Entertainment, Inc., Class A
    7,353       114,413  
                 
              4,089,336  
                 
 
 
Metals & Mining 1.5%
Allied Nevada Gold Corp.*
    18,545       364,966  
AM Castle & Co.*
    5,000       69,450  
AMCOL International Corp.
    6,985       164,148  
Brush Engineered Materials, Inc.*
    5,930       118,481  
Capital Gold Corp.*
    14,930       59,720  
Century Aluminum Co.*
    18,604       164,273  
Coeur d’Alene Mines Corp.*
    25,539       403,005  
General Moly, Inc.* (a)
    19,300       59,444  
Globe Specialty Metals, Inc.*
    17,920       185,114  
Golden Star Resources Ltd.*
    75,069       328,802  
Haynes International, Inc.
    3,600       110,988  
Hecla Mining Co.* (a)
    70,159       366,230  
Horsehead Holding Corp.*
    12,785       96,655  
Jaguar Mining, Inc.* (a)
    24,557       216,838  
Kaiser Aluminum Corp.
    4,438       153,865  
Metals USA Holdings Corp.*
    3,400       50,830  
Noranda Aluminium Holding Corp.*
    3,447       22,164  
Olympic Steel, Inc.
    2,740       62,938  
RTI International Metals, Inc.*
    8,733       210,553  
Stillwater Mining Co.*
    12,921       150,142  
Thompson Creek Metals Co., Inc.*
    40,635       352,712  
Universal Stainless & Alloy*
    2,133       34,107  
US Energy Corp. Wyoming*
    8,309       39,468  
US Gold Corp.*
    26,819       134,363  
Worthington Industries, Inc.
    17,564       225,873  
                 
              4,145,129  
                 
 
 
Multiline Retail 0.4%
99 Cents Only Stores*
    13,404       198,379  
Bon-Ton Stores, Inc. (The)*
    3,668       35,763  
Dillard’s, Inc., Class A
    13,383       287,734  
Fred’s, Inc., Class A
    11,642       128,761  
 
 
 
2010 Semiannual Report 19

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Multiline Retail (continued)
                 
Retail Ventures, Inc.*
    7,097     $ 55,499  
Saks, Inc.* (a)
    39,378       298,879  
Tuesday Morning Corp.*
    8,973       35,802  
                 
              1,040,817  
                 
 
 
Multi-Utilities 0.4%
Avista Corp.
    16,092       314,277  
Black Hills Corp.
    11,400       324,558  
CH Energy Group, Inc.
    4,700       184,428  
NorthWestern Corp.
    10,520       275,624  
                 
              1,098,887  
                 
 
 
Oil, Gas & Consumable Fuels 3.5%
American Oil & Gas, Inc.* (a)
    14,957       93,930  
Apco Oil and Gas International, Inc. (a)
    2,774       65,217  
Approach Resources, Inc.*
    4,319       29,715  
Arena Resources, Inc.*
    11,400       363,660  
ATP Oil & Gas Corp.* (a)
    13,016       137,839  
Berry Petroleum Co., Class A
    14,898       383,177  
Bill Barrett Corp.*
    13,326       410,041  
BPZ Resources, Inc.* (a)
    28,667       118,968  
Brigham Exploration Co.*
    34,003       522,966  
Callon Petroleum Co.*
    8,528       53,726  
CAMAC Energy, Inc.*
    14,413       53,761  
Carrizo Oil & Gas, Inc.*
    9,173       142,457  
Cheniere Energy, Inc.* (a)
    17,398       49,062  
Clayton Williams Energy, Inc.*
    1,787       75,269  
Clean Energy Fuels Corp.* (a)
    11,853       177,084  
Cloud Peak Engery, Inc.*
    9,199       121,979  
Contango Oil & Gas Co.*
    3,508       156,983  
Crosstex Energy, Inc.*
    12,500       80,125  
CVR Energy, Inc.*
    9,303       69,959  
Delek US Holdings, Inc.
    4,953       36,157  
Delta Petroleum Corp.* (a)
    55,100       47,386  
DHT Holdings, Inc.
    14,929       57,477  
Endeavour International Corp.* (a)
    43,259       45,855  
Energy Partners Ltd.*
    8,639       105,482  
Energy XXI Bermuda Ltd.*
    14,860       234,491  
Evolution Petroleum Corp.*
    4,942       24,759  
FX Energy, Inc.*
    13,639       49,373  
Gastar Exploration Ltd.*
    13,331       48,125  
General Maritime Corp. (a)
    15,018       90,709  
GeoResources, Inc.*
    3,995       55,650  
GMX Resources, Inc.* (a)
    9,186       59,617  
Golar LNG Ltd. (a)
    10,917       107,751  
Goodrich Petroleum Corp.*
    7,216       86,592  
Green Plains Renewable Energy, Inc.*
    4,849       49,557  
Gulfport Energy Corp.*
    8,076       95,781  
Harvest Natural Resources, Inc.*
    10,000       73,700  
Houston American Energy Corp.
    5,440       53,638  
International Coal Group, Inc.* (a)
    38,205       147,089  
James River Coal Co.*
    8,095       128,872  
Knightsbridge Tankers Ltd.
    5,100       89,709  
Kodiak Oil & Gas Corp.*
    35,164       112,173  
L&L Energy, Inc.*
    4,935       42,441  
Magnum Hunter Resources Corp.*
    14,620       63,743  
McMoRan Exploration Co.*
    24,310       270,084  
Miller Petroleum, Inc.*
    5,502       31,692  
Nordic American Tanker Shipping (a)
    13,612       382,361  
Northern Oil and Gas, Inc.*
    13,007       167,010  
Overseas Shipholding Group, Inc.
    7,425       275,022  
Panhandle Oil and Gas, Inc., Class A
    2,231       58,965  
Patriot Coal Corp.*
    22,733       267,113  
Penn Virginia Corp.
    13,294       267,342  
Petroleum Development Corp.*
    5,723       146,623  
PetroQuest Energy, Inc.*
    16,237       109,762  
RAM Energy Resources, Inc.*
    17,753       36,749  
Rentech, Inc.*
    65,513       64,858  
Resolute Energy Corp.*
    11,262       137,847  
REX American Resources Corp.*
    2,200       35,200  
Rex Energy Corp.*
    9,592       96,879  
Rosetta Resources, Inc.*
    15,478       306,619  
Scorpio Tankers, Inc.*
    4,124       47,220  
Ship Finance International Ltd. (a)
    13,081       233,888  
Stone Energy Corp.*
    12,656       141,241  
Swift Energy Co.*
    11,031       296,844  
Syntroleum Corp.* (a)
    21,479       35,226  
Teekay Tankers Ltd., Class A (a)
    8,018       89,240  
TransAtlantic Petroleum Ltd.*
    42,913       136,034  
Uranium Energy Corp.* (a)
    18,290       43,164  
USEC, Inc.*
    33,232       158,184  
VAALCO Energy, Inc.*
    15,120       84,672  
Venoco, Inc.*
    5,918       97,470  
W&T Offshore, Inc. (a)
    10,300       97,438  
Warren Resources, Inc.*
    21,617       62,689  
Western Refining, Inc.* (a)
    15,590       78,418  
World Fuel Services Corp.
    17,439       452,368  
                 
              9,720,267  
                 
 
 
Paper & Forest Products 0.5%
Buckeye Technologies, Inc.*
    11,485       114,276  
Clearwater Paper Corp.*
    3,306       181,036  
Deltic Timber Corp.
    3,122       130,500  
 
 
 
20 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Paper & Forest Products (continued)
                 
KapStone Paper and Packaging Corp.*
    11,174     $ 124,478  
Louisiana-Pacific Corp.*
    36,861       246,600  
Neenah Paper, Inc.
    4,353       79,660  
P.H. Glatfelter Co.
    13,309       144,403  
Schweitzer-Mauduit International, Inc.
    5,295       267,133  
Wausau Paper Corp.*
    14,270       96,608  
                 
              1,384,694  
                 
 
 
Personal Products 0.3%
Elizabeth Arden, Inc.*
    7,300       105,996  
Female Health Co. (The)
    5,632       29,230  
Inter Parfums, Inc.
    4,500       64,035  
Medifast, Inc.* (a)
    3,942       102,137  
Nature’s Sunshine Products, Inc.*
    2,540       21,260  
Nu Skin Enterprises, Inc., Class A
    14,382       358,543  
Nutraceutical International Corp.*
    3,147       48,023  
Prestige Brands Holdings, Inc.*
    12,766       90,383  
Revlon, Inc., Class A*
    3,298       36,806  
USANA Health Sciences, Inc.*
    1,864       68,092  
                 
              924,505  
                 
 
 
Pharmaceuticals 1.6%
Akorn, Inc.* (a)
    17,000       50,490  
Alexza Pharmaceuticals, Inc.* (a)
    12,953       35,232  
Ardea Biosciences, Inc.*
    4,085       83,988  
Auxilium Pharmaceuticals, Inc.*
    12,270       288,345  
AVANIR Pharmaceuticals, Inc., Class A* (a)
    21,519       55,304  
BioMimetic Therapeutics, Inc.* (a)
    4,699       52,253  
BMP Sunstone Corp.* (a)
    9,074       46,731  
Cadence Pharmaceuticals, Inc.* (a)
    7,842       54,973  
Corcept Therapeutics, Inc.* (a)
    8,123       25,344  
Cypress Bioscience, Inc.*
    11,400       26,220  
Depomed, Inc.*
    16,485       46,158  
Durect Corp.*
    26,400       64,152  
Eurand NV*
    5,575       54,022  
Hi-Tech Pharmacal Co., Inc.*
    3,014       69,051  
Impax Laboratories, Inc.*
    18,236       347,578  
Inspire Pharmaceuticals, Inc.*
    17,666       88,153  
Jazz Pharmaceuticals, Inc.*
    4,663       36,511  
MAP Pharmaceuticals, Inc.*
    4,236       55,576  
Medicines Co. (The)*
    15,874       120,801  
Medicis Pharmaceutical Corp., Class A
    17,564       384,300  
Nektar Therapeutics*
    27,654       334,613  
Obagi Medical Products, Inc.*
    5,200       61,464  
Optimer Pharmaceuticals, Inc.* (a)
    9,934       92,088  
Pain Therapeutics, Inc.*
    11,322       62,950  
Par Pharmaceutical Cos., Inc.*
    10,271       266,635  
Pozen, Inc.* (a)
    7,871       55,176  
Questcor Pharmaceuticals, Inc.*
    16,365       167,087  
Salix Pharmaceuticals Ltd.*
    16,663       650,357  
Santarus, Inc.*
    15,700       38,936  
Somaxon Pharmaceuticals, Inc.*
    8,615       31,014  
SuperGen, Inc.*
    17,444       35,237  
ViroPharma, Inc.*
    22,633       253,716  
Vivus, Inc.* (a)
    23,787       228,355  
XenoPort, Inc.*
    8,305       81,472  
                 
              4,344,282  
                 
 
 
Professional Services 1.2%
Acacia Research — Acacia Technologies*
    10,010       142,442  
Administaff, Inc.
    6,355       153,537  
Advisory Board Co. (The)*
    4,550       195,468  
Barrett Business Services, Inc.
    2,571       31,880  
CBIZ, Inc.*
    13,100       83,316  
CDI Corp.
    3,891       60,427  
Corporate Executive Board Co. (The)
    9,999       262,674  
CoStar Group, Inc.* (a)
    6,057       235,012  
CRA International, Inc.*
    3,366       63,382  
Diamond Management & Technology Consultants, Inc.
    7,180       74,026  
Dolan Co. (The)*
    9,075       100,914  
Exponent, Inc.*
    4,143       135,559  
Franklin Covey Co.*
    4,303       27,970  
GP Strategies Corp.*
    4,700       34,122  
Heidrick & Struggles International, Inc.
    5,170       117,979  
Hill International, Inc.*
    8,013       32,533  
Hudson Highland Group, Inc.*
    9,993       43,969  
Huron Consulting Group, Inc.*
    6,400       124,224  
ICF International, Inc.*
    5,134       122,857  
Kelly Services, Inc., Class A*
    8,002       118,990  
Kforce, Inc.*
    9,115       116,216  
Korn/Ferry International*
    13,419       186,524  
LECG Corp.*
    9,525       24,765  
Mistras Group, Inc.* (a)
    4,409       47,265  
Navigant Consulting, Inc.*
    14,626       151,818  
On Assignment, Inc.*
    10,900       54,827  
Resources Connection, Inc.*
    13,560       184,416  
School Specialty, Inc.*
    5,634       101,806  
SFN Group, Inc.*
    15,700       85,722  
TrueBlue, Inc.*
    12,913       144,496  
 
 
 
2010 Semiannual Report 21

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Professional Services (continued)
                 
Volt Information Sciences, Inc.*
    4,718     $ 39,631  
VSE Corp.
    1,320       42,002  
                 
              3,340,769  
                 
 
 
Real Estate Investment Trusts (REITs) 7.1%
Acadia Realty Trust
    11,735       197,383  
Agree Realty Corp.
    2,724       63,524  
Alexander’s, Inc.
    585       177,208  
American Campus Communities, Inc.
    15,207       414,999  
American Capital Agency Corp. (a)
    9,536       251,941  
Anworth Mortgage Asset Corp.
    33,081       235,537  
Apollo Commercial Real Estate Finance, Inc. (a)
    3,447       56,738  
Ashford Hospitality Trust, Inc.*
    12,260       89,866  
Associated Estates Realty Corp.
    9,596       124,268  
BioMed Realty Trust, Inc.
    32,868       528,846  
CapLease, Inc.
    17,620       81,228  
Capstead Mortgage Corp.
    19,953       220,680  
CBL & Associates Properties, Inc.
    40,197       500,051  
Cedar Shopping Centers, Inc.
    16,367       98,529  
Chatham Lodging Trust*
    2,806       50,143  
Chesapeake Lodging Trust*
    2,655       42,002  
Cogdell Spencer, Inc.
    13,259       89,631  
Colonial Properties Trust
    20,403       296,456  
Colony Financial, Inc.
    4,500       76,050  
Cousins Properties, Inc.
    26,203       176,608  
CreXus Investment Corp.
    4,321       53,710  
Cypress Sharpridge Investments, Inc.
    4,800       60,768  
DCT Industrial Trust, Inc.
    61,900       279,788  
DiamondRock Hospitality Co.*
    44,696       367,401  
DuPont Fabros Technology, Inc.
    11,931       293,025  
Dynex Capital, Inc.
    5,471       50,497  
EastGroup Properties, Inc.
    7,778       276,741  
Education Realty Trust, Inc.
    17,105       103,143  
Entertainment Properties Trust
    13,456       512,270  
Equity Lifestyle Properties, Inc.
    7,488       361,146  
Equity One, Inc.
    10,469       163,316  
Excel Trust, Inc.*
    4,793       57,516  
Extra Space Storage, Inc.
    25,418       353,310  
FelCor Lodging Trust, Inc.*
    19,600       97,804  
First Industrial Realty Trust, Inc.*
    18,833       90,775  
First Potomac Realty Trust
    11,018       158,329  
Franklin Street Properties Corp.
    20,081       237,157  
Getty Realty Corp.
    6,136       137,508  
Gladstone Commercial Corp. (a)
    3,300       53,922  
Glimcher Realty Trust
    20,250       121,095  
Government Properties Income Trust
    6,155       157,076  
Hatteras Financial Corp.
    10,318       287,047  
Healthcare Realty Trust, Inc.
    17,938       394,098  
Hersha Hospitality Trust
    32,685       147,736  
Highwoods Properties, Inc.
    20,536       570,079  
Home Properties, Inc.
    11,325       510,418  
Inland Real Estate Corp.
    21,765       172,379  
Invesco Mortgage Capital, Inc.
    7,459       149,255  
Investors Real Estate Trust
    22,408       197,863  
iStar Financial, Inc.* (a)
    27,723       123,645  
Kilroy Realty Corp.
    15,613       464,174  
Kite Realty Group Trust
    16,607       69,417  
LaSalle Hotel Properties
    20,253       416,604  
Lexington Realty Trust (a)
    28,844       173,352  
LTC Properties, Inc.
    6,939       168,410  
Medical Properties Trust, Inc.
    32,256       304,497  
MFA Financial, Inc.
    79,940       591,556  
Mid-America Apartment Communities, Inc.
    8,883       457,208  
Mission West Properties, Inc.
    7,011       47,815  
Monmouth Real Estate Investment Corp., Class A
    9,220       68,136  
MPG Office Trust, Inc.* (a)
    14,717       43,121  
National Health Investors, Inc.
    7,042       271,540  
National Retail Properties, Inc.
    23,860       511,558  
Newcastle Investment Corp.* (a)
    18,591       49,824  
NorthStar Realty Finance Corp.
    23,140       61,784  
Omega Healthcare Investors, Inc.
    26,624       530,616  
One Liberty Properties, Inc.
    2,643       39,407  
Parkway Properties, Inc.
    6,500       94,705  
Pebblebrook Hotel Trust*
    5,551       104,636  
Pennsylvania Real Estate Investment Trust (a)
    16,265       198,758  
Pennymac Mortgage Investment Trust*
    5,220       82,998  
Post Properties, Inc.
    14,095       320,379  
Potlatch Corp.
    11,418       407,965  
PS Business Parks, Inc.
    5,265       293,682  
RAIT Financial Trust* (a)
    23,219       43,420  
Ramco-Gershenson Properties Trust
    11,262       113,746  
Redwood Trust, Inc.
    22,734       332,826  
Resource Capital Corp.
    13,042       74,079  
Retail Opportunity Investments Corp.
    12,412       119,776  
Saul Centers, Inc.
    1,900       77,197  
Sovran Self Storage, Inc.
    7,949       273,684  
Starwood Property Trust, Inc.
    13,859       234,910  
Strategic Hotels & Resorts, Inc.*
    41,246       181,070  
 
 
 
22 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Real Estate Investment Trusts (continued)
                 
Sun Communities, Inc.
    5,716     $ 148,387  
Sunstone Hotel Investors, Inc.*
    28,837       286,351  
Tanger Factory Outlet Centers
    11,596       479,842  
Terreno Realty Corp.*
    2,917       51,660  
Two Harbors Investment Corp.
    7,840       64,680  
UMH Properties, Inc.
    3,935       39,625  
Universal Health Realty Income Trust
    3,400       109,242  
Urstadt Biddle Properties, Inc., Class A
    6,279       101,280  
U-Store-It Trust
    23,712       176,892  
Walter Investment Management Corp.
    7,649       125,061  
Washington Real Estate Investment Trust
    17,486       482,439  
Winthrop Realty Trust
    5,722       73,299  
                 
              19,672,113  
                 
 
 
Real Estate Management & Development 0.2%
Avatar Holdings, Inc.*
    2,804       53,781  
Consolidated-Tomoka Land Co. (a)
    1,731       49,334  
Forestar Group, Inc.*
    10,699       192,154  
Kennedy-Wilson Holdings, Inc.* (a)
    6,382       64,458  
Tejon Ranch Co.* (a)
    3,902       90,058  
Thomas Properties Group, Inc.
    11,216       37,125  
                 
              486,910  
                 
 
 
Road & Rail 1.1%
Amerco, Inc.*
    2,504       137,845  
Arkansas Best Corp.
    7,427       154,110  
Avis Budget Group, Inc.*
    29,942       294,030  
Celadon Group, Inc.*
    6,015       85,052  
Dollar Thrifty Automotive Group, Inc.*
    8,345       355,581  
Genesee & Wyoming, Inc., Class A*
    11,298       421,528  
Heartland Express, Inc.
    14,556       211,353  
Knight Transportation, Inc.
    17,163       347,379  
Marten Transport Ltd.*
    4,506       93,635  
Old Dominion Freight Line, Inc.*
    8,116       285,196  
Patriot Transportation Holding, Inc.*
    479       38,756  
RailAmerica, Inc.*
    7,118       70,611  
Roadrunner Transportation Systems, Inc.*
    3,246       46,126  
Saia, Inc.*
    4,865       72,975  
USA Truck, Inc.*
    2,550       41,106  
Werner Enterprises, Inc.
    12,427       272,027  
                 
              2,927,310  
                 
Semiconductors & Semiconductor Equipment 3.6%
Actel Corp.*
    6,538       83,817  
Advanced Analogic Technologies, Inc.*
    13,000       41,470  
Advanced Energy Industries, Inc.*
    10,777       132,449  
Amkor Technology, Inc.* (a)
    30,780       169,598  
Anadigics, Inc.*
    19,100       83,276  
Applied Micro Circuits Corp.*
    19,217       201,394  
ATMI, Inc.*
    9,245       135,347  
Axcelis Technologies, Inc.*
    32,088       49,736  
AXT, Inc.*
    9,640       43,476  
Brooks Automation, Inc.*
    19,355       149,614  
Cabot Microelectronics Corp.*
    6,918       239,294  
Cavium Networks, Inc.*
    12,995       340,339  
Ceva, Inc.*
    6,387       80,476  
Cirrus Logic, Inc.*
    19,113       302,177  
Cohu, Inc.
    7,100       86,123  
Conexant Systems, Inc.*
    24,249       54,318  
Cymer, Inc.*
    8,759       263,120  
Diodes, Inc.*
    9,944       157,811  
DSP Group, Inc.*
    6,900       44,091  
Entegris, Inc.*
    38,577       153,151  
Entropic Communications, Inc.*
    16,644       105,523  
Exar Corp.*
    11,175       77,443  
FEI Co.*
    11,128       219,333  
FormFactor, Inc.*
    14,700       158,760  
FSI International, Inc.*
    9,796       41,045  
GSI Technology, Inc.*
    6,107       34,932  
Hittite Microwave Corp.*
    7,964       356,309  
Integrated Device Technology, Inc.*
    47,641       235,823  
Integrated Silicon Solution, Inc.*
    7,735       58,322  
IXYS Corp.*
    7,200       63,648  
Kopin Corp.*
    20,102       68,146  
Kulicke & Soffa Industries, Inc.*
    20,602       144,626  
Lattice Semiconductor Corp.*
    34,252       148,654  
LTX-Credence Corp.*
    43,347       122,672  
Mattson Technology, Inc.*
    15,254       57,813  
MaxLinear, Inc., Class A*
    2,288       31,986  
Micrel, Inc.
    14,895       151,631  
Microsemi Corp.*
    24,184       353,812  
Microtune, Inc.*
    17,214       36,666  
MIPS Technologies, Inc.*
    13,600       69,496  
MKS Instruments, Inc.*
    14,692       275,034  
Monolithic Power Systems, Inc.*
    9,488       169,456  
MoSys, Inc.*
    8,730       38,587  
Nanometrics, Inc.*
    5,422       54,708  
Netlogic Microsystems, Inc.*
    18,279       497,189  
NVE Corp.*
    1,411       61,421  
OmniVision Technologies, Inc.*
    15,178       325,416  
PDF Solutions, Inc.*
    7,291       34,997  
 
 
 
2010 Semiannual Report 23

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Semiconductors & Semiconductor Equipment (continued)
                 
Pericom Semiconductor Corp.*
    7,600     $ 72,960  
Photronics, Inc.*
    16,079       72,677  
PLX Technology, Inc.*
    11,514       48,244  
Power Integrations, Inc.
    7,199       231,772  
RF Micro Devices, Inc.*
    78,510       306,974  
Rubicon Technology, Inc.* (a)
    4,219       125,684  
Rudolph Technologies, Inc.*
    9,480       71,574  
Semtech Corp.*
    18,065       295,724  
Sigma Designs, Inc.* (a)
    9,233       92,422  
Silicon Image, Inc.*
    23,119       81,148  
Spansion, Inc., Class A*
    3,821       62,321  
Standard Microsystems Corp.*
    6,600       153,648  
Supertex, Inc.*
    2,940       72,500  
Tessera Technologies, Inc.*
    14,627       234,763  
Trident Microsystems, Inc.* (a)
    21,973       31,202  
TriQuint Semiconductor, Inc.*
    45,235       276,386  
Ultra Clean Holdings, Inc.*
    6,627       56,462  
Ultratech, Inc.*
    7,136       116,103  
Veeco Instruments, Inc.*
    11,826       405,395  
Virage Logic Corp.*
    6,941       82,528  
Volterra Semiconductor Corp.*
    7,272       167,692  
Zoran Corp.*
    15,121       144,254  
                 
              10,006,958  
                 
 
 
Software 4.2%
ACI Worldwide, Inc.*
    9,958       193,882  
Actuate Corp.*
    13,500       60,075  
Advent Software, Inc.* (a)
    4,600       216,016  
American Software, Inc., Class A
    7,266       33,569  
ArcSight, Inc.*
    7,224       161,745  
Ariba, Inc.*
    26,244       418,067  
Aspen Technology, Inc.*
    18,249       198,732  
Blackbaud, Inc.
    13,110       285,405  
Blackboard, Inc.* (a)
    9,937       370,948  
Bottomline Technologies, Inc.*
    8,111       105,686  
CDC Corp.*
    29,479       61,316  
CommVault Systems, Inc.*
    12,636       284,310  
Concur Technologies, Inc.*
    11,716       500,039  
Deltek, Inc.*
    6,020       50,207  
DemandTec, Inc.*
    5,936       40,068  
Digimarc Corp.* (a)
    2,193       41,119  
Double-Take Software, Inc.*
    6,322       66,318  
Ebix, Inc.* (a)
    7,922       124,217  
Epicor Software Corp.*
    14,380       114,896  
EPIQ Systems, Inc.*
    9,700       125,421  
Fair Isaac Corp.
    13,295       289,698  
Fortinet, Inc.*
    11,597       190,655  
Interactive Intelligence, Inc.*
    3,800       62,434  
Jack Henry & Associates, Inc.
    24,757       591,197  
JDA Software Group, Inc.*
    12,167       267,431  
Kenexa Corp.*
    6,800       81,600  
Lawson Software, Inc.*
    40,470       295,431  
Magma Design Automation, Inc.*
    15,813       44,909  
Manhattan Associates, Inc.*
    6,644       183,042  
Mentor Graphics Corp.*
    31,216       276,262  
MicroStrategy, Inc., Class A*
    2,621       196,811  
Monotype Imaging Holdings, Inc.*
    6,821       61,457  
Netscout Systems, Inc.*
    9,023       128,307  
NetSuite, Inc.* (a)
    5,411       68,395  
Opnet Technologies, Inc.
    4,033       59,245  
Parametric Technology Corp.*
    33,745       528,784  
Pegasystems, Inc. (a)
    4,732       151,944  
Progress Software Corp.*
    12,259       368,138  
PROS Holdings, Inc.*
    5,880       38,220  
Quest Software, Inc.*
    17,388       313,680  
Radiant Systems, Inc.*
    8,543       123,532  
Renaissance Learning, Inc.
    3,954       58,084  
Rosetta Stone, Inc.* (a)
    3,084       70,809  
S1 Corp.*
    15,449       92,848  
Smith Micro Software, Inc.*
    8,996       85,552  
SolarWinds, Inc.*
    10,188       163,415  
Sonic Solutions, Inc.*
    7,645       63,836  
SonicWALL, Inc.*
    16,190       190,232  
Sourcefire, Inc.*
    8,077       153,463  
SRS Labs, Inc.*
    3,846       35,191  
SS&C Technologies Holdings, Inc.*
    3,639       58,333  
SuccessFactors, Inc.*
    18,434       383,243  
Symyx Technologies, Inc.*
    10,543       52,820  
Synchronoss Technologies, Inc.*
    6,024       114,275  
Take-Two Interactive Software, Inc.*
    20,580       185,220  
Taleo Corp., Class A*
    11,654       283,076  
TeleCommunication Systems, Inc., Class A*
    13,472       55,774  
THQ, Inc.*
    20,033       86,543  
TIBCO Software, Inc.*
    48,275       582,197  
TiVo, Inc.*
    33,982       250,787  
Tyler Technologies, Inc.*
    9,000       139,680  
Ultimate Software Group, Inc.*
    7,312       240,272  
Unica Corp.*
    5,201       49,826  
VASCO Data Security International, Inc.*
    8,139       50,218  
VirnetX Holding Corp.
    9,831       58,200  
Wave Systems Corp., Class A*
    23,959       77,627  
Websense, Inc.*
    12,599       238,121  
                 
              11,592,850  
                 
 
 
Specialty Retail 3.2%
America’s Car-Mart, Inc.*
    3,013       68,184  
AnnTaylor Stores Corp.*
    17,148       278,998  
Asbury Automotive Group, Inc.*
    8,547       90,085  
 
 
 
24 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Specialty Retail (continued)
                 
Barnes & Noble, Inc. (a)
    11,152     $ 143,861  
Bebe Stores, Inc.
    9,788       62,643  
Big 5 Sporting Goods Corp.
    6,500       85,410  
Brown Shoe Co., Inc.
    12,751       193,560  
Buckle, Inc. (The) (a)
    7,597       246,295  
Build-A-Bear Workshop, Inc.* (a)
    5,100       34,578  
Cabela’s, Inc.* (a)
    11,721       165,735  
Casual Male Retail Group, Inc.*
    12,980       44,392  
Cato Corp. (The), Class A
    8,174       179,991  
Charming Shoppes, Inc.*
    34,417       129,064  
Childrens Place Retail Stores, Inc. (The)*
    8,083       355,814  
Christopher & Banks Corp.
    10,900       67,471  
Citi Trends, Inc.*
    4,400       144,936  
Coldwater Creek, Inc.*
    18,075       60,732  
Collective Brands, Inc.*
    18,841       297,688  
Destination Maternity Corp.*
    1,607       40,657  
Dress Barn, Inc.*
    17,323       412,461  
DSW, Inc., Class A*
    4,175       93,771  
Express, Inc.*
    4,701       76,955  
Finish Line, Inc. (The), Class A
    14,922       207,863  
Genesco, Inc.*
    7,045       185,354  
Group 1 Automotive, Inc.*
    7,088       166,781  
Gymboree Corp.*
    8,626       368,416  
Haverty Furniture Cos., Inc.
    5,483       67,386  
hhgregg, Inc.*
    3,877       90,412  
Hibbett Sports, Inc.*
    8,355       200,186  
HOT Topic, Inc.
    13,249       67,305  
Jo-Ann Stores, Inc.*
    7,971       298,992  
Jos. A. Bank Clothiers, Inc.*
    5,357       289,224  
Kirkland’s, Inc.*
    4,987       84,156  
Lithia Motors, Inc., Class A
    6,400       39,552  
Lumber Liquidators Holdings, Inc.* (a)
    6,534       152,438  
MarineMax, Inc.*
    6,799       47,185  
Men’s Wearhouse, Inc. (The)
    15,314       281,165  
Midas, Inc.*
    4,194       32,168  
Monro Muffler Brake, Inc.
    5,795       229,076  
OfficeMax, Inc.*
    24,714       322,765  
Pacific Sunwear Of California*
    19,900       63,680  
Penske Automotive Group, Inc.*
    12,925       146,828  
PEP Boys-Manny Moe & Jack
    15,489       137,233  
Pier 1 Imports, Inc.*
    30,531       195,704  
Rent-A-Center, Inc., Class A*
    19,109       387,148  
Rue21, Inc.*
    4,341       131,706  
Sally Beauty Holdings, Inc.*
    27,666       226,861  
Select Comfort Corp.*
    16,069       140,604  
Shoe Carnival, Inc.*
    2,800       57,428  
Sonic Automotive, Inc., Class A*
    11,787       100,897  
Stage Stores, Inc.
    11,520       123,034  
Stein Mart, Inc.*
    8,214       51,173  
Systemax, Inc.
    3,255       49,053  
Talbots, Inc.*
    20,468       211,025  
Ulta Salon Cosmetics & Fragrance, Inc.*
    9,194       217,530  
Vitamin Shoppe, Inc.* (a)
    4,699       120,529  
West Marine, Inc.*
    4,589       49,928  
Wet Seal, Inc. (The), Class A*
    30,454       111,157  
Zumiez, Inc.*
    6,100       98,271  
                 
              9,023,494  
                 
 
 
Textiles, Apparel & Luxury Goods 2.0%
Carter’s, Inc.*
    17,266       453,233  
Cherokee, Inc.
    2,537       43,383  
Columbia Sportswear Co.
    3,300       154,011  
CROCS, Inc.*
    25,104       265,600  
Culp, Inc.*
    2,807       30,765  
Deckers Outdoor Corp.*
    3,752       536,048  
G-III Apparel Group Ltd.*
    4,593       105,134  
Iconix Brand Group, Inc.*
    21,109       303,336  
Joe’s Jeans, Inc.* (a)
    13,416       26,564  
Jones Apparel Group, Inc.
    25,440       403,224  
K-Swiss, Inc., Class A*
    7,874       88,425  
Lacrosse Footwear, Inc.
    1,611       27,129  
Liz Claiborne, Inc.* (a)
    27,796       117,299  
Maidenform Brands, Inc.*
    6,739       137,206  
Movado Group, Inc.*
    4,761       50,847  
Oxford Industries, Inc.
    4,204       87,990  
Perry Ellis International, Inc.*
    3,059       61,792  
Quiksilver, Inc.*
    38,042       140,755  
RG Barry Corp.
    2,929       32,307  
Skechers U.S.A., Inc., Class A*
    10,073       367,866  
Steven Madden Ltd.*
    7,178       226,251  
Timberland Co. (The), Class A*
    12,090       195,253  
True Religion Apparel, Inc.*
    7,425       163,870  
Under Armour, Inc., Class A* (a)
    10,221       338,622  
Unifi, Inc.*
    12,914       49,331  
UniFirst Corp.
    4,095       180,262  
Volcom, Inc.*
    5,700       105,849  
Warnaco Group, Inc. (The)*
    12,885       465,664  
Weyco Group, Inc. (a)
    2,294       52,257  
Wolverine World Wide, Inc.
    14,423       363,748  
                 
              5,574,021  
                 
 
 
Thrifts & Mortgage Finance 1.5%
Abington Bancorp, Inc.
    6,600       57,552  
Astoria Financial Corp.
    24,948       343,284  
Bank Mutual Corp.
    14,018       79,622  
BankFinancial Corp.
    6,195       51,480  
Beneficial Mutual Bancorp, Inc.*
    10,116       99,946  
Berkshire Hills Bancorp, Inc.
    4,200       81,816  
BofI Holding, Inc.*
    2,163       30,542  
Brookline Bancorp, Inc.
    17,192       152,665  
 
 
 
2010 Semiannual Report 25

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Small Cap Index Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Thrifts & Mortgage Finance (continued)
                 
Dime Community Bancshares
    7,800     $ 96,174  
ESB Financial Corp. (a)
    2,900       37,845  
ESSA Bancorp, Inc.
    4,790       58,965  
Federal Agricultural Mortgage Corp., Class C (a)
    2,919       40,954  
First Financial Holdings, Inc.
    5,050       57,822  
Flagstar Bancorp, Inc.*
    13,984       43,910  
Flushing Financial Corp.
    9,192       112,418  
Home Federal Bancorp, Inc.
    5,100       64,413  
Kearny Financial Corp.
    4,473       40,973  
Meridian Interstate Bancorp, Inc.* (a)
    3,017       32,885  
MGIC Investment Corp.* (a)
    58,438       402,638  
NewAlliance Bancshares, Inc.
    30,355       340,280  
Northwest Bancshares, Inc.
    31,880       365,664  
OceanFirst Financial Corp.
    4,446       53,663  
Ocwen Financial Corp.*
    21,619       220,298  
Oritani Financial Corp.
    16,355       163,550  
PMI Group, Inc. (The)*
    42,124       121,738  
Provident Financial Services, Inc.
    17,452       204,014  
Provident New York Bancorp
    11,605       102,704  
Radian Group, Inc.
    38,845       281,238  
Rockville Financial, Inc.
    2,600       30,966  
Roma Financial Corp. (a)
    2,687       29,181  
Territorial Bancorp, Inc.
    3,684       69,812  
Trustco Bank Corp.
    22,524       126,134  
United Financial Bancorp, Inc.
    5,223       71,294  
ViewPoint Financial Group
    3,171       43,918  
Westfield Financial, Inc.
    9,190       76,553  
WSFS Financial Corp.
    1,507       54,146  
                 
              4,241,057  
                 
 
 
Tobacco 0.2%
Alliance One International, Inc.*
    26,145       93,076  
Star Scientific, Inc.* (a)
    28,605       46,912  
Universal Corp.
    6,982       277,046  
Vector Group Ltd. (a)
    12,421       208,921  
                 
              625,955  
                 
 
 
Trading Companies & Distributors 0.8%
Aceto Corp.
    7,952       45,565  
Aircastle Ltd.
    14,963       117,459  
Applied Industrial Technologies, Inc.
    12,306       311,588  
Beacon Roofing Supply, Inc.*
    13,318       239,990  
CAI International, Inc.*
    3,000       35,700  
DXP Enterprises, Inc.*
    2,575       40,299  
H&E Equipment Services, Inc.*
    8,386       62,811  
Houston Wire & Cable Co.
    5,300       57,505  
Interline Brands, Inc.*
    9,713       167,938  
Kaman Corp.
    7,605       168,223  
RSC Holdings, Inc.*
    14,597       90,063  
Rush Enterprises, Inc., Class A*
    9,502       126,947  
TAL International Group, Inc.
    4,926       110,687  
Textainer Group Holdings Ltd.
    2,841       68,582  
Titan Machinery, Inc.*
    4,023       52,822  
United Rentals, Inc.*
    17,681       164,787  
Watsco, Inc.
    8,052       466,372  
                 
              2,327,338  
                 
 
 
Water Utilities 0.3%
American States Water Co.
    5,431       179,983  
Artesian Resources Corp., Class A (a)
    2,496       46,076  
Cadiz, Inc.* (a)
    4,084       49,294  
California Water Service Group
    5,703       203,597  
Connecticut Water Service, Inc.
    2,868       60,286  
Consolidated Water Co. Ltd. (a)
    4,562       51,916  
Middlesex Water Co.
    4,459       70,675  
SJW Corp.
    3,923       91,955  
Southwest Water Co.
    8,338       87,382  
York Water Co. (The) (a)
    4,300       61,060  
                 
              902,224  
                 
 
 
Wireless Telecommunication Services 0.3%
FiberTower Corp.* (a)
    14,018       66,165  
ICO Global Communications Holdings Ltd.*
    27,976       45,041  
NTELOS Holdings Corp.
    8,718       149,949  
Shenandoah Telecommunications Co.
    7,028       124,677  
Syniverse Holdings, Inc.*
    19,995       408,898  
USA Mobility, Inc.
    6,529       84,355  
                 
              879,085  
                 
         
Total Common Stocks (cost $314,756,798)
    272,742,724  
         
                 
                 
Warrant 0.0%
                 
      Number of
Warrants 		         
 
 
Oil, Gas & Consumable Fuels 0.0%
Greenhunter Energy, Inc., expiring 9/16/2011* (c)
    100       0  
                 
                 
Total Warrant (cost $ — )
               
 
 
 
26 Semiannual Report 2010

 

 
 
 
                 
                 
                 
Mutual Fund 1.8%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 1.8%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (d)
    5,035,640     $ 5,035,640  
                 
                 
Total Mutual Fund (cost $5,035,640)
            5,035,640  
                 
                 
                 
Repurchase Agreements 7.8%
                 
      Principal
Amount 		         
 
 
Morgan Stanley, 0.03%, dated 06/30/2010, due 07/01/2010, repurchase price $16,614,933, collateralized by U.S. Government Agency Securities ranging from 4.0% – 8.50%, maturing 03/01/2015 – 06/01/2040; total market value of $16,947,812. (e)
  $ 16,614,919       16,614,919  
Barclays Capital, 0.01%, dated 06/30/2010, due 07/01/2010, repurchase price $5,000,001, collateralized by U.S. Government Obligation, 1.875% maturing 06/30/2015; total market value $5,100,000. (e)
    5,000,000       5,000,000  
                 
         
Total Repurchase Agreements
(cost $21,614,919)
    21,614,919  
         
         
Total Investments
(cost $341,407,357) (f) — 107.7%
    299,393,283  
         
Liabilities in excess of other assets — (7.7%)
    (21,469,641 )
         
         
NET ASSETS — 100.0%
  $ 277,923,642  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $20,354,511.
 
(b) A security or a portion of a security was used to cover the margin requirement for futures contracts.
 
(c) Fair Valued Security.
 
(d) Represents 7-day effective yield as of June 30, 2010.
 
(e) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $21,614,919.
 
(f) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
Ltd. Limited
 
NV Public Traded Company
 
REIT Real Estate Investment Trust
 
SA Stock Company
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
 
                             
            Notional Value
 		   
Number of
 		  Long
 		      Covered by
 		  Unrealized
Contracts   Contracts   Expiration   Contracts   Depreciation
 
90
 
Russell 2000 Mini Index
    09/17/10     $ 5,470,200     $ (95,821 )
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 27

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Small Cap
 		 
      Index Fund  
       
Assets:
         
Investments, at value* (cost $319,792,438)
    $ 277,778,364  
Repurchase agreements, at value and cost
      21,614,919  
           
Total Investments
      299,393,283  
           
Cash
      1,191  
Deposits with broker for futures
      307,000  
Dividends receivable
      302,051  
Security lending income receivable
      38,919  
Receivable for capital shares issued
      150,995  
Prepaid expenses and other assets
      2,983  
           
Total Assets
      300,196,422  
           
Liabilities:
         
Payable for capital shares redeemed
      501,839  
Payable for variation margin on futures contracts
      48,600  
Payable upon return of securities loaned (Note 2)
      21,614,919  
Accrued expenses and other payables:
         
Investment advisory fees
      45,608  
Fund administration fees
      11,963  
Accounting and transfer agent fees
      11,925  
Custodian fees
      1,631  
Compliance program costs (Note 3)
      1,387  
Professional fees
      13,717  
Printing fees
      15,751  
Other
      5,440  
           
Total Liabilities
      22,272,780  
           
Net Assets
    $ 277,923,642  
           
Represented by:
         
Capital
    $ 363,062,266  
Accumulated undistributed net investment income
      336,033  
Accumulated net realized losses from investment and futures transactions
      (43,364,762 )
Net unrealized appreciation/(depreciation) from investments
      (42,014,074 )
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (95,821 )
           
Net Assets
    $ 277,923,642  
           
Net Assets:
         
Class Y Shares
    $ 277,923,642  
           
Total
    $ 277,923,642  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class Y Shares
      37,860,290  
           
Total
      37,860,290  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class Y Shares
    $ 7.34  
 
 
* Includes value of securities on loan of $ 20,354,511 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
28 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Small Cap
 		 
      Index Fund  
       
           
INVESTMENT INCOME:
         
Interest income
    $ 7  
Dividend income
      1,854,819  
Income from securities lending (Note 2)
      246,781  
Foreign tax withholding
      (29 )
           
Total Income
      2,101,578  
           
EXPENSES:
         
Investment advisory fees
      300,445  
Fund administration fees
      60,864  
Professional fees
      19,180  
Printing fees
      7,671  
Trustee fees
      5,437  
Custodian fees
      5,707  
Accounting and transfer agent fees
      11,372  
Compliance program costs (Note 3)
      583  
Other
      7,345  
           
Total expenses before earnings credit and expenses waived
      418,604  
Earnings credit (Note 4)
      (89 )
Expenses voluntarily waived by adviser (Note 3)
      (9,196 )
           
Net Expenses
      409,319  
           
NET INVESTMENT INCOME
      1,692,259  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (4,009,468 )
Net realized gains from futures transactions (Note 2)
      718,041  
           
Net realized losses from investment and futures transactions
      (3,291,427 )
           
Net change in unrealized appreciation/(depreciation) from investments
      (3,354,606 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (462,968 )
           
Net change in unrealized appreciation/(depreciation) from investments and futures
      (3,817,574 )
           
Net realized/unrealized losses from investments and futures transactions
      (7,109,001 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (5,416,742 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 29

 

Statements of Changes in Net Assets
 
 
                     
      NVIT Small Cap Index Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 1,692,259       $ 3,187,026  
Net realized losses from investment and futures transactions
      (3,291,427 )       (33,829,233 )
Net change in unrealized appreciation/(depreciation) from investments and futures
      (3,817,574 )       98,345,393  
                     
Change in net assets resulting from operations
      (5,416,742 )       67,703,186  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class Y
      (1,958,618 )       (2,603,070 )
                     
Change in net assets from shareholder distributions
      (1,958,618 )       (2,603,070 )
                     
Change in net assets from capital transactions
      (4,589,929 )       16,669,100  
                     
Change in net assets
      (11,965,289 )       81,769,216  
                     
                     
Net Assets:
                   
Beginning of period
      289,888,931         208,119,715  
                     
End of period
    $ 277,923,642       $ 289,888,931  
                     
Accumulated undistributed net investment income at end of period
    $ 336,033       $ 602,392  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class Y Shares
                   
Proceeds from shares issued
    $ 9,901,047       $ 65,035,958  
Dividends reinvested
      1,958,618         2,603,070  
Cost of shares redeemed
      (16,449,594 )       (50,969,928 )
                     
Total Class Y
      (4,589,929 )       16,669,100  
                     
Change in net assets from capital transactions
    $ (4,589,929 )     $ 16,669,100  
                     
                     
SHARE TRANSACTIONS:
                   
Class Y Shares
                   
Issued
      1,227,548         11,196,662  
Reinvested
      241,679         398,182  
Redeemed
      (2,073,521 )       (7,831,915 )
                     
Total Class Y Shares
      (604,294 )       3,762,929  
                     
Total change in shares
      (604,294 )       3,762,929  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
30 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Small Cap Index Fund
 
                                                                                                                                                         
          Operations     Distributions                 Ratios / Supplemental Data
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     of Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover    
Class Y Shares (f)
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 7 .54       0 .04       (0 .19)       (0 .15)       (0 .05)       –          –         (0 .05)     $ 7 .34       (2 .03%)     $ 277,923,642         0 .27%       1 .13%       0 .28%       13 .00%    
Year Ended December 31, 2009 (d)
  $ 6 .00       0 .08       1 .53       1 .61       (0 .07)       –          –         (0 .07)     $ 7 .54       26 .95%     $ 289,888,931         0 .30%       1 .29%       0 .30%       30 .26%    
Year Ended December 31, 2008
  $ 9 .30       0 .10       (3 .22)       (3 .12)       (0 .09)       (0 .09)       –         (0 .18)     $ 6 .00       (34 .01%)     $ 208,119,715         0 .30%       1 .19%       0 .31%       29 .74%    
Period Ended December 31, 2007 (e)
  $ 10 .00       0 .11       (0 .70)       (0 .59)       (0 .11)       –          –         (0 .11)     $ 9 .30       (5 .97%)     $ 343,269,405         0 .27%       1 .55%       0 .28%       21 .78%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(d)  Per share calculations were performed using average shares method.
(e)  For the period from April 13, 2007 (commencement of operations) through December 31, 2007.
(f)  Effective May 1, 2008, Class ID Shares were renamed Class Y Shares.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 31

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Small Cap Index Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by other insurance companies and other series of the Trust that operate as funds-of-funds, such as the NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
32 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
  $ 272,742,724     $ —     $ —     $ 272,742,724      
Mutual Fund
    5,035,640       —       —       5,035,640      
Repurchase Agreements
    —       21,614,919       —       21,614,919      
Warrant
    —       —       —       —      
 
 
Total Assets
    277,778,364       21,614,919       —       299,393,283      
 
 
Liabilities:
                                   
Futures contracts
    (95,821 )     —       —       (95,821 )    
 
 
Total Liabilities
    (95,821 )     —       —       (95,821 )    
 
 
Total
  $ 277,682,543     $ 21,614,919     $ —     $ 299,297,462      
 
 
* See Statement of Investments for identification of securities by type and industry classification.
 
 
 
2010 Semiannual Report 33

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                 
        Warrant    
 
    Balance as of 12/31/09   $ —      
 
 
    Accrued Accretion/(Amortization)     —      
 
 
    Change in Unrealized Appreciation/(Depreciation)     —      
 
 
    Net Purchases/(Sales)     —      
 
 
    Transfers In/(Out) of Level 3     —      
 
 
    Balance as of 06/30/2010   $ —      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative
 
 
 
34 Semiannual Report 2010

 

 
 
instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
             
    Statement of Assets & Liabilities Location   Fair Value
 
Liabilities:
           
Futures — Equity contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ (95,821 )
 
 
Total
      $ (95,821 )
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ 718,041      
 
 
    Total   $ 718,041      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (462,968 )    
 
 
    Total   $ (462,968 )    
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(c)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
 
 
2010 Semiannual Report 35

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 20,354,511     $ 21,614,919      
 
 
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
 
 
36 Semiannual Report 2010

 

 
 
Beginning with the 2007 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2007 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected BlackRock Investment Management LLC (“BlackRock”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of BlackRock.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1.5 billion     0.20%      
 
 
    $1.5 billion up to $3 billion     0.19%      
 
 
    $3 billion and more     0.18%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $50,908 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.30% for the Fund’s Class Y shares until at least April 30, 2011. Pursuant to the Expense Limitation Agreement, the expense ratio for Class Y shares of the Fund will not exceed 4.00% through March 1, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making
 
 
 
2010 Semiannual Report 37

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by period/year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                             
    Period Ended
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
    2007 Amount(a)   2008 Amount   2009 Amount   June 30, 2010   Total    
 
    $ —     $ 21,347     $ —     $ —     $ 21,347      
 
 
(a) For the period from April 13, 2007 (commencement of operations) through December 31, 2007.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
In addition, NFA voluntarily agreed to waive from its Investment Advisory Fee an amount equal to $9,196 for which NFA shall not be entitled to later seek recoupment.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
38 Semiannual Report 2010

 

 
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal, Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $583.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
2010 Semiannual Report 39

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $37,574,523 and sales of $37,660,290 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Risks Associated with REITs and Real Estate Investments. Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 347,952,755     $ 22,488,882     $ (71,048,354 )   $ (48,559,472 )    
 
 
 
 
 
40 Semiannual Report 2010

 

 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 41

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
42 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Small Cap Index Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and BlackRock Investment Management, LLC, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class Y shares was in the first quintile of its Peer Group, and for the two-year period ended September 30, 2009, the Fund’s performance for Class Y shares was in the second quintile of its Peer Group. The Trustees noted that the Fund had performed favorably over the same time period compared to its Peer Universe. The Trustees then noted that the Peer Universe was not composed exclusively of index or index-based funds, but rather includes all small cap core funds underlying variable insurance products, regardless of asset size or primary channel of distribution. The Trustees also noted that the Fund slightly underperformed its benchmark, the Russell 2000 Index. The Trustees noted that this was to be expected given that the Index, unlike the Fund, does not have expenses. The Trustees noted that the Fund had underperformed its Index by only nine basis points for the two-year period ended September 30, 2009, and that a slight tracking error was to be expected.
 
The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class Y shares were in the first quintile of its Peer Group. The Trustees noted that shareholders the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 43

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
44 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 45

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
46 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 47

 

 
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Oppenheimer NVIT Large Cap Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
9
   
Statement of Operations
       
10
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
20
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-LCG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Oppenheimer NVIT Large Cap Growth Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Oppenheimer NVIT Large Cap Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       884.30       3.04       0.65  
      Hypothetical b     1,000.00       1,021.57       3.26       0.65  
 
 
Class II Shares
    Actual       1,000.00       883.60       4.20       0.90  
      Hypothetical b     1,000.00       1,020.33       4.51       0.90  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Oppenheimer NVIT Large Cap Growth Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    96 .7%
Mutual Fund
    4 .1%
Liabilities in excess of other assets
    (0 .8)%
         
      100 .0%
 
         
Top Industries †    
 
Computers & Peripherals
    8 .4%
Oil, Gas & Consumable Fuels
    5 .0%
Internet Software & Services
    4 .6%
Information Technology Services
    4 .5%
Pharmaceuticals
    4 .4%
Communications Equipment
    4 .3%
Software
    4 .2%
Health Care Providers & Services
    3 .8%
Textiles, Apparel & Luxury Goods
    3 .5%
Diversified Financial Services
    3 .5%
Other Industries
    53 .8%
         
      100 .0%
         
Top Holdings †    
 
Apple, Inc. 
    4 .4%
Invesco Liquid Assets Portfolio — Institutional Class
    4 .0%
Google, Inc., Class A
    3 .2%
Hewlett-Packard Co. 
    2 .8%
PepsiCo, Inc. 
    2 .6%
QUALCOMM, Inc. 
    2 .6%
Occidental Petroleum Corp. 
    2 .2%
Oracle Corp. 
    2 .1%
Express Scripts, Inc. 
    2 .0%
Visa, Inc., Class A
    1 .9%
Other Holdings
    72 .2%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Oppenheimer NVIT Large Cap Growth Fund
 
                 
                 
Common Stocks 96.7%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 3.3%
General Dynamics Corp.
    990     $ 57,974  
Goodrich Corp.
    1,175       77,844  
Lockheed Martin Corp.
    1,535       114,358  
United Technologies Corp.
    1,500       97,365  
                 
              347,541  
                 
 
 
Beverages 2.7%
PepsiCo, Inc.
    4,600       280,370  
                 
 
 
Biotechnology 3.4%
Amgen, Inc.*
    2,685       141,231  
Celgene Corp.*
    2,670       135,690  
Gilead Sciences, Inc.*
    2,440       83,643  
                 
              360,564  
                 
 
 
Capital Markets 2.2%
Charles Schwab Corp. (The)
    4,975       70,546  
Credit Suisse Group AG REG
    2,467       92,752  
Goldman Sachs Group, Inc. (The)
    290       38,068  
T. Rowe Price Group, Inc.
    660       29,298  
                 
              230,664  
                 
 
 
Chemicals 3.4%
Celanese Corp., Series A
    1,470       36,618  
Ecolab, Inc.
    600       26,946  
Monsanto Co.
    1,245       57,544  
Potash Corp. of Saskatchewan, Inc.
    1,005       86,671  
Praxair, Inc.
    1,960       148,940  
                 
              356,719  
                 
 
 
Commercial Banks 0.8%
PNC Financial Services Group, Inc.
    90       5,085  
Wells Fargo & Co.
    3,250       83,200  
                 
              88,285  
                 
 
 
Communications Equipment 4.3%
Cisco Systems, Inc.*
    4,300       91,633  
Juniper Networks, Inc.*
    3,730       85,119  
QUALCOMM, Inc.
    8,455       277,662  
                 
              454,414  
                 
 
 
Computers & Peripherals 8.4%
Apple, Inc.*
    1,845       464,073  
Hewlett-Packard Co.
    7,000       302,960  
NetApp, Inc.*
    3,325       124,056  
                 
              891,089  
                 
 
 
Diversified Financial Services 3.6%
BM&F Bovespa SA
    13,840       89,711  
CME Group, Inc.
    260       73,203  
IntercontinentalExchange, Inc.*
    755       85,337  
JPMorgan Chase & Co.
    3,090       113,125  
MSCI, Inc., Class A*
    575       15,755  
                 
              377,131  
                 
 
 
Electrical Equipment 1.6%
ABB Ltd. REG*
    7,908       137,683  
Emerson Electric Co.
    750       32,767  
                 
              170,450  
                 
 
 
Electronic Equipment, Instruments & Components 0.9%
Corning, Inc.
    5,630       90,924  
                 
 
 
Energy Equipment & Services 2.9%
Cameron International Corp.*
    1,575       51,219  
Halliburton Co.
    4,585       112,562  
Schlumberger Ltd.
    2,505       138,626  
                 
              302,407  
                 
 
 
Food & Staples Retailing 1.6%
Wal-Mart Stores, Inc.
    3,505       168,485  
                 
 
 
Food Products 3.1%
Dannone SA
    200       10,722  
General Mills, Inc.
    1,500       53,280  
Nestle SA REG
    3,082       148,611  
Unilever NV CVA-NL
    4,195       114,562  
                 
              327,175  
                 
 
 
Health Care Equipment & Supplies 3.5%
Baxter International, Inc.
    2,825       114,808  
COVIDIEN PLC
    530       21,295  
DENTSPLY International, Inc.
    2,440       72,981  
St. Jude Medical, Inc.*
    1,615       58,285  
Stryker Corp.
    1,945       97,367  
                 
              364,736  
                 
 
 
Health Care Providers & Services 3.8%
Express Scripts, Inc.*
    4,645       218,408  
Henry Schein, Inc.*
    1,655       90,859  
Medco Health Solutions, Inc.*
    1,735       95,564  
                 
              404,831  
                 
 
 
Hotels, Restaurants & Leisure 1.4%
McDonald’s Corp.
    2,295       151,172  
                 
 
 
Household Products 1.6%
Colgate-Palmolive Co.
    2,200       173,272  
                 
 
 
Information Technology Services 4.5%
Cognizant Technology Solutions Corp., Class A*
    990       49,560  
International Business Machines Corp.
    170       20,992  
MasterCard, Inc., Class A
    685       136,678  
Visa, Inc., Class A
    2,875       203,406  
Western Union Co. (The)
    4,385       65,380  
                 
              476,016  
                 
 
 
Internet & Catalog Retail 1.0%
Amazon.com, Inc.*
    1,010       110,353  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Oppenheimer NVIT Large Cap Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Internet Software & Services 4.6%
Akamai Technologies, Inc.*
    510     $ 20,691  
eBay, Inc.*
    6,520       127,857  
Google, Inc., Class A*
    755       335,937  
                 
              484,485  
                 
 
 
Life Sciences Tools & Services 1.6%
Mettler-Toledo International, Inc.*
    100       11,163  
Thermo Fisher Scientific, Inc.*
    3,275       160,639  
                 
              171,802  
                 
 
 
Machinery 1.9%
Danaher Corp.
    280       10,393  
Joy Global, Inc.
    2,210       110,699  
Parker Hannifin Corp.
    1,380       76,535  
                 
              197,627  
                 
 
 
Media 2.9%
Cablevision Systems Corp., Class A
    5,285       126,893  
McGraw-Hill Cos., Inc. (The)
    2,585       72,742  
Walt Disney Co. (The)
    3,545       111,667  
                 
              311,302  
                 
 
 
Metals & Mining 0.3%
Barrick Gold Corp.
    170       7,720  
Xstrata PLC
    2,135       27,957  
                 
              35,677  
                 
 
 
Multiline Retail 0.5%
Target Corp.
    1,040       51,137  
                 
 
 
Oil, Gas & Consumable Fuels 5.0%
Apache Corp.
    1,165       98,081  
ConocoPhillips
    430       21,109  
EOG Resources, Inc.
    790       77,712  
Occidental Petroleum Corp.
    2,945       227,207  
Range Resources Corp.
    1,035       41,555  
Southwestern Energy Co.*
    1,665       64,336  
                 
              530,000  
                 
 
 
Pharmaceuticals 4.4%
Allergan, Inc.
    3,005       175,071  
Bristol-Myers Squibb Co.
    840       20,950  
Novo Nordisk AS, Class B
    1,025       82,812  
Roche Holding AG
    860       118,372  
Shire PLC
    3,555       72,928  
                 
              470,133  
                 
 
 
Real Estate Management & Development 0.5%
Jones Lang LaSalle, Inc.
    830       54,481  
                 
 
 
Road & Rail 1.0%
Union Pacific Corp.
    1,520       105,655  
                 
 
 
Semiconductors & Semiconductor Equipment 3.3%
Broadcom Corp., Class A
    5,160       170,125  
First Solar, Inc.*
    965       109,846  
NVIDIA Corp.*
    6,700       68,407  
                 
              348,378  
                 
 
 
Software 4.3%
Adobe Systems, Inc.*
    5,785       152,898  
Oracle Corp.
    10,575       226,939  
VMware, Inc., Class A*
    1,120       70,101  
                 
              449,938  
                 
 
 
Specialty Retail 1.7%
Bed Bath & Beyond, Inc.*
    2,745       101,785  
TJX Cos., Inc.
    1,780       74,671  
                 
              176,456  
                 
 
 
Textiles, Apparel & Luxury Goods 3.6%
Coach, Inc.
    4,400       160,820  
NIKE, Inc., Class B
    1,865       125,981  
Polo Ralph Lauren Corp.
    1,245       90,835  
                 
              377,636  
                 
 
 
Tobacco 0.8%
Philip Morris International, Inc.
    1,745       79,991  
                 
 
 
Wireless Telecommunication Services 2.3%
Crown Castle International Corp.*
    3,590       133,763  
NII Holdings, Inc.*
    3,330       108,292  
                 
              242,055  
                 
         
Total Common Stocks (cost $10,416,563)
    10,213,351  
         
                 
                 
Mutual Fund 4.1%
                 
                 
Money Market Fund 4.1%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    429,690       429,690  
                 
         
Total Mutual Fund (cost $429,690)
    429,690  
         
         
Total Investments
(cost $10,846,253) (b) — 100.8%
    10,643,041  
         
Liabilities in excess of other assets — (0.8%)
    (84,621 )
         
         
NET ASSETS — 100.0%
  $ 10,558,420  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
AG Stock Corporation
 
 
 
6 Semiannual Report 2010

 

 
 
 
AS Stock Corporation
 
CVA Dutch Certificate
 
Ltd. Limited
 
NL Netherlands
 
NV Public Traded Company
 
PLC Public Limited Company
 
REG Registered Shares
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Oppenheimer
 		 
      NVIT Large Cap
 		 
      Growth Fund  
       
Assets:
         
Investments, at value (cost $10,846,253)
    $ 10,643,041  
Foreign currencies, at value (cost $694)
      694  
Dividends receivable
      7,084  
Receivable for investments sold
      740,519  
Receivable for capital shares issued
      905  
Reclaims receivable
      2,998  
Receivable from adviser
      5,899  
Prepaid expenses and other assets
      2,409  
           
Total Assets
      11,403,549  
           
Liabilities:
         
Payable for investments purchased
      801,896  
Payable for capital shares redeemed
      3,375  
Cash overdraft (Note 2)
      692  
Accrued expenses and other payables:
         
Fund administration fees
      6,764  
Distribution fees
      655  
Administrative servicing fees
      8,288  
Accounting and transfer agent fees
      7,629  
Compliance program costs (Note 3)
      53  
Professional fees
      7,181  
Printing fees
      8,462  
Other
      134  
           
Total Liabilities
      845,129  
           
Net Assets
    $ 10,558,420  
           
Represented by:
         
Capital
    $ 10,629,243  
Accumulated undistributed net investment income
      10,079  
Accumulated net realized gains from investment and foreign currency transactions
      121,804  
Net unrealized appreciation/(depreciation) from investments
      (203,212 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      506  
           
Net Assets
    $ 10,558,420  
           
Net Assets:
         
Class I Shares
    $ 7,459,148  
Class II Shares
      3,099,272  
           
Total
    $ 10,558,420  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      603,779  
Class II Shares
      251,187  
           
Total
      854,966  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 12.35  
Class II Shares
    $ 12.34  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      Oppenheimer
 		 
      NVIT Large Cap
 		 
      Growth Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 55,969  
Foreign tax withholding
      (1,671 )
           
Total Income
      54,298  
           
EXPENSES:
         
Investment advisory fees
      25,266  
Fund administration fees
      14,968  
Distribution fees Class II Shares
      3,100  
Administrative servicing fees Class I Shares
      5,720  
Administrative servicing fees Class II Shares
      1,860  
Professional fees
      7,486  
Printing fees
      5,608  
Trustee fees
      180  
Custodian fees
      186  
Accounting and transfer agent fees
      4,835  
Compliance program costs (Note 3)
      18  
Other
      947  
           
Total expenses before earnings credit and expenses reimbursed
      70,174  
Earnings credit (Note 4)
      (2 )
Expenses reimbursed by adviser (Note 3)
      (34,199 )
           
Net Expenses
      35,973  
           
NET INVESTMENT INCOME
      18,325  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      124,290  
Net realized losses from foreign currency transactions (Note 2)
      (1,023 )
           
Net realized gains from investment and foreign currency transactions
      123,267  
           
Net change in unrealized appreciation/(depreciation) from investments
      (1,566,402 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      506  
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (1,565,896 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (1,442,629 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (1,424,304 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statements of Changes in Net Assets
 
                     
      Oppenheimer NVIT Large Cap
 		 
      Growth Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a)  
Operations:
                   
Net investment income
    $ 18,325       $ 9,765  
Net realized gains from investment and foreign currency transactions
      123,267         224,479  
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (1,565,896 )       1,363,190  
                     
Change in net assets resulting from operations
      (1,424,304 )       1,597,434  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (7,665 )       (11,579 )
Class II
      (836 )       (82 )
Net realized gains:
                   
Class I
      (58,085 )       (115,249 )
Class II
      (23,846 )       (26,626 )
                     
Change in net assets from shareholder distributions
      (90,432 )       (153,536 )
                     
Change in net assets from capital transactions
      3,377,393         7,251,865  
                     
Change in net assets
      1,862,657         8,695,763  
                     
                     
Net Assets:
                   
Beginning of period
      8,695,763         –  
                     
End of period
    $ 10,558,420       $ 8,695,763  
                     
Accumulated undistributed net investment income at end of period
    $ 10,079       $ 255  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 1,962,236       $ 5,713,467  
Dividends reinvested
      65,750         126,828  
Cost of shares redeemed
      (481,270 )       (169,941 )
                     
Total Class I
      1,546,716         5,670,354  
                     
Class II Shares
                   
Proceeds from shares issued
      2,023,358         1,577,115  
Dividends reinvested
      24,682         26,708  
Cost of shares redeemed
      (217,363 )       (22,312 )
                     
Total Class II
      1,830,677         1,581,511  
                     
Change in net assets from capital transactions
    $ 3,377,393       $ 7,251,865  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      136,688         500,876  
Reinvested
      4,903         9,168  
Redeemed
      (35,087 )       (12,769 )
                     
Total Class I Shares
      106,504         497,275  
                     
Class II Shares
                   
Issued
      144,374         120,374  
Reinvested
      1,842         1,917  
Redeemed
      (15,567 )       (1,753 )
                     
Total Class II Shares
      130,649         120,538  
                     
Total change in shares
      237,153         617,813  
                     
 
 
Amount designated as “–” are zero or have been rounded to zero.
 
(a) For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Oppenheimer NVIT Large Cap Growth Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                    Ratio of Net
 		    Ratio of
 		         
                and
 		                                              Ratio of
 		    Investment
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Expenses
 		    Income
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    to Average
 		    to Average
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    Net
 		    Net
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     of Period     Assets (b)     Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .08       0 .03       (1 .65)       (1 .62)       (0 .01)       (0 .10)       (0 .11)     $ 12 .35       (11 .57%)     $ 7,459,148         0 .65%       0 .42%       1 .31%       26 .22%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .03       4 .32       4 .35       (0 .03)       (0 .24)       (0 .27)     $ 14 .08       43 .53%     $ 7,000,118         0 .65%       0 .29%       1 .44%       29 .72%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 14 .07       0 .01       (1 .64)       (1 .63)       –          (0 .10)       (0 .10)     $ 12 .34       (11 .64%)     $ 3,099,272         0 .90%       0 .20%       1 .61%       26 .22%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       –          4 .33       4 .33       (0 .02)       (0 .24)       (0 .26)     $ 14 .07       43 .29%     $ 1,695,645         0 .89%       0 .02%       1 .94%       29 .72%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Oppenheimer NVIT Large Cap Growth Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from
 
 
 
12 Semiannual Report 2010

 

 
 
quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $       347,541     $    —     $  —     $       347,541      
 
 
Beverages
    280,370       —       —       280,370      
 
 
Biotechnology
    360,564       —       —       360,564      
 
 
Capital Markets
    137,912       92,752       —       230,664      
 
 
Chemicals
    356,719       —       —       356,719      
 
 
Commercial Banks
    88,285       —       —       88,285      
 
 
Communications Equipment
    454,414       —       —       454,414      
 
 
Computers & Peripherals
    891,089       —       —       891,089      
 
 
Diversified Financial Services
    377,131       —       —       377,131      
 
 
Electrical Equipment
    32,767       137,683       —       170,450      
 
 
Electronic Equipment, Instruments & Components
    90,924       —       —       90,924      
 
 
Energy Equipment & Services
    302,407       —       —       302,407      
 
 
Food & Staples Retailing
    168,485       —       —       168,485      
 
 
Food Products
    53,280       273,895       —       327,175      
 
 
Health Care Equipment & Supplies
    364,736       —       —       364,736      
 
 
Health Care Providers & Services
    404,831       —       —       404,831      
 
 
Hotels, Restaurants & Leisure
    151,172       —       —       151,172      
 
 
Household Products
    173,272       —       —       173,272      
 
 
Information Technology Services
    476,016       —       —       476,016      
 
 
Internet & Catalog Retail
    110,353       —       —       110,353      
 
 
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Internet Software & Services
  $ 484,485     $ —     $ —     $ 484,485      
 
 
Life Sciences Tools & Services
    171,802       —       —       171,802      
 
 
Machinery
    197,627       —       —       197,627      
 
 
Media
    311,302       —       —       311,302      
 
 
Metals & Mining
    7,720       27,957       —       35,677      
 
 
Multiline Retail
    51,137       —       —       51,137      
 
 
Oil, Gas & Consumable Fuels
    530,000       —       —       530,000      
 
 
Pharmaceuticals
    196,021       274,112       —       470,133      
 
 
Real Estate Management & Development
    54,481       —       —       54,481      
 
 
Road & Rail
    105,655       —       —       105,655      
 
 
Semiconductors & Semiconductor Equipment
    348,378       —       —       348,378      
 
 
Software
    449,938       —       —       449,938      
 
 
Specialty Retail
    176,456       —       —       176,456      
 
 
Textiles, Apparel & Luxury Goods
    377,636       —       —       377,636      
 
 
Tobacco
    79,991       —       —       79,991      
 
 
Wireless Telecommunication Services
    242,055       —       —       242,055      
 
 
Total Common Stocks
    9,406,952       806,399       —       10,213,351      
 
 
Mutual Fund
    429,690       —       —       429,690      
 
 
Total Assets
  $ 9,836,642     $ 806,399     $  —     $ 10,643,041      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $692 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 4.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the
 
 
 
14 Semiannual Report 2010

 

 
 
accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(f)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2009 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable period ended December 31, 2009 remains subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(g)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Oppenheimer Funds, Inc. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.50%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $12,633 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.50% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund are:
 
                             
    Period Ended
 		  Six Months Ended
 		       
    2009 Amount (a)   June 30, 2010   Total    
 
    $ 30,715     $ 34,199     $ 64,914      
 
 
(a) For the period March 25, 2009 (commencement of operations) through December 31, 2009.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
16 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $7,580 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $18.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $5,852,001 and sales of $2,575,514 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
18 Semiannual Report 2010

 

 
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 10,853,978     $ 504,365     $ (715,302 )   $ (210,937 )    
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 19

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
20 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Oppenheimer NVIT Large Cap Growth Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and OppenheimerFunds, Inc. (“Oppenheimer”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that, for the period since the Fund’s inception in March 2009 through September 30, 2009, the Fund’s performance for Class II shares was in the first quintile of its Peer Group. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of Oppenheimer, the Trustees took into consideration Oppenheimer’s performance and services over longer periods regarding the management of comparable accounts.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

Van Kampen NVIT Comstock Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
13
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CVAL (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Van Kampen NVIT Comstock Value Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
Van Kampen NVIT Comstock
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       939.20       4.42       0.92  
      Hypothetical b     1,000.00       1,020.23       4.61       0.92  
 
 
Class II Shares
    Actual       1,000.00       937.90       5.62       1.17  
      Hypothetical b     1,000.00       1,018.99       5.86       1.17  
 
 
Class IV Shares
    Actual       1,000.00       938.20       4.42       0.92  
      Hypothetical b     1,000.00       1,020.23       4.61       0.92  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Van Kampen NVIT Comstock Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .7%
Mutual Fund
    1 .2%
Other assets in excess of liabilities
    1 .1%
         
      100 .0%
         
Top Industries †    
 
Media
    14 .9%
Insurance
    10 .8%
Pharmaceuticals
    9 .6%
Oil, Gas & Consumable Fuels
    6 .3%
Diversified Financial Services
    5 .9%
Internet Software & Services
    4 .0%
Health Care Providers & Services
    3 .7%
Food & Staples Retailing
    3 .5%
Commercial Banks
    3 .4%
Diversified Telecommunication Services
    3 .3%
Other Industries
    34 .6%
         
      100 .0%
         
Top Holdings †    
 
Comcast Corp., Class A
    5 .0%
Chubb Corp. 
    4 .8%
Viacom, Inc., Class B
    4 .2%
International Paper Co. 
    2 .8%
Pfizer, Inc. 
    2 .6%
eBay, Inc. 
    2 .6%
JPMorgan Chase & Co. 
    2 .5%
Bank of America Corp. 
    2 .4%
Wal-Mart Stores, Inc. 
    2 .3%
Bristol-Myers Squibb Co. 
    2 .2%
Other Holdings
    68 .6%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Van Kampen NVIT Comstock Value Fund
 
                 
Common Stocks 97.7%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 0.9%
Honeywell International, Inc.
    43,100     $ 1,682,193  
                 
 
 
Beverages 1.6%
Coca-Cola Co. (The)
    44,900       2,250,388  
PepsiCo, Inc.
    9,700       591,215  
                 
              2,841,603  
                 
 
 
Capital Markets 3.2%
Bank of New York Mellon Corp. (The)
    136,821       3,378,110  
Goldman Sachs Group, Inc. (The)
    12,400       1,627,748  
State Street Corp.
    19,900       673,018  
                 
              5,678,876  
                 
 
 
Chemicals 0.6%
E.I. du Pont de Nemours & Co.
    31,940       1,104,805  
                 
 
 
Commercial Banks 3.3%
PNC Financial Services Group, Inc.
    45,900       2,593,350  
U.S. Bancorp
    59,900       1,338,765  
Wells Fargo & Co.
    77,300       1,978,880  
                 
              5,910,995  
                 
 
 
Communications Equipment 1.1%
Cisco Systems, Inc.*
    88,500       1,885,935  
 
 
Computers & Peripherals 1.7%
Dell, Inc.*
    98,729       1,190,672  
Hewlett-Packard Co.
    44,152       1,910,898  
                 
              3,101,570  
                 
 
 
Diversified Financial Services 5.9%
Bank of America Corp.
    292,009       4,196,169  
Citigroup, Inc.*
    481,000       1,808,560  
JPMorgan Chase & Co.
    121,500       4,448,115  
                 
              10,452,844  
                 
 
 
Diversified Telecommunication Services 3.2%
AT&T, Inc.
    93,100       2,252,089  
Verizon Communications, Inc.
    124,910       3,499,978  
                 
              5,752,067  
                 
 
 
Electric Utilities 0.5%
American Electric Power Co., Inc.
    26,200       846,260  
                 
 
 
Electrical Equipment 0.8%
Emerson Electric Co.
    30,400       1,328,176  
                 
 
 
Energy Equipment & Services 1.7%
Halliburton Co.
    99,700       2,447,635  
Noble Corp.*
    20,867       644,999  
                 
              3,092,634  
                 
 
 
Food & Staples Retailing 3.5%
CVS Caremark Corp.
    72,600       2,128,632  
Wal-Mart Stores, Inc.
    83,360       4,007,115  
                 
              6,135,747  
                 
 
 
Food Products 3.1%
Kraft Foods, Inc., Class A
    93,459       2,616,852  
Unilever NV NYRS-NL
    103,227       2,820,162  
                 
              5,437,014  
                 
 
 
Health Care Equipment & Supplies 0.3%
Boston Scientific Corp.*
    104,600       606,680  
                 
 
 
Health Care Providers & Services 3.7%
Cardinal Health, Inc.
    92,547       3,110,505  
UnitedHealth Group, Inc.
    76,229       2,164,903  
WellPoint, Inc.*
    25,100       1,228,143  
                 
              6,503,551  
                 
 
 
Household Products 0.5%
Procter & Gamble Co. (The)
    14,500       869,710  
                 
 
 
Industrial Conglomerates 2.8%
General Electric Co.
    162,600       2,344,692  
Textron, Inc.
    10,663       180,951  
Tyco International Ltd.
    71,400       2,515,422  
                 
              5,041,065  
                 
 
 
Information Technology Services 0.8%
Accenture PLC, Class A
    26,600       1,028,090  
Western Union Co. (The)
    27,000       402,570  
                 
              1,430,660  
                 
 
 
Insurance 10.7%
Aflac, Inc.
    20,600       879,002  
Berkshire Hathaway, Inc., Class B*
    27,000       2,151,630  
Chubb Corp.
    170,006       8,502,000  
MetLife, Inc.
    69,600       2,628,096  
Torchmark Corp.
    24,100       1,193,191  
Travelers Cos., Inc. (The)
    75,100       3,698,675  
                 
              19,052,594  
                 
 
 
Internet Software & Services 3.9%
eBay, Inc.*
    232,700       4,563,247  
Yahoo!, Inc.*
    173,938       2,405,563  
                 
              6,968,810  
                 
 
 
Machinery 1.1%
Ingersoll-Rand PLC
    55,100       1,900,399  
                 
 
 
Media 14.8%
Comcast Corp., Class A
    502,259       8,724,239  
DIRECTV Group, Inc. (The), Class A*
    52,991       1,797,454  
News Corp., Class B
    175,800       2,434,830  
Time Warner Cable, Inc.
    54,926       2,860,546  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Van Kampen NVIT Comstock Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Media (continued)
                 
Time Warner, Inc.
    105,900     $ 3,061,569  
Viacom, Inc., Class B
    235,186       7,377,785  
                 
              26,256,423  
                 
 
 
Metals & Mining 0.7%
Alcoa, Inc.
    124,954       1,257,037  
                 
 
 
Multiline Retail 1.2%
J.C. Penney Co., Inc.
    44,700       960,156  
Macy’s, Inc.
    26,958       482,548  
Target Corp.
    14,300       703,131  
                 
              2,145,835  
                 
 
 
Multi-Utilities 0.3%
Sempra Energy
    12,400       580,196  
                 
 
 
Oil, Gas & Consumable Fuels 6.3%
Anadarko Petroleum Corp.
    14,635       528,177  
BP PLC ADR-UK
    27,600       797,088  
Chevron Corp.
    50,300       3,413,358  
ConocoPhillips
    55,600       2,729,404  
Royal Dutch Shell PLC ADR-NL
    50,934       2,557,906  
Total SA ADR-FR
    24,500       1,093,680  
                 
              11,119,613  
                 
 
 
Paper & Forest Products 2.7%
International Paper Co.
    214,674       4,858,073  
                 
 
 
Personal Products 0.5%
Avon Products, Inc.
    35,095       930,018  
                 
 
 
Pharmaceuticals 9.5%
Abbott Laboratories
    32,517       1,521,146  
Bristol-Myers Squibb Co.
    155,451       3,876,948  
Eli Lilly & Co.
    23,764       796,094  
GlaxoSmithKline PLC ADR-UK
    26,200       891,062  
Merck & Co., Inc.
    109,660       3,834,810  
Pfizer, Inc.
    325,016       4,634,728  
Roche Holding AG ADR-CH
    37,700       1,293,110  
                 
              16,847,898  
                 
 
 
Semiconductors & Semiconductor Equipment 1.9%
Intel Corp.
    134,200       2,610,190  
KLA-Tencor Corp.
    26,926       750,697  
                 
              3,360,887  
                 
 
 
Software 0.3%
Microsoft Corp.
    25,100       577,551  
                 
 
 
Specialty Retail 1.9%
Home Depot, Inc.
    58,400       1,639,288  
Lowe’s Cos., Inc.
    81,700       1,668,314  
                 
              3,307,602  
                 
 
 
Tobacco 1.8%
Altria Group, Inc.
    64,637       1,295,325  
Philip Morris International, Inc.
    40,063       1,836,488  
                 
              3,131,813  
                 
 
 
Wireless Telecommunication Services 0.9%
Vodafone Group PLC ADR-UK
    75,200       1,554,384  
                 
         
Total Common Stocks (cost $173,910,741)
    173,551,518  
         
                 
                 
Mutual Fund 1.2%
Money Market Fund 1.2%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    2,167,551       2,167,551  
                 
         
Total Mutual Fund (cost $2,167,551)
    2,167,551  
         
         
Total Investments
(cost $176,078,292) (b) — 98.9%
    175,719,069  
         
Other assets in excess of liabilities — 1.1%
    1,905,405  
         
         
NET ASSETS — 100.0%
  $ 177,624,474  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
CH Switzerland
 
FR France
 
Ltd. Limited
 
NL Netherlands
 
NV Public Traded Company
 
NYRS New York Registry Shares
 
PLC Public Limited Company
 
SA Stock Company
 
UK United Kingdom
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Van Kampen NVIT
 		 
    Comstock Value Fund  
       
Assets:
         
Investments, at value (cost $176,078,292)
    $ 175,719,069  
Cash
      245,646  
Interest and dividends receivable
      427,293  
Receivable for investments sold
      2,593,410  
Receivable for capital shares issued
      72,536  
Reclaims receivable
      2,540  
Prepaid expenses and other assets
      1,977  
           
Total Assets
      179,062,471  
           
Liabilities:
         
Payable for investments purchased
      1,179,861  
Payable for capital shares redeemed
      22,625  
Accrued expenses and other payables:
         
Investment advisory fees
      106,083  
Fund administration fees
      10,255  
Distribution fees
      26,164  
Administrative servicing fees
      57,609  
Accounting and transfer agent fees
      2,288  
Custodian fees
      807  
Compliance program costs (Note 3)
      616  
Professional fees
      10,601  
Printing fees
      20,692  
Other
      396  
           
Total Liabilities
      1,437,997  
           
Net Assets
    $ 177,624,474  
           
Represented by:
         
Capital
    $ 287,902,278  
Accumulated undistributed net investment income
      351,681  
Accumulated net realized losses from investment transactions
      (110,270,262 )
Net unrealized appreciation/(depreciation) from investments
      (359,223 )
           
Net Assets
    $ 177,624,474  
           
Net Assets:
         
Class I Shares
    $ 38,453,271  
Class II Shares
      121,161,978  
Class IV Shares
      18,009,225  
           
Total
    $ 177,624,474  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      4,645,088  
Class II Shares
      14,707,355  
Class IV Shares
      2,175,156  
           
Total
      21,527,599  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.28  
Class II Shares
    $ 8.24  
Class IV Shares
    $ 8.28  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      Van Kampen NVIT
 		 
    Comstock Value Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 2,173,351  
Foreign tax withholding
      (861 )
           
Total Income
      2,172,490  
           
EXPENSES:
         
Investment advisory fees
      665,318  
Fund administration fees
      44,681  
Distribution fees Class II Shares
      161,836  
Administrative servicing fees Class I Shares
      32,679  
Administrative servicing fees Class II Shares
      97,102  
Administrative servicing fees Class IV Shares
      15,171  
Professional fees
      14,700  
Printing fees
      10,473  
Trustee fees
      3,507  
Custodian fees
      3,311  
Accounting and transfer agent fees
      2,006  
Compliance program costs (Note 3)
      418  
Other
      5,047  
           
Total expenses before earnings credits
      1,056,249  
Earnings credit (Note 4)
      (2 )
           
Net Expenses
      1,056,247  
           
NET INVESTMENT INCOME
      1,116,243  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      1,806,467  
Net change in unrealized appreciation/(depreciation) from investments
      (15,479,414 )
           
Net realized/unrealized losses from investments
      (13,672,947 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (12,556,704 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      Van Kampen NVIT Comstock Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,116,243       $ 2,110,596  
Net realized gains/(losses) from investment transactions
      1,806,467         (42,794,587 )
Net change in unrealized appreciation/(depreciation) from investments
      (15,479,414 )       74,859,209  
                     
Change in net assets resulting from operations
      (12,556,704 )       34,175,218  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (322,153 )       (463,749 )
Class II
      (833,718 )       (947,687 )
Class IV
      (149,439 )       (255,567 )
                     
Change in net assets from shareholder distributions
      (1,305,310 )       (1,667,003 )
                     
Change in net assets from capital transactions
      41,301,400         (40,403,796 )
                     
Change in net assets
      27,439,386         (7,895,581 )
                     
                     
Net Assets:
                   
Beginning of period
      150,185,088         158,080,669  
                     
End of period
    $ 177,624,474       $ 150,185,088  
                     
Accumulated undistributed net investment income at end of period
    $ 351,681       $ 540,748  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 2,796,039       $ 9,602,985  
Dividends reinvested
      322,153         463,749  
Cost of shares redeemed
      (5,203,220 )       (20,500,129 )
                     
Total Class I
      (2,085,028 )       (10,433,395 )
                     
Class II Shares
                   
Proceeds from shares issued
      50,365,792         25,816,426  
Dividends reinvested
      833,718         947,687  
Cost of shares redeemed
      (5,880,233 )       (46,691,615 )
                     
Total Class II
      45,319,277         (19,927,502 )
                     
Class IV Shares
                   
Proceeds from shares issued
      444,102         687,241  
Dividends reinvested
      149,439         255,567  
Cost of shares redeemed
      (2,526,390 )       (10,985,707 )
                     
Total Class IV
      (1,932,849 )       (10,042,899 )
                     
Change in net assets from capital transactions
    $ 41,301,400       $ (40,403,796 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      307,977         1,319,917  
Reinvested
      35,121         67,057  
Redeemed
      (575,842 )       (2,882,455 )
                     
Total Class I Shares
      (232,744 )       (1,495,481 )
                     
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      Van Kampen NVIT Comstock Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class II Shares
                   
Issued
      5,571,181         3,939,716  
Reinvested
      91,263         140,525  
Redeemed
      (638,843 )       (6,798,890 )
                     
Total Class II Shares
      5,023,601         (2,718,649 )
                     
Class IV Shares
                   
Issued
      49,498         96,077  
Reinvested
      16,294         37,506  
Redeemed
      (280,412 )       (1,638,695 )
                     
Total Class IV Shares
      (214,620 )       (1,505,112 )
                     
Total change in shares
      4,576,237         (5,719,242 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Van Kampen NVIT Comstock Value Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                     
                and
 		                                                          Ratio of
 		         
                Unrealized
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Gains
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .88       0 .06       (0 .59)       (0 .53)       (0 .07)       –          (0 .07)     $ 8 .28       (6 .08%)     $ 38,453,271         0 .92%       1 .33%       0 .92%       10 .23%    
Year Ended December 31, 2009 (e)
  $ 6 .99       0 .11       1 .86       1 .97       (0 .08)       –          (0 .08)     $ 8 .88       28 .55%     $ 43,338,047         0 .96%       1 .52%       0 .96%(f)       36 .39%    
Year Ended December 31, 2008
  $ 11 .50       0 .20       (4 .38)       (4 .18)       (0 .19)       (0 .14)       (0 .33)     $ 6 .99       (36 .99%)     $ 44,542,409         0 .94%       2 .03%       0 .94%(f)       44 .30%    
Year Ended December 31, 2007
  $ 12 .54       0 .23       (0 .49)       (0 .26)       (0 .22)       (0 .56)       (0 .78)     $ 11 .50       (2 .22%)     $ 93,367,104         0 .87%       1 .78%       0 .87%(f)       29 .74%    
Year Ended December 31, 2006
  $ 11 .53       0 .23       1 .55       1 .78       (0 .21)       (0 .56)       (0 .77)     $ 12 .54       15 .91%     $ 112,029,051         0 .93%       1 .84%       0 .93%(f)       25 .62%    
Year Ended December 31, 2005
  $ 11 .53       0 .20       0 .29       0 .49       (0 .19)       (0 .30)       (0 .49)     $ 11 .53       4 .25%     $ 103,564,811         0 .94%       1 .65%       0 .94%(f)       33 .13%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .84       0 .05       (0 .59)       (0 .54)       (0 .06)       –          (0 .06)     $ 8 .24       (6 .21%)     $ 121,161,978         1 .17%       1 .07%       1 .17%       10 .23%    
Year Ended December 31, 2009(e)
  $ 6 .96       0 .09       1 .86       1 .95       (0 .07)       –          (0 .07)     $ 8 .84       28 .27%     $ 85,611,402         1 .24%       1 .30%       1 .24%(f)       36 .39%    
Year Ended December 31, 2008
  $ 11 .45       0 .16       (4 .35)       (4 .19)       (0 .16)       (0 .14)       (0 .30)     $ 6 .96       (37 .22%)     $ 86,316,563         1 .28%       1 .68%       1 .28%(f)       44 .30%    
Year Ended December 31, 2007
  $ 12 .50       0 .17       (0 .48)       (0 .31)       (0 .18)       (0 .56)       (0 .74)     $ 11 .45       (2 .61%)     $ 316,794,259         1 .21%       1 .42%       1 .21%(f)       29 .74%    
Year Ended December 31, 2006
  $ 11 .50       0 .16       1 .58       1 .74       (0 .18)       (0 .56)       (0 .74)     $ 12 .50       15 .56%     $ 204,233,443         1 .26%       1 .45%       1 .26%(f)       25 .62%    
Year Ended December 31, 2005
  $ 11 .50       0 .14       0 .31       0 .45       (0 .15)       (0 .30)       (0 .45)     $ 11 .50       3 .95%     $ 60,617,204         1 .28%       1 .31%       1 .31%(f)       33 .13%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  There were no fee reductions during the period.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Van Kampen NVIT Comstock Value Fund (Continued)
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                     
                and
 		                                                          Ratio of
 		         
                Unrealized
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Gains
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class IV Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .89       0 .06       (0 .60)       (0 .54)       (0 .07)       –          (0 .07)     $ 8 .28       (6 .18%)     $ 18,009,225         0 .92%       1 .33%       0 .92%       10 .23%    
Year Ended December 31, 2009 (e)
  $ 6 .99       0 .11       1 .87       1 .98       (0 .08)       –          (0 .08)     $ 8 .89       28 .69%     $ 21,235,639         0 .96%       1 .56%       0 .96%(f)       36 .39%    
Year Ended December 31, 2008
  $ 11 .50       0 .20       (4 .37)       (4 .17)       (0 .20)       (0 .14)       (0 .34)     $ 6 .99       (36 .96%)     $ 27,221,697         0 .90%       2 .07%       0 .90%(f)       44 .30%    
Year Ended December 31, 2007
  $ 12 .54       0 .23       (0 .49)       (0 .26)       (0 .22)       (0 .56)       (0 .78)     $ 11 .50       (2 .19%)     $ 48,991,872         0 .83%       1 .81%       0 .83%(f)       29 .74%    
Year Ended December 31, 2006
  $ 11 .53       0 .23       1 .55       1 .78       (0 .21)       (0 .56)       (0 .77)     $ 12 .54       15 .94%     $ 58,521,276         0 .90%       1 .86%       0 .90%(f)       25 .62%    
Year Ended December 31, 2005
  $ 11 .52       0 .19       0 .31       0 .50       (0 .19)       (0 .30)       (0 .49)     $ 11 .53       4 .36%     $ 55,297,136         0 .93%       1 .67%       0 .93%(f)       33 .13%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  There were no fee reductions during the period.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Van Kampen NVIT Comstock Value Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
 
 
Common Stocks
  $ 173,551,518     $ —     $ —     $ 173,551,518      
 
 
Mutual Fund
    2,167,551       —       —       2,167,551      
 
 
Total Assets
  $ 175,719,069     $ —     $ —     $ 175,719,069      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for
 
 
 
14 Semiannual Report 2010

 

 
 
federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. Beginning June 1, 2010, NFA has selected Invesco Advisers, Inc. (the “Subadviser”) (formerly known as Van Kampen Asset Management) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser. Prior to June 1, 2010, Van Kampen Asset Management was the subadviser for the Fund.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $50 million     0.80%      
 
 
    $50 million up to $250 million     0.65%      
 
 
    $250 million up to $500 million     0.60%      
 
 
    $500 million and more     0.55%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadvisers $302,302 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
16 Semiannual Report 2010

 

 
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares and 0.20% of the average daily net assets of Class IV shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $144,952 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $418.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $61,621,693 and sales of $18,635,815 (excluding short-term securities).
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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 Trust’s 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.
 
7. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
                                 
            Net Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 190,371,636     $ 5,005,630     $ (19,658,197)     $ (14,652,567)      
 
 
 
8. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Van Kampen NVIT Comstock Value Fund
 
After noting that the Board was scheduled to consider the approval of a new sub-advisory agreement with Invesco Advisers, Inc. (“Invesco”) in connection with the sale of Morgan Stanley’s Van Kampen Asset Management (“Van Kampen”) business and portions of Morgan Stanley Investment Management Inc.’s related businesses to Invesco Ltd. (the “Invesco Transaction”) later in the meeting, the Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Van Kampen, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Class II shares was in the fourth quintile of its Peer Group, while for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the third quintile and above the median of its Peer Group. The Trustees noted that, with respect to the five-year period ended September 30, 2009, the Fund’s Class II shares underperformed the Fund’s benchmark, the Russell 1000 Value Index, but that, for each of the one- and three-year periods ended September 30, 2009, the Fund’s Class II shares outperformed its benchmark. The Trustees noted that the Fund’s underperformance in 2007 and 2008 was primarily attributable to market conditions that had not been conducive to the Van Kampen’s contrarian approach.
 
The Trustees then noted that the Fund’s contractual advisory fee for Class II shares was in the third quintile and slightly above the median of its Peer Group. The Trustees also noted that while the Fund’s actual advisory fee was in the fifth quintile of its Peer Group, it was in the fourth quintile of its Peer Universe. The Trustees noted that the Fund’s total expenses were in the fifth quintile of its Peer Group, and that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule includes breakpoints, and that the first breakpoint has been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreement
 
At the March 10, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved a new sub-advisory agreement with Invesco as sub-adviser to the Fund. The Trustees noted that approval of the new sub-advisory agreement was being sought in connection with the Invesco Transaction, which resulted in a statutory assignment, and subsequent termination, of the Fund’s current sub-advisory agreement. The Trustees were provided with a detailed memorandum explaining that, as part of the Invesco Transaction, the entire Comstock Value portfolio management team was expected to join
 
 
 
20 Semiannual Report 2010

 

 
 
Invesco, and that no changes to the team’s process or strategies were expected. In considering whether to approve the new sub-advisory agreement with Invesco, the Board also took into account the materials, including investment performance and expense data, which had been presented to the Board as part of its annual contract review process.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are substantially similar in all material respects as the terms of the sub- advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by Invesco were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

NVIT Real Estate Fund (formerly, Van Kampen NVIT Real Estate Fund)
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
6
   
Statement of Assets and Liabilities
       
7
   
Statement of Operations
       
8
   
Statements of Changes in Net Assets
       
10
   
Financial Highlights
       
11
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-RE (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Real Estate Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Real Estate Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       1,065.50       4.97       0.97  
      Hypothetical b     1,000.00       1,019.98       4.86       0.97  
 
 
Class II Shares
    Actual       1,000.00       1,063.00       6.24       1.22  
      Hypothetical b     1,000.00       1,018.74       6.11       1.22  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Real Estate Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    98 .3%
Mutual Fund
    2 .1%
Liabilities in excess of other assets
    (0 .4)%
         
      100 .0%
         
Top Industries †    
 
Real Estate Investment Trusts (REITs)
    89 .8%
Hotels, Restaurants & Leisure
    3 .5%
Real Estate Management & Development
    3 .4%
Health Care Providers & Services
    1 .3%
Other Industries
    2 .0%
         
      100 .0%
         
Top Holdings †    
 
Simon Property Group, Inc. 
    11 .2%
Equity Residential
    9 .9%
Vornado Realty Trust
    7 .0%
Public Storage
    5 .5%
Boston Properties, Inc. 
    5 .4%
Host Hotels & Resorts, Inc. 
    4 .5%
Regency Centers Corp. 
    4 .3%
HCP, Inc. 
    4 .1%
AvalonBay Communities, Inc. 
    3 .9%
Starwood Hotels & Resorts Worldwide, Inc. 
    3 .4%
Other Holdings
    40 .8%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Real Estate Fund
 
                 
                 
Common Stocks 98.3%
                 
      Shares       Market
Value 		 
 
 
Health Care Providers & Services 1.3%
Assisted Living Concepts, Inc., Class A*
    98,608     $ 2,917,811  
Capital Senior Living Corp.*
    69,431       345,072  
                 
              3,262,883  
                 
 
 
Hotels, Restaurants & Leisure 3.5%
Morgans Hotel Group Co.*
    48,876       301,076  
Starwood Hotels & Resorts Worldwide, Inc.
    213,211       8,833,332  
                 
              9,134,408  
                 
 
 
Real Estate Investment Trusts (REITs) 90.1%
Acadia Realty Trust
    114,649       1,928,396  
AMB Property Corp.
    160,004       3,793,695  
Apartment Investment & Management Co., Class A
    58,928       1,141,435  
AvalonBay Communities, Inc.
    108,094       10,092,737  
BioMed Realty Trust, Inc.
    60,720       976,985  
Boston Properties, Inc.
    197,726       14,105,773  
BRCP REIT I, LLC* (a) (c)
    1,255,145       439,301  
BRCP REIT II, LLC* (a) (c)
    2,381,870       952,748  
BRE Properties, Inc.
    8,990       332,001  
Cabot Industrial Value Fund LP* (a) (c)
    5,040       1,864,800  
Camden Property Trust
    142,699       5,829,254  
Colony Financial, Inc.
    36,360       614,484  
Cousins Properties, Inc.
    415,021       2,797,242  
CreXus Investment Corp.
    51,430       639,275  
DCT Industrial Trust, Inc.
    321,351       1,452,507  
Digital Realty Trust, Inc.
    23,396       1,349,481  
Douglas Emmett, Inc.
    35,620       506,516  
Duke Realty Corp.
    84,198       955,647  
Equity Lifestyle Properties, Inc.
    112,946       5,447,386  
Equity One, Inc.
    5,841       91,120  
Equity Residential
    616,572       25,674,058  
Essex Property Trust, Inc.
    249       24,287  
Extendicare Real Estate Investment Trust
    14,738       118,231  
Federal Realty Investment Trust
    72,387       5,086,634  
HCP, Inc.
    330,824       10,669,074  
Healthcare Realty Trust, Inc.
    240,888       5,292,309  
Host Hotels & Resorts, Inc.
    867,488       11,693,738  
HRPT Properties Trust*
    85,740       532,445  
Keystone Industrial Fund LP* (a) (c)
    2,700,000       2,106,000  
Kilroy Realty Corp.
    46,253       1,375,102  
Kite Realty Group Trust
    61,756       258,140  
Lexington Realty Trust
    19,940       119,839  
Liberty Property Trust
    56,807       1,638,882  
LTC Properties, Inc.
    17,476       424,143  
Macerich Co. (The)
    80,106       2,989,556  
Mack-Cali Realty Corp.
    153,590       4,566,231  
Nationwide Health Properties, Inc.
    43,335       1,550,093  
Pebblebrook Hotel Trust*
    3,570       67,295  
Plum Creek Timber Co., Inc.
    214,281       7,399,123  
Post Properties, Inc.
    76,956       1,749,210  
ProLogis
    64,870       657,133  
PS Business Parks, Inc.
    36,507       2,036,360  
Public Storage
    163,693       14,390,252  
Rayonier, Inc.
    29,605       1,303,212  
Regency Centers Corp.
    321,402       11,056,229  
Retail Opportunity Investments Corp.
    205,791       1,985,883  
Senior Housing Properties Trust
    330,204       6,640,402  
Simon Property Group, Inc.
    362,404       29,264,123  
Sovran Self Storage, Inc.
    37,563       1,293,294  
Starwood Property Trust, Inc.
    101,409       1,718,883  
Taubman Centers, Inc.
    35,283       1,327,699  
Ventas, Inc.
    108,496       5,093,887  
Vornado Realty Trust
    248,514       18,129,096  
                 
              233,541,626  
                 
 
 
Real Estate Management & Development 3.4%
Brookfield Properties Corp.
    337,354       4,736,450  
Forest City Enterprises, Inc., Class A*
    251,215       2,843,754  
Hudson Pacific Properties, Inc.*
    79,050       1,363,612  
                 
              8,943,816  
                 
         
Total Common Stocks
(cost $216,445,465)
    254,882,733  
         
                 
                 
Mutual Fund 2.1%
                 
                 
Money Market Fund 2.1%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    5,328,283       5,328,283  
                 
         
Total Mutual Fund (cost $5,328,283)
    5,328,283  
         
         
Total Investments
(cost $221,773,748) (d) — 100.4%
    260,211,016  
         
Liabilities in excess of other assets — (0.4)%
    (1,051,517 )
         
         
NET ASSETS — 100.0%
  $ 259,159,499  
         
 
* Denotes a non-income producing security.
 
(a) Fair Valued Security.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) Securities considered illiquid and restricted. The total value of such securities as of June 30, 2010 was $5,362,849 and represents 2.07% of Net Assets.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
LLC Limited Liability Company
 
LP Limited Partnership
 
REIT Real Estate Investment Trust
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Real Estate Fund  
       
Assets:
         
Investments, at value (cost $221,773,748)
    $ 260,211,016  
Foreign currencies, at value (cost $488)
      470  
Dividends receivable
      690,010  
Receivable for investments sold
      339,645  
Prepaid expenses and other assets
      2,882  
           
Total Assets
      261,244,023  
           
Liabilities:
         
Payable for investments purchased
      1,574,068  
Payable for capital shares redeemed
      271,988  
Accrued expenses and other payables:
         
Investment advisory fees
      157,570  
Fund administration fees
      11,731  
Distribution fees
      12,417  
Administrative servicing fees
      31,569  
Accounting and transfer agent fees
      2,309  
Trustee fees
      187  
Compliance program costs (Note 3)
      1,816  
Professional fees
      11,097  
Other
      9,772  
           
Total Liabilities
      2,084,524  
           
Net Assets
    $ 259,159,499  
           
Represented by:
         
Capital
    $ 212,150,298  
Accumulated undistributed net investment income
      855,010  
Accumulated net realized gains from investment and foreign currency transactions
      7,716,964  
Net unrealized appreciation/(depreciation) from investments
      38,437,268  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (41 )
           
Net Assets
    $ 259,159,499  
           
Net Assets:
         
Class I Shares
    $ 202,233,272  
Class II Shares
      56,926,227  
           
Total
    $ 259,159,499  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      26,376,614  
Class II Shares
      7,451,406  
           
Total
      33,828,020  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.67  
Class II Shares
    $ 7.64  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Real Estate Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 4,319,408  
Foreign tax withholding
      (19,809 )
           
Total Income
      4,299,599  
           
EXPENSES:
         
Investment advisory fees
      922,958  
Fund administration fees
      55,158  
Distribution fees Class II Shares
      71,125  
Administrative servicing fees Class I Shares
      155,102  
Administrative servicing fees Class II Shares
      42,675  
Professional fees
      17,910  
Printing fees
      49,222  
Trustee fees
      4,572  
Custodian fees
      4,531  
Accounting and transfer agent fees
      2,200  
Compliance program costs (Note 3)
      530  
Other
      25,262  
           
Total expenses before earnings credits
      1,351,245  
Earnings credit (Note 4)
      (6 )
           
Net Expenses
      1,351,239  
           
NET INVESTMENT INCOME
      2,948,360  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      9,068,709  
Net realized gains from foreign currency transactions (Note 2)
      47  
           
Net realized gains from investment and foreign currency transactions
      9,068,756  
           
Net change in unrealized appreciation/(depreciation) from investments
      3,771,647  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (41 )
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      3,771,606  
           
Net realized/unrealized gains from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      12,840,362  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 15,788,722  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statements of Changes in Net Assets
 
                     
      NVIT Real Estate Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 2,948,360       $ 1,830,876  
Net realized gains from investment and foreign currency transactions
      9,068,756         1,997,430  
Net change in unrealized appreciation from investments and translations of assets and liabilities denominated in foreign currencies
      3,771,606         37,221,967  
                     
Change in net assets resulting from operations
      15,788,722         41,050,273  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (1,692,388 )       (1,625,890 )
Class II
      (400,962 )       (395,422 )
Net realized gains:
                   
Class I
      (1,351,124 )       (639,310 )
Class II
      (383,029 )       (171,012 )
                     
Change in net assets from shareholder distributions
      (3,827,503 )       (2,831,634 )
                     
Change in net assets from capital transactions
      (7,363,620 )       210,767,740  
                     
Change in net assets
      4,597,599         248,986,379  
                     
                     
Net Assets:
                   
Beginning of period
      254,561,900         5,575,521  
                     
End of period
    $ 259,159,499       $ 254,561,900  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ 855,010       $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 8,984,439       $ 23,626,969  
Proceeds from shares issued in-kind (Note 8)
      –         172,779,862  
Dividends reinvested
      3,043,512         2,265,200  
Cost of shares redeemed
      (20,939,498 )       (30,814,094 )
                     
Total Class I
      (8,911,547 )       167,857,937  
                     
Class II Shares
                   
Proceeds from shares issued
      5,306,714         7,396,866  
Proceeds from shares issued in-kind (Note 8)
      –         40,061,229  
Dividends reinvested
      783,991         566,434  
Cost of shares redeemed
      (4,542,778 )       (5,114,726 )
                     
Total Class II
      1,547,927         42,909,803  
                     
Change in net assets from capital transactions
    $ (7,363,620 )     $ 210,767,740  
                     
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
 
8 Semiannual Report 2010

 

 
 
                     
      NVIT Real Estate Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      1,145,203         3,667,017  
Issued in-kind (Note 8)
      –         27,822,844  
Reinvested
      369,197         314,341  
Redeemed
      (2,722,899 )       (4,880,988 )
                     
Total Class I Shares
      (1,208,499 )       26,923,214  
                     
Class II Shares
                   
Issued
      656,236         1,307,790  
Issued in-kind (Note 8)
      –         6,430,374  
Reinvested
      95,376         79,818  
Redeemed
      (597,123 )       (837,334 )
                     
Total Class II Shares
      154,489         6,980,648  
                     
Total change in shares
      (1,054,010 )       33,903,862  
                     
 
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Real Estate Fund
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data          
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 7 .30       0 .09       0 .39       0 .48       (0 .06)       (0 .05)       –          (0 .11)     $ 7 .67       6 .55%     $ 202,233,272         0 .97%       2 .29%       0 .97%       11 .56%    
Year Ended December 31, 2009 (e)
  $ 5 .71       0 .13       1 .59       1 .72       (0 .11)       (0 .02)       –          (0 .13)     $ 7 .30       30 .84%     $ 201,455,813         0 .97%       1 .99%       0 .97%       31 .82%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .12       (4 .19)       (4 .07)       (0 .12)       –          (0 .10)       (0 .22)     $ 5 .71       (40 .88%)     $ 3,776,313         0 .89%       2 .20%       1 .33%       19 .78%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 7 .28       0 .08       0 .38       0 .46       (0 .05)       (0 .05)       –          (0 .10)     $ 7 .64       6 .30%     $ 56,926,227         1 .22%       2 .04%       1 .22%       11 .56%    
Year Ended December 31, 2009 (e)
  $ 5 .69       0 .12       1 .59       1 .71       (0 .10)       (0 .02)       –          (0 .12)     $ 7 .28       30 .52%     $ 53,106,087         1 .22%       1 .82%       1 .22%       31 .82%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .12       (4 .22)       (4 .10)       (0 .11)       –          (0 .10)       (0 .21)     $ 5 .69       (41 .07%)     $ 1,799,208         1 .24%       2 .62%       1 .52%       19 .78%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Real Estate Fund (formerly, Van Kampen NVIT Real Estate Fund) (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Health Care Providers & Services
  $ 3,262,883     $ —     $ —     $ 3,262,883      
 
 
Hotels, Restaurants & Leisure
    9,134,408       —       —       9,134,408      
 
 
Real Estate Investment Trusts (REITs)
    228,178,777       —       5,362,849       233,541,626      
 
 
Real Estate Management & Development
    8,943,816       —       —       8,943,816      
 
 
Total Common Stocks
    249,519,884       —       5,362,849       254,882,733      
 
 
Mutual Fund
    5,328,283       —       —       5,328,283      
 
 
Total Assets
  $ 254,848,167     $ —     $ 5,362,849     $ 260,211,016      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
 
 
12 Semiannual Report 2010

 

 
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                 
        Common
 		   
        Stock    
 
    Balance as of 12/31/09   $ 5,500,404      
 
 
    Accrued Accretion/(Amortization)     —      
 
 
    Change in Unrealized Appreciation/(Depreciation)     (471,068 )    
 
 
    Net Purchases/(Sales)     333,513      
 
 
    Transfers In/(Out) of Level 3     —      
 
 
    Balance as of 06/30/2010   $ 5,362,849      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Restricted Securities
 
At June 30, 2010, the Fund owned restricted private placement instruments. These investments are valued at fair value as determined in accordance with procedures approved by the Board of Trustees. The acquisition dates of these investments, their costs, and their values at June 30, 2010 were as follows:
 
                                             
    Number
 		  Acquisition
 		          % of
 		   
    of Shares   Date   Cost   Market Value   Net Assets    
 
BRCP REIT I, LLC
    1,255,145       8/14/2009     $ 470,409     $ 439,301       0.17%      
 
 
BRCP REIT II, LLC
    2,048,357       8/14/2009       1,229,014       819,343       0.32%      
 
 
BRCP REIT II, LLC
    333,513       1/27/2010       333,513       133,405       0.05%      
 
 
Cabot Industrial Value Fund II, LP
    5,040       8/14/2009       2,394,000       1,864,800       0.72%      
 
 
Keystone Industrial Fund LP
    2,619,000       8/14/2009       2,146,491       2,042,820       0.79%      
 
 
Keystone Industrial Fund LP
    81,000       11/13/2009       80,407       63,180       0.02%      
 
 
Total
                  $ 6,653,834     $ 5,362,849       2.07%      
 
 
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(e)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(f)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(g)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. NFA is a wholly owned subsidiary
 
 
 
14 Semiannual Report 2010

 

 
 
of Nationwide Financial Services, Inc. (“NFS”), a holding company which is a direct wholly owned subsidiary of Nationwide Corporation. Beginning May 1, 2010, NFA has selected Morgan Stanley Investment Management, Inc. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser. Prior to May 1, 2010, Van Kampen Asset Management was the subadviser for the Fund.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.70%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $593,331 for the six months ended June 30, 2010.
 
Until April 30, 2010, the Trust and NFA had entered into a written Expense Limitation Agreement, which limited the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.85% for all share classes.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 14,613     $ —     $ —     $ 14,613      
 
 
(a) For the period March 28, 2008 (commencement of operations) through December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $197,777 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $530.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of
 
 
 
16 Semiannual Report 2010

 

 
 
NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $29,482,875 and sales of $33,066,807 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Risks Associated with REITs and Real Estate Investments. Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Other
 
During the year-ended December 31, 2009, the Fund issued shares of beneficial interest in exchange for securities tendered to the Fund by the purchaser of such shares. The Fund issued 34,253,218 shares of beneficial interest in exchange for securities with a market value of $212,841,091 that were tendered by the purchaser as in-kind consideration for the purchase of shares of beneficial interest of the Fund on August 14, 2009.
 
9. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 223,094,259     $ 40,736,000     $ (3,619,243)     $ 37,116,757      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Real Estate Fund
 
After noting that the Board was scheduled to consider the approval of a new sub-advisory agreement with Morgan Stanley Investment Management Inc. (“MSIM”) in connection with the sale of Morgan Stanley’s Van Kampen Asset Management (“Van Kampen”) business and portions of MSIM’s related businesses to Invesco Ltd. (the “Invesco Transaction”) later in the meeting, the Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Van Kampen, the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the second quintile of its Peer Group and outperformed its benchmark, the NAREIT Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration Van Kampen’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of Van Kampen.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class II shares were in the second quintile of its Peer Group. The Trustees then noted that the Fund’s total expenses for Class II shares were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreement
 
At the March 10, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved a new sub-advisory agreement with MSIM as sub-adviser to the Fund in connection with the Invesco Transaction. The Trustees were provided with a detailed memorandum explaining the effect of the Invesco Transaction on the Fund’s current portfolio management team. In particular, it was noted that, although the members of the Fund’s portfolio management team were dual employees of Van Kampen and MSIM prior to the Invesco Transaction, they were not included in the sale to Invesco Ltd. and, as such, they would no longer be employed by Van Kampen, but would remain employees of MSIM. NFA recommended that the Board approve a new sub-advisory agreement with MSIM in order to ensure the continued provision of sub-advisory services to the Fund by the same portfolio management team. The Trustees noted that the management team was expected to continue using the same strategies and criteria it had used in the past when managing assets. In considering whether to approve the new sub-advisory
 
 
 
20 Semiannual Report 2010

 

 
 
agreement with MSIM, the Board also took into account the materials, including investment performance and expense data, which had been presented to the Board as part of its annual contract review process.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are substantially similar in all material respects as the terms of the sub-advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by MSIM were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

NVIT Multi-Manager International Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
11
   
Statement of Assets and Liabilities
       
13
   
Statement of Operations
       
14
   
Statements of Changes in Net Assets
       
16
   
Financial Highlights
       
17
   
Notes to Financial Statements
       
26
   
Supplemental Information
       
28
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-IG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager International Growth Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
International Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       913.60       5.03       1.06  
      Hypothetical b     1,000.00       1,019.54       5.31       1.06  
 
 
Class II Shares
    Actual       1,000.00       911.80       6.21       1.31  
      Hypothetical b     1,000.00       1,018.30       6.56       1.31  
 
 
Class III Shares
    Actual       1,000.00       912.40       5.22       1.10  
      Hypothetical b     1,000.00       1,019.34       5.51       1.10  
 
 
Class VI Shares
    Actual       1,000.00       911.60       6.40       1.35  
      Hypothetical b     1,000.00       1,018.10       6.76       1.35  
 
 
Class Y Shares
    Actual       1,000.00       912.80       4.51       0.95  
      Hypothetical b     1,000.00       1,020.08       4.76       0.95  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager International Growth Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    94 .8%
Mutual Fund
    4 .7%
Other assets in excess of liabilities
    0 .5%
         
      100 .0%
 
         
Top Industries †    
 
Pharmaceuticals
    8 .6%
Oil, Gas & Consumable Fuels
    7 .2%
Commercial Banks
    5 .8%
Media
    4 .8%
Wireless Telecommunication Services
    4 .2%
Food Products
    4 .0%
Electronic Equipment, Instruments & Components
    3 .9%
Machinery
    3 .9%
Tobacco
    2 .8%
Semiconductors & Semiconductor Equipment
    2 .8%
Other Industries
    52 .0%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    4 .8%
Teva Pharmaceutical Industries Ltd. 
    1 .9%
Roche Holding AG
    1 .9%
Nestle SA
    1 .7%
Imperial Tobacco Group PLC
    1 .6%
America Movil SAB de CV
    1 .5%
Anheuser-Busch InBev NV
    1 .5%
Shire PLC
    1 .5%
Reckitt Benckiser Group PLC
    1 .5%
Hyundai Mobis
    1 .4%
Other Holdings
    80 .7%
         
      100 .0%
         
Top Countries †    
 
United Kingdom
    17 .1%
Japan
    8 .6%
Switzerland
    7 .5%
Germany
    6 .7%
Canada
    6 .6%
Australia
    5 .1%
France
    5 .1%
United States
    4 .8%
Netherlands
    4 .3%
South Korea
    3 .1%
Other Countries
    31 .1%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Growth Fund
 
                 
                 
Common Stocks 94.8%
                 
      Shares       Market
Value 		 
 
 
AUSTRALIA 5.1%
Beverages 0.3%
Coca-Cola Amatil Ltd.
    140,600     $ 1,407,803  
                 
Biotechnology 0.7%
CSL Ltd.
    137,833       3,763,315  
                 
Containers & Packaging 0.4%
Amcor Ltd.
    365,900       1,950,099  
                 
Food & Staples Retailing 0.5%
Woolworths Ltd.
    126,097       2,854,204  
                 
Health Care Equipment & Supplies 1.3%
Cochlear Ltd.
    107,946       6,723,818  
                 
Insurance 0.6%
QBE Insurance Group Ltd.
    209,577       3,180,136  
                 
Metals & Mining 1.3%
BHP Billiton Ltd.
    222,221       6,913,197  
                 
              26,792,572  
                 
 
 
AUSTRIA 0.2%
Machinery 0.2%
Andritz AG
    16,500       920,378  
                 
 
 
BELGIUM 1.7%
Beverages 1.5%
Anheuser-Busch InBev NV
    167,965       8,075,972  
                 
Electrical Equipment 0.2%
Bekaert SA
    6,800       1,133,668  
                 
              9,209,640  
                 
 
 
BERMUDA 0.2%
Oil, Gas & Consumable Fuels 0.2%
Frontline Ltd.
    41,300       1,178,702  
                 
 
 
BRAZIL 1.7%
Commercial Banks 0.8%
Banco Bradesco SA ADR-BR
    267,524       4,242,931  
                 
Oil, Gas & Consumable Fuels 0.7%
Petroleo Brasileiro SA — Preference Shares ADR-BR
    135,359       4,033,698  
                 
Paper & Forest Products 0.2%
Duratex SA
    97,300       879,743  
                 
              9,156,372  
                 
 
 
CANADA 6.6%
Aerospace & Defense 0.6%
Bombardier, Inc., Class B
    646,479       2,939,231  
                 
Insurance 1.0%
Fairfax Financial Holdings Ltd.
    9,739       3,566,804  
Intact Financial Corp.
    34,900       1,471,993  
                 
              5,038,797  
                 
Media 0.2%
Imax Corp.*
    79,900       1,166,540  
                 
Metals & Mining 0.5%
Red Back Mining, Inc.*
    81,900       2,070,292  
Western Coal Corp.*
    200,100       781,941  
                 
              2,852,233  
                 
Oil, Gas & Consumable Fuels 3.4%
Canadian Natural Resources Ltd.
    108,033       3,585,370  
Cenovus Energy, Inc.
    136,692       3,518,257  
EnCana Corp.
    102,129       3,092,987  
Pacific Rubiales Energy Corp.*
    59,700       1,338,070  
Suncor Energy, Inc.
    126,039       3,709,362  
Talisman Energy, Inc.
    195,130       2,951,100  
                 
              18,195,146  
                 
Road & Rail 0.5%
Canadian National Railway Co.
    50,278       2,881,463  
                 
Textiles, Apparel & Luxury Goods 0.4%
Gildan Activewear, Inc.*
    53,800       1,541,370  
Lululemon Athletica, Inc.*
    10,600       394,532  
                 
              1,935,902  
                 
              35,009,312  
                 
 
 
CAYMAN ISLANDS 0.1%
Personal Products 0.1%
Herbalife Ltd.
    16,500       759,825  
                 
 
 
CHINA 1.4%
Commercial Banks 1.0%
Industrial & Commercial Bank of China, H Shares
    7,630,000       5,545,902  
                 
Food Products 0.2%
China Yurun Food Group Ltd.
    259,000       814,476  
                 
Real Estate Management & Development 0.1%
Agile Property Holdings Ltd. (a)
    516,000       527,792  
                 
Textiles, Apparel & Luxury Goods 0.1%
Anta Sports Products Ltd.
    313,000       563,463  
                 
              7,451,633  
                 
 
 
DENMARK 2.7%
Chemicals 0.2%
Novozymes AS, Class B (a)
    11,400       1,216,437  
                 
Construction & Engineering 0.6%
FLSmidth & Co. AS
    44,557       2,875,492  
                 
Food Products 0.5%
Danisco AS
    39,200       2,637,854  
                 
Health Care Equipment & Supplies 0.2%
Coloplast AS, Class B
    12,200       1,210,963  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
DENMARK (continued)
                 
Pharmaceuticals 1.2%
Novo Nordisk AS, Class B
    80,973     $ 6,542,031  
                 
              14,482,777  
                 
 
 
FINLAND 0.5%
Machinery 0.5%
Kone OYJ, Class B
    22,000       875,937  
Metso OYJ (a)
    52,900       1,695,262  
                 
              2,571,199  
                 
 
 
FRANCE 5.1%
Aerospace & Defense 0.2%
Safran SA
    36,000       1,004,230  
                 
Commercial Banks 0.9%
BNP Paribas
    86,532       4,655,490  
                 
Energy Equipment & Services 0.0% †
Technip SA
    1,800       103,241  
                 
Food Products 0.7%
Dannone SA
    75,602       4,053,038  
                 
Hotels, Restaurants & Leisure 0.3%
Sodexo
    27,000       1,498,416  
                 
Insurance 0.5%
AXA SA
    162,505       2,482,604  
                 
Machinery 0.4%
Vallourec SA
    11,700       2,017,224  
                 
Media 1.1%
Eutelsat Communications (a)
    134,795       4,512,616  
Publicis Groupe SA
    31,100       1,240,572  
                 
              5,753,188  
                 
Oil, Gas & Consumable Fuels 0.9%
Total SA
    102,830       4,590,209  
                 
Professional Services 0.1%
Bureau Veritas SA
    10,900       590,354  
                 
              26,747,994  
                 
 
 
GERMANY 6.6%
Automobiles 1.3%
Bayerische Motoren Werke AG
    140,332       6,816,846  
                 
Chemicals 0.4%
Lanxess AG
    56,400       2,373,957  
                 
Health Care Providers & Services 0.8%
Fresenius Medical Care AG & Co. KGaA (a)
    77,587       4,186,172  
                 
Pharmaceuticals 1.1%
Bayer AG
    105,840       5,914,489  
                 
Semiconductors & Semiconductor Equipment 0.3%
Infineon Technologies AG*
    269,364       1,561,613  
                 
Software 0.6%
SAP AG
    69,829       3,105,102  
                 
Textiles, Apparel & Luxury Goods 2.1%
Adidas AG
    131,935       6,387,620  
Puma AG Rudolf Dassler Sport
    17,722       4,710,147  
                 
              11,097,767  
                 
              35,055,946  
                 
 
 
HONG KONG 2.2%
Biotechnology 0.1%
Sino Biopharmaceutical
    1,442,000       561,149  
                 
Distributors 0.5%
Li & Fung Ltd.
    650,000       2,908,085  
                 
Industrial Conglomerates 0.9%
Hutchison Whampoa Ltd.
    793,000       4,880,177  
                 
Personal Products 0.1%
Hengan International Group Co., Ltd
    42,000       340,092  
                 
Specialty Retail 0.5%
Esprit Holdings Ltd.
    500,603       2,688,920  
                 
Trading Companies & Distributors 0.1%
Noble Group Ltd.
    417,727       504,900  
                 
              11,883,323  
                 
 
 
INDIA 2.0%
Automobiles 0.1%
Bajaj Auto Ltd.
    10,700       569,423  
                 
Commercial Banks 0.1%
Yes Bank Ltd.
    125,600       719,906  
                 
Construction & Engineering 0.1%
IRB Infrastructure Developers Ltd.
    96,400       548,441  
                 
Consumer Finance 0.1%
Shriram Transport Finance Co. Ltd.
    29,211       359,982  
                 
Electrical Equipment 0.5%
Bharat Heavy Electricals, Ltd.
    49,261       2,595,397  
                 
Information Technology Services 1.1%
Infosys Technologies Ltd. ADR-IN
    96,610       5,787,905  
                 
              10,581,054  
                 
 
 
INDONESIA 0.3%
Food Products 0.1%
Indofoods Sukses Makmur Tbk PT
    904,500       409,720  
                 
Machinery 0.2%
United Tractors Tbk PT (a)
    450,000       922,341  
                 
              1,332,061  
                 
 
 
IRELAND 1.5%
Pharmaceuticals 1.5%
Shire PLC
    391,392       8,029,111  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
ISRAEL 2.1%
Pharmaceuticals 1.9%
Teva Pharmaceutical Industries Ltd. ADR-IL
    200,031     $ 10,399,612  
                 
Semiconductors & Semiconductor Equipment 0.2%
Mellanox Technologies Ltd.*
    42,048       920,851  
                 
              11,320,463  
                 
 
 
ITALY 1.3%
Aerospace & Defense 0.6%
Finmeccanica SpA
    323,224       3,350,687  
                 
Commercial Banks 0.7%
UniCredit SpA
    1,663,950       3,680,718  
                 
              7,031,405  
                 
 
 
JAPAN 8.6%
Auto Components 0.8%
Denso Corp.
    125,900       3,479,738  
NGK Spark Plug Co., Ltd.
    50,000       620,740  
                 
              4,100,478  
                 
Automobiles 0.9%
Fuji Heavy Industries Ltd.*
    208,000       1,114,273  
Toyota Motor Corp.
    114,900       3,947,809  
                 
              5,062,082  
                 
Chemicals 0.4%
Showa Denko KK
    1,051,000       1,898,165  
                 
Consumer Finance 0.2%
ORIX Corp.
    11,700       847,604  
                 
Electrical Equipment 1.3%
Nidec Corp.
    83,700       7,007,127  
                 
Electronic Equipment, Instruments & Components 2.0%
HOYA Corp.
    168,700       3,589,544  
Keyence Corp.
    18,140       4,194,737  
Omron Corp.
    136,800       2,982,160  
                 
              10,766,441  
                 
Health Care Equipment & Supplies 0.1%
Sysmex Corp.
    6,100       346,443  
                 
Machinery 2.0%
Fanuc Ltd.
    42,900       4,844,378  
Hino Motors Ltd.
    156,000       769,168  
Komatsu Ltd. (a)
    152,800       2,751,337  
Sumitomo Heavy Industries Ltd.
    408,000       2,393,957  
                 
              10,758,840  
                 
Marine 0.4%
Kawasaki Kisen Kaisha Ltd.*
    513,000       2,086,027  
                 
Media 0.2%
Dentsu, Inc.
    43,100       1,138,291  
                 
Semiconductors & Semiconductor Equipment 0.3%
Disco Corp.
    24,900       1,575,274  
                 
              45,586,772  
                 
 
 
LUXEMBOURG 0.2%
Specialty Retail 0.1%
L’Occitane International SA*
    249,900       544,928  
                 
Wireless Telecommunication Services 0.1%
Millicom International Cellular SA
    8,400       680,988  
                 
              1,225,916  
                 
 
 
MEXICO 2.4%
Beverages 0.1%
Fomento Economico Mexicano SAB de CV ADR-MX
    8,096       349,342  
                 
Commercial Banks 0.1%
Grupo Financiero Banorte SAB de CV, Class O
    182,600       691,824  
                 
Media 0.7%
Grupo Televisa SA ADR-MX
    206,994       3,603,766  
                 
Wireless Telecommunication Services 1.5%
America Movil SAB de CV ADR-MX, Series L
    170,328       8,090,580  
                 
              12,735,512  
                 
 
 
NETHERLANDS 4.3%
Air Freight & Logistics 0.9%
TNT NV
    185,128       4,662,839  
                 
Diversified Telecommunication Services 0.8%
Koninklijke (Royal) KPN NV
    323,099       4,118,386  
                 
Food & Staples Retailing 0.9%
Koninklijke Ahold NV (a)
    382,645       4,733,275  
                 
Food Products 0.8%
Unilever NV CVA
    154,162       4,210,043  
                 
Life Sciences Tools & Services 0.1%
QIAGEN NV*
    25,800       501,937  
                 
Professional Services 0.1%
Randstad Holding NV*
    16,322       641,376  
                 
Transportation Infrastructure 0.2%
Koninklijke Vopak NV
    30,400       1,114,029  
                 
Wireless Telecommunication Services 0.5%
VimpelCom Ltd. ADR-NL*
    159,242       2,576,536  
                 
              22,558,421  
                 
 
 
NORWAY 0.8%
Energy Equipment & Services 0.3%
Petroleum Geo-Services ASA*
    204,797       1,707,059  
                 
Insurance 0.3%
Storebrand ASA* (a)
    308,600       1,586,639  
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
NORWAY (continued)
                 
Media 0.2%
Schibsted ASA
    41,400     $ 793,920  
                 
              4,087,618  
                 
 
 
PHILIPPINES 0.9%
Wireless Telecommunication Services 0.9%
Philippine Long Distance Telephone Co.
    95,420       4,879,272  
                 
 
 
RUSSIA 0.8%
Oil, Gas & Consumable Fuels 0.8%
Gazprom OAO ADR-RU
    218,010       4,104,756  
                 
 
 
SINGAPORE 2.8%
Commercial Banks 1.3%
United Overseas Bank Ltd.
    514,000       7,150,701  
                 
Diversified Financial Services 0.0% †
K-Green Trust*
    192,000       144,072  
                 
Industrial Conglomerates 1.1%
Keppel Corp. Ltd.
    973,000       5,874,546  
                 
Marine 0.3%
Neptune Orient Lines Ltd.*
    951,000       1,343,240  
                 
Real Estate Management & Development 0.1%
Yanlord Land Group Ltd.
    412,000       504,462  
                 
              15,017,021  
                 
 
 
SOUTH AFRICA 0.2%
Pharmaceuticals 0.1%
Aspen Pharmacare Holdings Ltd.*
    39,900       394,008  
                 
Specialty Retail 0.1%
Truworths International Ltd.
    80,400       559,612  
                 
              953,620  
                 
 
 
SOUTH KOREA 3.1%
Auto Components 1.4%
Hyundai Mobis
    45,384       7,612,009  
                 
Automobiles 0.2%
Kia Motors Corp.
    32,800       869,080  
                 
Containers & Packaging 0.1%
Lock & Lock Co. Ltd.
    19,600       598,354  
                 
Electronic Equipment, Instruments & Components 0.8%
Samsung Electro-Mechanics Co. Ltd.
    19,200       2,400,955  
Samsung SDI Co. Ltd. (a)
    11,400       1,595,418  
                 
              3,996,373  
                 
Internet Software & Services 0.6%
NHN Corp.*
    21,034       3,128,370  
                 
              16,204,186  
                 
 
 
SPAIN 0.6%
Diversified Telecommunication Services 0.4%
Telefonica SA
    110,815       2,052,814  
                 
Information Technology Services 0.2%
Amadeus IT Holding SA, Class A*
    54,288       863,019  
                 
              2,915,833  
                 
 
 
SWEDEN 0.6%
Media 0.3%
Modern Times Group AB, Class B
    22,800       1,248,150  
                 
Metals & Mining 0.1%
SSAB AB, Class A
    43,500       584,031  
                 
Tobacco 0.2%
Swedish Match AB
    51,200       1,118,839  
                 
              2,951,020  
                 
 
 
SWITZERLAND 7.5%
Capital Markets 0.5%
Julius Baer Group Ltd.
    92,919       2,649,361  
                 
Chemicals 1.6%
Clariant AG REG*
    165,800       2,099,427  
Syngenta AG REG
    28,293       6,536,138  
                 
              8,635,565  
                 
Food Products 1.7%
Nestle SA REG
    181,938       8,772,838  
                 
Health Care Equipment & Supplies 0.1%
Sonova Holding AG REG
    2,200       269,979  
                 
Machinery 0.2%
Sulzer AG REG
    12,300       1,147,279  
                 
Media 0.8%
Informa PLC
    810,396       4,281,604  
                 
Pharmaceuticals 2.6%
Novartis AG REG
    87,680       4,249,247  
Roche Holding AG
    71,096       9,785,775  
                 
              14,035,022  
                 
              39,791,648  
                 
 
 
TAIWAN 2.9%
Airlines 0.2%
Eva Airways Corp.*
    1,954,000       1,146,252  
                 
Electronic Equipment, Instruments & Components 1.1%
Hon Hai Precision Industry Co., Ltd.*
    1,001,000       3,508,677  
Nan Ya Printed Circuit Board Corp.
    243,000       984,419  
Unimicron Technology Corp.
    817,000       1,189,221  
Yageo Corp.
    908,000       366,430  
                 
              6,048,747  
                 
Semiconductors & Semiconductor Equipment 1.6%
MediaTek, Inc. (a)
    200,000       2,791,556  
Taiwan Semiconductor Manufacturing Co., Ltd.
    2,937,629       5,490,557  
                 
              8,282,113  
                 
              15,477,112  
                 
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
THAILAND 0.1%
Chemicals 0.1%
Indorama Ventures PCL
    450,400     $ 305,922  
                 
 
 
TURKEY 0.7%
Commercial Banks 0.7%
Akbank TAS
    773,769       3,706,303  
                 
 
 
UNITED KINGDOM 17.0%
Capital Markets 0.1%
Schroders PLC (a)
    38,200       687,520  
                 
Commercial Services & Supplies 0.7%
Aggreko PLC
    90,800       1,906,147  
G4S PLC
    121,900       483,303  
Serco Group PLC (a)
    162,800       1,421,731  
                 
              3,811,181  
                 
Containers & Packaging 0.2%
Rexam PLC
    242,600       1,091,350  
                 
Food & Staples Retailing 1.1%
Tesco PLC
    1,040,852       5,871,877  
                 
Health Care Equipment & Supplies 0.4%
Smith & Nephew PLC
    212,601       2,008,558  
                 
Hotels, Restaurants & Leisure 1.7%
Compass Group PLC
    913,726       6,951,157  
Intercontinental Hotels Group PLC (a)
    129,400       2,039,359  
                 
              8,990,516  
                 
Household Products 1.5%
Reckitt Benckiser Group PLC
    167,865       7,808,132  
                 
Independent Power Producers & Energy Traders 1.0%
International Power PLC
    1,216,658       5,434,786  
                 
Insurance 0.1%
Admiral Group PLC
    36,900       772,771  
                 
Machinery 0.4%
Weir Group plc (The)
    132,700       2,038,633  
                 
Media 1.4%
Reed Elsevier PLC
    496,313       3,680,060  
WPP PLC
    388,451       3,659,398  
                 
              7,339,458  
                 
Multiline Retail 0.7%
Next PLC
    120,433       3,590,650  
                 
Multi-Utilities 1.1%
Centrica PLC (a)
    1,337,889       5,904,133  
                 
Oil, Gas & Consumable Fuels 1.2%
BG Group PLC
    325,699       4,844,069  
Cairn Energy PLC*
    203,300       1,248,956  
                 
              6,093,025  
                 
Professional Services 0.6%
Capita Group PLC (The)
    210,052       2,314,192  
Michael Page International PLC (a)
    166,900       923,981  
                 
              3,238,173  
                 
Semiconductors & Semiconductor Equipment 0.5%
ARM Holdings PLC
    603,500       2,497,817  
                 
Specialty Retail 0.4%
Kingfisher PLC
    676,488       2,119,142  
                 
Textiles, Apparel & Luxury Goods 0.2%
Burberry Group PLC (a)
    96,900       1,094,351  
                 
Tobacco 2.6%
British American Tobacco PLC
    168,449       5,345,866  
Imperial Tobacco Group PLC
    304,582       8,510,230  
                 
              13,856,096  
                 
Wireless Telecommunication Services 1.1%
Vodafone Group PLC
    2,918,152       6,012,830  
                 
              90,260,999  
                 
         
Total Common Stocks (cost $498,216,630)
    502,275,698  
         
                 
                 
Mutual Fund 4.7%
                 
                 
Money Market Fund 4.7%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    25,117,528       25,117,528  
                 
         
Total Mutual Fund (cost $25,117,528)
    25,117,528  
         
         
Total Investments (cost $523,334,158) (c) — 99.5%
    527,393,226  
         
Other assets in excess of liabilities — 0.5%
    2,523,703  
         
         
NET ASSETS — 100.0%
  $ 529,916,929  
         
 
* Denotes a non-income producing security.
 
(a) Fair Valued Security.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
AS Stock Corporation
 
ASA Stock Corporation
 
BR Brazil
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Growth Fund (Continued)
 
CVA Dutch Certificate
 
IL Israel
 
IN India
 
KGaA Limited Partnership with shares
 
KK Joint Stock Company
 
Ltd. Limited
 
MX Mexico
 
NL Netherlands
 
NV Public Traded Company
 
OYJ Public Traded Company
 
PCL Public Company Limited
 
PLC Public Limited Company
 
PT Limited Liability Company
 
REG Registered Shares
 
RU Russia
 
SA Stock Company
 
SAB de CV Public Traded Company
 
SpA Limited Share Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
 
           
           
      NVIT Multi-Manager International
 		 
    Growth Fund  
       
Assets:
         
Investments, at value (cost $523,334,158)
    $ 527,393,226  
Foreign currencies, at value (cost $1,404,536)
      1,395,852  
Dividends receivable
      687,609  
Receivable for investments sold
      3,658,731  
Receivable for capital shares issued
      590,715  
Reclaims receivable
      472,989  
Prepaid expenses and other assets
      5,432  
           
Total Assets
      534,204,554  
           
Liabilities:
         
Payable for investments purchased
      3,297,434  
Payable for capital shares redeemed
      173,399  
Cash overdraft (Note 2)
      271,424  
Accrued expenses and other payables:
         
Investment advisory fees
      377,984  
Fund administration fees
      18,448  
Distribution fees
      44,043  
Administrative servicing fees
      41,968  
Accounting and transfer agent fees
      22,542  
Trustee fees
      434  
Deferred capital gain country tax
      3,624  
Custodian fees
      3,080  
Compliance program costs (Note 3)
      3,600  
Professional fees
      20,497  
Other
      9,148  
           
Total Liabilities
      4,287,625  
           
Net Assets
    $ 529,916,929  
           
Represented by:
         
Capital
    $ 569,604,579  
Accumulated undistributed net investment income
      3,118,365  
Accumulated net realized losses from investment and foreign currency transactions
      (46,865,375 )
Net unrealized appreciation/(depreciation) from investments†
      4,055,444  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      3,916  
           
Net Assets
    $ 529,916,929  
           
Net Assets:
         
Class I Shares
    $ 18,217  
Class II Shares
      7,966  
Class III Shares
      125,523,009  
Class VI Shares
      207,794,773  
Class Y Shares
      196,572,964  
           
Total
    $ 529,916,929  
           
 
†  Net of $3,624 of deferred capital gain country tax.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Assets and Liabilities (Continued)
 
           
           
      NVIT Multi-Manager International
 		 
    Growth Fund  
       
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      2,310  
Class II Shares
      1,013  
Class III Shares
      15,950,134  
Class VI Shares
      26,470,701  
Class Y Shares
      24,939,002  
           
Total
      67,363,160  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.89  
Class II Shares
    $ 7.86  
Class III Shares
    $ 7.87  
Class VI Shares
    $ 7.85  
Class Y Shares
    $ 7.88  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
 
           
           
      NVIT Multi-Manager International
 		 
    Growth Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 39  
Dividend income
      8,034,335  
Foreign tax withholding
      (760,415 )
           
Total Income
      7,273,959  
           
EXPENSES:
         
Investment advisory fees
      2,318,179  
Fund administration fees
      103,595  
Distribution fees Class II Shares
      11  
Distribution fees Class VI Shares
      280,915  
Administrative servicing fees Class I Shares
      11  
Administrative servicing fees Class II Shares
      5  
Administrative servicing fees Class III Shares
      104,887  
Administrative servicing fees Class VI Shares
      168,550  
Professional fees
      32,705  
Printing fees
      84,851  
Trustee fees
      9,645  
Custodian fees
      19,220  
Accounting and transfer agent fees
      14,556  
Compliance program costs (Note 3)
      1,132  
Other
      11,984  
           
Total expenses before earnings credits
      3,150,246  
Earnings credit (Note 5)
      (79 )
           
Net Expenses
      3,150,167  
           
NET INVESTMENT INCOME
      4,123,792  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      10,060,829  
Net realized losses from foreign currency transactions (Note 2)
      (380,200 )
           
Net realized gains from investment, forward foreign currency and foreign currency transactions
      9,680,629  
           
Net change in unrealized appreciation/(depreciation) from investments††
      (63,122,066 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      1,048  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (18,151 )
           
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (63,139,169 )
           
Net realized/unrealized losses from investments, forward foreign currency contracts, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (53,458,540 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (49,334,748 )
           
 
 
†† Net of increase in deferred capital gain country tax accrual on unrealized depreciation of $76,747.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager
 		 
      International Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 4,123,792       $ 3,964,769  
Net realized gains/(losses) from investment and foreign currency transactions
      9,680,629         (16,163,806 )
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (63,139,169 )       144,601,858  
                     
Change in net assets resulting from operations
      (49,334,748 )       132,402,821  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (30 )       (63 )
Class II
      (8 )       (56 )
Class III
      (222,291 )       (388,835 )
Class VI
      (230,456 )       (1,676,347 )
Class Y
      (417,444 )       (856,532 )
Return of capital:
                   
Class I
      –         (28 )
Class II
      –         (24 )
Class III
      –         (168,448 )
Class VI
      –         (726,210 )
Class Y
      –         (371,058 )
                     
Change in net assets from shareholder distributions
      (870,229 )       (4,187,601 )
                     
Change in net assets from capital transactions
      (5,412,169 )       197,140,840  
                     
Change in net assets
      (55,617,146 )       325,356,060  
                     
                     
Net Assets:
                   
Beginning of period
      585,534,075         260,178,015  
                     
End of period
    $ 529,916,929       $ 585,534,075  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ 3,118,365       $ (135,198 )
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 9,969       $ 10,881  
Dividends reinvested
      30         91  
Cost of shares redeemed
      (9,011 )       (10 )
                     
Total Class I
      988         10,962  
                     
Class II Shares
                   
Proceeds from shares issued
      –         –  
Dividends reinvested
      8         80  
Cost of shares redeemed
      –         –  
                     
Total Class II
      8         80  
                     
Class III Shares
                   
Proceeds from shares issued
      704,267         137,811,757  
Dividends reinvested
      222,291         557,283  
Cost of shares redeemed
      (15,008,193 )       (16,007,138 )
                     
Total Class III
      (14,081,635 )       122,361,902  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
14 Semiannual Report 2010

 

 
 
                     
      NVIT Multi-Manager
 		 
      International Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
CAPITAL TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Proceeds from shares issued
    $ 4,731,382       $ 28,609,686  
Dividends reinvested
      230,456         2,402,557  
Cost of shares redeemed
      (48,263,090 )       (36,926,485 )
                     
Total Class VI
      (43,301,252 )       (5,914,242 )
                     
Class Y Shares
                   
Proceeds from shares issued
      54,072,286         95,727,472  
Dividends reinvested
      417,444         1,227,590  
Cost of shares redeemed
      (2,520,008 )       (16,272,924 )
                     
Total Class Y
      51,969,722         80,682,138  
                     
Change in net assets from capital transactions
    $ (5,412,169 )     $ 197,140,840  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      1,188         1,268  
Reinvested
      4         13  
Redeemed
      (1,163 )       (1 )
                     
Total Class I Shares
      29         1,280  
                     
Class II Shares
                   
Issued
      –         –  
Reinvested
      1         12  
Redeemed
      –         –  
                     
Total Class II Shares
      1         12  
                     
Class III Shares
                   
Issued
      82,238         18,132,382  
Reinvested
      26,590         70,937  
Redeemed
      (1,774,757 )       (2,016,168 )
                     
Total Class III Shares
      (1,665,929 )       16,187,151  
                     
Class VI Shares
                   
Issued
      534,040         4,232,381  
Reinvested
      27,633         349,502  
Redeemed
      (5,536,404 )       (4,984,545 )
                     
Total Class VI Shares
      (4,974,731 )       (402,662 )
                     
Class Y Shares
                   
Issued
      6,418,391         13,500,898  
Reinvested
      49,874         174,731  
Redeemed
      (303,231 )       (2,117,063 )
                     
Total Class Y Shares
      6,165,034         11,558,566  
                     
Total change in shares
      (475,596 )       27,344,347  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager International Growth Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Return of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .65       0 .07       (0 .82)       (0 .75)       (0 .01)       –          (0 .01)     $ 7 .89       (8 .64%)     $ 18,217         1 .06%       1 .69%       1 .06%       43 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .44       0 .09       2 .21       2 .30       (0 .07)       (0 .02)       (0 .09)     $ 8 .65       36 .51%     $ 19,732         0 .95%       1 .26%       0 .95%       68 .15%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .17       (3 .72)       (3 .55)       (0 .01)       –          (0 .01)     $ 6 .44       (35 .51%)     $ 6,445         0 .96%       2 .51%       1 .22%       66 .42%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .63       0 .06       (0 .82)       (0 .76)       (0 .01)       –          (0 .01)     $ 7 .86       (8 .82%)     $ 7,966         1 .31%       1 .37%       1 .31%       43 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .43       0 .08       2 .20       2 .28       (0 .06)       (0 .02)       (0 .08)     $ 8 .63       36 .34%     $ 8,736         1 .20%       1 .14%       1 .20%       68 .15%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .15       (3 .72)       (3 .57)       –          –          –        $ 6 .43       (35 .70%)     $ 6,433         1 .20%       2 .25%       1 .46%       66 .42%    
                                                                                                                                               
Class III Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .64       0 .07       (0 .83)       (0 .76)       (0 .01)       –          (0 .01)     $ 7 .87       (8 .76%)     $ 125,523,009         1 .10%       1 .58%       1 .10%       43 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .43       0 .04       2 .26       2 .30       (0 .07)       (0 .02)       (0 .09)     $ 8 .64       36 .46%     $ 152,134,438         1 .08%       0 .48%       1 .08%       68 .15%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .09       (3 .65)       (3 .56)       (0 .01)       –          (0 .01)     $ 6 .43       (35 .63%)     $ 9,188,216         1 .11%       1 .44%       1 .14%       66 .42%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .62       0 .05       (0 .81)       (0 .76)       (0 .01)       –          (0 .01)     $ 7 .85       (8 .84%)     $ 207,794,773         1 .35%       1 .32%       1 .35%       43 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .42       0 .07       2 .20       2 .27       (0 .05)       (0 .02)       (0 .07)     $ 8 .62       36 .11%     $ 271,040,423         1 .35%       1 .02%       1 .35%       68 .15%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .07       (3 .65)       (3 .58)       –          –          –        $ 6 .42       (35 .80%)     $ 204,547,667         1 .36%       1 .18%       1 .39%       66 .42%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .65       0 .07       (0 .82)       (0 .75)       (0 .02)       –          (0 .02)     $ 7 .88       (8 .72%)     $ 196,572,964         0 .95%       1 .79%       0 .95%       43 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .43       0 .09       2 .22       2 .31       (0 .07)       (0 .02)       (0 .09)     $ 8 .65       36 .71%     $ 162,330,746         0 .95%       1 .26%       0 .95%       68 .15%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .11       (3 .67)       (3 .56)       (0 .01)       –          (0 .01)     $ 6 .43       (35 .60%)     $ 46,429,254         0 .96%       1 .85%       1 .10%       66 .42%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager International Growth Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                 
Asset Type   Level 1   Level 2     Level 3     Total      
 
Assets:
                               
Common Stocks
                               
Aerospace & Defense
  $2,939,231   $ 4,354,917     $ —     $ 7,294,148      
Air Freight & Logistics
  —     4,662,839       —       4,662,839      
Airlines
  —     1,146,252       —       1,146,252      
Auto Components
  —     11,712,487       —       11,712,487      
Automobiles
  —     13,317,431       —       13,317,431      
Beverages
  349,342     9,483,775       —       9,833,117      
Biotechnology
  —     4,324,464       —       4,324,464      
Capital Markets
  —     3,336,881       —       3,336,881      
Chemicals
  —     14,430,046       —       14,430,046      
Commercial Banks
  4,934,755     25,459,020       —       30,393,775      
Commercial Services & Supplies
  —     3,811,181       —       3,811,181      
Construction & Engineering
  —     3,423,933       —       3,423,933      
Consumer Finance
  —     1,207,586       —       1,207,586      
Containers & Packaging
  —     3,639,803       —       3,639,803      
Distributors
  —     2,908,085       —       2,908,085      
Diversified Financial Services
  —     144,072       —       144,072      
Diversified Telecommunication Services
  —     6,171,200       —       6,171,200      
Electrical Equipment
  —     10,736,192       —       10,736,192      
Electronic Equipment, Instruments & Components
  —     20,811,561       —       20,811,561      
 
 
 
18 Semiannual Report 2010

 

 
 
                                 
Asset Type   Level 1   Level 2     Level 3     Total      
 
Energy Equipment & Services
  $—   $ 1,810,300     $ —     $ 1,810,300      
Food & Staples Retailing
  —     13,459,356       —       13,459,356      
Food Products
  —     20,897,969       —       20,897,969      
Health Care Equipment & Supplies
  —     10,559,761       —       10,559,761      
Health Care Providers & Services
  —     4,186,172       —       4,186,172      
Hotels, Restaurants & Leisure
  —     10,488,932       —       10,488,932      
Household Products
  —     7,808,132       —       7,808,132      
Independent Power Producers & Energy Traders
  —     5,434,786       —       5,434,786      
Industrial Conglomerates
  —     10,754,723       —       10,754,723      
Information Technology Services
  5,787,905     863,019       —       6,650,924      
Insurance
  5,038,797     8,022,150       —       13,060,947      
Internet Software & Services
  —     3,128,370       —       3,128,370      
Life Sciences Tools & Services
  —     501,937       —       501,937      
Machinery
  —     20,375,894       —       20,375,894      
Marine
  —     3,429,267       —       3,429,267      
Media
  4,770,306     20,554,611       —       25,324,917      
Metals & Mining
  2,852,233     7,497,228       —       10,349,461      
Multiline Retail
  —     3,590,650       —       3,590,650      
Multi-Utilities
  —     5,904,133       —       5,904,133      
Oil, Gas & Consumable Fuels
  23,407,546     14,787,990       —       38,195,536      
Paper & Forest Products
  879,743     —       —       879,743      
Personal Products
  759,825     340,092       —       1,099,917      
Pharmaceuticals
  10,399,612     34,914,661       —       45,314,273      
Professional Services
  —     4,469,903       —       4,469,903      
Real Estate Management & Development
  —     1,032,254       —       1,032,254      
Road & Rail
  2,881,463     —       —       2,881,463      
Semiconductors & Semiconductor Equipment
  920,851     13,916,817       —       14,837,668      
Software
  —     3,105,102       —       3,105,102      
Specialty Retail
  —     5,912,602       —       5,912,602      
Textiles, Apparel & Luxury Goods
  1,935,902     12,755,581       —       14,691,483      
Tobacco
  —     14,974,935       —       14,974,935      
Trading Companies & Distributors
  —     504,900       —       504,900      
Transportation Infrastructure
  —     1,114,029       —       1,114,029      
Wireless Telecommunication Services
  11,348,104     10,892,102       —       22,240,206      
 
 
Total Common Stocks
  79,205,615     423,070,083       —       502,275,698      
 
 
Mutual Fund
  25,117,528     —       —       25,117,528      
 
 
Total Assets
  $104,323,143   $ 423,070,083     $ —     $ 527,393,226      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $271,424 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(d)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a).how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
Forward Foreign currency contracts
  $ (14,300 )    
 
 
Total
  $ (14,300 )    
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
Forward Foreign currency contracts
  $ 1,048      
 
 
Total
  $ 1,048      
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
 
 
20 Semiannual Report 2010

 

 
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
         
Subadvisers        
 
Invesco Advisors, Inc. (formerly Invesco Aim Capital Management, Inc.)
       
 
 
American Century Global Investment Management, Inc.
       
 
 
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.85%      
 
 
    $1 billion and more     0.80%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.85%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadvisers. NFA paid the subadvisers $1,295,324 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.96% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
 
 
22 Semiannual Report 2010

 

 
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Year Ended
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 61,278     $ 14,814     $ —     $ 76,092      
 
 
(a) For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
Amounts designated as “—”, are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II, Class III, and Class VI shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $273,453 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,132.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III and Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III and Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III and Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,833.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $12,320.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any
 
 
 
24 Semiannual Report 2010

 

 
 
offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $234,247,571 and sales of $225,382,270 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 529,856,620     $ 32,225,203     $ (34,688,597)     $ (2,463,394)      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 25

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
26 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager International Growth Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., American Century Global Investment Management, Inc. (“American Century”) and Invesco Advisers, Inc. (“Invesco”)) and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the second quintile of its Peer Group and underperformed its benchmark, the MSCI EAFE Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration American Century’s and Invesco’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of American Century and Invesco. The Trustees also noted that the sleeve of the Fund managed by American Century has been on the watch list since the second quarter of 2009.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the third quintile and at the median of its Peer Group, and that the Fund’s actual advisory fee was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class II shares were in the first quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees noted that shareholders of the Fund receive the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 27

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 31

 

 
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NVIT Multi-Manager Large Cap Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
24
   
Supplemental Information
       
27
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-LCG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Large Cap Growth Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Large Cap Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       904.70       4.25       0.90  
      Hypothetical b     1,000.00       1,020.33       4.51       0.90  
 
 
Class II Shares
    Actual       1,000.00       904.60       5.38       1.14  
      Hypothetical b     1,000.00       1,019.14       5.71       1.14  
 
 
Class Y Shares
    Actual       1,000.00       906.00       3.50       0.74  
      Hypothetical b     1,000.00       1,021.12       3.71       0.74  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Large Cap Growth Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    93 .2%
Mutual Fund
    3 .3%
Other assets in excess of liabilities
    3 .5%
         
      100 .0%
         
Top Industries †    
 
Computers & Peripherals
    10 .9%
Software
    6 .7%
Health Care Providers & Services
    5 .5%
Pharmaceuticals
    4 .9%
Machinery
    4 .6%
Oil, Gas & Consumable Fuels
    4 .4%
Communications Equipment
    4 .3%
Aerospace & Defense
    4 .2%
Information Technology Services
    4 .2%
Internet Software & Services
    3 .1%
Other Industries
    47 .2%
         
      100 .0%
         
Top Holdings †    
 
Apple, Inc. 
    5 .7%
Invesco Liquid Assets Portfolio — Institutional Class
    3 .4%
Cisco Systems, Inc. 
    2 .8%
Hewlett-Packard Co. 
    2 .3%
EMC Corp. 
    2 .2%
Express Scripts, Inc. 
    2 .2%
JPMorgan Chase & Co. 
    2 .2%
Visa, Inc., Class A
    2 .1%
American Tower Corp., Class A
    2 .0%
Amazon.com, Inc. 
    1 .8%
Other Holdings
    73 .3%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Large Cap Growth Fund
 
                 
                 
Common Stocks 93.2%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 4.1%
Boeing Co. (The)
    74,610     $ 4,681,777  
Precision Castparts Corp.
    23,109       2,378,378  
Raytheon Co.
    70,320       3,402,785  
Rockwell Collins, Inc.
    79,297       4,213,050  
United Technologies Corp.
    135,093       8,768,887  
                 
              23,444,877  
                 
 
 
Air Freight & Logistics 0.8%
CH Robinson Worldwide, Inc.
    43,000       2,393,380  
FedEx Corp.
    33,155       2,324,497  
                 
              4,717,877  
                 
 
 
Airlines 0.4%
Delta Air Lines, Inc.*
    175,190       2,058,483  
                 
 
 
Automobiles 1.2%
Daimler AG REG*
    77,844       3,935,014  
Ford Motor Co.*
    267,655       2,697,963  
                 
              6,632,977  
                 
 
 
Beverages 1.9%
Coca-Cola Co. (The)
    124,753       6,252,620  
PepsiCo, Inc.
    77,109       4,699,794  
                 
              10,952,414  
                 
 
 
Biotechnology 1.8%
Amgen, Inc.*
    81,501       4,286,952  
Celgene Corp.*
    124,135       6,308,541  
                 
              10,595,493  
                 
 
 
Capital Markets 1.2%
Franklin Resources, Inc.
    30,400       2,620,176  
Goldman Sachs Group, Inc. (The)
    32,850       4,312,220  
                 
              6,932,396  
                 
 
 
Chemicals 0.6%
Ecolab, Inc.
    46,900       2,106,279  
Monsanto Co.
    33,394       1,543,471  
                 
              3,649,750  
                 
 
 
Commercial Banks 0.5%
Itau Unibanco Holding SA ADR-BR
    143,889       2,591,441  
                 
 
 
Communications Equipment 4.2%
Cisco Systems, Inc.*
    744,051       15,855,727  
F5 Networks, Inc.*
    21,130       1,448,884  
Juniper Networks, Inc.*
    82,926       1,892,371  
QUALCOMM, Inc.
    148,700       4,883,308  
                 
              24,080,290  
                 
 
 
Computers & Peripherals 10.6%
Apple, Inc.*
    125,299       31,516,457  
EMC Corp.*
    676,660       12,382,878  
Hewlett-Packard Co.
    292,175       12,645,334  
NetApp, Inc.*
    111,005       4,141,597  
                 
              60,686,266  
                 
 
 
Construction & Engineering 0.3%
Fluor Corp.
    42,200       1,793,500  
                 
 
 
Consumer Finance 0.8%
American Express Co.
    118,650       4,710,405  
                 
 
 
Diversified Consumer Services 0.3%
New Oriental Education & Technology Group ADR-CN*
    20,200       1,882,438  
                 
 
 
Diversified Financial Services 2.5%
IntercontinentalExchange, Inc.*
    20,210       2,284,336  
JPMorgan Chase & Co.
    324,636       11,884,924  
                 
              14,169,260  
                 
 
 
Electrical Equipment 0.4%
Emerson Electric Co.
    57,816       2,525,981  
                 
 
 
Electronic Equipment, Instruments & Components 1.9%
Agilent Technologies, Inc.*
    138,836       3,947,107  
Amphenol Corp., Class A
    53,500       2,101,480  
Corning, Inc.
    301,105       4,862,846  
                 
              10,911,433  
                 
 
 
Energy Equipment & Services 1.6%
Dresser-Rand Group, Inc.*
    79,900       2,520,845  
Schlumberger Ltd.
    120,984       6,695,255  
                 
              9,216,100  
                 
 
 
Food & Staples Retailing 0.7%
Costco Wholesale Corp.
    40,300       2,209,649  
Walgreen Co.
    69,438       1,853,995  
                 
              4,063,644  
                 
 
 
Food Products 1.6%
ConAgra Foods, Inc.
    148,733       3,468,453  
Green Mountain Coffee Roasters, Inc.*
    98,600       2,534,020  
Mead Johnson Nutrition Co.
    64,730       3,244,268  
                 
              9,246,741  
                 
 
 
Health Care Equipment & Supplies 1.7%
Covidien PLC
    164,063       6,592,051  
St. Jude Medical, Inc.*
    82,727       2,985,618  
                 
              9,577,669  
                 
 
 
Health Care Providers & Services 5.3%
Express Scripts, Inc.*
    255,300       12,004,206  
Laboratory Corp of America Holdings*
    47,961       3,613,861  
McKesson Corp.
    57,687       3,874,259  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Large Cap Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Health Care Providers & Services (continued)
                 
Medco Health Solutions, Inc.*
    92,300     $ 5,083,884  
UnitedHealth Group, Inc.
    208,898       5,932,703  
                 
              30,508,913  
                 
 
 
Hotels, Restaurants & Leisure 2.4%
Marriott International, Inc., Class A
    69,280       2,074,243  
McDonald’s Corp.
    85,355       5,622,334  
Starbucks Corp.
    143,436       3,485,495  
Yum! Brands, Inc.
    61,400       2,397,056  
                 
              13,579,128  
                 
 
 
Household Products 2.4%
Colgate-Palmolive Co.
    45,018       3,545,618  
Kimberly-Clark Corp.
    99,486       6,031,836  
Procter & Gamble Co. (The)
    70,402       4,222,712  
                 
              13,800,166  
                 
 
 
Industrial Conglomerates 0.9%
3M Co.
    61,563       4,862,861  
                 
 
 
Information Technology Services 4.0%
Cognizant Technology Solutions Corp., Class A *
    167,400       8,380,044  
Paychex, Inc.
    125,193       3,251,262  
Visa, Inc., Class A
    162,868       11,522,911  
                 
              23,154,217  
                 
 
 
Internet & Catalog Retail 2.7%
Amazon.com, Inc.*
    89,829       9,814,716  
Priceline.com, Inc.*
    33,522       5,917,974  
                 
              15,732,690  
                 
 
 
Internet Software & Services 3.0%
Baidu, Inc. ADR-CN*
    75,401       5,133,300  
Equinix, Inc.*
    34,000       2,761,480  
Google, Inc., Class A*
    21,293       9,474,320  
                 
              17,369,100  
                 
 
 
Machinery 4.5%
Cummins, Inc.
    52,206       3,400,177  
Danaher Corp.
    221,698       8,229,430  
Deere & Co.
    60,100       3,346,368  
Flowserve Corp.
    25,200       2,136,960  
Illinois Tool Works, Inc.
    163,806       6,761,911  
Parker Hannifin Corp.
    34,415       1,908,656  
                 
              25,783,502  
                 
 
 
Media 1.5%
DIRECTV Group, Inc. (The), Class A*
    66,232       2,246,590  
Time Warner, Inc.
    83,562       2,415,777  
Walt Disney Co. (The)
    124,196       3,912,174  
                 
              8,574,541  
                 
Metals & Mining 1.1%
Allegheny Technologies, Inc.
    85,400       3,773,826  
Cliffs Natural Resources Inc.
    58,300       2,749,428  
                 
              6,523,254  
                 
 
 
Multiline Retail 1.6%
Dollar Tree, Inc.*
    1       21  
Kohl’s Corp.*
    62,400       2,964,000  
Target Corp.
    120,566       5,928,230  
                 
              8,892,251  
                 
 
 
Oil, Gas & Consumable Fuels 4.2%
Anadarko Petroleum Corp.
    44,737       1,614,558  
Canadian Natural Resources Ltd.
    99,744       3,314,493  
Denbury Resources, Inc.*
    78,706       1,152,256  
EOG Resources, Inc.
    36,890       3,628,869  
Newfield Exploration Co.*
    38,676       1,889,709  
Noble Energy, Inc.
    50,244       3,031,221  
Occidental Petroleum Corp.
    30,400       2,345,360  
Peabody Energy Corp.
    79,600       3,114,748  
Range Resources Corp.
    53,106       2,132,206  
Southwestern Energy Co.*
    52,667       2,035,053  
                 
              24,258,473  
                 
 
 
Personal Products 0.8%
Estee Lauder Cos., Inc. (The), Class A
    78,057       4,350,117  
                 
 
 
Pharmaceuticals 4.7%
Allergan, Inc.
    92,418       5,384,273  
Johnson & Johnson
    81,497       4,813,213  
Pfizer, Inc.
    332,185       4,736,958  
Shire PLC ADR-IE
    56,100       3,443,418  
Teva Pharmaceutical Industries Ltd. ADR-IL
    171,048       8,892,785  
                 
              27,270,647  
                 
 
 
Road & Rail 1.1%
Union Pacific Corp.
    91,000       6,325,410  
                 
 
 
Semiconductors & Semiconductor Equipment 2.7%
Broadcom Corp., Class A
    147,267       4,855,393  
Intel Corp.
    72,892       1,417,749  
Lam Research Corp.*
    66,600       2,534,796  
Linear Technology Corp.
    68,000       1,891,080  
Marvell Technology Group Ltd.*
    290,272       4,574,687  
                 
              15,273,705  
                 
 
 
Software 6.4%
Adobe Systems, Inc.*
    75,618       1,998,584  
Autodesk, Inc.*
    102,600       2,499,336  
Citrix Systems, Inc.*
    164,168       6,932,815  
Microsoft Corp.
    387,060       8,906,250  
Oracle Corp.
    440,359       9,450,104  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Software (continued)
                 
Salesforce.com, Inc.*
    64,107     $ 5,501,663  
VMware, Inc., Class A*
    27,000       1,689,930  
                 
              36,978,682  
                 
 
 
Specialty Retail 2.4%
Lowe’s Cos., Inc.
    206,930       4,225,511  
O’Reilly Automotive, Inc.*
    57,000       2,710,920  
TJX Cos., Inc.
    62,109       2,605,472  
Urban Outfitters, Inc.*
    121,300       4,171,507  
                 
              13,713,410  
                 
 
 
Textiles, Apparel & Luxury Goods 0.5%
Coach, Inc.
    51,887       1,896,470  
VF Corp.
    15,447       1,099,517  
                 
              2,995,987  
                 
 
 
Wireless Telecommunication Services 1.9%
American Tower Corp., Class A*
    250,945       11,167,053  
                 
         
Total Common Stocks (cost $550,147,788)
    535,553,542  
         
                 
                 
Mutual Fund 3.3%
                 
                 
Money Market Fund 3.3%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    18,972,566       18,972,566  
                 
         
Total Mutual Fund (cost $18,972,566)
    18,972,566  
         
         
Total Investments
(cost $569,120,354) (b) — 96.5%
    554,526,108  
         
         
Other assets in excess of liabilities — 3.5%
    20,195,382  
         
         
NET ASSETS — 100.0%
  $ 574,721,490  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
BR Brazil
 
CN China
 
IE Ireland
 
IL Israel
 
Ltd. Limited
 
PLC Public Limited Company
 
REG Registered Shares
 
SA Stock Company
 
At June 30, 2010, the Fund’s open futures contracts were as follows(Note 2):
 
                             
            Notional Value
 		   
Number of
 		          Covered by
 		  Unrealized
Contracts   Long Contracts   Expiration   Contracts   Depreciation
 
365
 
E-Mini S&P 500
    09/17/10     $ 18,735,450     $ (842,055 )
35
 
E-mini S&P MidCap 400 Futures
    09/17/10       2,485,000       (100,870 )
                             
                $ 21,220,450     $ (942,925 )
                             
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Large Cap
 		 
    Growth Fund  
       
Assets:
         
Investments, at value (cost $569,120,354)
    $ 554,526,108  
Cash
      20,304,797  
Foreign currencies, at value (cost $1,856,626)
      1,856,626  
Interest and dividends receivable
      384,354  
Receivable for investments sold
      2,627,629  
Receivable for capital shares issued
      1,223,855  
Reclaims receivable
      24,599  
Prepaid expenses and other assets
      7,099  
           
Total Assets
      580,955,067  
           
Liabilities:
         
Payable for investments purchased
      4,505,841  
Payable for capital shares redeemed
      311,948  
Payable for variation margin on futures contracts
      942,925  
Accrued expenses and other payables:
         
Investment advisory fees
      322,010  
Fund administration fees
      19,155  
Distribution fees
      36,028  
Administrative servicing fees
      29,100  
Accounting and transfer agent fees
      13,404  
Trustee fees
      48  
Custodian fees
      250  
Compliance program costs (Note 3)
      3,674  
Professional fees
      14,794  
Printing fees
      28,384  
Other
      6,016  
           
Total Liabilities
      6,233,577  
           
Net Assets
    $ 574,721,490  
           
Represented by:
         
Capital
    $ 564,930,995  
Accumulated undistributed net investment income
      956,260  
Accumulated net realized gains from investment, futures and foreign currency transactions
      24,371,358  
Net unrealized appreciation/(depreciation) from investments
      (14,594,246 )
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (942,925 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      48  
           
Net Assets
    $ 574,721,490  
           
Net Assets:
         
Class I Shares
    $ 66,289,478  
Class II Shares
      164,038,307  
Class Y Shares
      344,393,705  
           
Total
    $ 574,721,490  
           
The accompanying notes are an integral part of these financial statements.
 
 
 
 
8 Semiannual Report 2010

 

 
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Large Cap
 		 
    Growth Fund  
       
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      8,500,172  
Class II Shares
      21,064,208  
Class Y Shares
      44,061,126  
           
Total
      73,625,506  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.80  
Class II Shares
    $ 7.79  
Class Y Shares
    $ 7.82  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Large Cap
 		 
    Growth Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 3,256,292  
           
Total Income
      3,256,292  
           
EXPENSES:
         
Investment advisory fees
      1,708,540  
Fund administration fees
      98,027  
Distribution fees Class II Shares
      200,070  
Administrative servicing fees Class I Shares
      28,761  
Administrative servicing fees Class II Shares
      120,043  
Professional fees
      28,229  
Printing fees
      73,816  
Trustee fees
      9,204  
Custodian fees
      15,407  
Accounting and transfer agent fees
      5,605  
Compliance program costs (Note 3)
      1,078  
Other
      11,294  
           
Total expenses before earnings credits
      2,300,074  
Earnings credit (Note 4)
      (42 )
           
Net Expenses
      2,300,032  
           
NET INVESTMENT INCOME
      956,260  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      31,264,589  
Net realized losses from futures transactions (Note 2)
      (77,439 )
Net realized losses from forward and foreign currency transactions (Note 2)
      (19,761 )
           
Net realized gains from investment, futures, forward currency and foreign currency transactions
      31,167,389  
           
Net change in unrealized appreciation/(depreciation) from investments
      (80,524,441 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (933,053 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      48  
           
Net change in unrealized appreciation/(depreciation) from investments
      (81,457,446 )
           
Net realized/unrealized losses from investments and foreign currency transactions
      (50,290,057 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (49,333,797 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager
 		 
      Large Cap Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 956,260       $ 1,962,670  
Net realized gains from investment, futures, forward currency and foreign currency transactions
      31,167,389         10,530,777  
Net change in unrealized appreciation/(depreciation) from investments
      (81,457,446 )       80,000,166  
                     
Change in net assets resulting from operations
      (49,333,797 )       92,493,613  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      –         (67,634 )
Class II
      –         (355,450 )
Class Y
      –         (1,552,233 )
Net realized gains:
                   
Class I
      (156,876 )       –  
Class II
      (1,224,136 )       –  
Class Y
      (2,868,945 )       –  
                     
Change in net assets from shareholder distributions
      (4,249,957 )       (1,975,317 )
                     
Change in net assets from capital transactions
      155,590,566         288,706,241  
                     
Change in net assets
      102,006,812         379,224,537  
                     
                     
Net Assets:
                   
Beginning of period
      472,714,678         93,490,141  
                     
End of period
    $ 574,721,490       $ 472,714,678  
                     
Accumulated undistributed net investment income at end of period
    $ 956,260       $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 5,557,826       $ 26,299,916  
Proceeds from shares issued from mergers (Note 8)
      65,834,700         –  
Dividends reinvested
      156,876         67,634  
Cost of shares redeemed
      (17,926,641 )       (8,787,291 )
                     
Total Class I
      53,622,761         17,580,259  
                     
Class II Shares
                   
Proceeds from shares issued
      244,227         140,947,617  
Proceeds from shares issued from mergers (Note 8)
      41,329,980         –  
Dividends reinvested
      1,224,136         355,450  
Cost of shares redeemed
      (29,724,729 )       (9,955,567 )
                     
Total Class II
      13,073,614         131,347,500  
                     
Class Y Shares
                   
Proceeds from shares issued
      98,747,852         170,636,294  
Dividends reinvested
      2,868,945         1,552,233  
Cost of shares redeemed
      (12,722,606 )       (32,410,045 )
                     
Total Class Y
      88,894,191         139,778,482  
                     
Change in net assets from capital transactions
    $ 155,590,566       $ 288,706,241  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Multi-Manager
 		 
      Large Cap Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      626,877         3,481,702  
Issued in mergers (Note 8)
      7,287,438         –  
Reinvested
      17,258         8,079  
Redeemed
      (1,833,805 )       (1,108,303 )
                     
Total Class I Shares
      6,097,768         2,381,478  
                     
Class II Shares
                   
Issued
      28,179         20,259,194  
Issued in mergers (Note 8)
      4,579,562         –  
Reinvested
      134,817         42,448  
Redeemed
      (2,850,659 )       (1,226,229 )
                     
Total Class II Shares
      1,891,899         19,075,413  
                     
Class Y Shares
                   
Issued
      11,392,295         23,111,911  
Reinvested
      315,269         198,959  
Redeemed
      (455,155 )       (4,249,163 )
                     
Total Class Y Shares
      11,252,409         19,061,707  
                     
Total change in shares
      19,242,076         40,518,598  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Large Cap Growth Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .69       0 .02       (0 .84)       (0 .82)       –          (0 .07)       (0 .07)     $ 7 .80       (9 .53%)     $ 66,289,478         0 .90%       0 .46%       0 .90%       98 .15%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .74       0 .07       1 .93       2 .00       (0 .05)       –          (0 .05)     $ 8 .69       29 .78%     $ 20,865,015         0 .90%       0 .80%       0 .90%       122 .44%    
Period Ended December 31, 2008 (g)
  $ 10 .00       0 .02       (3 .26)       (3 .24)       (0 .02)       –          (0 .02)     $ 6 .74       (32 .41%)     $ 140,989         0 .89%       0 .62%       0 .98%       92 .12%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .68       –          (0 .82)       (0 .82)       –          (0 .07)       (0 .07)     $ 7 .79       (9 .54%)     $ 164,038,307         1 .14%       0 .10%       1 .14%       98 .15%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .74       0 .04       1 .93       1 .97       (0 .03)       –          (0 .03)     $ 8 .68       29 .35%     $ 166,476,068         1 .14%       0 .52%       1 .14%       122 .44%    
Period Ended December 31, 2008 (g)
  $ 10 .00       0 .02       (3 .26)       (3 .24)       (0 .02)       –          (0 .02)     $ 6 .74       (32 .45%)     $ 652,992         1 .12%       0 .44%       1 .24%       92 .12%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .70       0 .02       (0 .83)       (0 .81)       –          (0 .07)       (0 .07)     $ 7 .82       (9 .40%)     $ 344,393,705         0 .74%       0 .48%       0 .74%       98 .15%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .74       0 .06       1 .96       2 .02       (0 .06)       –          (0 .06)     $ 8 .70       30 .07%     $ 285,373,595         0 .75%       0 .84%       0 .75%       122 .44%    
Period Ended December 31, 2008 (g)
  $ 10 .00       0 .03       (3 .26)       (3 .23)       (0 .03)       –          (0 .03)     $ 6 .74       (32 .37%)     $ 92,696,160         0 .75%       0 .72%       0 .86%       92 .12%    
                                                                                                                                               
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  Excludes merger activity.
(g)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Large Cap Growth Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair
 
 
 
14 Semiannual Report 2010

 

 
 
value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
 
 
Common Stocks
  $ 535,553,542     $ —     $ —     $ 535,553,542      
 
 
Mutual Fund
    18,972,566       —       —       18,972,566      
 
 
Total Assets
    554,526,108       —       —       554,526,108      
 
 
Liabilities:
                                   
 
 
Futures Contracts
    (942,925 )     —       —       (942,925 )    
 
 
Total Liabilities
    (942,925 )     —       —       (942,925 )    
 
 
Total
  $ 553,583,183     $ —     $ —     $ 553,583,183      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
(d)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contacts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
 
 
16 Semiannual Report 2010

 

 
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                 
    Statement of Assets & Liabilities Location   Fair Value    
 
Assets:
               
 
 
Futures — Equity contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ —      
 
 
Total
      $ —      
 
 
Liabilities:
               
 
 
Futures — Equity contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ (942,925 )    
 
 
Total
      $ (942,925 )    
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ (77,439 )    
 
 
    Forward foreign currency contracts     4,604      
 
 
    Total   $ (72,835 )    
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (933,053 )    
 
 
    Forward foreign currency contracts     —      
 
 
    Total   $ (933,053 )    
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (“NFS”), a holding company which is a direct wholly owned subsidiary of
 
 
 
18 Semiannual Report 2010

 

 
 
Nationwide Corporation. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
         
Subadvisers        
 
Goldman Sachs Asset Management (a)
       
 
 
Neuberger Berman Management, LLC
       
 
 
Wells Capital Management, Inc.
       
 
 
Winslow Capital Management, Inc. (a)
       
 
 
(a) Winslow Capital Management, Inc. replaced Goldman Sachs Asset Management as a subadviser effective June 25, 2010.
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.65%      
 
 
    $1 billion and more     0.60%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.65%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers $822,307 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.75% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                 
Period Ended
 		  Period Ended
 		  Six Months Ended
 		       
2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
$ 42,785     $ —     $ —     $ 42,785      
 
 
(a) For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
20 Semiannual Report 2010

 

 
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $148,804 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,078.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $626,334,037 and sales of $506,943,138 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Other
 
On April 30, 2010, the Fund acquired all of the net assets of NVIT Health Sciences Fund, NVIT Technology and Communications Fund, and NVIT U.S. Growth Leaders Fund, each a series of the Trust, pursuant to Plans of Reorganization approved by the Trust’s board of Trustees at a meeting held on December 2, 2009, and approved by shareholders of the NVIT Health Sciences Fund, NVIT Technology and Communications Fund, and NVIT U.S. Growth Leaders Fund at a meeting of shareholders held on March 31, 2010. The purpose of the reorganizations was to combine funds managed by NFA that had comparable investment objectives and strategies. The reorganizations were accomplished by tax-free exchanges as follows:
 
  •  4,162,688 shares of the Fund, valued at $37,590,972, for the assets of NVIT Health Sciences Fund, which had a fair value of $37,530,570 and identified costs of $34,693,580 as of April 30, 2010;
 
  •  4,284,851 shares of the Fund, valued at $38,697,076, for the assets of NVIT Technology and Communications Fund, which had a fair value of $37,941,645 and identified costs of $30,294,517 as of April 30, 2010; and
 
  •  3,419,461 shares of the Fund, valued at $30,876,632, for the assets of NVIT U.S. Growth Leaders Fund, which had a fair value of $29,217,508 and identified costs of $24,083,645 as of April 30, 2010.
 
The investment portfolios of NVIT Health Sciences Fund, NVIT Technology and Communications Fund, and NVIT U.S. Growth Leaders Fund with a fair value of $37,530,570, $37,941,645, and $29,217,508, respectively and identified costs of $34,693,580, $30,294,517, and $24,083,645, respectively, were the principal assets acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the reorganizations, the net assets of the Fund were $536,061,026.
 
 
 
22 Semiannual Report 2010

 

 
 
The following pro forma information for the period ended June 30, 2010 is provided as though the reorganizations had been completed on January 1, 2010, the beginning of the annual reporting period of the Fund:
 
  •  Net investment income $904,850;
 
  •  Net gain on investments $(67,041,181); and
 
  •  Net increase in net assets resulting from operations $(51,117,512).
 
Because the Fund’s combined investment portfolio has been managed as a single integrated portfolio since the reorganizations were completed, it is not practicable to separate the amounts of revenue and earnings of NVIT Health Sciences Fund, NVIT Technology and Communications Fund and NVIT U.S. Growth Leaders that have been included in the Fund’s Statement of Operations since April 30, 2010.
 
9. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 574,395,201     $ 15,756,079     $ (35,625,172 )   $ (19,869,093 )    
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 23

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
24 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Large Cap Growth Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., Goldman Sachs Asset Management, LP (“Goldman Sachs”), Neuberger Berman Management, LLC (“Neuberger Berman”), and Wells Capital Management, Inc. (“Wells Capital Management”)), and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees then noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group and underperformed its benchmark, the Russell 1000 Growth Index. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of Goldman Sachs, Neuberger Berman, and Wells Capital Management, the Trustees took into consideration each sub-adviser’s performance and services over longer periods regarding the management of comparable accounts. The Trustees noted that the sleeves of the Fund managed by Neuberger Berman and Wells Capital Management had been on the watch list since the third and first quarters of 2009, respectively.
 
Turning to expenses, the Trustees noted that NFA’s contractual advisory fee and actual advisory fee for Class II shares were in the second quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class II shares were in the first quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreement
 
At the June 16, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved the replacement of Goldman Sachs as a sub-adviser to the Fund with Winslow Capital Management, Inc. (“Winslow Capital”) as a sub-adviser to the Fund. The Trustees were provided with detailed materials relating to Winslow Capital in advance of and at these meetings. The material factors and conclusions that formed the basis for the approval are discussed below.
 
The Board reviewed the performance record of the Fund sleeve managed by Goldman Sachs for the one- and two-year periods ended March 31, 2010, noting that the sleeve had underperformed the Fund’s benchmark. The
 
 
 
2010 Semiannual Report 25

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
Trustees considered changes in Goldman Sachs’ investment process, significant changes to the portfolio management team at Goldman Sachs sub-advising the Fund, and management’s recommendation that Winslow Capital replace Goldman Sachs as a sub-adviser to the Fund. The Board then reviewed Winslow Capital’s investment strategy for large cap growth investments, as well as Winslow Capital’s process and historical composite performance record with respect to such investments. The Board also examined and considered the experience of the investment personnel of Winslow Capital that would be managing the Fund. The Trustees concluded that the investment performance record of Winslow Capital, in combination with various other factors, supported a decision to approve the sub-advisory agreement.
 
The Board considered the Fund’s overall fee level and noted that the overall expenses of the Fund would remain the same under the sub-advisory agreement, as Winslow Capital’s fee is paid out of the advisory fee that NFA receives from the Fund. During the discussion of Winslow Capital’s sub-advisory fees, it was noted that the sub-advisory fee paid to Winslow Capital was based on the aggregation of (i) the assets of the Fund sleeve sub-advised by Winslow Capital, (ii) the assets of a separate account it was anticipated Winslow Capital will sub-advise pursuant to a separate written agreement with Nationwide Investment Advisors, Inc. (“NIA”), and (iii) the assets of any series of the Trust, Nationwide Mutual Funds, or any other pooled investment allocated to Winslow Capital by NFA or NIA in the future; provided that any such additional assets be managed pursuant to Winslow Capital’s large cap growth style. The Board concluded that the sub-advisory fees to be paid to Winslow Capital were fair and reasonable.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are substantially similar in all material respects as the terms of the sub-advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by Winslow Capital were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
26 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 27

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
30 Semiannual Report 2010

 

 
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NVIT Multi-Manager Mid Cap Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
9
   
Statement of Assets and Liabilities
       
11
   
Statement of Operations
       
12
   
Statements of Changes in Net Assets
       
14
   
Financial Highlights
       
15
   
Notes to Financial Statements
       
26
   
Supplemental Information
       
28
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-MCG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Mid Cap Growth Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Multi-Manager Mid Cap Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       970.20       4.35       0.89  
      Hypothetical b     1,000.00       1,020.38       4.46       0.89  
 
 
Class II Shares
    Actual       1,000.00       968.90       5.57       1.14  
      Hypothetical b     1,000.00       1,019.14       5.71       1.14  
 
 
Class Y Shares
    Actual       1,000.00       970.30       4.01       0.82  
      Hypothetical b     1,000.00       1,020.73       4.11       0.82  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Mid Cap Growth Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    95 .4%
Repurchase Agreements
    5 .2%
Mutual Fund
    3 .9%
Liabilities in excess of other assets
    (4 .5)%
         
      100 .0%
 
         
Top Industries †    
 
Specialty Retail
    6 .1%
Software
    5 .0%
Communications Equipment
    4 .8%
Semiconductors & Semiconductor Equipment
    4 .6%
Health Care Providers & Services
    4 .0%
Health Care Equipment & Supplies
    3 .8%
Electronic Equipment, Instruments & Components
    3 .6%
Machinery
    3 .6%
Hotels, Restaurants & Leisure
    3 .4%
Oil, Gas & Consumable Fuels
    3 .4%
Other Industries *
    57 .7%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio – Institutional Class
    3 .7%
SBA Communications Corp., Class A
    2 .5%
Express Scripts, Inc. 
    1 .8%
Dollar Tree, Inc. 
    1 .6%
Concho Resources, Inc. 
    1 .6%
Fastenal Co. 
    1 .6%
Cognizant Technology Solutions Corp., Class A
    1 .4%
F5 Networks, Inc. 
    1 .3%
Dolby Laboratories, Inc. 
    1 .3%
Mead Johnson Nutrition Co. 
    1 .3%
Other Holdings *
    81 .9%
         
      100 .0%
 
         
Top Countries †    
 
United States
    89 .4%
Netherlands
    1 .6%
Bermuda
    1 .3%
China
    0 .7%
Singapore
    0 .7%
Ireland
    0 .6%
Guernsey, Channel Islands
    0 .3%
Argentina
    0 .2%
Canada
    0 .2%
Other Countries *
    5 .0%
         
      100 .0%
         
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries, top holdings and top countries, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Growth Fund
 
                 
                 
Common Stocks 95.4%
                 
      Shares       Market
Value 		 
 
 
ARGENTINA 0.2%
Internet Software & Services 0.2%
MercadoLibre, Inc.*
    26,696     $ 1,402,875  
                 
 
 
BERMUDA 1.3%
Internet Software & Services 0.7%
VistaPrint NV* (a)
    102,500       4,867,725  
                 
Semiconductors & Semiconductor Equipment 0.6%
Marvell Technology Group Ltd.*
    260,308       4,102,454  
                 
              8,970,179  
                 
 
 
CANADA 0.2%
Textiles, Apparel & Luxury Goods 0.2%
Lululemon Athletica, Inc.*
    32,745       1,218,769  
                 
 
 
CHINA 0.8%
Hotels, Restaurants & Leisure 0.5%
Ctrip.com International Ltd. ADR-CN*
    89,804       3,373,038  
                 
Internet Software & Services 0.3%
Baidu, Inc. ADR-CN*
    29,030       1,976,362  
                 
              5,349,400  
                 
 
 
GUERNSEY, CHANNEL ISLANDS 0.4%
Information Technology Services 0.4%
Amdocs Ltd.*
    91,622       2,460,051  
                 
 
 
IRELAND 0.6%
Pharmaceuticals 0.6%
Shire PLC
    109,749       2,251,418  
Warner Chilcott PLC, Class A*
    90,000       2,056,500  
                 
              4,307,918  
                 
 
 
NETHERLANDS 1.7%
Electrical Equipment 0.4%
Sensata Technologies Holding NV*
    160,000       2,558,400  
                 
Energy Equipment & Services 1.3%
Core Laboratories NV (a)
    58,454       8,628,395  
                 
              11,186,795  
                 
 
 
SINGAPORE 0.7%
Semiconductors & Semiconductor Equipment 0.7%
Avago Technologies Ltd.* (a)
    230,000       4,843,800  
                 
 
 
UNITED STATES 89.5%
Aerospace & Defense 2.8%
BE Aerospace, Inc.*
    133,500       3,394,905  
Goodrich Corp.
    83,236       5,514,385  
Precision Castparts Corp.
    59,685       6,142,780  
Rockwell Collins, Inc.
    70,000       3,719,100  
                 
              18,771,170  
                 
Air Freight & Logistics 1.3%
Atlas Air Worldwide Holdings, Inc.*
    42,699       2,028,203  
CH Robinson Worldwide, Inc.
    90,300       5,026,098  
Expeditors International of Washington, Inc.
    52,650       1,816,951  
                 
              8,871,252  
                 
Airlines 0.5%
Delta Air Lines, Inc.*
    138,717       1,629,925  
UAL Corp.*
    77,928       1,602,199  
                 
              3,232,124  
                 
Auto Components 0.3%
Gentex Corp.
    110,000       1,977,800  
                 
Biotechnology 1.8%
Alexion Pharmaceuticals, Inc.*
    151,774       7,769,311  
BioMarin Pharmaceutical, Inc.*
    105,000       1,990,800  
Human Genome Sciences, Inc.*
    105,000       2,379,300  
                 
              12,139,411  
                 
Capital Markets 0.9%
Affiliated Managers Group, Inc.*
    61,900       3,761,663  
SEI Investments Co.
    120,000       2,443,200  
                 
              6,204,863  
                 
Chemicals 1.8%
Albemarle Corp.
    72,438       2,876,513  
Cytec Industries, Inc.
    29,668       1,186,423  
International Flavors & Fragrances, Inc.
    30,121       1,277,733  
Nalco Holding Co.
    125,000       2,557,500  
Scotts Miracle-Gro Co. (The), Class A
    40,000       1,776,400  
Sigma-Aldrich Corp.
    45,000       2,242,350  
                 
              11,916,919  
                 
Commercial Banks 1.2%
Comerica, Inc.
    103,766       3,821,702  
Fifth Third Bancorp
    182,021       2,237,038  
Zions Bancorporation
    85,366       1,841,344  
                 
              7,900,084  
                 
Commercial Services & Supplies 1.3%
Stericycle, Inc.*
    140,000       9,181,200  
                 
Communications Equipment 5.0%
F5 Networks, Inc.*
    138,895       9,524,030  
JDS Uniphase Corp.*
    121,373       1,194,310  
Juniper Networks, Inc.*
    85,000       1,939,700  
Polycom, Inc.*
    115,000       3,425,850  
SBA Communications Corp., Class A*
    514,333       17,492,466  
                 
              33,576,356  
                 
Computers & Peripherals 2.0%
Lexmark International, Inc., Class A*
    100,527       3,320,407  
NetApp, Inc.*
    167,459       6,247,895  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
Computers & Peripherals (continued)
                 
SanDisk Corp.*
    43,496     $ 1,829,877  
Western Digital Corp.*
    70,000       2,111,200  
                 
              13,509,379  
                 
Consumer Finance 0.2%
AmeriCredit Corp.*
    71,578       1,304,151  
                 
Diversified Consumer Services 1.4%
DeVry, Inc.
    80,400       4,220,196  
Strayer Education, Inc. (a)
    25,000       5,197,250  
                 
              9,417,446  
                 
Diversified Financial Services 1.4%
IntercontinentalExchange, Inc.*
    45,000       5,086,350  
MSCI, Inc., Class A*
    155,000       4,247,000  
                 
              9,333,350  
                 
Electrical Equipment 1.7%
Ametek, Inc.
    110,000       4,416,500  
Rockwell Automation, Inc.
    51,282       2,517,433  
Roper Industries, Inc.
    80,000       4,476,800  
                 
              11,410,733  
                 
Electronic Equipment, Instruments & Components 3.8%
Agilent Technologies, Inc.*
    110,197       3,132,901  
Amphenol Corp., Class A
    95,000       3,731,600  
Dolby Laboratories, Inc., Class A*
    150,169       9,414,094  
National Instruments Corp.
    142,500       4,528,650  
Trimble Navigation Ltd.*
    164,500       4,606,000  
                 
              25,413,245  
                 
Energy Equipment & Services 1.1%
CARBO Ceramics, Inc.
    81,000       5,847,390  
FMC Technologies, Inc.*
    36,472       1,920,616  
                 
              7,768,006  
                 
Food & Staples Retailing 0.4%
Whole Foods Market, Inc.*
    69,124       2,489,846  
                 
Food Products 2.1%
H.J. Heinz Co.
    45,154       1,951,556  
Hershey Co. (The)
    69,170       3,315,318  
Mead Johnson Nutrition Co.
    183,964       9,220,276  
                 
              14,487,150  
                 
Health Care Equipment & Supplies 4.0%
C.R. Bard, Inc.
    25,906       2,008,492  
Edwards Lifesciences Corp.*
    100,000       5,602,000  
Intuitive Surgical, Inc.*
    16,844       5,316,303  
NuVasive, Inc.* (a)
    150,000       5,319,000  
ResMed, Inc.*
    46,400       2,821,584  
Varian Medical Systems, Inc.*
    41,819       2,186,298  
Volcano Corp.*
    165,000       3,600,300  
                 
              26,853,977  
                 
Health Care Providers & Services 4.2%
AmerisourceBergen Corp.
    132,780       4,215,765  
Express Scripts, Inc.*
    269,827       12,687,266  
Health Management Associates, Inc., Class A*
    160,466       1,246,821  
HMS Holdings Corp.*
    87,500       4,744,250  
Medco Health Solutions, Inc.*
    101,465       5,588,693  
                 
              28,482,795  
                 
Health Care Technology 1.2%
Cerner Corp.*
    73,398       5,570,174  
MedAssets, Inc.*
    100,000       2,308,000  
                 
              7,878,174  
                 
Hotels, Restaurants & Leisure 3.1%
Chipotle Mexican Grill, Inc.*
    14,198       1,942,428  
Hyatt Hotels Corp., Class A*
    65,000       2,410,850  
Las Vegas Sands Corp.*
    52,320       1,158,365  
Royal Caribbean Cruises Ltd.* (a)
    100,000       2,277,000  
Starwood Hotels & Resorts Worldwide, Inc.
    104,707       4,338,011  
WMS Industries, Inc.*
    190,000       7,457,500  
Wynn Resorts Ltd.
    15,514       1,183,253  
                 
              20,767,407  
                 
Household Durables 1.5%
Stanley Black & Decker, Inc.
    105,211       5,315,260  
Tempur-Pedic International, Inc.*
    52,269       1,607,272  
Whirlpool Corp.
    35,327       3,102,417  
                 
              10,024,949  
                 
Household Products 0.8%
Church & Dwight Co., Inc.
    91,231       5,721,096  
                 
Information Technology Services 2.1%
Alliance Data Systems Corp.* (a)
    47,500       2,827,200  
Cognizant Technology Solutions Corp., Class A*
    193,704       9,696,822  
Hewitt Associates, Inc., Class A*
    60,000       2,067,600  
                 
              14,591,622  
                 
Insurance 0.2%
Genworth Financial, Inc., Class A*
    96,115       1,256,223  
                 
Internet & Catalog Retail 0.3%
Priceline.com, Inc.*
    10,756       1,898,864  
                 
Internet Software & Services 1.8%
Equinix, Inc.*
    74,319       6,036,189  
GSI Commerce, Inc.*
    70,000       2,016,000  
Rackspace Hosting, Inc.* (a)
    85,500       1,568,070  
WebMD Health Corp.*
    48,983       2,274,281  
                 
              11,894,540  
                 
Leisure Equipment & Products 0.7%
Hasbro, Inc.
    56,500       2,322,150  
Mattel, Inc.
    121,370       2,568,189  
                 
              4,890,339  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
                 
Life Sciences Tools & Services 1.3%
Life Technologies Corp.*
    117,534     $ 5,553,481  
PerkinElmer, Inc.
    63,566       1,313,909  
Waters Corp.*
    29,218       1,890,405  
                 
              8,757,795  
                 
Machinery 3.7%
ArvinMeritor, Inc.*
    143,176       1,875,606  
Cummins, Inc.
    109,419       7,126,459  
Danaher Corp.
    137,000       5,085,440  
Dover Corp.
    50,821       2,123,810  
Flowserve Corp.
    32,500       2,756,000  
Kennametal, Inc.
    74,936       1,905,622  
Pall Corp.
    90,000       3,093,300  
Timken Co.
    46,442       1,207,028  
                 
              25,173,265  
                 
Media 1.2%
CBS Corp. Non-Voting, Class B
    94,770       1,225,376  
Discovery Communications, Inc., Class A*
    120,057       4,287,236  
Scripps Networks Interactive, Inc., Class A
    70,000       2,823,800  
                 
              8,336,412  
                 
Metals & Mining 0.6%
Cliffs Natural Resources Inc.
    90,987       4,290,947  
                 
Multiline Retail 2.6%
Dollar Tree, Inc.*
    271,907       11,319,468  
Family Dollar Stores, Inc.
    35,857       1,351,450  
Nordstrom, Inc.
    163,264       5,255,468  
                 
              17,926,386  
                 
Oil, Gas & Consumable Fuels 3.5%
Brigham Exploration Co.*
    72,374       1,113,112  
Concho Resources, Inc.*
    202,723       11,216,664  
Pioneer Natural Resources Co.
    20,863       1,240,305  
Range Resources Corp.
    90,000       3,613,500  
Whiting Petroleum Corp.*
    82,475       6,467,690  
                 
              23,651,271  
                 
Pharmaceuticals 1.1%
Salix Pharmaceuticals Ltd.*
    134,724       5,258,278  
Watson Pharmaceuticals, Inc.*
    51,000       2,069,070  
                 
              7,327,348  
                 
Professional Services 0.7%
Verisk Analytics, Inc., Class A*
    151,500       4,529,850  
                 
Real Estate Investment Trusts (REITs) 1.0%
AvalonBay Communities, Inc.
    35,332       3,298,949  
Digital Realty Trust, Inc.
    34,395       1,983,903  
DuPont Fabros Technology, Inc.
    54,598       1,340,927  
                 
              6,623,779  
                 
Real Estate Management & Development 1.1%
CB Richard Ellis Group, Inc., Class A*
    131,162       1,785,115  
Jones Lang LaSalle, Inc.
    85,601       5,618,849  
                 
              7,403,964  
                 
Road & Rail 1.2%
J.B. Hunt Transport Services, Inc.
    132,800       4,338,576  
Kansas City Southern*
    105,486       3,834,416  
                 
              8,172,992  
                 
Semiconductors & Semiconductor Equipment 3.4%
Altera Corp.
    84,190       2,088,754  
Analog Devices, Inc.
    121,600       3,387,776  
Atheros Communications, Inc.*
    45,257       1,246,378  
Cavium Networks, Inc.*
    24,912       652,445  
Cree, Inc.*
    18,514       1,111,395  
Microchip Technology, Inc. (a)
    170,000       4,715,800  
Silicon Laboratories, Inc.*
    94,000       3,812,640  
Teradyne, Inc.*
    119,472       1,164,852  
Varian Semiconductor Equipment Associates, Inc.*
    120,000       3,439,200  
Veeco Instruments, Inc.*
    49,834       1,708,310  
                 
              23,327,550  
                 
Software 5.2%
ANSYS, Inc.*
    135,000       5,476,950  
Autodesk, Inc.*
    44,895       1,093,642  
Citrix Systems, Inc.*
    135,275       5,712,663  
Informatica Corp.*
    155,000       3,701,400  
MICROS Systems, Inc.*
    95,000       3,027,650  
Rovi Corp.*
    200,262       7,591,933  
Salesforce.com, Inc.*
    71,182       6,108,839  
Solera Holdings, Inc.
    65,000       2,353,000  
                 
              35,066,077  
                 
Specialty Retail 6.3%
Abercrombie & Fitch Co., Class A
    65,000       1,994,850  
AnnTaylor Stores Corp.*
    60,005       976,281  
AutoZone, Inc.*
    20,476       3,956,373  
Bed Bath & Beyond, Inc.*
    159,676       5,920,786  
Dick’s Sporting Goods, Inc.*
    65,500       1,630,295  
J Crew Group, Inc.*
    108,500       3,993,885  
OfficeMax, Inc.*
    79,261       1,035,149  
O’Reilly Automotive, Inc.*
    56,220       2,673,823  
PetSmart, Inc.
    64,586       1,948,560  
Ross Stores, Inc.
    107,500       5,728,675  
Urban Outfitters, Inc.*
    190,000       6,534,100  
Williams-Sonoma, Inc.
    257,938       6,402,021  
                 
              42,794,798  
                 
Textiles, Apparel & Luxury Goods 1.0%
Coach, Inc.
    100,000       3,655,000  
Phillips-Van Heusen Corp.
    25,825       1,194,923  
Polo Ralph Lauren Corp.
    22,500       1,641,600  
                 
              6,491,523  
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
                 
Trading Companies & Distributors 2.5%
Fastenal Co. (a)
    221,669     $ 11,125,567  
W.W. Grainger, Inc.
    55,550       5,524,448  
                 
              16,650,015  
                 
Wireless Telecommunication Services 2.2%
American Tower Corp., Class A*
    194,802       8,668,689  
NII Holdings, Inc.*
    195,570       6,359,936  
                 
              15,028,625  
                 
              604,717,068  
                 
         
Total Common Stocks (cost $585,940,322)
    644,456,855  
         
                 
                 
Mutual Fund 3.9%
Money Market Fund 3.9%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (b)
    26,070,200       26,070,200  
                 
         
Total Mutual Fund (cost $26,070,200)
    26,070,200  
         
                 
                 
Repurchase Agreements 5.2%
                 
      Principal
Amount 		      Market
Value 		 
 
 
                 
Morgan Stanley, 0.03%, dated 06/30/010, due 07/01/10, repurchase price $15,419,654, collateralized by U.S. Government Agency Securities 4.00%-8.50%, maturing 03/01/15-06/01/40; total market value of $15,728,586. (c)
  $ 15,419,642       15,419,642  
Barclays Capital, 0.01%, dated 06/30/010, due 07/01/10, repurchase price $20,000,006, collateralized by U.S. Treasury Securities 1.88%, maturing 06/30/15; total market value of $20,400,001. (c)
  $ 20,000,000       20,000,000  
                 
         
Total Repurchase Agreements (cost $35,419,642)
    35,419,642  
         
         
Total Investments (cost $647,430,164) (d) — 104.5%
    705,946,697  
         
Liabilities in excess of other assets — (4.5)%
    (30,193,952 )
         
         
NET ASSETS — 100.0%
  $ 675,752,745  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $35,381,229.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $35,419,642.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
CN China
 
Ltd. Limited
 
NV Public Traded Company
 
PLC Public Limited Company
 
REIT Real Estate Investment Trust
 
At June 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Short Contracts:
                       
British Pound
  Bank of America NA   7/30/10     (1,007,990 )   $ (1,521,218 )   $ (1,506,038 )   $ 15,180  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Mid Cap Growth
 		 
      Fund  
       
Assets:
         
Investments, at value* (cost $612,010,522)
    $ 670,527,055  
Repurchase agreements, at value and cost
      35,419,642  
           
Total Investments
      705,946,697  
           
Dividends receivable
      212,073  
Security lending income receivable
      14,582  
Receivable for investments sold
      15,085,235  
Receivable for capital shares issued
      489,299  
Reclaims receivable
      5,707  
Unrealized appreciation on forward foreign currency contracts (Note 2)
      15,180  
Prepaid expenses and other assets
      7,607  
           
Total Assets
      721,776,380  
           
Liabilities:
         
Payable for investments purchased
      9,506,588  
Payable for capital shares redeemed
      517,059  
Payable upon return of securities loaned (Note 2)
      35,419,642  
Accrued expenses and other payables:
         
Investment advisory fees
      419,767  
Fund administration fees
      21,957  
Distribution fees
      31,943  
Administrative servicing fees
      40,143  
Accounting and transfer agent fees
      6,371  
Trustee fees
      680  
Custodian fees
      1,415  
Compliance program costs (Note 3)
      5,195  
Professional fees
      25,807  
Other
      27,068  
           
Total Liabilities
      46,023,635  
           
Net Assets
    $ 675,752,745  
           
Represented by:
         
Capital
    $ 701,387,185  
Accumulated net investment loss
      (1,506,504 )
Accumulated net realized losses from investment and foreign currency transactions
      (82,659,949 )
Net unrealized appreciation/(depreciation) from investments
      58,516,533  
Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      15,180  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      300  
           
Net Assets
    $ 675,752,745  
           
Net Assets:
         
Class I Shares
    $ 384,598,197  
Class II Shares
      146,438,878  
Class Y Shares
      144,715,670  
           
Total
    $ 675,752,745  
           
*  Includes value of securities on loan of $35,381,229 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statement of Assets and Liabilities (Continued)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Mid Cap Growth
 		 
      Fund  
       
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      47,233,014  
Class II Shares
      18,095,199  
Class Y Shares
      17,739,069  
           
Total
      83,067,282  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.14  
Class II Shares
    $ 8.09  
Class Y Shares
    $ 8.16  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Mid Cap Growth
 		 
      Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 1,705,022  
Income from securities lending (Note 2)
      71,626  
Foreign tax withholding
      (3,059 )
           
Total Income
      1,773,589  
           
EXPENSES:
         
Investment advisory fees
      2,700,378  
Fund administration fees
      132,138  
Distribution fees Class II Shares
      201,995  
Administrative servicing fees Class I Shares
      148,635  
Administrative servicing fees Class II Shares
      56,559  
Professional fees
      36,484  
Printing fees
      152,434  
Trustee fees
      12,533  
Custodian fees
      16,210  
Accounting and transfer agent fees
      6,278  
Compliance program costs (Note 3)
      1,473  
Other
      15,583  
           
Total expenses before earnings credit and expenses reimbursed
      3,480,700  
Earnings credit (Note 4)
      (9 )
Expenses reimbursed by adviser (Note 3)
      (122,527 )
           
Net Expenses
      3,358,164  
           
NET INVESTMENT LOSS
      (1,584,575 )
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      38,293,130  
Net realized gains from forward and foreign currency transactions (Note 2)
      61,704  
           
Net realized gains from investment, forward foreign currency and foreign currency transactions
      38,354,834  
           
Net change in unrealized appreciation/(depreciation) from investments
      (56,607,696 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      15,180  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (239 )
           
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (56,592,755 )
           
Net realized/unrealized losses from investments, forward foreign currency contracts, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (18,237,921 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (19,822,496 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager Mid Cap
 		 
      Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment loss
    $ (1,584,575 )     $ (1,600,663 )
Net realized gains/(losses) from investment and foreign currency transactions
      38,354,834         (28,326,225 )
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (56,592,755 )       147,566,445  
                     
Change in net assets resulting from operations
      (19,822,496 )       117,639,557  
                     
                     
Distributions to Shareholders From:
                   
Change in net assets from capital transactions
      (28,225,218 )       486,876,377  
                     
Change in net assets
      (48,047,714 )       604,515,934  
                     
                     
Net Assets:
                   
Beginning of period
      723,800,459         119,284,525  
                     
End of period
    $ 675,752,745       $ 723,800,459  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (1,506,504 )     $ 78,071  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 2,045,771       $ 161,077,599  
Proceeds from shares issued in acquisition of NVIT Mid Cap Growth Fund (Note 8)
      –         84,375,024  
Proceeds from shares issued in-kind (Note 8)
      –         167,691,630  
Cost of shares redeemed
      (40,926,083 )       (43,107,140 )
                     
Total Class I
      (38,880,312 )       370,037,113  
                     
Class II Shares
                   
Proceeds from shares issued
      392,003         57,995,416  
Proceeds from shares issued in acquisition of NVIT Mid Cap Growth Fund (Note 8)
      –         19,212,532  
Cost of shares redeemed
      (26,712,735 )       (20,668,999 )
                     
Total Class II
      (26,320,732 )       56,538,949  
                     
Class Y Shares
                   
Proceeds from shares issued
      38,613,889         68,470,783  
Cost of shares redeemed
      (1,638,063 )       (8,170,468 )
                     
Total Class Y
      36,975,826         60,300,315  
                     
Change in net assets from capital transactions
    $ (28,225,218 )     $ 486,876,377  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      233,805         21,730,339  
Issued in acquisition of NVIT Mid Cap Growth Fund (Note 8)
      –         12,486,113  
Issued in-kind (Note 8)
      –         22,599,951  
Redeemed
      (4,718,317 )       (5,601,908 )
                     
Total Class I Shares
      (4,484,512 )       51,214,495  
                     
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
 
12 Semiannual Report 2010

 

 
 
                     
      NVIT Multi-Manager Mid Cap
 		 
      Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class II Shares
                   
Issued
      45,479         8,492,515  
Issued in acquisition of NVIT Mid Cap Growth Fund (Note 8)
      –         2,851,830  
Redeemed
      (3,071,802 )       (2,806,277 )
                     
Total Class II Shares
      (3,026,323 )       8,538,068  
                     
Class Y Shares
                   
Issued
      4,446,623         9,549,150  
Redeemed
      (192,682 )       (1,056,911 )
                     
Total Class Y Shares
      4,253,941         8,492,239  
                     
Total change in shares
      (3,256,894 )       68,244,802  
                     
 
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Mid Cap Growth Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Loss
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
  of Period     Loss     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .39       (0 .02)       (0 .23)       (0 .25)       –          –          –        $ 8 .14       (2 .98%)     $ 384,598,197         0 .89%       (0 .40%)       0 .92%       49 .88%    
Year Ended December 31, 2009 (e)
  $ 6 .61       (0 .02)       1 .80       1 .78       –          –          –        $ 8 .39       27 .12%     $ 434,045,905         0 .89%       (0 .31%)       0 .90%       146 .76%    
Period Ended December 31, 2008 (f)
  $ 10 .00       (0 .01)       (3 .38)       (3 .39)       –          –          –        $ 6 .61       (33 .90%)     $ 3,323,047         0 .94%       (0 .32%)       1 .02%       108 .89%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .35       (0 .03)       (0 .23)       (0 .26)       –          –          –        $ 8 .09       (3 .11%)     $ 146,438,878         1 .14%       (0 .65%)       1 .17%       49 .88%    
Year Ended December 31, 2009 (e)
  $ 6 .59       (0 .04)       1 .80       1 .76       –          –          –        $ 8 .35       26 .71%     $ 176,404,557         1 .15%       (0 .56%)       1 .18%       146 .76%    
Period Ended December 31, 2008 (f)
  $ 10 .00       (0 .02)       (3 .39)       (3 .41)       –          –          –        $ 6 .59       (34 .10%)     $ 82,944,963         1 .18%       (0 .57%)       1 .26%       108 .89%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .41       (0 .01)       (0 .24)       (0 .25)       –          –          –        $ 8 .16       (2 .97%)     $ 144,715,670         0 .82%       (0 .32%)       0 .86%       49 .88%    
Year Ended December 31, 2009 (e)
  $ 6 .61       (0 .02)       1 .82       1 .80       –          –          –        $ 8 .41       27 .23%     $ 113,349,997         0 .83%       (0 .24%)       0 .85%       146 .76%    
Period Ended December 31, 2008 (f)
  $ 10 .00       –          (3 .39)       (3 .39)       –          –          –        $ 6 .61       (33 .90%)     $ 33,016,515         0 .82%       (0 .14%)       0 .99%       108 .89%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Mid Cap Growth Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
 
 
Common Stocks
                                   
 
 
Aerospace & Defense
    18,771,170       —       —       18,771,170      
 
 
Air Freight & Logistics
    8,871,252       —       —       8,871,252      
 
 
Airlines
    3,232,124       —       —       3,232,124      
 
 
Auto Components
    1,977,800       —       —       1,977,800      
 
 
Biotechnology
    12,139,411       —       —       12,139,411      
 
 
Capital Markets
    6,204,863       —       —       6,204,863      
 
 
Chemicals
    11,916,919       —       —       11,916,919      
 
 
Commercial Banks
    7,900,084       —       —       7,900,084      
 
 
Commercial Services & Supplies
    9,181,200       —       —       9,181,200      
 
 
Communications Equipment
    33,576,356       —       —       33,576,356      
 
 
Computers & Peripherals
    13,509,379       —       —       13,509,379      
 
 
Consumer Finance
    1,304,151       —       —       1,304,151      
 
 
Diversified Consumer Services
    9,417,446       —       —       9,417,446      
 
 
Diversified Financial Services
    9,333,350       —       —       9,333,350      
 
 
Electrical Equipment
    13,969,133       —       —       13,969,133      
 
 
 
 
 
16 Semiannual Report 2010

 

 
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Electronic Equipment, Instruments & Components
    25,413,245       —       —       25,413,245      
 
 
Energy Equipment & Services
    16,396,401       —       —       16,396,401      
 
 
Food & Staples Retailing
    2,489,846       —       —       2,489,846      
 
 
Food Products
    14,487,150       —       —       14,487,150      
 
 
Health Care Equipment & Supplies
    26,853,977       —       —       26,853,977      
 
 
Health Care Providers & Services
    28,482,795       —       —       28,482,795      
 
 
Health Care Technology
    7,878,174       —       —       7,878,174      
 
 
Hotels, Restaurants & Leisure
    24,140,445       —       —       24,140,445      
 
 
Household Durables
    10,024,949       —       —       10,024,949      
 
 
Household Products
    5,721,096       —       —       5,721,096      
 
 
Information Technology Services
    17,051,673       —       —       17,051,673      
 
 
Insurance
    1,256,223       —       —       1,256,223      
 
 
Internet & Catalog Retail
    1,898,864       —       —       1,898,864      
 
 
Internet Software & Services
    20,141,502       —       —       20,141,502      
 
 
Leisure Equipment & Products
    4,890,339       —       —       4,890,339      
 
 
Life Sciences Tools & Services
    8,757,795       —       —       8,757,795      
 
 
Machinery
    25,173,265       —       —       25,173,265      
 
 
Media
    8,336,412       —       —       8,336,412      
 
 
Metals & Mining
    4,290,947       —       —       4,290,947      
 
 
Multiline Retail
    17,926,386       —       —       17,926,386      
 
 
Oil, Gas & Consumable Fuels
    23,651,271       —       —       23,651,271      
 
 
Pharmaceuticals
    9,383,848       2,251,418       —       11,635,266      
 
 
Professional Services
    4,529,850       —       —       4,529,850      
 
 
Real Estate Investment Trusts (REITs)
    6,623,779       —       —       6,623,779      
 
 
Real Estate Management & Development
    7,403,964       —       —       7,403,964      
 
 
Road & Rail
    8,172,992       —       —       8,172,992      
 
 
Semiconductors & Semiconductor Equipment
    32,273,804       —       —       32,273,804      
 
 
Software
    35,066,077       —       —       35,066,077      
 
 
Specialty Retail
    42,794,798       —       —       42,794,798      
 
 
Textiles, Apparel & Luxury Goods
    7,710,292       —       —       7,710,292      
 
 
Trading Companies & Distributors
    16,650,015       —       —       16,650,015      
 
 
Wireless Telecommunication Services
    15,028,625       —       —       15,028,625      
 
 
Total Common Stocks
    642,205,437       2,251,418       —       644,456,855      
 
 
Forward Currency Contracts
    —       15,180       —       15,180      
 
 
Mutual Fund
    26,070,200       —       —       26,070,200      
 
 
Repurchase Agreements
    —       35,419,642       —       35,419,642      
 
 
Total Assets
  $ 668,275,637     $ 37,686,240     $ —     $ 705,961,877      
 
 
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
(d)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
 
 
18 Semiannual Report 2010

 

 
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                 
    Statement of Assets & Liabilities Location   Fair Value    
 
Assets:
               
 
 
Forward Foreign currency contracts
  Receivables — Unrealized appreciation from forward foreign currency contracts   $ 15,180      
 
 
Total
      $ 15,180      
 
 
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Forward Foreign currency contracts   $ 61,704      
 
 
    Total   $ 61,704      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Forward Foreign currency contracts   $ 15,180      
 
 
    Total   $ 15,180      
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(e)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(f)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(g)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 35,381,229     $ 36,389,787*      
 
 
* Includes $970,145 collateral in the form of U.S. Treasury Notes/Bonds ranging from 0.875%–5%, maturing 8/15/10–5/15/39.
 
(h)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for
 
 
 
20 Semiannual Report 2010

 

 
 
federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(i)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(j)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
     
Subadvisers    
 
American Century Investment Management, Inc.
   
 
 
Neuberger Berman Management, LLC
   
 
 
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.75%      
 
 
    $1 billion and more     0.70%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.75%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers $1,595,805 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.82% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                 
Period Ended
 		  Year Ended
 		  Six Months Ended
 		       
2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
$ 61,733     $ 77,392     $ 122,527     $ 261,652      
 
 
(a) For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
22 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, nd NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for there services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $205,194 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,473.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $346,979,768 and sales of $391,908,542 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
24 Semiannual Report 2010

 

 
 
8. Other
 
On April 24, 2009, the Fund acquired all of the net assets of NVIT Mid Cap Growth Fund, an open-end investment company, pursuant to a plan of reorganization approved by NVIT Mid Cap Growth Fund shareholders on April 14, 2009. The purpose of the reorganization was to combine funds managed by NFA that had comparable investment objectives and strategies. The reorganization was accomplished by a tax-free exchange of 12,486,113 Class I shares and 2,851,830 Class II shares of the Fund, valued at $84,375,024 and $19,212,532, respectively, for the assets of NVIT Mid Cap Growth Fund. The investment portfolio of NVIT Mid Cap Growth Fund, with a fair value of $94,005,247 and an identified cost of $101,018,138 at April 24, 2009, was the principle asset acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of any investments received from NVIT Mid Cap Growth Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the reorganization, the net assets of the Fund were $170,971,906.
 
The following pro forma information for the year ended December 31, 2009 is provided as though the reorganization had been completed on January 1, 2009, the beginning of the annual reporting period of the Fund:
 
  •   Net investment loss $(1,824,521);
 
  •   Net loss on investments $(6,920,442); and
 
  •   Net decrease in net assets resulting from operations $(8,744,963).
 
Because the Fund’s combined investment portfolio has been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of NVIT Mid Cap Growth Fund that have been included in the Fund’s statement of operations since April 24, 2009.
 
During the year ended December 31, 2009, the Fund issued 10,363,793 shares of beneficial interest in exchange for securities tendered to the Fund by the purchaser of such shares. The securities, with a market value of $76,899,341, were tendered by the purchaser as in-kind consideration for the purchase of shares of beneficial interest of the Fund on August 14, 2009.
 
During the year ended December 31, 2009, the Fund issued 12,236,158 shares of beneficial interest in exchange for securities tendered to the Fund by the purchaser of such shares. The securities, with a market value of $90,792,289, were tendered by the purchaser as in-kind consideration for the purchase of shares of beneficial interest of the Fund on August 14, 2009.
 
9. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 650,453,243     $ 78,920,731     $ (23,427,277)     $ 55,493,454      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 25

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
26 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Mid Cap Growth Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub advisers (i.e., American Century Investment Management, Inc. (“American Century”) and Neuberger Berman Management, LLC (“Neuberger Berman”)) and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group and underperformed its benchmark, the Russell Mid Cap Growth Index. The Trustees then noted that the sleeves of the Fund managed by Neuberger Berman and American Century have been on the watch list since the third and second quarters of 2009, respectively.
 
The Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the fourth quintile of its Peer Group. The Trustees also noted that the Fund’s actual advisory fee and total expenses for Class II shares were in the second quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 27

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 31

 

 
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NVIT Multi-Manager Mid Cap Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
11
   
Statement of Assets and Liabilities
       
13
   
Statement of Operations
       
14
   
Statements of Changes in Net Assets
       
16
   
Financial Highlights
       
17
   
Notes to Financial Statements
       
26
   
Supplemental Information
       
28
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-MCV (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Mid Cap Value Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Multi-Manager Mid Cap Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       961.40       4.67       0.96  
      Hypothetical b     1,000.00       1,020.03       4.81       0.96  
 
 
Class II Shares
    Actual       1,000.00       960.90       5.20       1.07  
      Hypothetical b     1,000.00       1,019.49       5.36       1.07  
 
 
Class Y Shares
    Actual       1,000.00       961.00       3.94       0.81  
      Hypothetical b     1,000.00       1,020.78       4.06       0.81  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Mid Cap Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    98 .6%
Repurchase Agreement
    1 .4%
Mutual Fund
    1 .2%
Liabilities in excess of other assets
    (1 .2)%
         
      100 .0%
 
         
Top Industries †    
 
Insurance
    9 .8%
Multi-Utilities
    6 .2%
Oil, Gas & Consumable Fuels
    5 .4%
Real Estate Investment Trusts (REITs)
    4 .4%
Specialty Retail
    4 .0%
Information Technology Services
    3 .4%
Machinery
    3 .4%
Pharmaceuticals
    3 .2%
Commercial Services & Supplies
    3 .2%
Electric Utilities
    2 .9%
Other Industries *
    54 .1%
         
      100 .0%
         
Top Holdings †    
 
Republic Services, Inc.
    1 .8%
PG&E Corp.
    1 .4%
HCC Insurance Holdings, Inc. 
    1 .4%
Forest Laboratories, Inc.
    1 .4%
Invesco Liquid Assets Portfolio — Institutional Class
    1 .2%
Northern Trust Corp.
    1 .1%
Aon Corp. 
    1 .1%
Imperial Oil Ltd. 
    1 .1%
Sempra Energy
    1 .0%
Lowe’s Cos., Inc. 
    1 .0%
Other Holdings *
    87 .5%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Value Fund
 
                 
Common Stocks 98.6%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 1.4%
Alliant Techsystems, Inc.*
    20,000     $ 1,241,200  
Goodrich Corp.
    34,340       2,275,025  
ITT Corp.
    71,900       3,229,748  
Northrop Grumman Corp.
    22,083       1,202,199  
                 
              7,948,172  
                 
 
 
Airlines 0.3%
AMR Corp.*
    19,842       134,529  
Continental Airlines, Inc., Class B*
    21,183       466,026  
Delta Air Lines, Inc.*
    48,370       568,347  
UAL Corp.* (a)
    14,197       291,890  
US Airways Group, Inc.*
    36,660       315,643  
                 
              1,776,435  
                 
 
 
Auto Components 0.3%
Goodyear Tire & Rubber Co. (The)*
    170,427       1,694,044  
                 
 
 
Automobiles 0.1%
Ford Motor Co.*
    28,655       288,842  
                 
 
 
Beverages 0.7%
Coca-Cola Enterprises, Inc.
    148,182       3,831,987  
                 
 
 
Biotechnology 0.2%
Cephalon, Inc.*
    23,000       1,305,250  
                 
 
 
Building Products 0.3%
A.O. Smith Corp.
    33,947       1,635,906  
                 
 
 
Capital Markets 2.9%
Ameriprise Financial, Inc.
    50,189       1,813,329  
Artio Global Investors, Inc.
    20,317       319,790  
Invesco Ltd.
    181,486       3,054,409  
Northern Trust Corp.
    139,676       6,522,869  
State Street Corp.
    82,756       2,798,808  
TD Ameritrade Holding Corp.*
    174,000       2,662,200  
                 
              17,171,405  
                 
 
 
Chemicals 2.8%
Agrium, Inc.
    33,081       1,618,984  
CF Industries Holdings, Inc.
    60,900       3,864,105  
Eastman Chemical Co.
    46,588       2,485,936  
Huntsman Corp.
    85,267       739,265  
Lubrizol Corp.
    45,108       3,622,623  
Minerals Technologies, Inc.
    38,945       1,851,445  
PPG Industries, Inc.
    34,790       2,101,664  
                 
              16,284,022  
                 
 
 
Commercial Banks 1.4%
CIT Group, Inc.*
    37,935       1,284,479  
Comerica, Inc.
    84,053       3,095,672  
Commerce Bancshares, Inc.
    65,993       2,375,088  
Fifth Third Bancorp
    55,033       676,356  
Marshall & Ilsley Corp.
    24,610       176,700  
Regions Financial Corp.
    13,012       85,619  
SunTrust Banks, Inc.
    29,800       694,340  
Zions Bancorporation (a)
    4,122       88,911  
                 
              8,477,165  
                 
 
 
Commercial Services & Supplies 3.3%
Cintas Corp.
    69,277       1,660,570  
Pitney Bowes, Inc.
    96,215       2,112,881  
Republic Services, Inc.
    357,408       10,625,740  
Ritchie Bros. Auctioneers, Inc. (a)
    85,710       1,561,636  
Waste Management, Inc.
    101,582       3,178,501  
                 
              19,139,328  
                 
 
 
Communications Equipment 0.9%
Brocade Communications Systems, Inc.*
    155,955       804,728  
EchoStar Corp., Class A*
    123,052       2,347,832  
Emulex Corp.*
    192,482       1,766,985  
Tellabs, Inc.
    93,414       596,915  
                 
              5,516,460  
                 
 
 
Computers & Peripherals 0.9%
Diebold, Inc.
    50,534       1,377,052  
Western Digital Corp.*
    126,500       3,815,240  
                 
              5,192,292  
                 
 
 
Construction & Engineering 1.5%
Chicago Bridge & Iron Co. NV NYRS-NL REG*
    82,591       1,553,537  
Fluor Corp.
    22,658       962,965  
Foster Wheeler AG*
    190,606       4,014,162  
Insituform Technologies, Inc., Class A*
    12,055       246,886  
Jacobs Engineering Group, Inc.*
    31,480       1,147,131  
KBR, Inc.
    49,796       1,012,851  
                 
              8,937,532  
                 
 
 
Construction Materials 0.5%
Cemex SAB de CV ADR-MX*
    134,005       1,295,829  
Vulcan Materials Co.
    34,187       1,498,416  
                 
              2,794,245  
                 
 
 
Containers & Packaging 2.0%
Bemis Co., Inc.
    201,288       5,434,776  
Crown Holdings, Inc.*
    92,600       2,318,704  
Owens-Illinois, Inc.*
    42,800       1,132,060  
Packaging Corp. of America
    75,400       1,660,308  
Sonoco Products Co.
    47,939       1,461,181  
                 
              12,007,029  
                 
 
 
Distributors 0.6%
Genuine Parts Co.
    86,367       3,407,178  
                 
 
 
Diversified Consumer Services 0.6%
H&R Block, Inc.
    222,600       3,492,594  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Diversified Financial Services 0.1%
Pico Holdings, Inc.*
    20,927     $ 627,182  
                 
 
 
Diversified Telecommunication Services 2.2%
CenturyLink, Inc.
    74,852       2,493,320  
Consolidated Communications Holdings, Inc.
    70,850       1,205,159  
Qwest Communications International, Inc.
    859,725       4,513,556  
Windstream Corp.
    438,572       4,631,320  
                 
              12,843,355  
                 
 
 
Electric Utilities 3.0%
Allegheny Energy, Inc.
    50,583       1,046,056  
American Electric Power Co., Inc.
    45,719       1,476,724  
Great Plains Energy, Inc.
    72,857       1,240,026  
IDACORP, Inc.
    33,713       1,121,632  
Northeast Utilities
    91,857       2,340,516  
NV Energy, Inc.
    230,274       2,719,536  
Pepco Holdings, Inc.
    86,256       1,352,494  
Pinnacle West Capital Corp.
    17,770       646,117  
Portland General Electric Co.
    110,534       2,026,088  
Westar Energy, Inc.
    160,837       3,475,688  
                 
              17,444,877  
                 
 
 
Electrical Equipment 2.5%
Cooper Industries PLC, Class A
    98,534       4,335,496  
Emerson Electric Co.
    58,031       2,535,374  
Hubbell, Inc., Class B
    99,242       3,938,915  
Rockwell Automation, Inc.
    27,929       1,371,035  
Thomas & Betts Corp.*
    64,197       2,227,636  
Woodward Governor Co.
    17,640       450,349  
                 
              14,858,805  
                 
 
 
Electronic Equipment, Instruments & Components 1.1%
Agilent Technologies, Inc.*
    72,771       2,068,880  
Avnet, Inc.*
    58,935       1,420,923  
Celestica, Inc.*
    86,956       700,865  
Molex, Inc.
    120,399       2,196,078  
                 
              6,386,746  
                 
 
 
Energy Equipment & Services 2.3%
Baker Hughes, Inc.
    31,886       1,325,501  
Cameron International Corp.*
    26,056       847,341  
Dresser-Rand Group, Inc.*
    126,600       3,994,230  
Helix Energy Solutions Group, Inc.*
    80,601       868,073  
Helmerich & Payne, Inc.
    6,671       243,625  
Nabors Industries Ltd.*
    50,383       887,748  
Noble Corp.*
    80,638       2,492,521  
Oceaneering International, Inc.*
    14,847       666,630  
Smith International, Inc.
    59,151       2,227,035  
                 
              13,552,704  
                 
 
 
Food Products 1.7%
Campbell Soup Co.
    37,048       1,327,430  
ConAgra Foods, Inc.
    196,263       4,576,853  
H.J. Heinz Co.
    84,205       3,639,340  
Kellogg Co.
    12,938       650,782  
                 
              10,194,405  
                 
 
 
Gas Utilities 1.3%
EQT Corp.
    130,817       4,727,726  
Questar Corp.
    41,854       1,903,938  
Southwest Gas Corp.
    40,319       1,189,411  
                 
              7,821,075  
                 
 
 
Health Care Equipment & Supplies 2.8%
Beckman Coulter, Inc.
    56,315       3,395,231  
Boston Scientific Corp.*
    377,068       2,186,995  
CareFusion Corp.*
    26,292       596,828  
Hospira, Inc.*
    80,482       4,623,691  
Symmetry Medical, Inc.*
    74,193       781,994  
Zimmer Holdings, Inc.*
    92,755       5,013,408  
                 
              16,598,147  
                 
 
 
Health Care Providers & Services 2.4%
AmerisourceBergen Corp.
    136,900       4,346,575  
CIGNA Corp.
    59,312       1,842,231  
LifePoint Hospitals, Inc.*
    70,422       2,211,251  
Patterson Cos., Inc.
    20,941       597,447  
Quest Diagnostics, Inc.
    55,900       2,782,143  
Select Medical Holdings Corp.*
    159,439       1,080,996  
Universal Health Services, Inc., Class B
    35,630       1,359,284  
                 
              14,219,927  
                 
 
 
Hotels, Restaurants & Leisure 1.4%
CEC Entertainment, Inc.*
    60,786       2,143,314  
International Speedway Corp., Class A
    82,626       2,128,446  
Penn National Gaming, Inc.*
    81,015       1,871,447  
Royal Caribbean Cruises Ltd.* (a)
    21,142       481,403  
Speedway Motorsports, Inc.
    104,008       1,410,348  
                 
              8,034,958  
                 
 
 
Household Durables 1.5%
D.R. Horton, Inc.
    34,735       341,445  
Fortune Brands, Inc.
    62,166       2,435,664  
Garmin Ltd.
    89,800       2,620,364  
KB Home
    17,804       195,844  
Mohawk Industries, Inc.*
    17,916       819,836  
Pulte Group, Inc.*
    40,849       338,230  
Stanley Black & Decker, Inc.
    11,814       596,843  
Toll Brothers, Inc.*
    81,519       1,333,651  
                 
              8,681,877  
                 
 
 
Household Products 1.2%
Clorox Co.
    22,427       1,394,062  
Kimberly-Clark Corp.
    91,443       5,544,189  
                 
              6,938,251  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Independent Power Producers & Energy Traders 0.1%
NRG Energy, Inc.*
    36,500     $ 774,165  
                 
 
 
Industrial Conglomerates 0.8%
McDermott International, Inc.*
    117,850       2,552,631  
Tyco International Ltd.
    62,110       2,188,135  
                 
              4,740,766  
                 
 
 
Information Technology Services 3.4%
Accenture PLC, Class A
    33,051       1,277,421  
Automatic Data Processing, Inc.
    33,855       1,363,002  
Computer Sciences Corp.
    21,242       961,201  
Fidelity National Information Services, Inc.
    132,600       3,556,332  
Hewitt Associates, Inc., Class A*
    141,785       4,885,911  
Lender Processing Services, Inc.
    143,600       4,496,116  
SAIC, Inc.*
    215,900       3,614,166  
                 
              20,154,149  
                 
 
 
Insurance 10.0%
ACE Ltd.
    63,821       3,285,505  
Allstate Corp. (The)
    70,373       2,021,816  
Aon Corp.
    174,829       6,489,653  
Arch Capital Group Ltd.*
    35,300       2,629,850  
Assurant, Inc.
    47,067       1,633,225  
Axis Capital Holdings Ltd.
    45,056       1,339,064  
Chubb Corp.
    91,959       4,598,870  
Everest Re Group Ltd.
    25,511       1,804,138  
Hartford Financial Services Group, Inc.
    39,505       874,246  
HCC Insurance Holdings, Inc.
    332,733       8,238,469  
Lincoln National Corp.
    59,307       1,440,567  
Marsh & McLennan Cos., Inc.
    229,221       5,168,934  
PartnerRe Ltd.
    60,274       4,227,618  
Symetra Financial Corp.
    123,891       1,486,692  
Transatlantic Holdings, Inc.
    69,117       3,314,851  
Travelers Cos., Inc. (The)
    56,723       2,793,608  
Willis Group Holdings PLC
    80,356       2,414,698  
XL Capital Ltd., Class A
    290,637       4,653,098  
                 
              58,414,902  
                 
 
 
Internet & Catalog Retail 0.6%
Expedia, Inc.
    173,000       3,248,940  
                 
 
 
Leisure Equipment & Products 0.5%
Hasbro, Inc.
    53,255       2,188,781  
Mattel, Inc.
    38,351       811,507  
                 
              3,000,288  
                 
 
 
Life Sciences Tools & Services 0.4%
Life Technologies Corp.*
    38,949       1,840,340  
Pharmaceutical Product Development, Inc.
    10,428       264,976  
                 
              2,105,316  
                 
Machinery 3.4%
AGCO Corp.*
    50,812       1,370,400  
Altra Holdings, Inc.*
    161,611       2,104,175  
Dover Corp.
    7,777       325,001  
Eaton Corp.
    52,284       3,421,465  
Ingersoll-Rand PLC
    60,652       2,091,887  
Joy Global, Inc.
    32,100       1,607,889  
Kaydon Corp.
    112,717       3,703,881  
Manitowoc Co., Inc. (The)
    104,930       959,060  
Oshkosh Corp.*
    65,000       2,025,400  
Parker Hannifin Corp.
    27,319       1,515,112  
Robbins & Myers, Inc.
    43,323       941,842  
                 
              20,066,112  
                 
 
 
Media 1.1%
DreamWorks Animation SKG, Inc., Class A*
    44,000       1,256,200  
National CineMedia, Inc.
    94,250       1,570,205  
Omnicom Group Inc.
    49,659       1,703,303  
Regal Entertainment Group, Class A
    98,021       1,278,194  
Scholastic Corp.
    25,523       615,615  
                 
              6,423,517  
                 
 
 
Metals & Mining 1.1%
Cliffs Natural Resources Inc.
    13,068       616,287  
Freeport-McMoRan Copper & Gold, Inc.
    26,403       1,561,209  
Newmont Mining Corp.
    41,289       2,549,183  
Steel Dynamics, Inc.
    61,789       814,997  
United States Steel Corp.
    21,482       828,131  
                 
              6,369,807  
                 
 
 
Multiline Retail 0.5%
Dollar Tree, Inc.*
    20,700       861,741  
Macy’s, Inc.
    122,566       2,193,931  
                 
              3,055,672  
                 
 
 
Multi-Utilities 6.3%
CenterPoint Energy, Inc.
    347,500       4,573,100  
CMS Energy Corp.
    298,200       4,368,630  
DTE Energy Co.
    22,944       1,046,476  
NiSource, Inc.
    177,000       2,566,500  
OGE Energy Corp.
    67,800       2,478,768  
PG&E Corp.
    205,382       8,441,200  
Sempra Energy
    131,397       6,148,066  
Wisconsin Energy Corp.
    104,124       5,283,252  
Xcel Energy, Inc.
    85,287       1,757,765  
                 
              36,663,757  
                 
 
 
Oil, Gas & Consumable Fuels 5.4%
Alpha Natural Resources, Inc.*
    46,264       1,566,962  
Devon Energy Corp.
    40,990       2,497,111  
El Paso Corp.
    106,177       1,179,626  
Enbridge, Inc.
    96,743       4,508,224  
Exxon Mobil Corp.
    1       56  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Oil, Gas & Consumable Fuels (continued)
                 
Imperial Oil Ltd.
    174,385     $ 6,352,591  
Murphy Oil Corp.
    49,282       2,441,923  
Newfield Exploration Co.*
    28,955       1,414,741  
Noble Energy, Inc.
    20,442       1,233,266  
PAA Natural Gas Storage LP*
    18,077       430,775  
Petrohawk Energy Corp.*
    83,200       1,411,904  
Pioneer Natural Resources Co.
    28,048       1,667,454  
Southwestern Energy Co.*
    29,918       1,156,031  
Sunoco, Inc.
    14,638       508,963  
Ultra Petroleum Corp.*
    48,404       2,141,877  
Valero Energy Corp.
    30,766       553,173  
Whiting Petroleum Corp.*
    24,100       1,889,922  
Williams Pipeline Partners LP
    30,573       988,119  
                 
              31,942,718  
                 
 
 
Paper & Forest Products 0.7%
Louisiana-Pacific Corp.*
    82,147       549,563  
MeadWestvaco Corp.
    40,220       892,884  
Weyerhaeuser Co.
    77,020       2,711,104  
                 
              4,153,551  
                 
 
 
Pharmaceuticals 3.3%
Biovail Corp.
    141,900       2,730,156  
Forest Laboratories, Inc.*
    298,127       8,177,624  
King Pharmaceuticals, Inc.*
    347,600       2,638,284  
Mylan, Inc.* (a)
    255,524       4,354,129  
Watson Pharmaceuticals, Inc.*
    33,872       1,374,187  
                 
              19,274,380  
                 
 
 
Professional Services 0.1%
Towers Watson & Co., Class A
    19,700       765,345  
                 
 
 
Real Estate Investment Trusts (REITs) 4.4%
Annaly Capital Management, Inc.
    100,885       1,730,178  
AvalonBay Communities, Inc.
    9,529       889,723  
Boston Properties, Inc.
    18,888       1,347,470  
Equity Residential
    36,824       1,533,351  
Government Properties Income Trust
    71,489       1,824,399  
HCP, Inc.
    36,833       1,187,864  
Health Care REIT, Inc.
    78,700       3,314,844  
Host Hotels & Resorts, Inc.
    101,662       1,370,404  
MFA Financial, Inc.
    584,800       4,327,520  
Pebblebrook Hotel Trust*
    19,802       373,268  
Piedmont Office Realty Trust, Inc., Class A
    103,372       1,936,157  
ProLogis
    80,191       812,335  
Rayonier, Inc.
    91,500       4,027,830  
Ventas, Inc.
    27,205       1,277,275  
                 
              25,952,618  
                 
 
 
Real Estate Management & Development 0.3%
CB Richard Ellis Group, Inc., Class A*
    59,100       804,351  
St. Joe Co. (The)* (a)
    32,727       757,957  
                 
              1,562,308  
                 
Road & Rail 1.1%
Con-way, Inc.
    17,090       513,042  
CSX Corp.
    28,320       1,405,521  
Hertz Global Holdings, Inc.*
    126,500       1,196,690  
J.B. Hunt Transport Services, Inc.
    13,188       430,852  
Kansas City Southern*
    49,899       1,813,829  
Knight Transportation, Inc.
    12,705       257,149  
Landstar System, Inc.
    9,625       375,279  
Old Dominion Freight Line, Inc.*
    8,442       296,652  
Werner Enterprises, Inc.
    13,824       302,607  
                 
              6,591,621  
                 
 
 
Semiconductors & Semiconductor Equipment 2.2%
Applied Materials, Inc.
    298,873       3,592,453  
KLA-Tencor Corp.
    43,173       1,203,663  
LSI Corp.*
    807,618       3,715,043  
Microchip Technology, Inc. (a)
    40,866       1,133,623  
Micron Technology, Inc.*
    97,500       827,775  
Skyworks Solutions, Inc.*
    74,900       1,257,571  
Verigy Ltd.*
    138,534       1,203,861  
                 
              12,933,989  
                 
 
 
Software 1.7%
Adobe Systems, Inc.*
    58,531       1,546,974  
Autodesk, Inc.*
    50,644       1,233,688  
BMC Software, Inc.*
    57,522       1,991,987  
Cadence Design Systems, Inc.*
    173,166       1,002,631  
Check Point Software Technologies*
    67,325       1,984,741  
Symantec Corp.*
    91,500       1,270,020  
Synopsys, Inc.*
    47,448       990,240  
                 
              10,020,281  
                 
 
 
Specialty Retail 4.1%
Abercrombie & Fitch Co., Class A
    41,187       1,264,029  
Aeropostale, Inc.*
    142,150       4,071,176  
Bed Bath & Beyond, Inc.*
    12,421       460,571  
Lowe’s Cos., Inc.
    281,775       5,753,845  
PetSmart, Inc.
    75,374       2,274,034  
RadioShack Corp.
    98,800       1,927,588  
Ross Stores, Inc.
    47,700       2,541,933  
Staples, Inc.
    95,140       1,812,417  
TJX Cos., Inc.
    86,700       3,637,065  
                 
              23,742,658  
                 
 
 
Textiles, Apparel & Luxury Goods 0.5%
VF Corp.
    41,802       2,975,466  
                 
 
 
Thrifts & Mortgage Finance 1.1%
Hudson City Bancorp, Inc.
    149,993       1,835,915  
MGIC Investment Corp.*
    119,500       823,355  
Northwest Bancshares, Inc.
    91,190       1,045,949  
People’s United Financial, Inc.
    182,888       2,468,988  
                 
              6,174,207  
                 
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Tobacco 0.9%
Lorillard, Inc.
    76,383     $ 5,498,048  
                 
 
 
Trading Companies & Distributors 0.2%
W.W. Grainger, Inc.
    10,944       1,088,381  
                 
 
 
Wireless Telecommunication Services 0.2%
Sprint Nextel Corp.*
    317,730       1,347,175  
                 
         
Total Common Stocks (cost $591,207,498)
    578,142,332  
         
                 
                 
Mutual Fund 1.2%
 
Money Market Fund 1.2%
Invesco Liquid Assets Portfolio – Institutional Class, 0.21% (b)
    7,197,532       7,197,532  
                 
         
Total Mutual Fund (cost $7,197,532)
    7,197,532  
         
                 
                 
Repurchase Agreement 1.4%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Morgan Stanley, 0.03%, dated 6/30/10, due 7/1/10, repurchase price $8,148,441.54, collateralized by U.S. Government Agency Mortgages ranging 4.00% – 8.50%, maturing 3/1/15 – 6/1/40; total market value of $8,311,695.16 (c)
  $ 8,148,435       8,148,435  
                 
         
Total Repurchase Agreement (cost $8,148,435)
    8,148,435  
         
         
Total Investments (cost $606,553,465) (d) — 101.2%
    593,488,299  
         
Liabilities in excess of other assets — (1.2%)
    (7,208,174 )
         
         
NET ASSETS — 100.0%
  $ 586,280,125  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $7,876,446.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $8,148,435.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
LP Limited Partnership
 
Ltd. Limited
 
MX Mexico
 
NL Netherlands
 
NV Public Traded Company
 
NYRS New York Registry Shares
 
PLC Public Limited Company
 
REG Registered Shares
 
REIT Real Estate Investment Trust
 
SAB de CV Public Traded Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Mid Cap Value Fund (Continued)
 
 
At June 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Short Contracts:
                       
Canadian Dollar   Bank of America NA   7/30/10     (5,696,626 )   $ (5,502,817 )   $ (5,350,268 )   $ 152,549  
Long Contracts:
                       
Canadian Dollar   Bank of America NA   7/30/10     229,158     $ 216,850     $ 215,225     $ (1,625 )
 
 
 
10 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Mid Cap
 		 
      Value Fund  
       
Assets:
         
Investments, at value* (cost $598,405,030)
    $ 585,339,864  
Repurchase agreement, at value and cost
      8,148,435  
           
Total Investments
      593,488,299  
           
Dividends receivable
      1,119,435  
Security lending income receivable
      4,190  
Receivable for investments sold
      6,855,418  
Receivable for capital shares issued
      481,861  
Reclaims receivable
      5,008  
Unrealized appreciation on forward foreign currency contracts (Note 2)
      152,549  
Prepaid expenses and other assets
      6,766  
           
Total Assets
      602,113,526  
           
Liabilities:
         
Payable for investments purchased
      6,964,731  
Payable for capital shares redeemed
      194,679  
Unrealized depreciation on forward foreign currency contracts (Note 2)
      1,625  
Payable upon return of securities loaned (Note 2)
      8,148,435  
Accrued expenses and other payables:
         
Investment advisory fees
      350,279  
Fund administration fees
      20,150  
Distribution fees
      95,868  
Administrative servicing fees
      22,770  
Accounting and transfer agent fees
      5,576  
Trustee fees
      312  
Compliance program costs (Note 3)
      3,772  
Professional fees
      19,987  
Other
      5,217  
           
Total Liabilities
      15,833,401  
           
Net Assets
    $ 586,280,125  
           
Represented by:
         
Capital
    $ 598,997,174  
Accumulated undistributed net investment income
      1,365,715  
Accumulated net realized losses from investment and foreign currency transactions
      (1,172,954 )
Net unrealized appreciation/(depreciation) from investments
      (13,065,166 )
Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      150,925  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      4,431  
           
Net Assets
    $ 586,280,125  
           
Net Assets:
         
Class I Shares
    $ 9,007  
Class II Shares
      442,807,329  
Class Y Shares
      143,463,789  
           
Total
    $ 586,280,125  
           
*  Includes value of securities on loan of $7,876,446 (Note 2).
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statement of Assets and Liabilities (Continued)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Mid Cap
 		 
      Value Fund  
       
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      1,030  
Class II Shares
      50,654,129  
Class Y Shares
      16,406,787  
           
Total
      67,061,946  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.74  
Class II Shares
    $ 8.74  
Class Y Shares
    $ 8.74  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Mid Cap
 		 
      Value Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 6,511,655  
Income from securities lending (Note 2)
      40,022  
Foreign tax withholding
      (25,184 )
           
Total Income
      6,526,493  
           
EXPENSES:
         
Investment advisory fees
      2,333,293  
Fund administration fees
      116,910  
Distribution fees Class II Shares
      611,708  
Administrative servicing fees Class I Shares
      7  
Administrative servicing fees Class II Shares
      24,471  
Professional fees
      33,801  
Printing fees
      101,424  
Trustee fees
      10,903  
Custodian fees
      12,058  
Accounting and transfer agent fees
      5,726  
Compliance program costs (Note 3)
      1,262  
Other
      13,103  
           
Total expenses before earnings credit and expenses reimbursed
      3,264,666  
Earnings credit (Note 4)
      (46 )
Expenses reimbursed by adviser (Note 3)
      (108,898 )
           
Net Expenses
      3,155,722  
           
NET INVESTMENT INCOME
      3,370,771  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      39,259,770  
Net realized losses from forward and foreign currency transactions (Note 2)
      (17,742 )
           
Net realized gains from investment, forward foreign currency and foreign currency transactions
      39,242,028  
           
Net change in unrealized appreciation/(depreciation) from investments
      (66,711,659 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      90,344  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      2,373  
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (66,618,942 )
           
Net realized/unrealized losses from investments, forward foreign currency contracts, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (27,376,914 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (24,006,143 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager
 		 
      Mid Cap Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 3,370,771       $ 4,599,129  
Net realized gains/(losses) from investment and foreign currency transactions
      39,242,028         (12,748,996 )
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (66,618,942 )       105,914,718  
                     
Change in net assets resulting from operations
      (24,006,143 )       97,764,851  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (42 )       (97 )
Class II
      (1,844,002 )       (2,822,337 )
Class Y
      (718,427 )       (948,456 )
                     
Change in net assets from shareholder distributions
      (2,562,471 )       (3,770,890 )
                     
Change in net assets from capital transactions
      20,168,841         290,168,743  
                     
Change in net assets
      (6,399,773 )       384,162,704  
                     
                     
Net Assets:
                   
Beginning of period
      592,679,898         208,517,194  
                     
End of period
    $ 586,280,125       $ 592,679,898  
                     
Accumulated undistributed net investment income at end of period
    $ 1,365,715       $ 557,415  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ –       $ 8,307  
Dividends reinvested
      42         97  
Cost of shares redeemed
      –         (9,353 )
                     
Total Class I
      42         (949 )
                     
Class II Shares
                   
Proceeds from shares issued
      22,743,548         333,647,503  
Dividends reinvested
      1,844,002         2,822,337  
Cost of shares redeemed
      (42,113,004 )       (103,023,380 )
                     
Total Class II
      (17,525,454 )       233,446,460  
                     
Class Y Shares
                   
Proceeds from shares issued
      38,613,889         68,188,208  
Dividends reinvested
      718,427         948,456  
Cost of shares redeemed
      (1,638,063 )       (12,413,432 )
                     
Total Class Y
      37,694,253         56,723,232  
                     
Change in net assets from capital transactions
    $ 20,168,841       $ 290,168,743  
                     
 
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
 
14 Semiannual Report 2010

 

 
 
                     
      NVIT Multi-Manager
 		 
      Mid Cap Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      –         1,305  
Reinvested
      4         13  
Redeemed
      –         (1,649 )
                     
Total Class I Shares
      4         (331 )
                     
Class II Shares
                   
Issued
      2,433,425         41,021,876  
Reinvested
      193,381         341,569  
Redeemed
      (4,471,933 )       (13,655,677 )
                     
Total Class II Shares
      (1,845,127 )       27,707,768  
                     
Class Y Shares
                   
Issued
      4,119,205         9,048,084  
Reinvested
      75,433         119,189  
Redeemed
      (177,284 )       (1,483,536 )
                     
Total Class Y Shares
      4,017,354         7,683,737  
                     
Total change in shares
      2,172,231         35,391,174  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Mid Cap Value Fund
 
                                                                                                                                     
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                    Ratio of
 		         
                and
 		                                              Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                        Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
Class I Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .13       0 .05       (0 .40)       (0 .35)       (0 .04)       (0 .04)     $ 8 .74       (3 .86%)     $ 9,007         0 .96%       1 .13%       1 .00%       58 .26%    
Year Ended December 31, 2009 (e)
  $ 7 .07       0 .13       2 .03       2 .16       (0 .10)       (0 .10)     $ 9 .13       30 .76%     $ 9,371         0 .91%       1 .70%       0 .95%       224 .72%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .11       (2 .94)       (2 .83)       (0 .10)       (0 .10)     $ 7 .07       (28 .35%)     $ 9,595         0 .81%       1 .58%       0 .99%       114 .39%    
                                                                                                                                     
Class II Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .13       0 .05       (0 .40)       (0 .35)       (0 .04)       (0 .04)     $ 8 .74       (3 .91%)     $ 442,807,329         1 .07%       1 .02%       1 .10%       58 .26%    
Year Ended December 31, 2009 (e)
  $ 7 .07       0 .11       2 .03       2 .14       (0 .08)       (0 .08)     $ 9 .13       30 .47%     $ 479,483,845         1 .08%       1 .35%       1 .11%       224 .72%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .10       (2 .94)       (2 .84)       (0 .09)       (0 .09)     $ 7 .07       (28 .50%)     $ 175,240,571         1 .15%       1 .47%       1 .21%       114 .39%    
                                                                                                                                     
Class Y Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .14       0 .06       (0 .41)       (0 .35)       (0 .05)       (0 .05)     $ 8 .74       (3 .90%)     $ 143,463,789         0 .81%       1 .32%       0 .85%       58 .26%    
Year Ended December 31, 2009 (e)
  $ 7 .07       0 .13       2 .04       2 .17       (0 .10)       (0 .10)     $ 9 .14       30 .90%     $ 113,186,682         0 .82%       1 .62%       0 .85%       224 .72%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .13       (2 .96)       (2 .83)       (0 .10)       (0 .10)     $ 7 .07       (28 .35%)     $ 33,267,028         0 .81%       1 .95%       0 .96%       114 .39%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Mid Cap Value Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
  $ 578,142,332     $ —     $ —     $ 578,142,332      
Forward Foreign Currency Contracts
    —       152,549       —       152,549      
Mutual Fund
    7,197,532       —       —       7,197,532      
Repurchase Agreement
    —       8,148,435       —       8,148,435      
 
 
Total Assets
    585,339,864       8,300,984       —       593,640,848      
 
 
Liabilities:
                                   
Forward Foreign Currency Contracts
    —       (1,625 )     —       (1,625 )    
 
 
Total Liabilities
    —       (1,625 )     —       (1,625 )    
 
 
Total
  $ 585,339,864     $ 8,299,359     $ —     $ 593,639,223      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are
 
 
 
18 Semiannual Report 2010

 

 
 
translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) on forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from forward and foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
             
Statement of Assets & Liabilities Location   Fair Value
 
Assets:
           
 
 
Forward Foreign currency contracts
  Receivables — Unrealized appreciation from forward foreign currency contracts   $ 152,549  
 
 
Total
      $ 152,549  
 
 
Liabilities:
           
 
 
Forward Foreign currency contracts
  Payables — Unrealized depreciation from forward foreign currency contracts   $ (1,625 )
 
 
Total
      $ (1,625 )
 
 
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total      
 
    Forward Foreign currency contracts   $ (17,742 )    
 
 
    Total   $ (17,742 )    
 
 
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total      
 
    Forward Foreign currency contracts   $ 90,344      
 
 
    Total   $ 90,344      
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the
 
 
 
20 Semiannual Report 2010

 

 
 
collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 7,876,446     $ 8,148,435      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
     
Subadvisers    
 
American Century Investment Management, Inc.
   
 
 
Columbia Management Investment Advisors, LLC (formerly RiverSource Investments, LLC)
   
 
 
Thomson, Siegel & Walmsley LLC
   
 
 
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.75%      
 
 
    $1 billion and more     0.73%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.75%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers $1,399,976 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.81% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
 
 
22 Semiannual Report 2010

 

 
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 82,427     $ 98,217     $ 108,898     $ 289,542      
 
 
(a) For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $24,478 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,262.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $372,401,958 and sales of $351,609,242 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry
 
 
 
24 Semiannual Report 2010

 

 
 
risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 614,970,082     $ 24,713,261     $ (46,195,044)     $ (21,481,783)      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 25

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft
 
 
 
26 Semiannual Report 2010

 

 
 
dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Mid Cap Value Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., American Century Investment Management, Inc. (“American Century”), RiverSource Investments, LLC (“RiverSource”), and Thompson Siegel & Walmsley LLC (“Thompson”)) and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the third quintile and below the median of its Peer Group. The Trustees also noted that, for the same period, the Fund had outperformed its benchmark, the Russell Mid Cap Value Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration American Century, RiverSource, and Thompson’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of each sub-adviser.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the fourth quintile of its Peer Group. The Trustees also noted that the Fund’s actual advisory fee and total expenses for Class II shares were in the second quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 27

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 31

 

 
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NVIT Multi-Manager Small Cap Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
9
   
Statement of Operations
       
10
   
Statements of Changes in Net Assets
       
12
   
Financial Highlights
       
13
   
Notes to Financial Statements
       
20
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-SCG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Small Cap Growth Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager Small
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Cap Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       963.40       5.94       1.22  
      Hypothetical b     1,000.00       1,018.74       6.11       1.22  
 
 
Class II Shares
    Actual       1,000.00       962.70       7.15       1.47  
      Hypothetical b     1,000.00       1,017.50       7.35       1.47  
 
 
Class III Shares
    Actual       1,000.00       963.20       5.89       1.21  
      Hypothetical b     1,000.00       1,018.79       6.06       1.21  
 
 
Class Y Shares
    Actual       1,000.00       964.30       5.21       1.07  
      Hypothetical b     1,000.00       1,019.49       5.36       1.07  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Small Cap Growth Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    93 .6%
Mutual Fund
    5 .4%
Exchange Traded Fund
    1 .9%
Liabilities in excess of other assets
    (0 .9%)
         
      100 .0%
         
Top Industries †    
 
Software
    10 .0%
Health Care Providers & Services
    5 .9%
Semiconductors & Semiconductor Equipment
    5 .1%
Health Care Equipment & Supplies
    5 .1%
Internet Software & Services
    4 .5%
Communications Equipment
    4 .4%
Specialty Retail
    4 .3%
Textiles, Apparel & Luxury Goods
    3 .8%
Hotels, Restaurants & Leisure
    3 .5%
Diversified Consumer Services
    3 .4%
Other Industries
    50 .0%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    5 .4%
LKQ Corp. 
    2 .0%
iShares Russell 2000 Growth Index Fund
    1 .9%
Capella Education Co. 
    1 .7%
Core Laboratories NV
    1 .5%
NuVasive, Inc. 
    1 .5%
MICROS Systems, Inc. 
    1 .5%
O’Reilly Automotive, Inc. 
    1 .4%
HMS Holdings Corp. 
    1 .4%
Volcano Corp. 
    1 .3%
Other Holdings
    80 .4%
         
      100 .0%
 
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Growth Fund
 
                 
                 
Common Stocks 93.6%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 1.5%
Aerovironment, Inc.*
    17,000     $ 369,410  
BE Aerospace, Inc.*
    24,170       614,643  
TransDigm Group, Inc.
    9,360       477,641  
                 
              1,461,694  
                 
 
 
Air Freight & Logistics 0.8%
Atlas Air Worldwide Holdings, Inc.*
    16,730       794,675  
                 
 
 
Airlines 0.4%
Alaska Air Group, Inc.*
    7,920       356,004  
                 
 
 
Biotechnology 2.2%
Alexion Pharmaceuticals, Inc.*
    22,700       1,162,013  
Cepheid, Inc.*
    21,920       351,158  
United Therapeutics Corp.*
    11,440       558,387  
                 
              2,071,558  
                 
 
 
Capital Markets 2.2%
Evercore Partners, Inc., Class A
    13,520       315,692  
Greenhill & Co., Inc.
    14,800       904,724  
Stifel Financial Corp.*
    12,700       551,053  
Waddell & Reed Financial, Inc., Class A
    12,820       280,502  
                 
              2,051,971  
                 
 
 
Chemicals 1.0%
Intrepid Potash, Inc.*
    19,740       386,312  
Solutia, Inc.*
    44,940       588,714  
                 
              975,026  
                 
 
 
Commercial Banks 1.6%
East West Bancorp, Inc.
    38,860       592,615  
Signature Bank*
    15,590       592,576  
Texas Capital Bancshares, Inc.*
    20,070       329,148  
                 
              1,514,339  
                 
 
 
Commercial Services & Supplies 0.7%
Clean Harbors, Inc.*
    6,060       402,445  
Waste Connections, Inc.*
    8,460       295,169  
                 
              697,614  
                 
 
 
Communications Equipment 4.5%
Acme Packet, Inc.*
    35,640       958,003  
Aruba Networks, Inc.*
    57,390       817,234  
DG FastChannel, Inc.*
    15,470       504,013  
Riverbed Technology, Inc.*
    45,810       1,265,272  
SBA Communications Corp., Class A*
    21,310       724,753  
                 
              4,269,275  
                 
 
 
Computers & Peripherals 1.4%
Netezza Corp.*
    43,130       590,018  
Stratasys, Inc.*
    30,560       750,554  
                 
              1,340,572  
                 
Containers & Packaging 0.6%
Rock-Tenn Co., Class A
    12,210       606,471  
                 
 
 
Distributors 2.1%
LKQ Corp.*
    101,178       1,950,712  
                 
 
 
Diversified Consumer Services 3.4%
American Public Education, Inc.*
    5,350       233,795  
Capella Education Co.*
    20,150       1,639,203  
Sotheby’s
    19,720       450,996  
Strayer Education, Inc.
    4,600       956,294  
                 
              3,280,288  
                 
 
 
Diversified Financial Services 1.6%
CBOE Holdings, Inc.*
    5,260       171,213  
MSCI, Inc., Class A*
    10,500       287,700  
Portfolio Recovery Associates, Inc.*
    16,100       1,075,158  
                 
              1,534,071  
                 
 
 
Electrical Equipment 2.9%
Baldor Electric Co.
    15,570       561,766  
General Cable Corp.*
    30,100       802,165  
Harbin Electric, Inc.*
    24,980       415,917  
Polypore International, Inc.*
    14,910       339,053  
Regal-Beloit Corp.
    11,940       666,013  
                 
              2,784,914  
                 
 
 
Electronic Equipment, Instruments & Components 0.9%
DTS, Inc.*
    18,500       608,095  
Plexus Corp.*
    9,500       254,030  
                 
              862,125  
                 
 
 
Energy Equipment & Services 3.4%
Core Laboratories NV
    10,010       1,477,576  
Dresser-Rand Group, Inc.*
    29,500       930,725  
Dril-Quip, Inc.*
    18,500       814,370  
                 
              3,222,671  
                 
 
 
Food Products 2.0%
Diamond Foods, Inc.
    20,140       827,754  
Sanderson Farms, Inc.
    6,020       305,455  
TreeHouse Foods, Inc.*
    16,730       763,892  
                 
              1,897,101  
                 
 
 
Health Care Equipment & Supplies 5.2%
DexCom, Inc.*
    21,980       254,089  
Masimo Corp.
    20,700       492,867  
Neogen Corp.*
    2,370       61,738  
NuVasive, Inc.*
    41,400       1,468,044  
Sirona Dental Systems, Inc.*
    18,290       637,224  
Thoratec Corp.*
    16,980       725,555  
Volcano Corp.*
    59,530       1,298,945  
                 
              4,938,462  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Growth Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Health Care Providers & Services 6.0%
Bio-Reference Labs, Inc.*
    24,130     $ 534,962  
Catalyst Health Solutions, Inc.*
    16,890       582,705  
Emergency Medical Services Corp., Class A*
    13,630       668,279  
Hanger Orthopedic Group, Inc.*
    27,140       487,434  
Health Management Associates, Inc., Class A *
    84,810       658,974  
Healthways, Inc.*
    31,330       373,454  
HMS Holdings Corp.*
    24,510       1,328,932  
IPC The Hospitalist Co., Inc.*
    23,200       582,320  
MEDNAX, Inc.*
    8,100       450,441  
                 
              5,667,501  
                 
 
 
Health Care Technology 1.9%
athenahealth, Inc.*
    7,100       185,523  
MedAssets, Inc.*
    19,330       446,136  
Omnicell, Inc.*
    31,650       369,989  
SXC Health Solutions Corp.*
    11,450       838,712  
                 
              1,840,360  
                 
 
 
Hotels, Restaurants & Leisure 3.5%
Cheesecake Factory, Inc. (The)*
    24,030       534,908  
Chipotle Mexican Grill, Inc.*
    5,000       684,050  
Gaylord Entertainment Co.*
    19,750       436,278  
Orient-Express Hotels Ltd., Class A*
    23,670       175,158  
Panera Bread Co., Class A*
    9,960       749,888  
Scientific Games Corp., Class A*
    37,150       341,780  
Vail Resorts, Inc.*
    12,150       424,156  
                 
              3,346,218  
                 
 
 
Information Technology Services 0.3%
Sapient Corp.
    29,160       295,682  
                 
 
 
Internet Software & Services 4.6%
Archipelago Learning, Inc.*
    32,200       368,046  
Constant Contact, Inc.*
    26,450       564,179  
DealerTrack Holdings, Inc.*
    67,500       1,110,375  
GSI Commerce, Inc.*
    34,960       1,006,848  
OpenTable, Inc.*
    7,700       319,319  
VistaPrint NV*
    9,660       458,753  
Vocus, Inc.*
    13,850       211,628  
WebMD Health Corp.*
    6,480       300,866  
                 
              4,340,014  
                 
 
 
Life Sciences Tools & Services 0.5%
Bruker Corp.*
    37,580       456,973  
                 
 
 
Machinery 3.3%
Chart Industries, Inc.*
    16,650       259,407  
Gardner Denver, Inc.
    10,540       469,979  
Graco, Inc.
    44,140       1,244,307  
Wabtec Corp.
    30,050       1,198,694  
                 
              3,172,387  
                 
Media 1.7%
Cinemark Holdings, Inc.
    25,500       335,325  
Imax Corp.*
    30,620       447,052  
Valassis Communications, Inc.*
    26,040       825,989  
                 
              1,608,366  
                 
 
 
Metals & Mining 0.1%
Thompson Creek Metals Co., Inc.*
    14,780       128,290  
                 
 
 
Oil Field Equipment & Services 0.3%
Superior Energy Services, Inc.*
    13,290       248,124  
                 
 
 
Oil, Gas & Consumable Fuels 2.0%
Bill Barrett Corp.*
    7,800       240,006  
Brigham Exploration Co.*
    30,540       469,705  
Concho Resources, Inc.*
    18,180       1,005,899  
Oasis Petroleum, Inc.*
    12,700       184,150  
                 
              1,899,760  
                 
 
 
Personal Products 1.7%
Alberto-Culver Co.
    43,100       1,167,579  
Elizabeth Arden, Inc.*
    17,300       251,196  
Nu Skin Enterprises, Inc., Class A
    9,660       240,824  
                 
              1,659,599  
                 
 
 
Pharmaceuticals 1.5%
Eurand NV*
    25,810       250,099  
Impax Laboratories, Inc.*
    26,200       499,372  
Salix Pharmaceuticals Ltd.*
    18,030       703,711  
                 
              1,453,182  
                 
 
 
Professional Services 1.4%
CoStar Group, Inc.*
    16,800       651,840  
Kforce, Inc.*
    23,690       302,047  
TrueBlue, Inc.*
    37,540       420,073  
                 
              1,373,960  
                 
 
 
Real Estate Investment Trusts (REITs) 0.3%
LaSalle Hotel Properties
    14,320       294,562  
                 
 
 
Real Estate Management & Development 0.6%
Jones Lang LaSalle, Inc.
    8,380       550,063  
                 
 
 
Road & Rail 1.3%
J.B. Hunt Transport Services, Inc.
    23,650       772,646  
Kansas City Southern*
    7,650       278,077  
Knight Transportation, Inc.
    9,950       201,388  
                 
              1,252,111  
                 
 
 
Semiconductors & Semiconductor Equipment 5.2%
Applied Micro Circuits Corp.*
    38,890       407,567  
Atheros Communications, Inc.*
    22,180       610,837  
Cavium Networks, Inc.*
    27,720       725,987  
Cypress Semiconductor Corp.*
    43,720       438,949  
Netlogic Microsystems, Inc.*
    21,630       588,336  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Semiconductors & Semiconductor Equipment (continued)
                 
OmniVision Technologies, Inc.*
    16,190     $ 347,113  
Rubicon Technology, Inc.*
    13,200       393,228  
Semtech Corp.*
    38,600       631,882  
Silicon Laboratories, Inc.*
    7,030       285,137  
Veeco Instruments, Inc.*
    14,950       512,486  
                 
              4,941,522  
                 
 
 
Software 10.1%
Ariba, Inc.*
    18,120       288,652  
Blackbaud, Inc.
    28,350       617,179  
Blackboard, Inc.*
    12,850       479,691  
CommVault Systems, Inc.*
    40,900       920,250  
Concur Technologies, Inc.*
    24,250       1,034,990  
EPIQ Systems, Inc.*
    25,915       335,081  
FactSet Research Systems, Inc.
    13,475       902,690  
Informatica Corp.*
    19,930       475,928  
MICROS Systems, Inc.*
    43,750       1,394,312  
Pegasystems, Inc.
    20,680       664,035  
Rosetta Stone, Inc.*
    23,784       546,081  
SolarWinds, Inc.*
    23,200       372,128  
Sourcefire, Inc.*
    26,610       505,590  
SS&C Technologies Holdings, Inc.*
    11,280       180,818  
SuccessFactors, Inc.*
    42,700       887,733  
                 
              9,605,158  
                 
 
 
Specialty Retail 4.3%
Lumber Liquidators Holdings, Inc.*
    22,520       525,392  
Monro Muffler Brake, Inc.
    10,990       434,435  
O’Reilly Automotive, Inc.*
    28,500       1,355,460  
Rue21, Inc.*
    17,240       523,061  
Talbots, Inc.*
    29,290       301,980  
Ulta Salon Cosmetics & Fragrance, Inc.*
    14,620       345,909  
Zumiez, Inc.*
    38,470       619,752  
                 
              4,105,989  
                 
 
 
Steel Producers/Products 0.3%
Schnitzer Steel Industries, Inc., Class A
    8,010       313,992  
                 
 
 
Textiles, Apparel & Luxury Goods 3.9%
Columbia Sportswear Co.
    7,800       364,026  
G-III Apparel Group Ltd.*
    14,100       322,749  
Lululemon Athletica, Inc.*
    12,710       473,066  
Phillips-Van Heusen Corp.
    6,370       294,740  
Skechers U.S.A., Inc., Class A*
    11,340       414,137  
Steven Madden Ltd.*
    22,890       721,493  
Under Armour, Inc., Class A*
    32,800       1,086,664  
                 
              3,676,875  
                 
Trading Companies & Distributors 0.4%
TAL International Group, Inc.
    16,270       365,587  
                 
         
Total Common Stocks (cost $83,213,736)
    89,205,818  
         
                 
                 
Exchange Traded Fund 1.9%
                 
                 
Equity Fund 1.9%
iShares Russell 2000 Growth Index Fund
    27,300       1,817,634  
                 
         
Total Exchange Traded Fund
(cost $1,794,014)
    1,817,634  
         
                 
                 
Mutual Fund 5.4%
                 
                 
Money Market Fund 5.4%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    5,156,370       5,156,370  
                 
         
Total Mutual Fund (cost $5,156,369)
    5,156,370  
         
         
Total Investments
(cost $90,164,119) (b) — 100.9%
    96,179,822  
         
Liabilities in excess of other assets — (0.9%)
    (897,479 )
         
         
NET ASSETS — 100.0%
  $ 95,282,343  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
Ltd. Limited
 
NV Public Traded Company
 
REIT Real Estate Investment Trust
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Small Cap
 		 
      Growth Fund  
       
Assets:
         
Investments, at value (cost $90,164,119)
    $ 96,179,822  
Dividends receivable
      5,960  
Receivable for investments sold
      1,137,012  
Receivable for capital shares issued
      128,049  
Prepaid expenses and other assets
      3,915  
           
Total Assets
      97,454,758  
           
Liabilities:
         
Payable for investments purchased
      1,808,704  
Payable for capital shares redeemed
      161,646  
Accrued expenses and other payables:
         
Investment advisory fees
      77,834  
Fund administration fees
      9,751  
Distribution fees
      2,592  
Administrative servicing fees
      58,773  
Accounting and transfer agent fees
      2,447  
Custodian fees
      180  
Compliance program costs (Note 3)
      463  
Professional fees
      8,757  
Printing fees
      41,183  
Other
      85  
           
Total Liabilities
      2,172,415  
           
Net Assets
    $ 95,282,343  
           
Represented by:
         
Capital
    $ 124,968,878  
Accumulated net investment loss
      (492,705 )
Accumulated net realized losses from investment transactions
      (35,209,533 )
Net unrealized appreciation/(depreciation) from investments
      6,015,703  
           
Net Assets
    $ 95,282,343  
           
Net Assets:
         
Class I Shares
    $ 44,672,272  
Class II Shares
      11,903,429  
Class III Shares
      238,863  
Class Y Shares
      38,467,779  
           
Total
    $ 95,282,343  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      3,769,995  
Class II Shares
      1,024,945  
Class III Shares
      20,262  
Class Y Shares
      3,234,046  
           
Total
      8,049,248  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 11.85  
Class II Shares
    $ 11.61  
Class III Shares
    $ 11.79  
Class Y Shares
    $ 11.89  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      Small Cap
 		 
    Growth Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 94,735  
Foreign tax withholding
      (227 )
           
Total Income
      94,508  
           
EXPENSES:
         
Investment advisory fees
      467,073  
Fund administration fees
      31,650  
Distribution fees Class II Shares
      16,226  
Administrative servicing fees Class I Shares
      37,092  
Administrative servicing fees Class II Shares
      9,735  
Administrative servicing fees Class III Shares
      181  
Professional fees
      10,763  
Printing fees
      4,902  
Trustee fees
      1,743  
Custodian fees
      2,650  
Accounting and transfer agent fees
      1,797  
Compliance program costs (Note 3)
      188  
Other
      3,267  
           
Total expenses before earnings credits
      587,267  
Earnings credit (Note 5)
      (54 )
           
Net Expenses
      587,213  
           
NET INVESTMENT LOSS
      (492,705 )
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      7,457,453  
Net change in unrealized appreciation/(depreciation) from investments
      (10,815,188 )
           
Net realized/unrealized losses from investments
      (3,357,735 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (3,850,440 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statements of Changes in Net Assets
                     
      NVIT Multi-Manager
 		 
      Small Cap Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment loss
    $ (492,705 )     $ (771,530 )
Net realized gains/(losses) from investment transactions
      7,457,453         (8,613,277 )
Net change in unrealized appreciation/(depreciation) from investments
      (10,815,188 )       29,033,495  
                     
Change in net assets resulting from operations
      (3,850,440 )       19,648,688  
                     
                     
Distributions to Shareholders From:
                   
Change in net assets from capital transactions
      5,114,060         7,713,514  
                     
Change in net assets
      1,263,620         27,362,202  
                     
                     
Net Assets:
                   
Beginning of period
      94,018,723         66,656,521  
                     
End of period
    $ 95,282,343       $ 94,018,723  
                     
Accumulated undistributed net investment loss at end of period
    $ (492,705 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 1,603,126       $ 11,288,075  
Cost of shares redeemed
      (5,747,950 )       (18,648,525 )
                     
Total Class I
      (4,144,824 )       (7,360,450 )
                     
Class II Shares
                   
Proceeds from shares issued
      838,293         1,641,838  
Cost of shares redeemed
      (1,713,303 )       (1,987,873 )
                     
Total Class II
      (875,010 )       (346,035 )
                     
Class III Shares
                   
Proceeds from shares issued
      28,438         129,899  
Cost of shares redeemed
      (32,511 )       (197,078 )
                     
Total Class III
      (4,073 )       (67,179 )
                     
Class Y Shares
                   
Proceeds from shares issued
      10,571,503         17,845,777  
Cost of shares redeemed
      (433,536 )       (2,358,599 )
                     
Total Class Y
      10,137,967         15,487,178  
                     
Change in net assets from capital transactions
    $ 5,114,060       $ 7,713,514  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      125,454         1,193,778  
Redeemed
      (456,643 )       (1,955,143 )
                     
Total Class I Shares
      (331,189 )       (761,365 )
                     
Class II Shares
                   
Issued
      67,897         166,761  
Redeemed
      (138,436 )       (207,296 )
                     
Total Class II Shares
      (70,539 )       (40,535 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
10 Semiannual Report 2010

 

 
 
                     
      NVIT Multi-Manager
 		 
      Small Cap Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class III Shares
                   
Issued
      2,395         12,979  
Redeemed
      (2,450 )       (18,518 )
                     
Total Class III Shares
      (55 )       (5,539 )
                     
Class Y Shares
                   
Issued
      830,959         1,740,216  
Redeemed
      (34,972 )       (205,904 )
                     
Total Class Y Shares
      795,987         1,534,312  
                     
Total change in shares
      394,204         726,873  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Small Cap Growth Fund
 
                                                                                                                                     
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                    Ratio of
 		         
                and
 		                                              Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                        Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Loss
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Loss     Investments     Operations     Income     Distributions     of Period     Return (a)     of Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .30       (0 .06)       (0 .39)       (0 .45)       –          –        $ 11 .85       (3 .66%)     $ 44,672,272         1 .22%       (1 .03%)       1 .22%       56 .66%    
Year Ended December 31, 2009 (e)
  $ 9 .65       (0 .10)       2 .75       2 .65       –          –        $ 12 .30       27 .46%     $ 50,456,742         1 .28%       (1 .02%)       1 .28%       115 .90%    
Year Ended December 31, 2008
  $ 18 .01       (0 .08)       (8 .28)       (8 .36)       –          –        $ 9 .65       (46 .42%)     $ 46,899,774         1 .26%       (0 .50%)       1 .26%       103 .33%    
Year Ended December 31, 2007
  $ 16 .41       (0 .16)       1 .76       1 .60       –          –        $ 18 .01       9 .75%     $ 108,218,694         1 .22%       (0 .83%)       1 .22%       63 .09%    
Year Ended December 31, 2006
  $ 15 .90       (0 .14)       0 .65       0 .51       –          –        $ 16 .41       3 .21%     $ 123,771,355         1 .25%       (0 .81%)       1 .25%       58 .45%    
Year Ended December 31, 2005
  $ 14 .71       (0 .13)       1 .32       1 .19       –          –        $ 15 .90       8 .09%     $ 141,684,344         1 .22%       (0 .83%)       1 .22%       58 .28%    
                                                                                                                                     
Class II Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .07       (0 .08)       (0 .38)       (0 .46)       –          –        $ 11 .61       (3 .73%)     $ 11,903,429         1 .47%       (1 .28%)       1 .47%       56 .66%    
Year Ended December 31, 2009 (e)
  $ 9 .49       (0 .13)       2 .71       2 .58       –          –        $ 12 .07       27 .19%     $ 13,225,952         1 .53%       (1 .28%)       1 .53%       115 .90%    
Year Ended December 31, 2008
  $ 17 .75       (0 .14)       (8 .12)       (8 .26)       –          –        $ 9 .49       (46 .54%)     $ 10,778,869         1 .52%       (0 .78%)       1 .52%       103 .33%    
Year Ended December 31, 2007
  $ 16 .21       (0 .13)       1 .67       1 .54       –          –        $ 17 .75       9 .50%     $ 31,237,254         1 .47%       (1 .07%)       1 .47%       63 .09%    
Year Ended December 31, 2006
  $ 15 .74       (0 .18)       0 .65       0 .47       –          –        $ 16 .21       2 .99%     $ 19,047,491         1 .51%       (1 .07%)       1 .51%       58 .45%    
Year Ended December 31, 2005
  $ 14 .61       (0 .14)       1 .27       1 .13       –          –        $ 15 .74       7 .73%     $ 19,521,332         1 .46%       (1 .08%)       1 .46%       58 .28%    
                                                                                                                                     
Class III Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .24       (0 .06)       (0 .39)       (0 .45)       –          –        $ 11 .79       (3 .68%)     $ 238,863         1 .21%       (1 .02%)       1 .21%       56 .66%    
Year Ended December 31, 2009 (e)
  $ 9 .59       (0 .10)       2 .75       2 .65       –          –        $ 12 .24       27 .63%     $ 248,694         1 .28%       (1 .04%)       1 .28%       115 .90%    
Year Ended December 31, 2008
  $ 17 .91       (0 .08)       (8 .24)       (8 .32)       –          –        $ 9 .59       (46 .45%)     $ 248,071         1 .24%       (0 .50%)       1 .24%       103 .33%    
Year Ended December 31, 2007
  $ 16 .31       (0 .15)       1 .75       1 .60       –          –        $ 17 .91       9 .81%     $ 612,597         1 .20%       (0 .80%)       1 .20%       63 .09%    
Year Ended December 31, 2006
  $ 15 .80       (0 .16)       0 .67       0 .51       –          –        $ 16 .31       3 .23%     $ 666,901         1 .24%       (0 .80%)       1 .24%       58 .45%    
Year Ended December 31, 2005
  $ 14 .63       (0 .14)       1 .31       1 .17       –          –        $ 15 .80       8 .00%     $ 832,688         1 .23%       (0 .84%)       1 .23%       58 .28%    
                                                                                                                                     
Class Y Shares
                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .34       (0 .06)       (0 .39)       (0 .45)       –          –        $ 11 .89       (3 .57%)     $ 38,467,779         1 .07%       (0 .87%)       1 .07%       56 .66%    
Year Ended December 31, 2009 (e)
  $ 9 .66       (0 .09)       2 .77       2 .68       –          –        $ 12 .34       27 .74%     $ 30,087,335         1 .12%       (0 .88%)       1 .12%       115 .90%    
Period Ended December 31, 2008 (f)
  $ 14 .36       –          (4 .70)       (4 .70)       –          –        $ 9 .66       (32 .73%)     $ 8,729,807         1 .20%       (0 .09%)       1 .20%       103 .33%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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)  For the period from March 27, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Small Cap Growth Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
on which such securities trades that materially affect the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
 
 
Common Stocks
  $ 89,205,818     $ —     $ —     $ 89,205,818      
 
 
Exchange Traded Fund
    1,817,634       —       —       1,817,634      
 
 
Mutual Fund
    5,156,370       —       —       5,156,370      
 
 
Total Assets
  $ 96,179,822     $ —     $ —     $ 96,179,822      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more
 
 
 
14 Semiannual Report 2010

 

 
 
repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty. As of June 30, 2010, the Fund did not hold any repurchase agreements.
 
(c)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(d)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments. As of June 30, 2010, the Fund did not have any securities out on loan.
 
(e)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(f)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Beginning with the 2006 annual financial statements, the 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. The Fund undertakes 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(g)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
         
Subadvisers    
 
Waddell & Reed Investment Management Company
       
 
 
Oppenheimer Funds, Inc.
       
 
 
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.95%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers $293,119 for the six months ended June 30, 2010.
 
Beginning May 1, 2010, the Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 1.13% for all share classes until at least April 30, 2011.
 
 
 
16 Semiannual Report 2010

 

 
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees.
 
As of June 30, 2010, the Fund had no cumulative potential reimbursements.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II, and Class III shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $47,008 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $188.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had no contributions to capital due to the collection of redemption fees.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $151.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any
 
 
 
18 Semiannual Report 2010

 

 
 
offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $58,275,316 and sales of $52,221,165 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
    Unrealized
 		  Unrealized
 		  Net Unrealized
 		   
Tax Cost of Securities   Appreciation   Depreciation   Appreciation/(Depreciation)    
 
$ 90,549,505     $ 11,616,606     $ (5,986,289 )   $ 5,630,317      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 19

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
20 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Small Cap Growth Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., OppenheimerFunds, Inc. (“Oppenheimer”) and Waddell & Reed Investment Management Company) and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning first to performance, the Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group, while for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fourth quintile of its Peer Group. The Trustees noted that, for each period, the Fund underperformed its benchmark, the Russell 2000 Growth Index. The Trustees noted that the Fund’s underperformance was attributable in part to the sleeve managed by Oberweis Asset Management, Inc., who had been terminated in January 2009. The Trustees also noted that the sleeve managed by Oppenheimer has been on the watch list since the third quarter of 2009. The Trustees noted that Oppenheimer’s performance had improved over recent periods and that, for the quarter ended December 31, 2009, its sleeve had exceeded the Fund’s benchmark by 365 basis points.
 
The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the fifth quintile of its Peer Group. The Trustees then noted that the Fund’s actual advisory fee was in the fourth quintile of its Peer Universe. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds, also noting that the Fund had experienced a loss of assets. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the Fund invests in a capacity-constrained asset class, which necessarily limits profitability.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

 

NVIT Multi-Manager Small Cap Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
14
   
Statement of Assets and Liabilities
       
16
   
Statement of Operations
       
17
   
Statements of Changes in Net Assets
       
19
   
Financial Highlights
       
21
   
Notes to Financial Statements
       
30
   
Supplemental Information
       
32
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-SCV (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
This page intentionally left blank
 

 

Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Small Cap Value Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Small Cap Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a   01/01/10 - 06/30/10a
 
Class I Shares
    Actual       1,000.00       987.00       5.47       1.11  
      Hypothetical b     1,000.00       1,019.29       5.56       1.11  
 
 
Class II Shares
    Actual       1,000.00       986.20       6.70       1.36  
      Hypothetical b     1,000.00       1,018.05       6.81       1.36  
 
 
Class III Shares
    Actual       1,000.00       987.00       5.52       1.12  
      Hypothetical b     1,000.00       1,019.24       5.61       1.12  
 
 
Class IV Shares
    Actual       1,000.00       987.00       5.47       1.11  
      Hypothetical b     1,000.00       1,019.29       5.56       1.11  
 
 
Class Y Shares
    Actual       1,000.00       987.30       4.73       0.96  
      Hypothetical b     1,000.00       1,020.03       4.81       0.96  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Small Cap Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .7%
Repurchase Agreement
    4 .0%
Mutual Fund
    2 .4%
U. S. Government Sponsored & Agency Obligation
    0 .2%
Liabilities in excess of other assets
    (4 .3%)
         
      100 .0%
         
Top Industries †    
 
Commercial Banks
    8 .0%
Machinery
    5 .4%
Insurance
    5 .0%
Real Estate Investment Trusts (REITs)
    4 .8%
Software
    3 .9%
Specialty Retail
    3 .9%
Health Care Equipment & Supplies
    3 .5%
Thrifts & Mortgage Finance
    3 .3%
Health Care Providers & Services
    2 .9%
Aerospace & Defense
    2 .4%
Other Industries*
    56 .9%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    2 .3%
Monro Muffler Brake, Inc. 
    1 .1%
Washington Federal, Inc. 
    1 .0%
FreightCar America, Inc. 
    1 .0%
Bank of the Ozarks, Inc. 
    0 .9%
Wintrust Financial Corp. 
    0 .9%
CapitalSource, Inc. 
    0 .9%
Kennametal, Inc. 
    0 .9%
Valspar Corp. 
    0 .9%
Wabtec Corp. 
    0 .9%
Other Holdings*
    89 .2%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries and top holdings, the repurchase agreement is included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Value Fund
 
                 
                 
Common Stocks 97.7%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 2.5%
BE Aerospace, Inc.*
    74,200     $ 1,886,906  
Ceradyne, Inc.*
    5,300       113,261  
Curtiss-Wright Corp.
    39,400       1,144,176  
Ducommun, Inc.
    5,900       100,890  
DynCorp International, Inc., Class A*
    31,900       558,888  
Esterline Technologies Corp.*
    24,850       1,179,133  
Hexcel Corp.*
    70,390       1,091,749  
LMI Aerospace, Inc.*
    5,000       78,850  
Moog, Inc., Class A*
    2,075       66,877  
Triumph Group, Inc.
    10,100       672,963  
                 
              6,893,693  
                 
 
 
Air Freight & Logistics 0.7%
Atlas Air Worldwide Holdings, Inc.*
    13,400       636,500  
Pacer International, Inc.*
    23,200       162,168  
UTi Worldwide, Inc.
    99,760       1,235,029  
                 
              2,033,697  
                 
 
 
Airlines 0.5%
AirTran Holdings, Inc.*
    8,400       40,740  
Alaska Air Group, Inc.*
    7,200       323,640  
Hawaiian Holdings, Inc.*
    20,400       105,468  
JetBlue Airways Corp.*
    35,300       193,797  
Republic Airways Holdings, Inc.* (a)
    40,700       248,677  
SkyWest, Inc.
    27,100       331,162  
UAL Corp.* (a)
    3,600       74,016  
                 
              1,317,500  
                 
 
 
Auto Components 1.0%
Drew Industries, Inc.*
    99,400       2,007,880  
Federal-Mogul Corp.*
    50,500       657,510  
Spartan Motors, Inc.
    13,900       58,380  
                 
              2,723,770  
                 
 
 
Automobiles 0.0%†
Tesla Motors, Inc.*
    4,100       97,703  
                 
 
 
Biotechnology 0.9%
Alkermes, Inc.*
    83,651       1,041,455  
ARIAD Pharmaceuticals, Inc.*
    17,000       47,940  
Celera Corp.*
    3,800       24,890  
Emergent Biosolutions, Inc.*
    6,200       101,308  
Halozyme Therapeutics, Inc.*
    3,600       25,344  
Incyte Corp Ltd.*
    9,400       104,058  
Lexicon Pharmaceuticals, Inc.*
    108,500       138,880  
Martek Biosciences Corp.*
    15,600       369,876  
Pharmasset, Inc.*
    1,800       49,212  
Seattle Genetics, Inc.*
    4,400       52,756  
Tengion, Inc.*
    12,300       45,018  
United Therapeutics Corp.*
    11,600       566,196  
                 
              2,566,933  
                 
 
 
Building Products 1.7%
A.O. Smith Corp.
    13,300       640,927  
Armstrong World Industries, Inc.*
    33,550       1,012,539  
Gibraltar Industries, Inc.*
    152,436       1,539,604  
NCI Building Systems, Inc.*
    5,680       47,541  
Quanex Building Products Corp.
    7,100       122,759  
Simpson Manufacturing Co., Inc.
    49,800       1,222,590  
Trex Co., Inc.* (a)
    1,600       32,144  
                 
              4,618,104  
                 
 
 
Capital Markets 1.8%
American Capital Ltd.* (a)
    57,000       274,740  
BGC Partners, Inc., Class A (a)
    55,000       281,050  
BlackRock Kelso Capital Corp. (a)
    7,898       77,953  
Duff & Phelps Corp., Class A
    54,745       691,429  
Fifth Street Finance Corp.
    4,700       51,841  
Financial Engines, Inc.* (a)
    3,900       53,040  
GFI Group, Inc.
    14,200       79,236  
Gladstone Capital Corp.
    7,300       78,913  
Kayne Anderson Energy Development Co.
    4,558       69,145  
Knight Capital Group, Inc., Class A*
    23,400       322,686  
LaBranche & Co., Inc.*
    21,800       93,304  
MCG Capital Corp.
    48,172       232,671  
Oppenheimer Holdings, Inc., Class A
    2,500       59,875  
Penson Worldwide, Inc.* (a)
    16,800       94,752  
Prospect Capital Corp. (a)
    62,112       599,381  
Sanders Morris Harris Group, Inc.
    6,200       34,410  
SWS Group, Inc.
    116,430       1,106,085  
TICC Capital Corp. (a)
    6,343       53,281  
Virtus Investment Partners, Inc.*
    305       5,710  
Waddell & Reed Financial, Inc., Class A
    33,600       735,168  
                 
              4,994,670  
                 
 
 
Chemicals 2.5%
A. Schulman, Inc.
    6,100       115,656  
H.B. Fuller Co.
    16,000       303,840  
Innophos Holdings, Inc.
    7,500       195,600  
Koppers Holdings, Inc.
    3,900       87,672  
Methanex Corp.
    60,998       1,201,051  
Minerals Technologies, Inc.
    2,800       133,112  
Nalco Holding Co.
    56,150       1,148,829  
Olin Corp.
    4,400       79,596  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Chemicals (continued)
                 
OM Group, Inc.*
    7,300     $ 174,178  
PolyOne Corp.*
    31,700       266,914  
Rockwood Holdings, Inc.*
    7,500       170,175  
Solutia, Inc.*
    18,800       246,280  
Spartech Corp.*
    17,400       178,350  
Valspar Corp.
    83,620       2,518,634  
                 
              6,819,887  
                 
 
 
Commercial Banks 8.3%
1st Source Corp.
    2,700       45,684  
1st United Bancorp, Inc.* (a)
    13,700       100,832  
Alliance Financial Corp.
    1,200       33,360  
Ameris Bancorp*
    5,851       56,518  
Banco Latinoamericano de Comercio Exterior SA, Class E
    8,300       103,667  
Bancorp, Inc. (The)*
    2,400       18,792  
Bank of the Ozarks, Inc.
    74,440       2,640,387  
Boston Private Financial Holdings, Inc.
    21,000       135,030  
CapitalSource, Inc.
    539,987       2,570,338  
Cathay General Bancorp
    14,300       147,719  
Central Pacific Financial Corp.*
    22,100       33,150  
Chemical Financial Corp.
    5,555       120,988  
Citizens Republic Bancorp, Inc.*
    450,147       382,625  
City Holding Co.
    11,200       312,256  
Columbia Banking System, Inc.
    6,630       121,064  
Community Bank System, Inc.
    6,200       136,586  
Community Trust Bancorp, Inc.
    46,520       1,167,652  
CVB Financial Corp. (a)
    68,700       652,650  
East West Bancorp, Inc.
    9,300       141,825  
Financial Institutions, Inc.
    5,500       97,680  
First Bancorp, North Carolina
    4,700       68,103  
First Bancorp, Puerto Rico* (a)
    8,554       4,534  
First Busey Corp.
    16,600       75,198  
First Commonwealth Financial Corp.
    28,809       151,247  
First Community Bancshares, Inc.
    13,100       192,439  
First Financial Bancorp
    29,300       438,035  
First Interstate BancSystem, Inc. (a)
    6,900       108,537  
First Merchants Corp.
    11,200       94,976  
First South Bancorp, Inc. (a)
    2,000       21,220  
FirstMerit Corp.
    14,385       246,415  
FNB Corp.
    44,800       359,744  
Heartland Financial USA, Inc. (a)
    2,500       43,200  
Hudson Valley Holding Corp. (a)
    2,570       59,418  
IBERIABANK Corp.
    6,400       329,472  
Independent Bank Corp.
    10,700       264,076  
Investors Bancorp, Inc.*
    88,650       1,163,088  
Lakeland Bancorp, Inc.
    14,800       126,096  
Lakeland Financial Corp.
    5,800       115,884  
MainSource Financial Group, Inc.
    10,800       77,436  
Nara Bancorp, Inc.*
    4,700       39,621  
National Penn Bancshares, Inc.
    27,345       164,343  
NBT Bancorp, Inc.
    9,500       193,990  
Old Second Bancorp, Inc.
    1,300       2,600  
Oriental Financial Group, Inc.
    1,000       12,660  
PacWest Bancorp
    700       12,817  
Park National Corp. (a)
    2,500       162,600  
Peoples Bancorp, Inc. (a)
    6,000       87,000  
Porter Bancorp, Inc.
    630       7,951  
Renasant Corp. (a)
    12,100       173,635  
Republic Bancorp, Inc., Class A
    4,155       93,072  
S&T Bancorp, Inc. (a)
    5,600       110,656  
SCBT Financial Corp.
    3,900       137,358  
Shore Bancshares, Inc.
    900       10,719  
Sierra Bancorp (a)
    6,200       71,300  
Simmons First National Corp., Class A
    3,300       86,658  
South Financial Group, Inc. (The)
    113,350       30,888  
Southside Bancshares, Inc.
    6,929       136,086  
Southwest Bancorp, Inc.
    6,200       82,398  
State Bancorp, Inc.
    4,400       41,800  
StellarOne Corp.
    6,300       80,451  
Sterling Bancorp
    5,800       52,200  
Sterling Bancshares, Inc.
    19,100       89,961  
Suffolk Bancorp (a)
    2,200       68,068  
Susquehanna Bancshares, Inc.
    30,700       255,731  
SVB Financial Group*
    6,400       263,872  
Texas Capital Bancshares, Inc.*
    87,900       1,441,560  
Tompkins Financial Corp.
    2,000       75,500  
Trico Bancshares (a)
    5,000       84,650  
Trustmark Corp.
    8,900       185,298  
UMB Financial Corp.
    19,700       700,532  
Umpqua Holdings Corp.
    496       5,694  
United Bankshares, Inc. (a)
    3,300       79,002  
United Community Banks, Inc.*
    68,163       269,244  
Univest Corp of Pennsylvania
    36,020       623,866  
Washington Trust Bancorp, Inc.
    4,200       71,568  
WesBanco, Inc.
    7,600       128,060  
West Bancorp, Inc.*
    9,800       66,738  
Wilshire Bancorp, Inc. (a)
    122,530       1,072,137  
Wintrust Financial Corp.
    77,840       2,595,186  
                 
              22,825,391  
                 
 
 
Commercial Services & Supplies 1.1%
ABM Industries, Inc.
    4,100       85,895  
ACCO Brands Corp.*
    17,000       84,830  
ATC Technology Corp.*
    16,400       264,368  
Clean Harbors, Inc.*
    11,464       761,324  
Deluxe Corp.
    40,300       755,625  
Knoll, Inc.
    12,500       166,125  
Metalico, Inc.* (a)
    24,900       99,102  
United Stationers, Inc.*
    3,700       201,539  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Commercial Services & Supplies (continued)
                 
Waste Connections, Inc.*
    13,710     $ 478,342  
Waste Services, Inc.*
    2,500       29,150  
                 
              2,926,300  
                 
 
 
Communications Equipment 2.5%
ADC Telecommunications, Inc.*
    162,490       1,204,051  
Arris Group, Inc.*
    25,536       260,212  
Black Box Corp.
    5,200       145,028  
Calix, Inc.* (a)
    1,200       12,312  
Harmonic, Inc.*
    232,110       1,262,678  
Meru Networks, Inc.* (a)
    8,400       99,624  
Oplink Communications, Inc.*
    5,100       73,083  
Plantronics, Inc.
    6,100       174,460  
Polycom, Inc.*
    44,000       1,310,760  
Symmetricom, Inc.*
    6,300       32,067  
Tekelec*
    9,500       125,780  
Tellabs, Inc.
    335,880       2,146,273  
                 
              6,846,328  
                 
 
 
Computers & Peripherals 0.5%
Hypercom Corp.*
    255,113       1,183,724  
Imation Corp.*
    11,800       108,442  
Quantum Corp.*
    54,400       102,272  
                 
              1,394,438  
                 
 
 
Construction & Engineering 0.4%
EMCOR Group, Inc.*
    36,600       848,022  
MasTec, Inc.*
    12,600       118,440  
                 
              966,462  
                 
 
 
Consumer Finance 0.7%
Advance America Cash Advance Centers, Inc.
    11,400       47,082  
Cash America International, Inc.
    17,700       606,579  
CompuCredit Holdings Corp. (a)
    11,347       44,934  
Dollar Financial Corp.*
    17,623       348,759  
Nelnet, Inc., Class A
    21,800       420,304  
World Acceptance Corp.* (a)
    13,400       513,354  
                 
              1,981,012  
                 
 
 
Containers & Packaging 1.2%
Boise, Inc.*
    31,300       171,837  
Graham Packaging Co., Inc.*
    14,000       167,580  
Myers Industries, Inc.
    7,500       60,675  
Rock-Tenn Co., Class A
    12,200       605,974  
Silgan Holdings, Inc.
    84,000       2,383,920  
                 
              3,389,986  
                 
 
 
Diversified Consumer Services 0.5%
Service Corp. International
    156,930       1,161,282  
Stewart Enterprises, Inc., Class A
    34,900       188,809  
                 
              1,350,091  
                 
 
 
Diversified Financial Services 0.5%
Encore Capital Group, Inc.*
    9,000       185,490  
Marlin Business Services Corp.* (a)
    2,500       30,225  
PHH Corp.*
    61,900       1,178,576  
                 
              1,394,291  
                 
 
 
Diversified Telecommunication Services 0.4%
Consolidated Communications Holdings, Inc.
    38,300       651,483  
Premiere Global Services, Inc.*
    57,300       363,282  
                 
              1,014,765  
                 
 
 
Electric Utilities 2.1%
Central Vermont Public Service Corp.
    4,500       88,830  
Cleco Corp.
    11,200       295,792  
DPL, Inc.
    39,590       946,201  
El Paso Electric Co.*
    18,500       357,975  
IDACORP, Inc.
    23,400       778,518  
MGE Energy, Inc.
    5,100       183,804  
Portland General Electric Co.
    22,900       419,757  
UIL Holdings Corp.
    5,333       133,485  
Unisource Energy Corp.
    22,300       673,014  
Westar Energy, Inc.
    87,800       1,897,358  
                 
              5,774,734  
                 
 
 
Electrical Equipment 1.1%
Acuity Brands, Inc.
    9,800       356,524  
Belden, Inc.
    2,200       48,400  
EnerSys*
    22,300       476,551  
GrafTech International Ltd.*
    34,600       505,852  
PowerSecure International, Inc.* (a)
    4,700       42,723  
Regal-Beloit Corp.
    8,900       496,442  
Woodward Governor Co.
    42,550       1,086,301  
                 
              3,012,793  
                 
 
 
Electronic Equipment, Instruments & Components 1.6%
Benchmark Electronics, Inc.*
    11,525       182,671  
Brightpoint, Inc.*
    7,000       49,000  
Checkpoint Systems, Inc.*
    6,500       112,840  
CPI International, Inc.*
    5,000       77,950  
CTS Corp.
    10,400       96,096  
DDi Corp.
    1,400       10,542  
DTS, Inc.*
    44,110       1,449,896  
Insight Enterprises, Inc.*
    9,400       123,704  
Littelfuse, Inc.*
    37,282       1,178,484  
Mercury Computer Systems, Inc.*
    8,400       98,532  
NAPCO Security Technologies, Inc.*
    205,045       350,627  
RadiSys Corp.*
    3,400       32,368  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Electronic Equipment, Instruments & Components (continued)
                 
Smart Modular Technologies (WWH), Inc.*
    15,100     $ 88,335  
Spectrum Control, Inc.*
    6,800       95,064  
SYNNEX Corp.*
    11,500       294,630  
TTM Technologies, Inc.*
    23,800       226,100  
                 
              4,466,839  
                 
 
 
Energy Equipment & Services 2.2%
Cal Dive International, Inc.*
    227,810       1,332,688  
Complete Production Services, Inc.*
    6,100       87,230  
Dresser-Rand Group, Inc.*
    29,354       926,119  
Global Geophyiscal Services, Inc.* (a)
    10,600       73,882  
Global Industries Ltd.*
    24,200       108,658  
Gulfmark Offshore, Inc., Class A*
    14,900       390,380  
ION Geophysical Corp.*
    62,600       217,848  
Lufkin Industries, Inc.
    4,400       171,556  
Newpark Resources, Inc.*
    13,800       83,490  
RPC, Inc.
    5,887       80,358  
T-3 Energy Services, Inc.*
    4,400       122,760  
TETRA Technologies, Inc.*
    67,700       614,716  
Tidewater, Inc.
    42,890       1,660,701  
                 
              5,870,386  
                 
 
 
Food & Staples Retailing 0.3%
Andersons, Inc. (The)
    12,800       417,152  
Nash Finch Co.
    3,600       122,976  
Spartan Stores, Inc.
    24,900       341,628  
                 
              881,756  
                 
 
 
Food Products 1.3%
American Italian Pasta Co., Class A*
    8,300       438,821  
B&G Foods, Inc., Class A
    11,700       126,126  
Chiquita Brands International, Inc.*
    5,500       66,825  
Corn Products International, Inc.
    39,700       1,202,910  
Dole Food Company, Inc.* (a)
    19,300       201,299  
Sanderson Farms, Inc.
    4,600       233,404  
Smithfield Foods, Inc.*
    81,140       1,208,986  
TreeHouse Foods, Inc.*
    2,800       127,848  
                 
              3,606,219  
                 
 
 
Gas Utilities 0.9%
Chesapeake Utilities Corp.
    2,500       78,500  
New Jersey Resources Corp.
    18,450       649,440  
South Jersey Industries, Inc.
    6,700       287,832  
Southwest Gas Corp.
    21,800       643,100  
WGL Holdings, Inc.
    19,600       666,988  
                 
              2,325,860  
                 
 
 
Health Care Equipment & Supplies 3.6%
Cantel Medical Corp.
    9,300       155,310  
CONMED Corp.*
    5,600       104,328  
Cutera, Inc.*
    12,500       115,125  
DynaVox, Inc., Class A* (a)
    6,700       107,267  
GenMark Diagnostics, Inc.*
    12,000       53,040  
Greatbatch, Inc.*
    21,300       475,203  
Haemonetics Corp.*
    21,410       1,145,863  
Hill-Rom Holdings, Inc.
    48,100       1,463,683  
Inverness Medical Innovations, Inc.*
    53,320       1,421,511  
IRIS International, Inc.*
    63,600       644,904  
MAKO Surgical Corp.*
    69,900       870,255  
SonoSite, Inc.*
    51,850       1,405,654  
STERIS Corp.
    3,900       121,212  
Teleflex, Inc.
    32,800       1,780,384  
                 
              9,863,739  
                 
 
 
Health Care Providers & Services 3.0%
Bio-Reference Labs, Inc.*
    42,350       938,900  
CardioNet, Inc.*
    59,300       324,964  
Centene Corp.*
    4,100       88,150  
Gentiva Health Services, Inc.*
    13,900       375,439  
HealthSouth Corp.*
    7,500       140,325  
Healthspring, Inc.*
    17,400       269,874  
Landauer, Inc.
    14,320       871,802  
LHC Group, Inc.*
    51,090       1,417,747  
Magellan Health Services, Inc.*
    5,000       181,600  
Nighthawk Radiology Holdings, Inc.*
    6,200       16,058  
Odyssey HealthCare, Inc.*
    5,000       133,600  
Owens & Minor, Inc.
    700       19,866  
PharMerica Corp.*
    29,400       431,004  
RehabCare Group, Inc.*
    6,100       132,858  
Res-Care, Inc.*
    20,400       197,064  
Skilled Healthcare Group, Inc., Class A*
    11,700       79,443  
Sun Healthcare Group, Inc.*
    111,930       904,394  
Triple-S Management Corp., Class B*
    14,500       268,975  
VCA Antech, Inc.*
    50,204       1,243,051  
WellCare Health Plans, Inc.*
    12,100       287,254  
                 
              8,322,368  
                 
 
 
Hotels, Restaurants & Leisure 2.4%
CEC Entertainment, Inc.*
    4,300       151,618  
Domino’s Pizza, Inc.*
    38,500       435,050  
Isle of Capri Casinos, Inc.*
    42,300       391,698  
Multimedia Games, Inc.*
    184,370       829,665  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Hotels, Restaurants & Leisure (continued)
                 
P.F. Chang’s China Bistro, Inc. (a)
    31,100     $ 1,233,115  
Penn National Gaming, Inc.*
    54,540       1,259,874  
Ruby Tuesday, Inc.*
    34,300       291,550  
Ruth’s Hospitality Group, Inc.*
    9,248       38,657  
Shuffle Master, Inc.*
    117,221       938,940  
WMS Industries, Inc.*
    26,050       1,022,462  
                 
              6,592,629  
                 
 
 
Household Durables 2.0%
Brookfield Homes Corp.*
    3,400       22,916  
Ethan Allen Interiors, Inc.
    86,100       1,204,539  
Helen of Troy Ltd.*
    11,100       244,866  
Hooker Furniture Corp.
    2,800       29,848  
Jarden Corp.
    2,272       61,049  
KB Home
    92,850       1,021,350  
La-Z-Boy, Inc.*
    1,200       8,916  
Ryland Group, Inc.
    81,600       1,290,912  
Standard Pacific Corp.*
    34,000       113,220  
Tupperware Brands Corp.
    35,074       1,397,699  
                 
              5,395,315  
                 
 
 
Household Products 0.5%
Cellu Tissue Holdings, Inc.*
    2,800       21,756  
Central Garden and Pet Co., Class A*
    26,900       241,293  
Church & Dwight Co., Inc.
    16,600       1,040,986  
                 
              1,304,035  
                 
 
 
Industrial Conglomerates 0.0%†
Standex International Corp.
    3,600       91,260  
                 
 
 
Information Technology Services 1.2%
Alliance Data Systems Corp.* (a)
    10,810       643,411  
CIBER, Inc.*
    32,400       89,748  
CSG Systems International, Inc.*
    6,100       111,813  
Forrester Research, Inc.*
    17,469       528,612  
Gartner, Inc.*
    10,300       239,475  
Global Cash Access Holdings, Inc.*
    9,200       66,332  
Mantech International Corp., Class A*
    2,000       85,140  
NeuStar, Inc., Class A*
    56,400       1,162,968  
SRA International, Inc., Class A*
    10,700       210,469  
Unisys Corp.*
    7,580       140,154  
Virtusa Corp.*
    2,400       22,392  
                 
              3,300,514  
                 
 
 
Insurance 5.2%
Alterra Capital Holdings Ltd.
    14,800       277,944  
American Equity Investment Life Holding Co.
    83,400       860,688  
American Physicians Capital, Inc.
    5,066       156,286  
American Safety Insurance Holdings Ltd.*
    1,200       18,864  
AMERISAFE, Inc.*
    122,830       2,155,667  
Amtrust Financial Services, Inc.
    16,000       192,640  
Argo Group International Holdings Ltd.
    2,031       62,128  
Arthur J Gallagher & Co.
    60,550       1,476,209  
Aspen Insurance Holdings Ltd.
    87,780       2,171,677  
Assured Guaranty Ltd.
    32,500       431,275  
CNO Financial Group, Inc.*
    44,700       221,265  
Delphi Financial Group, Inc., Class A
    24,475       597,435  
Hallmark Financial Services*
    5,800       57,710  
Hanover Insurance Group, Inc. (The)
    54,900       2,388,150  
Horace Mann Educators Corp.
    1,600       24,480  
Meadowbrook Insurance Group, Inc.
    22,000       189,860  
National Financial Partners Corp.*
    58,700       573,499  
Navigators Group, Inc. (The)*
    2,200       90,486  
NYMAGIC, Inc.
    2,200       42,438  
Platinum Underwriters Holdings Ltd.
    16,000       580,640  
PMA Capital Corp., Class A*
    12,200       79,910  
Primerica, Inc.* (a)
    4,200       90,048  
ProAssurance Corp.*
    2,200       124,872  
Selective Insurance Group, Inc.
    14,500       215,470  
Symetra Financial Corp.
    7,200       86,400  
Tower Group, Inc.
    1,468       31,606  
Validus Holdings Ltd.
    43,950       1,073,259  
                 
              14,270,906  
                 
 
 
Internet & Catalog Retail 0.5%
NutriSystem, Inc. (a)
    62,558       1,435,081  
                 
 
 
Internet Software & Services 0.3%
Digital River, Inc.*
    25,570       611,379  
EarthLink, Inc.
    15,600       124,176  
QuinStreet, Inc.* (a)
    2,000       23,020  
SPS Commerce, Inc.* (a)
    2,500       29,050  
                 
              787,625  
                 
 
 
Leisure Equipment & Products 0.2%
JAKKS Pacific, Inc.*
    19,400       278,972  
RC2 Corp.*
    6,200       99,882  
Sport Supply Group, Inc.
    3,200       43,072  
                 
              421,926  
                 
                 
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Life Sciences Tools & Services 0.0%†
Kendle International, Inc.*
    1,700     $ 19,584  
                 
 
 
Machinery 5.6%
Altra Holdings, Inc.*
    9,000       117,180  
Barnes Group, Inc.
    22,900       375,331  
Cascade Corp.
    1,000       35,610  
Chart Industries, Inc.*
    1,400       21,812  
CIRCOR International, Inc.
    4,200       107,436  
Columbus Mckinnon Corp.*
    3,000       41,910  
Douglas Dynamics, Inc.*
    93,600       1,076,400  
Dynamic Materials Corp.
    61,991       994,336  
EnPro Industries, Inc.*
    19,300       543,295  
FreightCar America, Inc.
    129,910       2,938,564  
Harsco Corp.
    58,510       1,374,985  
Kennametal, Inc.
    99,260       2,524,182  
Mueller Industries, Inc.
    53,700       1,321,020  
Portec Rail Products, Inc.
    800       9,104  
Tennant Co.
    1,200       40,584  
Terex Corp.*
    79,297       1,486,026  
Trimas Corp.*
    900       10,179  
Wabtec Corp.
    60,270       2,404,170  
                 
              15,422,124  
                 
 
 
Marine 0.2%
Excel Maritime Carriers Ltd*
    69,900       357,888  
Horizon Lines, Inc., Class A
    48,100       203,463  
                 
              561,351  
                 
 
 
Media 0.6%
AH Belo Corp., Class A*
    6,900       45,816  
Crown Media Holdings, Inc., Class A* (a)
    3,900       6,864  
Entercom Communications Corp., Class A* (a)
    15,400       135,828  
Journal Communications, Inc., Class A*
    36,500       144,905  
LIN TV Corp., Class A*
    22,400       121,184  
LodgeNet Interactive Corp.* (a)
    32,700       121,317  
Primedia, Inc.
    34,800       101,964  
Scholastic Corp.
    13,900       335,268  
Sinclair Broadcast Group, Inc., Class A*
    67,400       392,942  
Valassis Communications, Inc.*
    2,800       88,816  
                 
              1,494,904  
                 
 
 
Metals & Mining 2.2%
AK Steel Holding Corp.
    111,600       1,330,272  
Coeur d’Alene Mines Corp.*
    9,200       145,176  
Compass Minerals International, Inc.
    23,800       1,672,664  
Haynes International, Inc.
    27,369       843,786  
Hecla Mining Co.* (a)
    6,100       31,842  
Metals USA Holdings Corp.* (a)
    10,100       150,995  
Royal Gold, Inc.
    3,700       177,600  
RTI International Metals, Inc.*
    49,400       1,191,034  
Stillwater Mining Co.*
    16,700       194,054  
Worthington Industries, Inc.
    26,600       342,076  
                 
              6,079,499  
                 
 
 
Multiline Retail 0.3%
Dillard’s, Inc., Class A
    26,600       571,900  
Saks, Inc.* (a)
    33,377       253,331  
                 
              825,231  
                 
 
 
Multi-Utilities 1.2%
Avista Corp.
    10,100       197,253  
CMS Energy Corp.
    101,030       1,480,089  
Vectren Corp.
    66,650       1,576,939  
                 
              3,254,281  
                 
 
 
Oil, Gas & Consumable Fuels 2.4%
Approach Resources, Inc.*
    59,890       412,043  
Berry Petroleum Co., Class A
    71,040       1,827,149  
Brigham Exploration Co.*
    10,000       153,800  
Clayton Williams Energy, Inc.*
    100       4,212  
CVR Energy, Inc.*
    34,400       258,688  
DHT Holdings, Inc.
    8,400       32,340  
Energy Partners Ltd.*
    8,000       97,680  
EXCO Resources, Inc.
    28,600       417,846  
Gulfport Energy Corp.*
    52,000       616,720  
Infinity Bio-Energy Ltd.*
    155,500       0  
Knightsbridge Tankers Ltd.
    7,300       128,407  
Nordic American Tanker Shipping (a)
    3,000       84,270  
Rosetta Resources, Inc.*
    12,000       237,720  
Stone Energy Corp.*
    10,900       121,644  
Swift Energy Co.*
    6,500       174,915  
USEC, Inc.*
    7,200       34,272  
VAALCO Energy, Inc.*
    18,400       103,040  
Western Refining, Inc.* (a)
    10,900       54,827  
Whiting Petroleum Corp.*
    19,950       1,564,479  
World Fuel Services Corp.
    13,400       347,596  
                 
              6,671,648  
                 
 
 
Paper & Forest Products 0.2%
Buckeye Technologies, Inc.*
    37,800       376,110  
Domtar Corp.
    3,100       152,365  
Schweitzer-Mauduit International, Inc.
    1,400       70,630  
                 
              599,105  
                 
 
 
Personal Products 0.1%
Nutraceutical International Corp.*
    6,000       91,560  
Prestige Brands Holdings, Inc.*
    29,100       206,028  
                 
              297,588  
                 
                 
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Pharmaceuticals 1.1%
Cadence Pharmaceuticals, Inc.* (a)
    3,400     $ 23,834  
Cypress Bioscience, Inc.*
    53,900       123,970  
Endo Pharmaceuticals Holdings, Inc.*
    77,504       1,691,137  
Par Pharmaceutical Cos., Inc.*
    11,400       295,944  
ViroPharma, Inc.*
    72,000       807,120  
XenoPort, Inc.*
    1,900       18,639  
                 
              2,960,644  
                 
 
 
Professional Services 0.6%
Dolan Co. (The)*
    12,300       136,776  
GP Strategies Corp.*
    2,500       18,150  
IHS, Inc., Class A*
    25,390       1,483,284  
                 
              1,638,210  
                 
 
 
Real Estate Investment Trusts (REITs) 5.0%
American Campus Communities, Inc.
    4,400       120,076  
American Capital Agency Corp. (a)
    9,500       250,990  
Anworth Mortgage Asset Corp.
    85,600       609,472  
Ashford Hospitality Trust, Inc.*
    18,400       134,872  
Associated Estates Realty Corp.
    4,500       58,275  
BioMed Realty Trust, Inc.
    27,700       445,693  
CapLease, Inc.
    18,700       86,207  
CBL & Associates Properties, Inc.
    49,400       614,536  
Colonial Properties Trust
    16,436       238,815  
DCT Industrial Trust, Inc.
    52,000       235,040  
Developers Diversified Realty Corp.
    14,900       147,510  
DiamondRock Hospitality Co.*
    26,580       218,487  
EastGroup Properties, Inc.
    5,300       188,574  
Education Realty Trust, Inc.
    13,700       82,611  
Entertainment Properties Trust
    8,700       331,209  
Equity Lifestyle Properties, Inc.
    6,100       294,203  
Extra Space Storage, Inc.
    9,000       125,100  
FelCor Lodging Trust, Inc.*
    25,200       125,748  
First Industrial Realty Trust, Inc.*
    97,300       468,986  
Glimcher Realty Trust
    41,600       248,768  
Healthcare Realty Trust, Inc.
    46,640       1,024,681  
Hersha Hospitality Trust
    46,400       209,728  
Home Properties, Inc.
    2,500       112,675  
Inland Real Estate Corp.
    13,700       108,504  
Invesco Mortgage Capital, Inc.
    8,300       166,083  
LaSalle Hotel Properties
    10,300       211,871  
Lexington Realty Trust (a)
    103,783       623,736  
LTC Properties, Inc.
    9,500       230,565  
Macerich Co. (The)
    18,018       672,432  
MFA Financial, Inc.
    85,300       631,220  
Mid-America Apartment Communities, Inc.
    5,500       283,085  
MPG Office Trust, Inc.* (a)
    39,000       114,270  
National Retail Properties, Inc.
    30,200       647,488  
Omega Healthcare Investors, Inc.
    19,300       384,649  
Parkway Properties, Inc.
    24,300       354,051  
Pennsylvania Real Estate Investment Trust (a)
    48,850       596,947  
PS Business Parks, Inc.
    2,800       156,184  
Redwood Trust, Inc.
    24,600       360,144  
Resource Capital Corp.
    19,200       109,056  
Saul Centers, Inc.
    4,200       170,646  
Senior Housing Properties Trust
    33,600       675,696  
Strategic Hotels & Resorts, Inc.*
    76,400       335,396  
Sun Communities, Inc. (a)
    8,700       225,852  
Sunstone Hotel Investors, Inc.*
    24,505       243,335  
                 
              13,673,466  
                 
 
 
Real Estate Management & Development 0.8%
Jones Lang LaSalle, Inc.
    33,070       2,170,715  
                 
 
 
Road & Rail 1.8%
Con-way, Inc.
    55,230       1,658,004  
Genesee & Wyoming, Inc., Class A*
    21,861       815,634  
Heartland Express, Inc.
    9,400       136,488  
Kansas City Southern*
    57,800       2,101,030  
Knight Transportation, Inc.
    1,800       36,432  
Marten Transport Ltd.*
    6,100       126,758  
                 
              4,874,346  
                 
 
 
Semiconductors & Semiconductor Equipment 1.7%
Alpha & Omega Semiconductor Ltd.*
    5,800       80,098  
Amkor Technology, Inc.*
    18,500       101,935  
DSP Group, Inc.*
    8,000       51,120  
Entegris, Inc.*
    33,138       131,558  
FEI Co.*
    7,500       147,825  
IXYS Corp.*
    7,700       68,068  
Lattice Semiconductor Corp.*
    32,700       141,918  
MaxLinear, Inc., Class A* (a)
    3,900       54,522  
MKS Instruments, Inc.*
    8,600       160,992  
Photronics, Inc.*
    10,300       46,556  
PMC — Sierra, Inc.*
    27,100       203,792  
RF Micro Devices, Inc.*
    11,100       43,401  
Semtech Corp.*
    6,100       99,857  
Sigma Designs, Inc.* (a)
    25,900       259,259  
Skyworks Solutions, Inc.*
    46,900       787,451  
Teradyne, Inc.*
    203,000       1,979,250  
Veeco Instruments, Inc.*
    4,800       164,544  
                 
              4,522,146  
                 
 
 
Software 4.1%
Actuate Corp.*
    254,400       1,132,080  
Advent Software, Inc.* (a)
    18,546       870,920  
Aspen Technology, Inc.*
    19,400       211,266  
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Small Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
Software (continued)
                 
BroadSoft, Inc.* (a)
    15,700     $ 134,235  
Concur Technologies, Inc.*
    19,648       838,577  
JDA Software Group, Inc.*
    76,639       1,684,525  
MICROS Systems, Inc.*
    33,133       1,055,949  
Netscout Systems, Inc.*
    4,700       66,834  
Progress Software Corp.*
    5,000       150,150  
Quest Software, Inc.*
    5,500       99,220  
S1 Corp.*
    174,150       1,046,641  
Smith Micro Software, Inc.*
    1,000       9,510  
Solera Holdings, Inc.
    57,650       2,086,930  
SonicWALL, Inc.*
    5,600       65,800  
SS&C Technologies Holdings, Inc.*
    2,100       33,663  
Sybase, Inc.*
    12,850       830,881  
Take-Two Interactive Software, Inc.*
    37,900       341,100  
TeleCommunication Systems, Inc., Class A*
    6,700       27,738  
THQ, Inc.*
    103,178       445,729  
TIBCO Software, Inc.*
    6,900       83,214  
                 
              11,214,962  
                 
 
 
Specialty Retail 4.1%
Asbury Automotive Group, Inc.*
    66,550       701,437  
Brown Shoe Co., Inc.
    9,300       141,174  
Cabela’s, Inc.*(a)
    20,100       284,214  
Collective Brands, Inc.*
    11,200       176,960  
Finish Line, Inc. (The), Class A
    35,800       498,694  
Genesco, Inc.*
    5,500       144,705  
Gymboree Corp.*
    3,600       153,756  
Jo-Ann Stores, Inc.*
    7,200       270,072  
Jos. A. Bank Clothiers, Inc.*
    22,700       1,225,573  
Monro Muffler Brake, Inc.
    76,200       3,012,186  
Rent-A-Center, Inc., Class A*
    29,400       595,644  
Sonic Automotive, Inc., Class A*
    38,300       327,848  
Stage Stores, Inc.
    64,100       684,588  
Tractor Supply Co.
    32,050       1,954,089  
Zumiez, Inc.*
    60,710       978,038  
                 
              11,148,978  
                 
 
 
Textiles, Apparel & Luxury Goods 2.2%
Carter’s, Inc.*
    6,400       168,000  
Iconix Brand Group, Inc.*
    80,050       1,150,318  
Maidenform Brands, Inc.*
    11,100       225,996  
Oxford Industries, Inc.
    19,500       408,135  
Perry Ellis International, Inc.*
    33,050       667,610  
Phillips-Van Heusen Corp.
    44,980       2,081,225  
Warnaco Group, Inc. (The)*
    37,900       1,369,706  
                 
              6,070,990  
                 
 
 
Thrift & Mortgage Finance 0.3%
ViewPoint Financial Group*
    71,350       713,500  
                 
 
 
Thrifts & Mortgage Finance 3.5%
Berkshire Hills Bancorp, Inc.
    3,300       64,284  
Brookline Bancorp, Inc.
    14,600       129,648  
Dime Community Bancshares
    8,150       100,489  
Doral Financial Corp.* (a)
    11,300       27,572  
First Niagara Financial Group, Inc.
    109,896       1,376,997  
Flushing Financial Corp.
    6,200       75,826  
MGIC Investment Corp.*
    18,500       127,465  
OceanFirst Financial Corp.
    3,600       43,452  
Ocwen Financial Corp.*
    227,120       2,314,353  
PMI Group, Inc. (The)*
    52,700       152,303  
Provident Financial Services, Inc.
    13,900       162,491  
Radian Group, Inc.
    48,300       349,692  
Trustco Bank Corp.
    16,100       90,160  
ViewPoint Financial Group
    14,500       200,825  
Washington Federal, Inc.
    182,470       2,952,365  
Westfield Financial, Inc.
    145,460       1,211,682  
WSFS Financial Corp.
    4,500       161,685  
                 
              9,541,289  
                 
 
 
Trading Companies & Distributors 1.8%
Aceto Corp.
    152,821       875,664  
Aircastle Ltd.
    18,900       148,365  
Applied Industrial Technologies, Inc.
    30,250       765,930  
Beacon Roofing Supply, Inc.*
    118,240       2,130,685  
Interline Brands, Inc.*
    15,000       259,350  
Rush Enterprises, Inc., Class A*
    56,400       753,504  
                 
              4,933,498  
                 
 
 
Water Utilities 0.1%
American States Water Co.
    3,000       99,420  
California Water Service Group
    3,700       132,090  
                 
              231,510  
                 
 
 
Wireless Telecommunication Services 1.7%
NTELOS Holdings Corp.
    64,586       1,110,879  
Shenandoah Telecommunications Co.
    71,800       1,273,732  
Syniverse Holdings, Inc.*
    106,298       2,173,794  
                 
              4,558,405  
                 
         
Total Common Stocks (cost $263,711,528)
    267,356,980  
         
                 
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
                 
                 
U. S. Government Sponsored & Agency Obligation 0.2%
                 
      Principal
Amount 		      Market
Value 		 
 
 
U.S. Treasury Note, 1.25%, 11/30/10 (b)
  $ 380,000     $ 381,633  
                 
         
Total U. S. Government Sponsored & Agency Obligation (cost $381,569)
    381,633  
         
                 
                 
Mutual Fund 2.4%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 2.4%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    6,626,670     $ 6,626,670  
                 
         
Total Mutual Fund (cost $6,626,670)
    6,626,670  
         
                 
                 
Repurchase Agreement 4.0%
                 
      Principal
Amount 		      Market
Value 		 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10, repurchase price $11,071,870, collateralized by U.S. Government Agency Mortgages ranging 2.88%-8.50%, maturing 08/01/14-06/01/40; total market value $11,293,695. (d)
  $ 11,071,861     $ 11,071,861  
                 
         
Total Repurchase Agreement
(cost $11,071,861)
    11,071,861  
         
         
Total Investments
(cost $281,791,628) (e) — 104.3%
    285,437,144  
         
Liabilities in excess of other assets — (4.3%)
    (11,869,688 )
         
         
NET ASSETS — 100.0%
  $ 273,567,456  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $10,553,277.
 
(b) A security or a portion of a security was used to cover the margin requirement for futures contracts.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) The security was purchased with cash collateral held from securities on loan. The total value of this security as of June 30, 2010 was $11,071,861.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
GP General Partnership
 
Ltd. Limited
 
REIT Real Estate Investment Trust
 
SA Stock Company
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
 
                             
            Notional Value
 		   
Number of
 		          Covered by
 		  Unrealized
Contracts   Long Contracts   Expiration   Contracts   Depreciation
 
69
 
Russell 2000 Mini Index
    09/17/10     $ 4,193,820     $ (314,952 )
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Multi-Manager
 
    Small Cap Value Fund  
       
Assets:
         
Investments, at value* (cost $270,719,767)
    $ 274,365,283  
Repurchase agreement, at value and cost
      11,071,861  
           
Total Investments
      285,437,144  
           
Cash
      2,665  
Interest and dividends receivable
      298,065  
Security lending income receivable
      7,136  
Receivable for investments sold
      2,534,932  
Receivable for capital shares issued
      175,375  
Prepaid expenses and other assets
      3,039  
           
Total Assets
      288,458,356  
           
Liabilities:
         
Payable for investments purchased
      3,181,070  
Payable for capital shares redeemed
      267,406  
Payable for variation margin on futures contracts
      37,260  
Payable upon return of securities loaned (Note 2)
      11,071,861  
Accrued expenses and other payables:
         
Investment advisory fees
      210,211  
Fund administration fees
      14,002  
Distribution fees
      5,196  
Administrative servicing fees
      43,215  
Accounting and transfer agent fees
      6,476  
Custodian fees
      1,579  
Compliance program costs (Note 3)
      1,392  
Professional fees
      25,072  
Printing fees
      26,158  
Other
      2  
           
Total Liabilities
      14,890,900  
           
Net Assets
    $ 273,567,456  
           
Represented by:
         
Capital
    $ 374,895,314  
Accumulated undistributed net investment income
      391,099  
Accumulated net realized losses from investment, futures and foreign currency transactions
      (105,049,521 )
Net unrealized appreciation/(depreciation) from investments
      3,645,516  
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (314,952 )
           
Net Assets
    $ 273,567,456  
           
Net Assets:
         
Class I Shares
    $ 189,327,604  
Class II Shares
      23,921,518  
Class III Shares
      755,316  
Class IV Shares
      20,437,056  
Class Y Shares
      39,125,962  
           
Total
    $ 273,567,456  
           
 
* 		 Includes value of securities on loan of $10,553,277 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
14 Semiannual Report 2010

 

 
 
           
           
      NVIT Multi-Manager
 
    Small Cap Value Fund  
       
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      23,200,853  
Class II Shares
      2,974,504  
Class III Shares
      92,365  
Class IV Shares
      2,504,617  
Class Y Shares
      4,788,467  
           
Total
      33,560,806  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.16  
Class II Shares
    $ 8.04  
Class III Shares
    $ 8.18  
Class IV Shares
    $ 8.16  
Class Y Shares
    $ 8.17  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Multi-Manager
 		 
      Small Cap Value Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 394  
Dividend income
      2,007,740  
Income from securities lending (Note 2)
      54,918  
Foreign tax withholding
      (4,400 )
           
Total Income
      2,058,652  
           
EXPENSES:
         
Investment advisory fees
      1,323,212  
Fund administration fees
      65,138  
Distribution fees Class II Shares
      36,218  
Administrative servicing fees Class I Shares
      157,839  
Administrative servicing fees Class II Shares
      21,731  
Administrative servicing fees Class III Shares
      430  
Administrative servicing fees Class IV Shares
      17,319  
Professional fees
      13,074  
Printing fees
      13,851  
Trustee fees
      5,417  
Custodian fees
      8,874  
Accounting and transfer agent fees
      5,348  
Compliance program costs (Note 3)
      589  
Other
      7,678  
           
Total expenses before earnings credits
      1,676,718  
Earnings credit (Note 5)
      (10 )
           
Net Expenses
      1,676,708  
           
NET INVESTMENT INCOME
      381,944  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      11,013,209  
Net realized gains from futures transactions (Note 2)
      101,519  
Net realized gains from foreign currency transactions (Note 2)
      24  
           
Net realized gains from investment, futures and foreign currency transactions
      11,114,752  
           
Net change in unrealized appreciation/(depreciation) from investments
      (13,863,623 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (370,648 )
           
Net change in unrealized appreciation/(depreciation) from investments and futures
      (14,234,271 )
           
Net realized/unrealized losses from investments and foreign currency transactions
      (3,119,519 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (2,737,575 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager Small Cap Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 381,944       $ 1,965,516  
Net realized gains/(losses) from investment, futures and
foreign currency transactions
      11,114,752         (30,924,125 )
Net change in unrealized appreciation/(depreciation) from
investments and futures
      (14,234,271 )       90,430,845  
                     
Change in net assets resulting from operations
      (2,737,575 )       61,472,236  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (859,763 )       (1,084,931 )
Class II
      (115,869 )       (118,433 )
Class III
      (2,045 )       (2,657 )
Class IV
      (94,696 )       (130,635 )
Class Y
      (158,604 )       (75,307 )
                     
Change in net assets from shareholder distributions
      (1,230,977 )       (1,411,963 )
                     
Change in net assets from capital transactions
      (14,909,527 )       (25,264,834 )
                     
Change in net assets
      (18,878,079 )       34,795,439  
                     
                     
Net Assets:
                   
Beginning of period
      292,445,535         257,650,096  
                     
End of period
    $ 273,567,456       $ 292,445,535  
                     
Accumulated undistributed net investment income at end of period
    $ 391,099       $ 1,240,132  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 6,040,807       $ 8,790,709  
Dividends reinvested
      859,763         1,084,931  
Cost of shares redeemed
      (23,360,445 )       (47,967,258 )
                     
Total Class I
      (16,459,875 )       (38,091,618 )
                     
Class II Shares
                   
Proceeds from shares issued
      3,741,842         7,313,374  
Dividends reinvested
      115,869         118,433  
Cost of shares redeemed
      (10,334,740 )       (4,787,313 )
                     
Total Class II
      (6,477,029 )       2,644,494  
                     
Class III Shares
                   
Proceeds from shares issued
      341,677         73,271  
Dividends reinvested
      2,045         2,657  
Cost of shares redeemed
      (70,082 )       (175,511 )
                     
Total Class III
      273,640         (99,583 )
                     
Class IV Shares
                   
Proceeds from shares issued
      502,047         1,033,067  
Dividends reinvested
      94,696         130,635  
Cost of shares redeemed
      (3,139,591 )       (6,041,299 )
                     
Total Class IV
      (2,542,848 )       (4,877,597 )
                     
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 17

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Multi-Manager Small Cap Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
CAPITAL TRANSACTIONS: (continued)
                   
Class Y Shares
                   
Proceeds from shares issued
    $ 10,571,517       $ 18,406,761  
Dividends reinvested
      158,604         75,307  
Cost of shares redeemed
      (433,536 )       (3,322,598 )
                     
Total Class Y
      10,296,585         15,159,470  
                     
Change in net assets from capital transactions
    $ (14,909,527 )     $ (25,264,834 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      664,736         1,300,967  
Reinvested
      95,002         190,339  
Redeemed
      (2,662,156 )       (7,204,323 )
                     
Total Class I Shares
      (1,902,418 )       (5,713,017 )
                     
Class II Shares
                   
Issued
      425,374         1,159,156  
Reinvested
      12,975         20,998  
Redeemed
      (1,172,408 )       (711,659 )
                     
Total Class II Shares
      (734,059 )       468,495  
                     
Class III Shares
                   
Issued
      39,713         10,640  
Reinvested
      226         465  
Redeemed
      (8,004 )       (27,105 )
                     
Total Class III Shares
      31,935         (16,000 )
                     
Class IV Shares
                   
Issued
      57,059         152,968  
Reinvested
      10,464         22,918  
Redeemed
      (358,665 )       (909,402 )
                     
Total Class IV Shares
      (291,142 )       (733,516 )
                     
Class Y Shares
                   
Issued
      1,203,658         2,716,427  
Reinvested
      17,506         13,212  
Redeemed
      (50,756 )       (436,531 )
                     
Total Class Y Shares
      1,170,408         2,293,108  
                     
Total change in shares
      (1,725,276 )       (3,700,930 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
18 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Small Cap Value Fund
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		    Net
 		    Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Investment
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income (Loss)
 		    Reimbursements)
 		         
    Beginning
 		    Income
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     (Loss)     Investments     Operations     Income     Gains     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .30       0 .01       (0 .11)       (0 .10)       (0 .04)       –          (0 .04)       –        $ 8 .16       (1 .30%)     $ 189,327,604         1 .11%       0 .26%       1 .11%       23 .71%    
Year Ended December 31, 2009 (e)
  $ 6 .62       0 .06       1 .66       1 .72       (0 .04)       –          (0 .04)       –        $ 8 .30       26 .22%     $ 208,335,958         1 .16%       0 .82%       1 .16%       62 .55%    
Year Ended December 31, 2008
  $ 9 .88       0 .12       (3 .28)       (3 .16)       (0 .10)       –          (0 .10)       –        $ 6 .62       (32 .15%)     $ 203,855,899         1 .08%       1 .29%       1 .10%       119 .80%    
Year Ended December 31, 2007
  $ 12 .45       0 .10       (0 .87)       (0 .77)       (0 .15)       (1 .65)       (1 .80)       –        $ 9 .88       (6 .89%)     $ 410,073,252         1 .14%       0 .66%       1 .14%       94 .94%    
Year Ended December 31, 2006
  $ 11 .53       0 .07       1 .91       1 .98       (0 .06)       (1 .00)       (1 .06)       –        $ 12 .45       17 .29%     $ 587,083,741         1 .13%       0 .47%       1 .13%       115 .12%    
Year Ended December 31, 2005
  $ 12 .62       0 .03       0 .35       0 .38       (0 .01)       (1 .46)       (1 .47)       –        $ 11 .53       3 .07%     $ 634,107,304         1 .12%       0 .09%       1 .12%       188 .69%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .18       –          (0 .11)       (0 .11)       (0 .03)       –          (0 .03)       –        $ 8 .04       (1 .38%)     $ 23,921,518         1 .36%       0 .01%       1 .36%       23 .71%    
Year Ended December 31, 2009 (e)
  $ 6 .54       0 .03       1 .65       1 .68       (0 .04)       –          (0 .04)       –        $ 8 .18       25 .86%     $ 30,352,462         1 .40%       0 .45%       1 .40%       62 .55%    
Year Ended December 31, 2008
  $ 9 .76       0 .09       (3 .23)       (3 .14)       (0 .08)       –          (0 .08)       –        $ 6 .54       (32 .30%)     $ 21,181,023         1 .32%       0 .97%       1 .35%       119 .80%    
Year Ended December 31, 2007
  $ 12 .34       0 .06       (0 .87)       (0 .81)       (0 .12)       (1 .65)       (1 .77)       –        $ 9 .76       (7 .23%)     $ 37,579,430         1 .39%       0 .38%       1 .39%       94 .94%    
Year Ended December 31, 2006
  $ 11 .43       0 .03       1 .91       1 .94       (0 .03)       (1 .00)       (1 .03)       –        $ 12 .34       17 .10%     $ 55,228,598         1 .38%       0 .23%       1 .38%       115 .12%    
Year Ended December 31, 2005
  $ 12 .55       (0 .02)       0 .36       0 .34       –          (1 .46)       (1 .46)       –        $ 11 .43       2 .78%     $ 44,094,071         1 .38%       (0 .15%)       1 .38%       188 .69%    
                                                                                                                                                         
Class III Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .32       0 .01       (0 .11)       (0 .10)       (0 .04)       –          (0 .04)       –        $ 8 .18       (1 .30%)     $ 755,316         1 .12%       0 .31%       1 .12%       23 .71%    
Year Ended December 31, 2009 (e)
  $ 6 .63       0 .06       1 .67       1 .73       (0 .04)       –          (0 .04)       –        $ 8 .32       26 .33%     $ 502,519         1 .16%       0 .84%       1 .16%       62 .55%    
Year Ended December 31, 2008
  $ 9 .90       0 .12       (3 .29)       (3 .17)       (0 .10)       –          (0 .10)       –        $ 6 .63       32 .21%     $ 506,519         1 .12%       1 .34%       1 .14%       119 .80%    
Year Ended December 31, 2007
  $ 12 .48       0 .10       (0 .88)       (0 .78)       (0 .15)       (1 .65)       (1 .80)       –        $ 9 .90       6 .92%     $ 991,682         1 .11%       0 .68%       1 .12%       94 .94%    
Year Ended December 31, 2006
  $ 11 .55       0 .07       1 .92       1 .99       (0 .06)       (1 .00)       (1 .06)       –        $ 12 .48       17 .37%     $ 1,485,343         1 .12%       0 .47%       1 .12%       115 .12%    
Year Ended December 31, 2005
  $ 12 .64       0 .03       0 .35       0 .38       (0 .01)       (1 .46)       (1 .47)       –        $ 11 .55       3 .06%     $ 1,445,191         1 .13%       0 .08%       1 .13%       188 .69%    
                                                                                                                                                         
Class IV Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .30       0 .01       (0 .11)       (0 .10)       (0 .04)       –          (0 .04)       –        $ 8 .16       (1 .30%)     $ 20,437,056         1 .11%       0 .26%       1 .11%       23 .71%    
Year Ended December 31, 2009 (e)
  $ 6 .61       0 .06       1 .67       1 .73       (0 .04)       –          (0 .04)       –        $ 8 .30       26 .41%     $ 23,201,040         1 .16%       0 .83%       1 .16%       62 .55%    
Year Ended December 31, 2008
  $ 9 .88       0 .11       (3 .28)       (3 .17)       (0 .10)       –          (0 .10)       –        $ 6 .61       (32 .27%)     $ 23,344,639         1 .11%       1 .21%       1 .14%       119 .80%    
Year Ended December 31, 2007
  $ 12 .45       0 .09       (0 .86)       (0 .77)       (0 .15)       (1 .65)       (1 .80)       –        $ 9 .88       (6 .92%)     $ 41,650,497         1 .10%       0 .67%       1 .11%       94 .94%    
Year Ended December 31, 2006
  $ 11 .53       0 .07       1 .91       1 .98       (0 .06)       (1 .00)       (1 .06)       –        $ 12 .45       17 .40%     $ 52,342,646         1 .12%       0 .48%       1 .12%       115 .12%    
Year Ended December 31, 2005
  $ 12 .62       0 .03       0 .35       0 .38       (0 .01)       (1 .46)       (1 .47)       –        $ 11 .53       3 .07%     $ 52,727,490         1 .12%       0 .10%       1 .12%       188 .69%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 19

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Small Cap Value Fund (Continued)
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		    Net
 		    Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Investment
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income (Loss)
 		    Reimbursements)
 		         
    Beginning
 		    Income
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     (Loss)     Investments     Operations     Income     Gains     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
                                                                                                                                                         
Class Y Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .31       0 .02       (0 .12)       (0 .10)       (0 .04)       –          (0 .04)       –        $ 8 .17       (1 .27%)     $ 39,125,962         0 .96%       0 .43%       0 .96%       23 .71%    
Year Ended December 31, 2009 (e)
  $ 6 .61       0 .05       1 .69       1 .74       (0 .04)       –          (0 .04)       –        $ 8 .31       26 .60%     $ 30,053,556         1 .00%       0 .67%       1 .00%       62 .55%    
Period Ended December 31, 2008 (f)
  $ 9 .29       0 .06       (2 .65)       (2 .59)       (0 .09)       –          (0 .09)       –        $ 6 .61       (28 .01%)     $ 8,762,016         0 .98%       1 .19%       1 .01%       119 .80%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 27, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
20 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Small Cap Value Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1     Level 2     Level 3     Total      
 
Assets:
                                   
Common Stocks
  $ 267,356,980     $ —     $ —     $ 267,356,980      
 
 
Mutual Fund
    6,626,670       —       —       6,626,670      
 
 
Repurchase Agreement
    —       11,071,861       —       11,071,861      
 
 
U. S. Government Sponsored & Agency Obligation
    —       381,633       —       381,633      
 
 
Total Assets
    273,983,650       11,453,494       —       285,437,144      
 
 
                                     
Liabilities:
                                   
Futures Contracts
    (314,952 )     —       —       (314,952 )    
 
 
Total Liabilities
    (314,952 )     —       —       (314,952 )    
 
 
Total
  $ 273,668,698     $ 11,453,494     $ —     $ 285,122,192      
 
 
* See Statement of Investments for identification of securities by type and industry classification.
 
 
 
22 Semiannual Report 2010

 

 
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                 
        Common Stocks    
 
    Balance as of 12/31/09   $ —      
 
 
    Accrued Accretion/(Amortization)     —      
 
 
    Change in Unrealized Appreciation/(Depreciation)     —      
 
 
    Net Purchases/(Sales)     —      
 
 
    Transfers In/(Out) of Level 3     —      
 
 
    Balance as of 06/30/2010   $ —      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                 
    Statement of Assets & Liabilities Location   Fair Value
 
Liabilities:
               
Futures — Equity contracts*
    Net Assets — Unrealized depreciation from futures contracts     $ (314,952 )
 
 
Total
          $ (314,952 )
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ 101,519      
 
 
    Total   $ 101,519      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (370,648)      
 
 
    Total   $ (370,648)      
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(d)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the
 
 
 
24 Semiannual Report 2010

 

 
 
agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 10,553,277     $ 11,071,861      
 
 
 
(g)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(h)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(i)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
         
Subadvisers        
 
Aberdeen Asset Management, Inc.
       
 
 
Epoch Investment Partners, Inc.
       
 
 
JPMorgan Investment Management, Inc.
       
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $200 million     0.90%      
 
 
    $200 million and more     0.85%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers, $747,424 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions;
 
 
 
2010 Semiannual Report 27

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II and Class III shares and 0.20% of the average daily net assets of Class IV of the Fund.
 
For the six months ended June 30, 2010, NFS received $197,319 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $589.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $127.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $254.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain
 
 
 
28 Semiannual Report 2010

 

 
 
unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $68,853,307 and sales of $82,984,741 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 286,033,657     $ 30,774,186     $ (31,370,699 )   $ (596,513 )    
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 29

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
30 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Small Cap Value Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., Aberdeen Asset Management Inc., Epoch Investment Partners, Inc., and JPMorgan Investment Management, Inc. (“JPMorgan IM”)) and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning first to performance, the Trustees noted that the Fund’s overall performance for Class II shares for each of the one- and three-year periods ended September 30, 2009 was in the fourth quintile of its Peer Group. The Trustees also noted that, for the five-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the third quintile and below the median of its Peer Group. The Trustees noted that, for the five-year period ended September 30, 2009, the Fund’s Class II shares underperformed its benchmark, the Russell 2000 Value Index, but that, for each of the one- and three-year periods ended September 30, 2009, the Fund’s Class II shares outperformed its benchmark. The Trustees noted that the Fund’s underperformance was mainly attributable to the sleeve of the Fund managed by JPMorgan IM, who had been on the watch list since the second quarter of 2009.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the fourth quintile of its Peer Group, and that the Fund’s actual advisory fee was in the fifth quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class II shares were in the fourth quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees also noted that shareholders of the Fund received the benefit of an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. With respect to economies of scale, the Trustees noted that the advisory fee schedule includes a breakpoint, and that that breakpoint has been reached.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 31

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
32 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 33

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
34 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 35

 

 
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AllianceBernstein NVIT Global Fixed Income Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
14
   
Statement of Assets and Liabilities
       
15
   
Statement of Operations
       
16
   
Statements of Changes in Net Assets
       
18
   
Financial Highlights
       
19
   
Notes to Financial Statements
       
28
   
Supplemental Information
       
30
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-GFI (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder AllianceBernstein NVIT Global Fixed Income Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
AllianceBernstein NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Global Fixed Income Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class III Shares
    Actual       1,000.00       1,010.10       4.04       0.81  
      Hypothetical b     1,000.00       1,020.78       4.06       0.81  
 
 
Class VI Shares
    Actual       1,000.00       1,009.20       5.08       1.02  
      Hypothetical b     1,000.00       1,019.74       5.11       1.02  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary AllianceBernstein NVIT Global Fixed Income Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Sovereign Bonds
    46 .7%
Corporate Bonds
    34 .3%
U.S. Treasury Notes
    8 .7%
Commercial Mortgage Backed Securities
    3 .6%
U.S. Treasury Bond
    2 .4%
Mutual Fund
    1 .1%
U.S. Government Sponsored & Agency Obligation
    0 .8%
Municipal Bonds
    0 .5%
Other assets in excess of liabilities
    1 .9%
         
      100 .0%
 
         
Top Industries †    
 
Thrifts & Mortgage Finance
    4 .2%
Diversified Financial Services
    4 .2%
Commercial Banks
    4 .1%
Oil, Gas & Consumable Fuels
    3 .2%
Media
    2 .7%
Insurance
    1 .8%
Metals & Mining
    1 .7%
Health Care Providers & Services
    1 .7%
Diversified Telecommunication Services
    1 .6%
Electric Utilities
    1 .5%
Other Industries
    73 .3%
         
      100 .0%
         
Top Holdings †    
 
U.S. Treasury Note, 2.50%, 3/31/2015
    4 .8%
European Investment Bank, 1.40%, 6/20/2017
    3 .8%
France Government Bond OAT, 4.25%, 4/25/2019
    3 .6%
Bundesrepublik Deutschland, 6.25%, 1/4/2030
    3 .3%
Canada Housing Trust No 1, 3.55%, 9/15/2010
    2 .7%
Norway Treasury Bill, 0.00%, 9/15/2010
    2 .6%
Austria Government Bond, 4.00%, 9/15/2016
    2 .5%
U.S. Treasury Bond, 5.38%, 2/15/2031
    2 .5%
Australian Government Bond, 5.75%, 4/15/2012
    2 .5%
Belgium Government Bond, 3.75%, 9/28/2015
    2 .4%
Other Holdings
    69 .3%
         
      100 .0%
         
Top Countries †    
 
United States
    41 .1%
Canada
    9 .7%
United Kingdom
    7 .9%
France
    6 .4%
Germany
    5 .2%
Netherlands
    4 .3%
Supranational
    4 .2%
Australia
    3 .4%
Norway
    2 .6%
Austria
    2 .5%
Other Countries
    12 .7%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
AllianceBernstein NVIT Global Fixed Income Fund
 
                 
                 
Corporate Bonds 34.3%
                 
      Principal
Amount 		      Market
Value 		 
 
 
AUSTRALIA 0.9%
Capital Markets 0.3%
Macquarie Bank Ltd.,
6.50%, 05/31/17(a)
  AUD 30,000     $ 24,026  
Macquarie Group Ltd.,
7.63%, 08/13/19 (b)
  $ 75,000       84,269  
                 
              108,295  
                 
Commercial Banks 0.3%
Australia & New Zealand Banking Group,
5.25%, 05/20/13
  EUR 63,000       83,660  
National Capital Trust II,
5.49%, 12/31/49 (b)
  $ 18,000       15,662  
                 
              99,322  
                 
Metals & Mining 0.3%
Rio Tinto Finance USA Ltd.,
5.88%, 07/15/13
    100,000       109,565  
                 
              317,182  
                 
 
 
BELGIUM 0.1%
Food & Staples Retailing 0.1%
Delhaize Group SA,
5.88%, 02/01/14
    20,000       22,321  
                 
 
 
BERMUDA 0.4%
Diversified Financial Services 0.3%
Noble Group Ltd.,
6.75%, 01/29/20 (b)
    100,000       97,000  
                 
Machinery 0.1%
Ingersoll-Rand Global Holding Co. Ltd.,
9.50%, 04/15/14
    25,000       30,975  
                 
              127,975  
                 
 
 
CANADA 1.2%
Commercial Banks 0.3%
Royal Bank of Canada,
4.63%, 01/22/18
  EUR 75,000       100,984  
                 
Diversified Telecommunication Services 0.3%
Bell Canada,
4.85%, 06/30/14
  CAD 83,000       82,318  
TELUS Corp.,
4.95%, 05/15/14
    30,000       29,808  
                 
              112,126  
                 
Metals & Mining 0.1%
Teck Resources Ltd.,
9.75%, 05/15/14
  $ 45,000       53,182  
                 
Oil, Gas & Consumable Fuels 0.3%
Husky Energy, Inc.,
7.25%, 12/15/19
    85,000       102,722  
                 
Road & Rail 0.2%
Canadian National Railway Co., 5.55%, 03/01/19
    60,000       68,615  
                 
              437,629  
                 
 
 
CAYMAN ISLANDS 0.5%
Metals & Mining 0.2%
Vale Overseas Ltd.,
6.88%, 11/21/36
    60,000       62,553  
                 
Oil, Gas & Consumable Fuels 0.3%
Petrobras International Finance Co.,
5.75%, 01/20/20
    120,000       120,846  
                 
              183,399  
                 
 
 
COLOMBIA 0.1%
Oil, Gas & Consumable Fuels 0.1%
Ecopetrol SA,
7.63%, 07/23/19
    41,000       46,433  
                 
 
 
FRANCE 0.2%
Diversified Financial Services 0.2%
HSBC Covered Bonds France, 3.38%, 01/20/17
  EUR 50,000       62,942  
                 
 
 
IRELAND 0.7%
Diversified Financial Services 0.4%
TransCapitalInvest Ltd. for OJSC AK Transneft,
7.70%, 08/07/13 (b)
  $ 135,000       146,066  
                 
Insurance 0.3%
XL Group PLC,
5.25%, 09/15/14
    82,000       83,904  
                 
              229,970  
                 
 
 
JAPAN 0.3%
Consumer Finance 0.3%
ORIX Corp.,
4.71%, 04/27/15
    97,000       96,438  
                 
 
 
LUXEMBOURG 1.7%
Commercial Banks 0.4%
RSHB Capital SA for OJSC Russian Agricultural Bank,
7.75%, 05/29/18 (b)
    123,000       128,166  
                 
Construction Materials 0.0%†
Holcim US Finance Sarl & Cie SCS, 6.00%, 12/30/19 (b)
    11,000       11,735  
                 
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
AllianceBernstein NVIT Global Fixed Income Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
LUXEMBOURG (continued)
                 
Diversified Telecommunication Services 0.2%
Telecom Italia Capital SA,
5.25%, 11/15/13
  $ 55,000     $ 56,809  
                 
Industrial Conglomerates 0.2%
Tyco International Finance SA,
8.50%, 01/15/19
    50,000       64,635  
                 
Metals & Mining 0.5%
ArcelorMittal,
9.00%, 02/15/15
    75,000       88,234  
Steel Capital SA,
9.75%, 07/29/13 (b)
    100,000       106,875  
                 
              195,109  
                 
Oil, Gas & Consumable Fuels 0.4%
Gaz Capital SA,
6.21%, 11/22/16 (b)
    130,000       131,144  
                 
              587,598  
                 
 
 
MALAYSIA 0.3%
Oil, Gas & Consumable Fuels 0.3%
Petronas Capital Ltd.,
5.25%, 08/12/19 (b)
    100,000       105,141  
                 
 
 
MEXICO 0.3%
Wireless Telecommunication Services 0.3%
America Movil SAB de CV,
5.00%, 03/30/20 (b)
    100,000       103,317  
                 
 
 
NETHERLANDS 1.1%
Chemicals 0.3%
Bayer Capital Corp. BV,
4.63%, 09/26/14
  EUR 65,000       86,574  
                 
Commercial Banks 0.3%
ABN Amro Bank NV,
4.31%, 12/31/49
    55,000       42,372  
Rabobank Nederland NV,
4.75%, 06/06/22
    55,000       72,717  
                 
              115,089  
                 
Consumer Finance 0.2%
BMW Finance NV,
2.88%, 04/18/13
    60,000       75,034  
                 
Oil, Gas & Consumable Fuels 0.3%
KazMunaiGaz Finance Sub BV,
9.13%, 07/02/18 (b)
  $ 100,000       114,750  
                 
              391,447  
                 
 
 
SPAIN 0.2%
Commercial Banks 0.2%
BBVA Senior Finance SAU,
3.63%, 05/14/12
  EUR 50,000       61,506  
                 
 
 
SWEDEN 0.3%
Thrifts & Mortgage Finance 0.3%
Nordea Hypotek AB,
4.25%, 02/06/14
    75,000       98,617  
                 
 
 
SWITZERLAND 0.5%
Commercial Banks 0.4%
Credit Suisse, London,
6.13%, 08/05/13
    55,000       74,218  
UBS AG,
5.63%, 05/19/14
    45,000       59,831  
                 
              134,049  
                 
Energy Equipment & Services 0.1%
Weatherford International Ltd.,
5.15%, 03/15/13
  $ 40,000       41,904  
                 
              175,953  
                 
 
 
UNITED KINGDOM 2.3%
Commercial Banks 1.2%
Bank of Scotland PLC,
4.75%, 06/08/22
  EUR 100,000       124,669  
Barclays Bank PLC,
4.75%, 12/31/49
    70,000       52,216  
Lloyds TSB Bank PLC,
4.38%, 01/12/15 (b)
  $ 100,000       96,346  
Royal Bank of Scotland PLC (The),
4.88%, 08/25/14 (b)
    100,000       100,291  
Standard Chartered Bank,
5.88%, 09/26/17
  EUR 50,000       65,731  
                 
              439,253  
                 
Diversified Financial Services 0.2%
AngloGold Ashanti Holdings PLC,
5.38%, 04/15/20
  $ 50,000       50,763  
BP Capital Markets PLC,
4.75%, 03/10/19
    14,000       11,629  
                 
              62,392  
                 
Diversified Telecommunication Services 0.3%
British Telecommunications PLC,
9.88%, 12/15/30
    77,000       93,972  
                 
Media 0.3%
WPP Finance UK,
8.00%, 09/15/14
    100,000       117,246  
                 
Thrifts & Mortgage Finance 0.3%
Nationwide Building Society,
4.65%, 02/25/15 (b)
    100,000       102,106  
                 
              814,969  
                 
                 
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
UNITED STATES 23.2%
Airlines 0.2%
Southwest Airlines Co.
               
5.25%, 10/01/14
  $ 35,000     $ 36,840  
5.75%, 12/15/16
    35,000       36,994  
                 
              73,834  
                 
Auto Components 0.1%
Goodyear Tire and Rubber Co. (The),
9.00%, 07/01/15
    30,000       30,825  
                 
Building Products 0.4%
Masco Corp.,
6.13%, 10/03/16
    68,000       65,794  
Owens Corning,
9.00%, 06/15/19
    70,000       82,766  
                 
              148,560  
                 
Capital Markets 0.1%
Goldman Sachs Group, Inc. (The),
7.50%, 02/15/19
    45,000       50,300  
                 
Chemicals 0.3%
Dow Chemical Co. (The),
8.55%, 05/15/19
    72,000       88,136  
Eastman Chemical Co.,
5.50%, 11/15/19
    20,000       21,529  
                 
              109,665  
                 
Commercial Banks 1.0%
Commerzbank Capital Funding Trust I,
5.01%, 12/31/49 (c)
  EUR 100,000       63,588  
U.S. Bank, NA,
4.38%, 02/28/17 (a)
    50,000       60,592  
Wells Fargo & Co.,
4.38%, 01/31/13
  $ 200,000       211,434  
                 
              335,614  
                 
Commercial Services & Supplies 0.4%
ACCO Brands Corp.,
10.63%, 03/15/15
    30,000       32,550  
Republic Services, Inc.,
5.25%, 11/15/21 (b)
    97,000       102,059  
                 
              134,609  
                 
Communications Equipment 0.0%†
CCO Holdings LLC / CCO Holdings Capital Corp.,
7.88%, 04/30/18 (b)
    12,000       12,060  
CCO Holdings LLC/CCO Holdings Capital Corp.,
8.13%, 04/30/20 (b)
    5,000       5,113  
                 
              17,173  
                 
Computers & Peripherals 0.1%
Dell, Inc.,
5.63%, 04/15/14
    45,000       50,458  
                 
Consumer Finance 0.7%
American Express Co.,
7.25%, 05/20/14
    93,000       105,707  
Nissan Motor Acceptance Corp.,
4.50%, 01/30/15 (b)
    66,000       68,100  
SLM Corp.,
8.45%, 06/15/18
    60,000       55,369  
                 
              229,176  
                 
Diversified Financial Services 2.6%
Bank of America Corp.,
4.90%, 05/01/13
    275,000       288,113  
Citigroup, Inc.,
5.50%, 04/11/13
    220,000       228,691  
General Electric Capital Corp.,
5.63%, 05/01/18
    135,000       143,466  
Harley-Davidson Funding Corp.,
5.75%, 12/15/14 (b)
    59,000       60,871  
JPMorgan Chase & Co.,
6.75%, 02/01/11
    125,000       129,065  
Teco Finance, Inc.
               
4.00%, 03/15/16
    20,000       20,310  
5.15%, 03/15/20
    25,000       26,058  
Textron Financial Corp.,
5.40%, 04/28/13
    11,000       11,438  
                 
              908,012  
                 
Diversified Telecommunication Services 0.8%
AT&T, Inc.,
5.60%, 05/15/18
    150,000       166,862  
Embarq Corp.,
7.08%, 06/01/16
    70,000       74,624  
Windstream Corp.,
8.63%, 08/01/16
    48,000       48,360  
                 
              289,846  
                 
Electric Utilities 1.5%
Allegheny Energy Supply Co. LLC,
5.75%, 10/15/19 (b)
    105,000       104,223  
CMS Energy Corp.,
8.75%, 06/15/19
    43,000       47,476  
Edison Mission Energy,
7.00%, 05/15/17
    77,000       49,280  
FirstEnergy Solutions Corp.,
6.05%, 08/15/21
    77,000       78,536  
NiSource Finance Corp.,
6.80%, 01/15/19
    75,000       83,496  
Oncor Electric Delivery Co. LLC,
5.95%, 09/01/13
    90,000       99,101  
Southern Co. (The),
4.15%, 05/15/14
    39,000       41,138  
Union Electric Co.,
6.70%, 02/01/19
    15,000       17,437  
                 
              520,687  
                 
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
AllianceBernstein NVIT Global Fixed Income Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
UNITED STATES (continued)
                 
Energy Equipment & Services 0.6%
Antero Resources Finance Corp.,
9.38%, 12/01/17 (b)
  $ 14,000     $ 14,000  
EQT Corp.,
8.13%, 06/01/19
    46,000       54,112  
Hess Corp.,
8.13%, 02/15/19
    34,000       42,383  
Marathon Oil Corp.,
7.50%, 02/15/19
    25,000       29,978  
Nabors Industries, Inc.,
6.15%, 02/15/18
    71,000       76,127  
                 
              216,600  
                 
Food & Staples Retailing 0.5%
Ahold Finance USA LLC,
6.88%, 05/01/29
    75,000       85,933  
CVS Caremark Corp.,
6.60%, 03/15/19
    35,000       40,729  
SUPERVALU, Inc.,
8.00%, 05/01/16
    50,000       49,500  
                 
              176,162  
                 
Food Products 0.5%
Bunge Ltd. Finance Corp.,
8.50%, 06/15/19
    68,000       81,204  
Kraft Foods, Inc.,
6.13%, 08/23/18
    75,000       85,462  
                 
              166,666  
                 
Gas Utilities 0.3%
DCP Midstream LLC
               
5.35%, 03/15/20 (b)
    15,000       15,337  
9.75%, 03/15/19 (b)
    25,000       32,153  
Dynegy Holdings, Inc.,
8.38%, 05/01/16
    68,000       53,805  
                 
              101,295  
                 
Health Care Equipment & Supplies 0.3%
Bausch & Lomb, Inc.,
9.88%, 11/01/15
    40,000       41,100  
Baxter International, Inc.,
5.38%, 06/01/18
    60,000       68,917  
                 
              110,017  
                 
Health Care Providers & Services 1.6%
CIGNA Corp.,
5.13%, 06/15/20
    60,000       62,449  
Coventry Health Care, Inc.
               
5.95%, 03/15/17
    15,000       14,328  
6.13%, 01/15/15
    10,000       10,211  
6.30%, 08/15/14
    55,000       58,061  
Express Scripts, Inc.,
5.25%, 06/15/12
    75,000       80,125  
HCA, Inc.,
8.50%, 04/15/19
    10,000       10,600  
Humana, Inc.
               
6.30%, 08/01/18
    10,000       10,683  
6.45%, 06/01/16
    10,000       10,864  
7.20%, 06/15/18
    63,000       70,325  
McKesson Corp.,
5.25%, 03/01/13
    90,000       97,135  
UnitedHealth Group, Inc.,
6.00%, 02/15/18
    30,000       33,451  
Universal Health Services, Inc.,
7.13%, 06/30/16
    60,000       60,884  
WellPoint, Inc.
               
5.88%, 06/15/17
    20,000       22,281  
7.00%, 02/15/19
    23,000       27,282  
                 
              568,679  
                 
Hotels, Restaurants & Leisure 0.2%
Wyndham Worldwide Corp.,
6.00%, 12/01/16
    69,000       66,942  
                 
Household Durables 0.7%
Mohawk Industries, Inc.,
6.88%, 01/15/16
    66,000       67,155  
Newell Rubbermaid, Inc.,
10.60%, 04/15/19
    50,000       69,012  
Toll Brothers Finance Corp.,
8.91%, 10/15/17
    25,000       27,880  
Whirlpool Corp.,
8.60%, 05/01/14
    73,000       86,068  
                 
              250,115  
                 
Household Products 0.3%
Jarden Corp.,
7.50%, 01/15/20
    100,000       97,750  
                 
Independent Power Producers & Energy Traders 0.3%
AES Corp. (The)
               
7.75%, 03/01/14
    24,000       24,420  
7.75%, 10/15/15
    5,000       5,063  
RRI Energy, Inc.,
7.63%, 06/15/14
    65,000       64,025  
                 
              93,508  
                 
Information Technology Services 0.6%
Electronic Data Systems Corp.,
6.00%, 08/01/13
    27,000       30,444  
Western Union Co. (The),
5.93%, 10/01/16
    150,000       168,317  
                 
              198,761  
                 
Insurance 1.5%
Guardian Life Insurance Co. of America,
7.38%, 09/30/39 (b)
    35,000       38,721  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
UNITED STATES (continued)
Insurance (continued)
                 
Hartford Financial Services Group, Inc.
               
4.00%, 03/30/15
  $ 47,000     $ 46,144  
6.30%, 03/15/18
    40,000       41,443  
ING Capital Funding TR III,
8.44%, 12/31/49
    40,000       34,800  
Liberty Mutual Group, Inc.,
7.80%, 03/15/37 (b)
    37,000       30,340  
Lincoln National Corp.,
8.75%, 07/01/19
    19,000       23,286  
Markel Corp.,
7.13%, 09/30/19
    27,000       29,622  
Massachusetts Mutual Life Insurance Co.,
8.88%, 06/01/39 (b)
    45,000       59,877  
Metropolitan Life Global Funding I,
5.13%, 06/10/14 (b)
    100,000       108,632  
Principal Financial Group, Inc.,
7.88%, 05/15/14
    50,000       57,820  
Prudential Financial, Inc.
               
5.15%, 01/15/13
    46,000       48,683  
6.20%, 01/15/15
    10,000       11,005  
7.38%, 06/15/19
    5,000       5,790  
                 
              536,163  
                 
Machinery 0.3%
Case New Holland, Inc.
               
7.13%, 03/01/14
    24,000       24,840  
7.88%, 12/01/17 (b)
    26,000       26,195  
Parker Hannifin Corp.,
5.50%, 05/15/18
    37,000       41,958  
                 
              92,993  
                 
Media 2.3%
CBS Corp.,
8.20%, 05/15/14
    65,000       76,630  
Comcast Corp.
               
5.30%, 01/15/14
    77,000       84,517  
5.90%, 03/15/16
    40,000       45,078  
CSC Holdings LLC,
8.50%, 04/15/14 (b)
    28,000       29,190  
DirecTV Holdings LLC/DirecTV Financing Co., Inc.,
4.75%, 10/01/14
    30,000       31,772  
Interpublic Group of Cos., Inc. (The),
6.25%, 11/15/14
    33,000       33,165  
Time Warner Cable, Inc.,
7.50%, 04/01/14
    125,000       145,237  
Time Warner, Inc.,
7.63%, 04/15/31
    125,000       150,372  
Univision Communications, Inc.,
12.00%, 07/01/14 (b)
    7,000       7,507  
Viacom, Inc.,
5.63%, 09/15/19
    76,000       83,254  
Walt Disney Co. (The),
5.50%, 03/15/19
    100,000       115,253  
                 
              801,975  
                 
Metals & Mining 0.5%
Alcoa, Inc.,
6.75%, 07/15/18
    30,000       30,276  
Freeport-McMoRan Copper & Gold, Inc.,
8.38%, 04/01/17
    75,000       82,500  
United States Steel Corp.,
6.05%, 06/01/17
    50,000       47,500  
                 
              160,276  
                 
Multiline Retail 0.2%
JC Penney Co., Inc.,
5.65%, 06/01/20
    70,000       68,425  
                 
Multi-Utilities 0.7%
Ameren Corp.,
8.88%, 05/15/14
    54,000       62,599  
DTE Energy Co.,
7.63%, 05/15/14
    28,000       32,722  
NRG Energy, Inc.,
7.25%, 02/01/14
    65,000       65,894  
Sempra Energy,
6.50%, 06/01/16
    75,000       86,062  
                 
              247,277  
                 
Office Electronics 0.2%
Xerox Corp.
               
4.25%, 02/15/15
    20,000       20,706  
8.25%, 05/15/14
    30,000       35,164  
                 
              55,870  
                 
Oil, Gas & Consumable Fuels 1.3%
Anadarko Petroleum Corp.,
5.95%, 09/15/16
    72,000       61,970  
ConocoPhillips,
6.00%, 01/15/20
    80,000       93,745  
Noble Energy, Inc.,
8.25%, 03/01/19
    75,000       90,769  
Tesoro Corp.,
6.50%, 06/01/17
    33,000       30,195  
Valero Energy Corp.
               
6.88%, 04/15/12
    50,000       53,831  
9.38%, 03/15/19
    50,000       60,565  
Williams Cos., Inc. (The),
7.88%, 09/01/21
    22,000       25,214  
Williams Partners LP,
5.25%, 03/15/20 (b)
    44,000       44,993  
                 
              461,282  
                 
                 
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
AllianceBernstein NVIT Global Fixed Income Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
UNITED STATES (continued)
                 
Paper & Forest Products 0.5%
International Paper Co.,
7.95%, 06/15/18
  $ 50,000     $ 59,529  
Weyerhaeuser Co.,
7.38%, 03/15/32
    100,000       98,791  
                 
              158,320  
                 
Pharmaceuticals 0.3%
Mylan, Inc.
               
7.63%, 07/15/17 (b)
    10,000       10,200  
7.88%, 07/15/20 (b)
    24,000       24,480  
Pfizer, Inc.,
4.75%, 06/03/16
  EUR 50,000       67,820  
                 
              102,500  
                 
Real Estate Investment Trusts (REITs) 0.3%
WEA Finance LLC/WT Finance Aust Pty Ltd.,
5.75%, 09/02/15 (b)
  $ 100,000       108,098  
                 
Road & Rail 0.4%
Con-way, Inc.,
6.70%, 05/01/34
    54,000       53,929  
Hertz Corp.,
8.88%, 01/01/14
    48,000       48,600  
Ryder System, Inc.
               
5.85%, 11/01/16
    24,000       26,481  
7.20%, 09/01/15
    20,000       23,196  
                 
              152,206  
                 
Software 0.4%
Oracle Corp.,
5.75%, 04/15/18
    120,000       138,921  
                 
Tobacco 0.2%
Altria Group, Inc.,
9.70%, 11/10/18
    45,000       56,987  
                 
Wireless Telecommunication Services 0.0%†
Cricket Communications, Inc.,
7.75%, 05/15/16
    15,000       15,300  
                 
              8,101,847  
                 
         
Total Corporate Bonds
(cost $10,998,207)
    11,964,684  
         
                 
                 
Commercial Mortgage Backed Securities 3.6%
UNITED STATES 3.6%
Banc of America Commercial Mortgage, Inc., Series 2006-5, Class A4,
5.41%, 09/10/47
    155,000       162,196  
Commercial Mortgage Pass Through Certificates, Series 2007-C9, Class A4,
6.01%, 12/10/49 (a)
    138,238       142,881  
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB16, Class A4,
5.55%, 05/12/45
    200,000       209,659  
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A4,
5.16%, 02/15/31
    125,000       130,031  
LB-UBS Commercial Mortgage Trust, Series 2007-C1, Class A4,
5.42%, 02/15/40
    180,000       179,202  
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A4,
6.02%, 06/12/50 (a)
    125,000       127,939  
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-3, Class A4,
5.41%, 07/12/46 (a)
    155,000       159,361  
Morgan Stanley Capital I, Series 2007-T27, Class A4,
5.80%, 06/11/42 (a)
    125,000       130,949  
                 
         
Total Commercial Mortgage Backed Securities (cost $911,249)
    1,242,218  
         
                 
                 
Municipal Bonds 0.5%
UNITED STATES 0.5%
Municipal Bonds 0.5%
San Diego County Water Authority,
6.14%, 05/01/49
    75,000       81,260  
State of California,
7.63%, 03/01/40
    80,000       86,438  
                 
         
Total Municipal Bonds (cost $156,673)
    167,698  
         
                 
                 
Sovereign Bonds 46.7%
AUSTRALIA 2.4%
Australian Government Bond,
5.75%, 04/15/12
  AUD 974,000       838,115  
                 
 
 
AUSTRIA 2.5%
Austria Government Bond,
4.00%, 09/15/16 (b)
  EUR 650,000       868,933  
                 
 
 
BELGIUM 2.4%
Belgium Government Bond,
3.75%, 09/28/15
    641,000       831,834  
                 
 
 
CANADA 8.3%
Canada Housing Trust No 1,
3.55%, 09/15/10 (b)
  CAD 990,000       935,308  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
CANADA (continued)
                 
Canadian Government Bond
               
1.50%, 03/01/12
  CAD 86,000     $ 81,075  
4.00%, 06/01/16
    719,000       728,456  
4.25%, 06/01/18
    410,000       421,951  
Province of British Columbia, Canada,
       
4.25%, 06/18/14
    125,000       125,095  
Province of Ontario, Canada,
4.75%, 06/02/13
    232,000       233,347  
Province of Quebec Canada
               
4.25%, 02/27/13
  EUR 155,000       201,592  
5.25%, 10/01/13
  CAD 153,000       156,577  
                 
              2,883,401  
                 
 
 
COLOMBIA 0.5%
Colombia Government International Bond,
7.75%, 04/14/21
  COP 320,000,000       180,998  
                 
 
 
CROATIA 0.3%
Croatia Government International Bond,
6.75%, 11/05/19 (b)
  $ 100,000       104,685  
                 
 
 
FRANCE 6.1%
Compagnie de Financement Foncier
               
4.38%, 11/19/14
  EUR 100,000       132,704  
4.63%, 09/23/17
    19,000       25,596  
France Government Bond OAT
               
4.00%, 10/25/13
    330,000       438,636  
3.50%, 04/25/15
    233,000       305,419  
4.25%, 04/25/19
    898,000       1,215,838  
                 
              2,118,193  
                 
 
 
GERMANY 5.1%
Bundesrepublik Deutschland
               
3.75%, 07/04/13
    440,000       584,225  
3.75%, 01/04/17
    47,000       63,720  
6.25%, 01/04/30
    645,000       1,129,457  
                 
              1,777,402  
                 
 
 
HUNGARY 0.3%
Hungary Government Bond,
6.75%, 02/24/17
  HUF 29,310,000       119,643  
                 
 
 
JAPAN 0.7%
Japan Finance Corp. for Municipal Enterprises,
2.00%, 05/09/16
  JPY 20,000,000       245,790  
                 
 
 
LITHUANIA 0.3%
Lithuania Government International Bond,
6.75%, 01/15/15 (b)
  $ 100,000       104,803  
                 
NETHERLANDS 3.2%
Netherlands Government Bond
               
2.75%, 01/15/15
    350,000       448,912  
4.50%, 07/15/17
    184,000       257,272  
7.50%, 01/15/23
    218,000       391,795  
                 
              1,097,979  
                 
 
 
NEW ZEALAND 0.6%
New Zealand Government Bond,
6.50%, 04/15/13
  NZD 302,000       219,639  
                 
 
 
NORWAY 2.5%
Norway Treasury Bill,
0.00%, 09/15/10
  NOK 5,763,000       881,464  
                 
 
 
PERU 0.1%
Republic of Peru,
7.13%, 03/30/19
  $ 31,000       36,657  
                 
 
 
POLAND 0.3%
Poland Government International Bond,
4.68%, 10/15/19
  EUR 100,000       121,612  
                 
 
 
SUPRANATIONAL 4.1%
European Bank for Reconstruction & Development,
9.25%, 09/10/12
  BRL 235,000       129,472  
European Investment Bank,
1.40%, 06/20/17
  JPY 110,600,000       1,299,221  
                 
              1,428,693  
                 
 
 
SWEDEN 1.6%
Swedish Government Bond,
4.50%, 08/12/15
  SEK 3,875,000       552,276  
                 
 
 
UNITED KINGDOM 5.4%
United Kingdom Gilt
               
5.25%, 06/07/12
  GBP 135,000       218,522  
5.00%, 03/07/18
    372,545       634,351  
4.50%, 03/07/19
    378,000       619,863  
4.75%, 12/07/30
    253,000       410,686  
                 
              1,883,422  
                 
         
Total Sovereign Bonds (cost $16,415,407)
    16,295,539  
         
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
AllianceBernstein NVIT Global Fixed Income Fund (Continued)
 
                 
                 
                 
U.S. Government Sponsored & Agency Obligation 0.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
UNITED STATES 0.8%
Federal Home Loan Mortgage Corp.,
4.75%, 01/19/16
  $ 246,000     $ 276,446  
                 
         
Total U.S. Government Sponsored & Agency Obligation (cost $265,990)
    276,446  
         
                 
                 
U.S. Treasury Bond 2.4%
UNITED STATES 2.4%
US Treasuries 2.4%
U.S. Treasury Bond,
5.38%, 02/15/31
    686,000       843,994  
                 
         
Total U.S. Treasury Bond
(cost $760,212)
    843,994  
         
                 
                 
U.S. Treasury Notes 8.7%
UNITED STATES 8.7%
US Treasuries 8.7%
U.S. Treasury Note
               
2.50%, 03/31/15
    1,592,000       1,649,710  
2.75%, 02/15/19
    280,000       278,950  
3.88%, 05/15/18
    480,000       524,625  
4.50%, 11/15/15
    508,000       576,739  
                 
              3,030,024  
                 
         
Total U.S. Treasury Notes (cost $2,949,044)
    3,030,024  
         
                 
                 
Mutual Fund 1.1%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 1.1%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (d)
    369,098       369,098  
                 
         
Total Mutual Fund (cost $369,098)
    369,098  
         
         
Total Investments (cost $32,825,880) (e) — 98.1%
    34,189,701  
         
Other assets in excess of liabilities — 1.9%
    668,727  
         
         
NET ASSETS — 100.0%
  $ 34,858,428  
         
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $4,258,746 which represents 12.22% of net assets.
 
(c) Perpetual bond security. The maturity date reflects the next call date.
 
(d) Represents 7-day effective yield as of June 30, 2010.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
AG Stock Corporation
 
BV Private Limited Liability Company
 
LLC Limited Liability Company
 
LP Limited Partnership
 
Ltd. Limited
 
NA National Association
 
NV Public Traded Company
 
OJSC Open Joint Stock Company
 
PLC Public Limited Company
 
SA Stock Company
 
SAB de CV Public Traded Company
 
SAU Single Shareholder Corporation
 
UK United Kingdom
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

 
 
 
At June 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Short Contracts:
                       
Australian Dollar   JPMorgan Chase Bank   8/26/10     (57,039 )   $ (48,935 )   $ (47,699 )   $ 1,236  
British Pound
  JPMorgan Chase Bank   7/26/10     (127,857 )     (187,431 )     (191,032 )     (3,601 )
British Pound
  JPMorgan Chase Bank   7/26/10     (75,970 )     (111,282 )     (113,506 )     (2,224 )
Canadian Dollar
  JPMorgan Chase Bank   7/22/10     (529,589 )     (516,109 )     (497,415 )     18,694  
Canadian Dollar
  JPMorgan Chase Bank   7/22/10     (1,252,261 )     (1,221,837 )     (1,176,181 )     45,656  
Euro
  JPMorgan Chase Bank   8/25/10     (1,017,396 )     (1,246,692 )     (1,244,388 )     2,304  
Hungarian Forint
  JPMorgan Chase Bank   8/05/10     (21,325,818 )     (94,158 )     (91,002 )     3,156  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (21,298,556 )     (228,731 )     (240,943 )     (12,212 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (8,683,142 )     (96,485 )     (98,230 )     (1,745 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (53,545,018 )     (578,458 )     (605,737 )     (27,279 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (10,474,242 )     (116,777 )     (118,491 )     (1,714 )
New Zealand Dollar
  JPMorgan Chase Bank   7/29/10     (286,993 )     (192,750 )     (196,487 )     (3,737 )
Norwegian Krone
  JPMorgan Chase Bank   9/02/10     (1,138,999 )     (176,505 )     (174,457 )     2,048  
Swedish Krona
  JPMorgan Chase Bank   8/16/10     (7,313,606 )     (916,102 )     (937,949 )     (21,847 )
                                         
Total Short Contracts
  $ (5,732,252 )   $ (5,733,517 )   $ (1,265 )
                         
Long Contracts:
                       
British Pound   JPMorgan Chase Bank   7/26/10     42,150     $ 61,607     $ 62,976     $ 1,369  
British Pound
  JPMorgan Chase Bank   7/26/10     75,102       108,628       112,211       3,583  
Canadian Dollar
  JPMorgan Chase Bank   7/22/10     91,039       87,761       85,508       (2,253 )
Danish Krone
  JPMorgan Chase Bank   8/06/10     1,069,955       175,604       175,663       59  
Euro
  JPMorgan Chase Bank   8/25/10     42,454       52,660       51,926       (734 )
Euro
  JPMorgan Chase Bank   8/25/10     42,431       51,934       51,898       (36 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     338,960,747       3,639,456       3,834,553       195,097  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     14,112,683       156,460       159,652       3,192  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     10,672,570       116,627       120,735       4,108  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     25,555,579       275,790       289,102       13,312  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     9,455,530       104,163       106,967       2,804  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     774,199       8,751       8,758       7  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     54,669,155       593,681       618,454       24,773  
Korean Won
  JPMorgan Chase Bank   7/29/10     1,126,193,736       1,010,039       920,743       (89,296 )
Korean Won
  JPMorgan Chase Bank   7/29/10     123,733,040       99,841       101,161       1,320  
Malaysian Ringgit
  JPMorgan Chase Bank   7/29/10     778,744       242,630       240,232       (2,398 )
Mexican Peso
  JPMorgan Chase Bank   8/06/10     858,249       66,190       66,120       (70 )
Polish Zlotych
  JPMorgan Chase Bank   7/14/10     226,614       69,904       66,744       (3,160 )
Singapore Dollar
  JPMorgan Chase Bank   9/01/10     64,237       46,414       45,917       (497 )
South African Rand
  JPMorgan Chase Bank   7/14/10     377,967       48,953       49,140       187  
Swedish Krona
  JPMorgan Chase Bank   8/16/10     89,387       11,636       11,464       (172 )
Swedish Krona
  JPMorgan Chase Bank   8/16/10     4,290,298       555,605       550,218       (5,387 )
Swiss Franc
  JPMorgan Chase Bank   8/11/10     240,564       207,490       223,334       15,844  
Taiwan Dollar
  JPMorgan Chase Bank   7/29/10     3,293,355       106,238       102,590       (3,648 )
                                         
Total Long Contracts
  $ 7,898,062     $ 8,056,066     $ 158,004  
                         
 
 
 
2010 Semiannual Report 13

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      AllianceBernstein
 		 
      NVIT Global Fixed
 		 
      Income Fund  
       
Assets:
         
Investments, at value (cost $32,825,880)
    $ 34,189,701  
Foreign currencies, at value (cost $41,702)
      41,738  
Interest and dividends receivable
      456,487  
Receivable for investments sold
      45,892  
Receivable for capital shares issued
      102,170  
Reclaims receivable
      1,643  
Unrealized appreciation on forward foreign currency contracts (Note 2)
      338,749  
Prepaid expenses and other assets
      2,188  
           
Total Assets
      35,178,568  
           
Liabilities:
         
Payable for investments purchased
      8,756  
Payable for capital shares redeemed
      3,582  
Unrealized depreciation on forward foreign currency contracts (Note 2)
      182,010  
Accrued expenses and other payables:
         
Investment advisory fees
      1,068  
Fund administration fees
      7,199  
Distribution fees
      70  
Administrative servicing fees
      85,916  
Accounting and transfer agent fees
      7,600  
Custodian fees
      206  
Compliance program costs (Note 3)
      188  
Professional fees
      11,167  
Printing fees
      11,816  
Other
      562  
           
Total Liabilities
      320,140  
           
Net Assets
    $ 34,858,428  
           
Represented by:
         
Capital
    $ 32,231,735  
Accumulated undistributed net investment income
      635,043  
Accumulated net realized gains from investment and foreign currency transactions
      491,299  
Net unrealized appreciation/(depreciation) from investments
      1,363,821  
Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      156,739  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (20,209 )
           
Net Assets
    $ 34,858,428  
           
Net Assets:
         
Class III Shares
    $ 34,503,302  
Class VI Shares
      355,126  
           
Total
    $ 34,858,428  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class III Shares
      3,118,402  
Class VI Shares
      32,142  
           
Total
      3,150,544  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class III Shares
    $ 11.06  
Class VI Shares
    $ 11.05  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      AllianceBernstein
 		 
      NVIT Global Fixed
 		 
      Income Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 716,157  
Dividend income
      415  
           
Total Income
      716,572  
           
EXPENSES:
         
Investment advisory fees
      91,682  
Fund administration fees
      18,652  
Distribution fees Class VI Shares
      320  
Administrative servicing fees Class III Shares
      37,843  
Administrative servicing fees Class VI Shares
      269  
Professional fees
      11,778  
Printing fees
      7,988  
Trustee fees
      583  
Custodian fees
      611  
Accounting and transfer agent fees
      11,881  
Compliance program costs (Note 3)
      59  
Other
      1,361  
           
Total expenses before earnings credit and expenses waived and reimbursed
      183,027  
Distribution fees voluntarily waived — Class VI (Note 3)
      (29 )
Earnings credit (Note 5)
      (6 )
Expenses reimbursed by adviser (Note 3)
      (47,865 )
           
Net Expenses
      135,127  
           
NET INVESTMENT INCOME
      581,445  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      448,257  
Net realized gains from forward and foreign currency transactions (Note 2)
      49,369  
           
Net realized gains from investment, forward foreign currency and foreign currency transactions
      497,626  
           
Net change in unrealized appreciation/(depreciation) from investments
      (1,020,224 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      279,346  
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (18,704 )
           
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (759,582 )
           
Net realized/unrealized losses from investments, forward foreign currency contracts, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (261,956 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 319,489  
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Statements of Changes in Net Assets
 
                     
      AllianceBernstein NVIT
 		 
      Global Fixed Income Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a) 
 		 
Operations:
                   
Net investment income
    $ 581,445       $ 759,123  
Net realized gains from investment and foreign currency transactions
      497,626         806,920  
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (759,582 )       2,259,933  
                     
Change in net assets resulting from operations
      319,489         3,825,976  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class III
      –         (1,151,302 )
Class VI
      –         (4,621 )
Net realized gains:
                   
Class III
      (217,714 )       (142,275 )
Class VI
      (2,245 )       (615 )
                     
Change in net assets from shareholder distributions
      (219,959 )       (1,298,813 )
                     
Change in net assets from capital transactions
      2,596,427         29,635,308  
                     
Change in net assets
      2,695,957         32,162,471  
                     
                     
Net Assets:
                   
Beginning of period
      32,162,471         –  
                     
End of period
    $ 34,858,428         $32,162,471  
                     
Accumulated undistributed net investment income at end of period
    $ 635,043       $ 53,598  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class III Shares
                   
Proceeds from shares issued
    $ 3,028,595       $ 28,522,160  
Dividends reinvested
      217,714         1,293,577  
Cost of shares redeemed
      (867,503 )       (321,594 )
                     
Total Class III
      2,378,806         29,494,143  
                     
Class VI Shares
                   
Proceeds from shares issued
      226,845         148,720  
Dividends reinvested
      2,245         5,236  
Cost of shares redeemed
      (11,469 )       (12,791 )
                     
Total Class VI
      217,621         141,165  
                     
Change in net assets from capital transactions
    $ 2,596,427       $ 29,635,308  
                     
                     
SHARE TRANSACTIONS:
                   
Class III Shares
                   
Issued
      271,817         2,816,379  
Reinvested
      19,846         117,348  
Redeemed
      (78,079 )       (28,909 )
                     
Total Class III Shares
      213,584         2,904,818  
                     
Amounts designated as “–” are zero or have been rounded to zero.
(a)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
16 Semiannual Report 2010

 

 
 
                     
      AllianceBernstein NVIT
 		 
      Global Fixed Income Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a) 
 		 
                     
SHARE TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Issued
      20,448         13,183  
Reinvested
      205         473  
Redeemed
      (1,039 )       (1,128 )
                     
Total Class VI Shares
      19,614         12,528  
                     
Total change in shares
      233,198         2,917,346  
                     
 
 
(a) For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 17

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
AllianceBernstein NVIT Global Fixed Income Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class III Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .02       0 .19       (0 .08)       0 .11       –          (0 .07)       (0 .07)     $ 11 .06       1 .01%     $ 34,503,302         0 .81%       3 .49%       1 .10%       25 .79%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .29       1 .20       1 .49       (0 .42)       (0 .05)       (0 .47)     $ 11 .02       14 .88%     $ 32,024,467         0 .83%       3 .42%       1 .07%       62 .22%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 11 .02       0 .18       (0 .08)       0 .10       –          (0 .07)       (0 .07)     $ 11 .05       0 .92%     $ 355,126         1 .02%       3 .26%       1 .36%       25 .79%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .30       1 .19       1 .49       (0 .42)       (0 .05)       (0 .47)     $ 11 .02       14 .88%     $ 138,004         0 .85%       3 .50%       3 .47%       62 .22%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
18 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the AllianceBernstein NVIT Global Fixed Income Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Commercial Mortgage Backed Securities
  $ —     $ 1,242,218     $ —     $ 1,242,218      
 
 
Corporate Bonds
    —       11,964,684       —       11,964,684      
 
 
Forward Currency Contracts
    —       338,749       —       338,749      
 
 
Municipal Bonds
    —       167,698       —       167,698      
 
 
Mutual Fund
    369,098       —       —       369,098      
 
 
Sovereign Bonds
    —       16,295,539       —       16,295,539      
 
 
U.S. Government Sponsored & Agency Obligation
    —       276,446       —       276,446      
 
 
U.S. Treasury Bond
    —       843,994       —       843,994      
 
 
U.S. Treasury Notes
    —       3,030,024       —       3,030,024      
 
 
Total Assets
    369,098       34,159,352       —       34,528,450      
 
 
Liabilities:
                                   
Forward Currency Contracts
    —       (182,010 )     —       (182,010 )    
 
 
Total Liabilities
    —       (182,010 )     —       (182,010 )    
 
 
Total
  $ 369,098     $ 33,977,342     $ —     $ 34,346,440      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
 
 
20 Semiannual Report 2010

 

 
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) on forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from forwards and foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                 
    Statement of Assets & Liabilities Location   Fair Value    
 
Assets:
               
 
 
Forward foreign currency contracts
  Unrealized appreciation on forward foreign currency contracts   $ 338,749      
 
 
Total
      $ 338,749      
 
 
Liabilities:
               
 
 
Forward foreign currency contracts
  Unrealized depreciation on forward foreign currency contracts   $ 182,010      
 
 
Total
      $ 182,010      
 
 
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Forward foreign currency contracts   $ 96,621      
 
 
    Total   $ 96,621      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Forward Foreign currency contracts   $ 279,346      
 
 
    Total   $ 279,346      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(f)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2009 annual financial statements, the 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. The 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
 
 
 
22 Semiannual Report 2010

 

 
 
technical merits of the position. If such a tax position taken by the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable year 2009 remains subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(g)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected AllianceBernstein L.P. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.55%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $50,008 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.58% for Class III and Class VI shares of the Fund until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                             
    Period Ended
 		  Six Months Ended
 		       
    2009 Amount (a)   June 30, 2010   Total    
 
    $ 54,551     $ 47,865     $ 102,416      
 
 
(a) For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
24 Semiannual Report 2010

 

 
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class III and Class VI shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $38,112 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $59.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class VI shares of the Fund. Until April 30, 2010, the Trust and NFD had entered into a written contract waiving 0.04% of these fees for Class VI shares of the Fund. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $29.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III and Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III and Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III and Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,000.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $529.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $10,454,458 and sales of $8,379,759 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $5,831,884 and sales of $3,905,461 of U.S. Government securities.
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
26 Semiannual Report 2010

 

 
 
9. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 32,833,606     $ 2,154,279     $ (798,184 )   $ 1,356,095      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 27

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
28 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
AllianceBernstein NVIT Global Fixed Income Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and AllianceBernstein L.P. (“AllianceBernstein”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class III shares was in the first quintile of its Peer Group for the period since the Fund’s inception in March 2009 through September 30, 2009. The Trustees noted that, for the three-month period ended September 30, 2009, and for the period since the Fund’s inception in March 2009 through September 30, 2009, the Fund outperformed its benchmark, the Barclays Capital Global Aggregate Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration AllianceBernstein’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of AllianceBernstein.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class III shares were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the Fund does not have breakpoints included in the Fund’s investment advisory fee schedule because the advisory fee is very competitive within the Fund’s Peer Group.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 29

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 31

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
32 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 33

 

 

American Century NVIT Multi Cap Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
8
   
Statement of Assets and Liabilities
       
9
   
Statement of Operations
       
10
   
Statements of Changes in Net Assets
       
12
   
Financial Highlights
       
13
   
Notes to Financial Statements
       
23
   
Supplemental Information
       
25
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MCV (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder American Century NVIT Multi Cap Value Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
American Century NVIT Multi Cap Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       940.10       4.43       0.92  
      Hypothetical b     1,000.00       1,020.23       4.61       0.92  
 
 
Class II Shares
    Actual       1,000.00       939.30       5.24       1.09  
      Hypothetical b     1,000.00       1,019.39       5.46       1.09  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary American Century NVIT Multi Cap Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    98 .4%
Mutual Fund
    1 .6%
Other assets in excess of liabilities ‡
    0 .0%
         
      100 .0%
         
Top Industries †    
 
Oil, Gas & Consumable Fuels
    10 .9%
Insurance
    9 .4%
Pharmaceuticals
    8 .7%
Capital Markets
    6 .8%
Diversified Telecommunication Services
    4 .6%
Diversified Financial Services
    4 .5%
Electric Utilities
    3 .7%
Household Products
    3 .6%
Health Care Equipment & Supplies
    3 .1%
Food Products
    3 .0%
Other Industries
    41 .7%
         
      100 .0%
         
Top Holdings †    
 
AT&T, Inc. 
    3 .7%
Chevron Corp. 
    3 .3%
Johnson & Johnson
    3 .1%
JPMorgan Chase & Co. 
    3 .1%
Pfizer, Inc. 
    2 .7%
Marsh & McLennan Cos., Inc. 
    2 .6%
General Electric Co. 
    2 .4%
Total SA
    2 .1%
Lowe’s Cos., Inc. 
    2 .1%
Berkshire Hathaway, Inc., Class A
    2 .0%
Other Holdings
    72 .9%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
American Century NVIT Multi Cap Value Fund
 
                 
                 
Common Stocks 98.4%
                 
      Shares       Market
Value 		 
 
 
Aerospace & Defense 0.4%
Northrop Grumman Corp.
    800     $ 43,552  
                 
 
 
Air Freight & Logistics 1.1%
United Parcel Service, Inc., Class B
    2,237       127,263  
                 
 
 
Airlines 0.1%
Southwest Airlines Co.
    968       10,754  
                 
 
 
Automobiles 1.4%
Honda Motor Co. Ltd.
    1,500       44,059  
Toyota Motor Corp.
    3,400       116,820  
                 
              160,879  
                 
 
 
Beverages 1.2%
PepsiCo, Inc.
    2,306       140,551  
                 
 
 
Capital Markets 6.8%
AllianceBernstein Holding LP
    1,315       33,980  
Ameriprise Financial, Inc.
    2,606       94,155  
BlackRock, Inc.
    254       36,423  
Franklin Resources, Inc.
    285       24,564  
Goldman Sachs Group, Inc. (The)
    958       125,757  
Invesco Ltd.
    3,043       51,214  
Morgan Stanley
    2,705       62,783  
Northern Trust Corp.
    3,798       177,367  
State Street Corp.
    6,059       204,915  
                 
              811,158  
                 
 
 
Chemicals 0.3%
E.I. du Pont de Nemours & Co.
    880       30,439  
                 
 
 
Commercial Banks 2.5%
Comerica, Inc.
    661       24,345  
Commerce Bancshares, Inc.
    1,344       48,371  
PNC Financial Services Group, Inc.
    717       40,510  
U.S. Bancorp
    8,412       188,008  
                 
              301,234  
                 
 
 
Commercial Services & Supplies 2.7%
Avery Dennison Corp.
    1,350       43,375  
Cintas Corp.
    1,345       32,240  
Republic Services, Inc.
    5,230       155,488  
Waste Management, Inc.
    2,728       85,359  
                 
              316,462  
                 
 
 
Communications Equipment 0.5%
Nokia Corp. ADR-FI
    2,876       23,440  
QUALCOMM, Inc.
    1,073       35,237  
                 
              58,677  
                 
 
 
Computers & Peripherals 1.4%
Diebold, Inc.
    2,125       57,906  
Hewlett-Packard Co.
    2,462       106,556  
                 
              164,462  
                 
Containers & Packaging 0.4%
Bemis Co., Inc.
    1,574       42,498  
                 
 
 
Distributors 1.2%
Genuine Parts Co.
    3,699       145,926  
                 
 
 
Diversified Financial Services 4.5%
Bank of America Corp.
    11,624       167,037  
JPMorgan Chase & Co.
    9,855       360,791  
                 
              527,828  
                 
 
 
Diversified Telecommunication Services 4.6%
AT&T, Inc.
    18,053       436,702  
Qwest Communications International, Inc.
    3,602       18,911  
Verizon Communications, Inc.
    3,220       90,224  
                 
              545,837  
                 
 
 
Electric Utilities 3.7%
American Electric Power Co., Inc.
    2,984       96,383  
IDACORP, Inc.
    2,214       73,660  
NV Energy, Inc.
    1,419       16,758  
Southern Co.
    943       31,383  
Westar Energy, Inc.
    10,255       221,611  
                 
              439,795  
                 
 
 
Electrical Equipment 2.4%
Emerson Electric Co.
    1,389       60,686  
Hubbell, Inc., Class B
    4,641       184,201  
Thomas & Betts Corp.*
    1,102       38,239  
                 
              283,126  
                 
 
 
Electronic Equipment, Instruments & Components 0.7%
Molex, Inc.
    4,258       77,666  
                 
 
 
Energy Equipment & Services 0.8%
Baker Hughes, Inc.
    1,721       71,542  
Schlumberger Ltd.
    465       25,733  
                 
              97,275  
                 
 
 
Food & Staples Retailing 2.5%
Casey’s General Stores, Inc.
    765       26,699  
CVS Caremark Corp.
    2,624       76,936  
Walgreen Co.
    1,119       29,877  
Wal-Mart Stores, Inc.
    3,420       164,399  
                 
              297,911  
                 
 
 
Food Products 3.0%
ConAgra Foods, Inc.
    4,172       97,291  
H.J. Heinz Co.
    1,208       52,210  
Kraft Foods, Inc., Class A
    7,361       206,108  
                 
              355,609  
                 
 
 
Gas Utilities 1.0%
EQT Corp.
    3,291       118,937  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
American Century NVIT Multi Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Health Care Equipment & Supplies 3.1%
Beckman Coulter, Inc.
    2,528     $ 152,413  
Boston Scientific Corp.*
    12,959       75,162  
CareFusion Corp.*
    1,478       33,551  
Zimmer Holdings, Inc.*
    2,037       110,100  
                 
              371,226  
                 
 
 
Health Care Providers & Services 2.1%
Aetna, Inc.
    2,448       64,578  
CIGNA Corp.
    1,097       34,073  
LifePoint Hospitals, Inc.*
    1,719       53,976  
UnitedHealth Group, Inc.
    3,357       95,339  
                 
              247,966  
                 
 
 
Hotels, Restaurants & Leisure 1.6%
International Speedway Corp., Class A
    4,589       118,213  
Speedway Motorsports, Inc.
    5,551       75,271  
                 
              193,484  
                 
 
 
Household Durables 0.6%
Fortune Brands, Inc.
    753       29,503  
Toll Brothers, Inc.*
    2,726       44,597  
                 
              74,100  
                 
 
 
Household Products 3.6%
Clorox Co.
    285       17,715  
Kimberly-Clark Corp.
    3,795       230,091  
Procter & Gamble Co. (The)
    3,048       182,819  
                 
              430,625  
                 
 
 
Industrial Conglomerates 2.5%
3M Co.
    228       18,010  
General Electric Co.
    19,605       282,704  
                 
              300,714  
                 
 
 
Information Technology Services 0.9%
Accenture PLC, Class A
    597       23,074  
Automatic Data Processing, Inc.
    2,109       84,908  
                 
              107,982  
                 
 
 
Insurance 9.4%
ACE Ltd.
    1,275       65,637  
Allstate Corp. (The)
    1,405       40,366  
Aon Corp.
    2,132       79,140  
Berkshire Hathaway, Inc., Class A*
    2       240,000  
Chubb Corp.
    2,031       101,570  
HCC Insurance Holdings, Inc.
    3,151       78,019  
Marsh & McLennan Cos., Inc.
    13,777       310,671  
Transatlantic Holdings, Inc.
    1,218       58,415  
Travelers Cos., Inc. (The)
    2,841       139,919  
                 
              1,113,737  
                 
Media 0.9%
McGraw-Hill Cos., Inc. (The)
    938       26,395  
Omnicom Group Inc.
    1,217       41,743  
Walt Disney Co. (The)
    1,375       43,313  
                 
              111,451  
                 
 
 
Metals & Mining 0.9%
Barrick Gold Corp.
    1,061       48,180  
Newmont Mining Corp.
    967       59,703  
                 
              107,883  
                 
 
 
Multiline Retail 0.4%
Target Corp.
    999       49,121  
                 
 
 
Multi-Utilities 2.7%
PG&E Corp.
    2,330       95,763  
Wisconsin Energy Corp.
    2,423       122,943  
Xcel Energy, Inc.
    4,922       101,442  
                 
              320,148  
                 
 
 
Oil, Gas & Consumable Fuels 10.9%
Apache Corp.
    364       30,645  
BP PLC
    5,104       24,434  
BP PLC ADR-UK
    397       11,465  
Chevron Corp.
    5,762       391,009  
ConocoPhillips
    2,271       111,484  
Devon Energy Corp.
    1,859       113,250  
Exxon Mobil Corp.
    4,179       238,516  
Imperial Oil Ltd.
    1,561       56,865  
Noble Energy, Inc.
    284       17,134  
Total SA
    5,685       253,772  
Valero Energy Corp.
    2,293       41,228  
                 
              1,289,802  
                 
 
 
Paper & Forest Products 0.9%
MeadWestvaco Corp.
    910       20,202  
Weyerhaeuser Co.
    2,340       82,368  
                 
              102,570  
                 
 
 
Pharmaceuticals 8.7%
Bristol-Myers Squibb Co.
    2,244       55,965  
Eli Lilly & Co.
    3,166       106,061  
Johnson & Johnson
    6,246       368,889  
Merck & Co., Inc.
    5,133       179,501  
Pfizer, Inc.
    22,372       319,025  
                 
              1,029,441  
                 
 
 
Real Estate Investment Trusts (REITs) 0.1%
Host Hotels & Resorts, Inc.
    1,220       16,446  
                 
 
 
Road & Rail 0.3%
Heartland Express, Inc.
    2,073       30,100  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
Semiconductors & Semiconductor Equipment 2.1%
Applied Materials, Inc.
    8,929     $ 107,327  
Intel Corp.
    7,099       138,075  
                 
              245,402  
                 
 
 
Specialty Retail 2.9%
Lowe’s Cos., Inc.
    11,991       244,856  
PetSmart, Inc.
    1,411       42,570  
Staples, Inc.
    2,848       54,254  
                 
              341,680  
                 
 
 
Thrifts & Mortgage Finance 0.6%
Hudson City Bancorp, Inc.
    6,124       74,958  
                 
         
Total Common Stocks (cost $12,271,408)
    11,656,675  
         
                 
                 
Mutual Fund 1.6%
                 
                 
Money Market Fund 1.6%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    185,848       185,848  
                 
         
Total Mutual Fund (cost $185,848)
    185,848  
         
         
Total Investments (cost $12,457,256) (b) — 100.0%
    11,842,523  
         
Other assets in excess of liabilities — 0.0%
    5,097  
         
         
NET ASSETS — 100.0%
  $ 11,847,620  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
ADR American Depositary Receipt
 
FI Finland
 
LP Limited Partnership
 
Ltd. Limited
 
PLC Public Limited Company
 
REIT Real Estate Investment Trust
 
SA Stock Company
 
UK United Kingdom
 
At June 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Short Contracts:
                       
British Pound
  Bank of America NA   7/30/10     (17,947 )   $ (27,085 )   $ (26,815 )   $ 270  
Canadian Dollar
  Bank of America NA   7/30/10     (89,851 )     (86,794 )     (84,388 )     2,406  
Euro
  UBS AG   7/30/10     (200,537 )     (247,196 )     (245,245 )     1,951  
Japanese Yen
  Bank of America NA   7/30/10     (10,770,750 )     (120,910 )     (121,876 )     (966 )
                                         
Total Short Contracts
                  $ (481,985 )   $ (478,324 )   $ 3,661  
                                         
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      American Century
 		 
      NVIT Multi Cap
 		 
    Value Fund  
       
Assets:
         
Investments, at value (cost $12,457,256)
    $ 11,842,523  
Foreign currencies, at value (cost $314)
      314  
Dividends receivable
      24,371  
Receivable for investments sold
      218,309  
Receivable for capital shares issued
      28,146  
Reclaims receivable
      724  
Unrealized appreciation on forward foreign currency contracts (Note 2)
      4,627  
Receivable from adviser
      3,760  
Prepaid expenses and other assets
      2,098  
           
Total Assets
      12,124,872  
           
Liabilities:
         
Payable for investments purchased
      236,952  
Payable for capital shares redeemed
      14  
Unrealized depreciation on forward foreign currency contracts (Note 2)
      966  
Accrued expenses and other payables:
         
Fund administration fees
      6,777  
Distribution fees
      1,049  
Administrative servicing fees
      13,404  
Accounting and transfer agent fees
      2,090  
Custodian fees
      20  
Compliance program costs (Note 3)
      53  
Professional fees
      7,205  
Printing fees
      8,722  
           
Total Liabilities
      277,252  
           
Net Assets
    $ 11,847,620  
           
Represented by:
         
Capital
    $ 11,784,691  
Accumulated undistributed net investment income
      43,279  
Accumulated net realized gains from investment and foreign currency transactions
      630,632  
Net unrealized appreciation/(depreciation) from investments
      (614,733 )
Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      3,661  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      90  
           
Net Assets
    $ 11,847,620  
           
Net Assets:
         
Class I Shares
    $ 4,359,004  
Class II Shares
      7,488,616  
           
Total
    $ 11,847,620  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      369,478  
Class II Shares
      635,063  
           
Total
      1,004,541  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 11.80  
Class II Shares
    $ 11.79  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      American Century
 		 
      NVIT Multi Cap
 		 
    Value Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 145,714  
Foreign tax withholding
      (1,427 )
           
Total Income
      144,287  
           
EXPENSES:
         
Investment advisory fees
      30,425  
Fund administration fees
      15,037  
Distribution fees Class II Shares
      7,587  
Administrative servicing fees Class I Shares
      5,757  
Administrative servicing fees Class II Shares
      7,587  
Professional fees
      7,483  
Printing fees
      5,582  
Trustee fees
      187  
Custodian fees
      170  
Accounting and transfer agent fees
      1,355  
Compliance program costs (Note 3)
      18  
Other
      955  
           
Total expenses before earnings credit and expenses waived and reimbursed
      82,143  
           
Distribution fees voluntarily waived — Class II (Note 3)
      (2,428 )
Earnings credit (Note 4)
      (2 )
Expenses reimbursed by adviser (Note 3)
      (25,393 )
           
Net Expenses
      54,320  
           
NET INVESTMENT INCOME
      89,967  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      586,359  
Net realized gains from forward and foreign currency transactions (Note 2)
      45,841  
           
Net realized gains from investment, forward foreign currency and foreign currency transactions
      632,200  
           
Net change in unrealized appreciation/(depreciation) from investments
      (1,561,409 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      (159 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      82  
           
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (1,561,486 )
           
Net realized/unrealized losses from investments, forward foreign currency contracts, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (929,286 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (839,319 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statements of Changes in Net Assets
 
                     
      American Century NVIT Multi Cap Value Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a)
 		 
Operations:
                   
Net investment income
    $ 89,967       $ 85,455  
Net realized gains from investment and foreign currency transactions
      632,200         434,104  
Net change in unrealized appreciation/(depreciation) from investments, forward foreign currency contracts and translation of assets and liabilities denominated in foreign currencies
      (1,561,486 )       950,504  
                     
Change in net assets resulting from operations
      (839,319 )       1,470,063  
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (23,486 )       (37,351 )
Class II
      (28,299 )       (24,854 )
Net realized gains:
                   
Class I
      (45,591 )       (172,087 )
Class II
      (76,249 )       (158,179 )
                     
Change in net assets from shareholder distributions
      (173,625 )       (392,471 )
                     
Change in net assets from capital transactions
      3,957,801         7,825,171  
                     
Change in net assets
      2,944,857         8,902,763  
                     
                     
Net Assets:
                   
Beginning of period
      8,902,763         –  
                     
End of period
    $ 11,847,620       $ 8,902,763  
                     
Accumulated undistributed net investment income at end of period
    $ 43,279       $ 5,097  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 326,032       $ 3,571,578  
Dividends reinvested
      69,077         209,438  
Cost of shares redeemed
      (235,183 )       (76,379 )
                     
Total Class I
      159,926         3,704,637  
                     
Class II Shares
                   
Proceeds from shares issued
      4,087,878         4,037,426  
Dividends reinvested
      104,548         183,033  
Cost of shares redeemed
      (394,551 )       (99,925 )
                     
Total Class II
      3,797,875         4,120,534  
                     
Change in net assets from capital transactions
    $ 3,957,801       $ 7,825,171  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      25,243         346,839  
Reinvested
      5,439         16,617  
Redeemed
      (18,608 )       (6,052 )
                     
Total Class I Shares
      12,074         357,404  
                     
(a) For the period from March 25, 2009 (commencement of operations) to December 31, 2009.
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
10 Semiannual Report 2010

 

 
 
                     
      American Century NVIT Multi Cap Value Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a)
 		 
                     
SHARE TRANSACTIONS: (continued)
                   
Class II Shares
                   
Issued
      314,835         335,545  
Reinvested
      8,255         14,463  
Redeemed
      (29,813 )       (8,222 )
                     
Total Class II Shares
      293,277         341,786  
                     
Total change in shares
      305,351         699,190  
                     
 
 
(a) For the period from March 25, 2009 (commencement of operations) to December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
American Century NVIT Multi Cap Value Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios/Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .74       0 .11       (0 .85)       (0 .74)       (0 .07)       (0 .13)       (0 .20)     $ 11 .80       (5 .99%)     $ 4,359,004         0 .92%       1 .77%       1 .37%       37 .66%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .19       3 .17       3 .36       (0 .11)       (0 .51)       (0 .62)     $ 12 .74       33 .69%     $ 4,551,767         0 .91%       2 .10%       1 .38%       46 .72%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .73       0 .10       (0 .85)       (0 .75)       (0 .06)       (0 .13)       (0 .19)     $ 11 .79       (6 .07%)     $ 7,488,616         1 .09%       1 .62%       1 .67%       37 .66%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .17       3 .18       3 .35       (0 .11)       (0 .51)       (0 .62)     $ 12 .73       33 .55%     $ 4,350,996         1 .08%       1 .80%       1 .79%       46 .72%    
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the American Century NVIT Multi Cap Value Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Mutual Insurance Company, and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ 43,552     $ —     $ —     $ 43,552      
 
 
Air Freight & Logistics
    127,263       —       —       127,263      
 
 
Airlines
    10,754       —       —       10,754      
 
 
Automobiles
    —       160,879       —       160,879      
 
 
Beverages
    140,551       —       —       140,551      
 
 
Capital Markets
    811,158       —       —       811,158      
 
 
Chemicals
    30,439       —       —       30,439      
 
 
Commercial Banks
    301,234       —       —       301,234      
 
 
Commercial Services & Supplies
    316,462       —       —       316,462      
 
 
Communications Equipment
    58,677       —       —       58,677      
 
 
Computers & Peripherals
    164,462       —       —       164,462      
 
 
Containers & Packaging
    42,498       —       —       42,498      
 
 
Distributors
    145,926       —       —       145,926      
 
 
Diversified Financial Services
    527,828       —       —       527,828      
 
 
Diversified Telecommunication Services
    545,837       —       —       545,837      
 
 
Electric Utilities
    439,795       —       —       439,795      
 
 
Electrical Equipment
    283,126       —       —       283,126      
 
 
Electronic Equipment, Instruments & Components
    77,666       —       —       77,666      
 
 
 
 
 
14 Semiannual Report 2010

 

 
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Energy Equipment & Services
  $ 97,275     $ —     $ —     $ 97,275      
 
 
Food & Staples Retailing
    297,911       —       —       297,911      
 
 
Food Products
    355,609       —       —       355,609      
 
 
Gas Utilities
    118,937       —       —       118,937      
 
 
Health Care Equipment & Supplies
    371,226       —       —       371,226      
 
 
Health Care Providers & Services
    247,966       —       —       247,966      
 
 
Hotels, Restaurants & Leisure
    193,484       —       —       193,484      
 
 
Household Durables
    74,100       —       —       74,100      
 
 
Household Products
    430,625       —       —       430,625      
 
 
Industrial Conglomerates
    300,714       —       —       300,714      
 
 
Information Technology Services
    107,982       —       —       107,982      
 
 
Insurance
    1,113,737       —       —       1,113,737      
 
 
Media
    111,451       —       —       111,451      
 
 
Metals & Mining
    107,883       —       —       107,883      
 
 
Multiline Retail
    49,121       —       —       49,121      
 
 
Multi-Utilities
    320,148       —       —       320,148      
 
 
Oil, Gas & Consumable Fuels
    1,011,596       278,206       —       1,289,802      
 
 
Paper & Forest Products
    102,570       —       —       102,570      
 
 
Pharmaceuticals
    1,029,441       —       —       1,029,441      
 
 
Real Estate Investment Trusts (REITs)
    16,446       —       —       16,446      
 
 
Road & Rail
    30,100       —       —       30,100      
 
 
Semiconductors & Semiconductor Equipment
    245,402       —       —       245,402      
 
 
Specialty Retail
    341,680       —       —       341,680      
 
 
Thrifts & Mortgage Finance
    74,958       —       —       74,958      
 
 
Total Common Stocks
    11,217,590       439,085       —       11,656,675      
 
 
Forward Currency Contracts
    —       4,627       —       4,627      
 
 
Mutual Fund
    185,848       —       —       185,848      
 
 
Total Assets
    11,403,438       443,712       —       11,847,150      
 
 
Liabilities:
                                   
Forward Currency Contracts
    —       (966 )     —       (966 )    
 
 
Total Liabilities
    —       (966 )     —       (966 )    
 
 
Total
  $ 11,403,438     $ 442,746     $ —     $ 11,846,184      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S. dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
(d)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
 
 
16 Semiannual Report 2010

 

 
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments.
 
             
Statement of Assets & Liabilities Location   Fair Value
 
Assets:
           
Forward Foreign currency contracts
  Receivables- Unrealized appreciation from forward foreign currency contracts   $ 4,627  
 
 
Total
      $ 4,627  
 
 
Liabilities:
           
Forward Foreign currency contracts
  Payables- Unrealized depreciation from forward foreign currency contracts   $ 966  
 
 
Total
      $ 966  
 
 
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Forward Foreign currency contracts   $ 45,841      
 
 
    Total   $ 45,841      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Forward Foreign currency contracts   $ (159 )    
 
 
    Total   $ (159 )    
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(e)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(f)        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 GAAP. These “book/tax” differences are considered either permanent or
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(g)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2009 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable year 2009 remains subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(h)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected American Century Investment Management, Inc. (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
 
 
18 Semiannual Report 2010

 

 
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.57%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $16,814 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.67% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                             
    Period Ended
 		  Six Months Ended
 		       
    2009 Amount (a)   June 30, 2010   Total    
 
    $ 21,995     $ 25,393     $ 47,388      
 
 
(a) For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares. For the six months ended June 30, 2010, NFS received $13,344 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $18.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.08% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $2,428.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the Fund under
 
 
 
20 Semiannual Report 2010

 

 
 
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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $7,936,352 and sales of $3,948,327 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies.  Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Risks Associated with REITs and Real Estate Investments.  Investments in REITs and in real estate securities carry certain risks associated with direct ownership of real estate and with the real estate industry in general. These risks include possible declines in the value of real estate, possible lack of availability of mortgage funds, unexpected vacancies of properties, and the relative lack of liquidity associated with investments in real estate.
 
Credit and Market Risk.  The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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.
 
8. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 12,473,775     $ 169,032     $ (800,284)     $ (631,252)      
 
 
 
9. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
22 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 23

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
American Century NVIT Multi Cap Value Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and American Century Investment Management, Inc. (“American Century”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that, for the period since the Fund’s inception in March 2009 through September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group. The Trustees also noted that, for the three-month period ended September 30, 2009, the Fund’s Class II shares underperformed the Fund’s benchmark, the Russell 3000 Value Index. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of American Century, the Trustees took into consideration American Century’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the third quintile and at the median of its Peer Group, and that the Fund’s actual advisory fee was in the first quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses for Class II shares were in the second quintile of its Peer Group. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the asset levels of the Fund were not currently so large as to warrant formal contractual breakpoints.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
24 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 27

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
28 Semiannual Report 2010

 

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NVIT Cardinalsm Aggressive Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies related to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-AG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Mike S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Aggressive Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Cardinal Aggressive Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class I Shares
    Actual       1,000.00       920.70       1.57       0.33  
      Hypothetical c     1,000.00       1,023.16       1.66       0.33  
 
 
Class II Shares
    Actual       1,000.00       920.20       2.00       0.42  
      Hypothetical c     1,000.00       1,022.71       2.11       0.42  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Aggressive Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    94 .4%
Fixed Income Funds
    5 .7%
Liabilities in excess of other assets
    (0 .1)%
         
      100 .0%
         
Top Holdings †    
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    19 .8%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    19 .6%
NVIT Multi-Manager International Growth Fund, Class Y
    15 .0%
NVIT Multi-Manager International Value Fund, Class Y
    13 .8%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    7 .8%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    7 .8%
NVIT Multi-Manager Small Cap Value Fund, Class Y
    4 .2%
NVIT Multi-Manager Small Cap Growth Fund, Class Y
    4 .2%
NVIT Core Plus Bond Fund, Class Y
    2 .9%
NVIT Core Bond Fund, Class Y
    2 .8%
NVIT Multi-Manager Small Company Fund, Class Y
    2 .1%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Aggressive Fund
 
                 
                 
Mutual Funds 100.1%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 94.4%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    309,255     $ 2,436,931  
NVIT Multi-Manager International Value Fund, Class Y (a)
    273,915       2,237,883  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    408,062       3,191,047  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    424,159       3,223,611  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    155,928       1,272,371  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    144,292       1,261,111  
NVIT Multi-Manager Small Cap Growth Fund, Class Y (a)
    56,535       672,772  
NVIT Multi-Manager Small Cap Value Fund, Class Y (a)
    83,874       685,251  
NVIT Multi-Manager Small Company Fund, Class Y (a)
    24,174       337,710  
                 
         
Total Equity Funds (cost $14,593,973)
    15,318,687  
         
 
 
Fixed Income Funds 5.7%
NVIT Core Bond Fund, Class Y (a)
    43,706       465,030  
NVIT Core Plus Bond Fund, Class Y (a)
    41,822       465,479  
                 
         
Total Fixed Income Funds (cost $888,269)
    930,509  
         
 
 
         
Total Mutual Funds (cost $15,482,242)
    16,249,196  
         
         
Total Investments (cost $15,482,242) (b) — 100.1%
    16,249,196  
Liabilities in excess of other assets — (0.1)%
    (17,185 )
         
         
NET ASSETS — 100.0%
  $ 16,232,011  
         
 
(a) Investment in affiliate.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Aggressive Fund  
       
Assets:
         
Investments in affiliates, at value (cost $15,482,242)
    $ 16,249,196  
Receivable for investments sold
      40,203  
Receivable for capital shares issued
      2,309  
Receivable from adviser
      2,957  
Prepaid expenses and other assets
      2,225  
           
Total Assets
      16,296,890  
           
Liabilities:
         
Payable for capital shares redeemed
      42,511  
Accrued expenses and other payables:
         
Fund administration fees
      3,748  
Distribution fees
      991  
Administrative servicing fees
      724  
Accounting and transfer agent fees
      1,111  
Custodian fees
      68  
Compliance program costs (Note 3)
      82  
Professional fees
      4,168  
Printing fees
      11,281  
Other
      195  
           
Total Liabilities
      64,879  
           
Net Assets
    $ 16,232,011  
           
Represented by:
         
Capital
    $ 15,400,355  
Accumulated net investment loss
      (3,257 )
Accumulated net realized gains from investment transactions with affiliates
      67,959  
Net unrealized appreciation/(depreciation) from investments in affiliates
      766,954  
           
Net Assets
    $ 16,232,011  
           
Net Assets:
         
Class I Shares
    $ 2,757,409  
Class II Shares
      13,474,602  
           
Total
    $ 16,232,011  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      357,573  
Class II Shares
      1,748,120  
           
Total
      2,105,693  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.71  
Class II Shares
    $ 7.71  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Aggressive Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 93,722  
           
Total Income
      93,722  
           
EXPENSES:
         
Investment advisory fees
      15,530  
Fund administration fees
      7,634  
Distribution fees Class II Shares
      16,222  
Administrative servicing fees Class I Shares
      638  
Administrative servicing fees Class II Shares
      3,244  
Professional fees
      4,485  
Printing fees
      5,887  
Trustee fees
      275  
Custodian fees
      280  
Accounting and transfer agent fees
      794  
Compliance program costs (Note 3)
      31  
Other
      1,103  
           
Total expenses before earnings credit and expenses waived and reimbursed
      56,123  
           
Distribution fees voluntarily waived — Class II (Note 3)
      (10,382 )
Earnings credit (Note 5)
      (1 )
Expenses reimbursed by adviser (Note 3)
      (14,266 )
           
Net Expenses
      31,474  
           
NET INVESTMENT INCOME
      62,248  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      3,380  
Net realized gains from investment transactions with affiliates
      64,579  
           
Net realized gains from investment transactions with affiliates
      67,959  
           
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (1,547,494 )
           
Net realized/unrealized losses from affiliated investments
      (1,479,535 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (1,417,287 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Cardinal Aggressive Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 62,248       $ 90,275  
Net realized gains/(losses) from investment transactions with affiliates
      67,959         (1,696,043 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (1,547,494 )       4,692,344  
                     
Change in net assets resulting from operations
      (1,417,287 )       3,086,576  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (12,151 )       (14,456 )
Class II
      (53,354 )       (86,619 )
Net realized gains:
                   
Class I
      –         (428 )
Class II
      –         (2,886 )
Return of capital:
                   
Class I
      –         (581 )
Class II
      –         (3,484 )
                     
Change in net assets from shareholder distributions
      (65,505 )       (108,454 )
                     
Change in net assets from capital transactions
      2,690,657         4,820,623  
                     
Change in net assets
      1,207,865         7,798,745  
                     
                     
Net Assets:
                   
Beginning of period
      15,024,146         7,225,401  
                     
End of period
    $ 16,232,011       $ 15,024,146  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (3,257 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 1,434,026       $ 1,430,968  
Dividends reinvested
      12,151         15,465  
Cost of shares redeemed
      (389,580 )       (1,364,702 )
                     
Total Class I
      1,056,597         81,731  
                     
Class II Shares
                   
Proceeds from shares issued
      4,706,449         6,457,122  
Dividends reinvested
      53,354         92,989  
Cost of shares redeemed
      (3,125,743 )       (1,811,219 )
                     
Total Class II
      1,634,060         4,738,892  
                     
Change in net assets from capital transactions
    $ 2,690,657       $ 4,820,623  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      167,490         203,504  
Reinvested
      1,484         2,097  
Redeemed
      (46,365 )       (207,900 )
                     
Total Class I Shares
      122,609         (2,299 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Cardinal Aggressive Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class II Shares
                   
Issued
      561,715         933,640  
Reinvested
      6,532         12,485  
Redeemed
      (371,774 )       (257,168 )
                     
Total Class II Shares
      196,473         688,957  
                     
Total change in shares
      319,082         686,658  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Aggressive Fund
 
                                                                                                                                                         
          Operations     Distributions                 Ratios / Supplemental Data
     
                Net Realized
 		                                                                  Ratio of
 		         
                and
 		                                                            Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                    Net
 		                Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                  Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		      Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital       Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .41       0 .04       (0 .71)       (0 .67)       (0 .03)       –          –         (0 .03)     $ 7 .71       (7 .93%)     $ 2,757,409         0 .33%       0 .91%       0 .52%       19 .44%    
Year Ended December 31, 2009 (e)
  $ 6 .57       0 .07       1 .84       1 .91       (0 .07)       –          –         (0 .07)     $ 8 .41       29 .30%     $ 1,976,590         0 .33%       0 .95%       0 .53%       32 .02%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .06       (3 .21)       (3 .15)       (0 .13)       (0 .15)       –         (0 .28)     $ 6 .57       (31 .73%)     $ 1,559,214         0 .30%       0 .98%       0 .81%       26 .73%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .41       0 .03       (0 .70)       (0 .67)       (0 .03)       –          –         (0 .03)     $ 7 .71       (7 .98%)     $ 13,474,602         0 .42%       0 .78%       0 .77%       19 .44%    
Year Ended December 31, 2009 (e)
  $ 6 .57       0 .06       1 .85       1 .91       (0 .07)       –          –         (0 .07)     $ 8 .41       29 .20%     $ 13,047,556         0 .42%       0 .89%       0 .78%       32 .02%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .06       (3 .21)       (3 .15)       (0 .13)       (0 .15)       –         (0 .28)     $ 6 .57       (31 .76%)     $ 5,666,187         0 .41%       1 .03%       1 .20%       26 .73%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Aggressive Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short
 
 
 
12 Semiannual Report 2010

 

 
 
term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 16,249,196     $ —     $ —     $ 16,249,196      
 
 
Total
  $ 16,249,196     $ —     $ —     $ 16,249,196      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net
 
 
 
14 Semiannual Report 2010

 

 
 
asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.28% for the Fund’s Class I and Class II shares until April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/ year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    For the Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    December 31, 2008 (a)   2009 Amount   June 30, 2010   Total    
 
    $ 21,329     $ 21,671     $ 14,266     $ 57,266      
 
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $3,882 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $31.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $10,382.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
 
 
16 Semiannual Report 2010

 

 
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/(Loss)   2010    
 
NVIT Core Bond Fund, Class Y
  $ 377,860     $ 145,331     $ 75,007     $ 4,288     $ 6,067     $ 465,030      
 
 
NVIT Core Plus Bond Fund, Class Y
    378,600       150,045       75,007       7,475       11,670       465,479      
 
 
NVIT Multi-Manager International Growth Fund, Class Y
    2,271,604       846,000       450,043       5,304       (8,332 )     2,436,931      
 
 
NVIT Multi-Manager International Value Fund, Class Y
    2,260,101       845,450       450,043       4,754       52,486       2,237,883      
 
 
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    3,001,205       1,147,493       600,058       26,565       525       3,191,047      
 
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    2,996,508       1,156,197       600,058       35,270       (25,903 )     3,223,611      
 
 
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    1,126,427       420,348       225,021       —       4,354       1,272,371      
 
 
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    1,124,727       426,860       225,021       6,512       5,291       1,261,111      
 
 
NVIT Multi-Manager Small Cap Growth Fund, Class Y
    597,531       224,186       120,011       —       2,759       672,772      
 
 
NVIT Multi-Manager Small Cap Value Fund, Class Y
    597,140       227,070       120,011       2,885       11,157       685,251      
 
 
NVIT Multi-Manager Small Company Fund, Class Y
    298,951       112,762       60,006       669       7,885       337,710      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $5,701,742 and sales of $3,000,286 (excluding short-term securities).
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 17,607,147     $ —     $ (1,357,951 )   $ (1,357,951 )    
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Aggressive Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. With respect to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the third quintile and below the median of its Peer Universe. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was slightly below the Fund’s composite benchmark, which is a 65%/30%/5% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
Turning to expenses, the Trustees noted that the Fund’s actual advisory fee for Class II shares was in the first quintile of its Peer Universe, but that the Fund’s total expenses were in the fourth quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Cardinalsm Balanced Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
10
   
Financial Highlights
       
11
   
Notes to Financial Statements
       
18
   
Supplemental Information
       
20
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-BAL (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Balanced Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 

Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Cardinal Balanced Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a,b   01/01/10 - 06/30/10a,b
 
Class I Shares
    Actual       1,000.00       976.40       1.42       0.29  
      Hypothetical c     1,000.00       1,023.36       1.45       0.29  
 
 
Class II Shares
    Actual       1,000.00       975.90       1.86       0.38  
      Hypothetical c     1,000.00       1,022.91       1.91       0.38  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Balanced Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Fixed Income Funds
    46 .9%
Equity Funds
    46 .9%
Money Market Fund
    6 .2%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
         
Top Holdings †    
 
NVIT Core Plus Bond Fund, Class Y
    16 .2%
NVIT Core Bond Fund, Class Y
    16 .1%
NVIT Short-Term Bond Fund, Class Y
    14 .6%
NVIT Multi-Manager Large Cap Value Fund, Class Y
    11 .7%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    11 .6%
NVIT Money Market Fund, Class Y
    6 .2%
NVIT Multi-Manager International Growth Fund, Class Y
    5 .7%
NVIT Multi-Manager International Value Fund, Class Y
    5 .2%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    4 .9%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    4 .9%
Other Holdings
    2 .9%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Balanced Fund
 
                 
                 
Mutual Funds 100.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 46.9%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    3,944,191     $ 31,080,225  
NVIT Multi-Manager International Value Fund, Class Y (a)
    3,487,385       28,491,933  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    8,111,563       63,432,421  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    8,424,132       64,023,405  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    3,304,955       26,968,436  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    3,056,548       26,714,231  
NVIT Multi-Manager Small Cap Growth Fund, Class Y (a)
    448,963       5,342,657  
NVIT Multi-Manager Small Cap Value Fund, Class Y (a)
    664,856       5,431,872  
NVIT Multi-Manager Small Company Fund, Class Y (a)
    383,782       5,361,440  
                 
         
Total Equity Funds (cost $246,956,015)
    256,846,620  
         
Fixed Income Funds 46.9%
NVIT Core Bond Fund, Class Y (a)
    8,312,962       88,449,912  
NVIT Core Plus Bond Fund, Class Y (a)
    7,950,681       88,491,078  
NVIT Short-Term Bond Fund, Class Y (a)
    7,729,589       80,233,129  
                 
         
Total Fixed Income Funds
(cost $245,132,563)
    257,174,119  
         
 
 
Money Market Fund 6.2%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    33,817,778       33,817,778  
                 
         
Total Money Market Fund
(cost $33,817,778)
    33,817,778  
         
         
Total Mutual Funds (cost $525,906,356)
    547,838,517  
         
Total Investments
(cost $525,906,356) (c) — 100.0%
            547,838,517  
         
Liabilities in excess of other assets — 0.0%
    (201,118 )
         
         
NET ASSETS — 100.0%
  $ 547,637,399  
         
                 
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal Balanced Fund  
       
Assets:
         
Investments in affiliates, at value (cost $525,906,356)
    $ 547,838,517  
Receivable for capital shares issued
      4,477,287  
Prepaid expenses and other assets
      5,486  
           
Total Assets
      552,321,290  
           
Liabilities:
         
Payable for investments purchased
      4,476,859  
Payable for capital shares redeemed
      429  
Accrued expenses and other payables:
         
Investment advisory fees
      88,926  
Fund administration fees
      13,662  
Distribution fees
      39,777  
Administrative servicing fees
      20,741  
Accounting and transfer agent fees
      2,828  
Custodian fees
      1,354  
Compliance program costs (Note 3)
      2,516  
Professional fees
      12,388  
Printing fees
      11,934  
Other
      12,477  
           
Total Liabilities
      4,683,891  
           
Net Assets
    $ 547,637,399  
           
Represented by:
         
Capital
    $ 525,667,030  
Accumulated net investment loss
      (622,235 )
Accumulated net realized gains from investment transactions with affiliates
      660,443  
Net unrealized appreciation/(depreciation) from investments in affiliates
      21,932,161  
           
Net Assets
    $ 547,637,399  
           
Net Assets:
         
Class I Shares
    $ 3,151,501  
Class II Shares
      544,485,898  
           
Total
    $ 547,637,399  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      340,706  
Class II Shares
      58,909,984  
           
Total
      59,250,690  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 9.25  
Class II Shares
    $ 9.24  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Balanced Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 4,348,935  
           
Total Income
      4,348,935  
           
EXPENSES:
         
Investment advisory fees
      488,338  
Fund administration fees
      27,377  
Distribution fees Class II Shares
      606,427  
Administrative servicing fees Class I Shares
      798  
Administrative servicing fees Class II Shares
      121,289  
Professional fees
      23,225  
Printing fees
      7,532  
Trustee fees
      8,607  
Custodian fees
      8,005  
Accounting and transfer agent fees
      3,361  
Compliance program costs (Note 3)
      1,032  
Other
      10,805  
           
Total expenses before waived expenses
      1,306,796  
Distribution fees voluntarily waived — Class II (Note 3)
      (388,118 )
           
Net Expenses
      918,678  
           
NET INVESTMENT INCOME
      3,430,257  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      624,698  
Net realized losses from investment transactions with affiliates
      (16,539 )
           
Net realized gains from investment transactions with affiliates
      608,159  
           
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (18,876,789 )
           
Net realized/unrealized losses from affiliated investments
      (18,268,630 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (14,838,373 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Cardinal Balanced Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 3,430,257       $ 4,867,795  
Net realized gains/(losses) from investment transactions with affiliates
      608,159         (5,906,219 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (18,876,789 )       57,458,124  
                     
Change in net assets resulting from operations
      (14,838,373 )       56,419,700  
                     
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (26,100 )       (37,722 )
Class II
      (4,026,392 )       (6,321,297 )
Return of capital:
                   
Class I
      –         (261 )
Class II
      –         (43,765 )
                     
Change in net assets from shareholder distributions
      (4,052,492 )       (6,403,045 )
                     
Change in net assets from capital transactions
      139,184,142         230,662,968  
                     
Change in net assets
      120,293,277         280,679,623  
                     
                     
Net Assets:
                   
Beginning of period
      427,344,122         146,664,499  
                     
End of period
    $ 547,637,399       $ 427,344,122  
                     
Accumulated undistributed net investment loss at end of period
    $ (622,235 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 1,804,570       $ 1,379,160  
Dividends reinvested
      26,100         37,983  
Cost of shares redeemed
      (917,238 )       (1,089,995 )
                     
Total Class I
      913,432         327,148  
                     
Class II Shares
                   
Proceeds from shares issued
      136,153,108         225,814,738  
Dividends reinvested
      4,026,392         6,365,062  
Cost of shares redeemed
      (1,908,790 )       (1,843,980 )
                     
Total Class II
      138,270,710         230,335,820  
                     
Change in net assets from capital transactions
    $ 139,184,142       $ 230,662,968  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      186,949         159,460  
Reinvested
      2,724         4,176  
Redeemed
      (95,480 )       (134,834 )
                     
Total Class I Shares
      94,193         28,802  
                     
Class II Shares
                   
Issued
      14,143,074         26,212,840  
Reinvested
      421,009         692,581  
Redeemed
      (200,619 )       (215,052 )
                     
Total Class II Shares
      14,363,464         26,690,369  
                     
Total change in shares
      14,457,657         26,719,171  
                     
 
 ­ ­ 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Balanced Fund
 
                                                                                                                                                     
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .55       0 .07       (0 .29)       (0 .22)       (0 .08)       –        –        (0 .08)     $ 9 .25       (2 .36%)     $ 3,151,501         0 .29%       1 .47%       0 .29%       0 .06%    
Year Ended December 31, 2009 (e)
  $ 8 .12       0 .15       1 .45       1 .60       (0 .17)       –        –        (0 .17)     $ 9 .55       19 .88%     $ 2,353,767         0 .30%       1 .72%       0 .30%       8 .76%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .12       (1 .82)       (1 .70)       (0 .14)       (0 .04)     –        (0 .18)     $ 8 .12       (17 .10%)     $ 1,767,818         0 .26%       1 .90%       0 .34%       13 .21%    
                                                                                                                                                     
Class II Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .54       0 .07       (0 .30)       (0 .23)       (0 .07)       –        –        (0 .07)     $ 9 .24       (2 .41%)     $ 544,485,898         0 .38%       1 .40%       0 .54%       0 .06%    
Year Ended December 31, 2009 (e)
  $ 8 .11       0 .15       1 .45       1 .60       (0 .17)       –        –        (0 .17)     $ 9 .54       19 .82%     $ 424,990,355         0 .38%       1 .75%       0 .54%       8 .76%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .12       (1 .83)       (1 .71)       (0 .14)       (0 .04)     –        (0 .18)     $ 8 .11       (17 .23%)     $ 144,896,681         0 .39%       2 .73%       0 .59%       13 .21%    
                                                                                                                                                     
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Balanced Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 547,838,517     $ —     $ —     $ 547,838,517      
 
 
Total
  $ 547,838,517     $ —     $ —     $ 547,838,517      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the
 
 
 
12 Semiannual Report 2010

 

 
 
accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.25% for the Fund’s Class I and Class II shares until April 30, 2011. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                 
Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
$ 19,606     $ —     $ —     $ 19,606      
 
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
 
 
14 Semiannual Report 2010

 

 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $122,087 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,032.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $388,118.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases at
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   Cost   Proceeds   Income   Gain/(Loss)   2010    
 
NVIT Core Bond Fund, Class Y
  $ 64,281,168     $ 21,142,212     $ 43,496     $ 789,620     $ 174,656     $ 88,449,912      
 
 
NVIT Core Plus Bond Fund, Class Y
    64,406,382       22,009,301       43,496       1,374,607       458,683       88,491,078      
 
 
NVIT Money Market Fund, Class Y
    25,762,659       8,072,517       17,398       —       —       33,817,778      
 
 
NVIT Multi-Manager International Growth Fund, Class Y
    25,762,659       8,138,082       17,398       65,565       (3,754 )     31,080,225      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases at
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   Cost   Proceeds   Income   Gain/(Loss)   2010    
 
NVIT Multi-Manager International Value Fund, Class Y
    25,632,863       8,131,040       17,398       58,521       (3,030 )     28,491,933      
 
 
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    53,185,274       17,342,809       36,247       525,064       (8,014 )     63,432,421      
 
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    53,102,497       17,509,378       36,247       691,633       (6,580 )     64,023,405      
 
 
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    21,292,476       6,727,098       14,499       —       (2,851 )     26,968,436      
 
 
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    21,260,504       6,860,281       14,499       133,183       (1,690 )     26,714,231      
 
 
NVIT Multi-Manager Small Cap Growth Fund, Class Y
    4,235,710       1,345,420       2,900       —       (371 )     5,342,657      
 
 
NVIT Multi-Manager Small Cap Value Fund, Class Y
    4,232,958       1,367,422       2,900       22,002       (276 )     5,431,872      
 
 
NVIT Multi-Manager Small Company Fund, Class Y
    4,238,333       1,355,681       2,900       10,262       (146 )     5,361,440      
 
 
NVIT Short-Term Bond Fund, Class Y
    60,112,741       19,514,352       40,595       678,478       1,532       80,233,129      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $139,515,593 and sales of $289,973 (excluding short-term securities).
 
 
 
16 Semiannual Report 2010

 

 
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 533,517,343     $ 14,715,097     $ (393,923 )   $ 14,321,174      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 17

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
18 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Balanced Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was below the Fund’s composite benchmark, which is a 35%/15%/50% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class II shares were in the fourth quintile of its Peer Group, but that the Fund’s total expenses were in the third quintile and equal to the median of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 19

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
20 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 23

 

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NVIT Cardinalsm Capital Appreciation Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
10
   
Financial Highlights
       
11
   
Notes to Financial Statements
       
18
   
Supplemental Information
       
20
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-CAP (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Capital Appreciation Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Cardinal Capital
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Appreciation Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class I Shares
    Actual       1,000.00       951.20       1.35       0.28  
      Hypothetical c     1,000.00       1,023.41       1.40       0.28  
 
 
Class II Shares
    Actual       1,000.00       950.80       1.79       0.37  
      Hypothetical c     1,000.00       1,022.96       1.86       0.37  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Capital Appreciation Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    67 .2%
Fixed Income Funds
    29 .6%
Money Market Fund
    3 .2%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
         
Top Holdings †    
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    15 .3%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    15 .2%
NVIT Core Plus Bond Fund, Class Y
    11 .1%
NVIT Core Bond Fund, Class Y
    11 .0%
NVIT Multi-Manager International Growth Fund, Class Y
    9 .7%
NVIT Multi-Manager International Value Fund, Class Y
    8 .9%
NVIT Short-Term Bond Fund, Class Y
    7 .5%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    6 .6%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    6 .5%
NVIT Money Market Fund, Class Y
    3 .2%
Other Holdings
    5 .0%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Capital Appreciation Fund
 
                 
                 
Mutual Funds 100.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 67.2%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    8,931,466     $ 70,379,947  
NVIT Multi-Manager International Value Fund, Class Y (a)
    7,902,944       64,567,055  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    14,090,308       110,186,212  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    14,624,221       111,144,079  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    5,823,102       47,516,509  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    5,388,679       47,097,056  
NVIT Multi-Manager Small Cap Growth Fund, Class Y (a)
    1,217,440       14,487,540  
NVIT Multi-Manager Small Cap Value Fund, Class Y (a)
    1,801,188       14,715,707  
NVIT Multi-Manager Small Company Fund, Class Y (a)
    520,313       7,268,778  
                 
         
Total Equity Funds (cost $484,720,714)
    487,362,883  
         
 
 
Fixed Income Funds 29.6%
NVIT Core Bond Fund, Class Y (a)
    7,520,558       80,018,734  
NVIT Core Plus Bond Fund, Class Y (a)
    7,191,212       80,038,185  
NVIT Short-Term Bond Fund, Class Y (a)
    5,246,787       54,461,643  
                 
         
Total Fixed Income Funds
(cost $206,502,503)
    214,518,562  
         
                 
Money Market Fund 3.2%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    22,962,442       22,962,442  
                 
         
Total Money Market Fund
(cost $22,962,442)
    22,962,442  
         
         
Total Mutual Funds (cost $714,185,659)
    724,843,887  
         
         
Total Investments
(cost $714,185,659) (c) — 100.0%
    724,843,887  
         
Liabilities in excess of other assets — 0.0%
    (259,940 )
         
         
NET ASSETS — 100.0%
  $ 724,583,947  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal Capital
 		 
      Appreciation Fund  
       
Assets:
         
Investments in affiliates, at value (cost $714,185,659)
    $ 724,843,887  
Receivable for capital shares issued
      126,496  
Prepaid expenses and other assets
      7,754  
           
Total Assets
      724,978,137  
           
Liabilities:
         
Payable for investments purchased
      126,266  
Payable for capital shares redeemed
      230  
Accrued expenses and other payables:
         
Investment advisory fees
      119,121  
Fund administration fees
      17,130  
Distribution fees
      53,202  
Administrative servicing fees
      28,123  
Accounting and transfer agent fees
      3,449  
Custodian fees
      1,702  
Compliance program costs (Note 3)
      3,288  
Professional fees
      11,979  
Printing fees
      11,954  
Other
      17,746  
           
Total Liabilities
      394,190  
           
Net Assets
    $ 724,583,947  
           
Represented by:
         
Capital
    $ 714,460,253  
Accumulated net investment loss
      (565,822 )
Accumulated net realized gains from investment transactions with affiliates
      31,288  
Net unrealized appreciation/(depreciation) from investments in affiliates
      10,658,228  
           
Net Assets
    $ 724,583,947  
           
Net Assets:
         
Class I Shares
    $ 5,256,020  
Class II Shares
      719,327,927  
           
Total
    $ 724,583,947  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      611,617  
Class II Shares
      83,696,070  
           
Total
      84,307,687  
           
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.59  
Class II Shares
    $ 8.59  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal Capital
 		 
      Appreciation Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 5,073,303  
           
Total Income
      5,073,303  
           
EXPENSES:
         
Investment advisory fees
      646,372  
Fund administration fees
      34,198  
Distribution fees Class II Shares
      801,698  
Administrative servicing fees Class I Shares
      1,252  
Administrative servicing fees Class II Shares
      160,344  
Professional fees
      28,354  
Printing fees
      7,110  
Trustee fees
      11,418  
Custodian fees
      12,365  
Accounting and transfer agent fees
      4,250  
Compliance program costs (Note 3)
      1,368  
Other
      13,147  
           
Total expenses before waived expenses
      1,721,876  
Distribution fees voluntarily waived — Class II (Note 3)
      (513,092 )
           
Net Expenses
      1,208,784  
           
NET INVESTMENT INCOME
      3,864,519  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      567,495  
Net realized losses from investment transactions with affiliates
      (632,551 )
           
Net realized losses from investment transactions with affiliates
      (65,056 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (42,425,218 )
           
Net realized/unrealized losses from affiliated investments
      (42,490,274 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (38,625,755 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Cardinal Capital Appreciation Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 3,864,519       $ 4,541,139  
Net realized losses from investment transactions with affiliates
      (65,056 )       (7,994,104 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (42,425,218 )       78,086,389  
                     
Change in net assets resulting from operations
      (38,625,755 )       74,633,424  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (34,899 )       (50,739 )
Class II
      (4,395,442 )       (5,732,367 )
Net realized gains:
                   
Class I
      (290 )       –  
Class II
      (39,146 )       –  
                     
Change in net assets from shareholder distributions
      (4,469,777 )       (5,783,106 )
                     
Change in net assets from capital transactions
      218,693,644         363,609,895  
                     
Change in net assets
      175,598,112         432,460,213  
                     
                     
Net Assets:
                   
Beginning of period
      548,985,835         116,525,622  
                     
End of period
    $ 724,583,947       $ 548,985,835  
                     
Accumulated undistributed net investment loss at end of period
    $ (565,822 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 2,186,185       $ 2,630,262  
Dividends reinvested
      35,189         50,739  
Cost of shares redeemed
      (899,477 )       (958,382 )
                     
Total Class I
      1,321,897         1,722,619  
                     
Class II Shares
                   
Proceeds from shares issued
      220,142,780         364,860,401  
Dividends reinvested
      4,434,588         5,732,367  
Cost of shares redeemed
      (7,205,621 )       (8,705,492 )
                     
Total Class II
      217,371,747         361,887,276  
                     
Change in net assets from capital transactions
    $ 218,693,644       $ 363,609,895  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      235,295         323,704  
Reinvested
      3,898         5,941  
Redeemed
      (98,337 )       (130,306 )
                     
Total Class I Shares
      140,856         199,339  
                     
Class II Shares
                   
Issued
      24,071,556         44,896,517  
Reinvested
      491,704         662,945  
Redeemed
      (808,978 )       (1,025,378 )
                     
Total Class II Shares
      23,754,282         44,534,084  
                     
Total change in shares
      23,895,138         44,733,423  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Capital Appreciation Fund
 
 
                                                                                                                                                     
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                           
                and
 		                                                                Ratio of
 		         
                Unrealized
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Gains
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		    Return
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    of
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (a)     of Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .09       0 .06       (0 .50)       (0 .44)       (0 .06)       –        –       (0 .06)     $ 8 .59       (4 .88%)     $ 5,256,020         0 .28%       1 .28%       0 .28%       0 .90%    
Year Ended December 31, 2009 (e)
  $ 7 .43       0 .13       1 .66       1 .79       (0 .13)       –        –       (0 .13)     $ 9 .09       24 .25%     $ 4,277,333         0 .30%       1 .59%       0 .30%       9 .53%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .10       (2 .47)       (2 .37)       (0 .13)       (0 .07)     –       (0 .20)     $ 7 .43       (23 .81%)     $ 2,016,215         0 .27%       1 .53%       0 .34%       14 .19%    
                                                                                                                                                     
Class II Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .09       0 .05       (0 .49)       (0 .44)       (0 .06)       –        –       (0 .06)     $ 8 .59       (4 .92%)     $ 719,327,927         0 .37%       1 .19%       0 .53%       0 .90%    
Year Ended December 31, 2009 (e)
  $ 7 .43       0 .13       1 .65       1 .78       (0 .12)       –        –       (0 .12)     $ 9 .09       24 .16%     $ 544,708,502         0 .38%       1 .55%       0 .54%       9 .53%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .10       (2 .47)       (2 .37)       (0 .13)       (0 .07)     –       (0 .20)     $ 7 .43       (23 .84%)     $ 114,509,407         0 .39%       1 .95%       0 .59%       14 .19%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Capital Appreciation Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 724,843,887     $ —     $ —     $ 724,843,887      
 
 
Total
  $ 724,843,887     $ —     $ —     $ 724,843,887      
 
 
                                     
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the
 
 
 
12 Semiannual Report 2010

 

 
 
accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.25% for the Fund’s Class I and Class II shares until April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                 
For the Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
December 31, 2008 (a)   2009 Amount   June 30, 2010   Total    
 
$ 19,741     $ —     $ —     $ 19,741      
 
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
 
 
14 Semiannual Report 2010

 

 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $161,596 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,368.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $513,092.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Core Bond Fund, Class Y
  $ 55,126,097     $ 22,753,954     $ 580,440     $ 710,496     $ 183,928     $ 80,018,734      
 
 
NVIT Core Plus Bond Fund, Class Y
    55,233,577       23,533,485       580,440       1,233,807       469,866       80,038,185      
 
 
NVIT Money Market Fund, Class Y
    16,570,228       6,566,346       174,132       —       —       22,962,442      
 
 
NVIT Multi-Manager International Growth Fund, Class Y
    55,234,093       22,037,052       580,440       149,231       (92,893 )     70,379,947      
 
 
NVIT Multi-Manager International Value Fund, Class Y
    54,955,526       22,021,189       580,440       133,368       (111,564 )     64,567,055      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    87,570,755       35,921,318       928,705       900,803       (206,021 )     110,186,212      
 
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    87,434,443       36,204,398       928,705       1,183,883       (116,106 )     111,144,079      
 
 
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    35,606,514       14,227,084       377,286       —       (104,852 )     47,516,509      
 
 
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    35,552,931       14,460,099       377,286       233,015       (41,943 )     47,097,056      
 
 
NVIT Multi-Manager Small Cap Growth Fund, Class Y
    10,897,153       4,377,564       116,088       —       (20,098 )     14,487,540      
 
 
NVIT Multi-Manager Small Cap Value Fund, Class Y
    10,890,080       4,435,945       116,088       58,380       (15,988 )     14,715,707      
 
 
NVIT Multi-Manager Small Company Fund, Class Y
    5,451,975       2,202,614       58,044       13,832       (23,784 )     7,268,778      
 
 
NVIT Short-Term Bond Fund, Class Y
    38,663,675       15,777,963       406,308       456,488       14,399       54,461,643      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $224,519,011 and sales of $5,804,402 (excluding short-term securities).
 
 
 
16 Semiannual Report 2010

 

 
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 724,511,565     $ 9,816,448     $ (9,484,126 )   $ 332,322      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 17

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
18 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Capital Appreciation Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. With respect to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was below the Fund’s composite benchmark, which is a 50%/20%/30% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
Turning to expenses, the Trustees noted that the Fund’s actual advisory fee for Class II shares was in the fifth quintile of its Peer Universe, and that the Fund’s total expenses were in the fourth quintile of its Peer Group. The Trustees noted that the Fund’s total expenses were only 16 basis points above the Peer Group median. The Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 19

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
20 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 23

 

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NVIT Cardinalsm Conservative Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
10
   
Financial Highlights
       
11
   
Notes to Financial Statements
       
18
   
Supplemental Information
       
20
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-CON (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Conservative Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Cardinal
  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Conservative Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a,b   01/01/10 - 06/30/10a,b
 
Class I Shares
    Actual       1,000.00       1,010.00       1.45       0.29  
      Hypothetical c     1,000.00       1,023.36       1.45       0.29  
 
 
Class II Shares
    Actual       1,000.00       1,009.50       1.89       0.38  
      Hypothetical c     1,000.00       1,022.91       1.91       0.38  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Conservative Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Fixed Income Funds
    71 .9%
Equity Funds
    18 .2%
Money Market Fund
    9 .9%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
Top Holdings †    
 
NVIT Short-Term Bond Fund, Class Y
    30 .3%
NVIT Core Plus Bond Fund, Class Y
    20 .8%
NVIT Core Bond Fund, Class Y
    20 .8%
NVIT Money Market Fund, Class Y
    9 .9%
NVIT Multi-Manager Large Cap Value Fund, Class Y
    4 .5%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    4 .5%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    2 .4%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    2 .4%
NVIT Multi-Manager International Growth Fund, Class Y
    2 .3%
NVIT Multi-Manager International Value Fund, Class Y
    2 .1%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Conservative Fund
 
                 
                 
Mutual Funds 100.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 18.2%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    809,663     $ 6,380,145  
NVIT Multi-Manager International Value Fund, Class Y (a)
    717,486       5,861,858  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    1,596,441       12,484,170  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    1,657,400       12,596,240  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    813,190       6,635,633  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    751,338       6,566,692  
                 
         
Total Equity Funds (cost $48,351,145)
    50,524,738  
         
 
 
Fixed Income Funds 71.9%
NVIT Core Bond Fund, Class Y (a)
    5,420,312       57,672,125  
NVIT Core Plus Bond Fund, Class Y (a)
    5,186,003       57,720,210  
NVIT Short-Term Bond Fund, Class Y (a)
    8,104,335       84,122,995  
                 
         
Total Fixed Income Funds
(cost $192,569,972)
    199,515,330  
         
 
 
Money Market Fund 9.9%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    27,588,463       27,588,463  
                 
         
Total Money Market Fund
(cost $27,588,463)
    27,588,463  
         
         
Total Mutual Funds (cost $268,509,580)
    277,628,531  
         
         
Total Investments
(cost $268,509,580) (c) — 100.0%
    277,628,531  
         
Liabilities in excess of other assets — 0.0%
    (109,316 )
         
         
NET ASSETS — 100.0%
  $ 277,519,215  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
    Conservative Fund  
       
Assets:
         
Investments in affiliates, at value (cost $268,509,580)
    $ 277,628,531  
Receivable for capital shares issued
      3,063,229  
Prepaid expenses and other assets
      2,447  
           
Total Assets
      280,694,207  
           
Liabilities:
         
Payable for investments purchased
      3,061,700  
Payable for capital shares redeemed
      1,529  
Accrued expenses and other payables:
         
Investment advisory fees
      44,555  
Fund administration fees
      8,560  
Distribution fees
      19,915  
Administrative servicing fees
      10,525  
Accounting and transfer agent fees
      1,828  
Custodian fees
      259  
Compliance program costs (Note 3)
      1,161  
Professional fees
      8,501  
Printing fees
      9,931  
Other
      6,528  
           
Total Liabilities
      3,174,992  
           
Net Assets
    $ 277,519,215  
           
Represented by:
         
Capital
    $ 267,514,263  
Accumulated net investment loss
      (406,629 )
Accumulated net realized gains from investment transactions with affiliates
      1,292,630  
Net unrealized appreciation/(depreciation) from investments in affiliates
      9,118,951  
           
Net Assets
    $ 277,519,215  
           
Net Assets:
         
Class I Shares
    $ 1,825,253  
Class II Shares
      275,693,962  
           
Total
    $ 277,519,215  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      182,787  
Class II Shares
      27,604,777  
           
Total
      27,787,564  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 9.99  
Class II Shares
    $ 9.99  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
    Conservative Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 2,408,146  
           
Total Income
      2,408,146  
           
EXPENSES:
         
Investment advisory fees
      237,192  
Fund administration fees
      17,078  
Distribution fees Class II Shares
      294,361  
Administrative servicing fees Class I Shares
      425  
Administrative servicing fees Class II Shares
      58,874  
Professional fees
      12,780  
Printing fees
      6,126  
Trustee fees
      4,147  
Custodian fees
      1,690  
Accounting and transfer agent fees
      1,914  
Compliance program costs (Note 3)
      434  
Other
      5,489  
           
Total expenses before earnings credits and expenses waived
      640,510  
Distribution fees voluntarily waived — Class II (Note 3)
      (188,393 )
Earnings credit (Note 5)
      (1 )
           
Net Expenses
      452,116  
           
NET INVESTMENT INCOME
      1,956,030  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      406,660  
Net realized gains from investment transactions with affiliates
      877,463  
           
Net realized gains from investment transactions with affiliates
      1,284,123  
           
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (1,550,819 )
           
Net realized/unrealized losses from affiliated investments
      (266,696 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 1,689,334  
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
 
                     
      NVIT Cardinal Conservative Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,956,030       $ 2,937,631  
Net realized gains from investment transactions with affiliates
      1,284,123         1,937,144  
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (1,550,819 )       12,675,774  
                     
Change in net assets resulting from operations
      1,689,334         17,550,549  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (17,185 )       (35,176 )
Class II
      (2,345,474 )       (3,947,006 )
Net realized gains:
                   
Class I
      (13,506 )       (2,537 )
Class II
      (1,990,134 )       (363,475 )
                     
Change in net assets from shareholder distributions
      (4,366,299 )       (4,348,194 )
                     
Change in net assets from capital transactions
      77,321,203         138,077,152  
                     
Change in net assets
      74,644,238         151,279,507  
                     
                     
Net Assets:
                   
Beginning of period
      202,874,977         51,595,470  
                     
End of period
    $ 277,519,215       $ 202,874,977  
                     
Accumulated undistributed net investment loss at end of period
    $ (406,629 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 748,585       $ 1,209,425  
Dividends reinvested
      30,691         37,713  
Cost of shares redeemed
      (314,866 )       (1,368,482 )
                     
Total Class I
      464,410         (121,344 )
                     
Class II Shares
                   
Proceeds from shares issued
      82,472,293         159,704,370  
Dividends reinvested
      4,335,608         4,310,481  
Cost of shares redeemed
      (9,951,108 )       (25,816,355 )
                     
Total Class II
      76,856,793         138,198,496  
                     
Change in net assets from capital transactions
    $ 77,321,203       $ 138,077,152  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      73,634         131,196  
Reinvested
      3,040         3,843  
Redeemed
      (30,990 )       (147,224 )
                     
Total Class I Shares
      45,684         (12,185 )
                     
Class II Shares
                   
Issued
      8,127,041         16,674,008  
Reinvested
      429,137         433,374  
Redeemed
      (974,444 )       (2,588,420 )
                     
Total Class II Shares
      7,581,734         14,518,962  
                     
Total change in shares
      7,627,418         14,506,777  
                     
 
 
Amount designed as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Conservative Fund
 
                                                                                                                                                     
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .06       0 .10       –          0 .10       (0 .10)       (0 .07)     –        (0 .17)     $ 9 .99       1 .00%     $ 1,825,253         0 .29%       2 .02%       0 .29%       3 .72%    
Year Ended December 31, 2009 (e)
  $ 9 .12       0 .20       1 .00       1 .20       (0 .24)       (0 .02)     –        (0 .26)     $ 10 .06       13 .22%     $ 1,379,456         0 .31%       2 .04%       0 .31%       23 .61%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .15       (0 .85)       (0 .70)       (0 .16)       (0 .02)     –        (0 .18)     $ 9 .12       (7 .11%)     $ 1,362,171         0 .29%       2 .15%       0 .40%       24 .30%    
                                                                                                                                                     
Class II Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .06       0 .10       (0 .01)       0 .09       (0 .09)       (0 .07)     –        (0 .16)     $ 9 .99       0 .95%     $ 275,693,962         0 .38%       1 .99%       0 .54%       3 .72%    
Year Ended December 31, 2009 (e)
  $ 9 .13       0 .22       0 .96       1 .18       (0 .23)       (0 .02)     –        (0 .25)     $ 10 .06       13 .02%     $ 201,495,521         0 .39%       2 .28%       0 .55%       23 .61%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .14       (0 .84)       (0 .70)       (0 .15)       (0 .02)     –        (0 .17)     $ 9 .13       (7 .04%)     $ 50,233,299         0 .42%       3 .52%       0 .66%       24 .30%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Conservative Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 277,628,531     $ —     $ —     $ 277,628,531      
 
 
Total
  $ 277,628,531     $ —     $ —     $ 277,628,531      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
 
 
12 Semiannual Report 2010

 

 
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                     
    Fee Schedule   Total Fees    
 
      All assets       0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.28% for the Fund’s Class I and Class II shares until April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                 
For the Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
December 31, 2008 (a)   2009 Amount   June 30, 2010   Total    
 
$ 13,347     $ —     $ —     $ 13,347      
 
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period-ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
14 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $59,299 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $434.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $188,393.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		    Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost     Proceeds   Income   Gain/(Loss)   2010    
 
NVIT Core Bond Fund, Class Y
  $ 40,591,883     $ 16,908,662       $ 1,777,911     $ 513,680     $ 215,100     $ 57,672,125      
 
 
NVIT Core Plus Bond Fund, Class Y
    40,671,262       17,473,069       1,777,911       894,388       501,484       57,720,210      
 
 
NVIT Money Market Fund, Class Y
    20,335,668       8,141,751       888,955       —       —       27,588,463      
 
 
NVIT Multi-Manager International Growth Fund, Class Y
    5,083,917       2,048,868       222,238       13,431       59,740       6,380,145      
 
 
NVIT Multi-Manager International Value Fund, Class Y
    5,058,205       2,047,450       222,239       12,013       61,743       5,861,858      
 
 
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    10,075,293       4,170,947       444,478       100,072       114,277       12,484,170      
 
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    10,059,545       4,203,303       444,478       132,428       113,012       12,596,240      
 
 
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    5,042,003       2,035,439       222,239       —       62,996       6,635,633      
 
 
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    5,034,407       2,068,053       222,238       32,615       63,504       6,566,692      
 
 
NVIT Short-Term Bond Fund, Class Y
    61,006,945       25,134,770       2,666,866       709,519       92,267       84,122,995      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
16 Semiannual Report 2010

 

 
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $84,232,312 and sales of $8,889,553 (excluding short-term securities).
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 270,220,998     $ 7,561,503     $ (153,970)     $ 7,407,533      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 17

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft
 
 
 
18 Semiannual Report 2010

 

 
 
dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Conservative Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the first quintile of its Peer Group. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was below the Fund’s composite benchmark, which is a 15%/5%/80% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
The Trustees then noted that the Fund’s actual advisory fee for Class II shares was in the fifth quintile of its Peer Universe, and that the Fund’s total expenses were in the fifth quintile of its Peer Group. The Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees noted that the Fund’s total expenses were only four basis points above the median. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 19

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
20 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 23

 

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NVIT Cardinalsm Moderate Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-MOD (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Moderate Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Cardinal Moderate Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class I Shares
    Actual       1,000.00       964.20       1.36       0.28  
      Hypothetical c     1,000.00       1,023.41       1.40       0.28  
 
 
Class II Shares
    Actual       1,000.00       963.70       1.80       0.37  
      Hypothetical c     1,000.00       1,022.96       1.86       0.37  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Moderate Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    56 .9%
Fixed Income Funds
    37 .9%
Money Market Fund
    5 .2%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
 
         
Top Holdings †    
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    14 .2%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    14 .1%
NVIT Core Plus Bond Fund, Class Y
    13 .7%
NVIT Core Bond Fund, Class Y
    13 .6%
NVIT Short-Term Bond Fund, Class Y
    10 .6%
NVIT Multi-Manager International Growth Fund, Class Y
    7 .2%
NVIT Multi-Manager International Value Fund, Class Y
    6 .6%
NVIT Money Market Fund, Class Y
    5 .2%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    5 .0%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    4 .9%
NVIT Multi-Manager Small Cap Value Fund
    4 .9%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Moderate Fund
 
                 
                 
Mutual Funds 100.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 56.9%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    6,507,367     $ 51,278,050  
NVIT Multi-Manager International Value Fund, Class Y (a)
    5,757,278       47,036,959  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    12,837,817       100,391,727  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    13,317,557       101,213,430  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    4,353,080       35,521,134  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    4,026,904       35,195,140  
NVIT Multi-Manager Small Cap Growth Fund, Class Y (a)
    1,183,040       14,078,181  
NVIT Multi-Manager Small Cap Value Fund, Class Y (a)
    1,749,619       14,294,385  
NVIT Multi-Manager Small Company Fund, Class Y (a)
    505,493       7,061,740  
                 
         
Total Equity Funds (cost $399,134,483)
    406,070,746  
         
 
 
Fixed Income Funds 37.9%
NVIT Core Bond Fund, Class Y (a)
    9,132,736       97,172,311  
NVIT Core Plus Bond Fund, Class Y (a)
    8,732,313       97,190,649  
NVIT Short-Term Bond Fund, Class Y (a)
    7,282,432       75,591,647  
                 
         
Total Fixed Income Funds
(cost $259,623,509)
    269,954,607  
         
         
Money Market Fund 5.2%
       
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    37,186,331       37,186,331  
                 
         
Total Money Market Fund
(cost $37,186,331)
    37,186,331  
         
         
Total Mutual Funds (cost $695,944,323)
    713,211,684  
         
         
Total Investments
(cost $695,944,323) (c) — 100.0%
    713,211,684  
         
Liabilities in excess of other assets — 0.0%
    (254,923 )
         
         
NET ASSETS — 100.0%
  $ 712,956,761  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Moderate Fund  
       
Assets:
         
Investments in affiliates, at value (cost $695,944,323)
    $ 713,211,684  
Receivable for capital shares issued
      2,150,307  
Prepaid expenses and other assets
      7,437  
           
Total Assets
      715,369,428  
           
Liabilities:
         
Payable for investments purchased
      2,149,343  
Payable for capital shares redeemed
      965  
Accrued expenses and other payables:
         
Investment advisory fees
      116,754  
Fund administration fees
      16,857  
Distribution fees
      51,737  
Administrative servicing fees
      27,448  
Accounting and transfer agent fees
      3,382  
Custodian fees
      1,024  
Compliance program costs (Note 3)
      3,240  
Professional fees
      12,416  
Printing fees
      11,641  
Other
      17,860  
           
Total Liabilities
      2,412,667  
           
Net Assets
    $ 712,956,761  
           
Represented by:
         
Capital
    $ 695,735,247  
Accumulated net investment loss
      (684,971 )
Accumulated net realized gains from investment transactions with affiliates
      639,124  
Net unrealized appreciation/(depreciation) from investments in affiliates
      17,267,361  
           
Net Assets
    $ 712,956,761  
           
Net Assets:
         
Class I Shares
    $ 10,755,985  
Class II Shares
      702,200,776  
           
Total
    $ 712,956,761  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      1,204,795  
Class II Shares
      78,714,820  
           
Total
      79,919,615  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.93  
Class II Shares
    $ 8.92  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Moderate Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 5,353,800  
           
Total Income
      5,353,800  
           
EXPENSES:
         
Investment advisory fees
      627,730  
Fund administration fees
      33,705  
Distribution fees Class II Shares
      772,950  
Administrative servicing fees Class I Shares
      2,341  
Administrative servicing fees Class II Shares
      154,595  
Professional fees
      27,691  
Printing fees
      6,911  
Trustee fees
      11,063  
Custodian fees
      9,675  
Accounting and transfer agent fees
      4,149  
Compliance program costs (Note 3)
      1,327  
Other
      12,871  
           
Total expenses before waived expenses
      1,665,008  
Distribution fees voluntarily waived — Class II (Note 3)
      (494,694 )
           
Net Expenses
      1,170,314  
           
NET INVESTMENT INCOME
      4,183,486  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      689,293  
Net realized losses from investment transactions with affiliates
      (116,979 )
           
Net realized gains from investment transactions with affiliates
      572,314  
           
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (33,732,131 )
           
Net realized/unrealized losses from affiliated investments
      (33,159,817 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (28,976,331 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
 
                     
      NVIT Cardinal Moderate Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 4,183,486       $ 4,933,590  
Net realized gains/(losses) from investment transactions with affiliates
      572,314         (6,646,556 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (33,732,131 )       69,391,309  
                     
Change in net assets resulting from operations
      (28,976,331 )       67,678,343  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (78,374 )       (99,983 )
Class II
      (4,790,083 )       (6,328,668 )
Net realized gains:
                   
Class I
      –         (351 )
Class II
      –         (23,809 )
Return of capital:
                   
Class I
      –         (491 )
Class II
      –         (31,182 )
                     
Change in net assets from shareholder distributions
      (4,868,457 )       (6,484,484 )
                     
Change in net assets from capital transactions
      225,743,468         345,981,770  
                     
Change in net assets
      191,898,680         407,175,629  
                     
                     
Net Assets:
                   
Beginning of period
      521,058,081         113,882,452  
                     
End of period
    $ 712,956,761       $ 521,058,081  
                     
Accumulated undistributed net investment loss at end of period
    $ (684,971 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 4,331,163       $ 5,720,045  
Dividends reinvested
      78,374         100,825  
Cost of shares redeemed
      (786,897 )       (2,052,967 )
                     
Total Class I
      3,622,640         3,767,903  
                     
                     
Class II Shares
                   
Proceeds from shares issued
      220,708,882         342,016,357  
Dividends reinvested
      4,790,083         6,383,659  
Cost of shares redeemed
      (3,378,137 )       (6,186,149 )
                     
Total Class II
      222,120,828         342,213,867  
                     
Change in net assets from capital transactions
    $ 225,743,468       $ 345,981,770  
                     
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Cardinal Moderate Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      457,477         673,722  
Reinvested
      8,415         11,306  
Redeemed
      (83,358 )       (250,583 )
                     
Total Class I Shares
      382,534         434,445  
                     
Class II Shares
                   
Issued
      23,470,093         40,859,493  
Reinvested
      515,049         712,716  
Redeemed
      (364,356 )       (735,594 )
                     
Total Class II Shares
      23,620,786         40,836,615  
                     
Total change in shares
      24,003,320         41,271,060  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Moderate Fund
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data          
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     of Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                                         
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .33       0 .07       (0 .40)       (0 .33)       (0 .07)       –          –          (0 .07)     $ 8 .93       (3 .58%)     $ 10,755,985         0 .28%       1 .47%       0 .28%       0 .23%    
Year Ended December 31, 2009 (e)
  $ 7 .78       0 .14       1 .56       1 .70       (0 .15)       –          –          (0 .15)     $ 9 .33       22 .01%     $ 7,668,257         0 .29%       1 .70%       0 .29%       9 .32%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .11       (2 .15)       (2 .04)       (0 .13)       (0 .05)       –          (0 .18)     $ 7 .78       (20 .45%)     $ 3,018,008         0 .27%       2 .08%       0 .36%       13 .37%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .32       0 .06       (0 .40)       (0 .34)       (0 .06)       –          –          (0 .06)     $ 8 .92       (3 .63%)     $ 702,200,776         0 .37%       1 .33%       0 .53%       0 .23%    
Year Ended December 31, 2009 (e)
  $ 7 .78       0 .15       1 .53       1 .68       (0 .14)       –          –          (0 .14)     $ 9 .32       21 .95%     $ 513,389,824         0 .38%       1 .70%       0 .54%       9 .32%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .11       (2 .16)       (2 .05)       (0 .13)       (0 .05)       –          (0 .18)     $ 7 .78       (20 .48%)     $ 110,864,444         0 .39%       2 .28%       0 .59%       13 .37%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Moderate Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
12 Semiannual Report 2010

 

 
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                 
Asset Type*   Level 1   Level 2   Level 3   Total
 
Assets:
                               
Mutual Funds
  $ 713,211,684     $ —     $ —     $ 713,211,684  
 
 
Total
  $ 713,211,684     $ —     $ —     $ 713,211,684  
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)   Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
14 Semiannual Report 2010

 

 
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.25% for the Fund’s Class I and Class II shares until April 30, 2011. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 19,862     $ —     $ —     $ 19,862      
 
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $156,936 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,327.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $494,694.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		   Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost    Proceeds   Income   Gain/Loss   2010    
 
NVIT Core Bond Fund,
Class Y
  $ 65,367,493     $ 28,698,715      $ (177,357 )     $862,019     $ 200,877     $ 97,172,311      
 
 
NVIT Core Plus Bond Fund,
Class Y
    65,495,152       29,644,339       (177,357 )     1,496,449       520,452       97,190,649      
 
 
NVIT Money Market Fund,
Class Y
    26,198,216       11,059,058       (70,943 )     —       —       37,186,331      
 
 
 
 
 
16 Semiannual Report 2010

 

 
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		   Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost    Proceeds   Income   Gain/Loss   2010    
 
NVIT Multi-Manager International
Growth Fund, Class Y
  $ 39,297,324     $ 16,697,321     $ (106,414 )     $108,733     $ (20,785 )   $ 51,278,050      
 
 
NVIT Multi-Manager International
Value Fund, Class Y
    39,098,819       16,685,747       (106,414 )     97,159       (16,642 )     47,036,959      
 
 
NVIT Multi-Manager Large Cap
Growth Fund, Class Y
    77,879,377       34,004,863       (212,829 )     827,687       (51,733 )     100,391,727      
 
 
NVIT Multi-Manager Large Cap
Value Fund, Class Y
    77,757,883       34,262,216       (212,829 )     1,085,040       (28,681 )     101,213,430      
 
 
NVIT Multi-Manager Mid Cap
Growth Fund, Class Y
    25,982,300       11,059,059       (70,943 )     —       (18,008 )     35,521,134      
 
 
NVIT Multi-Manager Mid Cap
Value Fund, Class Y
    25,943,167       11,232,998       (70,943 )     173,939       (8,677 )     35,195,140      
 
 
NVIT Multi-Manager Small Cap
Growth Fund, Class Y
    10,337,161       4,423,623       (28,377 )     —       (5,193 )     14,078,181      
 
 
NVIT Multi-Manager Small Cap
Value Fund, Class Y
    10,330,430       4,480,198       (28,377 )     56,575       (4,138 )     14,294,385      
 
 
NVIT Multi-Manager Small Company Fund, Class Y
    5,171,796       2,225,237       (14,189 )     13,426       (1,307 )     7,061,740      
 
 
NVIT Short Term Bond Fund,
Class Y
    52,396,269       22,750,891       (141,886 )     632,773       6,149       75,591,647      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $227,224,265 and sales of $1,418,858 (excluding short-term securities).
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 704,450,023     $ 12,965,625     $ (4,203,964)     $ 8,761,661      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Moderate Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. The Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the third quintile and equal to the median of its Peer Group. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was below the Fund’s composite benchmark, which is a 45%/15%/40% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. The Trustees noted that the Fund’s recent performance had improved, and that it had exceeded its benchmark by 57 basis points for the one-year period ended November 30, 2009. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of NFA, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the fourth quintile of its Peer Group. The Trustees noted that the Fund’s total expenses were only 13 basis points above the Peer Group median. The Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Cardinalsm Moderately Aggressive Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-MAG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and Chief Executive Officer
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Moderately Aggressive Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Cardinal Moderately Aggressive Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class I Shares
    Actual       1,000.00       939.00       1.44       0.30  
      Hypothetical c     1,000.00       1,023.31       1.51       0.30  
 
 
Class II Shares
    Actual       1,000.00       938.50       1.87       0.39  
      Hypothetical c     1,000.00       1,022.86       1.96       0.39  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Moderately Aggressive Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    77 .6%
Fixed Income Funds
    22 .4%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
Top Holdings †    
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    17 .0%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    16 .8%
NVIT Multi-Manager International Growth Fund, Class Y
    12 .2%
NVIT Multi-Manager International Value Fund, Class Y
    11 .1%
NVIT Core Plus Bond Fund, Class Y
    8 .5%
NVIT Core Bond Fund, Class Y
    8 .4%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    7 .7%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    7 .6%
NVIT Short-Term Bond Fund, Class Y
    5 .5%
NVIT Multi-Manager Small Cap Value Fund, Class Y
    2 .1%
Other Holdings
    3 .1%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Moderately Aggressive Fund
 
                 
                 
Mutual Funds 100.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 77.6%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    2,970,301     $ 23,405,971  
NVIT Multi-Manager International Value Fund, Class Y (a)
    2,601,329       21,252,857  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    4,122,180       32,235,447  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    4,297,824       32,663,465  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    1,814,520       14,806,481  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    1,675,775       14,646,279  
NVIT Multi-Manager Small Cap Growth Fund, Class Y (a)
    328,067       3,903,995  
NVIT Multi-Manager Small Cap Value Fund, Class Y (a)
    488,930       3,994,561  
NVIT Multi-Manager Small Company Fund, Class Y (a)
    140,438       1,961,920  
                 
         
Total Equity Funds (cost $136,675,970)
    148,870,976  
         
Fixed Income Funds 22.4%
NVIT Core Bond Fund, Class Y (a)
    1,523,810       16,213,340  
NVIT Core Plus Bond Fund, Class Y (a)
    1,458,808       16,236,533  
NVIT Short-Term Bond Fund, Class Y (a)
    1,008,408       10,467,271  
                 
         
Total Fixed Income Funds (cost $39,902,986)
    42,917,144  
         
         
Total Mutual Funds (cost $176,578,956)
    191,788,120  
         
         
Total Investments
(cost $176,578,956) (b) — 100.0%
    191,788,120  
         
Liabilities in excess of other assets — 0.0%
    (86,710 )
         
         
NET ASSETS — 100.0%
  $ 191,701,410  
         
 
(a) Investment in affiliate.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Moderately
 		 
      Aggressive Fund  
       
Assets:
         
Investments in affiliates, at value (cost $176,578,956)
    $ 191,788,120  
Receivable for investments sold
      128,331  
Receivable for capital shares issued
      16,185  
Prepaid expenses and other assets
      1,964  
           
Total Assets
      191,934,600  
           
Liabilities:
         
Payable for capital shares redeemed
      144,516  
Accrued expenses and other payables:
         
Investment advisory fees
      32,664  
Fund administration fees
      7,202  
Distribution fees
      13,416  
Administrative servicing fees
      7,990  
Accounting and transfer agent fees
      1,692  
Trustee fees
      10  
Custodian fees
      1,108  
Compliance program costs (Note 3)
      1,057  
Professional fees
      8,944  
Printing fees
      10,408  
Other
      4,183  
           
Total Liabilities
      233,190  
           
Net Assets
    $ 191,701,410  
           
Represented by:
         
Capital
    $ 177,400,855  
Accumulated net investment loss
      (113,520 )
Accumulated net realized losses from investment transactions with affiliates
      (795,089 )
Net unrealized appreciation/(depreciation) from investments in affiliates
      15,209,164  
           
Net Assets
    $ 191,701,410  
           
Net Assets:
         
Class I Shares
    $ 17,117,100  
Class II Shares
      174,584,310  
           
Total
    $ 191,701,410  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      2,074,556  
Class II Shares
      21,166,022  
           
Total
      23,240,578  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.25  
Class II Shares
    $ 8.25  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Cardinal
 		 
      Moderately
 		 
      Aggressive Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 1,422,426  
           
Total Income
      1,422,426  
           
EXPENSES:
         
Investment advisory fees
      203,537  
Fund administration fees
      14,730  
Distribution fees Class II Shares
      234,818  
Administrative servicing fees Class I Shares
      3,920  
Administrative servicing fees Class II Shares
      46,965  
Professional fees
      12,909  
Printing fees
      6,226  
Trustee fees
      3,668  
Custodian fees
      3,839  
Accounting and transfer agent fees
      1,731  
Compliance program costs (Note 3)
      378  
Other
      5,452  
           
Total expenses before earnings credit and expenses waived and reimbursed
      538,173  
Distribution fees voluntarily waived — Class II (Note 3)
      (150,285 )
Earnings credit (Note 5)
      (1 )
Expenses reimbursed by adviser (Note 3)
      (7 )
           
Net Expenses
      387,880  
           
NET INVESTMENT INCOME
      1,034,546  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      117,305  
Net realized losses from investment transactions with affiliates
      (981,895 )
           
Net realized losses from investment transactions with affiliates
      (864,590 )
           
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (12,889,902 )
           
Net realized/unrealized losses from affiliated investments
      (13,754,492 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (12,719,946 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Cardinal Moderately
 		 
      Aggressive Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,034,546       $ 2,021,560  
Net realized losses from investment transactions with affiliates
      (864,590 )       (9,440,671 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (12,889,902 )       52,787,175  
                     
Change in net assets resulting from operations
      (12,719,946 )       45,368,064  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (107,196 )       (137,402 )
Class II
      (1,040,870 )       (2,213,638 )
Net realized gains:
                   
Class I
      –         (4,904 )
Class II
      –         (69,629 )
Return of capital:
                   
Class I
      –         (2,638 )
Class II
      –         (43,928 )
                     
Change in net assets from shareholder distributions
      (1,148,066 )       (2,472,139 )
                     
Change in net assets from capital transactions
      3,257,492         56,473,642  
                     
Change in net assets
      (10,610,520 )       99,369,567  
                     
                     
Net Assets:
                   
Beginning of period
      202,311,930         102,942,363  
                     
End of period
    $ 191,701,410       $ 202,311,930  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (113,520 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 6,267,636       $ 8,609,971  
Dividends reinvested
      107,196         144,944  
Cost of shares redeemed
      (1,280,967 )       (2,334,072 )
                     
Total Class I
      5,093,865         6,420,843  
                     
Class II Shares
                   
Proceeds from shares issued
      6,204,558         60,786,274  
Dividends reinvested
      1,040,870         2,327,195  
Cost of shares redeemed
      (9,081,801 )       (13,060,670 )
                     
Total Class II
      (1,836,373 )       50,052,799  
                     
Change in net assets from capital transactions
    $ 3,257,492       $ 56,473,642  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      703,241         1,108,275  
Reinvested
      12,310         17,615  
Redeemed
      (146,607 )       (315,982 )
                     
Total Class I Shares
      568,944         809,908  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Cardinal Moderately
 		 
      Aggressive Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class II Shares
                   
Issued
      691,203         8,928,186  
Reinvested
      119,517         288,478  
Redeemed
      (1,034,169 )       (1,665,706 )
                     
Total Class II Shares
      (223,449 )       7,550,958  
                     
Total change in shares
      345,495         8,360,866  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Moderately Aggressive Fund
 
                                                                                                                                                         
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		    Return
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .84       0 .05       (0 .59)       (0 .54)       (0 .05)       –          –         (0 .05)     $ 8 .25       (6 .10%)     $ 17,117,100         0 .30%       1 .19%       0 .30%       4 .10%    
Year Ended December 31, 2009 (e)
  $ 7 .08       0 .11       1 .76       1 .87       (0 .11)       –          –         (0 .11)     $ 8 .84       26 .69%     $ 13,307,323         0 .30%       1 .44%       0 .30%       15 .09%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .10       (2 .81)       (2 .71)       (0 .13)       (0 .08)       –         (0 .21)     $ 7 .08       (27 .24%)     $ 4,927,688         0 .28%       1 .52%       0 .36%       13 .38%    
                                                                                                                                                         
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .84       0 .04       (0 .58)       (0 .54)       (0 .05)       –          –         (0 .05)     $ 8 .25       (6 .15%)     $ 174,584,310         0 .39%       1 .00%       0 .55%       4 .10%    
Year Ended December 31, 2009 (e)
  $ 7 .08       0 .09       1 .78       1 .87       (0 .11)       –          –         (0 .11)     $ 8 .84       26 .58%     $ 189,004,607         0 .38%       1 .23%       0 .54%       15 .09%    
Period Ended December 31, 2008 (f)
  $ 10 .00       0 .10       (2 .81)       (2 .71)       (0 .13)       (0 .08)       –         (0 .21)     $ 7 .08       (27 .26%)     $ 98,014,675         0 .39%       1 .68%       0 .60%       13 .38%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Moderately Aggressive Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
12 Semiannual Report 2010

 

 
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 191,788,120     $ —     $ —     $ 191,788,120      
 
 
Total
  $ 191,788,120     $ —     $ —     $ 191,788,120      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
14 Semiannual Report 2010

 

 
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.25% for the Fund’s Class I and Class II shares until April 30, 2011. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    For the Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    December 31, 2008 (a)   2009 Amount   June 30, 2010   Total    
 
    $ 19,616     $ —     $ 7     $ 19,623      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $50,885 in Administrative Servicing fees from the Fund.
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $378.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $150,285.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Core Bond Fund
  $ 15,245,421     $ 940,405     $ 623,098     $ 155,598     $ 72,160     $ 16,213,340      
 
 
NVIT Core Plus Bond Fund
    15,275,261       1,111,929       623,098       274,107       159,309       16,236,533      
 
 
NVIT Multi-Manager International Growth Fund
    25,458,767       1,305,110       1,038,496       50,673       (160,716)       23,405,971      
 
 
NVIT Multi-Manager International Value Fund
    25,329,895       1,299,338       1,038,496       44,901       (364,880)       21,252,857      
 
 
 
 
 
16 Semiannual Report 2010

 

 
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Multi-Manager Large Cap Growth Fund
    35,317,770       2,055,484       1,453,894       299,273       (240,789)       32,235,447      
 
 
NVIT Multi-Manager Large Cap Value Fund
    35,262,499       2,154,636       1,453,895       398,424       (160,923)       32,663,465      
 
 
NVIT Multi-Manager Mid Cap Growth Fund
    15,149,265       752,662       623,098       —       (105,617)       14,806,481      
 
 
NVIT Multi-Manager Mid Cap Value Fund
    15,126,430       832,390       623,098       79,727       (24,270)       14,646,279      
 
 
NVIT Multi-Manager Small Cap Growth Fund
    4,018,092       200,710       166,159       —       (19,645)       3,903,995      
 
 
NVIT Multi-Manager Small Cap Value Fund
    4,015,463       219,471       166,159       18,761       (6,341)       3,994,561      
 
 
NVIT Multi-Manager Small Company Fund
    2,010,289       104,418       83,080       4,063       (28,382)       1,961,920      
 
 
NVIT Short-Term Bond Fund
    10,183,507       598,674       415,398       96,899       15,504       10,467,271      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $11,575,227 and sales of $8,307,969 (excluding short-term securities).
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 185,551,199     $ 6,236,921     $ —     $ 6,236,921      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Moderately Aggressive Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. The Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the fifth quintile of its Peer Group. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was below the Fund’s composite benchmark, which is a 55%/25%/20% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. The Trustees noted that the Fund’s lack of exposure to emerging markets had a negative impact on performance. The Trustees also noted that the Fund’s recent performance had improved, adding that it had exceeded its benchmark by 48 basis points for the one-year period ended November 30, 2009. The Trustee noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of NFA, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees noted that the Fund’s actual advisory fee for Class II shares was in the first quintile of its Peer Universe, but that the Fund’s total expenses were in the fifth quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees then noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Cardinalsm Moderately Conservative Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
10
   
Financial Highlights
       
11
   
Notes to Financial Statements
       
18
   
Supplemental Information
       
20
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CD-MCON (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Cardinal Moderately Conservative Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Cardinal Moderately Conservative Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class I Shares
    Actual       1,000.00       988.10       1.43       0.29  
      Hypothetical c     1,000.00       1,023.36       1.45       0.29  
 
 
Class II Shares
    Actual       1,000.00       986.70       1.87       0.38  
      Hypothetical c     1,000.00       1,022.91       1.91       0.38  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Cardinal Moderately Conservative Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Fixed Income Funds
    54 .8%
Equity Funds
    37 .1%
Money Market Fund
    8 .1%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
Top Holdings †    
 
NVIT Core Plus Bond Fund, Class Y
    18 .6%
NVIT Core Bond Fund, Class Y
    18 .6%
NVIT Short-Term Bond Fund, Class Y
    17 .6%
NVIT Multi-Manager Large Cap Value Fund, Class Y
    9 .2%
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    9 .2%
NVIT Money Market Fund, Class Y
    8 .1%
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    4 .9%
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    4 .8%
NVIT Multi-Manager International Growth Fund, Class Y
    4 .7%
NVIT Multi-Manager International Value Fund, Class Y
    4 .3%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Cardinal Moderately Conservative Fund
 
                 
                 
Mutual Funds 100.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 37.1%
NVIT Multi-Manager International Growth Fund, Class Y (a)
    1,466,760     $ 11,558,070  
NVIT Multi-Manager International Value Fund, Class Y (a)
    1,296,401       10,591,598  
NVIT Multi-Manager Large Cap Growth Fund, Class Y (a)
    2,894,753       22,636,970  
NVIT Multi-Manager Large Cap Value Fund, Class Y (a)
    3,005,009       22,838,067  
NVIT Multi-Manager Mid Cap Growth Fund, Class Y (a)
    1,474,293       12,030,233  
NVIT Multi-Manager Mid Cap Value Fund, Class Y (a)
    1,363,251       11,914,808  
                 
         
Total Equity Funds (cost $88,636,606)
    91,569,746  
         
 
 
Fixed Income Funds 54.8%
NVIT Core Bond Fund, Class Y (a)
    4,326,684       46,035,911  
NVIT Core Plus Bond Fund, Class Y (a)
    4,137,710       46,052,713  
NVIT Short-Term Bond Fund, Class Y (a)
    4,187,274       43,463,906  
                 
         
Total Fixed Income Funds
(cost $130,304,473)
    135,552,530  
         
Money Market Fund 8.1%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    20,117,884       20,117,884  
                 
         
Total Money Market Fund
(cost $20,117,884)
    20,117,884  
         
         
Total Mutual Funds (cost $239,058,963)
    247,240,160  
         
Total Investments
(cost $239,058,963) (c) — 100.0%
    247,240,160  
         
Liabilities in excess of other assets — 0.0%
    (97,932 )
         
         
NET ASSETS — 100.0%
  $ 247,142,228  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Cardinal Moderately
 		 
    Conservative Fund  
       
Assets:
         
Investments in affiliates, at value (cost $239,058,963)
    $ 247,240,160  
Receivable for capital shares issued
      1,242,458  
Prepaid expenses and other assets
      2,594  
           
Total Assets
      248,485,212  
           
Liabilities:
         
Payable for investments purchased
      1,238,727  
Payable for capital shares redeemed
      3,731  
Accrued expenses and other payables:
         
Investment advisory fees
      40,164  
Fund administration fees
      8,056  
Distribution fees
      17,900  
Administrative servicing fees
      9,420  
Accounting and transfer agent fees
      1,719  
Custodian fees
      408  
Compliance program costs (Note 3)
      1,115  
Professional fees
      6,968  
Printing fees
      9,921  
Other
      4,855  
           
Total Liabilities
      1,342,984  
           
Net Assets
    $ 247,142,228  
           
Represented by:
         
Capital
    $ 238,816,314  
Accumulated net investment loss
      (326,648 )
Accumulated net realized gains from investment transactions with affiliates
      471,365  
Net unrealized appreciation/(depreciation) from investments in affiliates
      8,181,197  
           
Net Assets
    $ 247,142,228  
           
Net Assets:
         
Class I Shares
    $ 2,342,209  
Class II Shares
      244,800,019  
           
Total
    $ 247,142,228  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      245,314  
Class II Shares
      25,635,156  
           
Total
      25,880,470  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 9.55  
Class II Shares
    $ 9.55  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
 
           
           
      NVIT
 		 
      Cardinal Moderately
 		 
      Conservative Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 2,038,393  
           
Total Income
      2,038,393  
           
EXPENSES:
         
Investment advisory fees
      217,303  
Fund administration fees
      16,212  
Distribution fees Class II Shares
      269,050  
Administrative servicing fees Class I Shares
      515  
Administrative servicing fees Class II Shares
      53,812  
Professional fees
      12,155  
Printing fees
      6,049  
Trustee fees
      3,826  
Custodian fees
      3,401  
Accounting and transfer agent fees
      1,762  
Compliance program costs (Note 3)
      459  
Other
      4,973  
           
Total expenses before waived expenses
      589,517  
Distribution fees voluntarily waived — Class II (Note 3)
      (172,194 )
           
Net Expenses
      417,323  
           
NET INVESTMENT INCOME
      1,621,070  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gain distributions from underlying affiliated funds
      326,664  
Net realized gains from investment transactions with affiliates
      128,683  
           
Net realized gains from investment transactions with affiliates
      455,347  
           
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (6,091,389 )
           
Net realized/unrealized losses from affiliated investments
      (5,636,042 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (4,014,972 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
 
                     
      NVIT Cardinal Moderately Conservative Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 1,621,070       $ 2,144,344  
Net realized gains/(losses) from investment transactions with affiliates
      455,347         (1,547,412 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (6,091,389 )       17,990,367  
                     
Change in net assets resulting from operations
      (4,014,972 )       18,587,299  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (19,706 )       (32,132 )
Class II
      (1,928,012 )       (2,876,173 )
Net realized gains:
                   
Class I
      (417 )       (996 )
Class II
      (43,280 )       (105,780 )
                     
Change in net assets from shareholder distributions
      (1,991,415 )       (3,015,081 )
                     
Change in net assets from capital transactions
      68,122,243         124,585,581  
                     
Change in net assets
      62,115,856         140,157,799  
                     
                     
Net Assets:
                   
Beginning of period
      185,026,372         44,868,573  
                     
End of period
    $ 247,142,228       $ 185,026,372  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (326,648 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 779,884       $ 1,165,896  
Dividends reinvested
      20,123         33,128  
Cost of shares redeemed
      (96,439 )       (1,080,306 )
                     
Total Class I
      703,568         118,718  
                     
Class II Shares
                   
Proceeds from shares issued
      70,026,142         126,730,960  
Dividends reinvested
      1,971,292         2,981,953  
Cost of shares redeemed
      (4,578,759 )       (5,246,050 )
                     
Total Class II
      67,418,675         124,466,863  
                     
Change in net assets from capital transactions
    $ 68,122,243       $ 124,585,581  
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      79,066         129,218  
Reinvested
      2,051         3,528  
Redeemed
      (9,789 )       (126,211 )
                     
Total Class I Shares
      71,328         6,535  
                     
Class II Shares
                   
Issued
      7,109,076         13,953,491  
Reinvested
      201,019         312,534  
Redeemed
      (466,871 )       (601,166 )
                     
Total Class II Shares
      6,843,224         13,664,859  
                     
Total change in shares
      6,914,552         13,671,394  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Cardinal Moderately Conservative Fund
 
                                                                                                                                                     
          Operations     Distributions                 Ratios/Supplemental Data    
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     of Capital     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .75       0 .09       (0 .21)       (0 .12)       (0 .08)       –        –        (0 .08)     $ 9 .55       (1 .19%)     $ 2,342,209         0 .29%       1 .92%       0 .29%       0 .96%    
Year Ended December 31, 2009 (e)
  $ 8 .47       0 .17       1 .32       1 .49       (0 .20)       (0 .01)     –        (0 .21)     $ 9 .75       17 .64%     $ 1,697,147         0 .30%       1 .91%       0 .31%       10 .72%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .13       (1 .49)       (1 .36)       (0 .14)       (0 .03)     –        (0 .17)     $ 8 .47       (13 .73%)     $ 1,419,127         0 .26%       2 .04%       0 .41%       22 .21%    
                                                                                                                                                     
Class II Shares
                                                                                                                                                   
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .76       0 .09       (0 .22)       (0 .13)       (0 .08)       –        –        (0 .08)     $ 9 .55       (1 .33%)     $ 244,800,019         0 .38%       1 .79%       0 .54%       0 .96%    
Year Ended December 31, 2009 (e)
  $ 8 .47       0 .19       1 .30       1 .49       (0 .19)       (0 .01)     –        (0 .20)     $ 9 .76       17 .68%     $ 183,329,225         0 .39%       2 .08%       0 .56%       10 .72%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .12       (1 .49)       (1 .37)       (0 .13)       (0 .03)     –       (0 .16)     $ 8 .47       (13 .77%)     $ 43,449,446         0 .39%       2 .97%       0 .67%       22 .21%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 28, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT CardinalSM Moderately Conservative Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 247,240,160     $ —     $ —     $ 247,240,160      
 
 
Total
  $ 247,240,160     $ —     $ —     $ 247,240,160      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the
 
 
 
12 Semiannual Report 2010

 

 
 
accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.20%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.25% for the Fund’s Class I and Class II shares until April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                             
 For the Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		   
December 31, 2008 (a)   2009 Amount   June 30, 2010   Total
 
$ 18,438     $ 8,526     $ —     $ 26,964  
 
 
(a) For the period March 28, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
14 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $54,327 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $459.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund. The Trust and NFD have entered into a written contract waiving 0.16% of these fees for Class II shares of the Fund until at least April 30, 2011. During the six months ended June 30, 2010, the waiver of such distribution fees by NFD amounted to $172,194.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliate Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases at
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Core Bond Fund, Class Y
  $ 32,439,924     $ 12,373,668     $ 367,421     $ 411,383     $ 110,367     $ 46,035,911      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases at
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Core Plus Bond Fund, Class Y
    32,502,463       12,825,255       367,421       715,472       276,927       46,052,713      
 
 
NVIT Money Market Fund, Class Y
    14,858,326       5,427,521       167,964       —       —       20,117,884      
 
 
NVIT Multi-Manager International Growth Fund, Class Y
    9,286,454       3,416,709       104,977       24,508       18,127       11,558,070      
 
 
NVIT Multi-Manager International Value Fund, Class Y
    9,240,149       3,414,077       104,977       21,876       27,316       10,591,598      
 
 
NVIT Multi-Manager Large Cap Growth Fund, Class Y
    18,406,152       6,973,883       209,954       189,481       (15,983 )     22,636,970      
 
 
NVIT Multi-Manager Large Cap Value Fund, Class Y
    18,377,802       7,033,175       209,954       248,773       17,090       22,838,067      
 
 
NVIT Multi-Manager Mid Cap Growth Fund, Class Y
    9,210,937       3,392,201       104,977       —       (12,238 )     12,030,233      
 
 
NVIT Multi-Manager Mid Cap Value Fund, Class Y
    9,197,250       3,451,635       104,977       59,434       20,659       11,914,808      
 
 
NVIT Short Term Bond Fund, Class Y
    31,573,880       11,900,949       356,923       367,466       13,082       43,463,906      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $70,209,073 and sales of $2,099,545 (excluding short-term securities).
 
 
 
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7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies.  Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk.  The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 241,779,746     $ 5,970,213     $ (509,799 )   $ 5,460,414      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 17

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
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brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Cardinal Moderately Conservative Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. The Trustees noted that the Fund is a Fund of Funds that invests in other underlying funds. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s performance for Class II shares for the one-year period was below the Fund’s composite benchmark, which is a 30%/10%/60% blend of the Russell 3000 Index, the MSCI EAFE Index, and the Barclays Capital U.S. Aggregate Bond Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class II shares were in the fourth quintile of its Peer Group, but that the Fund’s total expenses were in the third quintile and equal to the median of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 19

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
20 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 23

 

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Templeton NVIT International Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
9
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
12
   
Financial Highlights
       
13
   
Notes to Financial Statements
       
21
   
Supplemental Information
       
23
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes and the Funds make the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-IV (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder Templeton NVIT International Value Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
Templeton NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
International Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class III Shares
    Actual       1,000.00       871.90       4.55       0.98  
      Hypothetical b     1,000.00       1,019.93       4.91       0.98  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary Templeton NVIT International Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    93 .0%
Mutual Fund
    6 .2%
Preferred Stock
    0 .5%
Other assets in excess of liabilities
    0 .3%
         
      100 .0%
         
Top Industries †    
 
Oil, Gas & Consumable Fuels
    10 .2%
Commercial Banks
    10 .0%
Diversified Telecommunication Services
    9 .3%
Pharmaceuticals
    7 .6%
Insurance
    5 .6%
Semiconductors & Semiconductor Equipment
    4 .7%
Industrial Conglomerates
    4 .6%
Media
    3 .7%
Food Products
    3 .6%
Aerospace & Defense
    3 .2%
Other Industries
    37 .5%
         
      100 .0%
         
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    6 .2%
Novartis AG
    2 .2%
Siemens AG
    2 .1%
Koninklijke Philips Electronics NV
    2 .0%
DBS Group Holdings Ltd. 
    2 .0%
Samsung Electronics Co., Ltd. 
    1 .9%
Bayerische Motoren Werke AG
    1 .9%
GlaxoSmithKline PLC
    1 .8%
Nestle SA
    1 .8%
Unilever NV
    1 .8%
Other Holdings
    76 .3%
         
      100 .0%
         
Top Countries †    
 
United Kingdom
    14 .7%
Germany
    13 .0%
Switzerland
    9 .2%
France
    9 .1%
Netherlands
    8 .3%
United States
    6 .2%
Spain
    4 .6%
Hong Kong
    3 .7%
South Korea
    3 .3%
Singapore
    3 .3%
Other Countries
    24 .6%
         
      100 .0%
         
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
Templeton NVIT International Value Fund
 
                 
Common Stocks 93.0%
                 
      Shares       Market
Value 		 
 
 
AUSTRIA 0.7%
Diversified Telecommunication Services 0.7%
Telekom Austria AG
    172,610     $ 1,919,386  
                 
 
 
BRAZIL 2.4%
Aerospace & Defense 1.0%
Empresa Brasileira de Aeronautica SA ADR-BR
    134,460       2,816,937  
                 
Oil, Gas & Consumable Fuels 1.4%
Petroleo Brasileiro SA — Preference Shares ADR-BR
    125,870       3,750,926  
                 
              6,567,863  
                 
 
 
CANADA 1.9%
Oil, Gas & Consumable Fuels 1.9%
Husky Energy, Inc.
    103,000       2,442,084  
Talisman Energy, Inc.
    180,300       2,726,814  
                 
              5,168,898  
                 
 
 
CHINA 2.1%
Diversified Telecommunication Services 1.2%
China Telecom Corp., Ltd., H Shares
    7,116,000       3,418,583  
                 
Electrical Equipment 0.9%
Shanghai Electric Group Co. Ltd., Class H*
    5,452,239       2,418,222  
                 
              5,836,805  
                 
 
 
DENMARK 0.9%
Electrical Equipment 0.9%
Vestas Wind Systems AS*
    57,190       2,380,025  
                 
 
 
FRANCE 9.1%
Auto Components 1.6%
Compagnie Generale des Etablissements Michelin, Class B
    61,800       4,305,744  
                 
Diversified Telecommunication Services 1.4%
France Telecom SA
    222,630       3,861,499  
                 
Electrical Equipment 0.5%
Alstom SA
    28,920       1,309,421  
                 
Hotels, Restaurants & Leisure 0.5%
Accor SA*
    29,980       1,387,934  
                 
Insurance 1.0%
AXA SA
    182,314       2,785,228  
                 
Media 0.9%
Vivendi SA
    115,860       2,354,517  
                 
Multi-Utilities 0.6%
GDF Suez
    58,930       1,676,594  
                 
Oil, Gas & Consumable Fuels 1.1%
Total SA
    69,290       3,093,024  
                 
Pharmaceuticals 1.5%
Sanofi-Aventis SA
    67,320       4,054,502  
                 
              24,828,463  
                 
 
 
GERMANY 12.9%
Air Freight & Logistics 1.2%
Deutsche Post AG REG
    231,460       3,374,718  
                 
Automobiles 1.9%
Bayerische Motoren Werke AG
    107,430       5,218,580  
                 
Electric Utilities 1.3%
E.ON AG
    133,520       3,590,114  
                 
Health Care Providers & Services 1.1%
Celesio AG
    142,120       3,099,009  
                 
Industrial Conglomerates 2.1%
Siemens AG REG
    63,550       5,683,894  
                 
Insurance 1.4%
Muenchener Rueckversicherungs AG REG
    30,020       3,769,397  
                 
Pharmaceuticals 1.1%
Merck KGaA
    40,300       2,946,838  
                 
Semiconductors & Semiconductor Equipment 1.1%
Infineon Technologies AG*
    529,580       3,070,191  
                 
Software 1.7%
SAP AG
    105,130       4,674,840  
                 
              35,427,581  
                 
 
 
HONG KONG 3.7%
Industrial Conglomerates 0.5%
Hutchison Whampoa Ltd.
    240,000       1,476,976  
                 
Real Estate Management & Development 1.7%
Cheung Kong Holdings Ltd.
    158,000       1,823,443  
Swire Pacific Ltd., Class A
    246,500       2,798,083  
                 
              4,621,526  
                 
Wireless Telecommunication Services 1.5%
China Mobile Ltd.
    406,500       4,039,736  
                 
              10,138,238  
                 
 
 
INDIA 1.4%
Commercial Banks 1.4%
ICICI Bank Ltd. ADR-IN
    104,940       3,792,532  
                 
 
 
IRELAND 0.7%
Construction Materials 0.7%
CRH PLC
    99,620       2,052,481  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Templeton NVIT International Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
ITALY 2.6%
Commercial Banks 1.6%
Intesa Sanpaolo SpA
    776,729     $ 2,045,669  
UniCredit SpA
    1,030,763       2,280,085  
                 
              4,325,754  
                 
Oil, Gas & Consumable Fuels 1.0%
ENI SpA
    147,487       2,707,282  
                 
              7,033,036  
                 
 
 
JAPAN 2.7%
Commercial Banks 0.8%
Mitsubishi UFJ Financial Group, Inc.
    500,900       2,274,440  
                 
Electronic Equipment, Instruments & Components 0.7%
FUJIFILM Holdings Corp.
    64,200       1,855,346  
                 
Software 1.2%
Nintendo Co., Ltd.
    11,600       3,405,867  
                 
              7,535,653  
                 
 
 
NETHERLANDS 8.3%
Chemicals 0.8%
Akzo Nobel NV
    39,890       2,073,281  
                 
Diversified Financial Services 1.3%
ING Groep NV CVA-NL*
    488,166       3,612,680  
                 
Energy Equipment & Services 0.0%†
SBM Offshore NV
    3,292       47,096  
                 
Food Products 1.8%
Unilever NV CVA-NL
    179,510       4,902,277  
Unilever NV NYRS-NL
    60       1,639  
                 
              4,903,916  
                 
Industrial Conglomerates 2.0%
Koninklijke Philips Electronics NV
    183,110       5,468,043  
                 
Oil, Gas & Consumable Fuels 1.7%
Royal Dutch Shell PLC, Class B ADR-NL
    93,650       4,521,422  
                 
Professional Services 0.7%
Randstad Holding NV*
    52,090       2,046,887  
                 
              22,673,325  
                 
 
 
NORWAY 2.7%
Diversified Telecommunication Services 1.7%
Telenor ASA
    375,870       4,734,951  
                 
Oil, Gas & Consumable Fuels 1.0%
StatoilHydro ASA
    137,910       2,656,812  
                 
              7,391,763  
                 
 
 
PORTUGAL 1.2%
Diversified Telecommunication Services 1.2%
Portugal Telecom SGPS SA REG
    336,850       3,366,798  
                 
SINGAPORE 3.2%
Commercial Banks 2.0%
DBS Group Holdings Ltd.
    563,000       5,463,852  
                 
Diversified Telecommunication Services 1.2%
Singapore Telecommunications Ltd.
    1,594,000       3,446,091  
                 
              8,909,943  
                 
 
 
SOUTH KOREA 3.3%
Commercial Banks 1.0%
KB Financial Group, Inc. ADR-KR
    72,775       2,757,445  
                 
Household Durables 0.4%
LG Electronics, Inc.
    14,029       1,066,821  
                 
Semiconductors & Semiconductor Equipment 1.9%
Samsung Electronics Co., Ltd. GDR-KR (a) (b)
    17,000       5,316,858  
                 
              9,141,124  
                 
 
 
SPAIN 4.6%
Commercial Banks 1.0%
Banco Santander SA
    256,045       2,684,936  
                 
Diversified Telecommunication Services 1.7%
Telefonica SA
    244,173       4,523,229  
                 
Electric Utilities 0.8%
Iberdrola SA*
    393,693       2,213,412  
                 
Oil, Gas & Consumable Fuels 1.1%
Repsol YPF SA
    151,975       3,066,867  
                 
              12,488,444  
                 
 
 
SWEDEN 2.5%
Communications Equipment 1.4%
Telefonaktiebolaget LM Ericsson, Class B
    345,190       3,828,925  
                 
Machinery 1.1%
Atlas Copco AB, Class A
    200,040       2,924,720  
                 
              6,753,645  
                 
 
 
SWITZERLAND 9.2%
Capital Markets 0.7%
UBS AG REG*
    137,790       1,821,584  
                 
Food Products 1.8%
Nestle SA REG
    102,110       4,923,625  
                 
Insurance 2.4%
ACE Ltd.
    54,860       2,824,193  
Swiss Reinsurance Co. Ltd. REG
    90,750       3,728,758  
                 
              6,552,951  
                 
Pharmaceuticals 3.2%
Novartis AG REG
    123,600       5,990,043  
Roche Holding AG
    19,970       2,748,705  
                 
              8,738,748  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
SWITZERLAND (continued)
                 
Professional Services 1.1%
Adecco SA REG
    65,570     $ 3,128,136  
                 
              25,165,044  
                 
 
 
TAIWAN 2.2%
Computers & Peripherals 0.5%
Compal Electronics, Inc. GDR-TW (b)
    240,017       1,443,534  
                 
Semiconductors & Semiconductor Equipment 1.7%
Taiwan Semiconductor Manufacturing Co., Ltd.
    2,431,214       4,544,046  
                 
              5,987,580  
                 
 
 
UNITED KINGDOM 14.7%
Aerospace & Defense 2.2%
BAE Systems PLC
    685,020       3,188,233  
Rolls-Royce Group PLC*
    334,590       2,792,752  
Rolls-Royce Group PLC, Class C* (a)
    30,113,100       44,992  
                 
              6,025,977  
                 
Airlines 0.8%
British Airways PLC*
    739,690       2,149,001  
                 
Commercial Banks 2.2%
HSBC Holdings PLC
    367,600       3,370,281  
Standard Chartered PLC
    111,180       2,707,279  
                 
              6,077,560  
                 
Insurance 0.8%
Aviva PLC
    495,940       2,304,728  
                 
Media 2.8%
British Sky Broadcasting Group PLC
    372,580       3,890,400  
Pearson PLC
    285,800       3,758,778  
                 
              7,649,178  
                 
Multiline Retail 0.7%
Marks & Spencer Group PLC
    387,990       1,911,399  
                 
Oil, Gas & Consumable Fuels 1.1%
BP PLC
    597,320       2,859,471  
                 
Pharmaceuticals 1.8%
GlaxoSmithKline PLC
    293,410       4,982,356  
                 
Specialty Retail 0.7%
Kingfisher PLC
    626,550       1,962,708  
                 
Wireless Telecommunication Services 1.6%
Vodafone Group PLC
    2,097,670       4,322,233  
                 
              40,244,611  
                 
         
Total Common Stocks (cost $245,084,004)
    254,803,238  
         
                 
                 
Preferred Stock 0.5%
                 
      Shares       Market
Value 		 
 
 
BRAZIL 0.5%
Metals & Mining 0.5%
Vale SA ADR-BR
    67,360       1,415,908  
                 
         
Total Preferred Stock (cost $962,143)
    1,415,908  
         
                 
                 
Mutual Fund 6.2%
                 
                 
Money Market Fund 6.2%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    16,965,206       16,965,205  
                 
         
Total Mutual Fund (cost $16,965,206)
    16,965,205  
         
         
Total Investments (cost $263,011,353) (d) — 99.7%
    273,184,351  
         
Other assets in excess of liabilities — 0.3%
    735,930  
         
         
NET ASSETS — 100.0%
  $ 273,920,281  
         
 
* Denotes a non-income producing security.
 
(a) Fair Valued Security.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $6,760,392 which represents 2.47% of net assets.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
AS Stock Corporation
 
ASA Stock Corporation
 
BR Brazil
 
CVA Dutch Certificate
 
GDR Global Depositary Receipt
 
IN India
 
KGaA Limited Partnership with shares
 
KR South Korea
 
Ltd. Limited
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
Templeton NVIT International Value Fund (Continued)
 
NL Netherlands
 
NV Public Traded Company
 
NYRS New York Registry Shares
 
PLC Public Limited Company
 
REG Registered Shares
 
SA Stock Company
 
SGPS Holding Enterprise
 
SpA Limited Share Company
 
TW Taiwan
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      Templeton NVIT
 		 
      International
 		 
    Value Fund  
       
Assets:
         
Investments, at value (cost $263,011,353)
    $ 273,184,351  
Foreign currencies, at value (cost $287,340)
      288,279  
Dividends receivable
      591,272  
Receivable for investments sold
      277,898  
Receivable for capital shares issued
      53,738  
Reclaims receivable
      397,643  
Prepaid expenses and other assets
      3,269  
           
Total Assets
      274,796,450  
           
Liabilities:
         
Payable for investments purchased
      385,422  
Payable for capital shares redeemed
      5,220  
Cash overdraft (Note 2)
      207,795  
Accrued expenses and other payables:
         
Investment advisory fees
      179,706  
Fund administration fees
      11,694  
Administrative servicing fees
      31,589  
Accounting and transfer agent fees
      11,785  
Trustee fees
      421  
Custodian fees
      1,015  
Compliance program costs (Note 3)
      2,464  
Professional fees
      15,042  
Printing fees
      11,903  
Other
      12,113  
           
Total Liabilities
      876,169  
           
Net Assets
    $ 273,920,281  
           
Represented by:
         
Capital
    $ 256,199,517  
Accumulated undistributed net investment income
      2,692,418  
Accumulated net realized gains from investment and foreign currency transactions
      4,869,615  
Net unrealized appreciation/(depreciation) from investments
      10,172,998  
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (14,267 )
           
Net Assets
    $ 273,920,281  
           
Net Assets:
         
Class III Shares
    $ 273,920,281  
           
Total
    $ 273,920,281  
           
Shares outstanding (unlimited number of shares authorized):
         
Class III Shares
      23,132,473  
           
Total
      23,132,473  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class III Shares
    $ 11.84  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      Templeton
 		 
      NVIT International
 		 
    Value Fund  
       
INVESTMENT INCOME:
         
Dividend income
    $ 6,453,718  
Foreign tax withholding
      (702,166 )
           
Total Income
      5,751,552  
           
EXPENSES:
         
Investment advisory fees
      1,094,502  
Fund administration fees
      59,583  
Administrative servicing fees Class III Shares
      218,902  
Professional fees
      19,623  
Printing fees
      11,256  
Trustee fees
      5,139  
Custodian fees
      5,271  
Accounting and transfer agent fees
      6,805  
Compliance program costs (Note 3)
      533  
Other
      6,015  
           
Total expenses before earnings credits
      1,427,629  
Earnings credit (Note 5)
      (4 )
           
Net Expenses
      1,427,625  
           
NET INVESTMENT INCOME
      4,323,927  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      5,030,869  
Net realized losses from foreign currency transactions (Note 2)
      (161,241 )
           
Net realized gains from investment and foreign currency transactions
      4,869,628  
           
Net change in unrealized appreciation/(depreciation) from investments
      (48,965,367 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (4,867 )
           
Net change in unrealized appreciation/(depreciation) from investments and translation of assets and liabilities denominated in foreign currencies
      (48,970,234 )
           
Net realized/unrealized losses from investments, foreign currency transactions and translation of assets and liabilities denominated in foreign currencies
      (44,100,606 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (39,776,679 )
           
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      Templeton NVIT International Value Fund  
         
      Six Months Ended
 		      Period Ended
 		 
      June 30, 2010
 		      December 31, 2009 (a)
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 4,323,927       $ 1,462,577  
Net realized gains from investment and foreign currency transactions
      4,869,628         5,275,089  
Net change in unrealized appreciation/(depreciation) from investments and translations of assets and liabilities denominated in foreign currencies
      (48,970,234 )       59,128,965  
                     
Change in net assets resulting from operations
      (39,776,679 )       65,866,631  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class III
      (1,691,858 )       (1,092,326 )
Net realized gains:
                   
Class III
      (5,035,300 )       (549,704 )
                     
Change in net assets from shareholder distributions
      (6,727,158 )       (1,642,030 )
                     
Change in net assets from capital transactions
      (9,117,377 )       265,316,894  
                     
Change in net assets
      (55,621,214 )       329,541,495  
                     
                     
Net Assets:
                   
Beginning of period
      329,541,495         –  
                     
End of period
    $ 273,920,281       $ 329,541,495  
                     
Accumulated undistributed net investment income at end of period
    $ 2,692,418       $ 60,349  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class III Shares
                   
Proceeds from shares issued
    $ 16,749,863       $ 290,732,950  
Dividends reinvested
      6,727,158         1,642,030  
Cost of shares redeemed
      (32,594,398 )       (27,058,086 )
                     
Total Class III
      (9,117,377 )       265,316,894  
                     
Change in net assets from capital transactions
    $ (9,117,377 )     $ 265,316,894  
                     
                     
SHARE TRANSACTIONS:
                   
Class III Shares
                   
Issued
      1,202,580         25,634,190  
Reinvested
      534,326         121,443  
Redeemed
      (2,304,916 )       (2,055,150 )
                     
Total Class III Shares
      (568,010 )       23,700,483  
                     
Total change in shares
      (568,010 )       23,700,483  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
(a) For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
Templeton NVIT International Value Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios/Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)     Turnover (c)    
                                                                                                                                               
Class III shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 13 .90       0 .19       (1 .96)       (1 .77)       (0 .07)       (0 .22)       (0 .29)     $ 11 .84       (12 .81%)     $ 273,920,281         0 .98%       2 .97%       0 .98%       7 .95%    
Period Ended December 31, 2009 (d) (e)
  $ 10 .00       0 .10       3 .98       4 .08       (0 .16)       (0 .02)       (0 .18)     $ 13 .90       41 .16%     $ 329,541,495         1 .00%       0 .94%       1 .00%       13 .06%    
                                                                                                                                               
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares.
(d)  Per share calculations were performed using average shares method.
(e)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the Templeton NVIT International Value Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (i) a multiple of earnings; (ii) the discount from market value of a similar, freely traded security; (iii) the
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
yield-to-maturity for debt issues; or (iv) a combination of these and other methods. Fair value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ 2,816,937     $ 6,025,977     $ —     $ 8,842,914      
 
 
Air Freight & Logistics
    —       3,374,718       —       3,374,718      
 
 
Airlines
    —       2,149,001       —       2,149,001      
 
 
Auto Components
    —       4,305,744       —       4,305,744      
 
 
Automobiles
    —       5,218,580       —       5,218,580      
 
 
Capital Markets
    1,821,584       —       —       1,821,584      
 
 
Chemicals
    —       2,073,281       —       2,073,281      
 
 
Commercial Banks
    6,549,977       20,826,542       —       27,376,519      
 
 
Communications Equipment
    —       3,828,925       —       3,828,925      
 
 
Computers & Peripherals
    —       1,443,534       —       1,443,534      
 
 
Construction Materials
    —       2,052,481       —       2,052,481      
 
 
Diversified Financial Services
    —       3,612,680       —       3,612,680      
 
 
Diversified Telecommunication Services
    —       25,270,537       —       25,270,537      
 
 
Electric Utilities
    —       5,803,526       —       5,803,526      
 
 
Electrical Equipment
    —       6,107,668       —       6,107,668      
 
 
Electronic Equipment, Instruments & Components
    —       1,855,346       —       1,855,346      
 
 
Energy Equipment & Services
    —       47,096       —       47,096      
 
 
 
 
 
14 Semiannual Report 2010

 

 
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Food Products
  $ 1,639     $ 9,825,902     $ —     $ 9,827,541      
 
 
Health Care Providers & Services
    —       3,099,009       —       3,099,009      
 
 
Hotels, Restaurants & Leisure
    —       1,387,934       —       1,387,934      
 
 
Household Durables
    —       1,066,821       —       1,066,821      
 
 
Industrial Conglomerates
    —       12,628,913       —       12,628,913      
 
 
Insurance
    2,824,193       12,588,111       —       15,412,304      
 
 
Machinery
    —       2,924,720       —       2,924,720      
 
 
Media
    —       10,003,695       —       10,003,695      
 
 
Multiline Retail
    —       1,911,399       —       1,911,399      
 
 
Multi-Utilities
    —       1,676,594       —       1,676,594      
 
 
Oil, Gas & Consumable Fuels
    13,441,246       14,383,456       —       27,824,702      
 
 
Pharmaceuticals
    —       20,722,444       —       20,722,444      
 
 
Professional Services
    —       5,175,023       —       5,175,023      
 
 
Real Estate Management & Development
    —       4,621,526       —       4,621,526      
 
 
Semiconductors & Semiconductor Equipment
    —       12,931,095       —       12,931,095      
 
 
Software
    —       8,080,707       —       8,080,707      
 
 
Specialty Retail
    —       1,962,708       —       1,962,708      
 
 
Wireless Telecommunication Services
    —       8,361,969       —       8,361,969      
 
 
Total Common Stocks
    27,455,576       227,347,662       —       254,803,238      
 
 
Mutual Fund
    16,965,205       —       —       16,965,205      
 
 
Preferred Stock
    1,415,908       —       —       1,415,908      
 
 
Total Assets
  $ 45,836,689     $ 227,347,662     $ —     $ 273,184,351      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Cash Overdraft
 
As of June 30, 2010, the Fund had an overdrawn balance of $207,795 with its custodian bank, JPMorgan Chase Bank, N.A. To offset the overdraft, JPMorgan Chase Bank, N.A. advanced an amount equal to the overdraft. Consistent with the Fund’s borrowing policy, the advance is deemed a temporary loan to the Fund. Such loan is payable upon demand and bears interest from the date of such advance to the date of payment at the rate agreed upon with JPMorgan Chase Bank, N.A. under the custody agreement. This advance is separate from, and was not made pursuant to, the Credit Agreement discussed in Note 5.
 
(c)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(f)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2009 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable year 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(g)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
 
 
16 Semiannual Report 2010

 

 
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Templeton Investment Counsel, LLC (the “Subadviser”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the Subadviser.
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.75%      
 
 
    $1 billion and more     0.70%      
 
 
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.75%      
 
 
 
From these fees, pursuant to a subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $583,736 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.87% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the Fund had no cumulative potential reimbursements.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class III shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $218,902 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $533.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate
 
 
 
18 Semiannual Report 2010

 

 
 
account that redeems Class III shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $2,686.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $9,991.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $22,001,937 and sales of $26,451,458 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 263,011,354     $ 26,169,930     $ (15,996,933)     $ 10,172,997      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
20 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 21

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
Templeton NVIT International Value Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Templeton Investment Counsel, LLC (“Templeton”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for the period since the Fund’s inception in March 2009 through September 30, 2009, its performance for Class III shares was in the fifth quintile of its Peer Group. She also noted that, for the three-month period ended September 30, 2009, the Fund’s Class III shares underperformed its benchmark, the MSCI All Country World Ex-U.S. Index. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of Templeton, the Trustees took into consideration Templeton’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees then noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class III shares were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
22 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
26 Semiannual Report 2010

 

 
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NVIT Short Term Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
9
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
21
   
Supplemental Information
       
23
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-STB (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Short Term Bond Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Short Term Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       1,018.60       2.90       0.58  
      Hypothetical b     1,000.00       1,021.92       2.91       0.58  
 
 
Class II Shares
    Actual       1,000.00       1,018.20       4.10       0.82  
      Hypothetical b     1,000.00       1,020.73       4.11       0.82  
 
 
Class Y Shares
    Actual       1,000.00       1,019.20       2.10       0.42  
      Hypothetical b     1,000.00       1,022.71       2.11       0.42  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Short Term Bond Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Corporate Bonds
    40 .2%
U.S. Government Sponsored & Agency Obligations
    22 .0%
U.S. Treasury Notes
    16 .3%
Collateralized Mortgage Obligations
    7 .7%
U.S. Government Mortgage Backed Agencies
    5 .2%
Mutual Fund
    3 .1%
Commercial Mortgage Backed Securities
    2 .7%
Yankee Dollars
    1 .4%
Asset-Backed Securities
    0 .3%
Other assets in excess of liabilities
    1 .1%
         
      100 .0%
         
 
         
Top Industries †    
 
Diversified Financial Services
    22 .1%
Thrifts & Mortgage Finance
    3 .7%
Commercial Banks
    3 .1%
Metals & Mining
    2 .3%
Insurance
    1 .3%
Chemicals
    1 .1%
Energy Equipment & Services
    1 .1%
Machinery
    0 .9%
Media
    0 .9%
Oil, Gas & Consumable Fuels
    0 .9%
Other Industries
    62 .6%
         
      100 .0%
         
         
Top Holdings †    
 
Freddie Mac, 1.25%, 01/26/12
    9 .3%
Pooled Funding Trust I, 2.74%, 02/15/12
    5 .7%
U.S. Treasury Note, 0.88%, 05/31/11
    5 .6%
Pooled Funding Trust II, 2.63%, 03/30/12
    4 .5%
Citigroup, Inc., 2.13%, 04/30/12
    4 .0%
U.S. Central Federal Credit Union, 1.90%, 10/19/12
    3 .4%
Federal Home Loan Banks, 1.75%, 03/08/13
    3 .4%
U.S. Treasury Note, 1.75%, 11/15/11
    3 .4%
U.S. Treasury Note, 1.13%, 06/30/11
    3 .3%
Invesco Liquid Assets Portfolio — Institutional Class
    3 .1%
Other Holdings
    54 .3%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Short Term Bond Fund
 
                 
                 
Asset-Backed Securities 0.3%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Credit Card 0.2%
Advanta Business Card Master Trust,
Series 2007-A2, Class A2,
5.00%, 03/20/13
  $ 31,881     $ 31,563  
Golden Credit Card Trust,
Series 2008-3, Class A,
1.35%, 07/15/17 (a)(b)
    1,000,000       1,006,207  
                 
              1,037,770  
                 
 
 
Student Loan 0.1%
Access Group, Inc.,
Series 2002-1, Class A2, 0.72%, 09/25/25 (a)
    580,008       578,498  
                 
         
Total Asset-Backed Securities
(cost $1,598,695)
    1,616,268  
         
                 
                 
Collateralized Mortgage Obligations 7.7%
                 
Fannie Mae REMICS, Series 2009-42, Class AP,
4.50%, 03/25/39
    11,271,264       11,850,453  
Freddie Mac REMICS, Series 3563, Class BA,
4.00%, 06/15/22
    3,865,534       4,036,107  
Freddie Mac REMICS, Series 3616, Class PA,
4.50%, 11/15/39
    4,486,677       4,848,279  
Freddie Mac REMICS, Series 3640, Class EL,
4.00%, 03/15/20
    4,860,946       5,114,737  
Government National Mortgage Association, Series 2009-22, Class AG,
4.00%, 10/16/32
    4,760,413       4,953,743  
Government National Mortgage Association, Series 2010-29, Class BA,
4.50%, 04/20/36
    4,418,450       4,662,377  
                 
         
Total Collateralized Mortgage Obligations (cost $35,123,378)
    35,465,696  
         
                 
                 
Commercial Mortgage Backed Securities 2.7%
                 
Banc of America Commercial Mortgage, Inc., Series 2004-4, Class A3 4.13%, 07/10/42
    99,820       99,766  
Bear Stearns Commercial Mortgage Securities
               
Series 2004-T16, Class A4,
4.32%, 02/13/46
    495,218       501,062  
Series 2005-T18, Class A3,
4.77%, 02/13/42 (a)
    175,000       177,168  
Series 2007-T28, Class A2,
5.59%, 09/11/42
    900,000       947,121  
GE Capital Commercial Mortgage Corp., Series 2005-C1, Class A3 4.58%, 06/10/48
    600,000       614,967  
GS Mortgage Securities Corp. II,
Series 2004-GG2, Class A6 5.40%, 08/10/38 (a)
    1,000,000       1,054,823  
JPMorgan Chase Commercial Mortgage Securities Corp.
               
Series 2001-CIBC, Class A3,
6.26%, 03/15/33
    279,551       283,348  
Series 2006-LDP6, Class ASB,
5.49%, 04/15/43 (a)
    1,000,000       1,060,643  
LB-UBS Commercial Mortgage Trust
               
Series 2004-C4, Class A3,
5.29%, 06/15/29 (a)
    600,000       621,837  
Series 2004-C6, Class A4,
4.58%, 08/15/29
    350,000       354,334  
Series 2005-C2, Class A3,
4.91%, 04/15/30
    750,000       756,135  
Series 2005-C3, Class A3,
4.65%, 07/15/30
    1,380,000       1,411,784  
Series 2007-C6, Class A2,
5.85%, 07/15/40
    746,775       777,339  
Morgan Stanley Capital I
               
Series 2005-IQ9, Class A3,
4.54%, 07/15/56
    910,000       920,229  
Series 2005-T19, Class A2,
4.73%, 06/12/47
    77,354       77,307  
Series 2005-T19, Class A3,
4.83%, 06/12/47
    750,000       774,076  
Series 2005-T19, Class AAB,
4.85%, 06/12/47
    170,000       177,843  
Series 2006-HQ9, Class A3,
5.71%, 07/12/44
    1,000,000       1,060,433  
Series 2008-T29, Class A3,
6.46%, 01/11/43 (a)
    137,000       147,545  
Morgan Stanley Dean Witter Capital I,
Series 2001-TOP5, Class A4
6.39%, 10/15/35
    462,312       483,580  
                 
         
Total Commercial Mortgage Backed Securities (cost $11,947,746)
    12,301,340  
         
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Short Term Bond Fund (Continued)
 
                 
                 
                 
Corporate Bonds 40.2%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Airlines 0.2%
Continental Airlines 2001-1, Pass Through Trust,
Series 01A2, Class A-2, 6.50%, 06/15/11
  $ 1,000,000     $ 996,500  
 
 
Beverages 0.7%
Anheuser-Busch InBev Worldwide, Inc.,
7.20%, 01/15/14 (b)
    1,500,000       1,724,752  
SABMiller PLC
               
6.20%, 07/01/11 (b)
    655,000       684,511  
5.70%, 01/15/14 (b)
    750,000       829,058  
                 
              3,238,321  
                 
 
 
Chemicals 1.1%
Airgas, Inc.,
2.85%, 10/01/13
    3,000,000       3,025,161  
Cytec Industries, Inc.,
6.00%, 10/01/15
    2,000,000       2,198,402  
                 
              5,223,563  
                 
 
 
Commercial Banks 3.1%
Citibank NA,
1.75%, 12/28/12
    10,000,000       10,178,290  
Svenska Handelsbanken AB,
2.88%, 09/14/12 (b)
    2,750,000       2,791,118  
Wells Fargo Capital XIII,
7.70%, 03/26/13 (c)
    1,000,000       1,010,000  
                 
              13,979,408  
                 
 
 
Consumer Finance 0.7%
American Honda Finance Corp.
               
2.38%, 03/18/13 (b)
    2,000,000       2,027,814  
6.70%, 10/01/13 (b)
    1,000,000       1,138,188  
                 
              3,166,002  
                 
 
 
Diversified Financial Services 21.9%
Bank of America Corp.,
7.13%, 10/15/11
    2,000,000       2,117,812  
Bear Stearns Cos LLC (The),
6.95%, 08/10/12
    867,000       950,985  
Citigroup Funding, Inc.
               
2.13%, 07/12/12
    13,000,000       13,336,999  
2.25%, 12/10/12
    10,000,000       10,294,030  
Citigroup, Inc.
               
2.13%, 04/30/12
    18,000,000       18,441,180  
6.50%, 08/19/13
    2,000,000       2,130,354  
General Electric Capital Corp.,
Series A, 6.13%, 02/22/11
    1,500,000       1,548,208  
General Electric Capital Corp.,
3.50%, 08/13/12
    2,000,000       2,064,384  
HSBC Finance Corp.,
6.38%, 10/15/11
    1,000,000       1,045,065  
JPMorgan Chase & Co.,
5.38%, 10/01/12
    2,000,000       2,161,664  
Pooled Funding Trust I,
2.74%, 02/15/12 (b)
    25,000,000       25,730,250  
Pooled Funding Trust II,
2.63%, 03/30/12 (b)
    20,000,000       20,456,060  
                 
              100,276,991  
                 
 
 
Diversified Telecommunication Services 0.4%
Verizon Communications, Inc.,
4.90%, 09/15/15
    1,675,000       1,839,978  
                 
 
 
Electric Utilities 0.4%
Pacific Gas & Electric Co.,
4.20%, 03/01/11
    750,000       765,355  
Southern California Edison Co.,
5.75%, 03/15/14
    1,000,000       1,125,366  
                 
              1,890,721  
                 
 
 
Energy Equipment & Services 0.8%
Smith International, Inc.,
8.63%, 03/15/14
    1,500,000       1,781,436  
Weatherford International Ltd.,
5.15%, 03/15/13
    1,000,000       1,047,606  
Weatherford International, Inc.,
Series B, 6.63%, 11/15/11
    1,000,000       1,057,067  
                 
              3,886,109  
                 
 
 
Food & Staples Retailing 0.2%
CVS Caremark Corp.,
2.04%, 09/10/10 (a)
    1,000,000       1,001,973  
                 
 
 
Health Care Equipment & Supplies 0.4%
Covidien International Finance SA,
5.45%, 10/15/12
    1,800,000       1,963,438  
                 
 
 
Industrial Conglomerates 0.7%
Tyco International Finance SA,
6.00%, 11/15/13
    2,750,000       3,078,081  
                 
 
 
Insurance 1.3%
MetLife, Inc.,
6.75%, 06/01/16
    2,000,000       2,262,698  
Principal Life Income Funding Trusts,
5.30%, 12/14/12
    750,000       807,826  
Prudential Financial, Inc.,
3.63%, 09/17/12
    2,750,000       2,832,423  
                 
              5,902,947  
                 
 
 
Machinery 0.9%
Eaton Corp.,
4.90%, 05/15/13
    3,625,000       3,948,038  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Media 0.9%
Comcast Cable Communications Holdings, Inc.,
8.38%, 03/15/13
  $ 547,000     $ 633,409  
Time Warner Cable, Inc.
               
6.20%, 07/01/13
    2,150,000       2,404,646  
8.25%, 02/14/14
    750,000       886,534  
                 
              3,924,589  
                 
 
 
Metals & Mining 1.5%
Rio Tinto Finance USA Ltd.,
5.88%, 07/15/13
    2,394,000       2,622,991  
Teck Resources Ltd.,
9.75%, 05/15/14
    3,500,000       4,136,356  
                 
              6,759,347  
                 
 
 
Oil, Gas & Consumable Fuels 0.8%
DCP Midstream LLC,
7.88%, 08/16/10
    1,000,000       1,007,330  
Energy Transfer Partners LP,
6.00%, 07/01/13
    1,250,000       1,356,661  
XTO Energy, Inc.,
5.00%, 08/01/10
    1,500,000       1,504,332  
                 
              3,868,323  
                 
 
 
Thrifts & Mortgage Finance 3.7%
U.S. Central Federal Credit Union,
1.90%, 10/19/12
    15,000,000       15,309,435  
WMC Finance USA, Ltd.,
5.13%, 05/15/13
    1,550,000       1,693,015  
                 
              17,002,450  
                 
 
 
Wireless Telecommunication Services 0.5%
Cellco Partnership/Verizon Wireless Capital LLC
               
7.38%, 11/15/13
    1,000,000       1,172,353  
5.55%, 02/01/14
    1,000,000       1,121,145  
                 
              2,293,498  
                 
         
Total Corporate Bonds (cost $179,888,753)
    184,240,277  
         
                 
                 
U.S. Government Mortgage Backed Agencies 5.2%
                 
Fannie Mae Pool
               
Pool# 747271
               
3.22%, 07/01/34 (a)
    3,959,916       4,128,620  
Pool# 886345
               
6.23%, 08/01/36 (a)
    2,827,781       3,039,947  
Pool# 893776
               
5.99%, 09/01/36 (a)
    2,750,871       2,973,593  
Pool# 949691
               
6.07%, 09/01/37 (a)
    3,518,307       3,796,405  
Pool# AA6943
               
4.50%, 05/01/39
    2,195,523       2,279,639  
Freddie Mac Non Gold Pool
               
Pool# 1Q0648
               
5.77%, 06/01/37 (a)
    5,813,357       6,192,998  
Pool# 1B3601
               
5.65%, 10/01/37 (a)
    1,287,056       1,356,056  
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $23,247,051)
    23,767,258  
         
                 
                 
U.S. Government Sponsored & Agency
Obligations 22.0%
                 
Fannie Mae
1.75%, 03/23/11
    6,000,000       6,058,470  
Farmer Mac Guaranteed Notes Trust
2006-2 5.50%, 07/15/11 (b)
    10,000,000       10,507,710  
Federal Home Loan Banks
               
1.75%, 03/08/13
    15,000,000       15,291,570  
3.13%, 12/13/13
    5,000,000       5,284,385  
2.38%, 03/14/14
    5,000,000       5,137,665  
4.88%, 03/11/16
    5,000,000       5,674,120  
Freddie Mac
               
1.25%, 01/26/12
    42,000,000       42,159,726  
5.00%, 01/30/14
    4,400,000       4,947,708  
New Valley Generation II Pass Through Trust
5.57%, 05/01/20
    5,433,349       5,992,015  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $100,135,571)
    101,053,369  
         
                 
                 
U.S. Treasury Notes 16.3%
                 
U.S. Treasury Note
               
0.88%, 02/28/11
    10,000,000       10,038,670  
0.88%, 05/31/11
    25,000,000       25,119,150  
1.13%, 06/30/11
    15,000,000       15,108,405  
1.38%, 09/15/12
    5,000,000       5,076,170  
1.75%, 11/15/11
    15,000,000       15,265,425  
2.38%, 08/31/10
    4,000,000       4,014,532  
                 
         
Total U.S. Treasury Notes (cost $73,968,611)
    74,622,352  
         
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Short Term Bond Fund (Continued)
 
                 
                 
                 
Yankee Dollars 1.4%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Energy Equipment & Services 0.2%
Weatherford International Ltd.,
4.95%, 10/15/13
  $ 1,000,000     $ 1,051,323  
                 
 
 
Independent Power Producers & Energy Traders 0.4%
TransAlta Corp.,
4.75%, 01/15/15
    1,500,000       1,579,429  
                 
 
 
Metals & Mining 0.8%
Xstrata Canada Corp.
               
7.35%, 06/05/12
    2,476,000       2,683,417  
7.25%, 07/15/12
    1,000,000       1,083,071  
                 
              3,766,488  
                 
         
Total Yankee Dollars (cost $6,201,021)
    6,397,240  
         
                 
                 
Mutual Fund 3.1%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 3.1%
Invesco Liquid Assets Portfolio – Institutional Class, 0.21% (d)
    14,234,391       14,234,391  
                 
         
Total Mutual Fund (cost $14,234,391)
    14,234,391  
         
         
Total Investments
(cost $446,345,217) (e) — 98.9%
    453,698,191  
Other assets in excess of liabilities — 1.1%
    4,987,630  
         
         
NET ASSETS — 100.0%
  $ 458,685,821  
         
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $66,895,668 which represents 14.59% of net assets.
 
(c) Variable Rate and Perpetual Bond Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date reflects the next call date.
 
(d) Represents 7-day effective yield as of June 30, 2010.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
AB Stock Company
 
LLC Limited Liability Company
 
LP Limited Partnership
 
Ltd. Limited
 
NA National Association
 
PLC Public Limited Company
 
REMICS Real Estate Mortgage Investment Conduits
 
SA Stock Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Short Term
 		 
      Bond Fund  
       
Assets:
         
Investments, at value (cost $446,345,217)
    $ 453,698,191  
Interest and dividends receivable
      3,056,457  
Receivable for investments sold
      144,999  
Receivable for capital shares issued
      2,022,845  
Reclaims receivable
      8,935  
Prepaid expenses and other assets
      4,716  
           
Total Assets
      458,936,143  
           
Liabilities:
         
Payable for capital shares redeemed
      31,379  
Accrued expenses and other payables:
         
Investment advisory fees
      128,627  
Fund administration fees
      15,171  
Distribution fees
      21,435  
Administrative servicing fees
      9,944  
Accounting and transfer agent fees
      5,878  
Custodian fees
      1,187  
Compliance program costs (Note 3)
      2,097  
Professional fees
      16,187  
Printing fees
      8,906  
Other
      9,511  
           
Total Liabilities
      250,322  
           
Net Assets
    $ 458,685,821  
           
Represented by:
         
Capital
    $ 450,527,234  
Accumulated undistributed net investment income
      56,743  
Accumulated net realized gains from investment transactions
      748,870  
Net unrealized appreciation/(depreciation) from investments
      7,352,974  
           
Net Assets
    $ 458,685,821  
           
Net Assets:
         
Class I Shares
    $ 5,553,294  
Class II Shares
      104,801,061  
Class Y Shares
      348,331,466  
           
Total
    $ 458,685,821  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      534,447  
Class II Shares
      10,120,590  
Class Y Shares
      33,558,824  
           
Total
      44,213,861  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 10.39  
Class II Shares
    $ 10.36  
Class Y Shares
    $ 10.38  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Short Term
 		 
      Bond Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 4,840,060  
Dividend income
      19,360  
           
Total Income
      4,859,420  
           
EXPENSES:
         
Investment advisory fees
      703,970  
Fund administration fees
      77,739  
Distribution fees Class II Shares
      130,986  
Administrative servicing fees Class I Shares
      1,660  
Administrative servicing fees Class II Shares
      78,592  
Professional fees
      24,679  
Printing fees
      12,113  
Trustee fees
      6,961  
Custodian fees
      6,981  
Accounting and transfer agent fees
      7,028  
Compliance program costs (Note 3)
      721  
Other
      8,741  
           
Total expenses before earnings credits
      1,060,171  
Earnings credit (Note 4)
      (382 )
           
Net Expenses
      1,059,789  
           
NET INVESTMENT INCOME
      3,799,631  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      760,399  
Net change in unrealized appreciation/(depreciation) from investments
      3,128,175  
           
Net realized/unrealized gains from investments
      3,888,574  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 7,688,205  
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Short Term Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 3,799,631       $ 4,899,506  
Net realized gains from investment transactions
      760,399         728,220  
Net change in unrealized appreciation from investments
      3,128,175         6,400,795  
                     
Change in net assets resulting from operations
      7,688,205         12,028,521  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (26,371 )       (12,653 )
Class II
      (774,894 )       (1,402,353 )
Class Y
      (2,941,623 )       (3,783,657 )
Net realized gains:
                   
Class I
      –         (2,256 )
Class II
      –         (329,512 )
Class Y
      –         (640,784 )
                     
Change in net assets from shareholder distributions
      (3,742,888 )       (6,171,215 )
                     
Change in net assets from capital transactions
      93,827,864         261,608,978  
                     
Change in net assets
      97,773,181         267,466,284  
                     
                     
Net Assets:
                   
Beginning of period
      360,912,640         93,446,356  
                     
End of period
    $ 458,685,821       $ 360,912,640  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ 56,743       $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 5,031,716       $ 906,758  
Dividends reinvested
      26,371         14,909  
Cost of shares redeemed
      (99,442 )       (383,639 )
                     
Total Class I
      4,958,645         538,028  
                     
Class II Shares
                   
Proceeds from shares issued
      10,236,286         108,156,639  
Dividends reinvested
      774,894         1,731,865  
Cost of shares redeemed
      (13,791,583 )       (24,016,965 )
                     
Total Class II
      (2,780,403 )       85,871,539  
                     
Class Y Shares
                   
Proceeds from shares issued
      92,735,976         189,086,892  
Dividends reinvested
      2,941,623         4,424,441  
Cost of shares redeemed
      (4,027,977 )       (18,311,922 )
                     
Total Class Y
      91,649,622         175,199,411  
                     
Change in net assets from capital transactions
    $ 93,827,864       $ 261,608,978  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Short Term Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      485,749         90,167  
Reinvested
      2,547         1,455  
Redeemed
      (9,595 )       (36,893 )
                     
Total Class I Shares
      478,701         54,729  
                     
Class II Shares
                   
Issued
      992,712         10,581,382  
Reinvested
      75,203         168,859  
Redeemed
      (1,337,285 )       (2,355,948 )
                     
Total Class II Shares
      (269,370 )       8,394,293  
                     
Class Y Shares
                   
Issued
      8,961,450         18,531,306  
Reinvested
      284,754         431,333  
Redeemed
      (389,425 )       (1,813,717 )
                     
Total Class Y Shares
      8,856,779         17,148,922  
                     
Total change in shares
      9,066,110         25,597,944  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Short Term Bond Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b)(c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .29       0 .09       0 .10       0 .19       (0 .09)       –          (0 .09)     $ 10 .39       1 .86%     $ 5,553,294         0 .58%       1 .82%       0 .58%       34 .31%    
Year Ended December 31, 2009 (e)
  $ 9 .80       0 .24       0 .48       0 .72       (0 .20)       (0 .03)       (0 .23)     $ 10 .29       7 .39%     $ 573,625         0 .59%       2 .25%       0 .59%       101 .24%    
Period Ended December 31, 2008 (e)(f)
  $ 10 .00       0 .22       (0 .25)       (0 .03)       (0 .17)       –          (0 .17)     $ 9 .80       (0 .34%)     $ 9,967         0 .50%       2 .94%       0 .53%       88 .81%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .25       0 .08       0 .11       0 .19       (0 .08)       –          (0 .08)     $ 10 .36       1 .82%     $ 104,801,061         0 .82%       1 .60%       0 .82%       34 .31%    
Year Ended December 31, 2009 (e)
  $ 9 .77       0 .21       0 .48       0 .69       (0 .18)       (0 .03)       (0 .21)     $ 10 .25       7 .11%     $ 106,513,719         0 .84%       1 .95%       0 .84%       101 .24%    
Period Ended December 31, 2008 (e)(f)
  $ 10 .00       0 .22       (0 .29)       (0 .07)       (0 .16)       –          (0 .16)     $ 9 .77       (0 .67%)     $ 19,505,830         0 .89%       2 .92%       0 .92%       88 .81%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .28       0 .10       0 .10       0 .20       (0 .10)       –          (0 .10)     $ 10 .38       1 .92%     $ 348,331,466         0 .42%       1 .99%       0 .42%       34 .31%    
Year Ended December 31, 2009 (e)
  $ 9 .79       0 .26       0 .47       0 .73       (0 .21)       (0 .03)       (0 .24)     $ 10 .28       7 .53%     $ 253,825,296         0 .45%       2 .46%       0 .45%       101 .24%    
Period Ended December 31, 2008 (e)(f)
  $ 10 .00       0 .24       (0 .27)       (0 .03)       (0 .18)       –          (0 .18)     $ 9 .79       (0 .33%)     $ 73,930,759         0 .50%       3 .10%       0 .52%       88 .81%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds, the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Short Term Bond Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company, Nationwide Mutual Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operates as fund-of-funds, such as NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) were valued at the mean price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. On May 21, 2010, debt and other fixed-income securities (other than short-term obligations) were valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing
 
 
 
14 Semiannual Report 2010

 

 
 
service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affect the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Asset-Backed Securities
  $ —     $ 1,616,268     $ —     $ 1,616,268      
 
 
Collateralized Mortgage Obligations
    —       35,465,696       —       35,465,696      
 
 
Commercial Mortgage Backed Securities
    —       12,301,340       —       12,301,340      
 
 
Corporate Bonds
    —       184,240,277       —       184,240,277      
 
 
Mutual Fund
    14,234,391       —       —       14,234,391      
 
 
U.S. Government Mortgage Backed Agencies
    —       23,767,258       —       23,767,258      
 
 
U.S. Government Sponsored & Agency Obligations
    —       101,053,369       —       101,053,369      
 
 
U.S. Treasury Notes
    —       74,622,352       —       74,622,352      
 
 
Yankee Dollars
    —       6,397,240       —       6,397,240      
 
 
Total Assets
  $ 14,234,391     $ 439,463,800     $ —     $ 453,698,191      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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
 
 
 
16 Semiannual Report 2010

 

 
 
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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Nationwide Asset Management LLC (“NWAM”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of NWAM.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.35%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $191,489 for the six months ended June 30, 2010.
 
Until April 30, 2010, the Trust and NFA had entered into a written Expense Limitation Agreement, which limited the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.50% for all share classes.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/ year in which NFA waived or reimbursed fees or expenses to the Fund are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 10,295     $ —     $ —     $ 10,295      
 
 
(a) For the period March 25, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to the NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                     
    Combined Fee Schedule        
 
      Up to $25 billion       0.025%      
 
 
      $25 billion and more       0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced. NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Fund (collectively, the “Cardinal Funds”) are excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
 
 
18 Semiannual Report 2010

 

 
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provides a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $80,252 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $721.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $228,612,604 and sales of $133,502,515 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $0 and sales of $20,128,125 of U.S. Government securities.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
7. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 446,345,217     $ 7,488,614     $ (135,640)     $ 7,352,974      
 
 
 
8. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
20 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 21

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Short Term Bond Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Nationwide Asset Management, LLC (“NWAM”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the fourth quintile of its Peer Universe. For the one-year period, the Trustees noted that the Fund outperformed its benchmark, the Merrill Lynch 1-3 Year Treasury Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration NWAM’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NWAM.
 
With respect to expenses, the Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the first quintile of its Peer Group, and that the Fund’s actual advisory fee was in the second quintile of its Peer Group. The Trustees also noted that the Fund’s total expenses were in the first quintile of its Peer Group, and that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
22 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
26 Semiannual Report 2010

 

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American Funds NVIT Asset Allocation Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
4
   
Statement of Assets and Liabilities
       
5
   
Statement of Operations
       
6
   
Statements of Changes in Net Assets
       
7
   
Financial Highlights
       
8
   
Notes to Financial Statements
       
13
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-AM-AA (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder American Funds NVIT Asset Allocation Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
American Funds NVIT Asset Allocation Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       946.70       3.19       0.66  
      Hypothetical c     1,000.00       1,021.52       3.31       0.66  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
      NVIT Asset
 		 
    Allocation Fund  
       
Assets:
         
Investments in Master Fund (cost $1,671,506,143)
    $ 1,508,523,482  
Cash
      2,000  
Receivable for capital shares issued
      3,775,225  
           
Total Assets
      1,512,300,707  
           
Liabilities:
         
Payable for investments purchased
      3,766,502  
Payable for capital shares redeemed
      8,723  
Accrued expenses and other payables:
         
Fund administration fees
      32,044  
Master feeder service provider fee
      125,044  
Distribution fees
      312,611  
Administrative servicing fees
      169,161  
Accounting and transfer agent fees
      6,855  
Custodian fees
      5,104  
Compliance program costs (Note 3)
      7,425  
Professional fees
      31,997  
Printing fees
      21,339  
Other
      19,448  
           
Total Liabilities
      4,506,253  
           
Net Assets
    $ 1,507,794,454  
           
Represented by:
         
Capital
    $ 1,671,191,868  
Accumulated undistributed net investment income
      1,619,810  
Accumulated net realized losses from investment transactions
      (2,034,563 )
Net unrealized appreciation/(depreciation) from investments
      (162,982,661 )
           
Net Assets
    $ 1,507,794,454  
           
Net Assets:
         
Class II Shares
    $ 1,507,794,454  
           
Total
    $ 1,507,794,454  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      103,072,873  
           
Total
      103,072,873  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 14.63  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
      NVIT Asset
 
    Allocation Fund  
       
INVESTMENT INCOME:
         
Dividend income from Master Fund
    $ 6,357,539  
           
Total Income
      6,357,539  
           
EXPENSES:
         
Fund administration fees
      234,872  
Master feeder service provider fees
      1,800,212  
Distribution fees Class II Shares
      1,800,212  
Administrative servicing fees Class II Shares
      1,800,212  
Professional fees
      63,557  
Printing fees
      17,859  
Trustee fees
      25,623  
Custodian fees
      24,760  
Accounting and transfer agent fees
      9,168  
Compliance program costs (Note 3)
      3,078  
Other
      30,981  
           
Total expenses before earnings credit and waived expenses
      5,810,534  
Expenses waived for Master feeder service provider fees (Note 3)
      (1,080,132 )
Earnings credit (Note 4)
      (6 )
           
Net Expenses
      4,730,396  
           
NET INVESTMENT INCOME
      1,627,143  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (571,100 )
Net change in unrealized appreciation/(depreciation) from investments
      (87,430,356 )
           
Net realized/unrealized losses from investments
      (88,001,456 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (86,374,313 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statements of Changes in Net Assets
 
                     
      American Funds NVIT
 		 
      Asset Allocation Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,627,143       $ 22,275,849  
Net realized losses from investment transactions
      (571,100 )       (964,205 )
Net change in unrealized appreciation/(depreciation) from investments
      (87,430,356 )       196,499,067  
                     
Change in net assets resulting from operations
      (86,374,313 )       217,810,711  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (21,498,179 )       (784,970 )
Net realized gains:
                   
Class II
      –         (25,134,986 )
                     
Change in net assets from shareholder distributions
      (21,498,179 )       (25,919,956 )
                     
Change in net assets from capital transactions
      296,754,957         474,335,423  
                     
Change in net assets
      188,882,465         666,226,178  
                     
                     
Net Assets:
                   
Beginning of period
      1,318,911,989         652,685,811  
                     
End of period
    $ 1,507,794,454       $ 1,318,911,989  
                     
Accumulated undistributed net investment income at end of period
    $ 1,619,810       $ 21,490,846  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 288,018,164       $ 463,892,503  
Dividends reinvested
      21,498,179         25,919,956  
Cost of shares redeemed
      (12,761,386 )       (15,477,036 )
                     
Total Class II
      296,754,957         474,335,423  
                     
Change in net assets from capital transactions
    $ 296,754,957       $ 474,335,423  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      18,427,224         33,298,792  
Reinvested
      1,350,545         1,739,599  
Redeemed
      (810,969 )       (1,101,777 )
                     
Total Class II Shares
      18,966,800         33,936,614  
                     
Total change in shares
      18,966,800         33,936,614  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
American Funds NVIT Asset Allocation Fund
 
                                                                                                                                               
    Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning of
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    Period     Income (a)     Investments     Operations     Income     Gains     Distributions     of Period     Return (b)     Period     Net Assets (c) (d)     Net Assets (c)     Net Assets (c) (d) (e)     Turnover (f)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (g)
  $ 15 .68       0 .02       (0 .84)       (0 .82)       (0 .23)       –          (0 .23)     $ 14 .63       (5 .33%)     $ 1,507,794,454         0 .66%       0 .23%       0 .81%       23 .00%    
Year Ended December 31, 2009 (g)
  $ 13 .01       0 .34       2 .69       3 .03       (0 .01)       (0 .35)       (0 .36)     $ 15 .68       23 .41%     $ 1,318,911,989         0 .68%       2 .39%       0 .83%       41 .00%    
Year Ended December 31, 2008
  $ 19 .35       0 .35       (6 .08)       (5 .73)       (0 .41)       (0 .20)       (0 .61)     $ 13 .01       (29 .77%)     $ 652,685,811         0 .70%       2 .81%       0 .85%       36 .00%    
Year Ended December 31, 2007
  $ 18 .58       0 .36       0 .78       1 .14       (0 .36)       (0 .01)       (0 .37)     $ 19 .35       6 .14%     $ 525,245,924         0 .63%       2 .88%       0 .78%       29 .00%    
Period Ended December 31, 2006 (h)
  $ 17 .92       0 .36       0 .66       1 .02       (0 .36)       –          (0 .36)     $ 18 .58       5 .69%     $ 162,748,733         0 .69%       6 .18%       0 .86%       38 .00%    
                                                                                                                                               
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Master Fund.
(b)  Not annualized for periods less than one year.
(c)  Annualized for periods less than one year.
(d)  Expenses do not include expenses from the Master Fund.
(e)  During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(f)  Portfolio turnover is calculated on the basis of the Master Fund in which the Fund invests all of its investable assets.
(g)  Per share calculations were performed using average shares method.
(h)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the American Funds NVIT Asset Allocation Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company hold shares of the Fund.
 
The Fund operates as a “feeder fund” which means that the Fund does not buy individual securities directly. Instead, the Fund invests all of its assets in another mutual fund, the American Asset Allocation Fund (the “Master Fund”), a series of the American Funds Insurance Series®, (“American Funds”), which invests directly in individual securities. The Fund, therefore, has the same investment objective and limitations as the Master Fund in which the Fund invests. The financial statements of the Master Fund’s portfolio, including the Statement of Investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s portfolio owned by the Fund at June 30, 2010 was 16.37%.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
The net asset value (“NAV”) per share of a class of the Fund is calculated by taking the market value of the shares of the Master Fund and other assets owned by the Fund that are allocated to the class, subtracting the Fund’s liabilities attributable to that class, and dividing by the number of shares of that class that are outstanding. The Fund’s NAV is determined at the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) (“Close of Trading”) on each day the Exchange is open for trading (“Business Day”).
 
The Master Fund calculates its NAV at the Close of Trading on each Business Day. Assets held by the Master Fund are valued primarily on the basis of market quotations. The Master Fund, however, has adopted procedures for making “fair value” determinations if market quotations are not readily available. For example, if events occur between the close of markets outside the United States and the Close of Trading that, in the opinion of Capital Research and Management Company (“Capital Research”), the Master Fund’s investment adviser, materially affect the value of the portfolio securities of the Master Fund, the securities will be valued in accordance with the Master Fund’s fair value procedures. Use of these procedures is intended to result in more appropriate NAVs. In addition, such use is intended to reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors in the Master Fund.
 
 
 
8 Semiannual Report 2010

 

 
 
Please refer to the Master Fund Semi-Annual Report that is included along with this report for the Master Fund’s Security Valuation Policies.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Investment in Master Fund
  $ 1,508,523,482     $ —     $ —     $ 1,508,523,482      
 
 
Total
  $ 1,508,523,482     $ —     $ —     $ 1,508,523,482      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary.
 
Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 9

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Master Fund’s Investment Advisory Agreement, Capital Research manages the investment of the assets and supervises the daily business affairs of the Master Fund. Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of Nationwide Financial Services (“NFS”)), provides non-investment advisory master-feeder operational support services to the Fund. Under the terms of the Trust’s Master-Feeder Services Agreement with NFM on behalf of the Fund, the Fund pays NFM a fee of 0.25% based on the Fund’s average daily net assets. NFM has entered into a contractual agreement with the Trust under which NFM will waive 0.15% of the fees NFM receives for providing the Fund with non-investment advisory master-feeder operational support services until May 1, 2011.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
10 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced Fund, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Fund were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $1,800,212 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $3,078.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD” or Distributor), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
subsidiary of NFSDI. These fees are based on average daily net assets of Class II shares of the Fund at an annual rate not to exceed 0.25%.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
6. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 1,673,540,706     $ —     $ (165,017,224 )   $ (165,017,224 )    
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
7. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
12 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 13

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
14 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 15

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
16 Semiannual Report 2010

 

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American Funds NVIT Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
4
   
Statement of Assets and Liabilities
       
5
   
Statement of Operations
       
6
   
Statements of Changes in Net Assets
       
7
   
Financial Highlights
       
8
   
Notes to Financial Statements
       
13
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-AM-BD (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder American Funds NVIT Bond Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
American Funds NVIT Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       1,043.60       3.34       0.66  
      Hypothetical c     1,000.00       1,021.52       3.31       0.66  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
    NVIT Bond Fund  
       
Assets:
         
Investments in Master Fund (cost $686,190,755)
    $ 701,019,997  
Cash
      2,000  
Receivable for capital shares issued
      2,535,153  
Prepaid expenses and other assets
      6,975  
           
Total Assets
      703,564,125  
           
Liabilities:
         
Payable for investments purchased
      2,534,592  
Payable for capital shares redeemed
      561  
Accrued expenses and other payables:
         
Fund administration fees
      16,192  
Master feeder service provider fee
      56,166  
Distribution fees
      140,417  
Administrative servicing fees
      93,399  
Accounting and transfer agent fees
      3,432  
Custodian fees
      2,514  
Compliance program costs (Note 3)
      2,948  
Professional fees
      17,757  
Printing fees
      18,434  
Other
      12,806  
           
Total Liabilities
      2,899,218  
           
Net Assets
    $ 700,664,907  
           
Represented by:
         
Capital
    $ 694,295,082  
Accumulated undistributed net investment income
      1,909,575  
Accumulated net realized losses from investment transactions
      (10,368,992 )
Net unrealized appreciation/(depreciation) from investments
      14,829,242  
           
Net Assets
    $ 700,664,907  
           
Net Assets:
         
Class II Shares
    $ 700,664,907  
           
Total
    $ 700,664,907  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      64,318,919  
           
Total
      64,318,919  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 10.89  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
    NVIT Bond Fund  
       
INVESTMENT INCOME:
         
Dividend income from Master Fund
    $ 3,968,962  
           
Total Income
      3,968,962  
           
EXPENSES:
         
Fund administration fees
      104,466  
Master feeder service provider fees
      775,592  
Distribution fees Class II Shares
      775,592  
Administrative servicing fees Class II Shares
      775,592  
Professional fees
      29,878  
Printing fees
      16,353  
Trustee fees
      10,837  
Custodian fees
      10,811  
Accounting and transfer agent fees
      4,234  
Compliance program costs (Note 3)
      1,153  
Other
      14,286  
           
Total expenses before earnings credit and waived expenses
      2,518,794  
Expenses waived for Master feeder service provider fees (Note 3)
      (465,357 )
Earnings credit (Note 4)
      (6 )
           
Net Expenses
      2,053,431  
           
NET INVESTMENT INCOME
      1,915,531  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (31,519 )
Net change in unrealized appreciation/(depreciation) from investments
      25,469,806  
           
Net realized/unrealized gains from investments
      25,438,287  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 27,353,818  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statements of Changes in Net Assets
 
                     
      American Funds NVIT Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,915,531       $ 13,949,810  
Net realized losses from investment transactions
      (31,519 )       (8,682,191 )
Net change in unrealized appreciation from investments
      25,469,806         43,599,080  
                     
Change in net assets resulting from operations
      27,353,818         48,866,699  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (12,424,501 )       (1,531,235 )
Net realized gains:
                   
Class II
      –         (146,336 )
                     
Change in net assets from shareholder distributions
      (12,424,501 )       (1,677,571 )
                     
Change in net assets from capital transactions
      123,709,290         169,953,778  
                     
Change in net assets
      138,638,607         217,142,906  
                     
                     
Net Assets:
                   
Beginning of period
      562,026,300         344,883,394  
                     
End of period
    $ 700,664,907       $ 562,026,300  
                     
Accumulated undistributed net investment income at end of period
    $ 1,909,575       $ 12,418,545  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 117,005,326       $ 221,778,168  
Dividends reinvested
      12,424,501         1,677,571  
Cost of shares redeemed
      (5,720,537 )       (53,501,961 )
                     
Total Class II
      123,709,290         169,953,778  
                     
Change in net assets from capital transactions
    $ 123,709,290       $ 169,953,778  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      10,899,237         21,932,993  
Reinvested
      1,163,262         160,073  
Redeemed
      (531,447 )       (5,478,945 )
                     
Total Class II Shares
      11,531,052         16,614,121  
                     
Total change in shares
      11,531,052         16,614,121  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
American Funds NVIT Bond Fund
 
 
                                                                                                                                                         
          Operations     Distributions                 Ratios/Supplemental Data
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income (a)     Investments     Operations     Income     Gains     Capital     Distributions     of Period     Return (b)     Period     Net Assets (c) (d)     Net Assets (c)     Net Assets (c) (d) (e)     Turnover (f)    
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (g)
  $ 10 .65       0 .03       0 .43       0 .46       (0 .22)       –          –          (0 .22)     $ 10 .89       4 .36%     $ 700,664,907         0 .66%       0 .62%       0 .81%       75 .00%    
Year Ended December 31, 2009 (g)
  $ 9 .53       0 .33       0 .82       1 .15       (0 .03)       –          –          (0 .03)     $ 10 .65       12 .15%     $ 562,026,300         0 .68%       3 .22%       0 .83%       125 .00%    
Year Ended December 31, 2008
  $ 11 .22       0 .55       (1 .66)       (1 .11)       (0 .57)       (0 .01)       –          (0 .58)     $ 9 .53       (9 .87%)     $ 344,883,394         0 .71%       6 .79%       0 .86%       63 .00%    
Year Ended December 31, 2007
  $ 11 .72       0 .84       (0 .50)       0 .34       (0 .84)       –          –          (0 .84)     $ 11 .22       2 .98%     $ 176,954,744         0 .63%       10 .21%       0 .78%       57 .00%    
Period Ended December 31, 2006 (h)
  $ 11 .45       0 .38       0 .21       0 .59       (0 .14)       –          (0 .18)       (0 .32)     $ 11 .72       5 .30%     $ 33,672,512         0 .79%       0 .47%       0 .97%       57 .00%    
                                                                                                                                                         
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Master Fund.
(b)  Not annualized for periods less than one year.
(c)  Annualized for periods less than one year.
(d)  Expenses do not include expenses from the Master Fund.
(e)  During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(f)  Portfolio turnover is calculated on the basis of the Master Fund in which the Fund invests all of its investable assets.
(g)  Per share calculations were performed using average shares method.
(h)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the American Funds NVIT Bond Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund operates as a “feeder fund” which means that the Fund does not buy individual securities directly. Instead, the Fund invests all of its assets in another mutual fund, the American Bond Fund (the “Master Fund”), a series of the American Funds Insurance Series®, (“American Funds”), which invests directly in individual securities. The Fund, therefore, has the same investment objective and limitations as the Master Fund in which the Fund invests. The financial statements of the Master Fund’s portfolio, including the Statement of Investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s portfolio owned by the Fund at June 30, 2010 was 7.57%.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
The net asset value (“NAV”) per share of a class of the Fund is calculated by taking the market value of the shares of the Master Fund and other assets owned by the Fund that are allocated to the class, subtracting the Fund’s liabilities attributable to that class, and dividing by the number of shares of that class that are outstanding. The Fund’s NAV is determined at the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) (“Close of Trading”) on each day the Exchange is open for trading (“Business Day”).
 
The Master Fund calculates its NAV at the Close of Trading on each Business Day. Assets held by the Master Fund are valued primarily on the basis of market quotations. The Master Fund, however, has adopted procedures for making “fair value” determinations if market quotations are not readily available. For example, if events occur between the close of markets outside the United States and the Close of Trading that, in the opinion of Capital Research and Management Company (“Capital Research”), the Master Fund’s investment adviser, materially affect the value of the portfolio securities of the Master Fund, the securities will be valued in accordance with the Master Fund’s fair value procedures. Use of these procedures is intended to result in more appropriate NAVs. In addition, such use is intended to reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors in the Master Fund.
 
Please refer to the Master Fund Semi-Annual Report that is included along with this report for the Master Fund’s Security Valuation Policies.
 
 
 
8 Semiannual Report 2010

 

 
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value investments are not intended to indicate the risk associated with investing in those investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Investment in Master Fund
  $ 701,019,997     $ —     $ —     $ 701,019,997      
 
 
Total
  $ 701,019,997     $ —     $ —     $ 701,019,997      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary.
 
Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 9

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Master Fund’s Investment Advisory Agreement, Capital Research manages the investment of the assets and supervises the daily business affairs of the Master Fund. Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of Nationwide Financial Services (“NFS”)), provides non-investment advisory master-feeder operational support services to the Fund. Under the terms of the Trust’s Master-Feeder Services Agreement with NFM on behalf of the Fund, the Fund pays NFM a fee of 0.25% based on the Fund’s average daily net assets. NFM has entered into a contractual agreement with the Trust under which NFM will waive 0.15% of the fees NFM receives for providing the Fund with non-investment advisory master-feeder operational support services until May 1, 2011.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
10 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $775,592 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,153.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD” or Distributor), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
subsidiary of NFSDI. These fees are based on average daily net assets of Class II shares of the Fund at an annual rate not to exceed 0.25%.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
6. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 686,190,755     $ 14,829,242     $ —     $ 14,829,242      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
7. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
12 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 13

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
14 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 15

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
16 Semiannual Report 2010

 

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American Funds NVIT Global Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
4
   
Statement of Assets and Liabilities
       
5
   
Statement of Operations
       
6
   
Statements of Changes in Net Assets
       
7
   
Financial Highlights
       
8
   
Notes to Financial Statements
       
13
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-AM-GG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder American Funds NVIT Global Growth Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
American Funds NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Global Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       894.80       3.24       0.69  
      Hypothetical c     1,000.00       1,021.37       3.46       0.69  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
      NVIT Global Growth
 		 
      Fund  
       
Assets:
         
Investments in Master Fund (cost $146,100,855)
    $ 119,438,467  
Cash
      2,000  
Receivable for investments sold
      85,528  
Receivable for capital shares issued
      7,657  
Prepaid expenses and other assets
      1,307  
           
Total Assets
      119,534,959  
           
Liabilities:
         
Payable for capital shares redeemed
      93,185  
Accrued expenses and other payables:
         
Fund administration fees
      5,624  
Master feeder service provider fee
      10,188  
Distribution fees
      25,470  
Administrative servicing fees
      26,741  
Accounting and transfer agent fees
      1,368  
Trustee fees
      60  
Custodian fees
      630  
Compliance program costs (Note 3)
      695  
Professional fees
      7,030  
Printing fees
      13,000  
Other
      721  
           
Total Liabilities
      184,712  
           
Net Assets
    $ 119,350,247  
           
Represented by:
         
Capital
    $ 153,018,998  
Accumulated undistributed net investment income
      124,330  
Accumulated net realized losses from investment transactions
      (7,130,693 )
Net unrealized appreciation/(depreciation) from investments
      (26,662,388 )
           
Net Assets
    $ 119,350,247  
           
Net Assets:
         
Class II Shares
    $ 119,350,247  
           
Total
    $ 119,350,247  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      6,799,242  
           
Total
      6,799,242  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 17.55  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
      NVIT Global Growth
 		 
      Fund  
       
INVESTMENT INCOME:
         
Dividend income from Master Fund
    $ 565,247  
           
Total Income
      565,247  
           
EXPENSES:
         
Fund administration fees
      27,140  
Master feeder service provider fees
      160,043  
Distribution fees Class II Shares
      160,043  
Administrative servicing fees Class II Shares
      160,043  
Professional fees
      9,540  
Printing fees
      9,735  
Trustee fees
      2,295  
Custodian fees
      2,430  
Accounting and transfer agent fees
      1,270  
Compliance program costs (Note 3)
      236  
Other
      3,600  
           
Total expenses before earnings credit and waived expenses
      536,375  
Expenses waived for Master feeder service provider fees (Note 3)
      (96,026 )
Earnings credit (Note 4)
      (6 )
           
Net Expenses
      440,343  
           
NET INVESTMENT INCOME
      124,904  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (1,060,473 )
Net change in unrealized appreciation/(depreciation) from investments
      (13,202,638 )
           
Net realized/unrealized losses from investments
      (14,263,111 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (14,138,207 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statements of Changes in Net Assets
 
                     
      American Funds NVIT Global Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 124,904       $ 1,045,284  
Net realized losses from investment transactions
      (1,060,473 )       (4,354,540 )
Net change in unrealized appreciation/(depreciation) from investments
      (13,202,638 )       38,038,810  
                     
Change in net assets resulting from operations
      (14,138,207 )       34,729,554  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (1,045,853 )       –  
Net realized gains:
                   
Class II
      –         (7,698,751 )
                     
Change in net assets from shareholder distributions
      (1,045,853 )       (7,698,751 )
                     
Change in net assets from capital transactions
      4,702,872         23,506,855  
                     
Change in net assets
      (10,481,188 )       50,537,658  
                     
                     
Net Assets:
                   
Beginning of period
      129,831,435         79,293,777  
                     
End of period
    $ 119,350,247       $ 129,831,435  
                     
Accumulated undistributed net investment income at end of period
    $ 124,330       $ 1,045,279  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 12,144,258       $ 31,641,762  
Dividends reinvested
      1,045,853         7,698,751  
Cost of shares redeemed
      (8,487,239 )       (15,833,658 )
                     
Total Class II
      4,702,872         23,506,855  
                     
Change in net assets from capital transactions
    $ 4,702,872       $ 23,506,855  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      622,458         1,815,345  
Reinvested
      53,335         408,639  
Redeemed
      (442,409 )       (964,150 )
                     
Total Class II Shares
      233,384         1,259,834  
                     
Total change in shares
      233,384         1,259,834  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
American Funds NVIT Global Growth Fund
 
                                                                                                                                                         
          Operations     Distributions                 Ratios / Supplemental Data          
     
                Net Realized
 		                                                          Ratio of Net
 		    Ratio of
 		         
                and
 		                                                          Investment
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Income
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    (Loss)
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Return
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income (a)     Investments     Operations     Income     Gains     of Capital     Distributions     of Period     Return (b)     Period     Net Assets (c) (d)     Net Assets (c)     Net Assets (c) (d) (e)     Turnover (f)    
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (g)
  $ 19 .77       0 .02       (2 .08)       (2 .06)       (0 .16)       –          –          (0 .16)     $ 17 .55       (10 .52%)     $ 119,350,247         0 .69%       0 .20%       0 .84%       14 .00%    
Year Ended December 31, 2009 (g)
  $ 14 .94       0 .18       5 .97       6 .15       –          (1 .32)       –          (1 .32)     $ 19 .77       41 .60%     $ 129,831,435         0 .71%       1 .06%       0 .86%       43 .00%    
Year Ended December 31, 2008
  $ 26 .08       0 .31       (10 .18)       (9 .87)       (0 .57)       (0 .70)       –          (1 .27)     $ 14 .94       (38 .64%)     $ 79,293,777         0 .68%       1 .51%       0 .86%       38 .00%    
Year Ended December 31, 2007
  $ 23 .35       0 .61       2 .73       3 .34       (0 .61)       –          –          (0 .61)     $ 26 .08       14 .36%     $ 109,553,081         0 .67%       2 .92%       0 .82%       38 .00%    
Period Ended December 31, 2006 (h)
  $ 21 .69       0 .10       1 .72       1 .82       –          –          (0 .16)       (0 .16)     $ 23 .35       8 .52%     $ 45,991,828         0 .91%       (0 .63%)       1 .16%       31 .00%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Master Fund.
(b)  Not annualized for periods less than one year.
(c)  Annualized for periods less than one year.
(d)  Expenses do not include expenses from the Master Fund.
(e)  During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(f)  Portfolio turnover is calculated on the basis of the Master Fund in which the Fund invests all of its investable assets.
(g)  Per share calculations were performed using average shares method.
(h)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the American Funds NVIT Global Growth Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund operates as a “feeder fund” which means that the Fund does not buy individual securities directly. Instead, the Fund invests all of its assets in another mutual fund, the American Global Growth Fund (the “Master Fund”), a series of the American Funds Insurance Series®, (“American Funds”), which invests directly in individual securities. The Fund, therefore, has the same investment objective and limitations as the Master Fund in which the Fund invests. The financial statements of the Master Fund’s portfolio, including the Statement of Investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s portfolio owned by the Fund at June 30, 2010 was 2.61%.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
The net asset value (“NAV”) per share of a class of the Fund is calculated by taking the market value of the shares of the Master Fund and other assets owned by the Fund that are allocated to the class, subtracting the Fund’s liabilities attributable to that class, and dividing by the number of shares of that class that are outstanding. The Fund’s NAV is determined at the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) (“Close of Trading”) on each day the Exchange is open for trading (“Business Day”).
 
The Master Fund calculates its NAV at the Close of Trading on each Business Day. Assets held by the Master Fund are valued primarily on the basis of market quotations. The Master Fund, however, has adopted procedures for making “fair value” determinations if market quotations are not readily available. For example, if events occur between the close of markets outside the United States and the Close of Trading that, in the opinion of Capital Research and Management Company (“Capital Research”), the Master Fund’s investment adviser, materially affect the value of the portfolio securities of the Master Fund, the securities will be valued in accordance with the Master Fund’s fair value procedures. Use of these procedures is intended to result in more appropriate NAVs. In addition, such use is intended to reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors in the Master Fund.
 
Please refer to the Master Fund Semi-Annual Report that is included along with this report for the Master Fund’s Security Valuation Policies.
 
 
 
8 Semiannual Report 2010

 

 
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value investments are not intended to indicate the risk associated with investing in those investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Investment in Master Fund
  $ 119,438,467     $ —     $ —     $ 119,438,467      
 
 
Total
  $ 119,438,467     $ —     $ —     $ 119,438,467      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S.
 
 
 
2010 Semiannual Report 9

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Master Fund’s Investment Advisory Agreement, Capital Research manages the investment of the assets and supervises the daily business affairs of the Master Fund. Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of Nationwide Financial Services (“NFS”)), provides non-investment advisory master-feeder operational support services to the Fund. Under the terms of the Trust’s Master-Feeder Services Agreement with NFM on behalf of the Fund, the Fund pays NFM a fee of 0.25% based on the Fund’s average daily net assets. NFM has entered into a contractual agreement with the Trust under which NFM will waive 0.15% of the fees NFM receives for providing the Fund with non-investment advisory master-feeder operational support services until May 1, 2011.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
10 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, and NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $160,043 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $236.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD” or Distributor), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
subsidiary of NFSDI. These fees are based on average daily net assets of Class II shares of the Fund at an annual rate not to exceed 0.25%.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
6. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 153,229,013     $ —     $ (33,790,546 )   $ (33,790,546 )    
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
7. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
12 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 13

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
14 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 15

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
16 Semiannual Report 2010

 

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American Funds NVIT Growth Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
4
   
Statement of Assets and Liabilities
       
5
   
Statement of Operations
       
6
   
Statements of Changes in Net Assets
       
7
   
Financial Highlights
       
8
   
Notes to Financial Statements
       
13
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-AM-GR (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder American Funds NVIT Growth Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
American Funds NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Growth Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       943.30       3.28       0.68  
      Hypothetical c     1,000.00       1,021.42       3.41       0.68  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
      NVIT
 		 
      Growth Fund  
       
Assets:
         
Investments in Master Fund (cost $247,410,861)
    $ 193,350,823  
Cash
      2,000  
Receivable for investments sold
      69,512  
Receivable for capital shares issued
      94,450  
           
Total Assets
      193,516,785  
           
Liabilities:
         
Payable for capital shares redeemed
      163,962  
Accrued expenses and other payables:
         
Fund administration fees
      7,108  
Master feeder service provider fee
      16,637  
Distribution fees
      41,592  
Administrative servicing fees
      46,494  
Accounting and transfer agent fees
      1,678  
Custodian fees
      1,570  
Compliance program costs (Note 3)
      1,095  
Professional fees
      8,562  
Printing fees
      16,023  
Other
      81  
           
Total Liabilities
      304,802  
           
Net Assets
    $ 193,211,983  
           
Represented by:
         
Capital
    $ 271,806,493  
Accumulated net investment loss
      (229,052 )
Accumulated net realized losses from investment transactions
      (24,305,420 )
Net unrealized appreciation/(depreciation) from investments
      (54,060,038 )
           
Net Assets
    $ 193,211,983  
           
Net Assets:
         
Class II Shares
    $ 193,211,983  
           
Total
    $ 193,211,983  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      4,459,244  
           
Total
      4,459,244  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 43.33  
 
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      American Funds
 		 
      NVIT
 		 
    Growth Fund  
       
INVESTMENT INCOME:
         
Dividend income from Master Fund
    $ 462,568  
           
Total Income
      462,568  
           
EXPENSES:
         
Fund administration fees
      39,003  
Master feeder service provider fees
      253,605  
Distribution fees Class II Shares
      253,605  
Administrative servicing fees Class II Shares
      253,605  
Professional fees
      12,658  
Printing fees
      15,493  
Trustee fees
      3,649  
Custodian fees
      4,685  
Accounting and transfer agent fees
      1,716  
Compliance program costs (Note 3)
      430  
Other
      5,037  
           
Total expenses before earnings credit and waived expenses
      843,486  
Expenses waived for Master feeder service provider fees (Note 3)
      (152,164 )
Earnings credit (Note 4)
      (6 )
           
Net Expenses
      691,316  
           
NET INVESTMENT LOSS
      (228,748 )
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (1,967,007 )
Net change in unrealized appreciation/(depreciation) from investments
      (9,543,296 )
           
Net realized/unrealized losses from investments
      (11,510,303 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (11,739,051 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statements of Changes in Net Assets
 
                     
      American Funds NVIT
 		 
      Growth Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income (loss)
    $ (228,748 )     $ 346,825  
Net realized losses from investment transactions
      (1,967,007 )       (20,276,583 )
Net change in unrealized appreciation/(depreciation) from investments
      (9,543,296 )       69,409,737  
                     
Change in net assets resulting from operations
      (11,739,051 )       49,479,979  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (347,126 )       –  
Net realized gains:
                   
Class II
      –         (17,953,428 )
                     
Change in net assets from shareholder distributions
      (347,126 )       (17,953,428 )
                     
Change in net assets from capital transactions
      6,974,871         32,057,307  
                     
Change in net assets
      (5,111,306 )       63,583,858  
                     
                     
Net Assets:
                   
Beginning of period
      198,323,289         134,739,431  
                     
End of period
    $ 193,211,983       $ 198,323,289  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (229,052 )     $ 346,822  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 15,514,852       $ 41,844,313  
Dividends reinvested
      347,126         17,953,428  
Cost of shares redeemed
      (8,887,107 )       (27,740,434 )
                     
Total Class II
      6,974,871         32,057,307  
                     
Change in net assets from capital transactions
    $ 6,974,871       $ 32,057,307  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      333,256         1,007,018  
Reinvested
      7,424         410,834  
Redeemed
      (191,950 )       (753,590 )
                     
Total Class II Shares
      148,730         664,262  
                     
Total change in shares
      148,730         664,262  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
American Funds NVIT Growth Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                                                                      Ratio of
 		               
                Net Realized
 		                                                    Net
 		    Ratio of
 		         
                and
 		                                                    Investment
 		    Expenses
 		         
                Unrealized
 		                                              Ratio of
 		    Income
 		    (Prior to
 		         
    Net Asset
 		    Net
 		    Gains
 		                                              Expenses
 		    (Loss)
 		    Reimbursements)
 		         
    Value,
 		    Investment
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    to Average
 		    to Average
 		    to Average
 		         
    Beginning
 		    Income
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    Net
 		    Net
 		    Net
 		    Portfolio
 		   
    of Period     (Loss) (a)     Investments     Operations     Income     Gains     Distributions     of Period     Return (b)     of Period     Assets (c)(d)     Assets (c)     Assets (c)(d)(e)     Turnover (f)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (g)
  $ 46 .01       (0 .05)       (2 .55)       (2 .60)       (0 .08)       –          (0 .08)     $ 43 .33       (5 .67%)     $ 193,211,983         0 .68%       (0 .23%)       0 .83%       15 .00%    
Year Ended December 31, 2009 (g)
  $ 36 .95       0 .10       13 .97       14 .07       –          (5 .01)       (5 .01)     $ 46 .01       38 .78%     $ 198,323,289         0 .72%       0 .23%       0 .87%       37 .00%    
Year Ended December 31, 2008
  $ 72 .16       0 .28       (30 .91)       (30 .63)       (1 .14)       (3 .44)       (4 .58)     $ 36 .95       (44 .21%)     $ 134,739,431         0 .70%       0 .53%       0 .88%       26 .00%    
Year Ended December 31, 2007
  $ 64 .82       0 .35       7 .37       7 .72       (0 .36)       (0 .02)       (0 .38)     $ 72 .16       11 .90%     $ 180,998,045         0 .65%       0 .68%       0 .80%       40 .00%    
Period Ended December 31, 2006 (h)
  $ 62 .91       0 .39       1 .92       2 .31       (0 .40)       –          (0 .40)     $ 64 .82       3 .68%     $ 74,804,427         0 .74%       1 .90%       0 .91%       35 .00%    
                                                                                                                                               
Amounts designated as “—” are zero or have been rounded to zero.
(a)  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Master Fund.
(b)  Not annualized for periods less than one year.
(c)  Annualized for periods less than one year.
(d)  Expenses do not include expenses from the Master Fund.
(e)  During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(f)  Portfolio turnover is calculated on the basis of the Master Fund in which the Fund invests all of its investable assets.
(g)  Per share calculations were performed using average shares method.
(h)  For the period from May 1, 2006 (commencement of operations) through December 31, 2006.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the American Funds NVIT Growth Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company hold shares of the Fund.
 
The Fund operates as a “feeder fund” which means that the Fund does not buy individual securities directly. Instead, the Fund invests all of its assets in another mutual fund, the American Growth Fund (the “Master Fund”), a series of the American Funds Insurance Series®, (“American Funds”), which invests directly in individual securities. The Fund, therefore, has the same investment objective and limitations as the Master Fund in which the Fund invests. The financial statements of the Master Fund’s portfolio, including the Statement of Investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s portfolio owned by the Fund at June 30, 2010 was 0.84%.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
The net asset value (“NAV”) per share of a class of the Fund is calculated by taking the market value of the shares of the Master Fund and other assets owned by the Fund that are allocated to the class, subtracting the Fund’s liabilities attributable to that class, and dividing by the number of shares of that class that are outstanding. The Fund’s NAV is determined at the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) (“Close of Trading”) on each day the Exchange is open for trading (“Business Day”).
 
The Master Fund calculates its NAV at the Close of Trading on each Business Day. Assets held by the Master Fund are valued primarily on the basis of market quotations. The Master Fund, however, has adopted procedures for making “fair value” determinations if market quotations are not readily available. For example, if events occur between the close of markets outside the United States and the Close of Trading that, in the opinion of Capital Research and Management Company (“Capital Research”), the Master Fund’s investment adviser, materially affect the value of the portfolio securities of the Master Fund, the securities will be valued in accordance with the Master Fund’s fair value procedures. Use of these procedures is intended to result in more appropriate NAVs. In addition, such use is intended to reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors in the Master Fund.
 
Please refer to the Master Fund Semi-Annual Report that is included along with this report for the Master Fund’s Security Valuation Policies.
 
 
 
8 Semiannual Report 2010

 

 
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value investments are not intended to indicate the risk associated with investing in those investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Investment in Master Fund
  $ 193,350,823     $ —     $ —     $ 193,350,823      
 
 
Total
  $ 193,350,823     $ —     $ —     $ 193,350,823      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary.
 
Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 9

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Master Fund’s Investment Advisory Agreement, Capital Research manages the investment of the assets and supervises the daily business affairs of the Master Fund. Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of Nationwide Financial Services (“NFS”)), provides non-investment advisory master-feeder operational support services to the Fund. Under the terms of the Trust’s Master-Feeder Services Agreement with NFM on behalf of the Fund, the Fund pays NFM a fee of 0.25% based on the Fund’s average daily net assets. NFM has entered into a contractual agreement with the Trust under which NFM will waive 0.15% of the fees NFM receives for providing the Fund with non-investment advisory master-feeder operational support services until May 1, 2011.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
10 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $253,605 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $430.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD” or Distributor), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
subsidiary of NFSDI. These fees are based on average daily net assets of Class II shares of the Fund at an annual rate not to exceed 0.25%.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
6. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 263,533,328     $ —     $ (70,182,505)     $ (70,182,505)      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
7. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
12 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 13

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
14 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 15

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
16 Semiannual Report 2010

 

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American Funds NVIT Growth-Income Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
4
   
Statement of Assets and Liabilities
       
5
   
Statement of Operations
       
6
   
Statements of Changes in Net Assets
       
7
   
Financial Highlights
       
8
   
Notes to Financial Statements
       
13
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-AM-GI (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder American Funds NVIT Growth-Income Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
American Funds NVIT
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Growth-Income Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       907.80       3.17       0.67  
      Hypothetical c     1,000.00       1,021.47       3.36       0.67  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      American Funds NVIT
 		 
      Growth-Income Fund  
       
Assets:
         
Investments in Master Fund (cost $566,185,412)
    $ 527,589,880  
Cash
      1,999  
Receivable for capital shares issued
      2,434,584  
Prepaid expenses and other assets
      5,436  
           
Total Assets
      530,031,899  
           
Liabilities:
         
Payable for investments purchased
      2,433,465  
Payable for capital shares redeemed
      1,119  
Accrued expenses and other payables:
         
Fund administration fees
      13,564  
Master feeder service provider fee
      44,689  
Distribution fees
      111,722  
Administrative servicing fees
      105,018  
Accounting and transfer agent fees
      3,107  
Custodian fees
      2,239  
Compliance program costs (Note 3)
      2,872  
Professional fees
      15,063  
Printing fees
      6,378  
Other
      11,428  
           
Total Liabilities
      2,750,664  
           
Net Assets
    $ 527,281,235  
           
Represented by:
         
Capital
    $ 584,991,626  
Accumulated net investment loss
      (28,032 )
Accumulated net realized losses from investment transactions
      (19,086,827 )
Net unrealized appreciation/(depreciation) from investments
      (38,595,532 )
           
Net Assets
    $ 527,281,235  
           
Net Assets:
         
Class II Shares
    $ 527,281,235  
           
Total
    $ 527,281,235  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      17,485,122  
           
Total
      17,485,122  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 30.16  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      American Funds NVIT
 		 
      Growth-Income Fund  
       
INVESTMENT INCOME:
         
Dividend income from Master Fund
    $ 1,764,114  
           
Total Income
      1,764,114  
           
EXPENSES:
         
Fund administration fees
      92,329  
Master feeder service provider fees
      672,524  
Distribution fees Class II Shares
      672,524  
Administrative servicing fees Class II Shares
      672,524  
Professional fees
      26,754  
Printing fees
      21,652  
Trustee fees
      9,647  
Custodian fees
      9,611  
Accounting and transfer agent fees
      3,773  
Compliance program costs (Note 3)
      1,150  
Other
      12,260  
           
Total expenses before earnings credit and waived expenses
      2,194,748  
Expenses waived for Master feeder service provider fees (Note 3)
      (403,516 )
Earnings credit (Note 4)
      (6 )
           
Net Expenses
      1,791,226  
           
NET INVESTMENT LOSS
      (27,112 )
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (5,031,573 )
Net change in unrealized appreciation/(depreciation) from investments
      (47,533,033 )
           
Net realized/unrealized losses from investments
      (52,564,606 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (52,591,718 )
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statements of Changes in Net Assets
                     
      American Funds NVIT
 
      Growth-Income Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income (loss)
    $ (27,112 )     $ 5,145,473  
Net realized losses from investment transactions
      (5,031,573 )       (13,386,288 )
Net change in unrealized appreciation/(depreciation) from investments
      (47,533,033 )       120,409,970  
                     
Change in net assets resulting from operations
      (52,591,718 )       112,169,155  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (5,146,401 )       –  
Net realized gains:
                   
Class II
      –         (10,254,924 )
                     
Change in net assets from shareholder distributions
      (5,146,401 )       (10,254,924 )
                     
Change in net assets from capital transactions
      75,449,792         171,745,021  
                     
Change in net assets
      17,711,673         273,659,252  
                     
                     
Net Assets:
                   
Beginning of period
      509,569,562         235,910,310  
                     
End of period
    $ 527,281,235       $ 509,569,562  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (28,032 )     $ 5,145,481  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 86,934,284       $ 190,134,334  
Dividends reinvested
      5,146,401         10,254,924  
Cost of shares redeemed
      (16,630,893 )       (28,644,237 )
                     
Total Class II
      75,449,792         171,745,021  
                     
Change in net assets from capital transactions
    $ 75,449,792       $ 171,745,021  
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      2,610,115         6,820,115  
Reinvested
      150,457         324,523  
Redeemed
      (474,144 )       (933,555 )
                     
Total Class II Shares
      2,286,428         6,211,083  
                     
Total change in shares
      2,286,428         6,211,083  
                     
Amounts designated as “–” are zero or have been rounded to zero.
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
American Funds NVIT Growth-Income Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net
 		                                                    Ratio of
 		               
                Realized
 		                                                    Net
 		    Ratio of
 		         
                and
 		                                                    Investment
 		    Expenses
 		         
                Unrealized
 		                                              Ratio of
 		    Income
 		    (Prior to
 		         
    Net Asset
 		          Gains
 		                            Net
 		                Expenses
 		    (Loss)
 		    Reimbursements)
 		         
    Value,
 		    Net
 		    (Losses)
 		    Total
 		    Net
 		    Net
 		          Asset
 		          Net Assets
 		    to Average
 		    to Average
 		    to Average
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    Net
 		    Net
 		    Net
 		    Portfolio
 		   
    of Period     Income (a)     Investments     Operations     Income     Gains     Distributions     of Period     Return (b)     of Period     Assets (c)(d)     Assets (c)     Assets (c)(d)(e)     Turnover (f)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (g)
  $ 33 .53       –          (3 .05)       (3 .05)       (0 .32)       –          (0 .32)     $ 30 .16       (9 .22%)     $ 527,281,235         0 .67%       (0 .01%)       0 .82%       12 .00%    
Year Ended December 31, 2009 (g)
  $ 26 .25       0 .40       7 .61       8 .01       –          (0 .73)       (0 .73)     $ 33 .53       30 .69%     $ 509,569,562         0 .69%       1 .39%       0 .84%       24 .00%    
Year Ended December 31, 2008
  $ 43 .56       0 .59       (17 .14)       (16 .55)       (0 .75)       (0 .01)       (0 .76)     $ 26 .25       (38 .06%)     $ 235,910,310         0 .64%       2 .61%       0 .79%       31 .00%    
Period Ended December 31, 2007 (h)
  $ 44 .86       0 .62       (1 .30)       (0 .68)       (0 .62)       –          (0 .62)     $ 43 .56       (1 .54%)     $ 87,530,963         0 .68%       4 .48%       0 .83%       24 .00%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Recognition of net investment income by the Fund is affected by the timing of the declaration of dividends by the Master Fund.
(b)  Not annualized for periods less than one year.
(c)  Annualized for periods less than one year.
(d)  Expenses do not include expenses from the Master Fund.
(e)  During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(f)  Portfolio turnover is calculated on the basis of the Master Fund in which the Fund invests all of its investable assets.
(g)  Per share calculations were performed using average shares method.
(h)  For the period from April 27, 2007 (commencement of operations) through December 31, 2007.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the American Funds NVIT Growth-Income Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund operates as a “feeder fund” which means that the Fund does not buy individual securities directly. Instead, the Fund invests all of its assets in another mutual fund, the American Growth-Income Fund (the “Master Fund”), a series of the American Funds Insurance Series®, (“American Funds”), which invests directly in individual securities. The Fund, therefore, has the same investment objective and limitations as the Master Fund in which the Fund invests. The financial statements of the Master Fund’s portfolio, including the Statement of Investments, are included elsewhere in this report and should be read with the Fund’s financial statements. The percentage of the Master Fund’s portfolio owned by the Fund at June 30, 2010 was 2.44%.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
The net asset value (“NAV”) per share of a class of the Fund is calculated by taking the market value of the shares of the Master Fund and other assets owned by the Fund that are allocated to the class, subtracting the Fund’s liabilities attributable to that class, and dividing by the number of shares of that class that are outstanding. The Fund’s NAV is determined at the close of regular trading on the New York Stock Exchange (the “Exchange”) (usually 4:00 p.m. Eastern time) (“Close of Trading”) on each day the Exchange is open for trading (“Business Day”).
 
The Master Fund calculates its NAV at the Close of Trading on each Business Day. Assets held by the Master Fund are valued primarily on the basis of market quotations. The Master Fund, however, has adopted procedures for making “fair value” determinations if market quotations are not readily available. For example, if events occur between the close of markets outside the United States and the Close of Trading that, in the opinion of Capital Research and Management Company (“Capital Research”), the Master Fund’s investment adviser, materially affect the value of the portfolio securities of the Master Fund, the securities will be valued in accordance with the Master Fund’s fair value procedures. Use of these procedures is intended to result in more appropriate NAVs. In addition, such use is intended to reduce, if not eliminate, potential arbitrage opportunities otherwise available to short-term investors in the Master Fund.
 
Please refer to the Master Fund Semi-Annual Report that is included along with this report for the Master Fund’s Security Valuation Policies.
 
 
 
8 Semiannual Report 2010

 

 
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value investments are not intended to indicate the risk associated with investing in those investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Investment in Master Fund
  $ 527,589,880     $ —     $ —     $ 527,589,880      
 
 
Total
  $ 527,589,880     $ —     $ —     $ 527,589,880      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary.
 
Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
 
 
2010 Semiannual Report 9

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2007 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2007 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Master Fund’s Investment Advisory Agreement, Capital Research manages the investment of the assets and supervises the daily business affairs of the Master Fund. Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of Nationwide Financial Services (“NFS”)), provides non-investment advisory master-feeder operational support services to the Fund. Under the terms of the Trust’s Master-Feeder Services Agreement with NFM on behalf of the Fund, the Fund pays NFM a fee of 0.25% based on the Fund’s average daily net assets. NFM has entered into a contractual agreement with the Trust under which NFM will waive 0.15% of the fees NFM receives for providing the Fund with non-investment advisory master-feeder operational support services until May 1, 2011.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
10 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $672,524 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,150.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD” or Distributor), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned
 
 
 
2010 Semiannual Report 11

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
subsidiary of NFSDI. These fees are based on average daily net assets of Class II shares of the Fund at an annual rate not to exceed 0.25%.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
6. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 566,185,412     $ —     $ (38,595,532 )   $ (38,595,532 )    
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
7. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
12 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 13

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
14 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 15

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
16 Semiannual Report 2010

 

 
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NVIT Core Plus Bond Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
18
   
Statement of Assets and Liabilities
       
19
   
Statement of Operations
       
20
   
Statements of Changes in Net Assets
       
22
   
Financial Highlights
       
23
   
Notes to Financial Statements
       
30
   
Supplemental Information
       
32
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-CPB (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Core Plus Bond Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Core Plus Bond Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       1,053.30       3.51       0.69  
      Hypothetical b     1,000.00       1,021.37       3.46       0.69  
 
 
Class II Shares
    Actual       1,000.00       1,052.20       4.78       0.94  
      Hypothetical b     1,000.00       1,020.13       4.71       0.94  
 
 
Class Y Shares
    Actual       1,000.00       1,054.10       2.75       0.54  
      Hypothetical b     1,000.00       1,022.12       2.71       0.54  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Core Plus Bond Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Corporate Bonds
    36 .6%
U.S. Government Mortgage Backed Agencies
    32 .5%
U.S. Treasury Bill
    15 .5%
Commercial Mortgage Backed Securities
    10 .3%
U.S. Treasury Notes
    7 .6%
Mutual Fund
    7 .4%
U.S. Treasury Bond
    6 .3%
Sovereign Bonds
    1 .5%
U.S. Government Sponsored & Agency Obligations
    0 .5%
Asset-Backed Securities
    0 .1%
Liabilities in excess of other assets
    (18 .3)%
         
      100 .0%
 
         
Top Industries †    
 
Diversified Financial Services
    3 .7%
Commercial Banks
    3 .1%
Tobacco
    2 .0%
Capital Markets
    2 .0%
Media
    1 .7%
Airlines
    1 .6%
Diversified Telecommunication Services
    1 .5%
Oil, Gas & Consumable Fuels
    1 .4%
Consumer Finance
    1 .4%
Gas Utilities
    1 .4%
Other Industries
    80 .2%
         
      100 .0%
         
Top Holdings †    
 
Fannie Mae TBA, 5.50%, 07/25/40
    13 .7%
U.S. Treasury Bill, 0.21%, 11/18/10
    13 .1%
Invesco Liquid Assets Portfolio — Institutional Class
    6 .3%
U.S. Treasury Inflation Indexed Bonds, 2.38%, 01/15/17
    5 .3%
U.S. Treasury Note, 3.13%, 01/31/17
    3 .0%
Fannie Mae Pool, 5.00%, 07/25/40
    2 .2%
U.S. Treasury Note, 3.63%, 02/15/20
    1 .9%
U.S. Treasury Note, 2.38%, 10/31/14
    1 .4%
Altria Group, Inc., 9.70%, 11/10/18
    0 .9%
Lorillard Tobacco Co., 8.13%, 06/23/19
    0 .8%
Other Holdings
    51 .4%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund
 
                 
                 
Asset-Backed Securities 0.1%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Other 0.1%
GSAMP Trust, Series 2006-HE5, Class A2B, 0.45%, 08/25/36 (a)
  $ 471,719     $ 435,516  
 
 
Student Loans 0.0%†
SLM Student Loan Trust, Series 2008-6, Class A1, 0.72%, 10/27/14 (a)
    48,250       48,299  
                 
         
Total Asset-Backed Securities (cost $437,162)
    483,815  
         
                 
                 
Commercial Mortgage Backed Securities 10.3%
                 
Banc of America Commercial Mortgage, Inc.
               
Series 2006-3, Class A4,
5.89%, 07/10/44 (a)
    850,000       863,386  
Series 2006-4, Class A4,
5.63%, 07/10/46
    1,500,000       1,541,578  
Series 2006-5, Class A4,
5.41%, 09/10/47
    1,795,000       1,878,330  
Series 2007-3, Class A4,
5.84%, 06/10/49 (a)
    295,000       285,064  
Bear Stearns Commercial Mortgage Securities
               
Series 2007-PW15, Class A4,
5.33%, 02/11/44
    1,500,000       1,469,652  
Series 2007-PW17, Class A4,
5.69%, 06/11/50 (a)
    800,000       809,814  
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A4
5.89%, 11/15/44 (a)
    750,000       760,401  
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B
6.22%, 12/10/49 (a)
    1,385,000       1,369,127  
Commercial Mortgage Pass Through Certificates, Series 2006-C8, Class A4
5.31%, 12/10/46
    1,350,000       1,316,906  
Credit Suisse Mortgage Capital Certificates
               
Series 2006-C4, Class A3,
5.47%, 09/15/39
    1,500,000       1,474,160  
Series 2007-C1, Class A3,
5.38%, 02/15/40
    225,000       205,772  
Series 2007-C2, Class A2, 5.45%, 01/15/49 (a)
    350,000       357,864  
Series 2007-C2, Class A3,
5.54%, 01/15/49 (a)
    650,000       620,613  
Series 2007-C4, Class A4,
6.00%, 09/15/39 (a)
    1,210,000       1,149,653  
CS First Boston Mortgage Securities Corp., Series 2005-C4, Class A3
5.12%, 08/15/38 (a)
    200,000       205,206  
CW Capital Cobalt Ltd., Series 2007-C3, Class A4
6.02%, 05/15/46 (a)
    2,500,000       2,442,604  
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4
5.74%, 12/10/49
    1,500,000       1,475,377  
GS Mortgage Securities Corp. II
               
Series 2005-GG4, Class A3,
4.61%, 07/10/39
    1,800,000       1,825,321  
Series 2005-GG4, Class A4,
4.76%, 07/10/39
    800,000       812,550  
Series 2006-GG6, Class A4,
5.55%, 04/10/38 (a)
    1,500,000       1,543,372  
Series 2007-GG10, Class A4,
6.00%, 08/10/45 (a)
    2,200,000       2,162,976  
JPMorgan Chase Commercial Mortgage Securities Corp.
               
Series 2005-LDP4, Class A3A1,
4.87%, 10/15/42
    465,000       470,928  
Series 2006-LDP7, Class A4,
6.06%, 04/15/45 (a)
    970,000       1,033,686  
Series 2006-LDP9, Class A1S,
5.28%, 05/15/47
    134,686       138,301  
Series 2006-LDP9, Class A3,
5.34%, 05/15/47
    1,415,000       1,398,509  
Series 2007-CB18, Class A4,
5.44%, 06/12/47
    3,000,000       2,996,156  
Series 2007-LD11, Class A4,
5.98%, 06/15/49 (a)
    805,000       787,586  
Series 2007-LD12, Class A4,
5.88%, 02/15/51 (a)
    1,750,000       1,755,048  
Series 2008-C2, Class ASB,
6.13%, 02/12/51 (a)
    205,000       215,551  
LB-UBS Commercial Mortgage Trust, Series 2007-C6, Class A4
5.86%, 07/15/40 (a)
    1,635,000       1,621,993  
Merrill Lynch/Countrywide Commercial Mortgage Trust
               
Series 2006-4, Class A3,
5.17%, 12/12/49 (a)
    400,000       394,938  
Series 2007-5, Class A4,
5.38%, 08/12/48
    1,800,000       1,658,885  
Series 2007-7, Class A4,
5.81%, 06/12/50 (a)
    2,000,000       1,955,852  
Series 2007-8, Class A3,
6.15%, 08/12/49 (a)
    250,000       254,502  
Morgan Stanley Capital I
               
Series 2007-HQ12, Class A4,
5.81%, 04/12/49 (a)
    335,000       333,542  
Series 2007-IQ16, Class A4,
5.81%, 12/12/49
    1,250,000       1,294,389  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund (Continued)
 
                 
Commercial Mortgage Backed Securities (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Wachovia Bank Commercial Mortgage Trust
               
Series 2005-C19, Class A5,
4.66%, 05/15/44
  $ 500,000     $ 514,522  
Series 2006-C23, Class A4,
5.42%, 01/15/45 (a)
    290,000       302,394  
Series 2006-C29, Class A3,
5.31%, 11/15/48
    260,000       271,121  
Series 2007-C31, Class A4,
5.51%, 04/15/47
    100,000       93,680  
Series 2007-C33, Class A2,
6.05%, 02/15/51 (a)
    250,000       261,073  
                 
         
Total Commercial Mortgage Backed Securities (cost $35,748,292)
    42,322,382  
         
                 
                 
Corporate Bonds 36.6%
                 
                 
Aerospace & Defense 0.1%
BE Aerospace, Inc., 8.50%, 07/01/18
    195,000       204,750  
                 
 
 
Airlines 1.8%
Continental Airlines, Inc.,
Series A,
7.25%, 11/10/19
    1,165,000       1,240,725  
Continental Airlines, Inc.,
Series 071A, 5.98%, 04/19/22
    1,257,332       1,233,442  
Delta Air Lines, Inc.
               
9.50%, 09/15/14 (b)
    210,000       220,500  
6.20%, 07/02/18
    1,215,000       1,227,150  
Delta Air Lines, Inc., Series A,
7.75%, 12/17/19
    2,636,074       2,846,960  
Delta Air Lines, Inc.,
Series 071A, 6.82%, 08/10/22
    463,484       457,690  
UAL Pass Through Trust, Series 2007-1, 6.64%, 07/02/22
    146,771       135,030  
United Air Lines, Inc.,
9.75%, 01/15/17
    190,000       202,825  
                 
              7,564,322  
                 
 
 
Automobiles 0.1%
Ford Motor Co., 9.98%, 02/15/47
    70,000       71,400  
Navistar International Corp., 8.25%, 11/01/21
    210,000       213,150  
                 
              284,550  
                 
 
 
Beverages 1.2%
Anheuser-Busch InBev Worldwide, Inc.
       
2.50%, 03/26/13 (b)
    1,595,000       1,613,909  
5.38%, 01/15/20
    1,425,000       1,535,570  
5.00%, 04/15/20 (b)
    1,585,000       1,657,173  
Constellation Brands, Inc.,
7.25%, 09/01/16
    70,000       70,612  
                 
              4,877,264  
                 
Building Products 0.2%
Masco Corp.,
6.13%, 10/03/16
    45,000       43,540  
Owens Corning,
9.00%, 06/15/19
    155,000       183,269  
Ply Gem Industries, Inc.,
11.75%, 06/15/13
    185,000       193,325  
USG Corp., 9.75%, 08/01/14 (b)
    200,000       208,000  
                 
              628,134  
                 
 
 
Capital Markets 2.3%
Goldman Sachs Group, Inc. (The)
               
3.63%, 08/01/12
    555,000       565,382  
6.00%, 05/01/14
    585,000       628,678  
6.75%, 10/01/37
    905,000       887,210  
Merrill Lynch & Co., Inc.
               
5.45%, 02/05/13
    1,030,000       1,080,509  
6.11%, 01/29/37
    200,000       181,635  
Morgan Stanley
               
6.63%, 04/01/18
    1,715,000       1,797,550  
5.63%, 09/23/19
    3,480,000       3,366,597  
Nomura Holdings, Inc.,
6.70%, 03/04/20
    1,025,000       1,084,393  
                 
              9,591,954  
                 
 
 
Casinos & Gaming 0.0%†
San Pasqual Casino, 8.00%, 09/15/13 (b)
    55,000       52,250  
                 
 
 
Chemicals 1.4%
Ashland, Inc.,
9.13%, 06/01/17
    295,000       323,025  
CF Industries, Inc.
               
6.88%, 05/01/18
    60,000       61,050  
7.13%, 05/01/20
    35,000       35,875  
Dow Chemical Co. (The)
               
5.90%, 02/15/15
    1,915,000       2,092,762  
8.55%, 05/15/19
    2,230,000       2,729,772  
Huntsman International LLC,
5.50%, 06/30/16 (b)
    300,000       262,500  
Momentive Performance Materials, Inc.
               
12.50%, 06/15/14
    155,000       168,950  
11.50%, 12/01/16
    65,000       57,362  
Nalco Co.,
8.25%, 05/15/17
    200,000       207,000  
                 
              5,938,296  
                 
 
 
Commercial Banks 3.7%
Ally Financial, Inc.
               
8.30%, 02/12/15 (b)
    340,000       344,250  
8.00%, 11/01/31
    520,000       479,700  
Bank of America Corp.
               
7.38%, 05/15/14
    2,225,000       2,493,693  
4.50%, 04/01/15
    800,000       808,577  
6.50%, 08/01/16
    1,060,000       1,147,155  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Commercial Banks (continued)
                 
Barclays Bank PLC,
Series 1, 5.00%, 09/22/16
  $ 920,000     $ 943,688  
Deutsche Bank AG/London,
3.88%, 08/18/14
    1,080,000       1,115,631  
Lloyds TSB Bank PLC,
5.80%, 01/13/20(b)
    2,015,000       1,901,949  
Regions Financial Corp.,
5.75%, 06/15/15
    1,240,000       1,232,156  
Royal Bank of Scotland PLC (The),
4.88%, 08/25/14 (b)
    1,180,000       1,183,436  
RSHB Capital SA for OJSC Russian Agricultural Bank,
6.30%, 05/15/17
    315,000       312,638  
Wachovia Corp.,
5.50%, 05/01/13
    1,295,000       1,405,514  
Wells Fargo & Co.,
3.63%, 04/15/15
    1,700,000       1,737,014  
                 
              15,105,401  
                 
 
 
Commercial Services & Supplies 0.4%
Ceridian Corp.,
12.25%, 11/15/15
    315,000       283,500  
ERAC USA Finance Co.,
7.00%, 10/15/37 (b)
    995,000       1,084,251  
Ford Holdings LLC,
9.30%, 03/01/30
    75,000       75,375  
Iron Mountain, Inc.,
8.75%, 07/15/18
    45,000       46,462  
Power Sector Assets & Liabilities Management Corp.,
7.39%, 12/02/24 (b)
    170,000       185,626  
                 
              1,675,214  
                 
 
 
Communications Equipment 0.5%
CC Holdings GS V LLC/Crown Castle GS III Corp.,
7.75%, 05/01/17 (b)
    125,000       132,187  
CCO Holdings LLC/CCO Holdings Capital Corp.,
8.13%, 04/30/20 (b)
    60,000       61,350  
DIRECTV Holdings LLC,
3.55%, 03/15/15
    1,655,000       1,665,981  
                 
              1,859,518  
                 
 
 
Construction & Engineering 0.1%
CSC Holdings LLC
               
8.50%, 06/15/15 (b)
    140,000       145,250  
8.63%, 02/15/19 (b)
    150,000       157,688  
Dycom Investments, Inc.,
8.13%, 10/15/15
    160,000       157,600  
                 
              460,538  
                 
 
 
Consumer Finance 1.6%
American Express Co.,
8.13%, 05/20/19
    375,000       465,598  
American Express Credit Corp.
5.88%, 05/02/13
    1,815,000       1,985,848  
5.13%, 08/25/14
    735,000       790,765  
American General Finance Corp.
               
5.85%, 06/01/13
    275,000       242,000  
6.90%, 12/15/17
    215,000       171,194  
American Honda Finance Corp.,
3.50%, 03/16/15 (b)
    1,795,000       1,830,641  
Ford Motor Credit Co. LLC
8.00%, 12/15/16
    100,000       102,259  
8.13%, 01/15/20
    425,000       433,794  
International Lease Finance Corp.
5.30%, 05/01/12
    120,000       112,800  
5.25%, 01/10/13
    90,000       82,350  
5.88%, 05/01/13
    110,000       101,475  
8.63%, 09/15/15 (b)
    200,000       189,500  
SLM Corp.,
8.00%, 03/25/20
    145,000       127,337  
                 
              6,635,561  
                 
 
 
Containers & Packaging 0.1%
Ball Corp.
               
7.13%, 09/01/16
    175,000       183,094  
6.63%, 03/15/18
    50,000       50,125  
Crown Americas LLC
               
7.75%, 11/15/15
    90,000       93,375  
7.63%, 05/15/17 (b)
    45,000       46,575  
                 
              373,169  
                 
 
 
Diversified Consumer Services 0.0%†
Knowledge Learning Corp.,
7.75%, 02/01/15(b)
    80,000       73,600  
                 
 
 
Diversified Financial Services 4.3%
AngloGold Ashanti Holdings PLC, 5.38%, 04/15/20
    1,190,000       1,208,161  
Arch Western Finance LLC,
6.75%, 07/01/13
    65,000       65,162  
Bank of America Corp.,
5.65%, 05/01/18
    1,065,000       1,091,425  
CIT Group, Inc.
               
7.00%, 05/01/16
    30,154       27,516  
7.00%, 05/01/17
    844,216       759,794  
Citigroup, Inc.
               
6.13%, 11/21/17
    1,400,000       1,462,034  
8.50%, 05/22/19
    1,835,000       2,187,547  
6.88%, 03/05/38
    1,715,000       1,799,146  
ERAC USA Finance LLC,
5.25%, 10/01/20 (b)
    2,130,000       2,152,397  
FireKeepers Development Authority, 13.88%, 05/01/15 (b)
    215,000       248,325  
General Electric Capital Corp.
               
5.90%, 05/13/14
    2,190,000       2,417,357  
5.88%, 01/14/38
    1,375,000       1,348,329  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Diversified Financial Services (continued)
                 
Hutchison Whampoa International Ltd.,
5.75%, 09/11/19
  $ 100,000     $ 106,574  
Icahn Enterprises LP/Icahn Enterprises Finance Corp.,
7.75%, 01/15/16 (b)
    230,000       223,675  
Intergas Finance BV,
6.38%, 05/14/17
    100,000       100,000  
JPMorgan Chase & Co.,
3.40%, 06/24/15
    2,050,000       2,054,651  
JPMorgan Chase Capital XV,
5.88%, 03/15/35
    300,000       273,169  
LBI Escrow Corp.,
8.00%, 11/01/17 (b)
    280,000       288,400  
New Communications Holdings, Inc.
               
7.88%, 04/15/15 (b)
    55,000       55,412  
8.25%, 04/15/17 (b)
    25,000       25,094  
                 
              17,894,168  
                 
 
 
Diversified Telecommunication Services 1.8%
AT&T, Inc.,
4.85%, 02/15/14
    1,295,000       1,418,341  
Clearwire Communications LLC/Clearwire Finance, Inc.,
12.00%, 12/01/15 (b)
    240,000       237,900  
Frontier Communications Corp.
               
6.63%, 03/15/15
    185,000       178,525  
9.00%, 08/15/31
    430,000       398,825  
GCI, Inc.,
8.63%, 11/15/19 (b)
    210,000       209,475  
Integra Telecom Holdings, Inc.,
10.75%, 04/15/16 (b)
    225,000       220,219  
Intelsat Luxembourg SA,
11.50%, 02/04/17
    369,687       368,763  
Intelsat SA,
6.50%, 11/01/13
    20,000       18,850  
Intelsat Subsidiary Holding Co. Ltd.,
8.88%, 01/15/15
    140,000       142,275  
Level 3 Financing, Inc.,
10.00%, 02/01/18 (b)
    250,000       221,250  
PAETEC Holding Corp.,
8.88%, 06/30/17
    175,000       175,000  
Qwest Corp.
               
8.88%, 03/15/12
    730,000       782,925  
8.38%, 05/01/16
    215,000       234,887  
Sprint Capital Corp.,
6.88%, 11/15/28
    295,000       244,850  
Telecom Italia Capital SA,
4.95%, 09/30/14
    935,000       936,876  
Valor Telecommunications Enterprises Finance Corp.,
7.75%, 02/15/15
    20,000       20,400  
Verizon New Jersey, Inc.,
Series A, 5.88%, 01/17/12
    925,000       980,620  
Virgin Media Finance PLC
               
9.13%, 08/15/16
    70,000       72,450  
9.50%, 08/15/16
    220,000       232,375  
Windstream Corp.
               
8.13%, 08/01/13
    70,000       72,362  
8.63%, 08/01/16
    315,000       317,363  
                 
              7,484,531  
                 
 
 
Electric Utilities 0.8%
AES Corp. (The),
8.75%, 05/15/13 (b)
    72,000       73,080  
Duke Energy Corp.,
6.30%, 02/01/14
    240,000       270,122  
Edison Mission Energy
               
7.00%, 05/15/17
    40,000       25,600  
7.63%, 05/15/27
    225,000       127,688  
Energy Future Holdings Corp.
               
10.88%, 11/01/17
    340,000       251,600  
11.25%, 11/01/17
    121,900       79,235  
Exelon Generation Co. LLC,
6.25%, 10/01/39
    560,000       598,189  
FirstEnergy Solutions Corp.,
4.80%, 02/15/15
    545,000       570,284  
Ipalco Enterprises, Inc.,
7.25%, 04/01/16 (b)
    85,000       86,913  
Oncor Electric Delivery Co. LLC,
6.38%, 05/01/12
    1,050,000       1,134,174  
                 
              3,216,885  
                 
 
 
Electronic Equipment, Instruments & Components 0.1%
Flextronics International Ltd.,
6.25%, 11/15/14
    335,000       332,488  
NXP BV,
Series ExCH, 7.88%, 10/15/14
    150,000       137,625  
                 
              470,113  
                 
 
 
Energy Equipment & Services 0.3%
ATP Oil & Gas Corp.,
11.88%, 05/01/15 (b)
    435,000       315,375  
Cimarex Energy Co.,
7.13%, 05/01/17
    280,000       281,400  
KazMunaiGaz Finance Sub BV,
7.00%, 05/05/20
    160,000       160,608  
Pemex Project Funding Master Trust
               
5.75%, 03/01/18
    185,000       193,959  
6.63%, 06/15/38
    250,000       255,066  
                 
              1,206,408  
                 
 
 
Food & Beverage 0.0%†
Constellation Brands, Inc.,
8.38%, 12/15/14
    115,000       122,475  
                 
 
 
Food & Staples Retailing 0.4%
CVS Pass Through Trust,
7.51%, 01/10/32 (b)
    1,018,641       1,159,875  
Ingles Markets, Inc.,
8.88%, 05/15/17
    150,000       152,625  
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Food & Staples Retailing (continued)
                 
Rite Aid Corp.,
9.75%, 06/12/16
  $ 150,000     $ 156,750  
SUPERVALU, Inc.,
8.00%, 05/01/16
    120,000       118,800  
                 
              1,588,050  
                 
 
 
Food Products 1.1%
Grupo Bimbo SAB de CV, 4.88%, 06/30/20 (b)
    2,115,000       2,125,541  
Kraft Foods, Inc.
               
6.13%, 02/01/18
    310,000       351,818  
6.50%, 02/09/40
    1,775,000       1,985,034  
Michael Food, Inc.,
9.75%, 07/15/18 (b)
    75,000       77,063  
                 
              4,539,456  
                 
 
 
Gas Utilities 1.6%
AmeriGas Partners LP,
7.13%, 05/20/16
    75,000       74,625  
Crosstex Energy LP,
8.88%, 02/15/18
    25,000       24,969  
El Paso Corp.,
7.80%, 08/01/31
    220,000       217,429  
Ferrellgas Escrow LLC,
6.75%, 05/01/14
    109,000       106,820  
Ferrellgas Partners LP
               
9.13%, 10/01/17 (b)
    165,000       172,012  
8.63%, 06/15/20
    20,000       20,000  
Inergy LP,
8.25%, 03/01/16
    15,000       15,187  
Kinder Morgan Energy Partners LP,
5.30%, 09/15/20
    1,560,000       1,613,407  
NGPL Pipeco LLC,
6.51%, 12/15/12 (b)
    835,000       831,490  
Plains All American Pipeline LP,
4.25%, 09/01/12
    1,215,000       1,269,380  
Rockies Express Pipeline LLC,
5.63%, 04/15/20 (b)
    2,005,000       1,906,994  
Sabine Pass LNG LP,
7.50%, 11/30/16
    415,000       345,487  
                 
              6,597,800  
                 
 
 
Health Care Providers & Services 0.7%
Biomet, Inc.
               
10.38%, 10/15/17
    65,000       69,875  
11.63%, 10/15/17
    35,000       37,887  
Boston Scientific Corp.,
6.00%, 01/15/20
    130,000       129,068  
DaVita, Inc.,
7.25%, 03/15/15
    110,000       110,000  
Express Scripts, Inc.,
5.25%, 06/15/12
    655,000       699,754  
HCA, Inc.
               
9.25%, 11/15/16
    660,000       699,600  
8.50%, 04/15/19
    205,000       217,300  
Health Management Associates, Inc.,
6.13%, 04/15/16
    150,000       142,125  
National Mentor Holdings, Inc.,
11.25%, 07/01/14
    185,000       184,538  
Omnicare, Inc.,
7.75%, 06/01/20
    130,000       132,600  
Service Corp International,
7.50%, 04/01/27
    150,000       132,750  
Tenet Healthcare Corp.,
8.88%, 07/01/19 (b)
    135,000       143,100  
US Oncology, Inc.,
9.13%, 08/15/17
    195,000       200,362  
                 
              2,898,959  
                 
 
 
Hotels, Restaurants & Leisure 0.9%
Harrah’s Operating Co., Inc.
               
5.63%, 06/01/15
    70,000       46,375  
11.25%, 06/01/17
    215,000       226,288  
International Game Technology, 5.50%, 06/15/20
    2,485,000       2,563,576  
MGM Mirage, Inc.
               
11.13%, 11/15/17
    220,000       242,550  
9.00%, 03/15/20 (b)
    50,000       51,375  
OSI Restaurant Partners, Inc.,
10.00%, 06/15/15
    50,000       48,875  
Peninsula Gaming LLC,
8.38%, 08/15/15
    150,000       149,437  
Pokagon Gaming Authority,
10.38%, 06/15/14 (b)
    180,000       186,300  
Starwood Hotels & Resorts Worldwide, Inc.,
6.75%, 05/15/18
    135,000       135,000  
                 
              3,649,776  
                 
 
 
Household Durables 0.0%†
Meritage Homes Corp.,
7.15%, 04/15/20 (b)
    90,000       80,550  
                 
 
 
Independent Power Producers & Energy Traders 0.4%
Calpine Construction Finance Co. LP,
8.00%, 06/01/16 (b)
    35,000       35,787  
NRG Energy, Inc.,
7.38%, 01/15/17
    155,000       153,450  
PSEG Power LLC,
2.50%, 04/15/13 (b)
    1,260,000       1,272,206  
RRI Energy, Inc.,
7.63%, 06/15/14
    40,000       39,400  
                 
              1,500,843  
                 
 
 
Industrial Conglomerates 0.2%
Ingersoll-Rand Global Holding Co. Ltd., 6.00%, 08/15/13
    775,000       861,612  
                 
 
 
Information Technology Services 0.1%
First Data Corp.,
9.88%, 09/24/15
    85,000       64,600  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Information Technology Services (continued)
                 
Lender Processing Services, Inc., 8.13%, 07/01/16
  $ 200,000     $ 210,500  
SunGard Data Systems, Inc.
               
10.63%, 05/15/15
    200,000       213,750  
10.25%, 08/15/15
    105,000       108,413  
                 
              597,263  
                 
 
 
Insurance 1.2%
American International Group, Inc.,
8.18%, 05/15/58 (a)
    310,000       244,900  
Hartford Financial Services Group, Inc.
               
5.38%, 03/15/17
    990,000       981,259  
5.50%, 03/30/20
    1,450,000       1,407,357  
Lincoln National Corp.,
7.00%, 06/15/40
    620,000       653,012  
Prudential Financial, Inc.
               
3.88%, 01/14/15
    1,220,000       1,228,679  
6.63%, 06/21/40
    465,000       473,227  
                 
              4,988,434  
                 
 
 
Machinery 0.1%
Case New Holland, Inc.,
7.88%, 12/01/17 (b)
    280,000       282,100  
RBS Global, Inc./Rexnord LLC,
8.50%, 05/01/18(b)
    95,000       92,150  
                 
              374,250  
                 
 
 
Media 2.1%
Cengage Learning Acquisitions, Inc., 10.50%, 01/15/15 (b)
    55,000       51,150  
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
8.63%, 11/15/17 (b)
    305,000       303,856  
Clear Channel Communications, Inc.,
5.75%, 01/15/13
    185,000       141,525  
Clear Channel Worldwide Holdings, Inc.,
Series B, 9.25%, 12/15/17 (b)
    70,000       70,350  
Comcast Corp.
               
6.30%, 11/15/17
    505,000       576,545  
6.40%, 03/01/40
    1,340,000       1,442,266  
DISH DBS Corp.
               
7.00%, 10/01/13
    315,000       324,450  
6.63%, 10/01/14
    100,000       100,000  
7.88%, 09/01/19
    85,000       88,400  
Gannett Co., Inc.
               
8.75%, 11/15/14 (b)
    135,000       141,075  
9.38%, 11/15/17 (b)
    85,000       89,463  
Interpublic Group of Cos., Inc.,
10.00%, 07/15/17
    150,000       165,375  
Lamar Media Corp.,
9.75%, 04/01/14
    230,000       250,700  
LIN Television Corp.,
Series B, 6.50%, 05/15/13
    160,000       153,600  
NBC Universal, Inc.,
5.15%, 04/30/20 (b)
    830,000       865,680  
News America, Inc.,
6.90%, 08/15/39
    510,000       585,295  
Nielsen Finance Co. LLC,
11.50%, 05/01/16
    90,000       98,325  
Sirius XM Radio, Inc.,
8.75%, 04/01/15 (b)
    100,000       98,500  
Time Warner Cable, Inc.,
6.75%, 07/01/18
    1,910,000       2,192,447  
Univision Communications, Inc.,
12.00%, 07/01/14 (b)
    110,000       117,975  
Videotron Ltee,
6.88%, 01/15/14
    385,000       386,925  
WMG Acquisition Corp.,
9.50%, 06/15/16
    225,000       239,625  
XM Satellite Radio, Inc.,
11.25%, 06/15/13 (b)
    40,000       42,700  
                 
              8,526,227  
                 
 
 
Metals & Mining 0.6%
Arch Coal, Inc.,
8.75%, 08/01/16 (b)
    260,000       271,050  
Southern Copper Corp.,
6.75%, 04/16/40
    1,610,000       1,591,450  
Steel Dynamics, Inc.
               
6.75%, 04/01/15
    50,000       50,188  
7.75%, 04/15/16
    95,000       95,475  
Tube City IMS Corp.,
9.75%, 02/01/15
    175,000       169,312  
United States Steel Corp.,
6.65%, 06/01/37
    184,000       158,240  
                 
              2,335,715  
                 
 
 
Multiline Retail 0.0%†
Macy’s Retail Holdings, Inc.,
6.90%, 04/01/29
    90,000       86,625  
                 
 
 
Multi-Utilities 0.1%
Calpine Corp.,
7.25%, 10/15/17 (b)
    115,000       110,400  
NRG Energy, Inc.,
7.38%, 02/01/16
    160,000       159,200  
                 
              269,600  
                 
 
 
Office Electronics 0.4%
Xerox Corp.
               
5.50%, 05/15/12
    885,000       943,366  
5.63%, 12/15/19
    675,000       718,282  
                 
              1,661,648  
                 
 
 
Oil, Gas & Consumable Fuels 1.6%
Anadarko Petroleum Corp.,
5.95%, 09/15/16
    1,275,000       1,097,389  
Chesapeake Energy Corp.,
9.50%, 02/15/15
    230,000       254,150  
 
 
 
10 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Oil, Gas & Consumable Fuels (continued)
                 
Denbury Resources, Inc.,
8.25%, 02/15/20
  $ 80,000     $ 83,600  
Dynegy Holdings, Inc.,
7.75%, 06/01/19
    450,000       311,062  
Dynegy Roseton/Danskammer Pass-Through Trust,
Series B, 7.67%, 11/08/16
    30,000       26,400  
El Paso Corp.,
8.25%, 02/15/16
    200,000       209,500  
Forest Oil Corp.
               
8.50%, 02/15/14
    60,000       62,550  
7.25%, 06/15/19
    135,000       130,275  
Gazprom International SA,
7.20%, 02/01/20
    118,108       122,548  
Kinder Morgan Energy Partners LP
               
5.95%, 02/15/18
    490,000       529,219  
6.50%, 09/01/39
    705,000       726,510  
Kinder Morgan Finance Co. ULC, 5.70%, 01/05/16
    318,000       303,690  
Linn Energy LLC/Linn Energy Finance Corp.,
8.63%, 04/15/20 (b)
    90,000       92,138  
MarkWest Energy Partners LP/MarkWest Energy Finance Corp., 8.75%, 04/15/18
    260,000       262,600  
Peabody Energy Corp.,
7.38%, 11/01/16
    35,000       36,444  
Petroleos de Venezuela SA,
5.25%, 04/12/17
    15,000       8,025  
Regency Energy Partners LP,
8.38%, 12/15/13
    130,000       133,900  
Southern Star Central Corp.,
6.75%, 03/01/16
    140,000       135,450  
Valero Energy Corp.
               
6.13%, 02/01/20
    1,230,000       1,263,943  
6.63%, 06/15/37
    905,000       881,148  
                 
              6,670,541  
                 
 
 
Paper & Forest Products 0.1%
Georgia-Pacific LLC,
7.00%, 01/15/15 (b)
    200,000       202,000  
Masco Corp.,
7.13%, 03/15/20
    95,000       92,244  
                 
              294,244  
                 
 
 
Real Estate Investment Trusts (REITs) 1.0%
Host Hotels & Resorts LP
               
7.13%, 11/01/13
    85,000       85,637  
6.88%, 11/01/14
    50,000       49,875  
6.38%, 03/15/15
    35,000       34,300  
Host Hotels & Resorts LP,
Series Q, 6.75%, 06/01/16
    210,000       207,637  
Simon Property Group LP
               
5.25%, 12/01/16
    895,000       953,089  
5.88%, 03/01/17
    645,000       697,352  
Ventas Realty LP,
Series 1, 6.50%, 06/01/16
    260,000       264,749  
Ventas Realty LP
               
6.50%, 06/01/16
    120,000       122,192  
6.75%, 04/01/17
    45,000       45,544  
WEA Finance LLC,
7.50%, 06/02/14 (b)
    1,605,000       1,818,889  
                 
              4,279,264  
                 
 
 
Retailing 0.0%†
JC Penney Corp., Inc.,
7.40%, 04/01/37
    125,000       125,000  
                 
 
 
Road & Rail 0.1%
Russian Railways,
5.74%, 04/03/17
    400,000       393,500  
                 
 
 
Semiconductors & Semiconductor Equipment 0.1%
Advanced Micro Devices, Inc.,
8.13%, 12/15/17 (b)
    165,000       164,175  
Freescale Semiconductor, Inc.,
9.25%, 04/15/18 (b)
    165,000       162,937  
                 
              327,112  
                 
 
 
Specialty Retail 0.0%†
Toys “R” Us Property Co. I LLC,
10.75%, 07/15/17 (b)
    145,000       158,413  
                 
 
 
Tobacco 2.3%
Altria Group, Inc.
               
9.70%, 11/10/18
    3,660,000       4,634,951  
9.95%, 11/10/38
    255,000       335,010  
Lorillard Tobacco Co.
               
8.13%, 06/23/19
    3,635,000       4,031,408  
6.88%, 05/01/20
    640,000       650,132  
                 
              9,651,501  
                 
 
 
Trading Companies & Distributors 0.2%
RSC Equipment Rental, Inc.
               
9.50%, 12/01/14
    180,000       178,875  
10.25%, 11/15/19 (b)
    95,000       95,950  
United Rentals North America, Inc.
               
7.00%, 02/15/14
    85,000       79,900  
10.88%, 06/15/16
    300,000       321,750  
                 
              676,475  
                 
 
 
Wireless Telecommunication Services 0.5%
America Movil SAB de CV,
5.00%, 03/30/20(b)
    1,415,000       1,461,940  
Cricket Communications, Inc.,
7.75%, 05/15/16
    150,000       153,000  
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund (Continued)
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Wireless Telecommunication Services (continued)
                 
MetroPCS Wireless, Inc.,
9.25%, 11/01/14
  $ 160,000     $ 164,800  
Vodafone Group PLC,
4.15%, 06/10/14
    90,000       94,436  
                 
              1,874,176  
                 
         
Total Corporate Bonds (cost $144,635,908)
    150,726,135  
         
                 
                 
U.S. Government Mortgage Backed Agencies 32.5%
                 
                 
Fannie Mae Pool
Pool # 969941
5.00%, 03/01/23
    171,347       183,060  
Pool # 982885
5.00%, 05/01/23
    69,598       74,356  
Pool # 975884
5.00%, 06/01/23
    63,852       68,217  
Pool # 987214
5.00%, 07/01/23
    30,477       32,560  
Pool # 976243
5.00%, 08/01/23
    116,214       124,159  
Pool # 987456
               
5.00%, 08/01/23
    86,158       92,048  
Pool # 965102
               
5.00%, 09/01/23
    36,890       39,412  
Pool # 988300
               
5.00%, 09/01/23
    178,911       191,141  
Pool # 992021
               
5.00%, 10/01/23
    110,846       118,423  
Pool # 735578
               
5.00%, 06/01/35
    283,173       300,574  
Pool # 834657
               
5.50%, 08/01/35
    23,367       25,143  
Pool # 835482
               
5.50%, 10/01/35
    141,274       152,010  
Pool # 745826
               
6.00%, 07/01/36
    97,002       105,572  
Pool # 899215
               
6.00%, 10/01/36
    188,784       205,462  
Pool # 831922
               
5.50%, 11/01/36
    113,412       121,925  
Pool # 888222
               
6.00%, 02/01/37
    206,188       224,404  
Pool # 913304
               
5.50%, 04/01/37
    263,525       283,249  
Pool # 899528
               
5.50%, 05/01/37
    736,077       791,173  
Pool # 937090
               
5.50%, 05/01/37
    695,443       747,496  
Pool # 917141
               
5.50%, 06/01/37
    148,679       159,840  
Pool # 915639
               
6.00%, 06/01/37
    823,934       895,179  
Pool # 939984
               
6.00%, 06/01/37
    689,020       748,599  
Pool # 938175
               
5.50%, 07/01/37
    116,403       125,115  
Pool # 899598
               
6.00%, 07/01/37
    89,800       97,565  
Pool # 928483
               
6.00%, 07/01/37
    830,537       902,352  
Pool # 944526
               
6.00%, 07/01/37
    375,158       407,597  
Pool # 945218
               
5.50%, 08/01/37
    28,994       31,164  
Pool # 936895
               
6.00%, 08/01/37
    43,597       47,367  
Pool # 952277
               
5.50%, 09/01/37
    14,758       15,863  
Pool # 943640
               
5.50%, 10/01/37
    27,794       29,875  
Pool # 950992
               
5.50%, 10/01/37
    41,173       44,255  
Pool # 946923
               
6.00%, 10/01/37
    853,465       927,262  
Pool # 960117
               
5.50%, 11/01/37
    14,576       15,667  
Pool # 933166
               
6.00%, 11/01/37
    2,332,145       2,533,802  
Pool # 956411
               
6.00%, 11/01/37
    330,969       359,587  
Pool # 959983
               
6.00%, 11/01/37
    954,437       1,036,966  
Pool # 967276
               
5.00%, 12/01/37
    178,989       189,670  
Pool # 929018
               
6.00%, 12/01/37
    632,008       686,656  
Pool # 966419
               
6.00%, 12/01/37
    394,752       428,886  
Pool # 952035
               
5.50%, 01/01/38
    414,223       445,228  
Pool # 961256
               
5.50%, 01/01/38
    528,017       567,540  
Pool # 969451
               
5.50%, 01/01/38
    749,289       805,374  
Pool # 961348
               
6.00%, 01/01/38
    1,062,513       1,154,387  
Pool # 965719
               
6.00%, 01/01/38
    276,924       300,696  
Pool # 960048
               
5.50%, 02/01/38
    40,823       43,878  
Pool # 969757
               
5.50%, 02/01/38
    32,997       35,467  
Pool # 972701
               
5.50%, 02/01/38
    136,206       146,401  
Pool # 933409
               
5.00%, 03/01/38
    687,988       729,042  
Pool # 961849
               
5.50%, 03/01/38
    353,957       380,450  
 
 
 
12 Semiannual Report 2010

 

 
 
 
                 
U.S. Government Mortgage Backed Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Fannie Mae Pool (continued)
               
Pool # 974674
               
5.50%, 03/01/38
  $ 192,315     $ 206,710  
Pool # 970185
               
5.00%, 04/01/38
    328,963       348,593  
Pool # 973726
               
6.00%, 04/01/38
    1,737,607       1,886,770  
Pool # 929515
               
5.00%, 05/01/38
    126,595       134,149  
Pool # 962874
               
5.00%, 05/01/38
    107,741       114,170  
Pool # 982126
               
5.00%, 05/01/38
    326,365       345,840  
Pool # 969268
               
5.50%, 05/01/38
    25,765       27,693  
Pool # 970232
               
5.50%, 05/01/38
    76,683       82,423  
Pool # 995048
               
5.50%, 05/01/38
    1,016,395       1,092,688  
Pool # 889509
               
6.00%, 05/01/38
    410,114       445,576  
Pool # 889579
               
6.00%, 05/01/38
    742,391       806,584  
Pool # 933927
               
5.50%, 06/01/38
    275,441       296,058  
Pool # 976213
               
5.50%, 06/01/38
    29,258       31,448  
Pool # 983821
               
5.50%, 06/01/38
    229,671       246,862  
Pool # 985731
               
5.50%, 06/01/38
    343,361       369,062  
Pool # 934108
               
5.00%, 07/01/38
    408,072       432,423  
Pool # 934333
               
5.50%, 07/01/38
    2,078,416       2,233,985  
Pool # 986264
               
5.50%, 07/01/38
    1,529,409       1,643,886  
Pool # 988029
               
5.00%, 08/01/38
    391,283       414,632  
Pool # 257306
               
5.50%, 08/01/38
    40,121       43,124  
Pool # 964970
               
5.50%, 08/01/38
    375,887       404,022  
Pool # 975697
               
5.50%, 08/01/38
    272,247       292,625  
Pool # 986062
               
5.50%, 08/01/38
    94,131       101,177  
Pool # 925973
               
6.00%, 08/01/38
    132,764       144,160  
Pool # 970818
               
5.50%, 09/01/38
    402,439       432,562  
Pool # 970650
               
5.50%, 10/01/38
    1,067,834       1,147,761  
Pool # 990786
               
5.50%, 10/01/38
    231,868       249,223  
Pool # 992032
               
5.50%, 10/01/38
    552,390       593,736  
Pool # 992471
               
5.50%, 10/01/38
    153,238       164,708  
Pool # 991002
               
6.00%, 10/01/38
    122,853       133,399  
Pool # 934645
               
5.50%, 11/01/38
    1,166,136       1,253,421  
Pool # 985805
               
5.50%, 11/01/38
    377,417       405,667  
Pool # 934249
               
5.50%, 12/01/38
    373,094       401,020  
Pool # 970929
               
5.50%, 12/01/38
    824,529       886,245  
Pool # 992676
               
5.50%, 12/01/38
    666,537       716,428  
Pool # 993111
               
5.50%, 01/01/39
    765,981       823,314  
Pool # AC0017
               
5.50%, 09/01/39
    53,213       57,191  
Pool # AD0638
               
6.00%, 09/01/39
    623,613       677,536  
5.00%, 07/25/40
    10,220,000       10,812,443  
6.00%, 07/25/40
    240,000       260,287  
5.00%, 08/25/40
    1,155,000       1,217,623  
Fannie Mae TBA
               
5.50%, 07/25/40
    62,045,000       66,601,461  
Freddie Mac Gold Pool
               
Pool # G13072
               
5.00%, 04/01/23
    69,444       74,147  
Pool # G13122
               
5.00%, 04/01/23
    49,704       53,060  
Pool # J07940
               
5.00%, 05/01/23
    549,246       586,332  
Pool # G13225
               
5.00%, 06/01/23
    705,594       753,237  
Pool # J07942
               
5.00%, 06/01/23
    70,052       74,782  
Pool # J08443
               
5.00%, 07/01/23
    149,092       159,159  
Pool # A14186
               
5.50%, 10/01/33
    10,057       10,857  
Pool # A82875
               
5.50%, 11/01/33
    251,549       271,571  
Pool # C01674
               
5.50%, 11/01/33
    78,539       84,790  
Pool # A39584
               
5.50%, 11/01/35
    280,527       302,066  
Pool # A52983
               
5.50%, 10/01/36
    601,276       646,503  
Pool # A61562
               
5.50%, 10/01/36
    233,769       251,352  
Pool # G02379
               
6.00%, 10/01/36
    118,819       129,261  
 
 
 
2010 Semiannual Report 13

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund (Continued)
 
                 
U.S. Government Mortgage Backed Agencies (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Freddie Mac Gold Pool (continued)
               
Pool # G08204
               
5.50%, 06/01/37
  $ 84,023     $ 90,272  
Pool # G03432
               
5.50%, 11/01/37
    67,997       73,055  
Pool # A72499
               
6.00%, 02/01/38
    79,883       86,810  
Pool # G04220
               
5.50%, 03/01/38
    197,485       212,175  
Pool # G08256
               
5.50%, 03/01/38
    86,483       92,916  
Pool # G04156
               
6.00%, 03/01/38
    172,233       187,170  
Pool # G08263
               
5.50%, 04/01/38
    117,592       126,338  
Pool # A76684
               
5.00%, 05/01/38
    312,782       331,349  
Pool # A77391
               
5.00%, 05/01/38
    938,504       994,214  
Pool # A76939
               
5.50%, 05/01/38
    231,472       248,690  
Pool # A77208
               
5.50%, 05/01/38
    192,354       206,662  
Pool # A77648
               
5.50%, 06/01/38
    83,938       90,181  
Pool # A77937
               
5.50%, 06/01/38
    1,296,063       1,392,466  
Pool # G04458
               
5.50%, 06/01/38
    638,215       685,687  
Pool # A78076
               
6.00%, 06/01/38
    157,079       170,702  
Pool # A78454
               
6.00%, 06/01/38
    324,286       352,409  
Pool # A79197
               
5.00%, 07/01/38
    158,518       167,927  
Pool # A78982
               
5.50%, 07/01/38
    287,385       308,761  
Pool # A79018
               
5.50%, 07/01/38
    651,476       699,934  
Pool # A79806
               
5.50%, 07/01/38
    177,500       190,703  
Pool # G04471
               
5.50%, 07/01/38
    697,434       749,310  
Pool # A82609
               
5.50%, 09/01/38
    301,536       323,964  
Pool # A83032
               
5.50%, 11/01/38
    180,353       193,768  
Pool # A83345
               
5.00%, 12/01/38
    521,149       552,084  
Pool # A83596
               
5.50%, 12/01/38
    327,332       351,679  
Pool # G08323
               
5.00%, 02/01/39
    1,467,351       1,554,454  
Pool # A87679
               
5.00%, 08/01/39
    741,339       785,271  
Freddie Mac Non Gold Pool Pool # 1K1238, 5.81%, 07/01/36 (a)
    56,969       60,663  
Ginnie Mae I Pool
               
Pool # 603581
               
5.50%, 04/15/33
    96,867       105,443  
Pool # 618988
               
6.00%, 06/15/34
    68,673       75,569  
Pool # 658029
               
6.00%, 07/15/36
    25,989       28,428  
Pool # 617456
               
6.00%, 03/15/37
    40,133       43,824  
Pool # 600658
               
5.50%, 05/15/37
    94,742       102,596  
Pool # 657732
               
5.50%, 05/15/37
    150,776       163,276  
Pool # 675407
               
5.50%, 07/15/37
    109,086       118,130  
Pool # 782185
               
6.00%, 09/15/37
    24,423       26,681  
Pool # 670824
               
6.00%, 12/15/37
    62,963       68,753  
Pool # 671189
               
6.00%, 12/15/37
    45,419       49,597  
Pool # 686034
               
5.50%, 04/15/38
    85,652       92,699  
Pool # 674084
               
5.00%, 05/15/38
    275,967       294,733  
Pool # 686342
               
6.00%, 05/15/38
    32,321       35,283  
Pool # 690847
               
5.50%, 06/15/38
    79,787       86,352  
Pool # 632219
               
5.50%, 07/15/38
    65,289       70,661  
Pool # 689694
               
5.50%, 07/15/38
    137,179       148,466  
Pool # 690435
               
5.50%, 07/15/38
    111,444       120,613  
Pool # 687727
               
6.00%, 07/15/38
    67,638       73,838  
Pool # 690310
               
6.00%, 07/15/38
    67,561       73,754  
Pool # 689575
               
6.50%, 07/15/38
    283,593       311,607  
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $130,294,442)
    133,917,833  
         
                 
                 
Sovereign Bonds 1.5%
                 
                 
ARGENTINA 0.0%†
Argentina Bonos,
2.50%, 12/31/38 (c)
    157,000       56,324  
                 
 
 
 
14 Semiannual Report 2010

 

 
 
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
BELIZE 0.0%†
Belize Government International Bond,
6.00%, 02/20/29 (c)
  $ 94,000     $ 69,560  
                 
 
 
BRAZIL 0.2%
Brazilian Government International Bond
               
4.88%, 01/22/21
    260,000       260,390  
11.00%, 08/17/40
    54,000       72,306  
5.63%, 01/07/41
    293,000       287,872  
                 
              620,568  
                 
 
 
BULGARIA 0.0%†
Bulgaria Government International Bond, 8.25%, 01/15/15
    70,000       78,750  
                 
 
 
COLOMBIA 0.1%
Colombia Government International Bond
               
10.75%, 01/15/13
    30,000       36,075  
8.25%, 12/22/14
    110,000       130,840  
7.38%, 03/18/19
    100,000       117,000  
8.13%, 05/21/24
    40,000       49,400  
                 
              333,315  
                 
 
 
EL SALVADOR 0.0%†
El Salvador Government International Bond,
7.65%, 06/15/35
    135,000       143,100  
                 
 
 
GABON 0.0%†
Gabonese Republic,
8.20%, 12/12/17
    100,000       106,530  
                 
 
 
INDONESIA 0.2%
Indonesia Government International Bond
               
6.75%, 03/10/14
    296,000       327,328  
7.25%, 04/20/15
    45,000       51,338  
5.88%, 03/13/20
    339,000       358,916  
8.50%, 10/12/35
    165,000       208,313  
                 
              945,895  
                 
 
 
LEBANON 0.1%
Lebanon Government International Bond
               
9.00%, 03/20/17
    15,000       17,607  
6.38%, 03/09/20
    162,000       162,005  
8.25%, 04/12/21
    150,000       169,125  
                 
              348,737  
                 
 
 
LITHUANIA 0.1%
Lithuania Government International Bond,
7.38%, 02/11/20 (b)
    210,000       219,049  
                 
MEXICO 0.0%†
Mexico Government International Bond
               
5.88%, 02/17/14
    60,000       65,820  
6.75%, 09/27/34
    100,000       115,250  
                 
              181,070  
                 
 
 
PANAMA 0.1%
Panama Government International Bond
               
7.25%, 03/15/15
    40,000       46,300  
8.88%, 09/30/27
    165,000       219,846  
6.70%, 01/26/36
    25,000       27,815  
                 
              293,961  
                 
 
 
PERU 0.1%
Republic of Peru
               
7.13%, 03/30/19
    168,000       198,660  
6.55%, 03/14/37
    50,000       55,250  
                 
              253,910  
                 
 
 
PHILIPPINES 0.1%
Philippine Government International Bond
               
9.88%, 01/15/19
    130,000       172,965  
9.50%, 02/02/30
    12,000       16,286  
                 
              189,251  
                 
 
 
POLAND 0.0%†
Poland Government International Bond,
6.38%, 07/15/19
    128,000       139,840  
                 
 
 
RUSSIA 0.0%†
Russian Foreign Bond — Eurobond,
7.50%, 03/31/30 (c)
    85,560       96,452  
                 
 
 
SOUTH AFRICA 0.1%
South Africa Government International Bond
               
6.50%, 06/02/14
    45,000       50,247  
5.50%, 03/09/20
    420,000       434,910  
5.88%, 05/30/22
    100,000       105,760  
                 
              590,917  
                 
 
 
TURKEY 0.2%
Republic of Turkey, 7.50%, 11/07/19
    100,000       114,625  
Turkey Government International Bond
               
7.00%, 06/05/20
    210,000       232,522  
5.63%, 03/30/21
    180,000       178,587  
7.38%, 02/05/25
    70,000       78,810  
6.88%, 03/17/36
    140,000       144,550  
                 
              749,094  
                 
 
 
 
2010 Semiannual Report 15

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Core Plus Bond Fund (Continued)
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
UKRAINE 0.1%
Ukraine Government International Bond,
6.58%, 11/21/16
  $ 327,000     $ 302,900  
                 
 
 
URUGUAY 0.1%
Uruguay Government International Bond
               
8.00%, 11/18/22
    75,000       90,731  
6.88%, 09/28/25
    153,000       170,595  
7.88%, 01/15/33
    125,000       148,125  
                 
              409,451  
                 
 
 
VENEZUELA 0.0%†
Bolivarian Republic of Venezuela,
8.25%, 10/13/24
    133,000       76,808  
                 
 
 
VIETNAM 0.0%†
Socialist Republic of Vietnam,
6.75%, 01/29/20
    100,000       103,440  
                 
         
Total Sovereign Bonds (cost $6,109,425)
    6,308,922  
         
                 
                 
U.S. Government Sponsored & Agency
Obligations 0.5%
                 
Federal Home Loan Banks
               
3.63%, 05/29/13
    1,630,000       1,745,813  
4.00%, 09/06/13
    150,000       162,303  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $1,759,254)
    1,908,116  
         
                 
                 
U.S. Treasury Bill 15.5%
                 
U.S. Treasury Bill,
0.21%, 11/18/10
    64,000,000       63,953,984  
                 
         
Total U.S. Treasury Bill (cost $63,948,511)
    63,953,984  
         
                 
                 
U.S. Treasury Bond 6.3%
                 
                 
U.S. Treasury Inflation Indexed Bonds, 2.38%, 01/15/17
    21,505,000       25,665,398  
                 
         
Total U.S. Treasury Bond (cost $23,996,846)
    25,665,398  
         
                 
                 
U.S. Treasury Notes 7.6%
                 
      Principal
Amount 		      Market
Value 		 
 
 
U.S. Treasury Note
               
2.38%, 10/31/14
    6,535,000       6,742,284  
3.13%, 01/31/17
    14,195,000       14,845,968  
3.63%, 08/15/19
    490,000       518,137  
3.63%, 02/15/20
    8,525,000       9,007,191  
                 
         
Total U.S. Treasury Notes (cost $30,188,301)
    31,113,580  
         
                 
                 
Mutual Fund 7.4%
                 
      Shares       Market
Value 		 
 
 
                 
                 
Money Market Fund 7.4%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (d)
    30,608,437       30,608,437  
                 
         
Total Mutual Fund (cost $30,608,437)
    30,608,437  
         
         
Total Investments (cost $467,726,578) (e) — 118.3%
    487,008,602  
         
Liabilities in excess of other assets — (18.3)%
    (75,227,968 )
         
         
NET ASSETS — 100.0%
  $ 411,780,634  
         
 
(a) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(b) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $30,662,383 which represents 7.45% of net assets.
 
(c) Step Bond. Coupon rate is set for an initial period and then increases to a higher coupon rate at a specific date. The rate shown is the rate at June 30, 2010.
 
(d) Represents 7-day effective yield as of June 30, 2010.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AG Stock Corporation
 
BV Private Limited Liability Company
 
LLC Limited Liability Company
 
LP Limited Partnership
 
 
 
16 Semiannual Report 2010

 

 
 
 
Ltd. Limited
 
OJSC Open Joint Stock Company
 
PLC Public Limited Company
 
SA Stock Company
 
SAB de CV Public Traded Company
 
TBA To Be Announced
 
ULC Unlimited Liability Company
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 17

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Core Plus
 		 
      Bond Fund  
       
Assets:
         
Investments, at value (cost $467,726,578)
    $ 487,008,602  
Interest and dividends receivable
      3,239,761  
Receivable for investments sold
      3,491,178  
Receivable for capital shares issued
      1,822,693  
Prepaid expenses and other assets
      17,171  
           
Total Assets
      495,579,405  
           
Liabilities:
         
Payable for investments purchased
      83,584,850  
Payable for capital shares redeemed
      10,631  
Accrued expenses and other payables:
         
Investment advisory fees
      146,840  
Fund administration fees
      16,379  
Distribution fees
      5,038  
Administrative servicing fees
      2,885  
Accounting and transfer agent fees
      14,449  
Custodian fees
      662  
Compliance program costs (Note 3)
      1,713  
Professional fees
      13,308  
Other
      2,016  
           
Total Liabilities
      83,798,771  
           
Net Assets
    $ 411,780,634  
           
Represented by:
         
Capital
    $ 388,160,506  
Accumulated undistributed net investment income
      50,298  
Accumulated net realized gains from investment transactions
      4,287,806  
Net unrealized appreciation/(depreciation) from investments
      19,282,024  
           
Net Assets
    $ 411,780,634  
           
Net Assets:
         
Class I Shares
    $ 457,215  
Class II Shares
      24,985,550  
Class Y Shares
      386,337,869  
           
Total
    $ 411,780,634  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      41,103  
Class II Shares
      2,248,852  
Class Y Shares
      34,698,549  
           
Total
      36,988,504  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 11.12  
Class II Shares
    $ 11.11  
Class Y Shares
    $ 11.13  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
18 Semiannual Report 2010

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Core Plus
 		 
      Bond Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 7,350,805  
Dividend income
      31,092  
Foreign tax withholding
      (2,619 )
           
Total Income
      7,379,278  
           
EXPENSES:
         
Investment advisory fees
      777,514  
Fund administration fees
      70,224  
Distribution fees Class II Shares
      26,611  
Administrative servicing fees Class I Shares
      294  
Administrative servicing fees Class II Shares
      15,966  
Professional fees
      21,238  
Printing fees
      22,265  
Trustee fees
      5,992  
Custodian fees
      6,174  
Accounting and transfer agent fees
      19,775  
Compliance program costs (Note 3)
      722  
Other
      7,531  
           
Total expenses before earnings credits
      974,306  
Earnings credit (Note 4)
      (181 )
           
Net Expenses
      974,125  
           
NET INVESTMENT INCOME
      6,405,153  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      4,305,483  
Net change in unrealized appreciation/(depreciation) from investments
      7,610,904  
           
Net realized/unrealized gains from investments
      11,916,387  
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 18,321,540  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 19

 

Statements of Changes in Net Assets
 
                     
      NVIT Core Plus Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 6,405,153       $ 7,465,180  
Net realized gains from investment transactions
      4,305,483         7,981,425  
Net change in unrealized appreciation from investments
      7,610,904         11,328,570  
                     
Change in net assets resulting from operations
      18,321,540         26,775,175  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (6,585 )       (15,024 )
Class II
      (351,968 )       (450,099 )
Class Y
      (5,996,302 )       (7,961,109 )
Net realized gains:
                   
Class I
      (2,391 )       (8,153 )
Class II
      (130,280 )       (325,813 )
Class Y
      (1,985,311 )       (4,664,069 )
                     
Change in net assets from shareholder distributions
      (8,472,837 )       (13,424,267 )
                     
Change in net assets from capital transactions
      109,163,771         198,804,225  
                     
Change in net assets
      119,012,474         212,155,133  
                     
                     
Net Assets:
                   
Beginning of period
      292,768,160         80,613,027  
                     
End of period
    $ 411,780,634       $ 292,768,160  
                     
Accumulated undistributed net investment income at end of period
    $ 50,298       $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 203,987       $ 460,691  
Dividends reinvested
      8,976         23,177  
Cost of shares redeemed
      (201,497 )       (273,402 )
                     
Total Class I
      11,466         210,466  
                     
Class II Shares
                   
Proceeds from shares issued
      8,359,640         20,232,427  
Dividends reinvested
      482,248         775,912  
Cost of shares redeemed
      (2,792,210 )       (5,903,118 )
                     
Total Class II
      6,049,678         15,105,221  
                     
Class Y Shares
                   
Proceeds from shares issued
      98,765,743         185,547,517  
Dividends reinvested
      7,981,613         12,625,178  
Cost of shares redeemed
      (3,644,729 )       (14,684,157 )
                     
Total Class Y
      103,102,627         183,488,538  
                     
Change in net assets from capital transactions
    $ 109,163,771       $ 198,804,225  
                     
Amounts designated as “–” are zero or have been rounded to zero.

The accompanying notes are an integral part of these financial statements.
 
 
 
 
20 Semiannual Report 2010

 

 
 
                     
      NVIT Core Plus Bond Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      18,429         44,754  
Reinvested
      813         2,170  
Redeemed
      (18,372 )       (26,051 )
                     
Total Class I Shares
      870         20,873  
                     
Class II Shares
                   
Issued
      759,076         1,932,145  
Reinvested
      43,721         72,083  
Redeemed
      (253,880 )       (587,282 )
                     
Total Class II Shares
      548,917         1,416,946  
                     
Class Y Shares
                   
Issued
      8,939,662         17,681,082  
Reinvested
      722,106         1,176,337  
Redeemed
      (330,136 )       (1,429,138 )
                     
Total Class Y Shares
      9,331,632         17,428,281  
                     
Total change in shares
      9,881,419         18,866,100  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 21

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Core Plus Bond Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net
 		                                                          Ratio of
 		         
                Realized
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          and
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		          Unrealized
 		                            Net
 		                Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Asset
 		          Net Assets
 		    to Average
 		    to Average
 		    to Average
 		         
    of
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End
 		    Net
 		    Net
 		    Net
 		    Portfolio
 		   
  Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     of Period     Assets (b)     Assets (b)     Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .79       0 .20       0 .37       0 .57       (0 .18)       (0 .06)       (0 .24)     $ 11 .12       5 .33%     $ 457,215         0 .69%       3 .57%       0 .69%       154 .57%    
Year Ended December 31, 2009 (e)
  $ 9 .78       0 .46       1 .15       1 .61       (0 .40)       (0 .20)       (0 .60)     $ 10 .79       16 .62%     $ 434,166         0 .70%       4 .34%       0 .71%       157 .56%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .18       (0 .20)       (0 .02)       (0 .20)       –          (0 .20)     $ 9 .78       (0 .13%)     $ 189,255         0 .62%       4 .57%       0 .74%       105 .57%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .78       0 .18       0 .38       0 .56       (0 .17)       (0 .06)       (0 .23)     $ 11 .11       5 .22%     $ 24,985,550         0 .94%       3 .32%       0 .94%       154 .57%    
Year Ended December 31, 2009 (e)
  $ 9 .77       0 .41       1 .18       1 .59       (0 .38)       (0 .20)       (0 .58)     $ 10 .78       16 .44%     $ 18,326,170         0 .95%       3 .84%       0 .95%       157 .56%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .18       (0 .21)       (0 .03)       (0 .20)       –          (0 .20)     $ 9 .77       (0 .31%)     $ 2,765,081         0 .94%       4 .29%       1 .03%       105 .57%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 10 .80       0 .20       0 .38       0 .58       (0 .19)       (0 .06)       (0 .25)     $ 11 .13       5 .41%     $ 386,337,869         0 .54%       3 .72%       0 .54%       154 .57%    
Year Ended December 31, 2009 (e)
  $ 9 .78       0 .46       1 .18       1 .64       (0 .42)       (0 .20)       (0 .62)     $ 10 .80       16 .89%     $ 274,007,824         0 .55%       4 .35%       0 .56%       157 .56%    
Period Ended December 31, 2008 (e) (f)
  $ 10 .00       0 .21       (0 .22)       (0 .01)       (0 .21)       –          (0 .21)     $ 9 .78       (0 .09%)     $ 77,658,691         0 .55%       4 .66%       0 .66%       105 .57%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
22 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Core Plus Bond Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Asset Back Securities
  $ —     $ 483,815     $ —     $ 483,815      
 
 
Commercial Mortgage Backed Securities
    —       42,322,382       —       42,322,382      
 
 
Corporate Bonds
    —       150,726,135       —       150,726,135      
 
 
Mutual Fund
    30,608,437       —       —       30,608,437      
 
 
Sovereign Bonds
    —       6,308,922       —       6,308,922      
 
 
U.S. Government Mortgage Backed Agencies
    —       133,917,833       —       133,917,833      
 
 
U.S. Government Sponsored & Agency Obligations
    —       1,908,116       —       1,908,116      
 
 
U.S. Treasury Bill
    —       63,953,984       —       63,953,984      
 
 
U.S. Treasury Bond
    —       25,665,398       —       25,665,398      
 
 
U.S. Treasury Notes
    —       31,113,580       —       31,113,580      
 
 
Total Assets
  $ 30,608,437     $ 456,400,165     $ —     $ 487,008,602      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
 
 
24 Semiannual Report 2010

 

 
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Neuberger Berman Fixed Income, LLC (“Neuberger Berman”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of Neuberger Berman.
 
Under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.45%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the subadviser. NFA paid the subadviser $333,362 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.55% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period/ year in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 34,000     $ 9,652     $ —     $ 43,652      
 
 
(a) For the period March 25, 2008 (commencement of operations) to December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
 
 
26 Semiannual Report 2010

 

 
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II shares of the Fund.
 
For the six months ended June 30, 2010, NFS received $16,260 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $722.
 
 
 
2010 Semiannual Report 27

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $624,932,662 and sales of $517,189,516 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $511,533,161 and sales of $464,202,986 of U.S. Government securities.
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
28 Semiannual Report 2010

 

 
 
7. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 467,827,962     $ 20,118,863     $ (938,223 )   $ 19,180,640      
 
 
 
8. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 29

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
30 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Core Plus Bond Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Neuberger Berman Fixed Income LLC (“Neuberger Berman”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. With respect to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the second quintile of its Peer Group. The Trustees noted that the Fund outperformed its benchmark, the Barclays Capital U.S. Aggregate Bond Index, for the same period. In light of the Fund’s relatively short performance history, the Trustees took into consideration Neuberger Berman’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of Neuberger Berman.
 
The Trustees then noted that the Fund’s total expenses were only two basis points above the Peer Group median. The Trustees noted that the Fund’s contractual advisory fee for Class II shares was in the first quintile of its Peer Group, while the Fund’s actual advisory fee was in the third quintile and above the median of its Peer Group. The Trustees then noted that the Fund’s total expenses were in the first quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 31

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
32 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 33

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
34 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 35

 

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NVIT Enhanced Income Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
11
   
Statement of Assets and Liabilities
       
12
   
Statement of Operations
       
13
   
Statements of Changes in Net Assets
       
14
   
Financial Highlights
       
15
   
Notes to Financial Statements
       
22
   
Supplemental Information
       
24
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ENHI (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Enhanced Income Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Enhanced Income Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class Y Shares
    Actual       1,000.00       1,007.30       2.14       0.43  
      Hypothetical b     1,000.00       1,022.66       2.16       0.43  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Enhanced Income Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Asset-Backed Securities
    28 .8%
Corporate Bonds
    27 .7%
Collateralized Mortgage Obligations
    25 .0%
Mutual Fund
    5 .0%
U.S. Treasury Notes
    4 .2%
Commercial Mortgage Backed Securities
    3 .0%
Sovereign Bonds
    2 .5%
U.S. Government Sponsored & Agency Obligations
    1 .8%
U.S. Government Mortgage Backed Agencies
    0 .9%
Yankee Dollar
    0 .5%
Other assets in excess of liabilities
    0 .6%
         
      100 .0%
         
         
Top Industries †    
 
Diversified Financial Services
    8 .2%
Commercial Banks
    6 .1%
Capital Markets
    2 .6%
Aerospace & Defense
    2 .0%
Diversified Telecommunication Services
    1 .5%
Insurance
    1 .2%
Food & Staples Retailing
    1 .2%
Personal Products
    1 .0%
Communications Equipment
    0 .7%
Food Products
    0 .7%
Other Industries
    74 .8%
         
      100 .0%
         
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    5 .0%
Fannie Mae REMICS, 4.00%, 09/25/24
    2 .3%
U.S. Treasury Note, 1.13%, 01/15/12
    1 .9%
U.S. Treasury Note, 1.00%, 09/30/11
    1 .4%
CenterPoint Energy Transition Bond Co. LLC, 4.97%, 08/01/14
    1 .2%
Capital One Multi-Asset Execution Trust, 4.85%, 02/18/14
    1 .2%
Freddie Mac REMICS, 4.00%, 01/15/17
    1 .1%
PG&E Energy Recovery Funding LLC,
5.03%, 03/25/14
    1 .0%
Honeywell International, Inc., 6.13%, 11/01/11
    1 .0%
Western Union Co. (The), 5.40%, 11/17/11
    1 .0%
Other Holdings
    82 .9%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Enhanced Income Fund
 
                 
                 
Asset-Backed Securities 28.8%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Automobile 12.3%
Ally Auto Receivables Trust
Series 2010-1, Class A2,
0.75%, 04/15/12
  $ 2,400,000     $ 2,397,299  
Series 2010-2, Class A2,
0.89%, 09/17/12
    3,000,000       3,000,206  
Bank of America Auto Trust
Series 2009-3A, Class A2,
0.89%, 04/15/12 (a)
    3,000,000       3,002,002  
Series 2010-1A, Class A2,
0.75%, 06/15/12 (a)
    3,000,000       2,999,545  
BMW Vehicle Owner Trust, Series 2010-A, Class A2,
0.68%, 09/25/12
    3,000,000       2,997,175  
Capital Auto Receivables Asset Trust
Series 2006-2, Class A3A,
4.98%, 05/15/11
    36,412       36,477  
Series 2007-1, Class A4A,
5.01%, 04/16/12
    2,236,255       2,284,490  
Honda Auto Receivables Owner Trust
Series 2009-2, Class A2,
2.22%, 08/15/11
    1,217,976       1,221,102  
Series 2010-1, Class A2,
0.62%, 02/21/12
    3,500,000       3,497,825  
Hyundai Auto Receivables Trust, Series 2010-A, Class A2,
0.86%, 11/15/12
    3,500,000       3,500,458  
Nissan Auto Receivables Owner Trust
Series 2006-C, Class A4,
5.45%, 06/15/12
    731,216       735,277  
Series 2007-B, Class A4,
5.16%, 03/17/14
    2,483,717       2,568,049  
Toyota Auto Receivables Owner Trust, Series 2010-A, Class A2,
0.75%, 05/15/12
    3,500,000       3,496,899  
USAA Auto Owner Trust
Series 2007-2, Class A4,
5.07%, 06/15/13
    2,550,000       2,623,848  
Series 2008-2, Class A3,
4.64%, 10/15/12
    423,856       432,388  
Volkswagen Auto Loan Enhanced Trust
Series 2008-1, Class A3,
4.50%, 07/20/12
    1,983,502       2,012,682  
Series 2010-1, Class A2,
0.66%, 05/21/12
    3,000,000       2,997,938  
World Omni Auto Receivables Trust
Series 2009-A, Class A3,
3.33%, 05/15/13
    3,000,000       3,060,727  
Series 2010-A, Class A2,
0.70%, 06/15/12
    3,000,000       2,997,826  
                 
              45,862,213  
                 
 
 
Credit Card 7.8%
American Express Credit Account Master Trust
Series 2005-4, Class A, 0.42%, 01/15/15 (b)
    3,392,000       3,375,848  
Series 2007-5, Class A, 0.38%, 12/15/14 (b)
    3,000,000       2,984,249  
BA Credit Card Trust,
Series 2006-A16, Class A16,
4.72%, 05/15/13
    2,000,000       2,036,742  
Capital One Multi-Asset Execution Trust
Series 2006-A2, Class A,
4.85%, 11/15/13
    3,000,000       3,065,452  
Series 2008-A5, Class A5,
4.85%, 02/18/14
    4,230,000       4,360,931  
Chase Issuance Trust
Series 2005-A7, Class A7,
4.55%, 03/15/13
    2,500,000       2,551,071  
Series 2007-A15, Class A,
4.96%, 09/17/12
    3,500,000       3,531,429  
Series 2008-A9, Class A9,
4.26%, 05/15/13
    2,500,000       2,573,275  
Citibank Credit Card Issuance Trust, Series 2005-A7, Class A7, 4.75%, 10/22/12
    2,000,000       2,024,823  
MBNA Credit Card Master Note Trust, Series 2004-A2, Class A2,
0.50%, 07/15/13 (b)
    2,400,000       2,399,043  
                 
              28,902,863  
                 
 
 
Other 8.7%
AEP Texas Central Transition Funding LLC,
Series 2002-1, Class A4,
5.96%, 07/15/15
    1,126,000       1,212,968  
CenterPoint Energy Transition Bond Co. LLC,
Series 2005-A, Class A2,
4.97%, 08/01/14
    4,347,248       4,528,441  
Consumer Funding LLC, Series 2001-1, Class A5,
5.43%, 04/20/15
    1,152,152       1,224,336  
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Enhanced Income Fund (Continued)
 
                 
Asset-Backed Securities (continued)
      Principal
Amount 		      Market
Value 		 
 
 
Other (continued)
                 
FPL Recovery Funding LLC, Series 2007-A, Class A1, 5.05%, 02/01/13
  $ 527,895     $ 531,464  
John Deere Owner Trust
Series 2008-A, Class A4,
4.89%, 03/16/15
    3,500,000       3,647,375  
Series 2009-B, Class A2,
0.85%, 03/15/12
    1,651,946       1,652,048  
Series 2009-B, Class A3,
1.57%, 10/15/13
    1,200,000       1,201,315  
Series 2010-A, Class A2,
0.72%, 07/16/12
    3,500,000       3,497,305  
Massachusetts RRB Special Purpose Trust,
Series 2005-1, Class A3,
4.13%, 09/15/13
    2,435,478       2,487,367  
Peco Energy Transition Trust, Series 2001-A, Class A1, 6.52%, 12/31/10
    1,298,387       1,311,423  
PG&E Energy Recovery Funding LLC Series 2005-1, Class A3,
4.14%, 09/25/12
    200,743       202,428  
Series 2005-1, Class A4,
4.37%, 06/25/14
    3,175,000       3,295,096  
Series 2005-2, Class A2,
5.03%, 03/25/14
    3,690,453       3,834,004  
PSE&G Transition Funding LLC, Series 2001-1, Class A5,
6.45%, 03/15/13*
    1,114,593       1,143,890  
Volvo Financial Equipment LLC, Series 2010-1A, Class A2,
1.06%, 06/15/12 (a)
    2,700,000       2,700,794  
                 
              32,470,254  
                 
         
Total Asset-Backed Securities
(cost $107,401,942)
    107,235,330  
         
                 
                 
Collateralized Mortgage Obligations 25.0%
                 
                 
Fannie Mae REMICS, Series 2002-82, Class XD, 5.00%, 07/25/16
    786,482       799,228  
Fannie Mae REMICS, Series 2003-122, Class OK, 4.00%, 06/25/17
    1,493,000       1,553,236  
Fannie Mae REMICS, Series 2003-14, Class AN, 3.50%, 03/25/33
    227,249       234,267  
Fannie Mae REMICS, Series 2003-14, Class KE, 5.00%, 01/25/17
    793,701       807,777  
Fannie Mae REMICS, Series 2003-15, Class WC, 4.00%, 12/25/16
    946,012       959,205  
Fannie Mae REMICS, Series 2003-49, Class TK, 3.50%, 03/25/18
    2,381,430       2,468,935  
Fannie Mae REMICS, Series 2003-57, Class NB, 3.00%, 06/25/18
    228,186       234,036  
Fannie Mae REMICS, Series 2003-67, Class TA, 3.00%, 08/25/17
    1,741,600       1,778,758  
Fannie Mae REMICS, Series 2003-75, Class NB, 3.25%, 08/25/18
    133,916       135,375  
Fannie Mae REMICS, Series 2004-32, Class AB, 4.00%, 10/25/17
    1,365,750       1,411,615  
Fannie Mae REMICS, Series 2004-61, Class AB, 5.00%, 03/25/17
    375,513       377,267  
Fannie Mae REMICS, Series 2004-72, Class JA, 3.50%, 09/25/16
    1,433,520       1,463,018  
Fannie Mae REMICS, Series 2004-80, Class LG, 4.00%, 10/25/16
    390,541       395,613  
Fannie Mae REMICS, Series 2004-96, Class EW, 4.50%, 06/25/24
    570,262       572,528  
Fannie Mae REMICS, Series 2005-91, Class PB, 4.50%, 06/25/16
    269,107       269,864  
Fannie Mae REMICS, Series 2006-33, Class QA, 6.00%, 01/25/29
    1,069,251       1,087,356  
Fannie Mae REMICS, Series 2008-15, Class JM, 4.00%, 02/25/19
    1,190,477       1,242,489  
Fannie Mae REMICS, Series 2008-18, Class MD, 4.00%, 03/25/19
    2,497,049       2,625,922  
Fannie Mae REMICS, Series 2008-70, Class BA, 4.00%, 06/25/21
    2,428,113       2,522,460  
Fannie Mae REMICS, Series 2009-44, Class A, 4.50%, 12/25/23
    2,055,346       2,170,781  
Fannie Mae REMICS, Series 2009-76, Class MA, 4.00%, 09/25/24
    8,087,687       8,512,413  
Fannie Mae REMICS, Series 2009-88, Class EA, 4.50%, 05/25/23
    3,079,393       3,228,789  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Collateralized Mortgage Obligations (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Freddie Mac REMICS, Series 2517, Class OD, 5.00%, 05/15/16
  $ 251,059     $ 251,763  
Freddie Mac REMICS, Series 2555, Class B,
4.25%, 01/15/18
    1,829,785       1,939,395  
Freddie Mac REMICS, Series 2579, Class HA, 3.70%, 08/15/17
    1,066,354       1,097,572  
Freddie Mac REMICS, Series 2611, Class KC,
3.50%, 01/15/17
    167,115       169,355  
Freddie Mac REMICS, Series 2613, Class PA,
3.25%, 05/15/18
    1,592,760       1,633,066  
Freddie Mac REMICS, Series 2614, Class TD,
3.50%, 05/15/16
    1,575,942       1,603,578  
Freddie Mac REMICS, Series 2617, Class UM, 4.00%, 05/15/15
    147,154       147,184  
Freddie Mac REMICS, Series 2625, Class JD,
3.25%, 07/15/17
    952,956       975,535  
Freddie Mac REMICS, Series 2628, Class DQ, 3.00%, 11/15/17
    1,934,935       1,983,971  
Freddie Mac REMICS, Series 2628, Class GQ, 3.14%, 11/15/17
    1,693,068       1,739,703  
Freddie Mac REMICS, Series 2628, Class PV,
3.75%, 10/15/16
    346,437       347,914  
Freddie Mac REMICS, Series 2629, Class AN, 3.50%, 01/15/18
    2,028,560       2,100,835  
Freddie Mac REMICS, Series 2630, Class JA,
3.00%, 06/15/18
    110,863       111,552  
Freddie Mac REMICS, Series 2630, Class KS,
4.00%, 01/15/17
    4,007,561       4,132,037  
Freddie Mac REMICS, Series 2631, Class LB,
4.50%, 03/15/16
    574,664       585,380  
Freddie Mac REMICS, Series 2633, Class PD,
4.50%, 08/15/16
    2,200,000       2,277,740  
Freddie Mac REMICS, Series 2636, Class A,
3.50%, 07/15/17
    1,263,121       1,300,747  
Freddie Mac REMICS, Series 2637, Class A,
3.38%, 03/15/18
    1,175,235       1,215,008  
Freddie Mac REMICS, Series 2640, Class GD, 4.50%, 08/15/17
    3,000,000       3,124,222  
Freddie Mac REMICS, Series 2641, Class KJ,
4.00%, 01/15/18
    1,689,984       1,761,971  
Freddie Mac REMICS, Series 2643, Class HT,
4.50%, 03/15/18
    2,366,147       2,505,122  
Freddie Mac REMICS, Series 2643, Class NT,
4.50%, 03/15/18
    3,151,865       3,332,575  
Freddie Mac REMICS, Series 2663, Class BA,
4.00%, 08/15/16
    1,374,749       1,405,481  
Freddie Mac REMICS, Series 2664, Class GA, 4.50%, 01/15/18
    222,341       227,494  
Freddie Mac REMICS, Series 2668, Class AD, 4.00%, 01/15/15
    275,357       276,178  
Freddie Mac REMICS, Series 2672, Class NF,
4.00%, 12/15/16
    1,974,644       2,032,819  
Freddie Mac REMICS, Series 2786, Class GA, 4.00%, 08/15/17
    2,226,962       2,302,527  
Freddie Mac REMICS, Series 2866, Class XD,
4.00%, 11/15/16
    797,735       808,676  
Freddie Mac REMICS, Series 2877, Class GP,
4.00%, 11/15/18
    1,674,474       1,735,109  
Freddie Mac REMICS, Series 2892, Class UJ,
4.00%, 12/15/11
    5,304       5,304  
Freddie Mac REMICS, Series 3277, Class A,
4.00%, 01/15/21
    1,189,896       1,243,540  
Freddie Mac REMICS, Series 3483, Class FB,
0.49%, 08/15/11 (b)
    526,667       526,548  
Freddie Mac REMICS, Series 3555, Class JA,
4.00%, 12/15/14
    1,821,096       1,888,671  
Freddie Mac REMICS, Series 3573, Class LC,
1.85%, 08/15/14
    2,188,295       2,206,590  
Freddie Mac REMICS, Series 3574, Class AC,
1.85%, 08/15/14
    1,865,120       1,880,701  
Freddie Mac REMICS, Series 3584, Class BL,
1.25%, 10/15/12
    2,034,298       2,046,262  
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Enhanced Income Fund (Continued)
 
                 
Collateralized Mortgage Obligations (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Freddie Mac REMICS, Series 3591, Class NA, 1.25%, 10/15/12
  $ 2,124,752     $ 2,097,643  
Freddie Mac REMICS, Series 3610, Class AB,
1.40%, 12/15/14
    1,738,270       1,744,898  
Government National Mortgage Association, Series 2003-49, Class A, 2.21%, 10/16/17
    1,634,170       1,638,498  
Government National Mortgage Association, Series 2004-103, Class A, 3.88%, 12/16/19
    173,936       173,916  
Residential Funding Mortgage Securities I, Series 2003-S11, Class A1, 2.50%, 06/25/18
    580       579  
                 
         
Total Collateralized Mortgage Obligations (cost $92,884,448)
    93,428,591  
         
                 
                 
Commercial Mortgage Backed Securities 3.0%
                 
Banc of America Commercial Mortgage, Inc., Series 2005-1, Class A3 4.88%, 11/10/42
    1,203,087       1,212,794  
Commercial Mortgage Asset Trust, Series 1999-C1, Class A3 6.64%, 01/17/32
    441,416       441,416  
GE Capital Commercial Mortgage Corp., Series 2004-C2, Class A2 4.12%, 03/10/40
    1,267,106       1,273,716  
GMAC Commercial Mortgage Securities, Inc., Series 2004-C3, Class A3 4.21%, 12/10/41
    435,109       435,323  
Greenwich Capital Commercial Funding Corp. Series 2004-GG1, Class A4,
4.76%, 06/10/36
    804,693       812,361  
Series 2004-GG1, Class A5,
4.88%, 06/10/36
    2,000,000       2,043,196  
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2006-CB16, Class A1 5.34%, 05/12/45
    980,700       993,717  
LB-UBS Commercial Mortgage Trust, Series 2002-C7, Class A3 4.66%, 12/15/26
    1,496,772       1,547,646  
Morgan Stanley Capital I, Series 2004-IQ8, Class A3 4.50%, 06/15/40
    682,756       688,776  
Wachovia Bank Commercial Mortgage Trust
Series 2005-C16, Class A2,
4.38%, 10/15/41
    774,297       789,129  
Series 2005-C17, Class A2,
4.78%, 03/15/42
    1,074,370       1,073,840  
                 
         
Total Commercial Mortgage Backed Securities (cost $11,231,146)
    11,311,914  
         
                 
                 
Corporate Bonds 27.7%
                 
                 
Aerospace & Defense 2.0%
General Dynamics Corp.,
1.80%, 07/15/11
    3,500,000       3,523,674  
Honeywell International, Inc.,
6.13%, 11/01/11
    3,500,000       3,736,278  
                 
              7,259,952  
                 
 
 
Biotechnology 0.7%
Genentech, Inc.,
4.40%, 07/15/10
    2,500,000       2,502,417  
                 
 
 
Capital Markets 2.6%
Bank of New York Mellon Corp. (The)
               
4.95%, 01/14/11
    3,000,000       3,061,872  
0.69%, 06/29/12 (b)
    1,700,000       1,706,706  
Goldman Sachs Group, Inc. (The), 1.63%, 07/15/11
    2,500,000       2,529,380  
Morgan Stanley,
2.90%, 12/01/10
    2,500,000       2,525,480  
                 
              9,823,438  
                 
 
 
Commercial Banks 6.0%
Bank of America NA,
1.70%, 12/23/10
    2,500,000       2,515,598  
BNP Paribas,
0.93%, 04/08/13 (b)
    3,500,000       3,411,685  
Rabobank Nederland NV, 0.55%, 08/05/11 (a) (b)
    3,500,000       3,496,017  
State Street Bank and Trust
Co., 1.85%, 03/15/11
    2,500,000       2,525,995  
US Bank NA, 6.38%, 08/01/11
    1,342,000       1,416,896  
Wells Fargo & Co.
               
5.30%, 08/26/11
    2,500,000       2,596,647  
3.00%, 12/09/11
    3,000,000       3,100,746  
Westpac Banking Corp.,
1.08%, 04/08/13 (a) (b)
    3,500,000       3,471,562  
                 
              22,535,146  
                 
 
 
Communications Equipment 0.7%
Cisco Systems, Inc.,
5.25%, 02/22/11
    2,500,000       2,567,978  
                 
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Corporate Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
                 
Computers & Peripherals 0.6%
Hewlett-Packard Co.
               
1.59%, 05/27/11 (b)
  $ 350,000     $ 353,352  
2.25%, 05/27/11
    2,000,000       2,027,658  
                 
              2,381,010  
 
 
Diversified Financial Services 8.2%
Bank of America Corp.,
5.38%, 08/15/11
    2,500,000       2,597,528  
Citigroup Funding, Inc.,
0.44%, 07/30/10 (b)
    2,500,000       2,500,615  
General Electric Capital Corp., Series A, 6.13%, 02/22/11
    500,000       516,069  
General Electric Capital Corp.
               
1.80%, 03/11/11
    2,500,000       2,524,200  
5.00%, 11/15/11
    3,000,000       3,142,962  
HSBC Finance Corp., 6.38%, 10/15/11
    2,825,000       2,952,309  
John Deere Capital Corp., 7.00%, 03/15/12
    3,100,000       3,404,076  
John Hancock Global Funding II, 7.90%, 07/02/10 (a)
    1,500,000       1,500,000  
JPMorgan Chase & Co.
               
2.63%, 12/01/10
    2,500,000       2,523,022  
5.60%, 06/01/11
    2,520,000       2,624,996  
National Rural Utilities Cooperative Finance Corp., 4.38%, 10/01/10
    2,500,000       2,520,965  
Western Union Co. (The), 5.40%, 11/17/11
    3,500,000       3,689,297  
                 
              30,496,039  
                 
 
 
Diversified Telecommunication Services 1.5%
AT&T Corp., 7.30%, 11/15/11
    2,690,000       2,907,656  
Verizon Global Funding Corp., 7.25%, 12/01/10
    2,750,000       2,824,415  
                 
              5,732,071  
                 
 
 
Food & Staples Retailing 1.2%
Costco Wholesale Corp., 5.30%, 03/15/12
    2,400,000       2,572,296  
Wal-Mart Stores, Inc.,
4.13%, 02/15/11
    1,795,000       1,830,925  
                 
              4,403,221  
                 
 
 
Food Products 0.7%
Unilever Capital Corp.,
7.13%, 11/01/10
    2,500,000       2,552,900  
                 
Insurance 1.2%
Berkshire Hathaway, Inc., 1.40%, 02/10/12
    3,500,000       3,518,158  
New York Life Global Funding, 4.63%, 08/16/10 (a)
    1,000,000       1,003,013  
                 
              4,521,171  
                 
Personal Products 0.9%
Procter & Gamble International Funding SCA,
1.35%, 08/26/11
    3,500,000       3,524,623  
                 
 
 
Pharmaceuticals 0.7%
Pfizer, Inc., 2.49%, 03/15/11 (b)
    2,500,000       2,535,235  
                 
 
 
Software 0.7%
Oracle Corp., 5.00%, 01/15/11
    2,500,000       2,552,390  
                 
         
Total Corporate Bonds (cost $103,192,547)
    103,387,591  
         
                 
                 
U.S. Government Mortgage Backed Agencies 0.9%
                 
                 
Fannie Mae Pool
Pool# 253845
6.00%, 06/01/16
    58,020       63,138  
Pool# 254089
6.00%, 12/01/16
    92,248       100,384  
Pool# 545415
6.00%, 01/01/17
    83,332       90,682  
Pool# 254195
5.50%, 02/01/17
    193,173       209,125  
Pool# 625178
5.50%, 02/01/17
    161,713       175,068  
Freddie Mac Gold Pool
Pool# E00678
6.50%, 06/01/14
    32,045       34,043  
Pool# B17493
4.00%, 12/01/14
    2,421,871       2,494,500  
Pool# E00991
6.00%, 07/01/16
    46,553       50,306  
                 
         
Total U.S. Government Mortgage Backed Agencies (cost $3,167,280)
    3,217,246  
         
                 
                 
Sovereign Bonds 2.5%
                 
                 
CANADA 0.9%
Province of Ontario Canada, 2.75%, 02/22/11
    3,500,000       3,543,232  
                 
 
 
SUPRANATIONAL 1.6%
African Development Bank, 0.79%, 03/23/11 (b)
    2,300,000       2,296,304  
Asian Development Bank, 4.13%, 09/15/10
    1,000,000       1,007,337  
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Enhanced Income Fund (Continued)
 
                 
Sovereign Bonds (continued)
      Principal
Amount 		      Market
Value 		 
 
 
SUPRANATIONAL (continued)
                 
International Bank for Reconstruction & Development,
0.71%, 03/04/11 (b)
  $ 2,500,000     $ 2,503,687  
                 
              5,807,328  
                 
         
Total Sovereign Bonds (cost $9,355,067)
    9,350,560  
         
                 
                 
U.S. Government Sponsored & Agency Obligations 1.8%
                 
Fannie Mae
               
1.75%, 03/23/11
    3,000,000       3,029,235  
1.38%, 04/28/11
    3,500,000       3,527,829  
                 
         
Total U.S. Government Sponsored & Agency Obligations (cost $6,539,873)
    6,557,064  
         
                 
                 
U.S. Treasury Notes 4.2%
                 
                 
U.S. Treasury Note
               
0.88%, 01/31/12
    3,500,000       3,518,592  
1.00%, 09/30/11
    5,000,000       5,034,375  
1.13%, 01/15/12
    7,000,000       7,066,444  
                 
         
Total U.S. Treasury Notes (cost $15,578,375)
    15,619,411  
         
                 
                 
Yankee Dollar 0.5%
                 
                 
Health Care Providers & Services 0.5%
Baxter FinCo BV,
4.75%, 10/15/10
    2,000,000       2,023,556  
                 
         
Total Yankee Dollar (cost $2,020,345)
    2,023,556  
         
                 
                 
Mutual Fund 5.0%
                 
      Shares       Market
Value 		 
 
 
Money Market Fund 5.0%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    18,562,791     $ 18,562,791  
                 
         
Total Mutual Fund (cost $18,562,791)
    18,562,791  
         
         
Total Investments
(cost $369,933,814) (d) — 99.4%
    370,694,054  
Other assets in excess of liabilities — 0.6%
    2,153,996  
         
         
NET ASSETS — 100.0%
  $ 372,848,050  
         
 
* Denotes a non-income producing security.
 
(a) Rule 144A, Section 4(2), or other security which is restricted as to sale to institutional investors. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees. The aggregate value of these securities at June 30, 2010 was $18,172,933 which represents 4.87% of net assets.
 
(b) Variable Rate Security. The rate reflected in the Statement of Investments is the rate in effect on June 30, 2010. The maturity date represents the actual maturity date.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
BV Private Limited Liability Company
 
LLC Limited Liability Company
 
NA National Association
 
NV Public Traded Company
 
REMICS Real Estate Mortgage Investment Conduits
 
SCA Limited partnership with share capital
 
 
 
10 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Enhanced
 		 
      Income Fund  
       
Assets:
         
Investments, at value (cost $369,933,814)
    $ 370,694,054  
Interest and dividends receivable
      1,750,343  
Receivable for capital shares issued
      570,591  
Prepaid expenses and other assets
      3,654  
           
Total Assets
      373,018,642  
           
Liabilities:
         
Accrued expenses and other payables:
         
Investment advisory fees
      106,377  
Fund administration fees
      13,377  
Accounting and transfer agent fees
      11,087  
Custodian fees
      1,487  
Compliance program costs (Note 3)
      1,622  
Professional fees
      15,574  
Printing fees
      18,702  
Other
      2,366  
           
Total Liabilities
      170,592  
           
Net Assets
    $ 372,848,050  
           
Represented by:
         
Capital
    $ 374,889,487  
Accumulated net investment loss
      (110,542 )
Accumulated net realized losses from investment transactions
      (2,691,135 )
Net unrealized appreciation/(depreciation) from investments
      760,240  
           
Net Assets
    $ 372,848,050  
           
Net Assets:
         
Class Y Shares
    $ 372,848,050  
           
Total
    $ 372,848,050  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class Y Shares
      37,437,004  
           
Total
      37,437,004  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class Y Shares
    $ 9.96  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Enhanced
 		 
      Income Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 4,037,922  
Dividend income
      17,410  
           
Total Income
      4,055,332  
           
EXPENSES:
         
Investment advisory fees
      631,286  
Fund administration fees
      70,465  
Professional fees
      23,659  
Printing fees
      9,684  
Trustee fees
      6,408  
Custodian fees
      6,584  
Accounting and transfer agent fees
      11,193  
Compliance program costs (Note 3)
      779  
Other
      8,784  
           
Total expenses before earnings credits
      768,842  
Earnings credit (Note 4)
      (34 )
           
Net Expenses
      768,808  
           
NET INVESTMENT INCOME
      3,286,524  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (663,203 )
Net change in unrealized appreciation/(depreciation) from investments
      (154,749 )
           
Net realized/unrealized losses from investments
      (817,952 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 2,468,572  
           
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Enhanced Income Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 3,286,524       $ 6,185,269  
Net realized losses from investment transactions
      (663,203 )       (203,760 )
Net change in unrealized appreciation/(depreciation) from investments
      (154,749 )       747,231  
                     
Change in net assets resulting from operations
      2,468,572         6,728,740  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class Y
      (3,767,133 )       (6,832,423 )
                     
Change in net assets from shareholder distributions
      (3,767,133 )       (6,832,423 )
                     
Change in net assets from capital transactions
      17,346,953         125,317,577  
                     
Change in net assets
      16,048,392         125,213,894  
                     
                     
Net Assets:
                   
Beginning of period
      356,799,658         231,585,764  
                     
End of period
    $ 372,848,050       $ 356,799,658  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (110,542 )     $ 370,067  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class Y Shares
                   
Proceeds from shares issued
    $ 20,092,532       $ 167,165,809  
Dividends reinvested
      3,767,133         6,832,423  
Cost of shares redeemed
      (6,512,712 )       (48,680,655 )
                     
Total Class Y
      17,346,953         125,317,577  
                     
Change in net assets from capital transactions
    $ 17,346,953       $ 125,317,577  
                     
                     
SHARE TRANSACTIONS:
                   
Class Y Shares
                   
Issued
      2,009,277         16,669,616  
Reinvested
      377,794         682,197  
Redeemed
      (651,171 )       (4,858,485 )
                     
Total Class Y Shares
      1,735,900         12,493,328  
                     
Total change in shares
      1,735,900         12,493,328  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Enhanced Income Fund
 
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                        Net
 		    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover    
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (d)
  $ 9 .99       0 .09       (0 .02)       0 .07       (0 .10)       –          (0 .10)     $ 9 .96       0 .73%     $ 372,848,050         0 .43%       1 .82%       0 .43%       31 .41%    
Year Ended December 31, 2009 (d)
  $ 9 .98       0 .23       0 .04       0 .27       (0 .26)       –          (0 .26)     $ 9 .99       2 .70%     $ 356,799,658         0 .44%       2 .33%       0 .44%       64 .05%    
Year Ended December 31, 2008
  $ 10 .04       0 .38       (0 .07)       0 .31       (0 .36)       (0 .01)       (0 .37)     $ 9 .98       3 .12%     $ 231,585,764         0 .45%       3 .81%       0 .45%       75 .76%    
Period Ended December 31, 2007 (e)
  $ 10 .00       0 .34       0 .03       0 .37       (0 .33)       –          (0 .33)     $ 10 .04       3 .69%     $ 198,744,378         0 .43%       4 .79%       0 .43%       55 .71%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(d)  Per share calculations were performed using average shares method.
(e)  For the period from April 20, 2007 (commencement of operations) through December 31, 2007.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
14 Semiannual Report 2010

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds”, the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Enhanced Income Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operates as Fund-of-Funds, such as NVIT Investor Destinations Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) were valued at the mean price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. On May 21, 2010, debt and other fixed-income securities (other than short-term obligations) were valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
service (which reflects such factors as security prices, yields, maturities, ratings and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Asset-Backed Securities
  $ —     $ 107,235,330     $ —     $ 107,235,330      
 
 
Collateralized Mortgage Obligations
    —       93,428,591       —       93,428,591      
 
 
Commercial Mortgage Backed Securities
    —       11,311,914       —       11,311,914      
 
 
Corporate Bonds
    —       103,387,591       —       103,387,591      
 
 
Mutual Fund
    18,562,791       —       —       18,562,791      
 
 
Sovereign Bonds
    —       9,350,560       —       9,350,560      
 
 
U.S. Government Mortgage Backed Agencies
    —       3,217,246       —       3,217,246      
 
 
U.S. Government Sponsored & Agency Obligations
    —       6,557,064       —       6,557,064      
 
 
U.S. Treasury Notes
    —       15,619,411       —       15,619,411      
 
 
 
 
 
16 Semiannual Report 2010

 

 
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Yankee Dollar
    —       2,023,556       —       2,023,556      
 
 
Total Assets
  $ 18,562,791     $ 352,131,263     $ —     $ 370,694,054      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2007 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2007 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is not aware
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. NFA has selected Morley Capital Management, Inc. (“Morley”) as subadviser for the Fund and provides investment management evaluation services in monitoring, on an ongoing basis, the performance of Morley.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $500 million     0.35%      
 
 
    $500 million up to $1 billion     0.34%      
 
 
    $1 billion up to $3 billion     0.325%      
 
 
    $3 billion up to $5 billion     0.30%      
 
 
    $5 billion up to $10 billion     0.285%      
 
 
    $10 billion and more     0.275%      
 
 
 
From these fees, pursuant to the subadvisory agreement, NFA pays fees to the Subadviser. NFA paid the Subadviser $180,367 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.45% for Class Y shares until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees.
 
 
 
18 Semiannual Report 2010

 

 
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                         
Period Ended
 		                   
December 31,
 		  Fiscal Year
 		  Fiscal Year
 		  Six Months Ended
 		       
2007 Amount (a)   2008 Amount   2009 Amount   June 30, 2010   Total    
 
$ —     $ 6,853     $ —     $ —     $ 6,853      
 
 
(a) For the period April 20, 2007 (commencement of operations) to December 31, 2007.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to the NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced Fund, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative, and the NVIT Cardinal Balanced Fund were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $779.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $144,376,738 and sales of $106,893,753 (excluding short-term securities).
 
For the six months ended June 30, 2010, the Fund had purchases of $10,573,008 and sales of $15,000,000 of U.S. Government securities.
 
6. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
 
 
20 Semiannual Report 2010

 

 
 
7. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 369,933,860     $ 1,312,997     $ (552,803)     $ 760,194      
 
 
 
8. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 21

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
22 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Enhanced Income Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and Morley Capital Management, Inc. (“Morley Capital”), the Fund’s sub-adviser, and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that the Fund’s performance for Class Y shares for the one- and two-year periods ended September 30, 2009 was in the fourth quintile of its Peer Group, but above the performance of the Fund’s benchmark, which is a 50%/50% blend of the Merrill Lynch 6-Month Treasury Bill Index and the Merrill Lynch 1-Year Treasury Note Index. The Trustees also noted that the Fund’s performance for Class Y shares for the two-year period ended September 30, 2009 was in the third quintile of its Peer Group and above the performance of the Fund’s benchmark. The Trustees noted that the Fund’s relatively short performance history may not be a reliable indicator of the Fund’s performance over longer periods. As was the case upon initial approval of Morely Capital, the Trustees took into consideration Morely Capital’s performance and services over longer periods regarding the management of comparable accounts.
 
The Trustees then noted that the Fund’s contractual advisory fee and actual advisory fee for Class Y shares were in the third quintile and lower than the median of its Peer Group, and that the Fund’s total expenses were in the second quintile of its Peer Group. The Trustees also noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees). The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 23

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 25

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
26 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 27

 

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NVIT Investor Destinations Aggressive Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-AG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Aggressive Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Investor Destinations Aggressive Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       927.70       2.72       0.57  
      Hypothetical c     1,000.00       1,021.97       2.86       0.57  
 
 
Class VI Shares
    Actual       1,000.00       927.20       2.72       0.57  
      Hypothetical c     1,000.00       1,021.97       2.86       0.57  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Aggressive Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    94 .4%
Fixed Income Fund
    5 .7%
Liabilities in excess of other assets
    (0 .1)%
         
      100 .0%
         
Top Holdings †    
 
NVIT S&P 500 Index Fund, Class Y
    40 .0%
NVIT International Index Fund, Class Y
    22 .9%
NVIT Mid Cap Index Fund, Class Y
    15 .8%
NVIT Small Cap Index Fund, Class Y
    10 .6%
NVIT Bond Index Fund, Class Y
    5 .7%
Nationwide International Index Fund, Institutional Class
    5 .0%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Aggressive Fund
 
                 
                 
Mutual Funds 100.1%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 94.4%
Nationwide International Index Fund, Institutional Class (a)
    3,438,065     $ 20,662,770  
NVIT International Index Fund, Class Y (a)
    13,638,708       94,516,247  
NVIT Mid Cap Index Fund, Class Y (a)
    4,519,754       65,491,241  
NVIT S&P 500 Index Fund, Class Y (a)
    23,066,182       165,153,861  
NVIT Small Cap Index Fund, Class Y (a)
    5,975,087       43,857,136  
                 
         
Total Equity Funds
(cost $517,640,452)
    389,681,255  
         
 
 
Fixed Income Fund 5.7%
NVIT Bond Index Fund, Class Y (a)
    2,220,295       23,401,907  
                 
         
Total Fixed Income Fund
(cost $22,359,984)
    23,401,907  
         
         
Total Mutual Funds
(cost $540,000,436)
    413,083,162  
         
         
Total Investments (cost $540,000,436) (b) — 100.1%
    413,083,162  
         
Liabilities in excess of other assets — (0.1)%
    (253,701 )
         
         
NET ASSETS — 100.0%
  $ 412,829,461  
         
 
(a) Investment in affiliate.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Aggressive Fund  
       
Assets:
         
Investments in affiliates, at value (cost $540,000,436)
    $ 413,083,162  
Cash
      56  
Receivable for investments sold
      2,646,596  
Receivable for capital shares issued
      32,550  
Prepaid expenses and other assets
      4,677  
           
Total Assets
      415,767,041  
           
Liabilities:
         
Payable for capital shares redeemed
      2,679,146  
Accrued expenses and other payables:
         
Investment advisory fees
      46,682  
Fund administration fees
      11,728  
Distribution fees
      89,774  
Administrative servicing fees
      57,756  
Accounting and transfer agent fees
      2,923  
Trustee fees
      350  
Custodian fees
      3,139  
Compliance program costs (Note 3)
      2,428  
Professional fees
      18,633  
Printing fees
      17,301  
Other
      7,720  
           
Total Liabilities
      2,937,580  
           
Net Assets
    $ 412,829,461  
           
Represented by:
         
Capital
    $ 574,879,816  
Accumulated undistributed net investment income
      20,265  
Accumulated net realized losses from investment transactions with affiliates
      (35,153,346 )
Net unrealized appreciation/(depreciation) from investments in affiliates
      (126,917,274 )
           
Net Assets
    $ 412,829,461  
           
Net Assets:
         
Class II Shares
    $ 408,297,795  
Class VI Shares
      4,531,666  
           
Total
    $ 412,829,461  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      54,183,363  
Class VI Shares
      604,622  
           
Total
      54,787,985  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 7.54  
Class VI Shares
    $ 7.50  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Aggressive Fund  
       
INVESTMENT INCOME:
         
Dividend income from affiliates
    $ 4,161,049  
           
Total Income
      4,161,049  
           
EXPENSES:
         
Investment advisory fees
      307,598  
Fund administration fees
      24,200  
Distribution fees Class II Shares
      583,090  
Distribution fees Class VI Shares
      8,451  
Administrative servicing fees Class II Shares
      349,856  
Administrative servicing fees Class VI Shares
      5,071  
Professional fees
      25,802  
Printing fees
      5,978  
Trustee fees
      8,545  
Custodian fees
      9,544  
Accounting and transfer agent fees
      3,499  
Compliance program costs (Note 3)
      905  
Other
      11,671  
           
Total expenses before earnings credits
      1,344,210  
Earnings credit (Note 6)
      (1 )
           
Net Expenses
      1,344,209  
           
NET INVESTMENT INCOME
      2,816,840  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions with affiliates
      (22,736,958 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (12,435,563 )
           
Net realized/unrealized losses from affiliated investments
      (35,172,521 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (32,355,681 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Investor Destinations
 		 
      Aggressive Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 2,816,840       $ 8,055,906  
Net realized losses from investment transactions with affiliates
      (22,736,958 )       (42,731,298 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (12,435,563 )       146,666,370  
                     
Change in net assets resulting from operations
      (32,355,681 )       111,990,978  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (5,937,366 )       (4,778,905 )
Class VI
      (89,631 )       (55,639 )
Net realized gains:
                   
Class II
      –         (25,084,487 )
Class VI
      –         (276,769 )
                     
Change in net assets from shareholder distributions
      (6,026,997 )       (30,195,800 )
                     
Change in net assets from capital transactions
      (44,164,138 )       (31,739,342 )
                     
Change in net assets
      (82,546,816 )       50,055,836  
                     
                     
Net Assets:
                   
Beginning of period
      495,376,277         445,320,441  
                     
End of period
    $ 412,829,461       $ 495,376,277  
                     
Accumulated undistributed net investment income at end of period
    $ 20,265       $ 3,230,422  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 6,316,507       $ 15,467,225  
Dividends reinvested
      5,937,366         29,863,392  
Cost of shares redeemed
      (53,776,261 )       (77,952,892 )
                     
Total Class II
      (41,522,388 )       (32,622,275 )
                     
Class VI Shares
                   
Proceeds from shares issued
      843,714         3,264,934  
Dividends reinvested
      89,631         332,408  
Cost of shares redeemed
      (3,575,095 )       (2,714,409 )
                     
Total Class VI
      (2,641,750 )       882,933  
                     
Change in net assets from capital transactions
    $ (44,164,138 )     $ (31,739,342 )
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      748,893         2,209,815  
Reinvested
      710,277         3,844,811  
Redeemed
      (6,529,250 )       (10,639,793 )
                     
Total Class II Shares
      (5,070,080 )       (4,585,167 )
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations
 		 
      Aggressive Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Issued
      103,354         435,551  
Reinvested
      10,726         43,157  
Redeemed
      (427,551 )       (390,100 )
                     
Total Class VI Shares
      (313,471 )       88,608  
                     
Total change in shares
      (5,383,551 )       (4,496,559 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Aggressive Fund
 
                                                                                                                                                         
          Operations     Distributions                       Ratios / Supplemental Data          
     
                Net Realized
 		                                                                Ratio of
 		         
                and
 		                                                          Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                    Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class II Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .23       0 .05       (0 .63)       (0 .58)       (0 .11)       –          (0 .11)       –       $ 7 .54       (7 .23%)     $ 408,297,795         0 .57%       1 .19%       0 .57%       2 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .89       0 .13       1 .71       1 .84       (0 .08)       (0 .42)       (0 .50)       –       $ 8 .23       27 .21%     $ 487,859,620         0 .57%       1 .79%       0 .57%       11 .13%    
Year Ended December 31, 2008
  $ 13 .60       0 .19       (4 .68)       (4 .49)       (0 .23)       (1 .99)       (2 .22)       –       $ 6 .89       (36 .84%)     $ 439,636,912         0 .57%       1 .67%       0 .57%       21 .38%    
Year Ended December 31, 2007
  $ 13 .51       0 .22       0 .59       0 .81       (0 .27)       (0 .45)       (0 .72)       –       $ 13 .60       5 .96%     $ 762,322,072         0 .56%       1 .60%       0 .56%       76 .72%    
Year Ended December 31, 2006
  $ 11 .97       0 .20       1 .78       1 .98       (0 .26)       (0 .18)       (0 .44)       –       $ 13 .51       16 .87%     $ 727,598,847         0 .57%       1 .56%       0 .57%       7 .82%    
Year Ended December 31, 2005
  $ 11 .52       0 .22       0 .68       0 .90       (0 .22)       (0 .23)       (0 .45)       –       $ 11 .97       7 .93%     $ 577,843,437         0 .56%       2 .04%       0 .56%       9 .12%    
                                                                                                                                                         
Class VI Shares
                                                                                                                                                       
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .19       0 .04       (0 .63)       (0 .59)       (0 .10)       –          (0 .10)       –       $ 7 .50       (7 .28%)     $ 4,531,666         0 .57%       1 .08%       0 .57%       2 .90%    
Year Ended December 31, 2009 (e)
  $ 6 .85       0 .14       1 .70       1 .84       (0 .08)       (0 .42)       (0 .50)       –       $ 8 .19       27 .37%     $ 7,516,657         0 .57%       1 .89%       0 .57%       11 .13%    
Year Ended December 31, 2008
  $ 13 .54       0 .19       (4 .66)       (4 .47)       (0 .23)       (1 .99)       (2 .22)       –       $ 6 .85       (36 .89%)     $ 5,683,529         0 .57%       1 .55%       0 .57%       21 .38%    
Year Ended December 31, 2007
  $ 13 .47       0 .24       0 .57       0 .81       (0 .29)       (0 .45)       (0 .74)       –       $ 13 .54       5 .97%     $ 13,867,714         0 .55%       1 .80%       0 .55%       76 .72%    
Year Ended December 31, 2006
  $ 11 .96       0 .20       1 .77       1 .97       (0 .28)       (0 .18)       (0 .46)       –       $ 13 .47       16 .92%     $ 11,389,154         0 .56%       1 .72%       0 .56%       7 .82%    
Year Ended December 31, 2005
  $ 11 .52       0 .23       0 .68       0 .91       (0 .24)       (0 .23)       (0 .47)       –       $ 11 .96       7 .95%     $ 7,302,958         0 .51%       3 .82%       0 .51%       9 .12%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Aggressive Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
 
 
12 Semiannual Report 2010

 

 
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
NVIT Investor Destinations Aggressive Fund
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Mutual Funds
  $ 413,083,162     $ —     $ —     $ 413,083,162      
 
 
Total Assets
  $ 413,083,162     $ —     $ —     $ 413,083,162      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net
 
 
 
14 Semiannual Report 2010

 

 
 
asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.13%      
 
 
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI of the Fund.
 
For the six months ended June 30, 2010, NFS received $354,927 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $905.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
Nationwide International Index Fund — Class Y
  $ 32,969,321     $ 7,211,977     $ 16,202,314     $ 211,977     $ (9,508,765 )   $ 20,662,770      
 
 
NVIT Bond Index
Fund — Class Y
    24,752,349       581,680       2,700,386       459,632       99,221       23,401,907      
 
 
NVIT International Index Fund — Class Y
    117,107,982       1,720,009       7,000,000       987,720       (3,315,771 )     94,516,247      
 
 
NVIT Mid Cap Index Fund — Class Y
    73,836,318       913,095       8,101,157       546,950       (2,299,595 )     65,491,241      
 
 
NVIT S&P 500 Index Fund — Class Y
    197,343,227       2,610,516       21,603,086       1,634,131       (6,314,056 )     165,153,861      
 
 
NVIT Small Cap Index Fund — Class Y
    49,652,187       564,736       5,400,771       320,639       (1,397,992 )     43,857,136      
 
 
 
5. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $488.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $39.
 
 
 
16 Semiannual Report 2010

 

 
 
6. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
7. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $13,602,013 and sales of $61,007,714 (excluding short-term securities).
 
8. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies.  Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk.  The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
9. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
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 Trust’s 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.
 
10. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 563,616,086     $ 851,183     $ (151,384,107 )   $ (150,532,924 )    
 
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
11. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Aggressive Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning first to performance, the Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fourth quintile of its Peer Universe. The Trustees noted, however, that the Fund outperformed its benchmark, which is a 95%/5% blend of the S&P 500® Index and the Barclays Capital U.S. Aggregate Bond Index. The Trustees noted that, for the three-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the third quintile, but below the median of its Peer Universe. The Trustees then noted that, for the five-year period ended September 30, 2009, the Fund was in the fifth quintile of its Peer Universe. The Trustees also noted that, with respect to each of the three- and five-year periods ended September 30, 2009, the Fund outperformed its benchmark.
 
Turning next to expenses, the Trustees noted that the Fund’s actual advisory fee for Class II shares was in the fourth quintile of its Peer Universe, but that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Investor Destinations Balanced Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-BAL (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Balanced Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Investor
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Destinations Balanced Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       979.00       2.90       0.59  
      Hypothetical c     1,000.00       1,021.87       2.96       0.59  
 
 
Class VI Sharesd
    Actual       1,000.00       940.50       2.55       0.53  
      Hypothetical c     1,000.00       1,022.17       2.66       0.53  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
d For the period from April 30, 2010 (Commencement of operations) through June 30, 2010.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Balanced Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    47 .5%
Fixed Income Funds
    39 .6%
Fixed Contract
    7 .5%
Money Market Fund
    5 .3%
Other assets in excess of liabilities
    0 .1%
         
      100 .0%
         
Top Holdings †    
 
NVIT Bond Index Fund, Class Y
    32 .0%
NVIT S&P 500 Index Fund, Class Y
    23 .9%
NVIT International Index Fund, Class Y
    10 .9%
NVIT Mid Cap Index Fund, Class Y
    9 .8%
NVIT Enhanced Income Fund, Class Y
    7 .6%
Nationwide Fixed Contract
    7 .5%
NVIT Money Market Fund, Class Y
    5 .3%
NVIT Small Cap Index Fund, Class Y
    3 .0%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Balanced Fund
 
                 
Mutual Funds 92.4%
                 
      Shares       Market
Value 		 
 
 
                 
                 
Equity Funds 47.5%
NVIT International Index Fund, Class Y (a)
    1,996,835     $ 13,838,063  
NVIT Mid Cap Index Fund, Class Y (a)
    855,906       12,402,078  
NVIT S&P 500 Index Fund, Class Y (a)
    4,226,207       30,259,644  
NVIT Small Cap Index Fund, Class Y (a)
    509,853       3,742,322  
                 
         
Total Equity Funds (cost $63,729,124)
    60,242,107  
         
 
 
Fixed Income Funds 39.6%
NVIT Bond Index Fund, Class Y (a)
    3,836,952       40,441,473  
NVIT Enhanced Income Fund, Class Y (a)
    972,175       9,682,861  
                 
         
Total Fixed Income Funds (cost $49,391,834)
    50,124,334  
         
 
 
Money Market Fund 5.3%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    6,679,690       6,679,690  
                 
         
Total Money Market Fund (cost $6,679,690)
    6,679,690  
         
         
Total Mutual Funds (cost $119,800,648)
    117,046,131  
         
                 
                 
Fixed Contract 7.5%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Nationwide Fixed Contract, 3.6% (a) (c)
  $ 9,531,550     $ 9,531,550  
                 
         
Total Fixed Contract (cost $9,531,550)
    9,531,550  
         
         
Total Investments (cost $129,332,198) (d) — 99.9%
    126,577,681  
         
Other assets in excess of liabilities — 0.1%
    158,251  
         
         
NET ASSETS — 100.0%
  $ 126,735,932  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
    Balanced Fund  
       
Assets:
         
Investments in affiliates, at value (cost $129,332,198)
    $ 126,577,681  
Receivable for capital shares issued
      3,240,336  
Prepaid expenses and other assets
      1,414  
           
Total Assets
      129,819,431  
           
Liabilities:
         
Payable for investments purchased
      3,013,354  
Payable for capital shares redeemed
      171  
Accrued expenses and other payables:
         
Investment advisory fees
      12,695  
Fund administration fees
      5,347  
Distribution fees
      24,413  
Administrative servicing fees
      14,178  
Accounting and transfer agent fees
      1,155  
Compliance program costs (Note 3)
      397  
Professional fees
      4,727  
Printing fees
      6,719  
Other
      343  
           
Total Liabilities
      3,083,499  
           
Net Assets
    $ 126,735,932  
           
Represented by:
         
Capital
    $ 129,288,974  
Accumulated net investment loss
      (1,629 )
Accumulated net realized gains from investment transactions with affiliates
      203,104  
Net unrealized appreciation/(depreciation) from investments in affiliates
      (2,754,517 )
           
Net Assets
    $ 126,735,932  
           
Net Assets:
         
Class II Shares
    $ 126,572,179  
Class VI Shares
      163,753  
           
Total
    $ 126,735,932  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      10,852,245  
Class VI Shares
      14,050  
           
Total
      10,866,295  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 11.66  
Class VI Shares
    $ 11.66  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
    Balanced Fund  
       
INVESTMENT INCOME:
         
Interest income from affiliates
    $ 123,634  
Dividend income from affiliates
      1,117,855  
           
Total Income
      1,241,489  
           
EXPENSES:
         
Investment advisory fees
      59,113  
Fund administration fees
      11,001  
Distribution fees Class II Shares
      113,642  
Distribution fees Class VI Shares  (a)
      39  
Administrative servicing fees Class II Shares
      68,185  
Professional fees
      7,288  
Printing fees
      5,848  
Trustee fees
      1,612  
Custodian fees
      1,085  
Accounting and transfer agent fees
      964  
Compliance program costs (Note 3)
      194  
Other
      2,309  
           
Total Expenses
      271,280  
           
NET INVESTMENT INCOME
      970,209  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions with affiliates
      203,116  
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (4,682,860 )
           
Net realized/unrealized losses from affiliated investments
      (4,479,744 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (3,509,535 )
           
 
 
(a) For the period from April 30, 2010 (Commencement of Operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Investor Destinations
 		 
      Balanced Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a) 
 		 
Operations:
                   
Net investment income
    $ 970,209       $ 503,425  
Net realized gains from investment transactions with affiliates
      203,116         504,086  
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (4,682,860 )       1,928,343  
                     
Change in net assets resulting from operations
      (3,509,535 )       2,935,854  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (974,107 )       (508,128 )
Class VI (b)
      (720 )       –  
Net realized gains:
                   
Class II
      (90,851 )       (407,058 )
Class VI (b)
      (106 )       –  
                     
Change in net assets from shareholder distributions
      (1,065,784 )       (915,186 )
                     
Change in net assets from capital transactions
      69,759,625         59,530,958  
                     
Change in net assets
      65,184,306         61,551,626  
                     
                     
Net Assets:
                   
Beginning of period
      61,551,626         –  
                     
End of period
    $ 126,735,932       $ 61,551,626  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (1,629 )     $ 2,989  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 71,253,661       $ 60,155,263  
Dividends reinvested
      1,064,958         915,186  
Cost of shares redeemed
      (2,728,163 )       (1,539,491 )
                     
Total Class II
      69,590,456         59,530,958  
                     
Class VI Shares (b)
                   
Proceeds from shares issued
      168,535         –  
Dividends reinvested
      826         –  
Cost of shares redeemed
      (192 )       –  
                     
Total Class VI
      169,169         –  
                     
Change in net assets from capital transactions
    $ 69,759,625       $ 59,530,958  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      5,870,791         5,169,381  
Reinvested
      87,931         76,381  
Redeemed
      (223,896 )       (128,344 )
                     
Total Class II Shares
      5,734,826         5,117,418  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
(a)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
(b)  For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations
 		 
      Balanced Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Period Ended
 		 
      (Unaudited)       December 31, 2009 (a) 
 		 
                     
SHARE TRANSACTIONS: (continued)
                   
Class VI Shares (b)
                   
Issued
      13,997         –  
Reinvested
      69         –  
Redeemed
      (16 )       –  
                     
Total Class VI Shares
      14,050         –  
                     
Total change in shares
      5,748,876         5,117,418  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
(a) For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
(b)  For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Balanced Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
    Net Asset
 		          and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Value,
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Beginning
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    of
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
  Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .03       0 .13       (0 .38)       (0 .25)       (0 .11)       (0 .01)       (0 .12)     $ 11 .66       (2 .10%)     $ 126,572,179         0 .59%       2 .12%       0 .59%       2 .23%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .27       2 .04       2 .31       (0 .19)       (0 .09)       (0 .28)     $ 12 .03       23 .15%     $ 61,551,626         0 .66%       2 .94%       0 .75%       14 .53%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Period Ended June 30, 2010 (e) (g)
  $ 12 .47       0 .09       (0 .83)       (0 .74)       (0 .06)       (0 .01)       (0 .07)     $ 11 .66       (5 .95%)     $ 163,753         0 .53%       4 .39%       0 .53%       2 .23%    
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
(g)  For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Balanced Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Fund also invests in a non-registered Fixed Interest Contract (“Nationwide Fixed Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”).
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and
 
 
 
12 Semiannual Report 2010

 

 
 
dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
The Fund 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 the Fund a fixed rate of interest. The fixed interest rate is a minimum of 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the six months ended June 30, 2010, the rate ranged from 3.60% to 3.70%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions the Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed Contact should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously, under most circumstances, the Nationwide Fixed Contact is valued at par each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day’s net purchase or redemption.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Fixed Contract
  $ —     $ 9,531,550     $      —     $ 9,531,550      
 
 
Mutual Funds
    117,046,131       —       —       117,046,131      
 
 
Total Assets
  $ 117,046,131     $ 9,531,550     $ —     $ 126,577,681      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2009 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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
 
 
 
14 Semiannual Report 2010

 

 
 
increase in a deferred tax liability (or a reduction in a deferred tax asset). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable year 2009 remains subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.13%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.28% for Class II and Class VI shares until April 30, 2011. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                             
    Period Ended
 		  Six Months Ended
 		       
    2009 Amount (a)   June 30, 2010   Total    
 
    $ 14,393     $ —     $ 14,393      
 
 
(a) For the period March 25, 2009 (commencement of operations) to December 31, 2009.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI.
 
For the six months ended June 30, 2010, NFS received $68,185 in Administrative Servicing fees from the Fund.
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $194.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
 
 
16 Semiannual Report 2010

 

 
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		           Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		   Sales
 		   Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost    Proceeds    Income   Gain/Loss   2010    
 
NVIT International Index Fund, Class Y
  $ 7,414,583     $ 8,570,902      $ 245,882      $ 112,420     $ 21,802     $ 13,838,063      
 
 
NVIT Mid Cap Index Fund, Class Y
    6,102,560       7,124,978       204,902       76,242       45,822       12,402,078      
 
 
NVIT S&P 500 Index Fund, Class Y
    15,539,690       17,848,445       512,254       226,607       101,778       30,259,644      
 
 
NVIT Small Cap Index Fund, Class Y
    1,875,165       2,135,072       61,471       20,451       16,448       3,742,322      
 
 
NVIT Bond Index Fund, Class Y
    18,407,478       21,749,923       614,705       603,717       18,454       40,441,473      
 
 
NVIT Enhanced Income Fund, Class Y
    4,847,501       5,012,533       143,431       78,418       (1,188 )     9,682,861      
 
 
NVIT Money Market Fund, Class Y
    2,573,390       4,229,241       122,941       —       —       6,679,690      
 
 
Nationwide Fixed Contract
    4,844,044       4,707,303       143,431       123,634       —       9,531,550      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $71,378,397 and sales of $2,049,017 (excluding short-term securities).
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies.  Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk.  The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 129,336,040     $ 791,059     $ (3,549,418)     $ (2,758,359)      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Balanced Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that, for the period since the Fund’s inception in March 2009 through September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group. The Trustees also noted that the Fund had outperformed its benchmark, which is an 50%/30%/20% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index, for the three-month period ended September 30, 2009. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
The Trustees then noted that the Fund’s contractual advisory fee for Class II shares was in the second quintile of its Peer Group, but that the Fund’s actual advisory fee and total expenses for Class II shares were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Investor Destinations Capital Appreciation Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
20
   
Supplemental Information
       
22
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-CAP (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Capital Appreciation Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Investor Destinations
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Capital Appreciation Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       957.00       2.81       0.58  
      Hypothetical c     1,000.00       1,021.92       2.91       0.58  
 
 
Class VI Sharesd
    Actual       1,000.00       912.10       2.32       0.49  
      Hypothetical c     1,000.00       1,022.36       2.46       0.49  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
d The NVIT Investor Destinations Capital Appreciation Fund Commenced operations on April 30, 2010. Expenses shown here reflect only 62 days of activity.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Capital Appreciation Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    67 .7%
Fixed Income Funds
    25 .7%
Fixed Contract
    4 .0%
Money Market Fund
    2 .6%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
 
         
Top Holdings †    
 
NVIT S&P 500 Index Fund, Class Y
    31 .0%
NVIT Bond Index Fund, Class Y
    21 .8%
NVIT International Index Fund, Class Y
    18 .6%
NVIT Mid Cap Index Fund, Class Y
    13 .1%
NVIT Small Cap Index Fund, Class Y
    5 .0%
Nationwide Fixed Contract
    4 .0%
NVIT Enhanced Income Fund, Class Y
    3 .9%
NVIT Money Market Fund, Class Y
    2 .6%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Capital Appreciation Fund
 
                 
Mutual Funds 96.0%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 67.7%
NVIT International Index Fund, Class Y (a)
    5,713,228     $ 39,592,667  
NVIT Mid Cap Index Fund, Class Y (a)
    1,917,660       27,786,893  
NVIT S&P 500 Index Fund, Class Y (a)
    9,223,581       66,040,844  
NVIT Small Cap Index Fund, Class Y (a)
    1,462,327       10,733,480  
                 
         
Total Equity Funds (cost $152,121,494)
    144,153,884  
         
 
 
Fixed Income Funds 25.7%
NVIT Bond Index Fund, Class Y (a)
    4,400,284       46,378,999  
NVIT Enhanced Income Fund, Class Y (a)
    845,297       8,419,157  
                 
         
Total Fixed Income Funds (cost $53,915,484)
    54,798,156  
         
 
 
Money Market Fund 2.6%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    5,519,958       5,519,958  
                 
         
Total Money Market Fund (cost $5,519,958)
    5,519,958  
         
         
Total Mutual Funds (cost $211,556,936)
    204,471,998  
         
                 
                 
Fixed Contract 4.0%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Nationwide Fixed Contract, 3.60% (a) (c)
  $ 8,503,831     $ 8,503,831  
                 
         
Total Fixed Contract (cost $8,503,831)
    8,503,831  
         
         
Total Investments (cost $220,060,767) (d) — 100.0%
    212,975,829  
         
Liabilities in excess of other assets — 0.0%
    (89,131 )
         
         
NET ASSETS — 100.0%
  $ 212,886,698  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Capital
 		 
      Appreciation
 		 
      Fund  
       
Assets:
         
Investments in affiliates, at value (cost $220,060,767)
    $ 212,975,829  
Receivable for capital shares issued
      655,961  
Prepaid expenses and other assets
      2,609  
           
Total Assets
      213,634,399  
           
Liabilities:
         
Payable for investments purchased
      632,908  
Payable for capital shares redeemed
      97  
Accrued expenses and other payables:
         
Investment advisory fees
      22,219  
Fund administration fees
      7,030  
Distribution fees
      42,730  
Administrative servicing fees
      24,532  
Accounting and transfer agent fees
      1,466  
Compliance program costs (Note 3)
      764  
Professional fees
      4,918  
Printing fees
      8,376  
Other
      2,661  
           
Total Liabilities
      747,701  
           
Net Assets
    $ 212,886,698  
           
Represented by:
         
Capital
    $ 219,936,327  
Accumulated net investment loss
      (2,415 )
Accumulated net realized gains from investment transactions with affiliates
      37,724  
Net unrealized appreciation/(depreciation) from investments in affiliates
      (7,084,938 )
           
Net Assets
    $ 212,886,698  
           
Net Assets:
         
Class II Shares
    $ 212,776,928  
Class VI Shares
      109,770  
           
Total
    $ 212,886,698  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      17,382,110  
Class VI Shares
      8,976  
           
Total
      17,391,086  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 12.24  
Class VI Shares
    $ 12.23  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Capital
 		 
      Appreciation
 		 
      Fund  
       
INVESTMENT INCOME:
         
Interest income from affiliates
    $ 114,844  
Dividend income from affiliates
      1,902,209  
           
Total Income
      2,017,053  
           
EXPENSES:
         
Investment advisory fees
      107,678  
Fund administration fees
      14,292  
Distribution fees Class II Shares
      207,064  
Distribution fees Class VI Shares (a)
      12  
Administrative servicing fees Class II Shares
      124,239  
Professional fees
      9,858  
Printing fees
      5,045  
Trustee fees
      2,973  
Custodian fees
      2,046  
Accounting and transfer agent fees
      1,402  
Compliance program costs (Note 3)
      357  
Other
      3,531  
           
Total Expenses
      478,497  
           
NET INVESTMENT INCOME
      1,538,556  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions with affiliates
      37,738  
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (12,153,729 )
           
Net realized/unrealized losses from affiliated investments
      (12,115,991 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (10,577,435 )
           
 
 
(a) For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Investor Destinations
 		 
      Capital Appreciation Fund  
         
      Six Months Ended
 		      Period Ended
 		 
      June 30, 2010
 		      December 31, 2009 (a)
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 1,538,556       $ 989,666  
Net realized gains from investment transactions with affiliates
      37,738         851,965  
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (12,153,729 )       5,068,791  
                     
Change in net assets resulting from operations
      (10,577,435 )       6,910,422  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (1,540,577 )       (1,001,208 )
Class VI (b)
      (394 )       –  
Net realized gains:
                   
Class II
      (254,199 )       (588,716 )
Class VI (b)
      (96 )       –  
                     
Change in net assets from shareholder distributions
      (1,795,266 )       (1,589,924 )
                     
Change in net assets from capital transactions
      107,836,508         112,102,393  
                     
Change in net assets
      95,463,807         117,422,891  
                     
                     
Net Assets:
                   
Beginning of period
      117,422,891         –  
                     
End of period
    $ 212,886,698       $ 117,422,891  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (2,415 )     $ –  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 106,739,798       $ 112,472,717  
Dividends reinvested
      1,794,776         1,589,924  
Cost of shares redeemed
      (811,614 )       (1,960,248 )
                     
Total Class II
      107,722,960         112,102,393  
                     
Class VI Shares (b)
                   
Proceeds from shares issued
      113,761         –  
Dividends reinvested
      490         –  
Cost of shares redeemed
      (703 )       –  
                     
Total Class VI
      113,548         –  
                     
Change in net assets from capital transactions
    $ 107,836,508       $ 112,102,393  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      8,215,002         9,124,628  
Reinvested
      138,776         123,936  
Redeemed
      (63,896 )       (156,336 )
                     
Total Class II Shares
      8,289,882         9,092,228  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
(a)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
(b)  For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations
 		 
      Capital Appreciation Fund  
         
      Six Months Ended
 		      Period Ended
 		 
      June 30, 2010
 		      December 31, 2009 (a)
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class VI Shares (b)
                   
Issued
      8,992         –  
Reinvested
      38         –  
Redeemed
      (54 )       –  
                     
Total Class VI Shares
      8,976         –  
                     
Total change in shares
      8,298,858         9,092,228  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
(a)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
 
(b)  For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Capital Appreciation Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains (Losses)
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
  of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 12 .91       0 .12       (0 .66)       (0 .54)       (0 .11)       (0 .02)       (0 .13)     $ 12 .24       (4 .30%)     $ 212,776,928         0 .58%       1 .85%       0 .58%       0 .20%    
Period Ended December 31, 2009 (e) (f)
  $ 10 .00       0 .30       2 .87       3 .17       (0 .19)       (0 .07)       (0 .26)     $ 12 .91       31 .81%     $ 117,422,891         0 .60%       3 .10%       0 .63%       9 .87%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Period Ended June 30, 2010 (e) (g)
  $ 13 .49       0 .17       (1 .35)       (1 .18)       (0 .06)       (0 .02)       (0 .08)     $ 12 .23       (8 .79%)     $ 109,770         0 .49%       7 .98%       0 .49%       0 .20%    
                                                                                                                                               
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  For the period from March 25, 2009 (commencement of operations) through December 31, 2009.
(g)  For the period from April 30, 2010 (commencement of operations) through June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Capital Appreciation Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company and Nationwide Mutual Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Fund also invests in a non-registered Fixed Interest Contract (“Nationwide Fixed Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”).
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and
 
 
 
12 Semiannual Report 2010

 

 
 
dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
The Fund 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 the Fund a fixed rate of interest. The fixed interest rate is a minimum of 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the six months ended June 30, 2010, the rate ranged from 3.60% to 3.70%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions the Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed Contact should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously, under most circumstances, the Nationwide Fixed Contact is valued at par each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day’s net purchase or redemption.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Fixed Contract
  $ —     $ 8,503,831     $ —     $ 8,503,831      
 
 
Mutual Funds
    204,471,998       —       —       204,471,998      
 
 
Total Assets
  $ 204,471,998     $ 8,503,831     $ —     $ 212,975,829      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
*  See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)   Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)   Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2009 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the Fund could incur taxes and penalties related to that position, and those amounts
 
 
 
14 Semiannual Report 2010

 

 
 
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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable year 2009 remains subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.13%      
 
 
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative servicing fees, and certain other expenses) from exceeding 0.28% for Class II and Class VI shares until April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                             
    For the Period Ended
 		  Six Months Ended
 		       
    December 31, 2009 (a)   June 30, 2010   Total    
 
    $ 9,592     $ —     $ 9,592      
 
 
(a) For the period March 25, 2009 (commencement of operations) to December 31, 2009.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period ended June 30, 2010, advisory fees waived were reimbursed to NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI of the Fund.
 
For the six months ended June 30, 2010, NFS received $124,239 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $357.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
 
 
16 Semiannual Report 2010

 

 
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		           
    December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  Market Value
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/(Loss)   June 30, 2010    
 
Nationwide Fixed Contract
  $ 4,716,740     $ 3,683,801     $ 11,553     $ 114,844     $ —     $ 8,503,831      
 
 
NVIT Bond Index Fund, Class Y
    23,452,496       21,910,512       66,020       729,050       2,873       46,378,999      
 
 
NVIT Enhanced Income Fund, Class Y
    4,682,204       3,778,707       11,553       71,951       (71 )     8,419,157      
 
 
NVIT International Index Fund, Class Y
    23,751,603       21,518,822       66,020       337,360       4,188       39,592,667      
 
 
NVIT Mid Cap Index Fund, Class Y
    15,181,044       13,948,789       42,913       180,838       9,035       27,786,893      
 
 
NVIT Money Market Fund, Class Y
    2,352,641       3,177,219       9,903       —       —       5,519,958      
 
 
NVIT S&P 500 Index Fund, Class Y
    37,439,188       34,411,413       105,632       521,073       18,250       66,040,844      
 
 
NVIT Small Cap Index Fund, Class Y
    5,944,594       5,357,302       16,505       61,937       3,463       10,733,480      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $107,786,565 and sales of $330,099 (excluding short-term securities).
 
7. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 220,060,864     $ 940,317     $ (8,025,352 )   $ (7,085,035 )    
 
 
 
 
 
18 Semiannual Report 2010

 

 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
2010 Semiannual Report 19

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
20 Semiannual Report 2010

 

 
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Capital Appreciation Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that, for the period from the Fund’s inception in March 2009 through September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group. The Trustees also noted that the Fund had outperformed its benchmark, which is a 70%/20%/10% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index, for the three-month period ended September 30, 2009. In light of the Fund’s relatively short performance history, the Trustees took into consideration NFA’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of NFA.
 
The Trustees then noted that the Fund’s actual advisory fee for Class II shares was in the second quintile of its Peer Universe, and that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
2010 Semiannual Report 21

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 25

 

 

NVIT Investor Destinations Conservative Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-CON (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder:
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Conservative Fund
Expense Example
 
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Investor Destinations Conservative Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       1,007.90       2.84       0.57  
      Hypothetical c     1,000.00       1,021.97       2.86       0.57  
 
 
Class VI Shares
    Actual       1,000.00       1,007.10       2.84       0.57  
      Hypothetical c     1,000.00       1,021.97       2.86       0.57  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Conservative Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Fixed Income Funds
    58 .3%
Equity Funds
    18 .5%
Fixed Contract
    16 .9%
Money Market Fund
    6 .3%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
Top Holdings †    
 
NVIT Bond Index Fund, Class Y
    41 .5%
Nationwide Fixed Contract
    16 .9%
NVIT Enhanced Income Fund, Class Y
    16 .8%
NVIT S&P 500 Index Fund, Class Y
    9 .2%
NVIT Money Market Fund, Class Y
    6 .3%
NVIT Mid Cap Index Fund, Class Y
    4 .9%
NVIT International Index Fund, Class Y
    4 .4%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Conservative Fund
 
                 
                 
Mutual Funds 83.1%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 18.5%
NVIT International Index Fund, Class Y (a)
    2,771,694     $ 19,207,837  
NVIT Mid Cap Index Fund, Class Y (a)
    1,478,156       21,418,483  
NVIT S&P 500 Index Fund, Class Y (a)
    5,681,178       40,677,232  
                 
         
Total Equity Funds (cost $78,796,331)
    81,303,552  
         
 
 
Fixed Income Funds 58.3%
NVIT Bond Index Fund, Class Y (a)
    17,311,591       182,464,166  
NVIT Enhanced Income Fund, Class Y (a)
    7,395,482       73,659,004  
                 
         
Total Fixed Income Funds (cost $249,520,323)
    256,123,170  
         
 
 
Money Market Fund 6.3%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    27,660,970       27,660,970  
                 
         
Total Money Market Fund (cost $27,660,970)
    27,660,970  
         
         
Total Mutual Funds (cost $355,977,624)
    365,087,692  
         
                 
                 
Fixed Contract 16.9%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Nationwide Fixed Contract, 3.60% (a) (c)
  $ 74,475,582       74,475,582  
                 
         
Total Fixed Contract (cost $74,475,582)
    74,475,582  
         
         
Total Investments (cost $430,453,206) (d) — 100.0%
    439,563,274  
         
Liabilities in excess of other assets — 0.0%
    (120,817 )
         
         
NET ASSETS — 100.0%
  $ 439,442,457  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Conservative Fund  
       
Assets:
         
Investments in affiliates, at value (cost $430,453,206)
    $ 439,563,274  
Cash
      1,357  
Receivable for capital shares issued
      791,920  
Prepaid expenses and other assets
      3,972  
           
Total Assets
      440,360,523  
           
Liabilities:
         
Payable for investments purchased
      649,775  
Payable for capital shares redeemed
      28,837  
Accrued expenses and other payables:
         
Investment advisory fees
      46,307  
Fund administration fees
      11,646  
Distribution fees
      89,054  
Administrative servicing fees
      54,063  
Accounting and transfer agent fees
      2,654  
Custodian fees
      2,394  
Compliance program costs (Note 3)
      1,958  
Professional fees
      15,008  
Printing fees
      10,965  
Other
      5,405  
           
Total Liabilities
      918,066  
           
Net Assets
    $ 439,442,457  
           
Represented by:
         
Capital
    $ 430,860,003  
Accumulated net investment loss
      (6,079 )
Accumulated net realized losses from investment transactions with affiliates
      (521,535 )
Net unrealized appreciation/(depreciation) from investments in affiliates
      9,110,068  
           
Net Assets
    $ 439,442,457  
           
Net Assets:
         
Class II Shares
    $ 416,739,448  
Class VI Shares
      22,703,009  
           
Total
    $ 439,442,457  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      42,751,917  
Class VI Shares
      2,339,354  
           
Total
      45,091,271  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 9.75  
Class VI Shares
    $ 9.70  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Conservative Fund  
       
INVESTMENT INCOME:
         
Interest income from affiliates
    $ 1,252,663  
Dividend income from affiliates
      4,768,834  
           
Total Income
      6,021,497  
           
EXPENSES:
         
Investment advisory fees
      269,101  
Fund administration fees
      23,339  
Distribution fees Class II Shares
      496,721  
Distribution fees Class VI Shares
      20,787  
Administrative servicing fees Class II Shares
      298,034  
Administrative servicing fees Class VI Shares
      12,472  
Professional fees
      22,497  
Printing fees
      6,459  
Trustee fees
      7,359  
Custodian fees
      7,820  
Accounting and transfer agent fees
      3,103  
Compliance program costs (Note 3)
      900  
Other
      10,712  
           
Total expenses before earnings credits
      1,179,304  
Earnings credit (Note 6)
      (1 )
           
Net Expenses
      1,179,303  
           
NET INVESTMENT INCOME
      4,842,194  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions with affiliates
      (521,517 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (1,084,479 )
           
Net realized/unrealized losses from affiliated investments
      (1,605,996 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ 3,236,198  
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Investor Destinations
 		 
      Conservative Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 4,842,194       $ 9,169,806  
Net realized losses from investment transactions with affiliates
      (521,517 )       (14,750,595 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (1,084,479 )       38,006,528  
                     
Change in net assets resulting from operations
      3,236,198         32,425,739  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (7,021,526 )       (6,584,883 )
Class VI
      (303,737 )       (166,394 )
Net realized gains:
                   
Class II
      (1,155,091 )       (1,898,084 )
Class VI
      (63,810 )       (47,482 )
                     
Change in net assets from shareholder distributions
      (8,544,164 )       (8,696,843 )
                     
Change in net assets from capital transactions
      43,766,353         30,958,130  
                     
Change in net assets
      38,458,387         54,687,026  
                     
                     
Net Assets:
                   
Beginning of period
      400,984,070         346,297,044  
                     
End of period
    $ 439,442,457       $ 400,984,070  
                     
Accumulated undistributed net investment income (loss) at end of period
    $ (6,079 )     $ 2,476,990  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 57,586,616       $ 111,737,202  
Dividends reinvested
      8,176,617         8,482,967  
Cost of shares redeemed
      (33,143,759 )       (92,942,922 )
                     
Total Class II
      32,619,474         27,277,247  
                     
Class VI Shares
                   
Proceeds from shares issued
      12,750,285         7,079,196  
Dividends reinvested
      367,547         213,876  
Cost of shares redeemed
      (1,970,953 )       (3,612,189 )
                     
Total Class VI
      11,146,879         3,680,883  
                     
Change in net assets from capital transactions
    $ 43,766,353       $ 30,958,130  
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      5,822,060         11,902,595  
Reinvested
      827,831         897,582  
Redeemed
      (3,331,242 )       (9,918,921 )
                     
Total Class II Shares
      3,318,649         2,881,256  
                     
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations
 		 
      Conservative Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Issued
      1,291,256         739,434  
Reinvested
      37,394         22,745  
Redeemed
      (196,896 )       (376,685 )
                     
Total Class VI Shares
      1,131,754         385,494  
                     
Total change in shares
      4,450,403         3,266,750  
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Conservative Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .87       0 .11       (0 .03)       0 .08       (0 .17)       (0 .03)       (0 .20)     $ 9 .75       0 .79%     $ 416,739,448         0 .57%       2 .33%       0 .57%       4 .60%    
Year Ended December 31, 2009 (e)
  $ 9 .27       0 .24       0 .59       0 .83       (0 .18)       (0 .05)       (0 .23)     $ 9 .87       9 .08%     $ 389,117,123         0 .57%       2 .55%       0 .57%       42 .55%    
Year Ended December 31, 2008
  $ 10 .40       0 .30       (0 .91)       (0 .61)       (0 .34)       (0 .18)       (0 .52)     $ 9 .27       (6 .02%)     $ 338,713,566         0 .56%       3 .04%       0 .56%       24 .69%    
Year Ended December 31, 2007
  $ 10 .46       0 .37       0 .19       0 .56       (0 .37)       (0 .25)       (0 .62)     $ 10 .40       5 .38%     $ 309,288,876         0 .57%       3 .52%       0 .57%       101 .35%    
Year Ended December 31, 2006
  $ 10 .27       0 .32       0 .29       0 .61       (0 .32)       (0 .10)       (0 .42)     $ 10 .46       6 .16%     $ 304,610,311         0 .57%       3 .10%       0 .57%       45 .93%    
Year Ended December 31, 2005
  $ 10 .45       0 .29       0 .05       0 .34       (0 .29)       (0 .23)       (0 .52)     $ 10 .27       3 .31%     $ 280,331,414         0 .57%       2 .79%       0 .57%       30 .49%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .83       0 .12       (0 .05)       0 .07       (0 .17)       (0 .03)       (0 .20)     $ 9 .70       0 .71%     $ 22,703,009         0 .57%       2 .53%       0 .57%       4 .60%    
Year Ended December 31, 2009 (e)
  $ 9 .22       0 .25       0 .59       0 .84       (0 .18)       (0 .05)       (0 .23)     $ 9 .83       9 .25%     $ 11,866,947         0 .57%       2 .64%       0 .57%       42 .55%    
Year Ended December 31, 2008
  $ 10 .36       0 .32       (0 .94)       (0 .62)       (0 .34)       (0 .18)       (0 .52)     $ 9 .22       (6 .17%)     $ 7,583,478         0 .55%       3 .14%       0 .55%       24 .69%    
Year Ended December 31, 2007
  $ 10 .43       0 .37       0 .19       0 .56       (0 .38)       (0 .25)       (0 .63)     $ 10 .36       5 .43%     $ 5,409,132         0 .56%       3 .58%       0 .56%       101 .35%    
Year Ended December 31, 2006
  $ 10 .26       0 .31       0 .29       0 .60       (0 .33)       (0 .10)       (0 .43)     $ 10 .43       6 .13%     $ 5,941,683         0 .57%       3 .13%       0 .57%       45 .93%    
Year Ended December 31, 2005
  $ 10 .45       0 .31       0 .04       0 .35       (0 .31)       (0 .23)       (0 .54)     $ 10 .26       3 .39%     $ 4,644,547         0 .47%       2 .95%       0 .47%       30 .49%    
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Conservative Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company, and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Fund also invests in a non-registered Fixed Interest Contract (“Nationwide Fixed Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”).
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short
 
 
 
12 Semiannual Report 2010

 

 
 
term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The Fund 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 the Fund a fixed rate of interest. The fixed interest rate is a minimum of 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the six months ended June 30, 2010, the rate ranged from 3.60% to 3.70%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions the Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed Contact should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously, under most circumstances, the Nationwide Fixed Contact is valued at par each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day’s net purchase or redemption.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Fixed Contract
  $ —     $ 74,475,582     $ —     $ 74,475,582      
 
 
Mutual Funds
    365,087,692       —       —       365,087,692      
 
 
Total Assets
  $ 365,087,692     $ 74,475,582     $ —     $ 439,563,274      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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
 
 
 
14 Semiannual Report 2010

 

 
 
liability (or a reduction in a deferred tax asset). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.13%      
 
 
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions;
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI of the Fund.
 
For the six months ended June 30, 2010, NFS received $310,506 in Administrative Servicing fees from the Fund.
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $900.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT Bond Index Fund Class Y
  $ 160,211,347     $ 24,639,599     $ 7,695,998     $ 3,320,248     $ 248,708     $ 182,464,166      
 
 
NVIT Enhanced Income Fund Class Y
    68,043,278       8,726,369       2,885,999       731,612       (32,132 )     73,659,004      
 
 
NVIT International Index Fund Class Y
    20,361,278       2,846,279       962,000       181,360       (343,230 )     19,207,837      
 
 
NVIT Mid Cap Index Fund Class Y
    20,045,339       2,829,138       962,000       164,220       (82,456 )     21,418,483      
 
 
NVIT S&P 500 Index Fund Class Y
    40,058,854       5,701,232       1,924,000       371,394       (312,407 )     40,677,232      
 
 
NVIT Money Market Fund Class Y
    24,255,132       5,329,838       1,923,999       —       —       27,660,970      
 
 
Nationwide Fixed Contract
    68,228,828       7,880,090       2,885,999       1,252,663       —       74,475,582      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee
 
 
 
16 Semiannual Report 2010

 

 
 
if the separate account held the Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $3,364.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $4,470.
 
6. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
7. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $57,952,545 and sales of $19,239,995 (excluding short-term securities).
 
8. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
9. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
10. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 444,404,762     $ 9,586,094     $ (14,427,582 )   $ (4,841,488 )    
 
 
 
11. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Conservative Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the second quintile of its Peer Group, and above the Fund’s benchmark, which is a 20%/35%/45% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index. For the three-year period ended September 30, 2009, the Trustees noted that the Fund’s performance was in the first quintile of its Peer Universe and outperformed the Fund’s benchmark. With respect to the five-year period ended September 30, 2009, the Trustees noted that the Fund’s performance was in the third quintile and slightly below the median of its Peer Universe, and that the Fund outperformed its benchmark.
 
With respect to expenses, the Trustees noted that the Fund’s actual advisory fee for Class II shares was in the fifth quintile of its Peer Universe. The Trustees noted, however, that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees also noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Investor Destinations
Moderately Aggressive Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-MAG (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Moderately Aggressive Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
    Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
        Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
NVIT Investor Destinations Moderately Aggressive Fund   01/01/10   06/30/10   01/01/10 - 06/30/10a,b   01/01/10 - 06/30/10a,b
 
Class II Shares
    Actual       1,000.00       944.10       2.70       0.56  
      Hypothetical c     1,000.00       1,022.02       2.81       0.56  
 
 
Class VI Shares
    Actual       1,000.00       944.80       2.70       0.56  
      Hypothetical c     1,000.00       1,022.02       2.81       0.56  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Moderately
Aggressive Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Equity Funds
    78 .1%
Fixed Income Funds
    19 .5%
Fixed Contract
    2 .5%
Liabilities in excess of other assets
    (0 .1)%
         
      100 .0%
         
Top Holdings †    
 
NVIT S&P 500 Index Fund, Class Y
    34 .4%
NVIT International Index Fund, Class Y
    19 .8%
NVIT Bond Index Fund, Class Y
    16 .6%
NVIT Mid Cap Index Fund, Class Y
    15 .6%
NVIT Small Cap Index Fund, Class Y
    5 .2%
Nationwide International Index Fund, Institutional Class
    3 .1%
NVIT Enhanced Income Fund, Class Y
    2 .8%
Nationwide Fixed Contract
    2 .5%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Moderately Aggressive Fund
 
                 
                 
Mutual Funds 97.6%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 78.1%
Nationwide International Index Fund, Institutional Class (a)
    8,458,478     $ 50,835,451  
NVIT International Index Fund, Class Y (a)
    46,678,017       323,478,656  
NVIT Mid Cap Index Fund, Class Y (a)
    17,561,470       254,465,702  
NVIT S&P 500 Index Fund, Class Y (a)
    78,529,925       562,274,266  
NVIT Small Cap Index Fund, Class Y (a)
    11,592,411       85,088,298  
                 
         
Total Equity Funds
(cost $1,665,385,168)
    1,276,142,373  
         
 
 
Fixed Income Funds 19.5%
NVIT Bond Index Fund, Class Y (a)
    25,814,609       272,085,980  
NVIT Enhanced Income Fund, Class Y (a)
    4,662,835       46,441,835  
                 
         
Total Fixed Income Funds (cost $306,520,811)
    318,527,815  
         
         
Total Mutual Funds
(cost $1,971,905,979)
    1,594,670,188  
         
                 
                 
Fixed Contract 2.5%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Nationwide Fixed Contract, 3.60% (a) (b)
  $ 41,157,949       41,157,949  
                 
         
Total Fixed Contract
(cost $41,157,949)
    41,157,949  
         
         
Total Investments (Cost $2,013,063,928) (c) — 100.1%
    1,635,828,137  
         
         
Liabilities in excess of other assets — (0.1)%
    (1,158,269 )
         
         
NET ASSETS — 100.0%
  $ 1,634,669,868  
         
 
(a) Investment in affiliate.
 
(b) The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.
 
(c) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
 
           
           
      NVIT Investor
 		 
      Destinations Moderately
 		 
    Aggressive Fund  
       
Assets:
         
Investments in affiliates, at value (cost $2,013,063,928)
    $ 1,635,828,137  
Cash
      8  
Receivable for investments sold
      4,505,157  
Receivable for capital shares issued
      61,779  
Prepaid expenses and other assets
      17,660  
           
Total Assets
      1,640,412,741  
           
Liabilities:
         
Payable for capital shares redeemed
      4,804,049  
Accrued expenses and other payables:
         
Investment advisory fees
      182,454  
Fund administration fees
      35,790  
Distribution fees
      350,877  
Administrative servicing fees
      222,651  
Accounting and transfer agent fees
      8,620  
Trustee fees
      601  
Custodian fees
      11,341  
Compliance program costs (Note 3)
      9,534  
Professional fees
      57,630  
Printing fees
      27,257  
Other
      32,069  
           
Total Liabilities
      5,742,873  
           
Net Assets
    $ 1,634,669,868  
           
Represented by:
         
Capital
    $ 2,083,751,181  
Accumulated undistributed net investment income
      55,456  
Accumulated net realized losses from investment transactions with affiliates
      (71,900,978 )
Net unrealized appreciation/(depreciation) from investments in affiliates
      (377,235,791 )
           
Net Assets
    $ 1,634,669,868  
           
Net Assets:
         
Class II Shares
    $ 1,624,347,740  
Class VI Shares
      10,322,128  
           
Total
    $ 1,634,669,868  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      185,949,769  
Class VI Shares
      1,188,495  
           
Total
      187,138,264  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 8.74  
Class VI Shares
    $ 8.69  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations Moderately
 		 
    Aggressive Fund  
       
INVESTMENT INCOME:
         
Interest income from affiliates
    $ 775,313  
Dividend income from affiliates
      17,777,852  
           
Total Income
      18,553,165  
           
EXPENSES:
         
Investment advisory fees
      1,165,300  
Fund administration fees
      73,537  
Distribution fees Class II Shares
      2,226,835  
Distribution fees Class VI Shares
      14,149  
Administrative servicing fees Class II Shares
      1,336,108  
Administrative servicing fees Class VI Shares
      8,490  
Professional fees
      86,302  
Printing fees
      14,409  
Trustee fees
      32,270  
Custodian fees
      35,508  
Accounting and transfer agent fees
      11,732  
Compliance program costs (Note 3)
      3,856  
Other
      43,123  
           
Total expenses before earnings credits
      5,051,619  
Earnings credit (Note 6)
      (1 )
           
Net Expenses
      5,051,618  
           
NET INVESTMENT INCOME
      13,501,547  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions with affiliates
      (36,506,192 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (73,610,884 )
           
Net realized/unrealized losses from affiliated investments
      (110,117,076 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (96,615,529 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Investor Destinations Moderately
 		 
      Aggressive Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 13,501,547       $ 33,947,610  
Net realized losses from investment transactions with affiliates
      (36,506,192 )       (94,887,117 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (73,610,884 )       435,819,671  
                     
Change in net assets resulting from operations
      (96,615,529 )       374,880,164  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (25,574,225 )       (21,622,480 )
Class VI
      (161,343 )       (136,488 )
Net realized gains:
                   
Class II
      –         (70,751,258 )
Class VI
      –         (503,675 )
                     
Change in net assets from shareholder distributions
      (25,735,568 )       (93,013,901 )
                     
Change in net assets from capital transactions
      (84,647,720 )       (13,609,566 )
                     
Change in net assets
      (206,998,817 )       268,256,697  
                     
                     
Net Assets:
                   
Beginning of period
      1,841,668,685         1,573,411,988  
                     
End of period
    $ 1,634,669,868       $ 1,841,668,685  
                     
Accumulated undistributed net investment income at end of period
    $ 55,456       $ 12,289,477  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 19,005,909       $ 62,165,613  
Dividends reinvested
      25,574,225         92,373,738  
Cost of shares redeemed
      (129,127,899 )       (167,672,650 )
                     
Total Class II
      (84,547,765 )       (13,133,299 )
                     
Class VI Shares
                   
Proceeds from shares issued
      2,352,918         4,686,539  
Dividends reinvested
      161,343         640,163  
Cost of shares redeemed
      (2,614,216 )       (5,802,969 )
                     
Total Class VI
      (99,955 )       (476,267 )
                     
Change in net assets from capital transactions
    $ (84,647,720 )     $ (13,609,566 )
                     
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      2,014,588         7,986,465  
Reinvested
      2,694,135         10,455,749  
Redeemed
      (13,774,923 )       (19,741,144 )
                     
Total Class II Shares
      (9,066,200 )       (1,298,930 )
                     
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations Moderately
 		 
      Aggressive Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
                     
SHARE TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Issued
      244,148         528,322  
Reinvested
      17,118         72,648  
Redeemed
      (282,666 )       (686,406 )
                     
Total Class VI Shares
      (21,400 )       (85,436 )
                     
Total change in shares
      (9,087,600 )       (1,384,366 )
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Moderately Aggressive Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .39       0 .07       (0 .58)       (0 .51)       (0 .14)       –          (0 .14)     $ 8 .74       (5 .59%)     $ 1,624,347,740         0 .56%       1 .51%       0 .56%       1 .12%    
Year Ended December 31, 2009 (e)
  $ 7 .96       0 .17       1 .74       1 .91       (0 .11)       (0 .37)       (0 .48)     $ 9 .39       24 .39%     $ 1,830,377,623         0 .56%       2 .05%       0 .56%       16 .72%    
Year Ended December 31, 2008
  $ 13 .34       0 .24       (4 .14)       (3 .90)       (0 .28)       (1 .20)       (1 .48)     $ 7 .96       (31 .39%)     $ 1,563,154,142         0 .54%       2 .08%       0 .54%       22 .71%    
Year Ended December 31, 2007
  $ 13 .10       0 .27       0 .54       0 .81       (0 .31)       (0 .26)       (0 .57)     $ 13 .34       6 .15%     $ 2,309,022,995         0 .58%       2 .03%       0 .58%       65 .97%    
Year Ended December 31, 2006
  $ 11 .85       0 .23       1 .45       1 .68       (0 .27)       (0 .16)       (0 .43)     $ 13 .10       14 .54%     $ 1,880,751,908         0 .57%       1 .97%       0 .57%       5 .40%    
Year Ended December 31, 2005
  $ 11 .52       0 .24       0 .57       0 .81       (0 .24)       (0 .24)       (0 .48)     $ 11 .85       7 .07%     $ 1,202,098,385         0 .57%       2 .23%       0 .57%       7 .53%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .33       0 .07       (0 .57)       (0 .50)       (0 .14)       –          (0 .14)     $ 8 .69       (5 .52%)     $ 10,322,128         0 .56%       1 .51%       0 .56%       1 .12%    
Year Ended December 31, 2009 (e)
  $ 7 .92       0 .17       1 .72       1 .89       (0 .11)       (0 .37)       (0 .48)     $ 9 .33       24 .27%     $ 11,291,062         0 .56%       2 .03%       0 .56%       16 .72%    
Year Ended December 31, 2008
  $ 13 .28       0 .22       (4 .10)       (3 .88)       (0 .28)       (1 .20)       (1 .48)     $ 7 .92       (31 .39%)     $ 10,257,846         0 .55%       2 .02%       0 .55%       22 .71%    
Year Ended December 31, 2007
  $ 13 .06       0 .25       0 .55       0 .80       (0 .32)       (0 .26)       (0 .58)     $ 13 .28       6 .16%     $ 16,432,323         0 .55%       2 .01%       0 .55%       65 .97%    
Year Ended December 31, 2006
  $ 11 .83       0 .24       1 .44       1 .68       (0 .29)       (0 .16)       (0 .45)     $ 13 .06       14 .56%     $ 12,110,517         0 .56%       1 .99%       0 .56%       5 .40%    
Year Ended December 31, 2005
  $ 11 .51       0 .25       0 .57       0 .82       (0 .26)       (0 .24)       (0 .50)     $ 11 .83       7 .16%     $ 7,574,807         0 .48%       2 .59%       0 .48%       7 .53%    
Amounts designated as “–” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Moderately Aggressive Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Fund also invests in a non-registered Fixed Interest Contract (“Nationwide Fixed Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”).
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an
 
 
 
12 Semiannual Report 2010

 

 
 
independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
The Fund 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 the Fund a fixed rate of interest. The fixed interest rate is a minimum of 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the six months ended June 30, 2010, the rate ranged from 3.60% to 3.70%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions the Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed Contact should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously, under most circumstances, the Nationwide Fixed Contact is valued at par each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day’s net purchase or redemption.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Fixed Contract
  $ —     $ 41,157,949     $ —     $ 41,157,949      
 
 
Mutual Funds
    1,594,670,188       —       —       1,594,670,188      
 
 
Total Assets
  $ 1,594,670,188     $ 41,157,949     $ —     $ 1,635,828,137      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the Fund could incur taxes and penalties related to that position, and those amounts
 
 
 
14 Semiannual Report 2010

 

 
 
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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                     
    Fee Schedule       Total Fees    
 
    All assets         0.13%      
 
 
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI of the Fund.
 
For the six months ended June 30, 2010, NFS received $1,344,598 in Administrative Servicing fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $3,856.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
Nationwide Fixed Contract
  $ 45,974,894     $ 53,740     $ 5,645,998     $ 775,313     $ —     $ 41,157,949      
 
 
Nationwide International Index Fund, Institutional Class
    90,115,475       759,013       29,415,559       759,013       (18,088,203 )     50,835,451      
 
 
NVIT Bond Index Fund, Class Y
    275,443,604       5,566,001       17,649,336       5,243,563       654,858       272,085,980      
 
 
NVIT Enhanced Income Fund, Class Y
    46,050,339       530,698       —       476,958       —       46,441,835      
 
 
NVIT International Index Fund, Class Y
    375,124,792       3,689,008       —       3,151,609       —       323,478,656      
 
 
NVIT Mid Cap Index Fund, Class Y
    274,925,659       2,403,401       17,649,336       2,080,962       (5,175,516 )     254,465,702      
 
 
 
 
 
16 Semiannual Report 2010

 

 
 
                                                     
    Market Value
 		          Dividend/
 		      Market Value
 		   
    at December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
NVIT S&P 500 Index Fund, Class Y
    642,660,773       6,208,323       41,181,783       5,455,965       (12,306,738 )     562,274,266      
 
 
NVIT Small Cap Index Fund, Class Y
    92,372,042       717,262       5,883,112       609,782       (1,590,593 )     85,088,298      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
5. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $966.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $1,043.
 
6. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
7. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $19,927,446 and sales of $117,425,124 (excluding short-term securities).
 
8. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
9. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
10. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 2,052,425,802     $ 11,203,215     $ (427,800,880 )   $ (416,597,665 )    
 
 
 
11. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Moderately Aggressive Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group, but outperformed its benchmark, which is an 80%/15%/5% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index. With respect to the three- and five-year periods ended September 30, 2009, the Trustees noted that the Fund’s performance for Class II shares placed it in the first quintile of its Peer Group and the second quintile of its Peer Universe, respectively, and the Fund outperformed its benchmark during both periods.
 
The Trustees then noted that the Fund’s contractual advisory fee was in the third quintile and above the median of its Peer Group, and the Fund’s actual advisory fee for Class II shares was in the fourth quintile of its Peer Group. The Trustees noted, however, that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

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NVIT Investor Destinations
Moderately Conservative Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
6
   
Statement of Investments
       
7
   
Statement of Assets and Liabilities
       
8
   
Statement of Operations
       
9
   
Statements of Changes in Net Assets
       
11
   
Financial Highlights
       
12
   
Notes to Financial Statements
       
19
   
Supplemental Information
       
21
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-ID-MCON (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s (and each of its underlying funds’) investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
The NVIT Cardinal Funds and the NVIT Investor Destinations Funds are designed to provide diversification and asset allocation across several types of investments and asset classes, primarily by investing in underlying funds. Therefore, in addition to the expenses of these funds, each investor is indirectly paying a proportionate share of the applicable fees and expenses of the underlying funds.
 
Asset allocation is 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.
 
There is no assurance that the investment objective of any fund (or that of any underlying fund) will be achieved nor that a diversified portfolio will produce better results than a nondiversified portfolio. Diversification does not guarantee returns or insulate an investor from potential losses, including the possible loss of principal.
 
Each Fund is subject to different levels of risk, based on the types and sizes of its underlying asset class allocations and its allocation strategy. In addition, each Fund’s underlying funds may be subject to specific investment risks such as those associated with: (i) bonds and short-term instruments, (ii) small companies, (iii) mid-sized companies, (iv) international securities, (v) real estate investment trusts (REITs), and (vi) initial public offerings (IPOs).
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust (NVIT) Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of
 
 
 
2 Semiannual Report 2010

 

Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2010 Semiannual Report 3

 

Shareholder NVIT Investor Destinations Moderately Conservative Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Investor Destinations
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Moderately Conservative Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a,b   01/01/10 - 06/30/10 a,b
 
Class II Shares
    Actual       1,000.00       989.60       2.81       0.57  
      Hypothetical c     1,000.00       1,021.97       2.86       0.57  
 
 
Class VI Shares
    Actual       1,000.00       989.70       2.81       0.57  
      Hypothetical c     1,000.00       1,021.97       2.86       0.57  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b 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.
 
c Represents the hypothetical 5% return before expenses.
 
 
 
4 Semiannual Report 2010

 

Portfolio Summary NVIT Investor Destinations Moderately
Conservative Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Fixed Income Funds
    46 .8%
Equity Funds
    37 .5%
Fixed Contract
    10 .7%
Money Market Fund
    5 .0%
Liabilities in excess of other assets ‡
    0 .0%
         
      100 .0%
         
Top Holdings †    
 
NVIT Bond Index Fund, Class Y
    37 .1%
NVIT S&P 500 Index Fund, Class Y
    18 .8%
Nationwide Fixed Contract
    10 .7%
NVIT Mid Cap Index Fund, Class Y
    9 .9%
NVIT Enhanced Income Fund, Class Y
    9 .7%
NVIT International Index Fund, Class Y
    8 .8%
NVIT Money Market Fund, Class Y
    5 .0%
         
      100 .0%
 
 
‡ Rounds to less than 0.1%.
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 5

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Investor Destinations Moderately Conservative Fund
 
                 
Mutual Funds 89.3%
                 
      Shares       Market
Value 		 
 
 
Equity Funds 37.5%
NVIT International Index Fund, Class Y (a)
    9,759,909     $ 67,636,168  
NVIT Mid Cap Index Fund, Class Y (a)
    5,261,199       76,234,776  
NVIT S&P 500 Index Fund, Class Y (a)
    20,201,258       144,641,009  
                 
         
Total Equity Funds (cost $329,386,394)
    288,511,953  
         
 
 
Fixed Income Funds 46.8%
NVIT Bond Index Fund, Class Y (a)
    27,073,693       285,356,728  
NVIT Enhanced Income Fund, Class Y (a)
    7,510,499       74,804,567  
                 
         
Total Fixed Income Funds (cost $347,736,842)
    360,161,295  
         
 
 
Money Market Fund 5.0%
NVIT Money Market Fund, Class Y, 0.00% (a) (b)
    38,908,537       38,908,537  
                 
         
Total Money Market Fund (cost $38,908,537)
    38,908,537  
         
         
Total Mutual Funds (cost $716,031,773)
    687,581,785  
         
                 
                 
Fixed Contract 10.7%
                 
      Principal
Amount 		      Market
Value 		 
 
 
Nationwide Fixed Contract, 3.60% (a) (c)
  $ 82,263,599     $ 82,263,599  
                 
         
Total Fixed Contract (cost $82,263,599)
    82,263,599  
         
         
Total Investments (cost $798,295,372) (d) — 100.0%
    769,845,384  
         
Liabilities in excess of other assets — 0.0%
    (288,006 )
         
         
NET ASSETS — 100.0%
  $ 769,557,378  
         
 
(a) Investment in affiliate.
 
(b) Represents 7-day effective yield as of June 30, 2010.
 
(c) The Nationwide Fixed Contract rate changes quarterly. The security is restricted and as the affiliated counterparty is required by contract to redeem within five days upon request, it has been deemed liquid pursuant to procedures approved by the Board of Trustees.
 
(d) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
6 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 
      Destinations
 		 
      Moderately Conservative Fund  
       
Assets:
         
Investments in affiliates, at value (cost $798,295,372)
    $ 769,845,384  
Cash
      8  
Receivable for capital shares issued
      2,009,988  
Prepaid expenses and other assets
      7,578  
           
Total Assets
      771,862,958  
           
Liabilities:
         
Payable for investments purchased
      1,615,627  
Payable for capital shares redeemed
      263,364  
Accrued expenses and other payables:
         
Investment advisory fees
      83,195  
Fund administration fees
      18,186  
Distribution fees
      159,992  
Administrative servicing fees
      99,330  
Accounting and transfer agent fees
      4,241  
Custodian fees
      4,725  
Compliance program costs (Note 3)
      3,912  
Professional fees
      26,004  
Printing fees
      16,424  
Other
      10,580  
           
Total Liabilities
      2,305,580  
           
Net Assets
    $ 769,557,378  
           
Represented by:
         
Capital
    $ 806,475,172  
Accumulated undistributed net investment income
      6,095  
Accumulated net realized losses from investment transactions with affiliates
      (8,473,901 )
Net unrealized appreciation/(depreciation) from investments in affiliates
      (28,449,988 )
           
Net Assets
    $ 769,557,378  
           
Net Assets:
         
Class II Shares
    $ 755,967,147  
Class VI Shares
      13,590,231  
           
Total
    $ 769,557,378  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class II Shares
      79,183,542  
Class VI Shares
      1,429,608  
           
Total
      80,613,150  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class II Shares
    $ 9.55  
Class VI Shares
    $ 9.51  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 7

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT Investor
 		 
      Destinations
 		 
      Moderately
 		 
      Conservative Fund  
       
INVESTMENT INCOME:
         
Interest income from affiliates
    $ 1,456,749  
Dividend income from affiliates
      8,777,696  
           
Total Income
      10,234,445  
           
EXPENSES:
         
Investment advisory fees
      507,318  
Fund administration fees
      36,992  
Distribution fees Class II Shares
      960,178  
Distribution fees Class VI Shares
      15,444  
Administrative servicing fees Class II Shares
      576,110  
Administrative servicing fees Class VI Shares
      9,267  
Professional fees
      39,357  
Printing fees
      8,557  
Trustee fees
      13,968  
Custodian fees
      15,015  
Accounting and transfer agent fees
      5,392  
Compliance program costs (Note 3)
      1,690  
Other
      19,351  
           
Total expenses before earnings credits
      2,208,639  
Earnings credit (Note 6)
      (1 )
           
Net Expenses
      2,208,638  
           
NET INVESTMENT INCOME
      8,025,807  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions with affiliates
      (2,688,896 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (13,750,022 )
           
Net realized/unrealized losses from affiliated investments
      (16,438,918 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (8,413,111 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Investor Destinations
 		 
      Moderately Conservative Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 8,025,807       $ 16,953,705  
Net realized losses from investment transactions with affiliates
      (2,688,896 )       (38,869,388 )
Net change in unrealized appreciation/(depreciation) from investments in affiliates
      (13,750,022 )       118,059,191  
                     
Change in net assets resulting from operations
      (8,413,111 )       96,143,508  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class II
      (12,757,428 )       (11,965,264 )
Class VI
      (214,452 )       (135,338 )
Net realized gains:
                   
Class II
      –         (11,097,036 )
Class VI
      –         (121,325 )
                     
Change in net assets from shareholder distributions
      (12,971,880 )       (23,318,963 )
                     
Change in net assets from capital transactions
      17,570,034         23,115,606  
                     
Change in net assets
      (3,814,957 )       95,940,151  
                     
                     
Net Assets:
                   
Beginning of period
      773,372,335         677,432,184  
                     
End of period
    $ 769,557,378       $ 773,372,335  
                     
Accumulated undistributed net investment income at end of period
    $ 6,095       $ 4,952,168  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class II Shares
                   
Proceeds from shares issued
    $ 33,689,914       $ 86,479,311  
Dividends reinvested
      12,757,428         23,062,300  
Cost of shares redeemed
      (33,024,414 )       (88,886,901 )
                     
Total Class II
      13,422,928         20,654,710  
                     
Class VI Shares
                   
Proceeds from shares issued
      5,147,567         6,787,318  
Dividends reinvested
      214,452         256,663  
Cost of shares redeemed
      (1,214,913 )       (4,583,085 )
                     
Total Class VI
      4,147,106         2,460,896  
                     
Change in net assets from capital transactions
    $ 17,570,034       $ 23,115,606  
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 9

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Investor Destinations
 		 
      Moderately Conservative Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
SHARE TRANSACTIONS:
                   
Class II Shares
                   
Issued
      3,415,121         9,494,046  
Reinvested
      1,291,063         2,484,683  
Redeemed
      (3,341,915 )       (9,911,790 )
                     
Total Class II Shares
      1,364,269         2,066,939  
                     
Class VI Shares
                   
Issued
      522,317         732,559  
Reinvested
      21,798         27,757  
Redeemed
      (123,711 )       (511,375 )
                     
Total Class VI Shares
      420,404         248,941  
                     
Total change in shares
      1,784,673         2,315,880  
                     
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Investor Destinations Moderately Conservative Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                    Ratio of
 		    Ratio of
 		         
                and
 		                                                    Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) from
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .81       0 .10       (0 .20)       (0 .10)       (0 .16)       –          (0 .16)     $ 9 .55       (1 .04%)     $ 755,967,147         0 .57%       2 .05%       0 .57%       2 .70%    
Year Ended December 31, 2009 (e)
  $ 8 .85       0 .22       1 .05       1 .27       (0 .16)       (0 .15)       (0 .31)     $ 9 .81       14 .56%     $ 763,511,410         0 .57%       2 .43%       0 .57%       26 .10%    
Year Ended December 31, 2008
  $ 11 .35       0 .28       (1 .91)       (1 .63)       (0 .33)       (0 .54)       (0 .87)     $ 8 .85       (15 .04%)     $ 670,732,957         0 .57%       2 .73%       0 .57%       23 .62%    
Year Ended December 31, 2007
  $ 11 .35       0 .34       0 .31       0 .65       (0 .35)       (0 .30)       (0 .65)     $ 11 .35       5 .86%     $ 810,970,658         0 .55%       3 .07%       0 .55%       80 .89%    
Year Ended December 31, 2006
  $ 10 .91       0 .30       0 .60       0 .90       (0 .31)       (0 .15)       (0 .46)     $ 11 .35       8 .42%     $ 633,781,962         0 .57%       2 .69%       0 .57%       17 .68%    
Year Ended December 31, 2005
  $ 10 .91       0 .28       0 .20       0 .48       (0 .28)       (0 .20)       (0 .48)     $ 10 .91       4 .49%     $ 525,426,114         0 .56%       2 .66%       0 .56%       11 .32%    
                                                                                                                                               
Class VI Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .77       0 .11       (0 .21)       (0 .10)       (0 .16)       –          (0 .16)     $ 9 .51       (1 .03%)     $ 13,590,231         0 .57%       2 .17%       0 .57%       2 .70%    
Year Ended December 31, 2009 (e)
  $ 8 .81       0 .24       1 .03       1 .27       (0 .16)       (0 .15)       (0 .31)     $ 9 .77       14 .63%     $ 9,860,925         0 .57%       2 .61%       0 .57%       26 .10%    
Year Ended December 31, 2008
  $ 11 .30       0 .29       (1 .91)       (1 .62)       (0 .33)       (0 .54)       (0 .87)     $ 8 .81       (15 .03%)     $ 6,699,227         0 .54%       2 .64%       0 .54%       23 .62%    
Year Ended December 31, 2007
  $ 11 .32       0 .35       0 .30       0 .65       (0 .37)       (0 .30)       (0 .67)     $ 11 .30       5 .82%     $ 10,911,522         0 .56%       3 .34%       0 .56%       80 .89%    
Year Ended December 31, 2006
  $ 10 .90       0 .30       0 .59       0 .89       (0 .32)       (0 .15)       (0 .47)     $ 11 .32       8 .39%     $ 3,631,908         0 .57%       2 .65%       0 .57%       17 .68%    
Year Ended December 31, 2005
  $ 10 .90       0 .30       0 .20       0 .50       (0 .30)       (0 .20)       (0 .50)     $ 10 .90       4 .65%     $ 4,264,903         0 .48%       2 .65%       0 .48%       11 .32%    
 
Amounts designated as “-” are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 11

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Investor Destinations Moderately Conservative Fund (the “Fund”), a series of the Trust. Only the separate accounts of Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) hold shares of the Fund.
 
The Fund is constructed as a “fund of funds”, which means that the Fund pursues its investment objective by allocating its investments primarily among other affiliated underlying portfolios of the Trust (the “Underlying Funds”). The Underlying Funds typically invest, either directly or indirectly, in stocks, bonds, and other securities. The Fund also invests in a non-registered Fixed Interest Contract (“Nationwide Fixed Contract”) issued by Nationwide Life Insurance Company (“Nationwide Life”).
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Shares of the Underlying Funds in which a Fund invests are valued at their respective net asset value (“NAV”) as reported by the Underlying Funds.
 
The following are the valuation policies of the affiliated Underlying Funds:
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and
 
 
 
12 Semiannual Report 2010

 

 
 
dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Investments held by money market funds are valued at amortized cost, which approximates market value. Under the amortized cost method, premium or discount, if any, is amortized or accreted, respectively, to the maturity of the security. A money market fund’s use of amortized cost is subject to compliance with certain conditions as specified by Rule 2a-7 of the 1940 Act.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
The Fund 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 the Fund a fixed rate of interest. The fixed interest rate is a minimum of 3.50% (on an annual basis), but may be higher and is currently adjusted on a quarterly basis. During the six months ended June 30, 2010, the rate ranged from 3.60% to 3.70%. Because the contract is guaranteed by Nationwide Life, assuming no default, the Fund receives no more or less than the guaranteed amount and will not directly participate in the actual experience of the assets underlying the contract. Although under certain market conditions the Fund’s performance may be hurt by its investment in the Nationwide Fixed Contract, Nationwide Fund Advisors (“NFA”) believes that the relatively stable nature of the Nationwide Fixed Contact should reduce the Fund’s volatility and overall risk, especially when the bond and stock markets decline simultaneously, under most circumstances, the Nationwide Fixed Contact is valued at par each day, which is deemed to be fair value. The par value is calculated each day by the summation of the following factors: prior day’s par value; prior day’s interest accrued (par multiplied by guaranteed fixed rate); and current day’s net purchase or redemption.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
 
 
2010 Semiannual Report 13

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type*   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Fixed Contract
  $ —     $ 82,263,599     $ —     $ 82,263,599      
 
 
Mutual Funds
    687,581,785       —       —       687,581,785      
 
 
Total Assets
  $ 687,581,785     $ 82,263,599     $ —     $ 769,845,384      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
* See Statement of Investments for identification of securities by type and industry classification.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(d)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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
 
 
 
14 Semiannual Report 2010

 

 
 
liability (or a reduction in a deferred tax asset). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, NFA manages the investment of the assets and supervises the daily business affairs of the Fund. 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.
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.13%      
 
 
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes. Prior to May 1, 2010, the Fund did not pay a fee for these services.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions;
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class II and Class VI of the Fund.
 
For the six months ended June 30, 2010, NFS received $585,377 in Administrative Servicing fees from the Fund.
 
Under the terms of the Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $1,690.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly-owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI of the Fund.
 
The Fund is a shareholder of its Underlying Funds. The Underlying Funds do not charge the Fund any sales charge for buying or selling Underlying Fund shares. However, the Fund indirectly pays a portion of the operating expenses of each Underlying Fund in which it invests, including management fees of the Underlying Funds and short-term investments the Underlying Funds hold. These expenses are deducted from each of the Underlying Fund’s net assets before their share prices are calculated and are in addition to the fees and expenses of the Fund. Actual indirect expenses vary depending on how the Fund’s assets are spread among the Underlying Funds.
 
4. Investment in Affiliated Issuers
 
The Fund invests in Underlying Funds. A summary of the Fund’s transactions in the shares of Underlying Funds during the six months ended June 30, 2010 were as follows:
 
                                                     
    Market
 		                       
    Value at
 		          Dividend/
 		      Market Value
 		   
    December 31,
 		  Purchases
 		  Sales
 		  Interest
 		  Realized
 		  at June 30,
 		   
Underlying Fund   2009   at Cost   Proceeds   Income   Gain/Loss   2010    
 
Nationwide Fixed Contract
  $ 81,287,907     $ 1,635,332     $ 2,116,388     $ 1,456,749     $ —     $ 82,263,599      
 
 
NVIT Bond Index Fund, Class Y
    270,315,397       13,617,363       7,407,359       5,374,498       264,430       285,356,728      
 
 
NVIT Enhanced Income Fund, Class Y
    73,496,111       3,121,443       1,587,292       766,339       255       74,804,567      
 
 
NVIT International Index Fund, Class Y
    78,318,806       3,013,304       2,116,388       658,199       (1,164,967 )     67,636,168      
 
 
NVIT Mid Cap Index Fund, Class Y
    77,144,486       2,963,229       2,116,388       608,125       (580,896 )     76,234,776      
 
 
NVIT Money Market Fund, Class Y
    38,729,499       1,766,328       1,587,292       —       —       38,908,537      
 
 
NVIT S&P 500 Index Fund, Class Y
    154,501,488       6,080,744       4,232,777       1,370,535       (1,207,718 )     144,641,009      
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
 
 
16 Semiannual Report 2010

 

 
 
5. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $740.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $3,464.
 
6. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
7. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $32,197,743 and sales of $21,163,884 (excluding short-term securities).
 
8. Portfolio Investment Risks From Underlying Funds
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Underlying Funds invest in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Underlying Funds’ investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Underlying Funds.
 
9. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
10. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 828,092,440     $ 5,767,008     $ (64,014,064 )   $ (58,247,056 )    
 
 
 
11. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is similar to the arrangement that applied the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
18 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 19

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Investor Destinations Moderately Conservative Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory agreement and mutual fund industry norms. Turning to performance, the Trustees noted that the Fund’s performance for Class II shares for the one-year period ended September 30, 2009 was in the third quintile and above the median of its Peer Group. The Trustees then noted that the Fund’s performance for Class II shares for the three-year period ended September 30, 2009 was in the first quintile of its Peer Group, and that the Fund’s performance for Class II shares for the five-year period ended September 30, 2009 was in the second quintile of its Peer Universe. The Trustees also noted that for each of the one-, three-, and five-year periods ended September 30, 2009, the Fund outperformed its benchmark, which is a 40%/35%/25% blend of the S&P 500® Index, the Barclays Capital U.S. Aggregate Bond Index, and the Citigroup 3-Month Treasury Bill Index.
 
Turning to expenses, the Trustees noted that the Fund’s contractual advisory fee and actual advisory fee for Class II shares were in the third quintile and above the median of its Peer Group. The Trustees noted, however, that the Fund’s total expenses were in the first quintile of its Peer Group. In this regard, the Trustees noted that the underlying funds’ fees and expenses borne indirectly by shareholders were not reflected in the Lipper expense rankings regarding advisory fees, but were included in the Lipper expense rankings regarding total expenses. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees then noted that shareholders were afforded the benefits of economies of scale through the realization of breakpoints at the underlying index fund level.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
20 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 21

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
22 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 23

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
24 Semiannual Report 2010

 

 
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NVIT Multi-Manager Large Cap Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
9
   
Statement of Assets and Liabilities
       
10
   
Statement of Operations
       
11
   
Statements of Changes in Net Assets
       
13
   
Financial Highlights
       
14
   
Notes to Financial Statements
       
25
   
Supplemental Information
       
28
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-LCV (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President and CEO
Nationwide Variable insurance Trust
 
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager Large Cap Value Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
 June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager Large
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
Cap Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       918.20       4.19       0.88  
      Hypothetical b     1,000.00       1,020.43       4.41       0.88  
 
 
Class II Shares
    Actual       1,000.00       917.50       5.32       1.12  
      Hypothetical b     1,000.00       1,019.24       5.61       1.12  
 
 
Class Y Shares
    Actual       1,000.00       919.70       3.43       0.72  
      Hypothetical b     1,000.00       1,021.22       3.61       0.72  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager Large Cap Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    97 .1%
Mutual Fund
    3 .0%
Liabilities in excess of other assets
    (0 .1)%
         
      100 .0%
         
Top Industries †    
 
Oil, Gas & Consumable Fuels
    10 .1%
Insurance
    9 .5%
Diversified Financial Services
    7 .1%
Pharmaceuticals
    5 .3%
Media
    4 .8%
Electric Utilities
    4 .6%
Capital Markets
    4 .4%
Commercial Banks
    3 .4%
Food Products
    3 .3%
Aerospace & Defense
    3 .3%
Other Industries
    44 .2%
         
      100 .0%
         
Top Holdings †    
 
Bank of America Corp. 
    3 .6%
JPMorgan Chase & Co. 
    3 .3%
Invesco Liquid Assets Portfolio — Institutional Class
    3 .0%
Occidental Petroleum Corp. 
    3 .0%
General Electric Co. 
    2 .4%
Merck & Co., Inc. 
    2 .2%
Entergy Corp. 
    2 .1%
Honeywell International, Inc. 
    1 .7%
Wells Fargo & Co. 
    1 .7%
Cisco Systems, Inc. 
    1 .4%
Other Holdings
    75 .6%
         
      100 .0%
         
Top Countries †    
 
United States
    94 .2%
Switzerland
    2 .1%
Bermuda
    1 .4%
Canada
    0 .6%
Netherlands
    0 .6%
Singapore
    0 .2%
Taiwan
    0 .2%
Germany
    0 .2%
Japan
    0 .2%
United Kingdom
    0 .2%
Other Countries
    0 .1%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Large Cap Value Fund
 
                 
                 
Common Stocks 97.1%
                 
      Shares       Market
Value 		 
 
 
BERMUDA 1.4%
Insurance 1.2%
Everest Re Group Ltd. 
    61,316     $ 4,336,268  
PartnerRe Ltd. 
    9,100       638,274  
                 
              4,974,542  
                 
Oil, Gas & Consumable Fuels 0.2%
Frontline Ltd. 
    32,956       940,564  
                 
              5,915,106  
                 
 
 
CANADA 0.6%
Oil, Gas & Consumable Fuels 0.6%
Canadian Natural Resources Ltd. 
    82,000       2,724,860  
                 
 
 
GERMANY 0.2%
Construction Materials 0.2%
HeidelbergCement AG
    16,294       770,065  
                 
 
 
IRELAND 0.1%
Pharmaceuticals 0.1%
Elan Corp. PLC ADR-IE*
    100,900       454,050  
                 
 
 
JAPAN 0.2%
Tobacco 0.2%
Japan Tobacco, Inc. 
    221       687,552  
                 
 
 
NETHERLANDS 0.6%
Energy Equipment & Services 0.2%
SBM Offshore NV
    56,480       808,014  
                 
Food Products 0.4%
Unilever NV NYRS-NL
    58,432       1,596,362  
                 
              2,404,376  
                 
 
 
SINGAPORE 0.2%
Electronic Equipment, Instruments & Components 0.2%
Flextronics International Ltd.*
    176,800       990,080  
                 
 
 
SWITZERLAND 2.1%
Capital Markets 0.2%
UBS AG REG*
    66,200       877,005  
                 
Energy Equipment & Services 0.7%
Noble Corp.*
    37,900       1,171,489  
Weatherford International Ltd.*
    144,000       1,892,160  
                 
              3,063,649  
                 
Insurance 0.9%
ACE Ltd. 
    69,200       3,562,416  
                 
Pharmaceuticals 0.3%
Roche Holding AG
    8,779       1,208,357  
                 
              8,711,427  
                 
 
 
TAIWAN 0.2%
Semiconductors & Semiconductor Equipment 0.2%
Taiwan Semiconductor Manufacturing Co., Ltd. ADR-TW
    92,860       906,314  
                 
 
 
UNITED KINGDOM 0.2%
Hotels, Restaurants & Leisure 0.2%
Thomas Cook Group PLC
    243,370       644,170  
                 
 
 
UNITED STATES 91.3%
Aerospace & Defense 3.3%
Boeing Co. (The)
    52,179       3,274,232  
General Dynamics Corp. 
    16,600       972,096  
Honeywell International, Inc. 
    182,860       7,137,026  
Lockheed Martin Corp. 
    17,100       1,273,950  
Rockwell Collins, Inc. 
    10,700       568,491  
United Technologies Corp. 
    9,300       603,663  
                 
              13,829,458  
                 
Air Freight & Logistics 0.6%
United Parcel Service, Inc., Class B
    41,200       2,343,868  
                 
Airlines 0.2%
Delta Air Lines, Inc.*
    74,500       875,375  
                 
Auto Components 1.0%
Johnson Controls, Inc. 
    152,261       4,091,253  
                 
Automobiles 0.4%
Ford Motor Co.*
    166,014       1,673,421  
                 
Beverages 2.3%
Dr. Pepper Snapple Group, Inc. 
    28,200       1,054,398  
Molson Coors Brewing Co., Class B
    67,900       2,876,244  
PepsiCo, Inc. 
    94,330       5,749,414  
                 
              9,680,056  
                 
Biotechnology 2.0%
Amgen, Inc.*
    67,300       3,539,980  
Biogen Idec, Inc.*
    72,015       3,417,112  
Gilead Sciences, Inc.*
    40,100       1,374,628  
                 
              8,331,720  
                 
Capital Markets 4.2%
Ameriprise Financial, Inc. 
    117,000       4,227,210  
Bank of New York Mellon Corp. (The)
    126,689       3,127,951  
Franklin Resources, Inc. 
    21,350       1,840,157  
Goldman Sachs Group, Inc. (The)
    10,400       1,365,208  
Invesco Ltd. 
    125,703       2,115,582  
Morgan Stanley
    39,900       926,079  
State Street Corp. 
    49,160       1,662,591  
TD Ameritrade Holding Corp.*
    117,700       1,800,810  
UBS AG REG*
    38,200       505,004  
                 
              17,570,592  
                 
Chemicals 1.7%
Air Products & Chemicals, Inc. 
    28,630       1,855,510  
CF Industries Holdings, Inc. 
    7,700       488,565  
Dow Chemical Co. (The)
    96,501       2,289,004  
Monsanto Co. 
    22,600       1,044,572  
Mosaic Co. (The)
    33,900       1,321,422  
                 
              6,999,073  
                 
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Large Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
                 
Commercial Banks 3.4%
Comerica, Inc. 
    27,700     $ 1,020,191  
PNC Financial Services Group, Inc. 
    14,300       807,950  
SunTrust Banks, Inc. 
    70,258       1,637,012  
U.S. Bancorp
    166,135       3,713,117  
Wells Fargo & Co. 
    276,000       7,065,600  
                 
              14,243,870  
                 
Commercial Services & Supplies 0.2%
Pitney Bowes, Inc. 
    46,300       1,016,748  
                 
Communications Equipment 1.8%
Cisco Systems, Inc.*
    277,905       5,922,155  
QUALCOMM, Inc. 
    50,276       1,651,064  
                 
              7,573,219  
                 
Computers & Peripherals 0.8%
EMC Corp.*
    134,293       2,457,562  
Hewlett-Packard Co. 
    21,200       917,536  
                 
              3,375,098  
                 
Construction Materials 0.6%
Vulcan Materials Co. 
    53,400       2,340,522  
                 
Consumer Finance 0.9%
American Express Co. 
    12,800       508,160  
Capital One Financial Corp. 
    12,600       507,780  
SLM Corp.*
    279,515       2,904,161  
                 
              3,920,101  
                 
Containers & Packaging 0.3%
Owens-Illinois, Inc.*
    43,700       1,155,865  
                 
Diversified Consumer Services 0.3%
Apollo Group, Inc., Class A*
    32,000       1,359,040  
                 
Diversified Financial Services 7.1%
Bank of America Corp. 
    1,040,951       14,958,466  
Citigroup, Inc.*
    250,000       940,000  
JPMorgan Chase & Co. 
    376,945       13,799,956  
                 
              29,698,422  
                 
Diversified Telecommunication Services 1.0%
AT&T, Inc. 
    180,400       4,363,876  
                 
Electric Utilities 4.6%
American Electric Power Co., Inc. 
    119,485       3,859,366  
Entergy Corp. 
    120,827       8,653,630  
FirstEnergy Corp. 
    64,167       2,260,603  
NextEra Energy, Inc. 
    20,700       1,009,332  
Northeast Utilities
    36,100       919,828  
NV Energy, Inc. 
    78,100       922,361  
PPL Corp. 
    41,900       1,045,405  
Progress Energy, Inc. 
    12,500       490,250  
                 
              19,160,775  
                 
Electrical Equipment 1.3%
Ametek, Inc. 
    40,100       1,610,015  
Emerson Electric Co. 
    87,618       3,828,030  
                 
              5,438,045  
                 
Electronic Equipment, Instruments & Components 1.0%
Arrow Electronics, Inc.*
    80,500       1,799,175  
Avnet, Inc.*
    32,740       789,361  
Corning, Inc. 
    89,950       1,452,693  
                 
              4,041,229  
                 
Energy Equipment & Services 1.8%
Baker Hughes, Inc. 
    32,950       1,369,731  
Cameron International Corp.*
    39,600       1,287,792  
Halliburton Co. 
    126,765       3,112,081  
Schlumberger Ltd. 
    34,500       1,909,230  
                 
              7,678,834  
                 
Food & Staples Retailing 1.9%
CVS Caremark Corp. 
    161,217       4,726,882  
Sysco Corp. 
    35,100       1,002,807  
Wal-Mart Stores, Inc. 
    45,710       2,197,280  
                 
              7,926,969  
                 
Food Products 2.9%
Archer-Daniels-Midland Co. 
    219,776       5,674,616  
General Mills, Inc. 
    125,640       4,462,733  
Kraft Foods, Inc., Class A
    78,400       2,195,200  
                 
              12,332,549  
                 
Gas Utilities 0.3%
Questar Corp. 
    29,800       1,355,602  
                 
Health Care Equipment & Supplies 1.9%
Baxter International, Inc. 
    107,053       4,350,634  
Medtronic, Inc. 
    49,800       1,806,246  
St. Jude Medical, Inc.*
    48,900       1,764,801  
                 
              7,921,681  
                 
Health Care Providers & Services 2.2%
AmerisourceBergen Corp. 
    39,500       1,254,125  
Cardinal Health, Inc. 
    15,200       510,872  
CIGNA Corp. 
    54,900       1,705,194  
McKesson Corp. 
    7,200       483,552  
MEDNAX, Inc.*
    8,800       489,368  
UnitedHealth Group, Inc. 
    21,500       610,600  
WellPoint, Inc.*
    82,648       4,043,967  
                 
              9,097,678  
                 
Hotels, Restaurants & Leisure 0.3%
Carnival Corp. 
    36,700       1,109,808  
                 
Household Durables 0.7%
Newell Rubbermaid, Inc. 
    114,060       1,669,838  
NVR, Inc.*
    700       458,521  
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
Household Durables (continued)
                 
Toll Brothers, Inc.*
    25,300     $ 413,908  
Whirlpool Corp. 
    5,300       465,446  
                 
              3,007,713  
                 
Household Products 0.3%
Clorox Co. 
    15,800       982,128  
Energizer Holdings, Inc.*
    9,100       457,548  
                 
              1,439,676  
                 
Industrial Conglomerates 2.4%
General Electric Co. 
    694,105       10,008,994  
                 
Information Technology Services 0.8%
Paychex, Inc. 
    42,800       1,111,516  
Western Union Co. (The)
    158,400       2,361,744  
                 
              3,473,260  
                 
Insurance 7.5%
Aflac, Inc. 
    90,558       3,864,110  
Allstate Corp. (The)
    48,020       1,379,615  
Aon Corp. 
    19,300       716,416  
Fidelity National Financial, Inc., Class A
    178,100       2,313,519  
Genworth Financial, Inc., Class A*
    64,400       841,708  
Hartford Financial Services Group, Inc. 
    88,304       1,954,168  
Marsh & McLennan Cos., Inc. 
    111,333       2,510,559  
MetLife, Inc. 
    43,800       1,653,888  
Principal Financial Group, Inc. 
    40,500       949,320  
Prudential Financial, Inc. 
    77,940       4,182,260  
Reinsurance Group of America, Inc. 
    72,300       3,304,833  
Travelers Cos., Inc. (The)
    72,058       3,548,856  
Unum Group
    160,900       3,491,530  
White Mountains Insurance Group Ltd. 
    1,517       491,811  
                 
              31,202,593  
                 
Internet Software & Services 0.6%
AOL, Inc.*
    42,700       887,733  
Google, Inc., Class A*
    4,010       1,784,250  
                 
              2,671,983  
                 
Leisure Equipment & Products 0.2%
Mattel, Inc. 
    34,800       736,368  
                 
Life Sciences Tools & Services 0.1%
Thermo Fisher Scientific, Inc.*
    10,400       510,120  
                 
Machinery 2.0%
Caterpillar, Inc. 
    15,100       907,057  
Cummins, Inc. 
    8,300       540,579  
Dover Corp. 
    22,600       944,454  
Eaton Corp. 
    28,861       1,888,664  
Navistar International Corp.*
    12,100       595,320  
PACCAR, Inc. 
    12,700       506,349  
Pentair, Inc. 
    58,700       1,890,140  
Terex Corp.*
    51,300       961,362  
                 
              8,233,925  
                 
Media 4.8%
CBS Corp. Non-Voting, Class B
    281,825       3,643,997  
Comcast Corp., Class A
    210,170       3,650,653  
DIRECTV Group, Inc. (The), Class A*
    13,600       461,312  
DISH Network Corp., Class A
    175,726       3,189,427  
News Corp., Class A
    201,500       2,409,940  
Omnicom Group Inc. 
    38,400       1,317,120  
Time Warner, Inc. 
    71,000       2,052,610  
Viacom, Inc., Class B
    76,328       2,394,409  
Virgin Media, Inc. 
    60,800       1,014,752  
                 
              20,134,220  
                 
Metals & Mining 0.6%
Freeport-McMoRan Copper & Gold, Inc. 
    7,500       443,475  
Newmont Mining Corp. 
    17,904       1,105,393  
Walter Energy, Inc. 
    14,377       874,840  
                 
              2,423,708  
                 
Multiline Retail 0.6%
Macy’s, Inc. 
    26,500       474,350  
Target Corp. 
    36,900       1,814,373  
                 
              2,288,723  
                 
Oil, Gas & Consumable Fuels 9.2%
Anadarko Petroleum Corp. 
    57,100       2,060,739  
Apache Corp. 
    7,200       606,168  
Chevron Corp. 
    51,400       3,488,004  
Cobalt International Energy, Inc.*
    74,900       558,005  
ConocoPhillips
    44,700       2,194,323  
CONSOL Energy, Inc. 
    53,100       1,792,656  
EOG Resources, Inc. 
    51,187       5,035,265  
Newfield Exploration Co.*
    67,703       3,307,968  
Noble Energy, Inc. 
    38,100       2,298,573  
Occidental Petroleum Corp. 
    162,885       12,566,578  
Range Resources Corp. 
    83,184       3,339,838  
Southwestern Energy Co.*
    34,600       1,336,944  
                 
              38,585,061  
                 
Paper & Forest Products 0.1%
International Paper Co. 
    21,100       477,493  
                 
Pharmaceuticals 4.9%
Johnson & Johnson
    71,086       4,198,339  
King Pharmaceuticals, Inc.*
    176,000       1,335,840  
Merck & Co., Inc. 
    263,518       9,215,225  
Pfizer, Inc. 
    409,700       5,842,322  
                 
              20,591,726  
                 
Road & Rail 0.5%
Norfolk Southern Corp. 
    17,400       923,070  
Union Pacific Corp. 
    13,800       959,238  
                 
              1,882,308  
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager Large Cap Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
UNITED STATES (continued)
                 
Semiconductors & Semiconductor Equipment 0.9%
Applied Materials, Inc. 
    50,700     $ 609,414  
Broadcom Corp., Class A
    53,688       1,770,093  
Texas Instruments, Inc. 
    60,230       1,402,155  
                 
              3,781,662  
                 
Software 2.1%
BMC Software, Inc.*
    75,350       2,609,371  
Microsoft Corp. 
    194,800       4,482,348  
Oracle Corp. 
    81,718       1,753,668  
                 
              8,845,387  
                 
Specialty Retail 1.8%
Abercrombie & Fitch Co., Class A
    11,700       359,073  
Bed Bath & Beyond, Inc.*
    14,840       550,267  
Home Depot, Inc. 
    72,600       2,037,882  
Lowe’s Cos., Inc. 
    41,000       837,220  
Staples, Inc. 
    127,123       2,421,693  
TJX Cos., Inc. 
    32,500       1,363,375  
                 
              7,569,510  
                 
Tobacco 0.0%†
Philip Morris International, Inc. 
    1,431       65,597  
                 
Wireless Telecommunication Services 0.9%
Sprint Nextel Corp.*
    918,769       3,895,581  
                 
              382,330,355  
                 
         
Total Common Stocks (cost $426,404,966)
    406,538,355  
         
Mutual Fund 3.0%
                 
Money Market Fund 3.0%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (a)
    12,612,885       12,612,885  
                 
         
Total Mutual Fund (cost $12,612,885)
    12,612,885  
         
         
Total Investments
(cost $439,017,851) (b) — 100.1%
    419,151,240  
         
Liabilities in excess of other assets — (0.1)%
    (451,478 )
         
         
NET ASSETS — 100.0%
  $ 418,699,762  
         
 
* Denotes a non-income producing security.
 
(a) Represents 7-day effective yield as of June 30, 2010.
 
(b) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
IE Ireland
 
Ltd. Limited
 
NL Netherlands
 
NV Public Traded Company
 
NYRS New York Registry Shares
 
PLC Public Limited Company
 
REG Registered Shares
 
TW Taiwan
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
8 Semiannual Report 2010

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT Multi-Manager
 		 
      Large Cap
 		 
      Value Fund  
       
Assets:
         
Investments, at value (cost $439,017,851)
    $ 419,151,240  
Cash
      22,181  
Foreign currencies, at value (cost $9,386)
      9,456  
Dividends receivable
      437,396  
Receivable for investments sold
      4,698,421  
Receivable for capital shares issued
      1,191,240  
Reclaims receivable
      30,906  
Prepaid expenses and other assets
      5,240  
           
Total Assets
      425,546,080  
           
Liabilities:
         
Payable for investments purchased
      6,332,700  
Payable for capital shares redeemed
      174,220  
Accrued expenses and other payables:
         
Investment advisory fees
      232,036  
Fund administration fees
      16,377  
Distribution fees
      9,282  
Administrative servicing fees
      9,857  
Accounting and transfer agent fees
      36,890  
Custodian fees
      698  
Compliance program costs (Note 3)
      2,275  
Professional fees
      11,525  
Printing fees
      20,458  
           
Total Liabilities
      6,846,318  
           
Net Assets
    $ 418,699,762  
           
Represented by:
         
Capital
    $ 427,633,566  
Accumulated undistributed net investment income
      1,272,895  
Accumulated net realized gains from investment, futures and foreign currency transactions
      9,661,150  
Net unrealized appreciation/(depreciation) from investments
      (19,866,611 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (1,238 )
           
Net Assets
    $ 418,699,762  
           
Net Assets:
         
Class I Shares
    $ 28,677,154  
Class II Shares
      42,248,667  
Class Y Shares
      347,773,941  
           
Total
    $ 418,699,762  
           
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      3,777,038  
Class II Shares
      5,576,060  
Class Y Shares
      45,750,303  
           
Total
      55,103,401  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 7.59  
Class II Shares
    $ 7.58  
Class Y Shares
    $ 7.60  
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 9

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
 
           
           
      NVIT Multi-Manager Large Cap
 		 
      Value Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 352  
Dividend income
      3,447,690  
           
Total Income
      3,448,042  
           
EXPENSES:
         
Investment advisory fees
      1,288,675  
Fund administration fees
      78,930  
Distribution fees Class II Shares
      60,467  
Administrative servicing fees Class I Shares
      11,889  
Administrative servicing fees Class II Shares
      36,280  
Professional fees
      23,372  
Printing fees
      14,997  
Trustee fees
      7,051  
Custodian fees
      11,452  
Accounting and transfer agent fees
      4,088  
Compliance program costs (Note 3)
      849  
Other
      8,607  
           
Total expenses before earnings credit
      1,546,657  
Earnings credit (Note 4)
      (84 )
           
Net Expenses
      1,546,573  
           
NET INVESTMENT INCOME
      1,901,469  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized gains from investment transactions
      18,634,980  
Net realized gains from futures transactions (Note 2)
      223,616  
Net realized losses from foreign currency transactions (Note 2)
      (156,041 )
           
Net realized gains from investment, futures and foreign currency transactions
      18,702,555  
           
Net change in unrealized appreciation/(depreciation) from investments
      (60,344,357 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (24,603 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (1,239 )
           
Net change in unrealized appreciation/(depreciation) from investments
      (60,370,199 )
           
Net realized/unrealized losses from investments and foreign currency transactions
      (41,667,644 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (39,766,175 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
10 Semiannual Report 2010

 

Statements of Changes in Net Assets
 
                     
      NVIT Multi-Manager Large Cap Value Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
Operations:
                   
Net investment income
    $ 1,901,469       $ 2,972,414  
Net realized gains from investment, futures and foreign currency transactions
      18,702,555         4,285,560  
Net change in unrealized appreciation/(depreciation) from investments
      (60,370,199 )       56,246,300  
                     
Change in net assets resulting from operations
      (39,766,175 )       63,504,274  
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (11,857 )       (38,345 )
Class II
      (53,551 )       (240,848 )
Class Y
      (677,938 )       (2,552,859 )
Net realized gains:
                   
Class I
      (61,930 )       –  
Class II
      (417,982 )       –  
Class Y
      (3,097,511 )       –  
                     
Change in net assets from shareholder distributions
      (4,320,769 )       (2,832,052 )
                     
Change in net assets from capital transactions
      121,153,004         184,024,252  
                     
Change in net assets
      77,066,060         244,696,474  
                     
                     
Net Assets:
                   
Beginning of period
      341,633,702         96,937,228  
                     
End of period
    $ 418,699,762       $ 341,633,702  
                     
Accumulated undistributed net investment income at end of period
    $ 1,272,895       $ 114,772  
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 5,001,514       $ 6,915,851  
Proceeds from shares issued from mergers (Note 8)
      34,818,322         –  
Dividends reinvested
      73,787         38,345  
Cost of shares redeemed
      (13,379,215 )       (1,025,001 )
                     
Total Class I
      26,514,408         5,929,195  
                     
Class II Shares
                   
Proceeds from shares issued
      1,700,321         46,577,012  
Proceeds from shares issued from mergers (Note 8)
      983,461         –  
Dividends reinvested
      471,533         240,848  
Cost of shares redeemed
      (6,367,957 )       (6,633,080 )
                     
Total Class II
      (3,212,642 )       40,184,780  
                     
Class Y Shares
                   
Proceeds from shares issued
      98,747,852         173,330,753  
Dividends reinvested
      3,775,449         2,552,859  
Cost of shares redeemed
      (4,672,063 )       (37,973,335 )
                     
Total Class Y
      97,851,238         137,910,277  
                     
Change in net assets from capital transactions
    $ 121,153,004       $ 184,024,252  
                     
                     
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 11

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Multi-Manager Large Cap Value Fund  
         
      Six Months Ended
 		         
      June 30, 2010
 		      Year Ended
 		 
      (Unaudited)       December 31, 2009
 		 
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      572,232         913,983  
Issued in mergers (Note 8)
      3,918,121         –  
Reinvested
      8,300         4,741  
Redeemed
      (1,558,086 )       (137,963 )
                     
Total Class I Shares
      2,940,567         780,761  
                     
Class II Shares
                   
Issued
      201,188         6,229,118  
Issued in mergers (Note 8)
      110,852         –  
Reinvested
      53,070         30,431  
Redeemed
      (728,200 )       (848,291 )
                     
Total Class II Shares
      (363,090 )       5,411,258  
                     
Class Y Shares
                   
Issued
      11,660,976         24,777,516  
Reinvested
      424,381         346,315  
Redeemed
      (465,734 )       (5,056,285 )
                     
Total Class Y Shares
      11,619,623         20,067,546  
                     
Total change in shares
      14,197,100         26,259,565  
                     
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
12 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager Large Cap Value Fund
 
                                                                                                                                               
          Operations     Distributions                 Ratios / Supplemental Data    
     
                Net Realized
 		                                                          Ratio of
 		         
                and
 		                                                    Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                              Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		          Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) on
 		    from
 		    Investment
 		    Realized
 		    Total
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Distributions     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .35       0 .05       (0 .72)       (0 .67)       (0 .01)       (0 .08)       (0 .09)     $ 7 .59       (8 .18%)     $ 28,677,154         0 .88%       1 .08%       0 .88%       98 .15%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .62       0 .10       1 .71       1 .81       (0 .08)       –          (0 .08)     $ 8 .35       27 .59%     $ 6,982,599         0 .89%       1 .28%       0 .89%       95 .68%    
Period Ended December 31, 2008 (g)
  $ 10 .00       0 .07       (3 .38)       (3 .31)       (0 .07)       –          (0 .07)     $ 6 .62       (33 .19%)     $ 368,717         0 .87%       1 .81%       0 .99%       72 .96%    
                                                                                                                                               
Class II Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .34       0 .03       (0 .70)       (0 .67)       (0 .01)       (0 .08)       (0 .09)     $ 7 .58       (8 .25%)     $ 42,248,667         1 .12%       0 .60%       1 .12%       98 .15%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .61       0 .08       1 .72       1 .80       (0 .07)       –          (0 .07)     $ 8 .34       27 .41%     $ 49,508,983         1 .14%       1 .04%       1 .14%       95 .68%    
Period Ended December 31, 2008 (g)
  $ 10 .00       0 .06       (3 .38)       (3 .32)       (0 .07)       –          (0 .07)     $ 6 .61       (33 .34%)     $ 3,488,798         1 .16%       1 .38%       1 .26%       72 .96%    
                                                                                                                                               
Class Y Shares
                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 8 .35       0 .04       (0 .69)       (0 .65)       (0 .02)       (0 .08)       (0 .10)     $ 7 .60       (8 .03%)     $ 347,773,941         0 .72%       1 .00%       0 .72%       98 .15%(f)    
Year Ended December 31, 2009 (e)
  $ 6 .62       0 .11       1 .71       1 .82       (0 .09)       –          (0 .09)     $ 8 .35       27 .77%     $ 285,142,120         0 .74%       1 .50%       0 .74%       95 .68%    
Period Ended December 31, 2008 (g)
  $ 10 .00       0 .08       (3 .38)       (3 .30)       (0 .08)       –          (0 .08)     $ 6 .62       (33 .16%)     $ 93,079,713         0 .77%       1 .66%       0 .87%       72 .96%    
Amounts designated as “–“ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  During the period certain fees may have been waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated.
(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)  Excludes merger activity.
(g)  For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager Large Cap Value Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
14 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include 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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authorative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Assets:
                                   
Common Stocks
                                   
Aerospace & Defense
  $ 13,829,458     $ —     $ —     $ 13,829,458      
 
 
Air Freight & Logistics
    2,343,868       —       —       2,343,868      
 
 
Airlines
    875,375       —       —       875,375      
 
 
Auto Components
    4,091,253       —       —       4,091,253      
 
 
Automobiles
    1,673,421       —       —       1,673,421      
 
 
Beverages
    9,680,056       —       —       9,680,056      
 
 
Biotechnology
    8,331,720       —       —       8,331,720      
 
 
Capital Markets
    17,570,592       877,005       —       18,447,597      
 
 
Chemicals
    6,999,073       —       —       6,999,073      
 
 
Commercial Banks
    14,243,870       —       —       14,243,870      
 
 
Commercial Services & Supplies
    1,016,748       —       —       1,016,748      
 
 
Communications Equipment
    7,573,219       —       —       7,573,219      
 
 
Computers & Peripherals
    3,375,098       —       —       3,375,098      
 
 
Construction Materials
    2,340,522       770,065       —       3,110,587      
 
 
Consumer Finance
    3,920,101       —       —       3,920,101      
 
 
Containers & Packaging
    1,155,865       —       —       1,155,865      
 
 
 
 
 
2010 Semiannual Report 15

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1   Level 2   Level 3   Total    
 
Diversified Consumer Services
  $ 1,359,040     $ —     $ —     $ 1,359,040      
 
 
Diversified Financial Services
    29,698,422       —       —       29,698,422      
 
 
Diversified Telecommunication Services
    4,363,876       —       —       4,363,876      
 
 
Electric Utilities
    19,160,775       —       —       19,160,775      
 
 
Electrical Equipment
    5,438,045       —       —       5,438,045      
 
 
Electronic Equipment, Instruments & Components
    5,031,309       —       —       5,031,309      
 
 
Energy Equipment & Services
    10,742,483       808,014       —       11,550,497      
 
 
Food & Staples Retailing
    7,926,969       —       —       7,926,969      
 
 
Food Products
    13,928,911       —       —       13,928,911      
 
 
Gas Utilities
    1,355,602       —       —       1,355,602      
 
 
Health Care Equipment & Supplies
    7,921,681       —       —       7,921,681      
 
 
Health Care Providers & Services
    9,097,678       —       —       9,097,678      
 
 
Hotels, Restaurants & Leisure
    1,109,808       644,170       —       1,753,978      
 
 
Household Durables
    3,007,713       —       —       3,007,713      
 
 
Household Products
    1,439,676       —       —       1,439,676      
 
 
Industrial Conglomerates
    10,008,994       —       —       10,008,994      
 
 
Information Technology Services
    3,473,260       —       —       3,473,260      
 
 
Insurance
    39,739,551       —       —       39,739,551      
 
 
Internet Software & Services
    2,671,983       —       —       2,671,983      
 
 
Leisure Equipment & Products
    736,368       —       —       736,368      
 
 
Life Sciences Tools & Services
    510,120       —       —       510,120      
 
 
Machinery
    8,233,925       —       —       8,233,925      
 
 
Media
    20,134,220       —       —       20,134,220      
 
 
Metals & Mining
    2,423,708       —       —       2,423,708      
 
 
Multiline Retail
    2,288,723       —       —       2,288,723      
 
 
Oil, Gas & Consumable Fuels
    42,250,485       —       —       42,250,485      
 
 
Paper & Forest Products
    477,493       —       —       477,493      
 
 
Pharmaceuticals
    21,045,776       1,208,357       —       22,254,133      
 
 
Road & Rail
    1,882,308       —       —       1,882,308      
 
 
Semiconductors & Semiconductor Equipment
    4,687,976       —       —       4,687,976      
 
 
Software
    8,845,387       —       —       8,845,387      
 
 
Specialty Retail
    7,569,510       —       —       7,569,510      
 
 
Tobacco
    65,597       687,552       —       753,149      
 
 
Wireless Telecommunication Services
    3,895,581       —       —       3,895,581      
 
 
Total Common Stocks
    401,543,192       4,995,163       —       406,538,355      
 
 
Mutual Funds
    12,612,885       —       —       12,612,885      
 
 
Total Assets
  $ 414,156,077     $ 4,995,163     $ —     $ 419,151,240      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
 
 
16 Semiannual Report 2010

 

 
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
 
 
2010 Semiannual Report 17

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ 223,616      
 
 
    Total   $ 223,616      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (24,603 )    
 
 
    Total   $ (24,603 )    
 
 
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(d)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(e)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(f)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify 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, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2008 annual financial statements, the 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. The 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
 
 
 
18 Semiannual Report 2010

 

 
 
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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2008 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(g)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
     
Subadvisers    
 
Wellington Management Company, LLP
   
 
 
Goldman Sachs Asset Management
   
 
 
Deutsche Investment Management Americas Inc. (a)
   
 
 
The Boston Company Asset Management, LLC (a)
   
 
 
(a) The Boston Company Asset Management, LLC replaced Deutsche Investment Management Americas Inc. as a subadviser effective June 25, 2010.
 
Beginning May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $1 billion     0.65%      
 
 
    $1 billion and more     0.60%      
 
 
 
 
 
2010 Semiannual Report 19

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
Prior to May 1, 2010, under the terms of the Investment Advisory Agreement, the Fund paid NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    All assets     0.65%      
 
 
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the Subadvisers. NFA paid the Subadvisers $687,682 for the six months ended June 30, 2010.
 
The Trust and NFA have entered into a written Expense Limitation Agreement, which limits the Fund’s operating expenses (excluding Rule 12b-1 fees, administrative services fees and certain other expenses) from exceeding 0.77% for all share classes until at least April 30, 2011.
 
NFA may request and receive reimbursement from the 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 fiscal year in which the corresponding reimbursement to the Fund was made. However, no reimbursement will be made unless: (i) the Fund’s assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is at or less than the limit set forth above; and (iii) the payment of such reimbursement is approved by the Board of Trustees on a quarterly basis. Reimbursement by the Fund of amounts previously waived or assumed by NFA is not permitted except as provided for in the Expense Limitation Agreement. Potential reimbursements by the Fund expire three years from the fiscal year in which the corresponding waiver or reimbursement was made by NFA. The Expense Limitation Agreement may be changed or eliminated at any time but only with the consent of the Board of Trustees. NFA has committed to limit its actual recoupment to 50% of the total allowable recoupment under the Expense Limitation Agreement for a period of 18 months beginning March 11, 2010. The Expense Limitation Agreement may be changed or eliminated at any time with the consent of the Board of Trustees.
 
As of June 30, 2010, the cumulative potential reimbursements, listed by the year or period in which NFA waived or reimbursed fees or expenses to the Fund, are:
 
                                     
    Period Ended
 		  Fiscal Year Ended
 		  Six Months Ended
 		       
    2008 Amount (a)   2009 Amount   June 30, 2010   Total    
 
    $ 37,906     $ —     $ —     $ 37,906      
 
 
(a) For the period from March 25, 2008 (commencement of operations) through December 31, 2008.
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Pursuant to this Expense Limitation Agreement, for the period-ended June 30, 2010, advisory fees waived were reimbursed to the NFA during the period ended in the amount of $0.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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
 
 
 
20 Semiannual Report 2010

 

 
 
daily net assets according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced Funds and NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provider a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I and Class II of the Fund.
 
For the six months ended June 30, 2010, NFS received $48,169 in Administrative Services fees from the Fund.
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $849.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of
 
 
 
2010 Semiannual Report 21

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II shares of the Fund.
 
4. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
5. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $626,334,037 and sales of $506,943,138 (excluding short-term securities).
 
6. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
Credit and Market Risk. The Fund invests in emerging market instruments that are subject to certain additional credit and market risks. The yields of emerging market debt obligations reflect, among other things, perceived credit risk. The Fund’s investment in securities rated below investment grade typically involves risks not associated with higher rated securities including, among others, greater risk of not receiving timely and/or ultimate payment of interest and principal, greater market price volatility, and less liquid secondary market trading. The consequences of political, social, economic, or diplomatic changes may have disruptive effects on the market prices of emerging market investments held by the Fund.
 
 
 
22 Semiannual Report 2010

 

 
 
7. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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.
 
8. Other
 
On April 30, 2010, the Fund acquired all of the net assets of Gartmore NVIT Global Utilities Fund and NVIT Global Financial Services Fund, each a series of the Trust, pursuant to plans of reorganization approved by the Trust’s Board of Trustees at a meeting held on December 2, 2009 and approved by the shareholders of the Gartmore NVIT Global Utilities Fund and the NVIT Global Financial Services Fund at a meeting of shareholders held on March 31, 2010. The purpose of the reorganizations was to combine funds managed by NFA that had comparable investment objectives and strategies. The reorganizations were accomplished by tax-free exchanges as follows:
 
  •  2,350,459 shares of the Fund, valued at $20,886,815, for the assets of Gartmore NVIT Global Utilities Fund, which had a fair value of $18,340,133 and identified costs of $20,903,504 as of April 30, 2010; and
 
  •  1,678,514 shares of the Fund, valued at $14,914,968, for the assets of NVIT Global Financial Services Fund, which had a fair value of $14,216,761 and identified costs of $10,670,506 as of April 30, 2010.
 
The investment portfolios of Gartmore NVIT Global Utilities Fund and NVIT Global Financial Services Fund, with a fair value of $18,340,133 and $14,216,761, respectively and identified costs of $20,903,504 and $10,670,506, respectively, were the principal assets acquired by the Fund. For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value; however, the cost basis of the investments received was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. Immediately prior to the reorganizations, the net assets of the Fund were $427,543,545.
 
The following pro forma information for the six months ended June 30, 2010 is provided as though the reorganizations had been completed on January 1, 2010, the beginning of the annual reporting period of the Fund:
 
  •  Net investment income $2,998,294;
 
  •  Net gain on investments ($33,079,812); and
 
  •  Net increase in net assets resulting from operations ($30,081,518).
 
Because the Fund’s combined investment portfolio has been managed as a single integrated portfolio since the reorganizations were completed, it is not practicable to separate the amounts of revenue and earnings of Gartmore NVIT Global Utilities Fund and NVIT Global Financial Services that have been included in the Fund’s Statement of Operations since April 30, 2010.
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
9. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
            Net
 		   
            Unrealized
 		   
    Unrealized
 		  Unrealized
 		  Appreciation/
 		   
Tax Cost of Securities   Appreciation   Depreciation   (Depreciation)    
 
$ 447,002,016     $ 6,436,425     $ (34,287,201)     $ (27,850,776)      
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (discussed above under “Bank Loans and Earnings Credits”).
 
 
 
24 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 25

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager Large Cap Value Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., Deutsche Investment Management Americas Inc. (“Deutsche”), Goldman Sachs Asset Management, LP (“Goldman Sachs”), and Wellington Management Company, LLP (“Wellington”)), and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that the Fund passed NFA’s performance and expense screens. With respect to performance, Mr. Wetmore noted that, for the one-year period ended September 30, 2009, the Fund’s performance for Class II shares was in the first quintile of its Peer Group and outperformed its benchmark, the Russell 1000 Value Index. In light of the Fund’s relatively short performance history, the Trustees took into consideration Deutsche’s, Goldman Sachs’, and Wellington’s performance and services over longer periods regarding the management of comparable accounts, as was the case upon initial approval of each sub-adviser.
 
The Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the second quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees noted that shareholders of the Fund received the benefit of an expense cap (excluding 12b-1 and administrative service fees) and an advisory fee waiver. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
Approval of New Sub-Advisory Agreement
 
At the June 16, 2010 meeting of the Board of Trustees, the Board, including the Independent Trustees, discussed and unanimously approved the replacement of Deutsche as a sub-adviser to the Fund with The Boston Company Asset Management, LLC (“The Boston Company”) as a sub-adviser to the Fund. The Trustees were provided with detailed materials relating to The Boston Company in advance of and at these meetings. The material factors and conclusions that formed the basis for the approval are discussed below.
 
The Board reviewed Deutsche’s performance record for the one- and two-year periods ended March 31, 2010, noting that the Fund sleeve managed by Deutsche had underperformed relative to the Fund’s benchmark and Lipper peer group. The Trustees also noted that Deutsche had recently announced that most of the members of the investment team managing the Deutsche Fund sleeve would be leaving to form a new company, and that Deutsche had no plans to replace them. The Board then reviewed The Boston Company’s investment
 
 
 
26 Semiannual Report 2010

 

 
 
strategy for large cap value investments, as well as The Boston Company’s process and historical composite performance record with respect to such investments. The Board also examined and considered the experience of the investment personnel of The Boston Company that would be managing the Fund. The Trustees concluded that the historical investment performance record of The Boston Company, in combination with various other factors, supported a decision to approve the sub-advisory agreement.
 
The Board considered the Fund’s overall fee level and noted that the overall expenses of the Fund would initially remain the same under the sub-advisory agreement, as The Boston Company’s fee is paid out of the advisory fee that NFA receives from the Fund. During the discussion of The Boston Company’s sub-advisory fees, the Trustees noted that NFA would realize a benefit over the current sub-advisory fee structure with Deutsche to the extent that the assets managed by The Boston Company were to exceed $500 million, as the sub-advisory fee structure with Deutsche called for 0.25% on assets of $500 million or more, whereas the sub-advisory fee structure with The Boston Company called for 0.20% on assets at that breakpoint level. The Board secured NFA’s agreement that half of any savings generated by virtue of the new breakpoint structure would be shared with shareholders in the form of NFA fee waivers. The Board concluded that the sub-advisory fees to be paid to The Boston Company were fair and reasonable.
 
The Board reviewed the terms of the sub-advisory agreement and noted that the non-compensatory terms are substantially similar in all material respects as the terms of the sub-advisory agreements that the Trust currently has in place with other unaffiliated sub-advisers. The Board concluded that the terms were fair and reasonable.
 
Based on this information, the Board, including all of the Independent Trustees, concluded that the nature, extent and quality of the sub-advisory services to be provided by The Boston Company were appropriate for the Fund in light of its investment objective. The totality of multiple factors taken together, instead of any single factor, informed the Board’s decision. The Board of Trustees concluded that the approval of the sub-advisory agreement was in the best interests of the Fund and its shareholders and unanimously approved the sub-advisory agreement.
 
 
 
2010 Semiannual Report 27

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
28 Semiannual Report 2010

 

 
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
2010 Semiannual Report 29

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
30 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
2010 Semiannual Report 31

 

 
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NVIT Multi-Manager International Value Fund
SemiannualReport
June 30, 2010 (Unaudited)
 
       
     
Contents
       
1
   
Message to Shareholders
       
5
   
Statement of Investments
       
14
   
Statement of Assets and Liabilities
       
16
   
Statement of Operations
       
17
   
Statements of Changes in Net Assets
       
19
   
Financial Highlights
       
22
   
Notes to Financial Statements
       
33
   
Supplemental Information
       
35
   
Management Information
       
 
Statement Regarding Availability of Quarterly Portfolio Schedule.
Nationwide Variable Insurance Trust files complete schedules of portfolio holdings for each Fund with the Securities and Exchange Commission (the “Commission”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Funds’ Forms N-Q may be reviewed and copied at the Commission’s 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 makes the information on Form N-Q available to shareholders on nationwide.com/mutualfunds or upon request without charge.
 
Statement Regarding Availability of Proxy Voting Record.
Information regarding how the Fund voted proxies relating to portfolio securities held during the most recent 12-month period ended June 30 and a description of the policies and procedures the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge, upon request, by calling 800-848-0920, and on the Commission’s website at http://www.sec.gov.
 
SAR-MM-IV (8/10)
(NATIONWIDE FUNDS LOGO)

 

 
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Message to Shareholders
June 30, 2010
 
Dear Shareholder,
 
Six months ago, when I wrote to you in your Fund’s 2009 Annual Report, I cautioned against excessive enthusiasm when viewing the significant gains that the stock markets enjoyed during the last half of 2009. At that time I stated:
 
Our stance is that, amid the recent better news, we remain vigilant. More than ever, we need to help consumers develop greater financial literacy, and we must understand their changing needs and demands. The dichotomy of the very recent stock market euphoria versus the financial stress and uncertainty endured by individual investors is unsettling.
 
Unsettling it did prove to be. In the past six months, the markets have taken back some of the earlier gains. Volatility seems to be the one constant in these uncertain times. What strikes me, however, is that the more the markets appear to change — veering from one extreme to the other on an almost daily basis — the more things stay the same. The very real concerns that have plagued us during the past two years — such as unemployment, housing, the instability of financial institutions — continue to exist. Short bursts of optimism are countered by equal or greater bouts of pessimism. The reality is that we appear to be in the midst of a long, slow and difficult recovery. This is not cause for alarm, because we are in a recovery. It is, however, cause for assessing our core values and principles, which for us remain resolute.
 
We continue to believe in long-term planning and in the value of working with a professional financial advisor. We take a long-term approach to managing your Funds, and that approach includes a focus on risk management. Clearly you agree. Your decision to invest in a Nationwide variable insurance contract demonstrates prudent risk management. Risk management is the foundation for what we do at Nationwide Funds, as illustrated by the types of investment products we manage: asset allocation funds, multi-manager funds and all mutual funds managed by subadvisers.
 
So there are no new, brilliant assessments to make of the markets and the volatility we continue to endure. We remain grateful for the trust you have placed in Nationwide to manage your investments, and we will continue our careful, prudent stewardship of your assets.
 
Sincerely,
 
-s- Michael S. Spangler
Michael S. Spangler
President & CEO
Nationwide Variable Insurance Trust
 
 
 
2010 Semiannual Report 1

 

 
Important Disclosures
 
Investors should carefully consider a fund’s investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other information on Nationwide Variable Insurance Trust Funds, please contact your variable insurance contract provider or call 1-800-848-6331. Please read the Fund’s prospectus and its accompanying product prospectus carefully before investing any money.
 
Shares of Nationwide Variable Insurance Trust (NVIT) Funds are not sold to individual investors. They are sold only to separate accounts of insurance companies to fund benefits payable under variable annuity contracts and variable life insurance policies issued by life insurance companies.
 
This report is for informational purposes only, does not constitute advice, and is not intended and should not be relied upon as an offer or recommendation with respect to the purchase or sale of any security. Portfolio composition is accurate as of the date of this report and is subject to change at any time and without notice. There is no assurance that any specific securities mentioned in this report will remain in the Fund’s portfolio. A more recent listing of the Fund’s portfolio holdings can be found on the Trust’s Internet site: nationwide.com/mutualfunds.
 
Performance
 
Performance information found herein reflects only the performance of these funds, and does not indicate the performance that an investor’s sub-account may experience under that investor’s variable insurance contract. Performance returns assume reinvestment of all distributions.
 
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. To obtain performance information about the sub-account option under your insurance contract that invests in one of the Nationwide Variable Insurance Trust Funds, please contact your variable insurance carrier.
 
Market Indexes
 
Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses have been reflected. Individuals cannot invest directly in an index.
 
About Nationwide Funds Group (NFG)
 
Except where otherwise indicated, the views and opinions expressed herein are those of NFG as of the date noted, are subject to change at any time, and may not come to pass. Third-party information has been obtained from and is based on sources NFG deems to be reliable.
 
This report does not consider the specific investment objectives, financial situation and particular needs of any person. When considering an investment, please keep in mind your personal investment objectives and tolerance for risk. We recommend that you consult a financial professional or tax advisor. Nationwide Funds Group does not provide legal and tax advice.
 
Based in King of Prussia, Pa., a suburb of Philadelphia, Nationwide’s Investment Management Group (IMG) is the investment arm of Nationwide Financial Services, Inc. (NFS). IMG comprises Nationwide Funds Group (NFG) and Nationwide Investment Advisors, LLC (NIA).
 
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 Variable Insurance Trust Funds. Nationwide Fund Advisors (NFA) is the investment adviser to Nationwide Variable Insurance Trust Funds. NFA is a wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS). NFS is a wholly owned subsidiary of Nationwide Corporation. All of the common stock of Nationwide Corporation is held by Nationwide Mutual Insurance Company (95.2%) and Nationwide Mutual Fire Insurance Company (4.8%), each of which is a mutual company owned by its policyholders.
 
Distributors
 
Variable annuity and variable life insurance products are issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation (NISC), Member FINRA, One Nationwide Plaza, Columbus, OH 43215-2220. In MI only: Nationwide Investment Svcs. Corporation. NISC is affiliated with Nationwide Fund Advisors.
 
Nationwide Variable Insurance Trust Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is affiliated with Nationwide Fund Advisors.
 
Nationwide, the Nationwide Framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.
 
 
 
2 Semiannual Report 2010

 

Shareholder NVIT Multi-Manager International Value Fund
Expense Example
 
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) paid on purchase payments and redemption fees; and (2) ongoing costs, including investment advisory fees, administration fees, distribution fees and other Fund expenses. These examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. Per Securities and Exchange Commission (“SEC”) requirements, the examples assume that you had a $1,000 investment in the Class at the beginning of the reporting period and continued to hold your shares at the end of the reporting period.
 
Actual Expenses
For each Class of the Fund in the table below, the first line provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line of each Class under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
 
Hypothetical Expenses for Comparison Purposes
The second line of each Class in the table below provides information about hypothetical account values and hypothetical expenses based on the Class’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Class of the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
 
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads) or redemption fees. Therefore, the second line for each Class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs were included, your costs would have been higher. The examples also assume all dividends and distributions have been reinvested.
 
Schedule of Shareholder Expenses
Expense Analysis of a $1,000 Investment
June 30, 2010
                                         
        Beginning
 		  Ending
 		  Expenses Paid
 		  Expense Ratio
NVIT Multi-Manager
 		  Account Value ($)
 		  Account Value ($)
 		  During Period ($)
 		  During Period (%)
International Value Fund   01/01/10   06/30/10   01/01/10 - 06/30/10 a   01/01/10 - 06/30/10 a
 
Class I Shares
    Actual       1,000.00       833.40       4.50       0.99  
      Hypothetical b     1,000.00       1,019.89       4.96       0.99  
 
 
Class II Shares
    Actual       1,000.00       833.20       5.64       1.24  
      Hypothetical b     1,000.00       1,018.65       6.21       1.24  
 
 
Class III Shares
    Actual       1,000.00       833.80       4.50       0.99  
      Hypothetical b     1,000.00       1,019.89       4.96       0.99  
 
 
Class IV Shares
    Actual       1,000.00       834.30       4.50       0.99  
      Hypothetical b     1,000.00       1,019.89       4.96       0.99  
 
 
Class VI Shares
    Actual       1,000.00       832.60       5.63       1.24  
      Hypothetical b     1,000.00       1,018.65       6.21       1.24  
 
 
Class Y Shares
    Actual       1,000.00       833.60       3.82       0.84  
      Hypothetical b     1,000.00       1,020.63       4.21       0.84  
 
 
 
a Expenses are equal to the Fund’s annualized expense ratio multiplied by the average account value over the period 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.
 
b Represents the hypothetical 5% return before expenses.
 
 
 
2010 Semiannual Report 3

 

Portfolio Summary NVIT Multi-Manager International Value Fund
June 30, 2010 (Unaudited)
 
         
Asset Allocation    
 
Common Stocks
    95 .2%
Mutual Fund
    4 .5%
Repurchase Agreements
    3 .0%
Preferred Stocks
    0 .9%
Liabilities in excess of other assets
    (3 .6)%
         
      100 .0%
         
Top Industries †    
 
Commercial Banks
    12 .8%
Oil, Gas & Consumable Fuels
    8 .5%
Pharmaceuticals
    6 .4%
Diversified Telecommunication Services
    5 .6%
Metals & Mining
    4 .9%
Insurance
    4 .9%
Automobiles
    3 .1%
Wireless Telecommunication Services
    3 .0%
Trading Companies & Distributors
    2 .7%
Multi-Utilities
    2 .6%
Other Industries *
    45 .5%
         
      100 .0%
         
Top Holdings †    
 
Invesco Liquid Assets Portfolio — Institutional Class
    4 .4%
Royal Dutch Shell PLC, Class A
    3 .3%
Vodafone Group PLC
    2 .7%
Sanofi-Aventis SA
    1 .9%
BNP Paribas
    1 .7%
Telefonica SA
    1 .7%
Allianz SE
    1 .6%
UniCredit SpA
    1 .5%
HSBC Holdings PLC
    1 .5%
Bayer AG
    1 .3%
Other Holdings *
    78 .4%
         
      100 .0%
         
Top Countries †    
 
Japan
    19 .8%
United Kingdom
    17 .4%
France
    13 .5%
Germany
    9 .4%
Netherlands
    6 .5%
United States
    4 .4%
Switzerland
    3 .4%
Italy
    3 .2%
Australia
    3 .0%
Spain
    2 .4%
Other Countries
    17 .0%
         
      100 .0%
 
 
† Percentages indicated are based upon total investments as of June 30, 2010.
 
* For purposes of listing top industries, top holdings and top countries, the repurchase agreements are included as part of Other.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
4 Semiannual Report 2010

 

Statement of Investments
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Value Fund
 
                 
Common Stocks 95.2%
                 
      Shares       Market
Value 		 
 
 
AUSTRALIA 3.1%
Capital Markets 0.3%
Macquarie Group Ltd.
    25,500     $ 783,781  
                 
Commercial Banks 1.3%
Australia & New Zealand Banking Group Ltd. (a)
    73,000       1,311,181  
National Australia Bank Ltd.
    119,600       2,312,376  
                 
              3,623,557  
                 
Construction Materials 0.2%
Boral Ltd.
    125,900       504,312  
                 
Diversified Telecommunication Services 0.2%
Telstra Corp. Ltd.
    271,500       740,041  
                 
Insurance 0.6%
Insurance Australia Group Ltd. (a)
    178,400       507,475  
QBE Insurance Group Ltd.
    89,863       1,363,587  
                 
              1,871,062  
                 
Metals & Mining 0.2%
BHP Billiton Ltd.
    17,600       547,528  
                 
Oil, Gas & Consumable Fuels 0.3%
Santos Ltd.
    88,092       920,606  
                 
              8,990,887  
                 
 
 
AUSTRIA 0.3%
Oil, Gas & Consumable Fuels 0.3%
OMV AG
    29,800       894,910  
                 
 
 
BELGIUM 0.6%
Commercial Banks 0.6%
KBC Groep NV*
    47,614       1,825,056  
                 
 
 
BRAZIL 0.1%
Commercial Banks 0.1%
Banco do Brasil SA
    24,300       336,430  
                 
 
 
CANADA 2.5%
Aerospace & Defense 0.2%
Bombardier, Inc., Class B
    128,500       584,228  
                 
Commercial Banks 0.4%
National Bank of Canada
    7,400       378,498  
Toronto-Dominion Bank
    10,400       673,892  
                 
              1,052,390  
                 
Insurance 0.1%
Industrial Alliance Insurance & Financial Services, Inc.
    13,300       436,025  
                 
Metals & Mining 0.5%
First Quantum Minerals Ltd.
    18,306       920,846  
Lundin Mining Corp.*
    168,100       475,300  
                 
              1,396,146  
                 
Oil, Gas & Consumable Fuels 1.3%
EnCana Corp. (a)
    26,900       814,669  
Nexen, Inc.
    65,807       1,294,442  
Penn West Energy Trust
    25,800       491,983  
Suncor Energy, Inc.
    35,072       1,032,179  
                 
              3,633,273  
                 
              7,102,062  
                 
 
 
CHINA 0.6%
Commercial Banks 0.5%
China Merchants Bank Co. Ltd., H Shares, Class H (a)
    611,500       1,462,892  
                 
Oil, Gas & Consumable Fuels 0.1%
Yanzhou Coal Mining Co. Ltd., Class H (a)
    188,000       361,493  
                 
              1,824,385  
                 
 
 
DENMARK 0.7%
Beverages 0.3%
Carlsberg AS, Class B
    12,425       946,897  
                 
Commercial Banks 0.4%
Danske Bank AS*
    57,900       1,114,136  
                 
              2,061,033  
                 
 
 
FINLAND 0.6%
Communications Equipment 0.6%
Nokia OYJ
    192,600       1,569,846  
                 
 
 
FRANCE 14.0%
Auto Components 0.5%
Compagnie Generale des Etablissements Michelin, Class B
    19,167       1,335,408  
                 
Beverages 0.5%
Pernod-Ricard SA (a)
    19,610       1,521,053  
                 
Building Products 0.0%†
Cie de Saint-Gobain
    229       8,534  
                 
Chemicals 0.7%
Arkema SA
    15,500       539,460  
Rhodia SA
    85,491       1,416,474  
                 
              1,955,934  
                 
Commercial Banks 2.2%
BNP Paribas (a)
    93,924       5,053,186  
Societe Generale
    32,570       1,340,220  
                 
              6,393,406  
                 
Construction & Engineering 1.1%
Bouygues SA
    80,383       3,102,904  
                 
Construction Materials 0.4%
Lafarge SA (a)
    23,030       1,255,773  
                 
Diversified Telecommunication Services 0.5%
France Telecom SA
    85,100       1,476,053  
                 
 
 
 
2010 Semiannual Report 5

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
FRANCE (continued)
                 
Electric Utilities 0.4%
EDF SA
    29,700     $ 1,129,985  
                 
Electrical Equipment 0.5%
Schneider Electric SA
    13,275       1,340,775  
                 
Energy Equipment & Services 0.2%
Cie Generale de Geophysique-Veritas*
    25,300       450,084  
                 
Food & Staples Retailing 0.5%
Casino Guichard Perrachon SA (a)
    17,400       1,320,397  
                 
Hotels, Restaurants & Leisure 0.5%
Sodexo
    27,408       1,521,059  
                 
Information Technology Services 0.4%
Cap Gemini SA
    29,400       1,292,118  
                 
Insurance 0.8%
AXA SA
    151,778       2,318,727  
                 
Machinery 0.3%
Vallourec SA (a)
    5,318       916,928  
                 
Media 1.0%
Lagardere SCA
    29,000       904,489  
Vivendi SA
    91,660       1,862,723  
                 
              2,767,212  
                 
Multiline Retail 0.5%
PPR
    12,509       1,553,906  
                 
Multi-Utilities 0.9%
GDF Suez
    92,163       2,622,092  
                 
Pharmaceuticals 2.0%
Sanofi-Aventis SA
    92,975       5,599,633  
                 
Trading Companies & Distributors 0.1%
Rexel SA*
    14,400       200,931  
                 
              40,082,912  
                 
 
 
GERMANY 9.1%
Automobiles 1.5%
Bayerische Motoren Werke AG
    45,200       2,195,661  
Daimler AG REG*
    40,045       2,025,696  
                 
              4,221,357  
                 
Capital Markets 1.2%
Deutsche Bank AG REG
    63,627       3,573,879  
                 
Chemicals 0.6%
Lanxess AG
    43,377       1,825,801  
                 
Electric Utilities 0.8%
E.ON AG
    83,600       2,247,855  
                 
Health Care Providers & Services 0.1%
Celesio AG
    11,700       255,125  
                 
Industrial Conglomerates 0.9%
Siemens AG REG
    29,005       2,594,199  
                 
Insurance 2.1%
Allianz SE REG
    49,082       4,857,811  
Muenchener Rueckversicherungs AG REG
    8,900       1,117,510  
                 
              5,975,321  
                 
Metals & Mining 0.3%
ThyssenKrupp AG
    33,100       815,688  
                 
Pharmaceuticals 1.4%
Bayer AG
    69,767       3,898,679  
                 
Transportation Infrastructure 0.2%
Hamburger Hafen und Logistik AG (a)
    19,645       628,741  
                 
              26,036,645  
                 
 
 
GREECE 0.0%†
Metals & Mining 0.0%†
Sidenor Steel Manufacturing Co. SA*
    25,553       65,676  
                 
 
 
HONG KONG 2.1%
Industrial Conglomerates 0.7%
Hutchison Whampoa Ltd.
    314,000       1,932,378  
                 
Real Estate Management & Development 0.8%
New World Development Ltd.
    535,487       869,336  
Sun Hung Kai Properties Ltd.
    104,000       1,422,302  
                 
              2,291,638  
                 
Specialty Retail 0.3%
Esprit Holdings Ltd.
    196,100       1,053,324  
                 
Trading Companies & Distributors 0.3%
Noble Group Ltd.
    642,908       777,073  
                 
              6,054,413  
                 
 
 
INDIA 0.3%
Metals & Mining 0.3%
Hindalco Industries Ltd.
    80,900       248,681  
Tata Steel Ltd.
    57,000       590,102  
                 
              838,783  
                 
 
 
INDONESIA 0.3%
Diversified Telecommunication Services 0.3%
Telekomunikasi Indonesia Tbk PT
    975,000       826,423  
                 
 
 
IRELAND 0.4%
Professional Services 0.4%
Experian PLC
    126,034       1,096,031  
                 
 
 
ITALY 3.3%
Commercial Banks 1.6%
UniCredit SpA
    2,079,324       4,599,541  
                 
Diversified Telecommunication Services 0.7%
Telecom Italia SpA
    1,196,600       1,321,468  
Telecom Italia SpA — RSP
    606,200       553,739  
                 
              1,875,207  
                 
 
 
 
6 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
ITALY (continued)
                 
Gas Utilities 0.4%
Snam Rete Gas SpA
    322,646     $ 1,287,613  
                 
Oil, Gas & Consumable Fuels 0.6%
ENI SpA
    91,100       1,672,238  
                 
              9,434,599  
                 
 
 
JAPAN 20.5%
Auto Components 0.8%
Aisin Seiki Co., Ltd.
    49,300       1,327,282  
NGK Spark Plug Co., Ltd.
    72,000       893,865  
                 
              2,221,147  
                 
Automobiles 1.1%
Nissan Motor Co., Ltd.*
    447,200       3,116,304  
                 
Beverages 0.3%
Asahi Breweries Ltd.
    54,600       924,981  
                 
Building Products 0.2%
Nippon Sheet Glass Co. Ltd.
    268,000       655,641  
                 
Chemicals 0.7%
Denki Kagaku Kogyo KK
    77,000       358,402  
DIC Corp.
    229,000       352,883  
Mitsubishi Gas Chemical Co., Inc.
    105,000       509,122  
Nippon Shokubai Co. Ltd.
    38,000       360,457  
ZEON CORP NPV
    61,000       357,420  
                 
              1,938,284  
                 
Commercial Banks 1.3%
Sumitomo Mitsui Financial Group, Inc.
    135,237       3,827,527  
                 
Computers & Peripherals 1.3%
Fujitsu Ltd.
    277,000       1,731,478  
Toshiba Corp.*
    398,000       1,971,522  
                 
              3,703,000  
                 
Consumer Finance 0.5%
ORIX Corp.
    20,010       1,449,620  
                 
Diversified Telecommunication Services 0.7%
Nippon Telegraph & Telephone Corp.
    50,600       2,061,236  
                 
Electric Utilities 0.6%
Tokyo Electric Power Co., Inc. (The)
    69,800       1,898,801  
                 
Electrical Equipment 0.6%
Mitsubishi Electric Corp.
    213,000       1,662,447  
                 
Electronic Equipment, Instruments & Components 0.9%
FUJIFILM Holdings Corp.
    77,800       2,248,379  
Murata Manufacturing Co., Ltd.
    9,200       438,730  
                 
              2,687,109  
                 
Food & Staples Retailing 0.3%
AEON Co., Ltd.
    74,300       786,193  
                 
Gas Utilities 0.4%
Tokyo Gas Co., Ltd.
    262,000       1,196,067  
                 
Household Durables 0.9%
Sharp Corp.
    116,000       1,223,642  
Sony Corp.
    51,000       1,360,323  
                 
              2,583,965  
                 
Leisure Equipment & Products 0.1%
Namco Bandai Holdings, Inc.
    22,700       199,607  
                 
Machinery 0.5%
Kubota Corp.
    186,000       1,426,677  
                 
Metals & Mining 0.7%
Dowa Holdings Co. Ltd.
    74,000       354,537  
JFE Holdings, Inc.
    30,600       946,672  
Mitsubishi Materials Corp.*
    255,000       677,795  
                 
              1,979,004  
                 
Multiline Retail 0.1%
Takashimaya Co., Ltd.
    32,000       255,080  
                 
Office Electronics 0.9%
Konica Minolta Holdings, Inc.
    81,500       784,052  
Ricoh Co., Ltd.
    140,000       1,785,213  
                 
              2,569,265  
                 
Oil, Gas & Consumable Fuels 0.5%
JX Holdings, Inc.*
    301,900       1,492,171  
                 
Personal Products 0.4%
Shiseido Co. Ltd.
    50,600       1,115,289  
                 
Pharmaceuticals 0.2%
Mitsubishi Tanabe Pharma Corp.
    37,000       563,736  
                 
Real Estate Management & Development 0.8%
Mitsui Fudosan Co., Ltd.
    89,000       1,238,744  
Sumitomo Realty & Development Co., Ltd.
    56,000       951,548  
                 
              2,190,292  
                 
Road & Rail 1.2%
East Japan Railway Co.
    43,500       2,896,472  
Nippon Express Co. Ltd.
    98,000       441,595  
                 
              3,338,067  
                 
Software 0.8%
Konami Corp.
    20,400       314,623  
Nintendo Co., Ltd.
    6,700       1,967,182  
                 
              2,281,805  
                 
Tobacco 0.9%
Japan Tobacco, Inc.
    864       2,687,987  
                 
Trading Companies & Distributors 2.4%
ITOCHU Corp.
    145,000       1,133,532  
Marubeni Corp.
    291,000       1,491,783  
Mitsubishi Corp.
    68,300       1,413,021  
Mitsui & Co., Ltd.
    246,300       2,873,284  
                 
              6,911,620  
                 
 
 
 
2010 Semiannual Report 7

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Value Fund (Continued)
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
JAPAN (continued)
                 
Wireless Telecommunication Services 0.4%
KDDI Corp.
    226     $ 1,077,271  
                 
              58,800,193  
                 
 
 
LUXEMBOURG 0.4%
Metals & Mining 0.4%
ArcelorMittal
    45,139       1,210,709  
                 
 
 
NETHERLANDS 6.7%
Diversified Financial Services 0.7%
ING Groep NV CVA-NL*
    286,252       2,118,412  
                 
Diversified Telecommunication Services 0.5%
Koninklijke (Royal) KPN NV
    114,632       1,461,159  
                 
Food & Staples Retailing 0.2%
Koninklijke Ahold NV (b)
    40,800       504,691  
                 
Food Products 0.7%
Unilever NV CVA-NL
    77,101       2,105,568  
                 
Industrial Conglomerates 0.7%
Koninklijke Philips Electronics NV
    62,451       1,864,916  
                 
Oil, Gas & Consumable Fuels 3.4%
Royal Dutch Shell PLC, Class A
    389,525       9,814,579  
                 
Professional Services 0.5%
Randstad Holding NV*
    34,400       1,351,755  
                 
              19,221,080  
                 
 
 
NEW ZEALAND 0.1%
Diversified Telecommunication Services 0.1%
Telecom Corp. of New Zealand Ltd.
    302,104       387,634  
                 
 
 
NORWAY 0.6%
Commercial Banks 0.5%
DnB NOR ASA
    143,004       1,375,441  
                 
Energy Equipment & Services 0.1%
Petroleum Geo-Services ASA*
    41,800       348,419  
                 
              1,723,860  
                 
 
 
POLAND 0.1%
Metals & Mining 0.1%
KGHM Polska Miedz SA
    14,800       382,308  
                 
 
 
PORTUGAL 0.5%
Electric Utilities 0.5%
EDP — Energias de Portugal SA
    513,385       1,527,855  
                 
RUSSIA 0.4%
Oil, Gas & Consumable Fuels 0.4%
Gazprom OAO ADR-RU
    18,100       340,461  
LUKOIL Holdings ADR-RU
    13,900       715,850  
                 
              1,056,311  
                 
SINGAPORE 0.5%
Diversified Telecommunication Services 0.5%
Singapore Telecommunications Ltd. (a)
    687,000       1,485,235  
                 
 
 
SOUTH AFRICA 0.6%
Diversified Financial Services 0.5%
African Bank Investments Ltd.
    366,693       1,439,151  
                 
Industrial Conglomerates 0.1%
Bidvest Group Ltd.
    13,584       214,983  
                 
              1,654,134  
                 
 
 
SOUTH KOREA 1.0%
Commercial Banks 0.3%
Hana Financial Group, Inc.
    11,500       304,928  
KB Financial Group, Inc.
    11,746       450,234  
                 
              755,162  
                 
Household Durables 0.5%
LG Electronics, Inc.
    18,299       1,391,529  
                 
Semiconductors & Semiconductor Equipment 0.2%
Samsung Electronics Co., Ltd.
    1,170       733,840  
                 
              2,880,531  
                 
 
 
SPAIN 2.5%
Commercial Banks 0.8%
Banco Bilbao Vizcaya Argentaria SA
    223,359       2,301,252  
                 
Diversified Telecommunication Services 1.7%
Telefonica SA
    262,651       4,865,528  
                 
              7,166,780  
                 
 
 
SWEDEN 0.2%
Household Durables 0.2%
Electrolux AB
    19,900       454,930  
                 
 
 
SWITZERLAND 3.5%
Insurance 1.0%
Zurich Financial Services AG
    12,853       2,832,976  
                 
Media 0.3%
Informa PLC
    165,000       871,753  
                 
Metals & Mining 0.7%
Xstrata PLC
    166,530       2,180,653  
                 
Pharmaceuticals 1.5%
Novartis AG REG
    60,810       2,947,043  
Roche Holding AG
    9,213       1,268,093  
                 
              4,215,136  
                 
              10,100,518  
                 
 
 
 
8 Semiannual Report 2010

 

 
 
 
                 
Common Stocks (continued)
      Shares       Market
Value 		 
 
 
                 
TAIWAN 0.8%
Electronic Equipment & Instruments 0.4%
Hon Hai Precision Industry Co., Ltd. GDR-TW* (a)
    170,110     $ 1,223,928  
                 
Electronic Equipment, Instruments & Components 0.2%
AU Optronics Corp.
    609,000       539,233  
                 
Semiconductors & Semiconductor Equipment 0.2%
United Microelectronics Corp*
    1,003,000       441,442  
                 
              2,204,603  
                 
 
 
TURKEY 0.8%
Commercial Banks 0.8%
Turkiye Garanti Bankasi AS
    421,607       1,754,574  
Turkiye Vakiflar Bankasi Tao, Class D
    179,400       407,935  
                 
              2,162,509  
                 
 
 
UNITED KINGDOM 18.0%
Aerospace & Defense 1.0%
BAE Systems PLC
    268,600       1,250,123  
Rolls-Royce Group PLC*
    173,600       1,449,003  
Rolls-Royce Group PLC, Class C* (b)
    15,624,000       23,344  
                 
              2,722,470  
                 
Auto Components 0.4%
GKN PLC*
    625,753       1,076,644  
                 
Commercial Banks 2.5%
Barclays PLC
    432,600       1,726,725  
HSBC Holdings PLC
    487,732       4,455,776  
Lloyds Banking Group PLC*
    1,271,517       1,003,821  
                 
              7,186,322  
                 
Commercial Services & Supplies 0.3%
Rentokil Initial PLC*
    504,300       808,182  
                 
Distributors 0.1%
Inchcape PLC*
    86,730       316,912  
                 
Diversified Telecommunication Services 0.5%
BT Group PLC
    761,423       1,469,772  
                 
Food Products 0.1%
Premier Foods PLC*
    511,400       145,892  
                 
Hotels, Restaurants & Leisure 0.8%
Intercontinental Hotels Group PLC(b)
    100,525       1,584,285  
Thomas Cook Group PLC
    117,400       310,743  
Tui Travel PLC
    132,300       411,611  
                 
              2,306,639  
                 
Industrial Conglomerates 0.3%
Cookson Group PLC*
    153,576       882,790  
                 
Insurance 0.4%
Old Mutual PLC
    732,900       1,122,105  
                 
Metals & Mining 1.6%
Eurasian Natural Resources Corp. PLC
    35,700       454,277  
Kazakhmys PLC
    44,700       656,149  
Petropavlovsk PLC
    46,316       817,217  
Rio Tinto PLC
    59,000       2,590,949  
                 
              4,518,592  
                 
Multiline Retail 0.5%
Marks & Spencer Group PLC
    265,600       1,308,455  
                 
Multi-Utilities 1.7%
Centrica PLC(b)
    492,179       2,171,997  
National Grid PLC
    386,827       2,824,211  
                 
              4,996,208  
                 
Oil, Gas & Consumable Fuels 1.9%
BP PLC
    762,287       3,649,195  
Cairn Energy PLC*
    294,101       1,806,783  
                 
              5,455,978  
                 
Pharmaceuticals 1.6%
AstraZeneca PLC
    65,300       3,078,624  
GlaxoSmithKline PLC (b)
    95,588       1,623,167  
                 
              4,701,791  
                 
Road & Rail 0.2%
Firstgroup PLC
    106,900       580,272  
                 
Specialty Retail 0.1%
Travis Perkins PLC*
    38,500       418,809  
                 
Tobacco 1.3%
British American Tobacco PLC
    66,700       2,116,778  
Imperial Tobacco Group PLC
    60,900       1,701,588  
                 
              3,818,366  
                 
Wireless Telecommunication Services 2.7%
Vodafone Group PLC
    3,811,105       7,852,753  
                 
              51,688,952  
                 
         
Total Common Stocks (cost $313,354,242)
    273,148,233  
         
                 
                 
Preferred Stocks 0.9%
                 
                 
                 
                 
BRAZIL 0.3%
Metals & Mining 0.3%
Vale SA ADR-BR
    33,100       695,762  
                 
 
 
GERMANY 0.6%
Automobiles 0.6%
Volkswagen AG
    20,030       1,757,645  
                 
         
Total Preferred Stocks (cost $2,742,004)
    2,453,407  
         
 
 
 
2010 Semiannual Report 9

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Value Fund (Continued)
 
                 
                 
                 
Mutual Fund 4.5%
                 
      Shares       Market
Value 		 
 
 
                 
                 
Money Market Fund 4.5%
Invesco Liquid Assets Portfolio — Institutional Class, 0.21% (c)
    13,048,759     $ 13,048,759  
                 
         
Total Mutual Fund (cost $13,048,759)
    13,048,759  
         
                 
                 
Repurchase Agreements 3.0%
 
                 
      Principal
Amount 		      Market
Value 		 
 
 
Morgan Stanley, 0.03%, dated 06/30/10, due 07/01/10, repurchase price $6,526,640, collateralized by U.S. Government Agency Securities 4.00%–8.50%, maturing 03/01/15–06/01/40; total market value of $6,657,401 (d)
  $ 6,526,634       6,526,634  
Barclays Capital, 0.01%, dated 06/30/10, due 07/01/10, repurchase price $2,000,001, collateralized by U.S. Government Treasury Securities 1.88%, maturing 06/30/15; total market value $2,040,000 (d)
    2,000,000       2,000,000  
                 
         
Total Repurchase Agreements (cost $8,526,634)
    8,526,634  
         
         
Total Investments
(cost $337,671,639) (e) — 103.6%
    297,177,033  
         
Liabilities in excess of other assets — (3.6)%
    (10,268,124 )
         
         
NET ASSETS — 100.0%
  $ 286,908,909  
         
 
* Denotes a non-income producing security.
 
(a) The security or a portion of this security is on loan at June 30, 2010. The total value of securities on loan at June 30, 2010 was $8,042,135.
 
(b) Fair Valued Security.
 
(c) Represents 7-day effective yield as of June 30, 2010.
 
(d) The security was purchased with cash collateral held from securities on loan. The total value of securities purchased with cash collateral as of June 30, 2010, was $8,526,634.
 
(e) See notes to financial statements for tax unrealized appreciation/(depreciation) of securities.
 
† Amount rounds to less than 0.1%.
 
AB Stock Company
 
ADR American Depositary Receipt
 
AG Stock Corporation
 
AS Stock Corporation
 
ASA Stock Corporation
 
BR Brazil
 
CVA Dutch Certificate
 
GDR Global Depositary Receipt
 
KK Joint Stock Company
 
Ltd. Limited
 
NL Netherlands
 
NV Public Traded Company
 
OYJ Public Traded Company
 
PLC Public Limited Company
 
PT Limited Liability Company
 
REG Registered Shares
 
RU Russia
 
RSP Savings Shares
 
SA Stock Company
 
SCA Limited partnership with share capital
 
SE Sweden
 
SpA Limited Share Company
 
TW Taiwan
 
 
 
10 Semiannual Report 2010

 

 
 
 
 
At June 30, 2010, the Fund’s open forward foreign currency contracts against the United States Dollar were as follows (Note 2):
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Short Contracts:
Australian Dollar
  JPMorgan Chase Bank   7/15/10     (447,000 )   $ (409,108 )   $ (375,681 )   $ 33,427  
Australian Dollar
  JPMorgan Chase Bank   7/15/10     (7,334,000 )     (6,518,973 )     (6,163,861 )     355,112  
Australian Dollar
  JPMorgan Chase Bank   7/15/10     (1,392,000 )     (1,206,947 )     (1,169,906 )     37,041  
Australian Dollar
  JPMorgan Chase Bank   7/15/10     (2,794,000 )     (2,331,453 )     (2,348,217 )     (16,764 )
Australian Dollar
  HSBC Bank PLC   8/06/10     (719,464 )     (631,722 )     (603,091 )     28,631  
British Pound
  JPMorgan Chase Bank   7/15/10     (1,952,000 )     (2,931,026 )     (2,916,484 )     14,542  
British Pound
  JPMorgan Chase Bank   7/15/10     (1,015,000 )     (1,540,425 )     (1,516,512 )     23,913  
British Pound
  Citibank NA   8/06/10     (585,000 )     (893,699 )     (874,048 )     19,651  
Canadian Dollar
  JPMorgan Chase Bank   7/15/10     (727,000 )     (707,901 )     (682,862 )     25,039  
Canadian Dollar
  JPMorgan Chase Bank   7/15/10     (4,380,000 )     (4,378,468 )     (4,114,080 )     264,388  
Canadian Dollar
  JPMorgan Chase Bank   7/15/10     (669,000 )     (634,009 )     (628,383 )     5,626  
Canadian Dollar
  Barclays Bank PLC   8/06/10     (251,409 )     (240,999 )     (236,113 )     4,886  
Canadian Dollar
  JPMorgan Chase Bank   10/15/10     (694,000 )     (675,715 )     (651,449 )     24,266  
Euro
  JPMorgan Chase Bank   7/15/10     (842,000 )     (1,059,699 )     (1,029,676 )     30,023  
Euro
  JPMorgan Chase Bank   7/15/10     (15,262,000 )     (20,423,914 )     (18,663,798 )     1,760,116  
Euro
  JPMorgan Chase Bank   7/15/10     (342,000 )     (460,110 )     (418,230 )     41,880  
Euro
  Westpac Banking Corp.   8/06/10     (1,038,675 )     (1,320,247 )     (1,270,282 )     49,965  
Euro
  Citibank NA   8/06/10     (882,462 )     (1,104,425 )     (1,079,236 )     25,189  
Euro
  Goldman Sachs International   8/06/10     (1,022,750 )     (1,257,420 )     (1,250,806 )     6,614  
Euro
  Citibank NA   8/06/10     (608,277 )     (761,275 )     (743,913 )     17,362  
Euro
  HSBC Bank PLC   8/06/10     (653,653 )     (870,463 )     (799,407 )     71,056  
Euro
  Societe Generale   8/06/10     (656,627 )     (873,479 )     (803,043 )     70,436  
Euro
  State Street Bank and Trust   8/06/10     (675,727 )     (836,801 )     (826,404 )     10,397  
Euro
  Royal Bank of Scotland   8/06/10     (1,660,165 )     (2,079,333 )     (2,030,354 )     48,979  
Euro
  JPMorgan Chase Bank   10/15/10     (2,324,000 )     (2,877,089 )     (2,843,531 )     33,558  
Euro
  JPMorgan Chase Bank   10/15/10     (2,751,000 )     (3,388,682 )     (3,365,986 )     22,696  
Hong Kong Dollar
  Goldman Sachs International   8/06/10     (9,325,297 )     (1,197,931 )     (1,197,782 )     149  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (78,998,000 )     (853,737 )     (893,679 )     (39,942 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (63,789,000 )     (703,095 )     (721,624 )     (18,529 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (56,942,000 )     (636,992 )     (644,166 )     (7,174 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (66,855,000 )     (712,170 )     (756,309 )     (44,139 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     (679,381,000 )     (7,358,462 )     (7,685,618 )     (327,156 )
Japanese Yen
  Citibank NA   8/06/10     (82,557,288 )     (881,597 )     (934,280 )     (52,683 )
Japanese Yen
  JPMorgan Chase Bank   10/15/10     (76,379,000 )     (855,730 )     (865,521 )     (9,791 )
New Zealand Dollar
  JPMorgan Chase Bank   7/15/10     (2,459,000 )     (1,648,243 )     (1,685,136 )     (36,893 )
New Zealand Dollar
  JPMorgan Chase Bank   7/15/10     (572,000 )     (409,340 )     (391,987 )     17,353  
New Zealand Dollar
  JPMorgan Chase Bank   7/15/10     (1,000 )     (683 )     (686 )     (3 )
New Zealand Dollar
  JPMorgan Chase Bank   7/15/10     (6,255,000 )     (4,471,011 )     (4,286,509 )     184,502  
Norwegian Krone
  JPMorgan Chase Bank   7/15/10     (22,468,000 )     (3,435,091 )     (3,450,135 )     (15,044 )
Norwegian Krone
  JPMorgan Chase Bank   7/15/10     (2,426,000 )     (409,486 )     (372,531 )     36,955  
Norwegian Krone
  JPMorgan Chase Bank   7/15/10     (3,134,000 )     (506,243 )     (481,250 )     24,993  
Norwegian Krone
  Barclays Bank PLC   8/06/10     (1,463,701 )     (221,091 )     (224,503 )     (3,412 )
Swedish Krona
  JPMorgan Chase Bank   7/15/10     (27,726,000 )     (3,513,663 )     (3,555,804 )     (42,141 )
Swedish Krona
  JPMorgan Chase Bank   7/15/10     (2,945,000 )     (407,929 )     (377,691 )     30,238  
Swedish Krona
  JPMorgan Chase Bank   7/15/10     (2,735,000 )     (360,162 )     (350,758 )     9,404  
Swiss Franc
  JPMorgan Chase Bank   7/15/10     (1,448,000 )     (1,303,718 )     (1,343,686 )     (39,968 )
Swiss Franc
  Westpac Banking Corp.   8/06/10     (627,423 )     (567,540 )     (582,430 )     (14,890 )
                                         
Total Short Contracts
                  $ (90,867,296 )   $ (88,207,438 )   $ 2,659,858  
                                         
Long Contracts:
Australian Dollar
  JPMorgan Chase Bank   7/15/10     1,764,000     $ 1,625,674     $ 1,482,554     $ (143,120 )
Australian Dollar
  JPMorgan Chase Bank   7/15/10     12,687,000       11,586,149       10,662,789       (923,360 )
Australian Dollar
  Barclays Bank PLC   8/06/10     956,434       840,901       801,731       (39,170 )
British Pound
  JPMorgan Chase Bank   7/15/10     1,704,000       2,625,465       2,545,946       (79,519 )
 
 
 
2010 Semiannual Report 11

 

 
Statement of Investments (Continued)
June 30, 2010 (Unaudited)
 
NVIT Multi-Manager International Value Fund (Continued)
 
                                         
            Currency
 		          Unrealized
        Delivery
 		  Received/
 		  Contract
 		  Market
 		  Appreciation/
Currency   Counterparty   Date   (Delivered)   Value   Value   (Depreciation)
 
Long Contracts: (continued)
British Pound
  JPMorgan Chase Bank   7/15/10     1,263,000     $ 1,870,149     $ 1,887,048     $ 16,899  
British Pound
  HSBC Bank PLC   8/06/10     711,121       1,041,723       1,062,486       20,763  
British Pound
  Deutsche Bank Securities, Inc.   8/06/10     439,024       632,893       655,947       23,054  
British Pound
  Westpac Banking Corp.   8/06/10     907,881       1,309,286       1,356,465       47,179  
British Pound
  Westpac Banking Corp.   8/06/10     1,114,376       1,653,541       1,664,990       11,449  
British Pound
  JPMorgan Chase Bank   10/15/10     1,568,000       2,322,099       2,342,723       20,624  
British Pound
  JPMorgan Chase Bank   10/15/10     1,155,000       1,729,347       1,725,666       (3,681 )
Canadian Dollar
  JPMorgan Chase Bank   7/15/10     449,000       438,036       421,740       (16,296 )
Canadian Dollar
  Toronto Dominion Bank   8/06/10     3,965,141       3,901,814       3,723,894       (177,920 )
Canadian Dollar
  State Street Bank and Trust   8/06/10     782,759       753,907       735,135       (18,772 )
Euro
  JPMorgan Chase Bank   7/15/10     5,080,000       6,233,617       6,212,298       (21,319 )
Euro
  JPMorgan Chase Bank   7/15/10     2,026,000       2,577,072       2,477,582       (99,490 )
Hong Kong Dollar
  Societe Generale   8/06/10     5,599,926       721,877       719,279       (2,598 )
Japanese Yen
  JPMorgan Chase Bank   7/15/10     345,524,000       3,820,055       3,908,801       88,746  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     479,710,000       5,186,166       5,426,804       240,638  
Japanese Yen
  JPMorgan Chase Bank   7/15/10     120,731,000       1,334,782       1,365,791       31,009  
Japanese Yen
  Barclays Bank PLC   8/06/10     78,624,028       865,030       889,769       24,739  
Japanese Yen
  Royal Bank of Scotland   8/06/10     92,076,883       1,021,127       1,042,012       20,885  
Japanese Yen
  Royal Bank of Scotland   8/06/10     186,736,436       1,992,924       2,113,250       120,326  
Japanese Yen
  Citibank NA   8/06/10     68,772,350       754,536       778,280       23,744  
Japanese Yen
  Barclays Bank PLC   8/06/10     95,665,066       1,040,132       1,082,618       42,486  
Japanese Yen
  HSBC Bank PLC   8/06/10     63,920,464       703,494       723,372       19,878  
Japanese Yen
  Barclays Bank PLC   8/06/10     91,796,277       1,009,952       1,038,836       28,884  
Japanese Yen
  Royal Bank of Scotland   8/06/10     88,003,777       980,685       995,917       15,232  
New Zealand Dollar
  JPMorgan Chase Bank   7/15/10     9,287,000       6,443,320       6,364,319       (79,001 )
New Zealand Dollar
  JPMorgan Chase Bank   10/15/10     1,088,000       760,784       740,203       (20,581 )
New Zealand Dollar
  JPMorgan Chase Bank   10/15/10     5,161,000       3,616,416       3,511,200       (105,216 )
Norwegian Krone
  JPMorgan Chase Bank   7/15/10     4,529,000       760,486       695,463       (65,023 )
Norwegian Krone
  JPMorgan Chase Bank   7/15/10     4,925,000       834,075       756,272       (77,803 )
Norwegian Krone
  JPMorgan Chase Bank   7/15/10     39,948,000       6,638,086       6,134,324       (503,762 )
Norwegian Krone
  JPMorgan Chase Bank   10/15/10     27,710,000       4,245,474       4,235,350       (10,124 )
Swedish Krona
  JPMorgan Chase Bank   7/15/10     4,179,000       585,786       535,948       (49,838 )
Swedish Krona
  JPMorgan Chase Bank   7/15/10     6,356,000       888,224       815,144       (73,080 )
Swedish Krona
  JPMorgan Chase Bank   7/15/10     49,338,000       6,826,691       6,327,499       (499,192 )
Swedish Krona
  Royal Bank of Canada   8/06/10     5,477,595       703,188       702,486       (702 )
Swedish Krona
  Barclays Bank PLC   8/06/10     5,066,668       688,146       649,785       (38,361 )
Swedish Krona
  JPMorgan Chase Bank   10/15/10     19,772,000       2,540,748       2,535,576       (5,172 )
Swiss Franc
  JPMorgan Chase Bank   7/15/10     2,594,000       2,450,383       2,407,127       (43,256 )
Swiss Franc
  JPMorgan Chase Bank   7/15/10     1,967,000       1,827,353       1,825,296       (2,057 )
Swiss Franc
  UBS AG   8/06/10     710,576       631,387       659,620       28,233  
                                         
Total Long Contracts
                  $ 101,012,980     $ 98,739,335     $ (2,273,645 )
                                         
 
At June 30, 2010, the Fund’s open forward foreign currency contracts were as follows (Note 2)
 
                                             
                                Unrealized
    Delivery
 		      Currency
 		      Currency
 		  Market
 		  Contract
 		  Appreciation/
Counterparty   Date       Received       Delivered   Value   Value   (Depreciation)
 
Westpac Banking Corp.
  8/06/10   469,699   Canadian Dollar   (525,894)   Australian Dollar   $ 440,831     $ 441,122     $ 291  
Westpac Banking Corp.
  8/06/10   468,629   Euro   (690,054)   Australian Dollar     578,438       573,126       (5,312 )
Citibank NA
  8/06/10   10,208,212   Canadian Dollar   (6,612,521)   British Pound     9,879,768       9,587,126       (292,642 )
Morgan Stanley Co., Inc.
  8/06/10   1,261,063   Euro   (1,053,532)   British Pound     1,574,083       1,542,259       (31,824 )
Credit Suisse International
  8/06/10   1,819,194   Swiss Franc   (1,079,045)   British Pound     1,612,201       1,688,739       76,538  
Westpac Banking Corp.
  8/06/10   12,748,476   Australian Dollar   (11,760,852)   Canadian Dollar     11,045,300       10,686,410       (358,890 )
UBS AG
  8/06/10   4,034,176   Euro   (5,385,019)   Canadian Dollar     5,057,385       4,933,729       (123,656 )
State Street Bank and Trust
  8/06/10   1,203,359   Norwegian Krone   (204,290)   Canadian Dollar     191,861       184,572       (7,289 )
HSBC Bank PLC
  8/06/10   1,120,766   Singapore Dollar   (828,581)   Canadian Dollar     778,169       801,024       22,855  
 
 
 
12 Semiannual Report 2010

 

 
 
 
                                             
                                Unrealized
    Delivery
 		      Currency
 		      Currency
 		  Market
 		  Contract
 		  Appreciation/
Counterparty   Date       Received       Delivered   Value   Value   (Depreciation)
 
State Street Bank and Trust
  8/06/10   18,743,666   Swedish Krona   (2,611,231)   Canadian Dollar   $ 2,452,359     $ 2,403,820     $ (48,539 )
Toronto Dominion Bank
  8/06/10   139,158,490   Japanese Yen   (1,181,311)   Euro     1,444,724       1,574,822       130,098  
Royal Bank of Scotland
  8/06/10   1,031,664   Canadian Dollar   (7,879,604)   Hong Kong Dollar     1,012,091       968,896       (43,195 )
Royal Bank of Canada
  8/06/10   838,956   Canadian Dollar   (76,881,956)   Japanese Yen     870,054       787,913       (82,141 )
UBS AG
  8/06/10   2,149,206   Canadian Dollar   (2,306,098)   Swiss Franc     2,140,727       2,018,444       (122,283 )
Westpac Banking Corp.
  8/06/10   204,788   Canadian Dollar   (223,008)   Swiss Franc     207,016       192,329       (14,687 )
Morgan Stanley Co., Inc.
  8/06/10   856,718   Canadian Dollar   (1,285,955)   Turkish Lira     807,450       804,594       (2,856 )
                                             
                        $ (40,092,457 )   $ (39,188,925 )   $ (903,532 )
                                             
 
At June 30, 2010, the Fund’s open futures contracts were as follows (Note 2):
 
                             
            Notional Value
 		   
Number of
 		          Covered by
 		  Unrealized
Contracts   Long Contracts   Expiration   Contracts   Depreciation
 
60
 
DJ Euro STOXX 50
    09/17/10     $ 1,888,956     $ (96,277 )
20
 
FTSE 100 Index
    09/17/10       1,439,696       (94,119 )
13
 
Topix Index
    09/09/10       1,197,839       (52,221 )
                             
                $ 4,526,491     $ (242,617 )
                             
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 13

 

Statement of Assets and Liabilities
June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      International
 		 
      Value Fund  
       
Assets:
         
Investments, at value* (cost $329,145,005)
    $ 288,650,399  
Repurchase agreements, at value and cost
      8,526,634  
           
Total Investments
      297,177,033  
           
Cash
      21  
Foreign currencies, at value (cost $1,630,056)
      1,620,284  
Interest and dividends receivable
      736,805  
Security lending income receivable
      24,364  
Receivable for investments sold
      2,111,906  
Receivable for capital shares issued
      814,042  
Reclaims receivable
      176,997  
Unrealized appreciation on forward foreign currency contracts (Note 2)
      5,247,761  
Prepaid expenses and other assets
      2,911  
           
Total Assets
      307,912,124  
           
Liabilities:
         
Payable for investments purchased
      6,316,883  
Payable for capital shares redeemed
      87,491  
Payable for variation margin on futures contracts
      16,856  
Unrealized depreciation on forward foreign currency contracts (Note 2)
      5,765,080  
Payable upon return of securities loaned (Note 2)
      8,526,634  
Accrued expenses and other payables:
         
Investment advisory fees
      179,954  
Fund administration fees
      13,725  
Distribution fees
      9,143  
Administrative servicing fees
      28,220  
Accounting and transfer agent fees
      11,678  
Trustee fees
      115  
Custodian fees
      3,569  
Compliance program costs (Note 3)
      1,520  
Professional fees
      14,732  
Printing fees
      25,741  
Other
      1,874  
           
Total Liabilities
      21,003,215  
           
Net Assets
    $ 286,908,909  
           
Represented by:
         
Capital
    $ 493,083,723  
Accumulated undistributed net investment income
      3,229,601  
Accumulated net realized losses from investment, futures and foreign currency transactions
      (168,152,380 )
Net unrealized appreciation/(depreciation) from investments
      (40,494,606 )
Net unrealized appreciation/(depreciation) from futures (Note 2)
      (242,617 )
Net unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      (517,319 )
Net unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      2,507  
           
Net Assets
    $ 286,908,909  
           
* Includes value of securities on loan of $8,042,135 (Note 2)
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
14 Semiannual Report 2010

 

 
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      International
 		 
      Value Fund  
       
Net Assets:
         
Class I Shares
    $ 994,025  
Class II Shares
      837,694  
Class III Shares
      41,887,395  
Class IV Shares
      20,835,558  
Class VI Shares
      42,235,332  
Class Y Shares
      180,118,905  
           
Total
    $ 286,908,909  
           
Shares Outstanding (unlimited number of shares authorized):
         
Class I Shares
      121,487  
Class II Shares
      102,825  
Class III Shares
      5,139,853  
Class IV Shares
      2,548,337  
Class VI Shares
      5,208,757  
Class Y Shares
      22,036,737  
           
Total
      35,157,996  
           
Net asset value and offering price per share (Net assets by class divided by shares outstanding by class, respectively):
         
Class I Shares
    $ 8.18  
Class II Shares
    $ 8.15  
Class III Shares
    $ 8.15  
Class IV Shares
    $ 8.18  
Class VI Shares
    $ 8.11  
Class Y Shares
    $ 8.17  
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 15

 

Statement of Operations
For the Six Months Ended June 30, 2010 (Unaudited)
 
           
           
      NVIT
 		 
      Multi-Manager
 		 
      International
 		 
      Value Fund  
       
INVESTMENT INCOME:
         
Interest income
    $ 112  
Dividend income
      5,847,675  
Income from securities lending (Note 2)
      269,075  
Foreign tax withholding
      (629,945 )
           
Total Income
      5,486,917  
           
EXPENSES:
         
Investment advisory fees
      1,115,732  
Fund administration fees
      64,246  
Distribution fees Class II Shares
      1,207  
Distribution fees Class VI Shares
      57,016  
Administrative servicing fees Class I Shares
      925  
Administrative servicing fees Class II Shares
      725  
Administrative servicing fees Class III Shares
      36,826  
Administrative servicing fees Class IV Shares
      18,683  
Administrative servicing fees Class VI Shares
      34,210  
Professional fees
      20,120  
Printing fees
      18,580  
Trustee fees
      5,381  
Custodian fees
      9,692  
Accounting and transfer agent fees
      8,605  
Compliance program costs (Note 3)
      658  
Other
      6,572  
           
Total expenses before earnings credits
      1,399,178  
Earnings credit (Note 5)
      (9 )
           
Net Expenses
      1,399,169  
           
NET INVESTMENT INCOME
      4,087,748  
           
REALIZED/UNREALIZED GAINS (LOSSES) FROM INVESTMENTS:
         
Net realized losses from investment transactions
      (594,565 )
Net realized losses from futures transactions (Note 2)
      (85,364 )
Net realized gains from forward and foreign currency transactions (Note 2)
      2,100,827  
           
Net realized gains from investment, futures, forward currency and foreign currency transactions
      1,420,898  
           
Net change in unrealized appreciation/(depreciation) from investments
      (58,405,659 )
Net change in unrealized appreciation/(depreciation) from futures (Note 2)
      (214,182 )
Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts (Note 2)
      (1,303,497 )
Net change in unrealized appreciation/(depreciation) from translation of assets and liabilities denominated in foreign currencies
      (8,022 )
           
Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies
      (59,931,360 )
           
Net realized/unrealized losses from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies and foreign currency transactions
      (58,510,462 )
           
CHANGE IN NET ASSETS RESULTING FROM OPERATIONS
    $ (54,422,714 )
           
 
 
 
The accompanying notes are an integral part of these financial statements.
 
 
 
16 Semiannual Report 2010

 

Statements of Changes in Net Assets
                     
      NVIT Multi-Manager
 		 
      International Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
Operations:
                   
Net investment income
    $ 4,087,748       $ 6,162,360  
Net realized gains/(losses) from investment, futures, forward currency and foreign currency transactions
      1,420,898         (93,634,582 )
Net change in unrealized appreciation/(depreciation) from investments, futures, forward currency contracts and translation of assets and liabilities denominated in foreign currencies
      (59,931,360 )       150,518,701  
                     
Change in net assets resulting from operations
      (54,422,714 )       63,046,479  
                     
                     
Distributions to Shareholders From:
                   
Net investment income:
                   
Class I
      (1,664 )       (26,337 )
Class II
      (823 )       (17,351 )
Class III
      (70,706 )       (1,094,610 )
Class IV
      (35,117 )       (516,151 )
Class VI
      (43,117 )       (1,359,512 )
Class Y
      (372,592 )       (2,729,025 )
                     
Change in net assets from shareholder distributions
      (524,019 )       (5,742,986 )
                     
Change in net assets from capital transactions
      50,374,146         (18,786,490 )
                     
Change in net assets
      (4,572,587 )       38,517,003  
                     
                     
Net Assets:
                   
Beginning of period
      291,481,496         252,964,493  
                     
End of period
    $ 286,908,909       $ 291,481,496  
                     
Accumulated undistributed net investment income at end of period
    $ 3,229,601       $ (334,128 )
                     
                     
CAPITAL TRANSACTIONS:
                   
Class I Shares
                   
Proceeds from shares issued
    $ 8       $ 4,787  
Dividends reinvested
      1,664         26,337  
Cost of shares redeemed
      (200,377 )       (206,175 )
                     
Total Class I
      (198,705 )       (175,051 )
                     
Class II Shares
                   
Proceeds from shares issued
      71         (81 )
Dividends reinvested
      823         17,351  
Cost of shares redeemed
      (28,111 )       (260,544 )
                     
Total Class II
      (27,217 )       (243,274 )
                     
Class III Shares
                   
Proceeds from shares issued
      1,820,299         4,008,846  
Dividends reinvested
      70,706         1,094,610  
Cost of shares redeemed
      (6,019,667 )       (18,772,591 )
                     
Total Class III
      (4,128,662 )       (13,669,135 )
                     
Class IV Shares
                   
Proceeds from shares issued
      1,365,210         248,692  
Dividends reinvested
      35,117         516,151  
Cost of shares redeemed
      (3,005,240 )       (5,579,479 )
                     
Total Class IV
      (1,604,913 )       (4,814,636 )
                     
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 17

 

 
Statements of Changes in Net Assets (Continued)
 
                     
      NVIT Multi-Manager
 		 
      International Value Fund  
         
      Six Months Ended
 		      Year Ended
 		 
      June 30, 2010
 		      December 31, 2009
 		 
      (Unaudited)          
                     
CAPITAL TRANSACTIONS: (continued)
                   
Class VI Shares
                   
Proceeds from shares issued
    $ 5,377,820       $ 8,166,281  
Dividends reinvested
      43,117         1,359,512  
Cost of shares redeemed
      (1,012,996 )       (92,208,446 )
                     
Total Class VI
      4,407,941         (82,682,653 )
                     
Class Y Shares
                   
Proceeds from shares issued
      54,073,118         102,949,192  
Dividends reinvested
      372,592         2,729,025  
Cost of shares redeemed
      (2,520,008 )       (22,879,958 )
                     
Total Class Y
      51,925,702         82,798,259  
                     
Change in net assets from capital transactions
    $  50,374,146       $  (18,786,490 )
                     
                     
SHARE TRANSACTIONS:
                   
Class I Shares
                   
Issued
      –         506  
Reinvested
      189         3,080  
Redeemed
      (20,678 )       (25,686 )
                     
Total Class I Shares
      (20,489 )       (22,100 )
                     
Class II Shares
                   
Issued
      7         1  
Reinvested
      94         2,045  
Redeemed
      (2,991 )       (34,828 )
                     
Total Class II Shares
      (2,890 )       (32,782 )
                     
Class III Shares
                   
Issued
      197,551         493,300  
Reinvested
      8,071         129,205  
Redeemed
      (642,939 )       (2,333,625 )
                     
Total Class III Shares
      (437,317 )       (1,711,120 )
                     
Class IV Shares
                   
Issued
      143,367         32,187  
Reinvested
      3,995         60,526  
Redeemed
      (319,111 )       (679,003 )
                     
Total Class IV Shares
      (171,749 )       (586,290 )
                     
Class VI Shares
                   
Issued
      576,468         1,013,820  
Reinvested
      4,945         167,783  
Redeemed
      (108,478 )       (12,434,422 )
                     
Total Class VI Shares
      472,935         (11,252,819 )
                     
Class Y Shares
                   
Issued
      5,815,134         12,727,421  
Reinvested
      42,388         314,700  
Redeemed
      (274,508 )       (2,599,440 )
                     
Total Class Y Shares
      5,583,014         10,442,681  
                     
Total change in shares
      5,423,504         (3,162,430 )
                     
 
 
 
Amounts designated as “–” are zero or have been rounded to zero.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
18 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager International Value Fund
 
                                                                                                                                                               
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                      Ratio of
 		         
                and
 		                                                                Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                          Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                      Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) From
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
Class I Shares
                                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .83       0 .12       (1 .76)       (1 .64)       (0 .01)       –          –          (0 .01)     –      $ 8 .18       (16 .66%)     $ 994,025         0 .99%       2 .53%       0 .99%       31 .66%    
Year Ended December 31, 2009 (e)
  $ 7 .73       0 .20       2 .08       2 .28       (0 .18)       –          –          (0 .18)     –      $ 9 .83       29 .86%     $ 1,395,791         1 .03%       2 .37%       1 .03%       103 .22%    
Year Ended December 31, 2008 (e)
  $ 17 .48       0 .41       (7 .81)       (7 .40)       (0 .15)       (2 .10)       (0 .10)       (2 .35)     –      $ 7 .73       (46 .31%)     $ 1,268,226         1 .04%       2 .99%       1 .04%       114 .10%    
Year Ended December 31, 2007
  $ 18 .58       0 .41       0 .18       0 .59       (0 .39)       (1 .30)       –          (1 .69)     –      $ 17 .48       2 .92%     $ 2,902,902         0 .99%       2 .10%       0 .99%       157 .60%    
Year Ended December 31, 2006
  $ 16 .60       0 .35       3 .18       3 .53       (0 .37)       (1 .18)       –          (1 .55)     –      $ 18 .58       22 .67%     $ 3,985,456         1 .01%       1 .95%       1 .01%       48 .61%    
Year Ended December 31, 2005
  $ 15 .58       0 .35       1 .43       1 .78       (0 .21)       (0 .55)       –          (0 .76)     –      $ 16 .60       12 .09%     $ 4,349,208         0 .91%       1 .92%       0 .91%       48 .94%    
                                                                                                                                                               
Class II Shares
                                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .79       0 .11       (1 .74)       (1 .63)       (0 .01)       –          –          (0 .01)     –      $ 8 .15       (16 .68%)     $ 837,694         1 .24%       2 .36%       1 .24%       31 .66%    
Year Ended December 31, 2009 (e)
  $ 7 .70       0 .18       2 .07       2 .25       (0 .16)       –          –          (0 .16)     –      $ 9 .79       29 .51%     $ 1,035,457         1 .28%       2 .16%       1 .28%       103 .22%    
Year Ended December 31, 2008 (e)
  $ 17 .44       0 .38       (7 .80)       (7 .42)       (0 .13)       (2 .10)       (0 .09)       (2 .32)     –      $ 7 .70       (46 .48%)     $ 1,066,596         1 .30%       2 .78%       1 .30%       114 .10%    
Year Ended December 31, 2007
  $ 18 .50       0 .36       0 .19       0 .55       (0 .31)       (1 .30)       –          (1 .61)     –      $ 17 .44       2 .71%     $ 2,488,431         1 .23%       1 .85%       1 .23%       157 .60%    
Year Ended December 31, 2006
  $ 16 .54       0 .30       3 .17       3 .47       (0 .33)       (1 .18)       –          (1 .51)     –      $ 18 .50       22 .40%     $ 2,972,385         1 .26%       1 .68%       1 .26%       48 .61%    
Year Ended December 31, 2005
  $ 15 .53       0 .23       1 .51       1 .74       (0 .18)       (0 .55)       –          (0 .73)     –      $ 16 .54       11 .79%     $ 2,852,388         1 .17%       1 .40%       1 .17%       48 .94%    
Amounts designated as “ – “ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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)  For the period from March 27, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
2010 Semiannual Report 19

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager International Value Fund (Continued)
 
                                                                                                                                                               
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                      Ratio of
 		         
                and
 		                                                                Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                          Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                      Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) From
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                                               
Class III Shares
                                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .79       0 .12       (1 .75)       (1 .63)       (0 .01)       –          –          (0 .01)     –      $ 8 .15       (16 .62%)     $ 41,887,395         0 .99%       2 .59%       0 .99%       31 .66%    
Year Ended December 31, 2009 (e)
  $ 7 .70       0 .20       2 .07       2 .27       (0 .18)       –          –          (0 .18)     –      $ 9 .79       29 .84%     $ 54,613,978         1 .03%       2 .42%       1 .03%       103 .22%    
Year Ended December 31, 2008 (e)
  $ 17 .43       0 .42       (7 .80)       (7 .38)       (0 .15)       (2 .10)       (0 .10)       (2 .35)     –      $ 7 .70       (46 .33%)     $ 56,117,809         1 .04%       3 .01%       1 .04%       114 .10%    
Year Ended December 31, 2007
  $ 18 .53       0 .41       0 .18       0 .59       (0 .39)       (1 .30)       –          (1 .69)     –      $ 17 .43       2 .93%     $ 138,847,001         0 .99%       2 .14%       0 .99%       157 .60%    
Year Ended December 31, 2006
  $ 16 .56       0 .34       3 .18       3 .52       (0 .37)       (1 .18)       –          (1 .55)     –      $ 18 .53       22 .75%     $ 169,277,702         1 .01%       1 .87%       1 .01%       48 .61%    
Year Ended December 31, 2005
  $ 15 .54       0 .24       1 .54       1 .78       (0 .21)       (0 .55)       –          (0 .76)     –      $ 16 .56       12 .05%     $ 116,151,030         0 .93%       1 .64%       0 .93%       48 .94%    
                                                                                                                                                               
Class IV Shares
                                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .82       0 .12       (1 .75)       (1 .63)       (0 .01)       –          –          (0 .01)     –      $ 8 .18       (16 .57%)     $ 20,835,558         0 .99%       2 .59%       0 .99%       31 .66%    
Year Ended December 31, 2009 (e)
  $ 7 .72       0 .20       2 .08       2 .28       (0 .18)       –          –          (0 .18)     –      $ 9 .82       29 .89%     $ 26,722,773         1 .03%       2 .40%       1 .03%       103 .22%    
Year Ended December 31, 2008 (e)
  $ 17 .47       0 .41       (7 .81)       (7 .40)       (0 .15)       (2 .10)       (0 .10)       (2 .35)     –      $ 7 .72       (46 .35%)     $ 25,538,325         1 .04%       3 .01%       1 .04%       114 .10%    
Year Ended December 31, 2007
  $ 18 .57       0 .40       0 .20       0 .60       (0 .40)       (1 .30)       –          (1 .70)     –      $ 17 .47       2 .90%     $ 57,819,423         0 .99%       2 .09%       0 .99%       157 .60%    
Year Ended December 31, 2006
  $ 16 .60       0 .34       3 .18       3 .52       (0 .37)       (1 .18)       –          (1 .55)     –      $ 18 .57       22 .74%     $ 67,199,978         1 .02%       1 .93%       1 .02%       48 .61%    
Year Ended December 31, 2005
  $ 15 .57       0 .25       1 .52       1 .77       (0 .19)       (0 .55)       –          (0 .74)     –      $ 16 .60       11 .97%     $ 66,597,240         1 .03%       1 .56%       1 .03%       48 .94%    
Amounts designated as “ – “ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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)  For the period from March 27, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
 
20 Semiannual Report 2010

 

Financial Highlights
Selected data for each share of capital outstanding throughout the periods indicated
 
NVIT Multi-Manager International Value Fund (Continued)
 
                                                                                                                                                               
          Operations     Distributions                       Ratios / Supplemental Data    
     
                Net Realized
 		                                                                      Ratio of
 		         
                and
 		                                                                Ratio of Net
 		    Expenses
 		         
    Net Asset
 		          Unrealized
 		                                                          Ratio of
 		    Investment
 		    (Prior to
 		         
    Value,
 		    Net
 		    Gains
 		    Total
 		    Net
 		    Net
 		                      Net Asset
 		          Net Assets
 		    Expenses
 		    Income
 		    Reimbursements)
 		         
    Beginning
 		    Investment
 		    (Losses) From
 		    from
 		    Investment
 		    Realized
 		    Return of
 		    Total
 		    Redemption
 		    Value, End
 		    Total
 		    at End of
 		    to Average
 		    to Average
 		    to Average
 		    Portfolio
 		   
    of Period     Income     Investments     Operations     Income     Gains     Capital     Distributions     Fees     of Period     Return (a)     Period     Net Assets (b)     Net Assets (b)     Net Assets (b) (c)     Turnover (d)    
                                                                                                                                                               
Class VI Shares
                                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .75       0 .11       (1 .74)       (1 .63)       (0 .01)       –          –          (0 .01)     –      $ 8 .11       (16 .74%)     $ 42,235,332         1 .24%       2 .43%       1 .24%       31 .66%    
Year Ended December 31, 2009 (e)
  $ 7 .67       0 .21       2 .03       2 .24       (0 .16)       –          –          (0 .16)     –      $ 9 .75       29 .49%     $ 46,170,735         1 .29%       2 .78%       1 .29%       103 .22%    
Year Ended December 31, 2008 (e)
  $ 17 .38       0 .34       (7 .73)       (7 .39)       (0 .13)       (2 .10)       (0 .09)       (2 .32)     –      $ 7 .67       (46 .45%)     $ 122,577,295         1 .30%       2 .70%       1 .30%       114 .10%    
Year Ended December 31, 2007
  $ 18 .49       0 .31       0 .24       0 .55       (0 .36)       (1 .30)       –          (1 .66)     –      $ 17 .38       2 .70%     $ 282,602,468         1 .23%       1 .73%       1 .23%       157 .60%    
Year Ended December 31, 2006
  $ 16 .56       0 .30       3 .17       3 .47       (0 .36)       (1 .18)       –          (1 .54)     –      $ 18 .49       22 .41%     $ 138,946,197         1 .26%       1 .40%       1 .26%       48 .61%    
Year Ended December 31, 2005
  $ 15 .55       0 .20       1 .55       1 .75       (0 .19)       (0 .55)       –          (0 .74)     –      $ 16 .56       11 .80%     $ 42,916,002         1 .19%       1 .41%       1 .19%       48 .94%    
                                                                                                                                                               
Class Y Shares
                                                                                                                                                             
Six Months Ended June 30, 2010 (Unaudited) (e)
  $ 9 .82       0 .13       (1 .76)       (1 .63)       (0 .02)       –          –          (0 .02)     –      $ 8 .17       (16 .64%)     $ 180,118,905         0 .84%       2 .90%       0 .84%       31 .66%    
Year Ended December 31, 2009 (e)
  $ 7 .72       0 .20       2 .09       2 .29       (0 .19)       –          –          (0 .19)     –      $ 9 .82       30 .09%     $ 161,542,762         0 .87%       2 .38%       0 .87%       103 .22%    
Period Ended December 31, 2008 (e)(f)
  $ 15 .84       0 .25       (6 .00)       (5 .75)       (0 .17)       (2 .10)       (0 .10)       (2 .37)     –      $ 7 .72       (40 .66%)     $ 46,396,242         0 .96%       1 .54%       0 .96%       114 .10%    
Amounts designated as “ – “ are zero or have been rounded to zero.
(a)  Not annualized for periods less than one year.
(b)  Annualized for periods less than one year.
(c)  There were no fee reductions during the period.
(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)  For the period from March 27, 2008 (commencement of operations) through December 31, 2008.
 
The accompanying notes are an integral part of these financial statements.
 
 
 
2010 Semiannual Report 21

 

Notes to Financial Statements
June 30, 2010 (Unaudited)
 
1. Organization
 
Nationwide Variable Insurance Trust (“NVIT” or the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”) as an open-end management investment company, organized under the laws of Delaware by an amended and restated Agreement and Declaration of Trust, dated October 28, 2004, as amended to date. The Trust has authorized an unlimited number of shares of beneficial interest (“shares”), without par value. The Trust currently offers shares to life insurance company separate accounts to fund the benefits under variable life insurance or annuity policies and to other mutual funds, such as “funds-of-funds,” the shares of which in turn are sold to life insurance company separate accounts to fund such variable annuity or life insurance benefits. As of June 30, 2010, the Trust operates fifty-five (55) separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the NVIT Multi-Manager International Value Fund (the “Fund”), a series of the Trust. Currently, shares of the Fund are held only by separate accounts of Nationwide Life Insurance Company, Nationwide Life and Annuity Insurance Company (collectively, “Nationwide”) and other series of the Trust that operate as funds-of-funds, such as the NVIT Cardinal Funds.
 
2. Summary of Significant Accounting Policies
 
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (“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 Fund utilizes various methods to measure the value of its investments as described below. Actual results upon sale of investments could differ from those valuations and those differences could be material.
 
(a)        Security Valuation
 
Securities for which market 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 valued at the last quoted sale price or, if there is no last quoted sale price, the last quoted bid price provided by an independent pricing service approved by the Trust’s Board of Trustees (“Board of Trustees”). Prices are taken from the primary market or exchange in which each security trades. Securities traded on NASDAQ are valued at the NASDAQ Official Closing Price. Investment company securities are valued at net asset value (“NAV”) as reported by such company.
 
Most securities listed on a foreign exchange are valued either at fair value (see description below) or at the last sale price at the close of the exchange on which the security is principally traded. Values of foreign securities, currencies, and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rate of said currencies against the U.S. dollar, as of Valuation Time, as provided by an independent pricing service approved by the Board of Trustees.
 
Debt and other fixed-income securities (other than short-term obligations) are valued at the last quoted bid price and/or by using a combination of daily quotes and matrix evaluations provided by an independent pricing service (which reflect such factors as security prices, yields, maturities, ratings, and dealer and exchange quotations), the use of which has been approved by the Board of Trustees. Short term debt securities, such as commercial paper and U.S. Treasury Bills having a remaining maturity of 60 days or less at the time of purchase, are valued at amortized cost, which approximates market value.
 
Securities for which market quotations are not readily available, or for which an independent pricing service does not provide a value or provides a value that does not represent fair value in the judgment of the Fund’s investment adviser or designee, are valued at fair value under procedures approved by the Board of Trustees.
 
 
 
22 Semiannual Report 2010

 

 
 
The fair value of such securities is determined by taking into account relevant factors and surrounding circumstances. Methods utilized to obtain a fair value may include the following, among others: (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 value determinations may also take into account significant events that occur before the Valuation Time but after the close of the principal market on which such securities trades that materially affects the value of domestic or foreign securities. When fair-value pricing is employed, the prices of securities may differ from quoted or published prices for the same securities. Fair valuation of portfolio securities may occur on a daily basis.
 
In accordance with the authoritative guidance on fair value measurements and disclosures under GAAP, the Fund discloses the fair value of its investments in a hierarchy that prioritizes the inputs to valuation techniques used to measure the fair value. This standard defines fair value, sets out a framework for measuring fair value and expands disclosures about fair value measurements. 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. The three levels of the hierarchy established 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 the Fund’s own assumptions in determining the fair value of investments)
 
Changes in valuation techniques may result in transfers in or out of an investment’s assigned level within the hierarchy.
 
The inputs or methodology used to value securities and other investments are not intended to indicate the risk associated with investing in those securities and investments.
 
The following is a summary of the inputs used to value the Fund’s net assets as of June 30, 2010:
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Assets:
                                   
 
 
Common Stocks
                                   
 
 
Aerospace & Defense
  $ 584,228     $ 2,722,470     $ —     $ 3,306,698      
 
 
Auto Components
    —       4,633,199       —       4,633,199      
 
 
Automobiles
    —       7,337,661       —       7,337,661      
 
 
Beverages
    —       3,392,931       —       3,392,931      
 
 
Building Products
    —       664,175       —       664,175      
 
 
Capital Markets
    —       4,357,660       —       4,357,660      
 
 
Chemicals
    —       5,720,019       —       5,720,019      
 
 
Commercial Banks
    1,388,820       36,626,801       —       38,015,621      
 
 
Commercial Service & Supplies
    —       808,182       —       808,182      
 
 
Communications Equipment
    —       1,569,846       —       1,569,846      
 
 
Computers & Peripherals
    —       3,703,000       —       3,703,000      
 
 
Construction & Engineering
    —       3,102,904       —       3,102,904      
 
 
Construction Materials
    —       1,760,085       —       1,760,085      
 
 
Consumer Finance
    —       1,449,620       —       1,449,620      
 
 
Distributors
    —       316,912       —       316,912      
 
 
 
 
 
2010 Semiannual Report 23

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Diversified Financial Services
    —       3,557,563       —       3,557,563      
 
 
Diversified Telecommunication Services
    —       16,648,288       —       16,648,288      
 
 
Electric Utilities
    —       6,804,496       —       6,804,496      
 
 
Electrical Equipment
    —       3,003,222       —       3,003,222      
 
 
Electronic Equipment & Instruments
    —       1,223,928       —       1,223,928      
 
 
Electronic Equipment, Instruments & Components
    —       3,226,342       —       3,226,342      
 
 
Energy Equipment & Services
    —       798,503       —       798,503      
 
 
Food & Staples Retailing
    —       2,611,281       —       2,611,281      
 
 
Food Products
    —       2,251,460       —       2,251,460      
 
 
Gas Utilities
    —       2,483,680       —       2,483,680      
 
 
Health Care Providers & Services
    —       255,125       —       255,125      
 
 
Hotels, Restaurants & Leisure
    —       3,827,698       —       3,827,698      
 
 
Household Durables
    —       4,430,424       —       4,430,424      
 
 
Industrial Conglomerates
    —       7,489,266       —       7,489,266      
 
 
Information Technology Services
    —       1,292,118       —       1,292,118      
 
 
Insurance
    436,025       14,120,191       —       14,556,216      
 
 
Leisure Equipments & Products
    —       199,607       —       199,607      
 
 
Machinery
    —       2,343,605       —       2,343,605      
 
 
Media
    —       3,638,965       —       3,638,965      
 
 
Metals & Mining
    1,396,146       12,538,941       —       13,935,087      
 
 
Multiline Retail
    —       3,117,441       —       3,117,441      
 
 
Multi-Utilities
    —       7,618,300       —       7,618,300      
 
 
Office Electronics
    —       2,569,265       —       2,569,265      
 
 
Oil, Gas & Consumable Fuels
    4,689,584       20,611,975       —       25,301,559      
 
 
Personal Products
    —       1,115,289       —       1,115,289      
 
 
Pharmaceuticals
    —       18,978,975       —       18,978,975      
 
 
Professional Services
    —       2,447,786       —       2,447,786      
 
 
Real Estate Management & Development
    —       4,481,930       —       4,481,930      
 
 
Road & Rail
    —       3,918,339       —       3,918,339      
 
 
Semiconductors & Semiconductor Equipment
    —       1,175,282       —       1,175,282      
 
 
Software
    —       2,281,805       —       2,281,805      
 
 
Specialty Retail
    —       1,472,133       —       1,472,133      
 
 
Tobacco
    —       6,506,353       —       6,506,353      
 
 
Trading Companies & Distributors
    —       7,889,624       —       7,889,624      
 
 
Transportation Infrastructure
    —       628,741       —       628,741      
 
 
Wireless Telecommunication Services
    —       8,930,024       —       8,930,024      
 
 
Total Common Stocks
    8,494,803       264,653,430       —       273,148,233      
 
 
Forward Currency Contracts
    —       5,247,761       —       5,247,761      
 
 
Mutual Fund
    13,048,759       —       —       13,048,759      
 
 
 
 
 
24 Semiannual Report 2010

 

 
 
                                     
Asset Type   Level 1     Level 2     Level 3     Total      
 
Preferred Stocks
                                   
 
 
Automobiles
    —       1,757,645       —       1,757,645      
 
 
Metals & Mining
    695,762       —       —       695,762      
 
 
Total Preferred Stocks
    695,762       1,757,645       —       2,453,407      
 
 
Repurchase Agreements
    —       8,526,634       —       8,526,634      
 
 
Total Assets
    22,239,324       280,185,470       —       302,424,794      
 
 
Liabilities:
                                   
 
 
Forward Currency Contracts
    —       (5,765,080 )     —       (5,765,080 )    
 
 
Futures Contracts
    (242,617 )     —       —       (242,617 )    
 
 
Total Liabilities
    (242,617 )     (5,765,080 )     —       (6,007,697 )    
 
 
Total
  $ 21,996,707     $ 274,420,390     $ —     $ 296,417,097      
 
 
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
                 
        Right    
 
    Balance as of 12/31/2009   $ —      
 
 
    Accrued Accretion/(Amortization)     —      
 
 
    Change in Unrealized Appreciation/(Depreciation)     —      
 
 
    Net Purchases/(Sales)     —      
 
 
    Transfers In/(Out) of Level 3     —      
 
 
    Balance as of 06/30/2010   $ —      
 
 
Amounts designated as “—”, which may include fair valued securities, are zero or have been rounded to zero.
 
For the period ended June 30, 2010 there were no significant transfers between Levels 1 and 2.
 
(b)        Foreign Currency Transactions
 
The accounting records of the Fund are maintained in U.S. dollars. The Fund translates foreign currency transactions into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, receipts of income, and payments of expenses are translated at the prevailing rate of exchange on the respective date of such transactions. The Fund does not isolate that portion of the results of operations resulting from fluctuations in foreign exchange rates from those resulting from fluctuations in market prices of securities. The fluctuations are included in the net realized and unrealized gain or loss shown on the Statement of Operations.
 
(c)        Forward Foreign Currency Contracts
 
The Fund is subject to foreign currency exchange risk in the normal course of pursuing its objectives. The Fund may enter into forward foreign currency contracts in connection with planned purchases or sales of securities denominated in a foreign currency or to hedge the U.S. dollar value of portfolio securities denominated in a foreign currency. Forward foreign currency contracts are valued at the current cost of covering these contracts, as provided by an independent pricing service approved by the Board of Trustees. A forward foreign currency contract is adjusted daily by the exchange rate of the underlying currency, and any gains or losses are recorded for financial statement purposes as unrealized gains or losses until the contract settlement date. When the Fund enters into a forward foreign currency contract, it is exposed to risks from unanticipated movements in the value of the foreign currency relative to the U.S.
 
 
 
2010 Semiannual Report 25

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
dollar, and the risk that the counterparties to the contract may be unable to meet their obligations under the contract.
 
Forward foreign currency contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Unrealized appreciation/(depreciation) from forward foreign currency contracts,” and in the Statement of Operations under “Net realized gains/losses from foreign currency transactions” and “Net change in unrealized appreciation/(depreciation) from forward foreign currency contracts.”
 
(d)        Futures Contracts
 
The Fund is subject to equity price risk, credit risk, interest rate risk and foreign currency exchange rate risk in the normal course of pursuing its investment objectives. The Fund may enter into financial futures contracts (“futures contracts”) to gain exposure to, or hedge against changes in, the value of equities, the value of fixed income securities, interest rates or foreign currencies. The Fund may also enter into futures contracts for non-hedging purposes. If the Fund does so, the aggregate initial margin and premiums required to enter into and maintain futures contracts may not exceed 5% of the value of the Fund’s net assets after taking into account unrealized profits and unrealized losses on such futures contracts.
 
Futures contracts are contracts for delayed-delivery of securities or currencies at a specific future date and at a specific price or currency amount. Upon entering into a futures contract, the Fund is required to pledge to the broker an initial margin deposit of cash and/or other assets equal to a certain percentage of the futures contract’s notional value. Under a futures contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the futures contract. Subsequent receipts or payments, known as “variation margin” receipts or payments, are made each day, depending on the fluctuation in the fair value/market value of the futures contract, and are recognized by the Fund as unrealized gains or losses. Futures contracts are valued daily at their last quoted sale price.
 
A “sale” of a futures contract means a contractual obligation to deliver the securities or foreign currency called for by the contract at a fixed price or amount at a specified time in the future. A “purchase” of a futures contract means a contractual obligation to acquire the securities or foreign currency at a fixed price at a specified time in the future. When a futures contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the futures contract at the time it was opened and the value at the time it was closed.
 
Should market conditions change unexpectedly, the Fund may not achieve the anticipated benefits of futures contracts and may realize a loss. The use of futures contracts for hedging purposes involves the risk of imperfect correlation in the movements in the price of the futures contracts and the underlying assets. Futures contracts involve minimal counterparty credit risk to the Fund because futures contracts are exchange-traded, and the exchange’s clearinghouse, as counterparty to all exchange-traded futures contracts, guarantees futures contracts against defaults.
 
Futures contracts, if any, are disclosed in the Statement of Assets and Liabilities under “Net unrealized appreciation/(depreciation) from futures,” and in the Statement of Operations under “Net realized gains/ losses from futures transactions” and “Net change in unrealized appreciation/(depreciation) from futures.”
 
The Fund adopted amendments to authorative guidance on disclosures about derivative instruments and hedging activities which require that the Fund disclose: (a) how and why an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance and cash flows. The adoption of the additional disclosure requirements did not materially impact the Fund’s financial statements. The following is a summary of the Fund’s derivative instruments categorized by risk exposure as of June 30, 2010.
 
 
 
26 Semiannual Report 2010

 

 
 
Fair Values of Derivative Instruments as of June 30, 2010
 
Derivatives not accounted for as hedging instruments
 
                 
    Statement of Assets & Liabilities Location   Fair Value    
 
Assets:
               
 
 
Futures — Equity contracts*
  Net Assets — Unrealized appreciation from futures contracts   $ —      
 
 
Forward Foreign currency contracts
  Receivables — Unrealized appreciation from forward foreign currency contracts     5,247,761      
 
 
Total
      $ 5,247,761      
 
 
Liabilities:
               
 
 
Futures — Equity contracts*
  Net Assets — Unrealized depreciation from futures contracts   $ (242,617 )    
 
 
Forward Foreign currency contracts
  Payables — Unrealized depreciation from forward foreign currency contracts     (5,765,080 )    
 
 
Total
      $ (6,007,697 )    
 
 
* Includes cumulative appreciation/(depreciation) of futures contracts as reported in the Statement of Investments. Only current day’s variation margin is reported within the Statement of Assets & Liabilities.
 
The Effect of Derivative Instruments on the Statement of Operations for the Six Months Ended June 30, 2010
 
Realized Gain/(Loss)
 
                 
        Total    
 
    Futures — Equity contracts   $ (85,364 )    
 
 
    Forward Foreign currency contracts     1,850,729      
 
 
    Total   $ 1,765,365      
 
 
 
Change in Unrealized Appreciation/(Depreciation) on Derivatives Recognized in Statement of Operations for the Six Months Ended June 30, 2010
 
                 
        Total    
 
    Futures — Equity contracts   $ (214,182 )    
 
 
    Forward Foreign currency contracts     (1,303,497 )    
 
 
    Total   $ (1,517,679 )    
 
 
Amounts designated as “—” are zero or have been rounded to zero.
 
Information about derivative instruments reflected as of the date of this report is generally indicative of the type and volume of derivative activity for the six months ended June 30, 2010.
 
(e)        Repurchase Agreements
 
The Fund may enter into repurchase agreements with a member of the Federal Reserve System or a “primary dealer” (as designated by the Federal Reserve Bank of New York) in U.S. government obligations. The repurchase price generally equals the price paid by the Fund plus interest negotiated on the basis of current short-term rates, which may be more or less than the rate on the underlying portfolio securities. The seller under a repurchase agreement is required to maintain the value of the collateral held pursuant to the agreement at a market value equal to or greater than the repurchase price (including accrued interest). Collateral subject to repurchase agreements is held by the Fund’s custodian or qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. If the counterparty defaults, realization of the collateral by the Fund may be delayed, and if the value of the collateral declines, the Fund may be unable to recover the full amount it paid under the repurchase agreements. The Fund may transfer uninvested cash balances into a
 
 
 
2010 Semiannual Report 27

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
pooled cash account. These balances are invested in one or more repurchase agreements, which are fully collateralized by U.S. government agency mortgages with the counterparty.
 
(f)        Security Transactions and Investment Income
 
Security transactions are accounted for on the date the security is purchased or sold (“trade date”). Securities gains and losses are calculated on the identified cost basis. Interest income is recognized on the accrual basis and includes, where applicable, the amortization or accretion of premium or discount. Dividend income is recorded on the ex-dividend date.
 
(g)        Securities Lending
 
To generate additional income, the Fund may lend its portfolio securities, up to 331/3% of the total assets of the Fund, to brokers, dealers and other financial institutions. The Fund’s securities lending standards and guidelines require that (1) the borrower deliver cash or U.S. government securities as collateral with respect to each new loan of U.S. securities, equal to at least 102% of the value of the portfolio securities loaned, and with respect to each new loan on non-U.S. securities, collateral of at least 105% of the value of the portfolio securities loaned; and (2) at all times thereafter the borrower mark-to-market the collateral on a daily basis so that the market value of such collateral does not fall below 100% of the value of securities loaned. The Fund receives payments from borrowers equivalent to the dividends and interest that would have been earned on the securities loaned while simultaneously seeking to earn income on the investment of cash collateral. There may be risks of delay or restrictions in recovery of the securities or disposal of collateral should the borrower of the securities fail financially. Loans will be made, however, only to borrowers deemed by the Fund’s investment adviser to be of good standing and creditworthy under guidelines established by the Board of Trustees and when, in the judgment of the adviser, the consideration which can be earned currently from these securities loans justifies the attendant risks. Loans are subject to termination by the Fund or the borrower at any time, and, therefore, are not considered to be illiquid investments. JPMorgan Chase Bank, N.A. serves as securities lending agent for the securities lending program of the Fund. JPMorgan Chase Bank, N.A. receives a fee based on the value of the collateral received from borrowers. Information on the investment of cash collateral is shown in the Statement of Investments.
 
As of June 30, 2010, the Fund had securities with the following values on loan:
 
                     
    Value of Loaned Securities   Value of Collateral    
 
    $ 8,042,135     $ 8,526,634      
 
 
 
(h)        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 GAAP. These “book/tax” differences are considered either permanent or temporary. Permanent differences are reclassified within the capital accounts based on their nature for federal income tax purposes; temporary differences do not require reclassification. These reclassifications have no effect upon the NAV of the Fund. Distributions in excess of current and accumulated earnings and profits for federal income tax purposes are reported as a return of capital distribution.
 
(i)        Federal Income Taxes
 
It is the policy of the Fund to qualify and to continue to qualify as a “regulated investment company” by complying with the provisions available to certain investment companies under Subchapter M of the U.S.
 
 
 
28 Semiannual Report 2010

 

 
 
Internal Revenue Code, and to make distributions of net investment income and net realized capital gains sufficient to relieve the Fund from all, or substantially all, federal income taxes. Therefore, no federal income tax provision is required.
 
Beginning with the 2006 annual financial statements, the 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. The 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 the Fund is not sustained upon examination by a taxing authority, the 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). The Fund files U.S. federal income tax returns and, if applicable, returns in various foreign jurisdictions in which it invests. The Fund’s taxable years 2006 to 2009 remain subject to examination by the Internal Revenue Service.
 
The Fund engages in ongoing monitoring and analysis; future conclusions reached by management may be different and result in adjustments to the Fund’s NAV and financial statements. The Fund is 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.
 
(j)        Allocation of Expenses, Income and Gains and Losses
 
Expenses directly attributable to the Fund are charged to the Fund. Expenses of the Trust that are not directly attributable to a series of the Trust are allocated proportionally among various or all series of the Trust. Income, Fund expenses, and realized and unrealized gains or losses are allocated among the classes of shares of the Fund based on the total net asset value of the class’s shares in proportion to the total net asset value of the Fund. Expenses specific to a class (such as Rule 12b-1 and administrative services fees) are charged to that class.
 
3. Transactions with Affiliates
 
Under the terms of the Trust’s Investment Advisory Agreement, Nationwide Fund Advisors (“NFA”) manages the investment of the assets and supervises the daily business affairs of the Fund. 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. In addition, NFA provides investment management evaluation services in monitoring, on an ongoing basis, the performance of the subadvisers of the Fund. The subadvisers manage all of the Fund’s investments and have the responsibility for making all investment decisions for the Fund.
 
         
Subadvisers    
 
JPMorgan Investment Management, Inc. 
       
 
 
AllianceBernstein L.P.
       
 
 
 
Under the terms of the Investment Advisory Agreement, the Fund pays NFA an investment advisory fee based on the Fund’s average daily net assets and the following schedule (percentages indicate an annual basis):
 
                 
    Fee Schedule   Total Fees    
 
    Up to $500 million     0.75%      
 
 
    $500 million up to $2 billion     0.70%      
 
 
    $2 billion and more     0.65%      
 
 
 
 
 
2010 Semiannual Report 29

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
From these fees, pursuant to subadvisory agreements, NFA pays fees to the subadvisers. NFA paid the subadvisers $654,291 for the six months ended June 30, 2010.
 
Nationwide Fund Management LLC (“NFM”), a wholly owned subsidiary of NFS Distributors, Inc. (“NFSDI”) (a wholly owned subsidiary of NFS), provides various administrative and accounting services for the Fund, and serves as Transfer and Dividend Disbursing Agent for the Fund.
 
Beginning May 1, 2010, under the terms of a Joint Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement 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 according to the fee schedule below of the Trust and Nationwide Mutual Funds, a Delaware statutory trust and registered investment company that is affiliated with the Trust.
 
                 
    Combined Fee Schedule        
 
    Up to $25 billion     0.025%      
 
 
    $25 billion and more     0.020%      
 
 
 
In addition, the Trust pays out-of-pocket expenses reasonably incurred by NFM in providing services to the Fund and the Trust, including but not limited to, the cost of pricing services that NFM utilizes.
 
Prior to May 1, 2010, under the terms of a Fund Administration and Transfer Agency Agreement, the fees for the services provided under this agreement were calculated based on the Trust’s average daily net assets according to the fee schedule below. The fees were then allocated proportionately among all series within the Trust in proportion to the average daily net assets of each series and paid to NFM.
 
                 
    Combined Fee Schedule1        
 
    Up to $1 billion     0.15%      
 
 
    $1 billion to $3 billion     0.10%      
 
 
    $3 billion to $8 billion     0.05%      
 
 
    $8 billion to $10 billion     0.04%      
 
 
    $10 billion to $12 billion     0.02%      
 
 
    $12 billion and more     0.01%      
 
 
1 The assets of the NVIT Investor Destinations Aggressive, NVIT Investor Destinations Moderately Aggressive, NVIT Investor Destinations Moderate, NVIT Investor Destinations Moderately Conservative, NVIT Investor Destinations Conservative, NVIT Investor Destinations Capital Appreciation, NVIT Investor Destinations Balanced, NVIT Cardinal Aggressive, NVIT Cardinal Moderately Aggressive, NVIT Cardinal Moderate, NVIT Cardinal Capital Appreciation, NVIT Cardinal Conservative, NVIT Cardinal Moderately Conservative and the NVIT Cardinal Balanced Funds were excluded from the Trust asset level amount in order to calculate this asset based fee and did not pay any part of this fee.
 
NFM has entered into an agreement with a third party service provider to provide certain sub-administration and sub-transfer agency services to the Fund. NFM pays the service provide a fee for these services.
 
Under the terms of an Administrative Services Plan, the Fund may pay fees to servicing organizations, such as broker-dealers, including NFS, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services may include, but are not limited to, the following: establishing and maintaining shareholder accounts; processing purchase and redemption transactions; arranging bank wires; performing shareholder sub-accounting; answering inquires regarding the Fund; and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of Class I, Class II, Class III and Class VI shares and 0.20% of the average daily net assets of Class IV of the Fund.
 
For the six months ended June 30, 2010, NFS received $91,369 in Administrative Services fees from the Fund.
 
 
 
30 Semiannual Report 2010

 

 
 
Under the terms of the Joint Fund Administration and Transfer Agency Agreement and a letter agreement dated September 12, 2006, between NFM and the Trust, the Trust has agreed to reimburse NFM for certain costs related to the Fund’s portion of ongoing administration, monitoring and annual (compliance audit) testing of the Trust’s Rule 38a-1 Compliance Program subject to the pre-approval of the Trust’s Audit Committee. For the six months ended June 30, 2010, the Fund’s portion of such costs amounted to $658.
 
Under the terms of a Distribution Plan pursuant to Rule 12b-1 under the 1940 Act, Nationwide Fund Distributors LLC (“NFD”), the Fund’s principal underwriter, is compensated by the Fund for expenses associated with the distribution of certain classes of shares of the Fund. NFD is a wholly owned subsidiary of NFSDI. These fees are based on average daily net assets of the respective class of the Fund at an annual rate not to exceed 0.25% of Class II and Class VI shares of the Fund.
 
4. Redemption Fees
 
The Fund reserves the right to assess a redemption fee on certain transactions out of Class III and Class VI shares that a separate account makes on behalf of a variable insurance contract owner (the “contract owner”). A separate account that redeems Class III and Class VI shares on behalf of a contract owner may be subject to a 1.00% redemption fee if the separate account held the Class III and Class VI shares on behalf of the contract owner for 60 days or less, unless an exception applies as disclosed in the Fund’s Prospectus. The redemption fee is paid directly to the Fund and is intended to offset the cost to the Fund of excess brokerage commissions and other costs associated with fluctuations in Fund asset levels and cash flow caused by short-term trading. For purposes of determining whether the redemption fee applies, the Class III and Class VI shares that were held on behalf of the contract owner the longest will be redeemed first.
 
For the six months ended June 30, 2010, the Fund had contributions to capital due to the collection of redemption fees in the amount of $2,211.
 
For the year ended December 31, 2009, the Fund had contributions to capital due to the collection of redemption fees in the amount of $4,811.
 
5. Bank Loans and Earnings Credit
 
The Trust has a credit agreement with JPMorgan Chase Bank, N.A., the Fund’s custodian bank, permitting the Trust to borrow up to $90,000,000. Borrowings under this arrangement bear interest at the greater of (a) the London Interbank Offered Rate or (b) the Federal Funds rate plus 1.25%. 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, with a commitment fee of 0.10% per year on $90,000,000, and expires on July 22, 2010. Three (3) other lenders participate in this arrangement. Advances taken by the 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 Fund’s borrowing restrictions. There were no borrowings under this line of credit during the six months ended June 30, 2010.
 
The Trust’s custodian bank has agreed to provide earnings credits to reduce the bank’s fees when the Fund and other series of the Trust maintain cash on deposit in Demand Deposit Accounts (“DDA”). Bank fees and any offsetting earnings credits are first allocated to the DDAs based on their relative value, and are then allocated within each DDA based on the relative number of open shareholder accounts of each series of the Trust that uses such DDA. If the earnings credits for a particular month exceed gross service charges generated by the DDAs and overdraft charges, if any, the excess is applied towards custody account charges related to the safeguarding of assets for those series of the Trust that use the DDAs. Any excess earnings credits that remain unused expire at the end of each calendar year. Earnings credits, if any, are shown as a reduction of total expenses on the Statement of Operations.
 
 
 
2010 Semiannual Report 31

 

 
Notes to Financial Statements (Continued)
June 30, 2010 (Unaudited)
 
6. Investment Transactions
 
For the six months ended June 30, 2010, the Fund had purchases of $150,248,990 and sales of $90,022,560 (excluding short-term securities).
 
7. Portfolio Investment Risks
 
Risks Associated with Foreign Securities and Currencies. Investments in securities of foreign issuers carry certain risks not ordinarily associated with investments in securities of U.S. issuers. These risks include future disruptive political and economic developments and the possible imposition of exchange controls or other unfavorable foreign government laws and restrictions. In addition, investments in certain countries may carry risks of expropriation of assets, confiscatory taxation, political or social instability, or diplomatic developments that adversely affect investments in those countries.
 
Certain countries also may impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers in industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and high price volatility with respect to securities of issuers from developing countries.
 
8. Indemnifications
 
Under the Trust’s organizational documents, certain of the Trust’s Officers and Trustees are indemnified 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 Trust’s 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. Federal Tax Information
 
As of June 30, 2010, the tax cost of securities and the breakdown of unrealized appreciation/(depreciation) was as follows:
 
                                 
    Unrealized
 		  Unrealized
 		  Net Unrealized
 		   
Tax Cost of Securities   Appreciation   Depreciation   Appreciation/(Depreciation)    
 
$ 348,244,001     $ 7,506,864     $ (58,573,832 )   $ (51,066,968 )    
 
 
 
10. Subsequent Events
 
The Trust’s credit agreement with JPMorgan Chase Bank, N.A. has been renewed through July 21, 2011. The renewed credit arrangement is substantially similar to the arrangement that applied during the period ended June 30, 2010 (as discussed above under “Bank Loans and Earnings Credits”).
 
 
 
32 Semiannual Report 2010

 

Supplemental Information
June 30, 2010 (Unaudited)
 
A. Renewal of Advisory (and Sub-advisory) Agreements
 
The Trust’s investment advisory agreements (together, the “Advisory Agreement”) with its investment adviser and, as applicable, sub-advisers (together, the “Adviser”) must be approved for an initial term no greater than two years, and renewed at least annually thereafter, (i) by the vote of the Trustees or by a vote of the shareholders of each series or fund of the Trust (individually a “Fund”), and (ii) by the vote of a majority of the Trustees who are not parties to the Advisory Agreement or “interested persons” of any party thereto (the “Independent Trustees”), cast in person at a meeting called for the purpose of voting on such approval.
 
The Board of Trustees (the “Board”) has five regularly scheduled meetings each year and takes into account throughout the year matters bearing on the Advisory Agreements. The Board and its standing committees consider at each meeting factors that are relevant to the annual renewal of each Fund’s Advisory Agreement, including the services and support provided to the Fund and its shareholders.
 
On January 21, 2010, the Trustees met in person with the Adviser, Trust counsel, independent legal counsel to the Independent Trustees (“Independent Legal Counsel”), and others to give preliminary consideration to information bearing on continuation of the Advisory Agreements. The primary purpose of the January 21, 2010 meeting was to ensure that the Trustees had ample opportunity to consider matters they deemed relevant in considering the continuation of the Advisory Agreement, and to request any additional information they considered reasonably necessary to their deliberations.
 
In preparation for the January 21, 2010 meeting, the Trustees were provided, at the request of the Trustees, with a wide range of information to assist in their deliberations, including: (i) reports from Lipper Inc. describing, on a fund-by-fund basis, each Fund’s (a) performance rankings (where “first quintile” denotes the best performance) (over multiple years ended September 30, 2009) compared with performance groups and performance universes created by Lipper of similar or peer group funds, and (b) expense rankings (where “first quintile” denotes the lowest fees and expenses) comparing the Fund’s contractual advisory fee and total expenses with expense groups and expense universes created by Lipper of similar or peer group funds; (ii) information from the Adviser describing, on a Fund-by-Fund basis, each Fund’s performance (over multiple years ended September 30, 2009) compared with the Fund’s benchmark and Lipper categories; (iii) for Funds under “close review” and/or on the “watch list,” copies of letters from Adviser to the portfolio manager of each such Fund, together with the portfolio manager’s written response describing the reasons for the Fund’s underperformance, (iv) information from the Adviser describing, on a Fund-by-Fund basis, annual performance for the year ended September 30, 2009, (v) information from the Adviser describing, on a Fund-by-Fund basis, the Adviser’s profitability in providing services under the Advisory Agreement, together with an explanation of the Adviser’s methodology in calculating its profitability, (vi) the results of an expense and performance screening template designed by the Adviser to identify Funds whose expenses and/or performance may require greater scrutiny, and (viii) information from the Adviser describing ancillary benefits, in addition to fees for serving as investment adviser, derived by the Adviser as a result of being investment adviser for the Funds, including, where applicable, information on soft-dollar benefits and fees inuring to the Adviser’s affiliates for serving as the Trust’s administrator, fund accountant, and transfer agent.
 
At the January 21, 2010 meeting, the Trustees reviewed, considered and discussed, among themselves and with the Adviser, Trust counsel and Independent Legal Counsel, among other things, the information described above, and information regarding: (i) the nature, extent and quality of services provided by the Adviser under the Advisory Agreement, (ii) the investment performance of each Fund and the Adviser, (iii) the costs of the services provided by the Adviser under the Advisory Agreement and the profits realized by the Adviser thereunder, (iv) the extent to which economies of scale may be present and, if so, whether they are being shared with the Fund’s shareholders, (v) comparisons of the Adviser’s fees under the Advisory Agreement with investment advisory fees paid by a peer group of funds, and (vi) any ancillary benefits inuring to the Adviser and its affiliates as a result of being investment adviser for the Trust. The Trustees also considered, where applicable, expense caps and fee waivers; reports provided throughout the year with respect to brokerage and portfolio transactions, including the standards and performance in seeking best execution, allocation of soft dollars for research products and services, portfolio turnover rates, and other benefits from the allocation of
 
 
 
2010 Semiannual Report 33

 

 
Supplemental Information (Continued)
June 30, 2010 (Unaudited)
 
brokerage; the financial condition and stability of the Adviser; the terms of each Advisory Agreement; and the effect of advisory and other fees on the Fund’s total expenses, including comparisons of expenses and expense ratios with those of comparable mutual funds.
 
As part of the January 21, 2010 Board meeting, the Independent Trustees developed a list of follow-up matters and questions and asked that the Adviser respond to such matters and questions prior to the contract approval meeting of the Board of Trustees to be held on March 10, 2010.
 
At the March 10, 2010 meeting of the Board, the Board received and considered information provided by the Adviser in follow-up from the January 21, 2010 Board meeting. After consulting among themselves, and with the Adviser, Trust counsel and Independent Legal Counsel, based on their conclusion that the investment performance of each Fund was either (a) acceptable or better, or (b) subject to reasonable steps to monitor or address underperformance, and for the reasons set forth in the following section, the Trustees concluded unanimously to renew the Advisory Agreements.
 
NVIT Multi-Manager International Value Fund
 
The Trustees reviewed the nature, extent, and quality of the services provided to the Fund by NFA and each of the Fund’s sub-advisers (i.e., AllianceBernstein L.P. (“AllianceBernstein”) and J.P. Morgan Investment Management, Inc.), and concluded that the nature, extent, and quality of those services were appropriate and consistent with the terms of the investment advisory and sub-advisory agreements and mutual fund industry norms. The Trustees noted that, for each of the three- and five-year periods ended September 30, 2009, the Fund’s performance for Class II shares was in the fifth quintile of its Peer Group, while for the one-year period ended September 30, 2009, the Fund’s performance for the Fund’s Class II shares was in the fourth quintile of its Peer Group. The Trustees noted that, for each period, the Fund underperformed its benchmark, the MSCI EAFE Index. The Trustees noted that the sleeve of the Fund managed by AllianceBernstein has been on the watch list since the fourth quarter of 2008. The Trustees then noted that the Fund’s more recent performance had improved and was near the top quintile for the six-month period ended December 31, 2009.
 
The Trustees noted that the Fund’s contractual advisory fee, actual advisory fee, and total expenses for Class II shares were in the first quintile of its Peer Group. The Trustees noted that the Fund’s Peer Group is not specifically limited to multi-manager funds. The Trustees then discussed portfolio management issues specific to multi-managed funds, including the fact that oversight, monitoring, and reporting of investments is more extensive when dealing with multiple managers, and operations and compliance efforts increase incrementally as the number of managers increase. The Trustees concluded that the cost of the services provided by NFA and the profits realized were fair and reasonable in relation to the services and benefits provided to the Fund. The Trustees noted that the breakpoints included in the Fund’s investment advisory fee schedule are a reasonable means to provide the benefits of economies of scale to shareholders as the Fund grows, although the asset level at which such economies can be realized and shared has not yet been achieved.
 
Based upon its evaluation of all of the factors and conclusions noted above, the Board concluded that the Advisory Agreement with respect to the Fund should be renewed.
 
 
 
34 Semiannual Report 2010

 

Management Information
June 30, 2010 (Unaudited)
 
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.
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
Charles E. Allen
1948 		    Trustee
since
July 2000 		   
Mr. Allen is Chairman, Chief Executive Officer and President of Graimark Realty Advisors, Inc. (real estate development, investment and asset management).
      86       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 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.
      86       Director of Dentsply International, Inc. (dental products), Ultralife Batteries, Inc., Albany International Corp. (paper industry), Terex Corporation (construction equipment), and Minerals Technology Inc. (specialty chemicals)
 
 
C. Brent DeVore
1940
     Trustee
since
June 1990 		   
Dr. DeVore served as the interim President of Greensboro College from 2009 through April 2010. He served as President of Otterbein College from July 1984 until July 2009, and as President of Davis and Elkins College from 1982 through 1984.
      86       None
 
 
Phyllis Kay Dryden
1947
     Trustee
since
December 2004
    
Ms. Dryden was a partner of Mitchell Madison Group LLC (management consulting company) from January 2006 until December 2006; she is currently a consultant with the company. Ms. Dryden was Managing Partner of marchFIRST, a global management consulting firm.
      86       None
 
 
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 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. Mary’s Academy, an independent school in Denver, CO.
      86       None
 
 
 
 
 
 
 
2010 Semiannual Report 35

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Trustee is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                         
                  Number of
 		     
      Position(s) Held
 		          Portfolios in the
 		    Other Directorships
      with the Trust
 		    Principal Occupation(s)
 		    Nationwide Fund
 		    Held by Trustee
Name and
 		    and Length of
    During Past Five Years
 		    Complex Overseen
 		    During Past Five
Year of Birth     Time Served1     (or longer)2     by Trustee     Years3
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 to 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).
      86       None
 
 
Douglas F. Kridler
1955
     Trustee
since
September 1997 		   
Mr. Kridler has been a board member of Compete Columbus (economic development group for Central Ohio) since February 2006. He has also served as the President and Chief Executive Officer of The Columbus Foundation, (a community foundation that manages over 1,700 individual funds and investments) since February 2002.
      86       None
 
 
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.
      86       None
 
1 Length of time served includes time served with predecessor of the Trust.
2 Unless otherwise noted, the information presented is the principal occupation of the Trustee during the past five years.
3 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.
 
 
 
36 Semiannual Report 2010

 

 
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406.
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
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.
      N/A       N/A
 
 
Stephen T. Grugeon
1950
     Executive Vice President
and Chief Operating
Officer
since
June 2008 		   
Mr. Grugeon is Executive Vice President and Chief Operating Officer of Nationwide Funds Group. From February 2008 through June 2008, he served as the acting President and Chief Executive Officer of the Trust and of Nationwide Funds Group. Mr. Grugeon is also President of NWD Investment Management, Inc. (“NWD Investments”), which represents certain asset management operations of Nationwide Mutual Insurance Company, and includes Nationwide SA Capital Trust3. From December 2006 until January 2008, he was Executive Vice President of NWD Investments. He was Vice President of NWD Investments from 2003 through 2006.
      N/A       N/A
 
 
Joseph Finelli
1957
     Treasurer
since
September 2007 		   
Mr. Finelli is the Principal Financial Officer and Vice President of Investment Accounting for Nationwide Funds Group3. From July 2001 until September 2007, he was Assistant Treasurer and Vice President of Investment Accounting and Operations of NWD Investments3.
      N/A       N/A
 
 
Dorothy Sanders
1955
     Chief Compliance Officer
since
October 2007 		   
Ms. Sanders is Senior Vice President and Chief Compliance Officer of NFA. She also has oversight responsibility for Investment Advisory and Mutual Fund Compliance Programs in the Office of Compliance at Nationwide. From November 2004 to October 2007, she was Senior Director and Senior Counsel at Investors Bank & Trust (now State Street Bank).
      N/A       N/A
 
 
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.
      N/A       N/A
 
 
 
 
 
 
 
2010 Semiannual Report 37

 

 
Management Information (Continued)
June 30, 2010 (Unaudited)
 
The address for each Officer is: c/o Nationwide Funds Group, 1000 Continental Drive, Suite 400, King of Prussia, PA 19406. (Continued)
 
                             
                           
      Position(s) Held with
 		          Number of Portfolios in
 		     
Name and
 		    Fund and Length of Time
 		    Principal Occupation(s)
 		    Fund Complex Overseen by
 		    Other Directorships Held
Year of Birth     Served1     During Past Five Years2     Trustee     by Trustee4
Doff Meyer
1950
     Vice President and Chief
Marketing Officer
since
January 2008 		   
Ms. Meyer is Senior Vice President and Chief Marketing Officer of Nationwide Funds Group (since August 2007)3. From September 2004 until August 2007, Ms. Meyer was Director of Finance and Marketing, Principal of Piedmont Real Estate Associates LLC.
      N/A       N/A
 
 
Lynnett Berger
1965
     Vice President and
Chief Investment Officer
since
April 2009 		   
Ms. Berger is Senior Vice President and Chief Investment Officer of Nationwide Funds Advisors and Nationwide Investment Advisors, LLC since April 2009. Ms. Berger was Director of Economic and Risk Analysis Lab of M&T Bank from 2007 through 2008, and Chief Operating Officer of MTB Investment Advisors (subsidiary of M&T Bank) from 2003 through 2007.
      N/A       N/A
 
 
1 Length of time served includes time served with the Trust’s 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.
4 Directorships held in: (1) any other investment company registered under the 1940 Act, (2) any company with a class of securities registered pursuant to Section 12 of the Exchange Act or (3) any company subject to the requirements of Section 15(d) of the Exchange Act.
 
Additional information regarding the Trustees and Officers may be found in the Trust’s 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 Fund’s proxy voting policies and procedures are available without charge (i) upon request, by calling 800-848-0920, (ii) on the Trust’s website at www.nationwide.com/mutualfunds, and (iii) on the Securities and Exchange Commission’s website at www.sec.gov.
 
 
 
38 Semiannual Report 2010

 

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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 registrant’s 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 the registrant has not done so.
Not Applicable: The information required by this item is required only in an annual report on the Form N-CSR.
Item 3. Audit Committee Financial Expert.
  (a)   (1)     Disclose that the registrant’s board of directors has determined that the registrant either:
  (i)   Has at least one audit committee financial expert serving on its audit committee; or
 
  (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, the registrant must explain why the registrant does not have an audit committee financial expert.
Not Applicable: The information required by this item is required only in an annual report on the Form N-CSR.
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 registrant’s 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 registrant’s 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.

2

 

     (e) (1) Disclose the audit committee’s 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.
     (f) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees.
     (g) Disclose the aggregate non-audit fees billed by the registrant’s accountant for services rendered to the registrant, and rendered to the registrant’s 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.
     (h) Disclose whether the registrant’s audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant’s 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 accountant’s independence.
Not Applicable: The information required by this item is required only in an annual report on the Form N-CSR.
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 (17CFR § 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 registrant’s 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.
  (b)   If applicable, provide the disclosure required by Rule 10A-3(d) under the Exchange Act (17 CFR § 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 CFR § 210.12-12], unless the schedule is included as part of the report to shareholders filed under Item 1 of this Form.
          This schedule is included as part of the report to shareholders filed under Item 1 of this Form N-CSR.
  (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;

3

 

  (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; and
 
  (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. This Item 6(b) shall terminate one year after the date on which the provisions of Section 4 of the Sudan Accountability and Divestment Act of 2007 terminate pursuant of Section 12 of the Act.
          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 company’s 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 thereunder) of the company, its investment adviser, or its principal underwriter, on the other. Include any policies and procedures of the company’s investment adviser, or any other third party, that the company uses, or that are used on the company’s behalf, to determine how to vote proxies relating to portfolio securities.
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 Company.
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 CFR § 240.10b-18(a)(3)), of shares or other units of any class of the registrant’s 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 registrant’s board of directors, where those changes were implemented after the registrant last provided

4

 

disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR § 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, concerned 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 registrant’s board of directors, where the registrant’s 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 registrant’s principal executive and principal financial officers, or persons performing similar functions, regarding the effectiveness of the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR § 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 CFR § 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Exchange Act (17 CFR § 240.13a-15(b) or § 240.15d-15(b)).
The registrant’s principal executive officer and principal financial officer have concluded, based on their evaluation of the registrant’s disclosure controls and procedures as conducted within ninety (90) days of the filing date of this report, that these disclosure controls and procedures are adequately designed and are 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 company’s management, including the investment company’s 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 Commission’s rules and forms.
(b) Disclose any change in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR § 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 registrant’s internal control over financial reporting.
There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected or are reasonably likely to materially affect, the registrant’s 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.
Not Applicable: The information required by this item is required only in an annual report on the Form N-CSR.

5

 

    (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 CFR § 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 CFR § 270.23c-1) sent or given during the period covered by the report by or on behalf of the registrant to ten (10) or more persons.
Not Applicable.
(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.
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 VARIABLE INSURANCE TRUST
 		  
By (Signature and Title)   /s/ Joseph A. Finelli    
    Name:   Joseph A. Finelli   
    Title:   Principal Financial Officer  
    Date: August 30, 2010   
 
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:   August 30, 2010   
 
     
By (Signature and Title)   /s/ Joseph A. Finelli    
    Name:   Joseph A. Finelli   
    Title:   Principal Financial Officer    
    Date:   August 30, 2010   
 
 
*   Print the name and title of each signing officer under his or her signature.

6

EX-99.CERT 2 w79649exv99wcert.htm EX-99.CERT exv99wcert
EX-99CERT
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 June 30, 2010, of Nationwide Variable Insurance Trust (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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.
         
     
August 30, 2010 /s/ Joseph A. Finelli    
Date Joseph A. Finelli   
  Principal Financial Officer   

 

 

         
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 June 30, 2010, of Nationwide Variable Insurance Trust (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 registrant’s 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 registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting; and
5.   The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s 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 registrant’s 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 registrant’s internal control over financial reporting.
         
     
August 30, 2010 /s/ Michael S. Spangler    
Date Michael S. Spangler   
  Principal Executive Officer   

 

EX-99.906CERT 3 w79649exv99w906cert.htm EX-99.CERT exv99w906cert
         
EX-99.906CERT
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 June 30, 2010, of Nationwide Variable Insurance Trust (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.
August 30, 2010
Date
         
     
/s/ Joseph A. Finelli      
Joseph A. Finelli     
Principal Financial Officer
Nationwide Variable Insurance Trust 		    
 
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 Commission’s 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 June 30, 2010, of Nationwide Variable Insurance Trust (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.
August 30, 2010
Date
         
     
/s/ Michael S. Spangler      
Michael S. Spangler     
Principal Executive Officer
Nationwide Variable Insurance Trust 		    
 
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 Commission’s staff upon request.

 

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