Nationwide Mutual Funds
PERFORMANCE SHOWN REPRESENTS PAST PERFORMANCE AND DOES NOT GUARANTEE FUTURE RESULTS. Current performance may be higher or lower than the performance shown. Investing in mutual funds involves risk, including the possible loss of principal. 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.
Performance represents average annual total returns with distributions reinvested and reflects applicable sales charges. Total returns reflect a waiver of part of each Fund’s fees for certain periods since inception, without which returns would have been lower. Average annual total returns illustrate the annual compounded returns that would have produced the cumulative total return if the fund's performance had remained constant throughout the period indicated. View Year-end Returns. Returns for periods less than one year are not annualized.
Performance quoted is for Class A shares, which have up to a 5.75% front-end sales charge and a 12b-1 fee of 0.25%. The Nationwide Bond Fund, the Nationwide Bond Index Fund and the Nationwide Government Bond Fund have up to a 4.25% front-end sales charge and a 12b-1 fee of 0.25%. The Nationwide Enhanced Income Fund and Nationwide Short Duration Bond Fund have up to a 2.25% front-end load, and a 12b-1 fee of 0.25%. Investors may be able to reduce or eliminate front-end sales charges on Class A shares based on investment size. Please consult the most recent prospectus for more details for the respective Fund.
Prime shares of the Nationwide Money Market Fund have no sales charge and no 12b-1 fee.
The expense ratios shown for all Funds are as of October 31, 2010. The difference between gross and net operating expenses reflects contractual expense limitations in place through February 29, 2012, for all Funds except the Nationwide Growth Fund. For the Nationwide Growth Fund, the difference between gross and net operating expenses reflects a contractual expense limitation in place through February 28, 2013. Please consult the most recent prospectus for more details for the respective Fund.
| Pricing | Monthly Performance | Quarterly Performance | Gross Expense Ratio | Net Expense Ratio | Inception Date | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| NAV | Change | YTD | 1 yr | 3 yr | 5yr | 10 yr or life | 1 yr | 3 yr | 5 yr | 10 yr or life | ||||
| Nationwide Alternatives Allocation Fund (NWAAX) 16, 17, 18 | ||||||||||||||
| at NAV | $9.71 | $0.01 | 5.77% | - | - | - | -4.20% | - | - | - | -8.20% | 1.11% | 0.90% | 07/25/2011 |
| w/sales charge | - | - | - | -8.24% | - | - | - | -12.07% | ||||||
| Nationwide Bond Fund (NBDAX) 1, 2, 3, 4, 5 | ||||||||||||||
| at NAV | $9.96 | $0.01 | 1.47% | 7.09% | 10.08% | 6.23% | 5.69% | 6.35% | 9.85% | 5.91% | 5.61% | 1.23% | 1.09% | 05/08/1998 |
| w/sales charge | 2.51% | 8.50% | 5.31% | 5.23% | 1.78% | 8.26% | 5.00% | 5.16% | ||||||
| Nationwide Bond Index Fund (GBIAX) 1, 2, 3, 4, 5, 6 | ||||||||||||||
| at NAV | $11.74 | - | 0.44% | 7.99% | 6.52% | 5.96% | 5.06% | 7.11% | 6.00% | 5.75% | 5.06% | 0.69% | - | 12/29/1999 |
| w/sales charge | 1.78% | 4.44% | 4.72% | 4.44% | 0.97% | 3.93% | 4.50% | 4.43% | ||||||
| Nationwide Destination 2010 Fund (NWDAX) 9 | ||||||||||||||
| at NAV | $8.42 | $0.01 | 4.21% | 0.73% | 11.38% | - | 0.54% | -1.30% | 8.15% | - | -0.13% | 0.92% | - | 08/29/2007 |
| w/sales charge | -5.04% | 9.21% | - | -0.80% | -7.00% | 6.03% | - | -1.48% | ||||||
| Nationwide Destination 2015 Fund (NWEAX) 9 | ||||||||||||||
| at NAV | $8.76 | $0.01 | 4.66% | 0.54% | 12.68% | - | 0.85% | -1.44% | 9.14% | - | 0.16% | 0.92% | - | 08/29/2007 |
| w/sales charge | -5.28% | 10.46% | - | -0.49% | -7.11% | 7.03% | - | -1.20% | ||||||
| Nationwide Destination 2020 Fund (NWAFX) 9 | ||||||||||||||
| at NAV | $8.98 | $0.01 | 5.40% | 0.29% | 14.05% | - | 0.73% | -1.98% | 10.07% | - | -0.05% | 0.92% | - | 08/29/2007 |
| w/sales charge | -5.51% | 11.81% | - | -0.61% | -7.62% | 7.92% | - | -1.41% | ||||||
| Nationwide Destination 2025 Fund (NWHAX) 9 | ||||||||||||||
| at NAV | $8.94 | $0.02 | 6.30% | -0.06% | 15.43% | - | 0.57% | -2.70% | 10.99% | - | -0.33% | 0.92% | - | 08/29/2007 |
| w/sales charge | -5.76% | 13.18% | - | -0.77% | -8.32% | 8.84% | - | -1.68% | ||||||
| Nationwide Destination 2030 Fund (NWIAX) 9 | ||||||||||||||
| at NAV | $8.92 | $0.01 | 7.21% | -0.32% | 16.60% | - | 0.06% | -3.42% | 11.67% | - | -0.96% | 0.92% | - | 08/29/2007 |
| w/sales charge | -6.01% | 14.33% | - | -1.27% | -9.01% | 9.51% | - | -2.31% | ||||||
| Nationwide Destination 2035 Fund (NWLAX) 9 | ||||||||||||||
| at NAV | $8.87 | $0.02 | 8.04% | -0.32% | 17.38% | - | -0.38% | -3.78% | 12.01% | - | -1.50% | 0.92% | - | 08/29/2007 |
| w/sales charge | -6.06% | 15.06% | - | -1.71% | -9.29% | 9.82% | - | -2.84% | ||||||
| Nationwide Destination 2040 Fund (NWMAX) 9 | ||||||||||||||
| at NAV | $8.64 | $0.02 | 8.54% | -0.71% | 18.07% | - | -1.02% | -4.49% | 12.35% | - | -2.20% | 0.93% | - | 08/29/2007 |
| w/sales charge | -6.45% | 15.76% | - | -2.33% | -9.98% | 10.18% | - | -3.53% | ||||||
| Nationwide Destination 2045 Fund (NWNAX) 9 | ||||||||||||||
| at NAV | $8.50 | $0.02 | 8.56% | -0.88% | 18.26% | - | -1.05% | -4.50% | 12.46% | - | -2.23% | 0.93% | - | 08/29/2007 |
| w/sales charge | -6.55% | 15.93% | - | -2.37% | -10.03% | 10.28% | - | -3.55% | ||||||
| Nationwide Destination 2050 Fund (NWOAX) 9 | ||||||||||||||
| at NAV | $8.25 | $0.02 | 8.70% | -0.99% | 18.49% | - | -0.91% | -4.85% | 12.65% | - | -2.12% | 0.93% | - | 08/29/2007 |
| w/sales charge | -6.71% | 16.21% | - | -2.23% | -10.32% | 10.45% | - | -3.45% | ||||||
| Nationwide Destination 2055 Fund (NTDAX) 9, 16 | ||||||||||||||
| at NAV | $10.21 | $0.02 | 8.73% | -0.78% | - | - | 0.84% | -4.67% | - | - | -4.23% | 0.93% | - | 12/27/2010 |
| w/sales charge | -6.48% | - | - | -4.46% | -10.13% | - | - | -9.68% | ||||||
| Nationwide Enhanced Income Fund (NMEAX) 1, 2, 3, 4, 5, 6, 7, 8 | ||||||||||||||
| at NAV | $8.97 | - | 0.21% | 0.31% | 0.97% | 2.10% | 2.05% | 0.11% | 1.05% | 2.11% | 2.07% | 0.80% | 0.77% | 12/29/1999 |
| w/sales charge | -1.96% | 0.21% | 1.64% | 1.82% | -2.16% | 0.29% | 1.65% | 1.84% | ||||||
| Nationwide Fund (NWFAX) | ||||||||||||||
| at NAV | $14.71 | $0.02 | 7.92% | 2.57% | 17.47% | -1.84% | 2.52% | 0.18% | 12.28% | -2.33% | 2.17% | 1.09% | - | 05/08/1998 |
| w/sales charge | -3.34% | 15.18% | -3.00% | 1.92% | -5.59% | 10.09% | -3.48% | 1.57% | ||||||
| Nationwide Government Bond Fund (NUSAX) 1, 2, 3, 4, 5, 8 | ||||||||||||||
| at NAV | $10.55 | - | 0.02% | 7.61% | 5.41% | 6.10% | 5.11% | 7.02% | 4.96% | 5.99% | 5.11% | 1.14% | - | 05/08/1998 |
| w/sales charge | 3.04% | 3.91% | 5.18% | 4.66% | 2.49% | 3.45% | 5.08% | 4.65% | ||||||
| Nationwide Growth Fund (NMFAX) | ||||||||||||||
| at NAV | $9.40 | $0.03 | 10.59% | 2.14% | 20.80% | 3.46% | 3.49% | -1.96% | 16.43% | 2.85% | 2.80% | 1.41% | 0.91% | 05/08/1998 |
| w/sales charge | -3.72% | 18.47% | 2.24% | 2.87% | -7.61% | 14.15% | 1.65% | 2.19% | ||||||
| Nationwide International Index Fund (GIIAX) 10 | ||||||||||||||
| at NAV | $6.86 | $0.02 | 9.76% | -10.06% | 13.06% | -4.48% | 5.03% | -13.12% | 6.32% | -5.28% | 3.86% | 0.74% | - | 12/29/1999 |
| w/sales charge | -15.21% | 10.87% | -5.60% | 4.41% | -18.09% | 4.27% | -6.40% | 3.25% | ||||||
| Nationwide International Value Fund (NWVAX) 10 | ||||||||||||||
| at NAV | $5.71 | $0.01 | 11.09% | -14.92% | 10.85% | - | -11.99% | -17.71% | 3.84% | - | -13.61% | 1.28% | 1.25% | 12/21/2007 |
| w/sales charge | -19.77% | 8.71% | - | -13.25% | -22.43% | 1.81% | - | -14.87% | ||||||
| Nationwide Investor Destinations Aggressive Fund (NDAAX) 9 | ||||||||||||||
| at NAV | $8.77 | $0.02 | 8.81% | -0.72% | 17.67% | -0.50% | 4.67% | -3.98% | 11.93% | -1.20% | 3.86% | 0.79% | - | 03/30/2000 |
| w/sales charge | -6.41% | 15.39% | -1.67% | 4.05% | -9.49% | 9.73% | -2.36% | 3.25% | ||||||
| Nationwide Investor Destinations Conservative Fund (NDCAX) 9 | ||||||||||||||
| at NAV | $10.40 | - | 1.96% | 3.84% | 7.08% | 3.51% | 4.07% | 2.94% | 5.91% | 3.31% | 3.91% | 0.79% | - | 03/30/2000 |
| w/sales charge | -2.09% | 5.00% | 2.29% | 3.46% | -2.97% | 3.85% | 2.09% | 3.30% | ||||||
| Nationwide Investor Destinations Moderate Fund (NADMX) 9 | ||||||||||||||
| at NAV | $9.78 | $0.01 | 5.50% | 2.08% | 13.10% | 1.93% | 4.65% | 0.03% | 9.77% | 1.48% | 4.18% | 0.76% | - | 03/30/2000 |
| w/sales charge | -3.82% | 10.88% | 0.73% | 4.04% | -5.73% | 7.65% | 0.28% | 3.56% | ||||||
| Nationwide Investor Destinations Moderately Aggressive Fund (NDMAX) 9 | ||||||||||||||
| at NAV | $9.38 | $0.02 | 7.45% | 0.43% | 15.77% | 0.69% | 4.81% | -2.18% | 11.21% | 0.11% | 4.14% | 0.77% | - | 03/30/2000 |
| w/sales charge | -5.37% | 13.50% | -0.49% | 4.19% | -7.83% | 9.04% | -1.07% | 3.53% | ||||||
| Nationwide Investor Destinations Moderately Conservative Fund (NADCX) 9 | ||||||||||||||
| at NAV | $10.27 | $0.01 | 3.74% | 3.65% | 10.39% | 3.04% | 4.55% | 2.21% | 8.24% | 2.73% | 4.23% | 0.79% | - | 03/30/2000 |
| w/sales charge | -2.27% | 8.22% | 1.83% | 3.93% | -3.68% | 6.14% | 1.52% | 3.62% | ||||||
| Nationwide Mid Cap Market Index Fund (GMXAX) 13 | ||||||||||||||
| at NAV | $14.56 | $0.02 | 10.81% | 1.63% | 24.26% | 3.11% | 6.96% | -2.81% | 18.64% | 2.53% | 6.21% | 0.68% | - | 12/29/1999 |
| w/sales charge | -4.24% | 21.83% | 1.89% | 6.32% | -8.39% | 16.31% | 1.32% | 5.59% | ||||||
| Nationwide Money Market Fund Prime Shares (MIFXX) 11 | ||||||||||||||
| at NAV | $1.00 | - | 0.00% | 0.00% | 0.00% | 1.29% | 1.66% | 0.00% | 0.01% | 1.38% | 1.67% | - | - | 03/03/1980 |
| w/sales charge | - | - | - | - | - | - | - | - | ||||||
| Nationwide Retirement Income Fund (NWRAX) 9 | ||||||||||||||
| at NAV | $9.46 | $0.01 | 3.05% | 0.70% | 8.18% | - | 2.56% | -0.85% | 6.16% | - | 2.08% | 0.92% | - | 08/29/2007 |
| w/sales charge | -5.07% | 6.08% | - | 1.20% | -6.57% | 4.09% | - | 0.69% | ||||||
| Nationwide S&P 500 Index Fund (GRMAX) 6 | ||||||||||||||
| at NAV | $11.19 | $0.03 | 7.49% | 3.57% | 18.58% | -0.21% | 2.99% | 1.46% | 13.52% | -0.78% | 2.39% | 0.62% | - | 12/30/1999 |
| w/sales charge | -2.35% | 16.26% | -1.38% | 2.38% | -4.38% | 11.30% | -1.94% | 1.78% | ||||||
| Nationwide Short Duration Bond Fund (MCAPX) 1, 2, 3, 4, 5, 6, 7 | ||||||||||||||
| at NAV | $10.16 | - | 0.41% | 1.42% | 2.76% | 3.25% | 3.05% | 1.21% | 2.86% | 3.21% | 3.05% | 0.99% | 0.85% | 07/16/2003 |
| w/sales charge | -0.84% | 1.98% | 2.77% | 2.81% | -1.03% | 2.08% | 2.74% | 2.81% | ||||||
| Nationwide Small Cap Index Fund (GMRAX) 14 | ||||||||||||||
| at NAV | $12.13 | $0.02 | 11.80% | 2.28% | 22.45% | 0.61% | 5.79% | -4.66% | 15.04% | -0.42% | 4.95% | 0.69% | - | 12/29/1999 |
| w/sales charge | -3.59% | 20.05% | -0.57% | 5.17% | -10.11% | 12.80% | -1.59% | 4.33% | ||||||
| Nationwide Small Company Growth Fund (NWSAX) 14, 19, 20, 21, 22, 23 | ||||||||||||||
| at NAV | $11.01 | $0.01 | 0.00% | - | - | - | 6.00% | - | - | - | - | 1.55% | 1.44% | 11/01/2011 |
| w/sales charge | - | - | - | -0.09% | - | - | - | - | ||||||
| Nationwide U.S. Small Cap Value Fund (NWUAX) 12, 14, 15 | ||||||||||||||
| at NAV | $10.97 | $0.05 | 12.74% | 0.01% | 23.89% | - | 2.28% | -6.17% | 15.20% | - | 0.63% | 1.79% | 1.37% | 12/21/2007 |
| w/sales charge | -5.70% | 21.44% | - | 0.82% | -11.55% | 12.96% | - | -0.84% | ||||||
Returns until the first offering of specific classes are based on the previous performance of various classes of the Fund as noted below. This performance is substantially similar to what the individual classes would have produced because all classes invest in the same portfolio of securities. Performance has been adjusted to reflect differences in applicable sales charges, if any, for individual classes. Performance has not been adjusted to reflect different expense levels, which if reflected may have resulted in higher or lower performance for a given share class.
Class A
Nationwide Bond Index Fund Class A performance through December 29, 1999 includes the previous performance of the Series (which began operations on April 3, 1997).
Nationwide S&P 500 Index Fund Class A performance through December 30, 1999 is based on the performance of the Fund's Local Fund shares (which began operations July 24, 1998 and are no longer offered by the Fund).
Nationwide Short Duration Bond Fund Class A performance through July 16, 2003 is based on the performance of the Fund's IRA Class shares (which began operations February 1, 1999 and are no longer offered by the Fund).
Nationwide Small Cap Index Fund Class A performance through December 29, 1999 is based on the previous performance of the Series (which began operations on April 9, 1997).
Class B
Nationwide Bond Fund Class B performance through September 4, 2003 is based on the Fund’s Class X shares (which began operations May 8, 1998 and are no longer offered by the Fund).
Nationwide Bond Index Fund Class B performance through October 12, 2001 is based on the previous performance of the Series (which began operations on April 3, 1997) for the period through December 28, 1999, and the Fund’s Class A shares for the period from December 29, 1999 to October 12, 2001.
Nationwide Government Bond Fund Class B performance through September 4, 2003 is based on the Fund’s Class X shares (which began operations May 8, 1998 and are no longer offered by the Fund).
Nationwide Mid Cap Market Index Fund Class B performance through May 25, 2001 is based on the Fund’s Class A shares (which began operations on December 29, 1999).
Nationwide S&P 500 Index Fund Class B performance through December 30, 1999 is based on the performance of the Fund’s Local Fund shares (which began operations July 24, 1998 and are no longer offered by the Fund).
Nationwide Small Cap Index Fund Class B performance through November 28, 2001 is based on the previous performance of the Series (which began operations on April 3, 1997) for the period through December 28, 1999 and the Fund’s Class A shares for the period from December 29, 1999 to November 28, 2001.
Class C
Returns until the first offering of specific classes are based on the previous performance of various classes of the Fund as noted below. This performance is substantially similar to what the individual classes would have produced because all classes invest in the same portfolio of securities. Performance has been adjusted to reflect differences in applicable sales charges, if any, for individual classes. Performance has not been adjusted to reflect different expense levels, which if reflected may have resulted in higher or lower performance for a given share class.
Nationwide Fund Class C performance through March 1, 2001 is based on the Fund’s Class D shares (which began operations May 11, 1933).
Nationwide Bond Fund Class C performance through September 4, 2003 is based on the Fund’s Class D shares (which began operations on March 1, 1980) through March 1, 2001 and the Fund’s Class Y shares (which are no longer offered by the Fund) for the period from March 2, 2001 to September 4, 2003.
Nationwide Bond Index Fund Class C performance through March 29, 2006 is based on the previous performance of the Series (which began operations on April 3, 1997) for the period through December 28, 1999, the Fund’s Class A shares for the period from December 29, 1999 to October 11, 2001, and the Fund’s Class B shares for the period from October 12, 2001 through March 29, 2006.
Nationwide Government Bond Fund Class C performance through September 4, 2003 is based on the Fund’s Class D shares (which began operations on March 1, 1980) through March 1, 2001 and the Fund’s Class Y shares (which are no longer offered by the Fund) for the period from March 2, 2001 to September 4, 2003.
Nationwide Growth Fund Class C performance through March 1, 2001 is based on the Fund’s Class D shares (which began operations February 14, 1961).
Nationwide International Index Fund Class C performance through February 14, 2005 is based on the Fund’s Class B shares (which began operations December 29, 1999).
The Nationwide Investor Destinations Funds’ Class C performance through March 1, 2001 is based on each Fund’s Class B shares (which began operations March 30, 2000).
Nationwide Large Cap Value Fund Class C performance through March 1, 2001 is based on the Fund’s Class B shares (which began operations November 2, 1998).
Nationwide Mid Cap Market Index Fund Class C performance through October 22, 2003 is based on the performance of the Fund’s Class A shares (which began operations December 29, 1999) for the period through May 24, 2001, and the Fund’s Class B shares for the period from May 25, 2001 through October 22, 2003.
Nationwide S&P 500 Index Fund Class C performance through October 22, 2003 is based on the performance of the Fund’s Local Fund shares (which began operations July 24, 1998 and are no longer offered by the Fund) through December 28, 1999 and the Fund’s Class B shares from December 29, 1999 through October 22, 2003.
Nationwide Short Duration Bond Fund Class C performance through February 28, 2005 is based on the Fund’s Class A shares (which began operations July 16, 2003).
Class Other
Nationwide Fund Institutional Class performance through June 29, 2004 is based on the Fund’s Class D shares, (which began operations May 11, 1933).
Nationwide Bond Fund Institutional Class performance through June 29, 2004 is based on the Fund’s Class D shares (which began operations on March 1, 1980).
Nationwide Bond Index Fund Institutional Class performance through December 29, 1999 is based on the previous performance of the Series (which began operations on April 3, 1997).
The Nationwide Investor Destinations Funds’ Institutional Class performance through December 29, 2004 is based on each Fund’s Service Class shares (which began operations March 30, 2000).
Nationwide Growth Fund Institutional Service Class performance through January 2, 2002 and Institutional Class performance through June 29, 2004 is based on the Fund’s Class D shares (which began operations February 14, 1961).
Nationwide Large Cap Value Fund Institutional Service Class performance through December 31, 2008 is based on the Fund’s Class A shares (which began operations November 2, 1998).
Nationwide Money Market Service Class performance through January 4, 1999 and Institutional Class performance through December 31, 2001 are based on the Fund’s Prime shares (which began operations on March 3, 1980).
Nationwide S&P 500 Index Fund Institutional Class performance through December 29, 1999 is based on the performance of the Fund’s Local Fund shares (which began operations July 24, 1998 and are no longer offered by the Fund).
Nationwide Small Cap Index Fund Institutional Class performance through December 29, 1999 is based on the previous performance of the Series (which began operations on April 3, 1997).
1. The Fund may be subject to interest rate risk. Generally, when interest rates go up, the value of fixed-income securities goes down.
2. The Fund may be subject to extension risk. When interest rates rise, certain bond obligations will be paid off by the issuer more slowly than anticipated. This can cause the market value of the security to fall because the market may view its interest rate as too low for a longer-term investment.
3. The Fund may be subject to prepayment, call and redemption risks. Certain bonds will be paid off by the issuer more quickly than anticipated. If this happens, the Fund may be required to invest the proceeds in securities with lower yields.
4. The Fund may be subject to liquidity risk, which is the risk that a security cannot be sold, or cannot be sold quickly, at an acceptable price.
5. The Fund may be subject to credit risk. A bond issuer may be unable to pay the interest or principal when due.
6. The Fund may purchase securities in derivatives, which can be very volatile and carry high transaction costs.
7. The Fund may purchase mortgage-backed and asset-backed securities, which are sensitive to fluctuations in interest rates. In addition, these securities are subject to prepayment, which may cause the Fund to reinvest in securities with lower interest rates.
8. While the Fund may invest in securities of the U.S. government and its agencies, the Fund's value is not guaranteed by these entities.
9. The Nationwide Target Destination Funds and the Nationwide
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 the Nationwide Target Destination Funds or the Nationwide
Investor Destinations Funds, each investor is indirectly paying a
proportionate share of the applicable fees and expenses of the underlying
funds. In general, a Nationwide Target Destination Fund with a later
target date is expected to be more volatile, and thus riskier, because of
its greater allocation to equity securities than a fund with an earlier
target date. A fund at its target date through the next 20 years is
expected to be less volatile than a fund in its “pre-target-date” stage.
The Nationwide Retirement Income Fund, which is the vehicle intended to
serve investors who are approximately 20 years beyond a fund's target
date, is expected to be the least volatile of the funds due to the
Retirement Income Fund's further reduced exposure to equity securities.
Each Target Destination and Investor Destinations 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).
10. International investing involves additional risks, including currency fluctuations, differences in accounting standards, economic and political instability, illiquidity and higher trading costs, and differences in foreign regulations, all of which are magnified in emerging markets.
11. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although a money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund.
12. Value stocks can react differently to issuer, political, market and economic developments than the market overall and other types of stocks. This can cause the Fund to underperform other funds that use different investing styles.
13. Mid-sized company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility. The Fund may purchase securities in derivatives, which can be very volatile and carry high transaction costs.
14. Small-company stocks have higher risks than the stocks of larger, more established companies and have significant short-term price volatility.
15. A portfolio that targets its investments to companies of different sizes within a broad small-capitalization range may fail to produce the returns and/or diversification benefits of the overall U.S. small-capitalization market. The risks of investing in this Fund are more fully detailed within the Fund's prospectus.
16. Since the Fund is new, the gross expense ratio is estimated based on the Fund's projected net assets for the fiscal year ending October 31, 2011.
17. The difference between gross and net annual Fund operating expenses reflects contractual fee waivers in place for all classes of this Fund through February 29, 2012. Please see the most recent summary prospectus and/or prospectus for the Fund for details.
18. Asset allocation is the process of spreading assets across several different investment styles and asset classes. The Fund is designed to provide asset allocation across several types of alternative investments in an attempt to achieve investment performance that often has a low correlation to the performance of more traditional investments. The Fund consists of separate sleeves to represent the investments in each of the different asset classes.
Each sleeve invests in securities and derivatives with the goal of matching the performance of a specified asset class index. Although each sleeve may invest in the securities included in its respective index, each of the international bonds, high-yield bonds, emerging market bonds and emerging market stocks sleeves invests primarily in derivatives as a substitute for investing in such securities in an attempt to synthetically replicate the performance of the sleeve’s index.
Instead of investing directly in physical commodities, the commodities sleeve invests in commodity-linked notes, commodity futures and commodity-linked swaps, all of which are derivatives. Investing in commodities and commodities-linked investments may expose the Fund to increased volatility and decreased liquidity due to several factors, including changes in supply-and-demand relationships; weather; agriculture; disease; fiscal and exchange control programs; and international economic, political, military and regulatory developments.
Derivatives can increase losses and reduce opportunities for gains when the security or commodity prices, currency values, index values, interest rates or other such measures underlying the instruments change in unexpected ways. Derivatives also present default risks if the counterparty to a derivatives contract fails to fulfill its obligations to the Fund.
In addition, the Fund is subject to specific investment risks such as those associated with: (i) bonds and high-yield bonds, (ii) international and emerging market securities, and (iii) real estate investment trusts (REITs).
The Fund is a nondiversified fund, which means that a relatively high percentage of the Fund’s assets may be invested in a limited number of issuers.
The Nationwide Alternatives Allocation Fund is subject to a number of risks and may not be suitable for all investors. The Fund is not intended to serve as a complete investment program. There is no assurance that the investment objective of any fund will be achieved.
19. Growth funds may underperform other funds that use different investing styles.
20. The Fund is subject to risks associated with using a targeted strategy for stock selection.
21. Investments in particular industries or sectors may be more volatile than the overall stock market.
22. Equity investments are subject to stock market risk and portfolio turnover risk.
23. Since the Fund is new, the gross expense ratio is estimated based on the Fund's projected average net assets for the fiscal year ending October 31, 2012. The difference between gross and net annual Fund operating expenses reflects contractual fee waivers in place for all classes of this Fund through February 28, 2013.
