This illustration is strictly hypothetical and uses indexes to represent applicable asset classes. These indexes do not bear the fees and expenses of real-world investments, and you cannot invest directly into them. Index performance is not indicative of the performance of any Nationwide fund.

Hypothetical portfolios: allocations and indexes

IMPORTANT DISCLOSURES

Nationwide offers mutual funds with investment strategies similar to those referenced on this site. Please visit nationwide.com/mutualfunds for more information.

This illustration is hypothetical and is not intended to serve as a prediction or projection of the investment results of any specific investment. This tool does not include the impact of any expenses or taxes that would be associated with an actual investment. This tool is provided only as an educational tool, and Nationwide is not responsible for the consequences of any decisions or actions taken as a result of the information provided by this tool. Allocations and their percentages should change based on an individual investor’s needs.

Investing in mutual funds involves risk, including the possible loss of principal. Investors’ shares, when redeemed, may be worth more or less than their original cost.

The use of diversification and asset allocation as part of an overall investment strategy does not ensure a profit or protect against loss in a declining market.

Keep in mind that we use market indexes to represent the hypothetical portfolios and asset classes presented within this site. You cannot invest directly in an index. These indexes do not reflect the fees, charges or costs a real-world portfolio would incur. If these costs were reflected, results would be lower. Actual results will vary. Market index performance is provided by a third-party source Nationwide Funds Group deems to be reliable.

The indexes used to determine the return and risk figures for the portfolios shown were: Global real estate by Dow Jones Wilshire Global Real Estate Securities Index, Commodities by Dow Jones-UBS Commodity Index, Emerging markets equity by MSCI Emerging Markets Total Return Index, Bonds by Barclays U.S. Aggregate Bond Index, Emerging markets debt by Barclays Emerging Markets Bond Index, High-yield bonds by Barclays U.S. High-Yield Very Liquid Index, Treasury Inflation Protected Securities (TIPS) by Barclays U.S. Government Inflation-Linked Bond Index, International debt by S&P/Citigroup International Treasury Bond ex-U.S. Index, Short-term bonds by Citigroup Government/Corporate 1-3 Year Index, Cash equivalents by Citigroup 3-month Treasury Bill Index, International stocks by MSCI EAFE Index, Small-cap stocks by Russell 2000 Index, Large-cap stocks by Standard & Poor’s 500 Index, Mid-cap stocks by Standard & Poor’s MidCap 400 Index. See index definitions below.

The emerging market stock sleeve of the Fund is indexed to an MSCI index. The Fund is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Nationwide and the Nationwide Funds.

Barclays Emerging Markets Bond Index:

An unmanaged index that tracks total returns for external-currency-denominated debt instruments of the emerging markets

Barclays U.S. Aggregate Bond Index:

An unmanaged index comprised of intermediate-term government bonds, investment grade corporate debt securities and mortgage backed securities

Barclays U.S. Government Inflation-Linked Bond Index:

An unmanaged index that measures the performance of the U.S. Treasury Inflation-Protected Securities (TIPS) market; includes publicly issued TIPS with a total outstanding issue size of $500 million or more and a remaining maturity of one year or more on the index rebalancing date

Barclays U.S. High-Yield Very Liquid Index:

An unmanaged index that measures the performance of publicly issued, U.S. dollar denominated, non-investment-grade, fixed-rate, taxable corporate bonds (excluding emerging markets debt) with a remaining maturity of one year or more and an outstanding face value of $600 million or more; high-yield securities are those with a middle credit rating from Moody’s, Fitch and Standard & Poor’s of Ba1/BB+/BB+, respectively

Citigroup Government/Corporate 1—3 Year Index:

An unmanaged index comprising government sponsored and corporate bonds with maturities of one to three years

Citigroup 3-month Treasury Bill (T-Bill) Index:

An unmanaged index that is generally representative of 3-month Treasury bills; consists of an average of the last 3-month Treasury bill issues (excluding the current month-end bill) Investments in bonds are subject to interest rate, inflation and credit risks that can cause the price of a bond to fluctuate

Dow Jones-UBS Commodity Index:

An unmanaged, rolling commodities index that comprises futures contracts on physical commodities traded on U.S. exchanges; serves as a liquid, diversified benchmark for the commodities asset class, whose returns historically have been positively correlated with inflation measures and negatively correlated with the returns of stocks and bonds

Dow Jones (DJ) Wilshire Global Real Estate Securities Index:

An unmanaged index that measures the performance of publicly traded securities of real estate operating companies (REOCs) and real estate investment trusts (REITs)

MSCI Emerging Markets Total Return Index:

An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of the stocks in emerging-country markets; the total return component measures whole market performance, including price performance and income from dividend payments

MSCI Europe, Australasia and Far East (EAFE®) Index:

An unmanaged, free float-adjusted, market capitalization-weighted index that is designed to measure the performance of stocks in developed markets outside the United States and Canada. Investing internationally involves risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and the limited availability of information, all of which are magnified in emerging markets

Russell 2000® Index:

An unmanaged index of approximately 2,000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies

Standard & Poor’s 500® (S&P 500) Index:

An unmanaged, market capitalization-weighted index of 500 widely held stocks of large-cap U.S. companies that gives a broad look at how the stock prices of those companies have performed

S&P/Citigroup International Treasury Bond ex-U.S. Index:

An unmanaged index that measures the performance of Treasury bonds with a remaining maturity of one year or more issued in local currencies by developed market countries outside the United States; each country’s bonds are market value-weighted, and country weights are modified market weighted to balance levels of debt outstanding and to achieve diversification

Standard & Poor’s MidCap 400® (S&P 400) Index:

An unmanaged index of 400 stocks of medium-sized U.S. companies. Stocks of small-cap, mid-cap or emerging companies may have less liquidity than those of larger, more established companies and may be subject to greater price volatility and risk than the overall stock market

The alternatives strategies and asset classes mentioned are not suitable for all investors. Many alternatives strategies use sophisticated and aggressive investment techniques such as leveraging, short selling and derivatives. Leveraging creates an opportunity for greater total return, but creates special risks.

Leveraging may exaggerate changes in performance, either positively or negatively. The use of short selling involves increased risks and costs, including paying more for a security than received from its sale. Stocks sold short have the risk of unlimited losses. The use of derivatives such as futures, options and swap agreements may expose an investment to additional risks beyond those of investing directly in the securities underlying those derivatives. In addition, certain alternative strategies tied to hard assets such as commodities, currencies and real estate may be subject to greater volatility as they may be affected by overall market movements, changes in interest rates or factors affecting a particular industry, commodity or currency, such as weather, disease, embargoes, acts of war or terrorism, and international economic, political and regulatory developments. No investment strategy can guarantee a return. In addition, investors could lose all or a substantial amount of their investment. For more information about these strategies and their risks, please consult your financial advisor.

This material is not intended to be a comprehensive overview of the subject matters discussed. It is intended to be general in nature and should not be construed as investment advice or a recommendation of any specific security or strategy. Before investing in any of the investment products or strategies discussed, consult with your financial advisor to determine if they are appropriate for your objectives, risk tolerance, income level and investing time horizon.

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 Funds, please call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download a summary prospectus and/or a prospectus at nationwide.com/mutualfunds. Please read it carefully before investing any money.

ABOUT NATIONWIDE FUNDS GROUP (NFG)

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 Funds. 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.

DISTRIBUTOR

Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), Member FINRA, 1000 Continental Drive, Suite 400, King of Prussia, Pa. 19406. NFD is not an affiliate of Goldman Sachs Asset Management, L.P.

Nationwide, the Nationwide framemark, Nationwide Funds, Nationwide Funds Group and On Your Side are service marks of Nationwide Mutual Insurance Company.

Nationwide Funds
1000 Continental Drive, Suite 400, King of Prussia, PA 19406
Shareholder services and 24-hour account access: 1-800-848-0920
National Sales Desk: 1-877-877-5083
nationwide.com/mutualfunds

©2011 Nationwide Funds Group. All rights reserved.

MFM-0118AO.2 7/12

ASSET CLASS DEFINITIONS

Global real estate^{1, 2}: Generally includes real estate investment trusts (REITs) and real estate operating companies (REOCs) that manage real estate investment portfolios around the world to earn profits for their interest holders; these might include investments in shopping centers, medical facilities, office buildings, industrial warehouses and other types of real estate

Commodities³: Tangible assets such as grains, metals and oil

Treasury Inflation Protected Securities (TIPS)⁴: Similar to Treasury bonds, but the principal and coupon payments are adjusted to eliminate the effects of inflation; TIPS offer a low rate of return because they are considered a safer type of investment

Emerging markets equity¹: Investments in the stocks of companies within developing countries such as Mexico and Malaysia

Emerging markets debt^{1, 4}: Bonds issued by banks and other sources within developing, low- to middle-income countries

International debt^{1, 4}: Bonds featuring maturities of at least one year that are issued by governments of developed countries outside of the United States, including Australia, Canada, Japan, Spain and the United Kingdom

High-yield bonds^{4, 5}: High-paying bonds that are considered riskier; rated below investment-grade corporate bonds

Large-cap stocks: Shares of ownership in corporations with a market capitalization⁷ greater than $7.7 billion (subject to change)

Mid-cap stocks⁶: Shares of ownership in corporations with a market capitalization⁷ of $1.8 billion to $7.7 billion (subject to change)

Small-cap stocks⁶: Shares of ownership in corporations with a market capitalization⁷ below $1.8 billion (subject to change)

International stocks¹: Shares of ownership in corporations headquartered outside the United States

Bonds⁴: IOUs issued by governments or corporations

Short-term bonds⁴: Investment-grade IOUs with an average duration of 1 to 3 years or an average effective maturity of 1 to 4 years

Cash equivalents: Short-term IOUs issued by governments, corporations or financial institutions

1. International investing involves risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and the limited availability of information.
2. Real estate investments are sensitive to economic and business cycles, changing demographic patterns and government actions.
3. Investments in a concentrated sector or that focus on a relatively small number of securities may be subject to greater volatility than that of a more diversified investment.
4. Bond investments have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the investment vehicle/fund.
5. Investments in high-yield debt securities are subject to greater credit risk and price fluctuations than investments in higher-quality debt securities.
6. Investments in stocks of small, mid-cap or emerging companies may have less liquidity than that of investments in stocks of larger, established companies and may be subject to greater price volatility and risk than that of the overall stock market.
7. Market capitalization is the aggregate value of a company calculated by multiplying the number of shares outstanding by the share price.