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 Alternatives Allocation Fund, 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 0.25% 12b-1 fee . The Nationwide Enhanced Income Fund and the Nationwide Short Duration Bond Fund have up to a 2.25% front-end sales charge, and a 0.25% 12b-1 fee. 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, 2011. The difference between gross and net operating expenses reflects contractual expense waivers in place for all classes through February 28, 2013, and for Service Class Shares of the Nationwide Money Market Fund 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, 18 | ||||||||||||||
| at NAV | $9.25 | $0.04 | 0.76% | - | - | - | -3.70% | - | - | - | -4.10% | 1.14% | 1.00% | 07/25/2011 |
| w/sales charge | - | - | - | -7.76% | - | - | - | -8.14% | ||||||
| Nationwide Bond Fund (NBDAX) 1, 2, 3, 4, 5, 17, 24, 25, 26 | ||||||||||||||
| at NAV | $10.01 | $-0.02 | 2.99% | 6.39% | 9.91% | 6.12% | 5.80% | 6.83% | 10.24% | 6.02% | 5.89% | 1.18% | 0.85% | 05/08/1998 |
| w/sales charge | 1.90% | 8.33% | 5.21% | 5.34% | 2.27% | 8.64% | 5.11% | 5.44% | ||||||
| Nationwide Bond Index Fund (GBIAX) 1, 2, 3, 4, 5, 6, 26, 27 | ||||||||||||||
| at NAV | $11.79 | $-0.01 | 1.56% | 6.91% | 6.30% | 5.64% | 5.03% | 7.08% | 6.01% | 5.52% | 5.11% | 0.68% | - | 12/29/1999 |
| w/sales charge | 2.32% | 4.23% | 4.39% | 4.41% | 2.54% | 3.95% | 4.27% | 4.49% | ||||||
| Nationwide Destination 2010 Fund (NWDAX) 9 | ||||||||||||||
| at NAV | $8.23 | $0.04 | 1.87% | -2.43% | 10.46% | - | 0.87% | 0.09% | 12.44% | - | 0.86% | 0.92% | - | 08/29/2007 |
| w/sales charge | -8.05% | 8.29% | - | -0.40% | -5.63% | 10.26% | - | -0.43% | ||||||
| Nationwide Destination 2015 Fund (NWEAX) 9 | ||||||||||||||
| at NAV | $8.55 | $0.05 | 2.16% | -2.40% | 11.68% | - | 1.30% | 0.32% | 13.97% | - | 1.30% | 0.92% | - | 08/29/2007 |
| w/sales charge | -8.05% | 9.47% | - | 0.02% | -5.46% | 11.74% | - | 0.00% | ||||||
| Nationwide Destination 2020 Fund (NWAFX) 9 | ||||||||||||||
| at NAV | $8.72 | $0.07 | 2.35% | -2.72% | 12.77% | - | 1.25% | 0.41% | 15.69% | - | 1.32% | 0.91% | - | 08/29/2007 |
| w/sales charge | -8.32% | 10.58% | - | -0.03% | -5.35% | 13.44% | - | 0.02% | ||||||
| Nationwide Destination 2025 Fund (NWHAX) 9 | ||||||||||||||
| at NAV | $8.62 | $0.09 | 2.50% | -3.16% | 13.99% | - | 1.20% | 0.27% | 17.40% | - | 1.29% | 0.90% | - | 08/29/2007 |
| w/sales charge | -8.71% | 11.75% | - | -0.08% | -5.47% | 15.13% | - | -0.01% | ||||||
| Nationwide Destination 2030 Fund (NWIAX) 9 | ||||||||||||||
| at NAV | $8.55 | $0.11 | 2.76% | -3.35% | 15.12% | - | 0.83% | 0.55% | 19.03% | - | 0.97% | 0.91% | - | 08/29/2007 |
| w/sales charge | -8.88% | 12.87% | - | -0.44% | -5.21% | 16.72% | - | -0.32% | ||||||
| Nationwide Destination 2035 Fund (NWLAX) 9 | ||||||||||||||
| at NAV | $8.45 | $0.12 | 2.92% | -3.16% | 15.87% | - | 0.47% | 0.95% | 20.20% | - | 0.64% | 0.91% | - | 08/29/2007 |
| w/sales charge | -8.75% | 13.63% | - | -0.80% | -4.87% | 17.82% | - | -0.65% | ||||||
| Nationwide Destination 2040 Fund (NWMAX) 9 | ||||||||||||||
| at NAV | $8.19 | $0.12 | 2.89% | -3.89% | 16.41% | - | -0.12% | 0.38% | 20.95% | - | 0.05% | 0.92% | - | 08/29/2007 |
| w/sales charge | -9.44% | 14.13% | - | -1.38% | -5.42% | 18.59% | - | -1.23% | ||||||
| Nationwide Destination 2045 Fund (NWNAX) 9 | ||||||||||||||
| at NAV | $8.05 | $0.13 | 2.81% | -4.04% | 16.63% | - | -0.16% | 0.38% | 21.33% | - | 0.04% | 0.92% | - | 08/29/2007 |
| w/sales charge | -9.54% | 14.38% | - | -1.42% | -5.37% | 18.94% | - | -1.24% | ||||||
| Nationwide Destination 2050 Fund (NWOAX) 9 | ||||||||||||||
| at NAV | $7.80 | $0.12 | 2.77% | -4.23% | 16.53% | - | -0.03% | 0.13% | 21.27% | - | 0.16% | 0.92% | - | 08/29/2007 |
| w/sales charge | -9.77% | 14.28% | - | -1.28% | -5.66% | 18.88% | - | -1.13% | ||||||
| Nationwide Destination 2055 Fund (NTDAX) 9 | ||||||||||||||
| at NAV | $9.65 | $0.15 | 2.77% | -4.06% | - | - | 3.71% | 0.46% | - | - | 4.68% | 0.92% | - | 12/27/2010 |
| w/sales charge | -9.60% | - | - | -0.77% | -5.30% | - | - | -0.14% | ||||||
| Nationwide Enhanced Income Fund (NMEAX) 1, 2, 3, 4, 5, 7, 17 | ||||||||||||||
| at NAV | $8.95 | - | 0.24% | 0.24% | 0.70% | 1.87% | 1.99% | 0.49% | 0.88% | 1.95% | 2.04% | 0.73% | 0.71% | 12/29/1999 |
| w/sales charge | -2.04% | -0.06% | 1.41% | 1.76% | -1.80% | 0.12% | 1.49% | 1.81% | ||||||
| Nationwide Fund (NWFAX) 22, 28 | ||||||||||||||
| at NAV | $14.05 | $0.19 | 3.11% | 0.81% | 16.54% | -1.51% | 3.11% | 5.10% | 20.84% | -0.48% | 2.84% | 1.03% | - | 05/08/1998 |
| w/sales charge | -5.01% | 14.27% | -2.67% | 2.50% | -0.95% | 18.46% | -1.66% | 2.24% | ||||||
| Nationwide Government Bond Fund (NUSAX) 1, 2, 3, 4, 5, 8, 24, 27 | ||||||||||||||
| at NAV | $10.64 | $-0.01 | 1.44% | 6.16% | 4.91% | 5.68% | 4.96% | 6.06% | 4.33% | 5.52% | 5.08% | 1.13% | - | 05/08/1998 |
| w/sales charge | 1.68% | 3.39% | 4.77% | 4.51% | 1.55% | 2.83% | 4.61% | 4.63% | ||||||
| Nationwide Growth Fund (NMFAX) 17, 19, 22, 27 | ||||||||||||||
| at NAV | $9.27 | $0.26 | 9.06% | 5.21% | 19.99% | 4.38% | 5.14% | 8.50% | 23.99% | 5.49% | 4.56% | 1.33% | 0.81% | 05/08/1998 |
| w/sales charge | -0.80% | 17.64% | 3.15% | 4.52% | 2.26% | 21.56% | 4.24% | 3.94% | ||||||
| Nationwide International Index Fund (GIIAX) 6, 22, 26 | ||||||||||||||
| at NAV | $6.21 | $0.10 | -0.64% | -13.73% | 11.36% | -5.13% | 4.66% | -6.15% | 16.39% | -4.07% | 4.90% | 0.73% | - | 12/29/1999 |
| w/sales charge | -18.64% | 9.16% | -6.25% | 4.03% | -11.50% | 14.13% | -5.20% | 4.29% | ||||||
| Nationwide International Value Fund (NWVAX) 10, 12, 15, 17, 22, 26, 27 | ||||||||||||||
| at NAV | $5.14 | $0.08 | 0.00% | -15.10% | 8.97% | - | -10.55% | -8.55% | 14.56% | - | -10.34% | 1.29% | 1.25% | 12/21/2007 |
| w/sales charge | -19.97% | 6.83% | - | -11.76% | -13.83% | 12.35% | - | -11.57% | ||||||
| Nationwide Investor Destinations Aggressive Fund (NDAAX) 9 | ||||||||||||||
| at NAV | $8.33 | $0.14 | 3.35% | -3.03% | 16.52% | -0.40% | 4.99% | 1.65% | 21.09% | 0.50% | 4.87% | 0.74% | - | 03/30/2000 |
| w/sales charge | -8.61% | 14.24% | -1.57% | 4.36% | -4.20% | 18.75% | -0.69% | 4.25% | ||||||
| Nationwide Investor Destinations Conservative Fund (NDCAX) 9 | ||||||||||||||
| at NAV | $10.35 | $0.03 | 1.79% | 3.02% | 6.74% | 3.40% | 4.14% | 4.13% | 7.50% | 3.56% | 4.12% | 0.74% | - | 03/30/2000 |
| w/sales charge | -2.93% | 4.67% | 2.18% | 3.52% | -1.88% | 5.40% | 2.34% | 3.50% | ||||||
| Nationwide Investor Destinations Moderate Fund (NADMX) 9 | ||||||||||||||
| at NAV | $9.52 | $0.10 | 2.80% | 0.43% | 12.41% | 1.97% | 4.91% | 3.51% | 15.05% | 2.53% | 4.81% | 0.73% | - | 03/30/2000 |
| w/sales charge | -5.30% | 10.21% | 0.78% | 4.29% | -2.45% | 12.81% | 1.32% | 4.19% | ||||||
| Nationwide Investor Destinations Moderately Aggressive Fund (NDMAX) 9 | ||||||||||||||
| at NAV | $9.00 | $0.12 | 3.09% | -1.55% | 14.84% | 0.74% | 5.10% | 2.60% | 18.57% | 1.52% | 4.98% | 0.73% | - | 03/30/2000 |
| w/sales charge | -7.19% | 12.61% | -0.44% | 4.47% | -3.27% | 16.25% | 0.32% | 4.36% | ||||||
| Nationwide Investor Destinations Moderately Conservative Fund (NADCX) 9 | ||||||||||||||
| at NAV | $10.11 | $0.06 | 2.34% | 2.43% | 9.89% | 2.98% | 4.71% | 4.43% | 11.55% | 3.35% | 4.66% | 0.74% | - | 03/30/2000 |
| w/sales charge | -3.50% | 7.75% | 1.77% | 4.09% | -1.54% | 9.37% | 2.13% | 4.04% | ||||||
| Nationwide Mid Cap Market Index Fund (GMXAX) 6, 13, 22 | ||||||||||||||
| at NAV | $13.88 | $0.31 | 5.63% | -2.01% | 21.67% | 3.32% | 6.92% | 0.89% | 27.53% | 3.98% | 6.88% | 0.69% | - | 12/29/1999 |
| w/sales charge | -7.62% | 19.30% | 2.09% | 6.29% | -4.92% | 25.04% | 2.76% | 6.25% | ||||||
| Nationwide Money Market Fund Prime Shares (MIFXX) 11 | ||||||||||||||
| at NAV | $1.00 | - | 0.00% | 0.00% | 0.00% | 1.06% | 1.63% | 0.00% | 0.00% | 1.14% | 1.64% | 0.60% | - | 03/03/1980 |
| w/sales charge | - | - | - | - | - | - | - | - | ||||||
| Nationwide Retirement Income Fund (NWRAX) 9 | ||||||||||||||
| at NAV | $9.28 | $0.02 | 1.09% | -2.15% | 7.46% | - | 2.61% | -0.22% | 8.44% | - | 2.59% | 0.93% | - | 08/29/2007 |
| w/sales charge | -7.75% | 5.35% | - | 1.32% | -5.96% | 6.33% | - | 1.27% | ||||||
| Nationwide S&P 500 Index Fund (GRMAX) 6, 22 | ||||||||||||||
| at NAV | $10.96 | $0.17 | 5.28% | 4.15% | 18.83% | 0.47% | 4.17% | 7.81% | 22.72% | 1.45% | 3.58% | 0.62% | - | 12/30/1999 |
| w/sales charge | -1.80% | 16.53% | -0.72% | 3.56% | 1.57% | 20.29% | 0.24% | 2.97% | ||||||
| Nationwide Short Duration Bond Fund (MCAPX) 1, 2, 3, 4, 5, 7, 17 | ||||||||||||||
| at NAV | $10.14 | - | 0.52% | 1.42% | 2.39% | 3.01% | 2.96% | 1.72% | 2.52% | 3.03% | 2.98% | 0.95% | 0.83% | 07/16/2003 |
| w/sales charge | -0.83% | 1.62% | 2.54% | 2.73% | -0.55% | 1.74% | 2.56% | 2.75% | ||||||
| Nationwide Small Cap Index Fund (GMRAX) 6, 14, 22 | ||||||||||||||
| at NAV | $11.23 | $0.26 | 3.50% | -4.75% | 19.81% | 0.86% | 5.57% | -0.75% | 26.30% | 1.54% | 5.80% | 0.67% | - | 12/29/1999 |
| w/sales charge | -10.22% | 17.47% | -0.33% | 4.95% | -6.45% | 23.84% | 0.35% | 5.18% | ||||||
| Nationwide Small Company Growth Fund (NWSAX) 14, 19, 21, 22, 23, 29 | ||||||||||||||
| at NAV | $10.49 | $0.24 | 0.00% | - | - | - | 10.90% | - | - | - | 11.60% | 1.55% | 1.44% | 01/03/2012 |
| w/sales charge | - | - | - | 4.52% | - | - | - | 5.18% | ||||||
| Nationwide U.S. Small Cap Value Fund (NWUAX) 12, 14, 17, 20, 22 | ||||||||||||||
| at NAV | $9.99 | $0.22 | 2.67% | -4.94% | 21.06% | - | 2.97% | -1.31% | 28.06% | - | 3.54% | 1.62% | 1.38% | 12/21/2007 |
| w/sales charge | -10.39% | 18.71% | - | 1.58% | -6.98% | 25.56% | - | 2.12% | ||||||
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 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).
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 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).
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 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 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).
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).
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).
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 low for a longer-term investment.
3. The Fund may be subject to prepayment and call risk. 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 seeks to match the performance of an index. Correlation between Fund performance and index performance may be affected by Fund expenses, index composition changes, and the timing of Fund share purchases and redemptions.
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. The Fund's value is not guaranteed by the U.S. government or any government agency.
9. The Nationwide Target Destination Funds and the Nationwide
Investor Destinations Funds are designed to provide diversification
across a variety of 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. Funds that invest internationally involve risks not associated with investing solely in the United States, such as currency fluctuation, political risk, differences in accounting and limited availability of information, 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 the fund.
12. Value funds may underperform other funds that use different investing styles. Value investing carries the risk that the market will not recognize a security's book value for a long time or that a stock judged to be undervalued may actually be appropriately priced.
13. The Fund is subject to risks associated with investing in stocks of mid-sized companies, which are usually less stable in price and less liquid than are larger, more established companies.
14. The Fund is subject to risks associated with investing in stocks of smaller companies, which are usually less stable in price and less liquid than are larger, more established companies.
15. Funds that concentrate on specific countries may be subject to greater volatility than that of other mutual funds.
16. Expenses are based on estimated amounts for the current fiscal year ending October 31, 2012. The difference between gross and net operating expenses reflects contractual expense waivers in place for all classes through February 28, 2013. Please consult the Fund's most recent prospectus for more details.
17. The difference between gross and net operating expenses reflects contractual expense waivers in place for all classes through February 28, 2013, and for Service Class Shares of the Nationwide Money Market Fund through February 28, 2013. Please consult the applicable Fund's most recent prospectus for more details.
18. 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 investment characteristics and performance of a specified asset class benchmark 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 investment characteristics and performance of the sleeve’s benchmark index.
Instead of investing directly in physical commodities, substantially all of the Fund’s exposures to commodities will be undertaken by investing 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.
19. Growth funds may underperform other funds that use different investing styles. Growth stocks may be more volatile than other stocks because they are generally more sensitive to investor perceptions and market movements.
20. The Fund is subject to risks associated with using a targeted strategy for stock selection. 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.
21. Funds that concentrate on specific sectors may be subject to greater volatility than that of other mutual funds, and investments in particular industries or sectors may be more volatile than the overall stock market.
22. The fund is subject to stock market risk. The Fund could lose value if the individual stocks in which it invests or overall stock markets in which such stocks trade go down.
23. Since the Fund is new, expenses are estimated based on its projected average net assets for the current fiscal year ending October 31, 2012. The difference between gross and net operating expenses reflects contractual expense waivers in place for all classes through February 28, 2013. Please consult the Fund's most recent prospectus for more details.
24. The Fund may purchase mortgage-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.
25. The Fund is subject to risks associated with investing in high-yield bonds, including substantial risk of loss.
26. The Fund is subject to risks associated with investing in foreign securities, which may be more volatile, harder to price and less liquid than U. S. securities.
27. The Fund is subject to portfolio turnover risk. A higher portfolio turnover rate increases transaction costs and, as a result, may adversely impact the Fund's performance.
28. Each of the Fund's subadvisers makes investment decisions independently, and it is possible that the security selection process of one subadviser will not complement that of the other subadviser. As a result, the Fund's exposure to a given security, industry sector or market capitalization could be smaller or larger than if the Fund were managed by a single subadviser, which could affect the Fund's performance.
29. The investment strategy of holding stocks for long time periods with an emphasis on particular industries or sectors may subject the Fund to above-average short-term volatility.
