N-30D 1 doc1.txt GARTMORE FUNDS SEMIANNUAL REPORT April 30, 2002 Nationwide Large Cap Growth Fund Nationwide Small Cap Fund Nationwide S&P 500 Index Fund Nationwide Mid Cap Market Index Fund Nationwide Small Cap Index Fund Nationwide International Index Fund Nationwide Bond Index Fund Gartmore Morley Capital Accumulation Fund (formerly "Nationwide Morley Capital Accumulation Fund") NorthPointe Small Cap Value Fund GARTMORE ------------------ GLOBAL INVESTMENTS ------------------ CONTENTS 2 Nationwide Large Cap Growth Fund 6 Nationwide Small Cap Fund 17 Nationwide S&P 500 Index Fund 26 Nationwide Mid Cap Market Index Fund 33 Nationwide Small Cap Index Fund 54 Nationwide International Index Fund 71 Nationwide Bond Index Fund 86 Gartmore Morley Capital Accumulation Fund 88 NorthPointe Small Cap Value Fund 98 NOTES TO FINANCIAL STATEMENTS NATIONWIDE LARGE CAP Class A Shares symbol: NPGAX GROWTH FUND Class B Shares symbol: NPLBX Class C Shares symbol: NCLGX Institutional Service Class symbol: NPLIX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund outperformed its benchmark, returning -1.21%* versus -2.13% for the Russell 1000 Growth Index. For the trailing 12 months, the Fund returned -18.67%*, outperforming the Index, which returned -20.10%. For broader comparison purposes, the S&P 500 Index returned 2.31% during the six-month period. WHAT MARKET/ECONOMIC FACTORS INFLUENCED THE PORTFOLIO'S PERFORMANCE? The Fund uses a quantitative process that focuses on five investment criteria: profitability, valuation, earnings quality, fundamental research and momentum. Each of these criteria has demonstrated a positive correlation with future stock returns - i.e., predictive power - over time. During the reporting period, our criteria performed very well overall. Profitability in particular had a very strong showing in the large-cap universe. Valuation also did well, with the first quarter of 2002 signifying the seventh straight quarter of positive contribution. Returns from the earnings quality and fundamental research factors were up slightly, while the momentum factor, despite strong performance in 2002, detracted during the period, dragged down by poor returns in November and December 2001. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? The Fund's stock selection relative to the benchmark was successful in 10 of 13 sectors, most notably in the heavily weighted health-care sector. In terms of individual stocks, underweights in Bristol-Myers Squibb Co. (0.2%) and Oracle Corp. (0.2%), and an overweight in Bank of America Corp. (1.1%) contributed most positively to Fund returns above the benchmark. On the downside, overweights in AOL Time Warner, Inc. (2.3%), Tyco International Ltd. and WorldCom, Inc. were the biggest detractors from relative returns for the period. Tyco and WorldCom were subsequently eliminated from the portfolio. HOW IS THE FUND POSITIONED? Our quantitative model forecasts returns for individual securities, which we use to create the portfolio. Many individual stock positions allow us to gain diversified and optimized exposure to our five investment criteria. Hence, we expect our portfolio to be size and sector neutral and expect performance to be attributed to holdings that reflect our investment criteria. We continue to focus on the Fund's exposure to the above themes. Over the long term, these factors have led to excess returns, although they typically do not all work well simultaneously. Looking ahead, we continue to believe that cheaper stocks should outpace more expensive ones, and good-momentum stocks should do better than poor-momentum stocks. We also prefer names favored by fundamental research analysts as well as profitable companies that have sustainable earnings. We anticipate remaining fully invested and expect that the value we add over time will be due to stock selection, as opposed to sector or size allocations. PORTFOLIO MANAGER: GOLDMAN SACHS ASSET MANAGEMENT - SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $41,955,137 APRIL 30, 2002
AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 INCEPTION(1) ======================================================= Class A w/o SC(2) -18.67% -4.08% w/SC(3) -23.31% -5.69% ------------------------------------------------------- Class B w/o SC(2) -19.59% -4.98% w/SC(4) -23.61% -5.76% ------------------------------------------------------- Class C(5) w/o SC(2) -19.76% -4.98% w/SC(6) -21.36% -5.25% ------------------------------------------------------- Institutional Service Class(7) -18.56% -3.88% -------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Fund commenced operations on November 2, 1998. 2 These returns do not reflect the effects of sales charges (SC). 3 A 5.75% front-end sales charge was deducted. 4 A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years. 5 These returns include performance based on Class B shares, which was achieved prior to the creation of Class C shares (3/1/01). These returns have been restated for sales charges but not for fees applicable to Class C shares. Had Class C been in existence for the time periods presented, the performance of Class C shares would have been similar assuming similar expenses. 6 A 1.00% front-end sales charge was deducted. A CDSC of 1.00% was also deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. 7 Not subject to any sales charges. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPHIC OMITTED]
Russell 1000 Date Class A Growth CPI 2-Nov-98 9425 10000 10000 31-Oct-99 12799 13425 10256 31-Oct-00 13729 14678 10610 31-Oct-01 8249 8815 10835 30-Apr-02 8149 8627 10955
Comparative performance of $10,000 invested in Class A shares of the Nationwide Large Cap Growth Fund, the Russell 1000 Growth Index (Russell 1000 Growth)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The Russell 1000 Growth is comprised of the 1,000 largest U.S. companies, based upon total market capitalization, whose stocks have a greater than average growth orientation. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 2
STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) ============================================================================= NATIONWIDE LARGE CAP GROWTH FUND COMMON STOCKS (96.9%) ============================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================= ADVERTISING SERVICES (0.2%) Interpublic Group of Companies., Inc. (The) 2,300 $ 71,024 ---------- ============================================================================= AEROSPACE (0.3%) General Dynamics Corp. 1,300 126,217 ---------- ============================================================================= AUTOMOBILES (0.1%) General Motors Corp. Class H (b) 4,100 61,418 ---------- ============================================================================= BATTERIES (0.0%) Energizer Holdings, Inc. (b) 1 24 ---------- ============================================================================= BEVERAGES / ALCOHOLIC (0.1%) Brown-Forman Corp. Class B 600 47,172 ---------- ============================================================================= BEVERAGES / SOFT DRINK (1.2%) Coca-Cola Co. 6,500 360,815 PepsiCo, Inc. 2,700 140,130 ---------- 500,945 ---------- ============================================================================= BIOTECHNOLOGY (0.1%) Chiron Corp. (b) 900 36,423 ---------- ============================================================================= BROADCAST MEDIA / CABLE TELEVISION (1.2%) Clear Channel Communications, Inc. (b) 1,700 79,815 Viacom, Inc. Class B (b) 8,770 413,067 ---------- 492,882 ---------- ============================================================================= BUSINESS EQUIPMENT & SERVICES (0.6%) 3Com Corp. (b) 3,100 17,887 McDermott International, Inc. (b) 15,300 244,341 ---------- 262,228 ---------- ============================================================================= CAPITAL GOODS (7.3%) General Electric Co. 97,000 3,060,350 ---------- ============================================================================= CHEMICALS (0.3%) E.I. du Pont de Nemours and Co. 2,700 120,150 ---------- ============================================================================= COMPUTER EQUIPMENT (9.9%) Activision, Inc. (b) 3,800 119,624 Apple Computer, Inc. (b) 2,900 70,383 Dell Computer Corp. (b) 30,800 811,272 EMC Corp. (b) 4,400 40,216 Hewlett-Packard Co. 2,100 35,910 InFocus Corp. (b) 2,100 27,174 Intel Corp. 58,800 1,682,268 International Business Machines Corp. 15,100 1,264,776 NCR Corp. (b) 1,500 58,290 Network Appliance, Inc. (b) 2,600 45,370 ---------- 4,155,283 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================= COMPUTER SOFTWARE & SERVICES (8.9%) Cisco Systems, Inc. (b) 45,000 659,250 Computer Sciences Corp. (b) 2,400 107,640 Mentor Graphics Corp. (b) 2,500 48,250 Microsoft Corp. (b) 29,800 1,557,348 Network Associates, Inc. (b) 3,200 56,800 NVIDIA Corp. (b) 4,300 149,683 PeopleSoft, Inc. (b) 10,300 238,651 Siebel Systems, Inc. (b) 11,300 273,347 Storage Technology Corp. (b) 4,400 90,552 Sybase, Inc. (b) 2,300 32,338 Symantec Corp. (b) 7,800 276,198 Tech Data Corp. (b) 4,500 213,030 Unisys Corp. (b) 3,500 47,250 ---------- 3,750,337 ---------- ============================================================================= CONSTRUCTION & BUILDING MATERIALS (0.4%) Jacobs Engineering Group, Inc. (b) 4,200 165,732 ---------- ============================================================================= CONSUMER PRODUCTS (3.1%) Avon Products, Inc. 3,500 195,475 Colgate-Palmolive Co. 8,400 445,284 Danaher Corp. 800 57,264 Procter & Gamble Co. 6,700 604,742 ---------- 1,302,765 ---------- ============================================================================= DRUGS (13.8%) Allergan, Inc. 4,000 263,640 AmerisourceBergen Corp. 6,659 516,073 Amgen, Inc. (b) 9,800 518,224 Barr Laboratories, Inc. (b) 2,300 153,295 Bristol-Myers Squibb Co. 3,300 95,040 Eli Lilly & Co. 11,500 759,575 Forest Labs Class A (b) 3,100 239,134 King Pharmaceuticals, Inc. (b) 5,500 172,370 Merck & Co., Inc. 8,700 472,758 Pfizer, Inc. 60,275 2,190,995 Pharmacia & Upjohn, Inc. 1,700 70,091 Priority Healthcare Corp., Series B (b) 2,400 71,376 Schering-Plough Corp. 1,200 32,760 Wyeth 4,800 273,600 ---------- 5,828,931 ---------- ============================================================================= ELECTRONICS (4.7%) Arrow Electronics, Inc. (b) 4,200 110,880 Avnet, Inc. 10,900 279,258 AVX Corp. 3,500 69,755 Axcelis Technologies, Inc (b) 3,400 48,960 Fairchild Semiconductor International, Inc. (b) 7,800 210,132 Intersil Corp. (b) 6,300 169,155 Jabil Circuit, Inc. (b) 2,600 53,066 Maxim Integrated Products (b) 900 44,820
2002 SEMIANNUAL REPORT 3
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ==================================================================== NATIONWIDE LARGE CAP GROWTH FUND (Continued) COMMON STOCKS (continued) ==================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== ELECTRONICS (continued) Microchip Technology, Inc. (b) 1,400 $ 62,300 Micron Technology, Inc. (b) 4,400 104,280 Motorola, Inc. 10,800 166,320 Semtech Corp. (b) 1,700 54,366 Solectron Corp. (b) 3,500 25,550 Texas Instruments, Inc. 17,100 528,903 Vishay Intertechnology, Inc. (b) 2,450 53,876 ---------- 1,981,621 ---------- ==================================================================== FINANCIAL / BANKS (1.8%) Bank of America Corp. 6,100 442,128 Citigroup, Inc. 2,200 95,260 Wachovia Corp. 5,700 216,828 ---------- 754,216 ---------- ==================================================================== FINANCIAL / MISCELLANEOUS (2.2%) Bear Stearns Cos., Inc. (The) 2,000 123,880 Concord EFS, Inc. (b) 2,300 72,735 Countrywide Credit Industries, Inc. 900 42,039 Household International, Inc. 1,600 93,264 John Hancock Financial Services, Inc. 5,000 193,000 SEI Investment Co. 6,200 208,878 USA Education, Inc. 2,200 210,870 ---------- 944,666 ---------- ==================================================================== FOOD & RELATED (1.1%) Hormel Foods Corp. 3,100 76,570 Kraft Foods, Inc. 8,900 365,256 ---------- 441,826 ---------- ==================================================================== HEALTHCARE (10.3%) Abbott Laboratories 15,400 830,830 Baxter International, Inc. 3,200 182,080 Cardinal Health, Inc. 9,918 686,822 Johnson & Johnson 21,500 1,372,990 McKesson HBOC, Inc. 11,900 480,641 Medtronic, Inc. 10,200 455,838 Stryker Corp. 4,500 240,795 UnitedHealth Group, Inc. 800 70,248 ---------- 4,320,244 ---------- ==================================================================== INSURANCE (2.5%) Aetna, Inc. 3,500 166,600 American International Group, Inc. 8,300 573,696 Loews Corp. 2,900 173,855 Prudential Financial, Inc. (b) 4,300 138,030 ---------- 1,052,181 ---------- ==================================================================== INVESTMENT MANAGEMENT (0.2%) Franklin Resources, Inc. 1,900 79,610 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== MANUFACTURING (0.5%) Cooper Industries, Inc. 2,100 $ 91,980 Mohawk Industries Co. (b) 900 57,897 SPX Corp. (b) 400 53,860 ---------- 203,737 ---------- ==================================================================== MINING (0.1%) Barrick Gold Corp. 2,400 48,168 ---------- ==================================================================== MOTOR VEHICLES (0.2%) Harley-Davidson, Inc. 1,700 90,083 ---------- ==================================================================== MULTI-MEDIA (2.4%) AOL Time Warner, Inc. (b) 49,900 949,098 Cox Radio (b) 2,500 71,600 ---------- 1,020,698 ---------- ==================================================================== OIL & GAS (1.8%) BJ Services Co. (b) 1,200 44,088 Burlington Resources, Inc. 1,100 48,873 Dynegy, Inc. 5,300 95,400 Occidental Petroleum Corp. 1,800 51,750 Praxair, Inc. 2,500 142,750 Schlumberger Ltd. 6,600 361,350 ---------- 744,211 ---------- ==================================================================== PAPER & FOREST PRODUCTS (0.3%) Boise Cascade Corp. 1,600 54,192 Georgia-Pacific Corp. 2,700 78,246 ---------- 132,438 ---------- ==================================================================== RAW MATERIALS (0.1%) Schulman, Inc. 2,400 48,720 ---------- ==================================================================== RETAIL (10.5%) Amazon.com, Inc. (b) 5,400 90,126 Autozone, Inc. (b) 600 45,600 Best Buy Co., Inc. (b) 6,900 513,015 Blockbuster, Inc. 6,000 171,600 Coach, Inc. (b) 3,100 173,600 Dillard's, Inc. Class A 3,000 73,470 Dollar General Corp. 3,300 51,975 Dollar Tree Stores, Inc. (b) 1,900 72,466 Federated Department Stores, Inc. (b) 3,600 143,028 Home Depot, Inc. 22,800 1,057,236 Office Depot, Inc. (b) 3,900 74,646 RadioShack Corp. 4,200 131,040 Sears, Roebuck & Co. 2,700 142,425 Target Corp. 2,000 87,300 TJX Cos., Inc. 8,100 352,998 Wal-Mart Stores, Inc. 22,600 1,262,435 ---------- 4,442,960 ----------
2002 SEMIANNUAL REPORT 4
COMMON STOCKS (continued) ====================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== RETAIL / FOOD & DRUG (1.2%) Sysco Corp. 17,500 $ 507,675 ------------ ====================================================================== SERVICES (4.0%) Deluxe Corp. 4,900 215,012 Electronic Data Systems Corp. 9,300 504,618 Hotels.com (b) 1,700 106,964 Manpower, Inc. 1,100 44,275 Moody's Corp. 5,300 230,974 Omnicom Group, Inc. 4,600 401,304 Oracle Corp. (b) 8,200 82,328 Plexus Corp. (b) 1,700 42,483 Service Corp. Intl. (b) 9,600 37,536 ------------ 1,665,494 ------------ ====================================================================== SHIPPING / TRANSPORTATION (0.7%) Airborne, Inc. 6,200 128,588 Federal Express Corp. (b) 800 41,336 J.B. Hunt Transport Services, Inc. (b) 2,400 62,856 United Parcel Service, Inc., Class B 900 54,036 ------------ 286,816 ------------ ====================================================================== TECHNOLOGY (0.5%) Ingram Micro, Inc. (b) 12,900 191,694 ------------ ====================================================================== TELECOMMUNICATIONS (3.0%) American Tower Corp. (b) 4,200 20,958 AT&T Wireless Services, Inc. (b) 51,400 460,030 BCE, Inc. 7,100 124,179 EarthLink, Inc. (b) 4,700 34,216 Entravision Communications Corp. (b) 4,000 58,000 Qualcomm, Inc. (b) 10,400 313,664 Telephone & Data Systems, Inc. 1,400 120,400 US Cellular Corp. (b) 3,500 138,250 Worldcom Inc.-MCI Group 1 4 Worldcom, Inc. (b) 1 3 ------------ 1,269,704 ------------ ====================================================================== TOBACCO (0.3%) R.J. Reynolds Tobacco Holdings, Inc. 1,600 110,720 ------------ ====================================================================== UTILITIES (0.9%) Entergy Corp. 5,300 245,920 Reliant Resources, Inc. (b) 8,200 126,526 ------------ 372,446 ------------ ====================================================================== WHOLESALE DISTRIBUTION (0.1%) Grainger (W.W.), Inc. 800 44,856 ------------ TOTAL COMMON STOCKS 40,736,665 ------------ REPURCHASE AGREEMENT (2.9%) ====================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $1,218,529 (Fully collateralized by FNCI) 1,218,472 $ 1,218,472 ------------ TOTAL REPURCHASE AGREEMENT 1,218,472 ------------ TOTAL INVESTMENTS (COST $48,809,269) (a) - 99.8% 41,955,137 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES - 0.2% 82,139 ------------ NET ASSETS - 100.0% $42,037,276 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 2,042,908 Unrealized depreciation (8,897,040) ------------ Net unrealized depreciation $(6,854,132) ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security. FNCI Fannie Mae Conventional Loan
At April 30, 2002, the Fund's open long futures contracts were as follows:
Unrealized Market Value Appreciation Number of Long Covered by (Depreciation) Contracts Contract* Expiration Contracts at 04/30/02 --------------------------------------------------------------------- 13 S&P 500 E-mini 06/20/02 $ 700,213 $ (10,180) 2 S&P 500 06/20/02 $ 538,600 (19,409) --------------- $ (29,589) ===============
* Cash pledged as collateral. SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 5 NATIONWIDE SMALL CAP FUND Class A Shares symbol: NPSAX Class B Shares symbol: NPSBX Class C Shares symbol: NCSMX Institutional Service Class symbol: NSISX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning 18.35%* versus 20.03% for the Russell 2000 Index. For the trailing 12 months, the Fund returned 8.68%*, outperforming the Index, which returned 6.68%. For broader comparison purposes, the S&P 500 Index returned 2.31% for the six-month period. WHAT MARKET/ECONOMIC FACTORS INFLUENCED THE PORTFOLIOS PERFORMANCE? The markets remained volatile, moving sharply in both positive and negative directions in response to the political turmoil in the Mideast. These market shifts were driven by concerns about the depth and duration of the economic slowdown that occurred last fall, as well as the state of the fragile recovery in 2002. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? Broadly positioned, the Fund favored securities with attractive valuations and earnings momentum. Although this bias added to performance the Funds orientation toward positive earnings momentum detracted somewhat. Another key to positive performance was our decision to underweight more volatile stocks. However, this was offset by our greater-than-benchmark exposure to currency-sensitive issues. On the plus side, our overweight position in NVR Inc., the homebuilder, and New Century Financial Corp., the mortgage finance company, were among our top performers, as were our health-care-related holdings, Mentor Corp. and PacifiCare Health Systems, Inc. Our overweight positions in the health-care, technology and telecommunications sectors detracted from performance. Weakness in these sectors resulted from continued investor concern about the slowdown in demand and its implications for earnings and financial strength. The Fund was overweight in computer technology holdings such as Microsemi Corp. and Numerical Technologies as well as technology-related McAfee.com Corp., which fell during the period. HOW IS THE FUND POSITIONED? We do not plan to make any notable changes in portfolio structure beyond normal rebalancing and the annual rebalancing of the Russell indexes, which occurs each June 30. We believe that the markets recent volatility will decline with time as investors begin to focus once again on the fundamentals of valuation and the potential for future earnings growth. PORTFOLIO MANAGER: INVESCO, INC. SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $31,337,879 APRIL 30, 2002 AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002)
YEARS 1 INCEPTION(1) ===================================================== Class A w/o SC(2) 8.68% 10.38% w/SC(3) 2.41% 8.52% ----------------------------------------------------- Class B w/o SC(2) 7.93% 9.70% w/SC(4) 2.93% 9.01% ----------------------------------------------------- Class C(5) w/o SC(2) 7.92% 9.75% w/SC(6) 5.82% 9.44% ----------------------------------------------------- Institutional Service Class(7) 8.91% 10.57% -----------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Fund commenced operations on November 2, 1998. 2 These returns do not reflect the effects of sales charges (SC). 3 A 5.75% front-end sales charge was deducted. 4 A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years. 5 These returns include performance based on Class B shares, which was achieved prior to the creation of Class C shares (3/1/01). These returns have been restated for sales charges but not for fees applicable to Class C shares. Had Class C been in existence for the time periods presented, the performance of Class C shares would have been similar assuming similar expenses. 6 A 1.00% front-end sales charge was deducted. A CDSC of 1.00% was also deducted from the one year return because it is charged when you sell Class C shares within the first year after purchase. 7 Not subject to any sales charges. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPH OMITTED]
Russell 2000 Date Class A TR (Index) CPI 2-Nov-98 9425 10000 10000 31-Oct-99 10573 11487 10256 31-Oct-00 12503 13486 10610 31-Oct-01 11241 11774 10835 30-Apr-02 13304 14132 10955
Comparative performance of $10,000 invested in Class A shares of the Nationwide Small Cap Fund, the Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The Russell 2000 is comprised of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 6
STATEMENTS OF INVESTMENTS April 30, 2002 (Unaudited) ======================================================================== NATIONWIDE SMALL CAP FUND COMMON STOCKS (95.3%) ======================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================== AEROSPACE (1.0%) Alliant Techsystems, Inc. (b) 800 $ 86,160 Gencorp, Inc. 5,200 81,640 Moog, Inc. Class A (b) 4,000 136,800 ---------- 304,600 ---------- ======================================================================== APPAREL (1.0%) Finish Line Class A (b) 7,400 149,998 Global Sports, Inc. (b) 1,800 23,310 Wet Seal, Inc. (b) 4,100 146,083 ---------- 319,391 ---------- ======================================================================== APPLIANCES (0.9%) Salton, Inc. (b) 1,900 32,585 York International Corp. 6,500 236,665 ---------- 269,250 ---------- ======================================================================== AUTO PARTS & EQUIPMENT (2.3%) Aftermarket Technology Corp. (b) 3,300 75,735 American Axle & Manufacturing Holdings (b) 100 3,300 Group 1 Automotive, Inc. (b) 4,500 197,280 Pep Boys-Manny, Moe & Jack 11,000 210,650 Polaris Industries, Inc. 3,000 225,900 ---------- 712,865 ---------- ======================================================================== BANKING (4.9%) BancorpSouth, Inc. 3,400 74,460 Community First Bankshares, Inc. 5,200 142,896 Dime Community Bancshares 6,500 151,190 First Commonwealth Financial Corp. 2,400 32,280 First Midwest Bancgroup, Inc. 1,800 54,774 Flagstar Bancorp 6,100 180,560 Independence Community Bank Corp. 9,200 299,828 New Century Financial Corp. 9,000 215,190 Staten Island Bancorp, Inc. 7,300 145,635 Trustmark Corp. 4,500 115,965 UMB Financial Corp. 2,010 96,120 ---------- 1,508,898 ---------- ======================================================================== BUILDING MATERIALS (4.6%) Apogee Enterprises, Inc. 1,300 17,875 Hughes Supply, Inc. 6,800 283,696 KB Home 5,800 289,130 LSI Industries, Inc. 2,300 45,701 MDC Holdings, Inc. 600 30,300 Meritage Corp. (b) 1,800 80,640 NVR, Inc. (b) 300 110,925 RPM, Inc. 16,600 281,370 Ryland Group, Inc. 1,800 198,000 Walter Industries, Inc. 6,600 89,100 ---------- 1,426,737 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================== BUSINESS EQUIPMENT & SERVICES (4.6%) Consolidated Graphics, Inc. (b) 4,000 $ 85,400 Freemarkets, Inc. (b) 8,100 143,856 IKON Office Solutions, Inc. 22,700 295,100 John H. Harland Co. 4,900 147,490 Overture Services, Inc. (b) 2,700 92,313 Per-Se Technologies, Inc. (b) 11,100 139,416 Pittston Brink's Group 10,100 277,952 Right Management Consultants, Inc. (b) 7,500 200,250 Zebra Technologies Corp. Class A (b) 800 45,336 ---------- 1,427,113 ---------- ======================================================================== CAPITAL GOODS (1.6%) Briggs & Stratton Corp. 5,600 236,040 Donaldson Company, Inc. 3,800 163,970 Kennametal, Inc. 2,000 79,320 ---------- 479,330 ---------- ======================================================================== CHEMICALS (1.1%) Albemarle Corp. 2,900 85,985 Cytec Industries, Inc. (b) 1,800 59,382 Minerals Technologies, Inc. 400 20,000 Solutia, Inc. 600 5,016 TETRA Technologies, Inc. (b) 6,300 180,432 ---------- 350,815 ---------- ======================================================================== COMPUTER SOFTWARE & SERVICES (5.0%) Akamai Technologies, Inc. (b) 13,000 29,770 Ansys, Inc. (b) 5,500 140,250 Asiainfo Holdings, Inc. (b) 5,000 50,900 C-COR.net Corp. (b) 3,400 37,196 CACI International, Inc. Class A (b) 1,600 48,278 Cerner Corp. (b) 2,400 127,464 Checkpoint Systems, Inc. (b) 8,200 141,450 Electronics for Imaging, Inc. (b) 1,100 19,701 Harmonic, Inc. (b) 3,000 24,150 Hutchinson Technology, Inc. (b) 1,600 28,656 Inter-Tel, Inc. 9,000 184,590 JDA Software Group, Inc. (b) 2,600 78,624 Kronos, Inc. (b) 3,450 140,243 Mentor Graphics Corp. (b) 4,400 84,920 MRO Software, Inc. (b) 1,900 27,474 NDC Health Corp. 4,200 135,114 Packeteer, Inc. (b) 800 5,600 Rainbow Technologies, Inc. (b) 5,700 48,279 Red Hat, Inc. (b) 9,100 41,769 Scan Source, Inc. (b) 1,900 127,414 Turnstone Systems, Inc. (b) 6,000 21,900 ---------- 1,543,742 ---------- ======================================================================== CONSULTING SERVICES (0.2%) Caminus Corp. (b) 2,700 50,409 ----------
2002 SEMIANNUAL REPORT 7
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE SMALL CAP FUND (Continued) COMMON STOCKS (continued) ================================================================================ SHARES OR PRINCIPAL AMOUNT VALUE ================================================================================ CONSUMER GOODS & SERVICES (1.9%) A.O. Smith Corp. 5,000 $ 155,500 Chattem, Inc. (b) 5,000 156,500 Interstate Bakeries Corp. 7,000 172,900 Nu Skin Enterprises, Inc. 3,600 50,400 TBC Corp. (b) 4,300 64,070 ---------- 599,370 ---------- ================================================================================ DISTRIBUTION (1.1%) Handleman Co. (b) 9,000 115,200 Keystone Automotive Industries, Inc. (b) 2,300 44,896 United Stationers, Inc. (b) 4,200 163,842 ---------- 323,938 ---------- ================================================================================ DIVERSIFIED (0.5%) Federal Signal Corp. 6,800 156,400 ---------- ================================================================================ DRUGS (2.8%) Idexx Laboratories, Inc. (b) 6,000 170,880 K-V Pharmaceutical Co. (b) 2,400 69,000 Ligand Pharmaceuticals, Inc. (b) 8,600 133,902 MIM Corp. (b) 4,000 71,200 NBTY, Inc. (b) 7,100 121,978 Neurocrine Biosciences, Inc. (b) 2,000 65,780 Perrigo Co. (b) 6,000 74,880 Syncor International Corp. (b) 4,300 134,418 Vaxgen, Inc. (b) 1,200 10,944 ---------- 852,982 ---------- ================================================================================ EDUCATIONAL SERVICES (0.8%) Sylvan Learning Systems, Inc. (b) 8,900 245,640 ---------- ================================================================================ ELECTRONICS (4.7%) Ansoft Corp. (b) 4,700 53,157 Artisan Components, Inc. (b) 1,200 17,688 Audiovox Corp. (b) 3,500 26,145 Belden, Inc. 2,500 59,850 Carbo Ceramics, Inc. 2,500 94,200 Cyberonics (b) 2,500 33,875 Fisher Scientific International, Inc. (b) 2,400 68,352 FLIR Systems, Inc. (b) 1,900 75,766 Itron, Inc. (b) 7,300 260,245 MagneTek, Inc. (b) 3,800 45,600 Methode Electronics, Inc. 11,200 128,464 Mettler Toledo International, Inc. (b) 1,900 73,055 MTS Systems Corp. 4,400 46,200 Planar Systems, Inc. (b) 1,200 29,868 PNM Resources, Inc. 3,500 101,500 Possis Medical, Inc. (b) 3,300 51,711 Power Integrations, Inc. (b) 2,600 54,990 Recoton Corp. (b) 5,500 24,305 SHARES OR PRINCIPAL AMOUNT VALUE ================================================================================ ELECTRONICS (continued) Roxio, Inc. (b) 6,300 $ 133,875 Thomas & Betts Corp. 2,300 54,050 ---------- 1,432,896 ---------- ================================================================================ ENERGY (0.7%) Oceaneering International, Inc. (b) 4,800 127,200 Seitel, Inc. (b) 9,100 73,255 ---------- 200,455 ---------- ================================================================================ ENTERTAINMENT (1.6%) Acclaim Entertainment, Inc. (b) 9,100 48,776 Activision, Inc. (b) 3,700 116,476 Ameristar Casinos, Inc. (b) 2,400 74,784 Movie Gallery, Inc. (b) 6,900 138,483 Sinclair Broadcast Group, Inc. Class A (b) 7,800 104,130 ---------- 482,649 ---------- ================================================================================ FINANCIAL / BANKS (4.7%) Commercial Federal Corp. 9,800 288,120 Corus Bankshares, Inc. 800 40,207 Doral Financial Corp. 3,100 108,314 First American Financial Corp. 8,800 194,480 GBC Bancorp 1,900 61,180 Hudson United Bancorp 2,400 76,176 Irwin Financial Corp. 6,600 127,050 Provident Bankshares Corp. 5,400 140,724 R & G Financial Corp. Class B 4,300 86,043 Washington Federal, Inc. 1,489 38,893 West America Bank Corp. 6,500 287,625 ---------- 1,448,812 ---------- ================================================================================ FINANCIAL / MISCELLANEOUS (1.2%) Federal Agricultural Mortgage Corp., Class C (b) 1,300 49,023 FirstFed Financial Corp. (b) 6,400 183,040 Triad Guaranty, Inc. (b) 2,800 125,160 ---------- 357,223 ---------- ================================================================================ FOOD & RELATED (1.2%) Del Monte Foods Co. (b) 7,500 79,350 Dole Food Co. 8,200 272,814 Pilgrim's Pride Corp. 1,900 25,840 ---------- 378,004 ---------- ================================================================================ HEALTHCARE (5.7%) Antigenics, Inc. (b) 3,500 41,160 Charles River Laboratories International, Inc. (b) 4,300 128,785 CONMED Corp. (b) 4,850 130,950 Cooper Co., Inc. 4,300 227,900 Curative Health Services, Inc. (b) 2,300 32,338 Datascope Corp. 900 28,305
2002 SEMIANNUAL REPORT 8
COMMON STOCKS (continued) ======================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= HEALTHCARE (continued) Diagnostic Products Corp. 4,600 $ 220,708 Diversa Corp. (b) 3,300 36,300 Dynacq International, Inc. (b) 3,700 61,753 Indevus Pharmaceuticals, Inc. (b) 5,400 36,882 Mentor Corp. 6,600 264,329 Mid Atlantic Medical Services, Inc. (b) 2,900 105,647 PacifiCare Health Systems, Inc. (b) 8,600 260,236 PSS World Medical, Inc. (b) 6,200 61,380 Sola International, Inc. (b) 4,000 57,400 Techne Corp. (b) 2,700 72,063 ---------- 1,766,136 ---------- ======================================================================= HOTELS / MOTELS (0.9%) Aztar Corp. (b) 11,300 262,951 ---------- ======================================================================= INSURANCE (1.9%) American Medical Security Group, Inc. (b) 400 7,080 Delphi Financial Group, Inc. 1,201 51,643 LandAmerica Financial Group, Inc. 6,300 220,500 Stancorp Financial Group, Inc. 5,000 292,500 ---------- 571,723 ---------- ======================================================================= INTERNET (0.7%) Register.com, Inc. (b) 7,900 66,518 Support.Com, Inc. (b) 8,600 29,068 Websense, Inc. (b) 4,600 122,866 ---------- 218,452 ---------- ======================================================================= LEISURE PRODUCTS (0.5%) Direct Focus, Inc. (b) 3,750 167,625 ---------- ======================================================================= MACHINERY (2.3%) Engineered Support Systems, Inc. 1,000 49,400 Lennox International, Inc. 4,200 63,000 Lincoln Electric Holdings, Inc. 4,800 136,320 Manitowoc Co., Inc. 1,800 78,660 Powell Industries, Inc. (b) 1,200 28,200 Tecumseh Products Co. 1,900 98,724 Toro Co. 4,200 243,600 ---------- 697,904 ---------- ======================================================================= MANUFACTURING (1.5%) Griffon Corp. (b) 12,900 247,680 P.H. Glatfelter & Co. 3,600 63,108 Roper Industries, Inc. 1,100 50,589 Varian, Inc. (b) 3,200 107,968 ---------- 469,345 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= MEDICAL (1.1%) Bio-Technology General Corp. (b) 7,500 $ 36,743 Bruker Daltronics, Inc. (b) 6,500 48,555 Edwards Lifesciences Corp. (b) 2,500 62,800 Henry Schein, Inc. (b) 1,900 90,421 Immunomedics, Inc. (b) 4,300 56,588 Ocular Sciences, Inc. (b) 1,400 41,930 ---------- 337,037 ---------- ======================================================================= METALS (0.4%) Cleveland Cliffs, Inc. 1,500 40,500 Ryerson Tull, Inc. 2,700 31,725 Southern Peru Copper Corp. 2,100 30,345 USEC, Inc. 3,900 26,676 ---------- 129,246 ---------- ======================================================================= OIL & GAS (3.4%) Airgas, Inc. (b) 4,200 69,258 Energen Corp. 8,000 225,200 Houston Exploration Co. (b) 1,800 55,782 Hydril Co. (b) 2,400 61,246 Key Production Co., Inc. (b) 3,000 64,200 Meridian Resource Corp. (b) 12,800 57,344 Penn Virginia Corp. 4,700 180,010 People's Energy Corp. 2,900 113,100 UGI Corp. 7,000 220,500 ---------- 1,046,640 ---------- ======================================================================= PACKAGING (0.8%) Ball Corp. 4,400 209,220 Renanissance Learning, Inc. (b) 1,000 34,570 ---------- 243,790 ---------- ======================================================================= PAPER & RELATED PRODUCTS (0.4%) Chesapeake Corp. 2,800 76,860 Rock-Tenn Co. 3,800 58,064 ---------- 134,924 ---------- ======================================================================= PHARMACEUTICALS (0.7%) aaiPharma, Inc. (b) 8,200 229,026 ---------- ======================================================================= PRINTING & PUBLISHING (0.7%) American Greetings Corp. Class A 1,000 17,750 Bowne & Co., Inc. 3,100 49,290 R. H. Donnelley Corp. (b) 4,700 138,274 ---------- 205,314 ---------- ======================================================================= REAL ESTATE (6.1%) Bedford Property Investors, Inc. 3,000 79,620 Boykin Lodging Co. 7,600 71,820 Camden Property Trust 1,100 43,780 Capital Automotive REIT 5,100 123,420
2002 SEMIANNUAL REPORT 9
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ========================================================================== NATIONWIDE SMALL CAP FUND (Continued) COMMON STOCKS (continued) ========================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================== REAL ESTATE (continued) Developers Diversified Realty Corp. 4,600 $ 101,660 Essex Property Trust, Inc. 4,000 208,000 Gables Residential Trust 3,900 120,900 Great Lakes REIT, Inc. 900 14,580 Highwood Properties, Inc. 1,700 47,804 HRPT Properties Trust 8,700 75,516 JDN Realty Corp. 8,300 105,161 Keystone Property Trust 3,900 58,851 Kilroy Realty Corp. 3,200 90,080 Koger Equity, Inc. 4,100 75,112 Mission West Properties 1,300 16,289 National Health Investors, Inc. 3,500 54,950 Post Properties, Inc. 1,300 44,187 Prime Group Realty Trust 3,100 25,885 Regency Centers Corp. 4,700 138,180 Shurgard Storage Centers, Inc. 3,600 126,900 SL Green Realty Corp. 4,900 171,990 Sovran Self Storage, Inc. 3,900 120,120 ---------- 1,914,805 ---------- ========================================================================== RESTAURANTS (2.7%) Applebee's International, Inc. 1,950 76,128 CBRL Group, Inc. 3,100 94,085 Landry's Seafood Restaurants, Inc. 8,600 238,220 Papa John's International, Inc. (b) 4,900 152,390 Ryan Family Steak Houses, Inc. (b) 9,800 256,760 ---------- 817,583 ---------- ========================================================================== RETAIL (5.3%) Casey's General Stores, Inc. 5,300 69,006 Cato Corp. Class A 4,600 117,760 Champion Enterprises, Inc. (b) 3,500 29,050 Chico's FAS, Inc. (b) 2,800 101,024 Copart, Inc. (b) 3,100 47,709 Dial Corp. 8,100 169,938 Dillard's, Inc. Class A 9,100 222,859 Hancock Fabrics, Inc. 8,800 160,072 K-Swiss, Inc. Class A 900 41,193 Nasch-Finch Co. 2,600 78,000 Petsmart, Inc. (b) 8,200 123,164 Racing Champions Corp. (b) 8,200 175,537 Regis Corp. 900 27,054 Shoe Carnival, Inc. (b) 3,100 63,705 Urban Outfitters, Inc. (b) 7,000 211,680 ---------- 1,637,751 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================== SEMICONDUCTORS (2.6%) Cohu, Inc. 5,900 $ 165,259 ESS Technology, Inc. (b) 12,100 193,237 PLX Technology, Inc. (b) 16,600 123,504 Silicon Image, Inc. (b) 7,100 68,515 Silicon Laboratories, Inc. (b) 8,500 251,260 ---------- 801,775 ---------- ========================================================================== SERVICES (2.4%) American Management Systems, Inc. (b) 2,600 59,488 Boron Lepore & Associates, Inc. (b) 3,200 38,080 Corporate Executive Board Co. (b) 5,700 216,600 Documentum, Inc. (b) 500 9,710 Labor Ready, Inc. (b) 3,400 30,600 Modis Professional Services, Inc. (b) 2,000 107,100 Ryder System, Inc. 9,300 263,748 Tripos, Inc. (b) 1,100 26,433 ---------- 751,759 ---------- ========================================================================== STEEL (0.9%) Quanex Corp. 3,200 115,200 Worthington Industries, Inc. 10,500 155,400 ---------- 270,600 ---------- ========================================================================== TELECOMMUNICATIONS (3.1%) Aehter Systems, Inc. (b) 17,000 56,610 Anixter International, Inc. (b) 4,100 118,695 Boston Communications Group (b) 13,300 130,340 Commonwealth Telephone Enterprises, Inc. (b) 4,700 177,895 DSP Group, Inc. (b) 2,200 46,684 General Cable Corp. 6,200 71,176 General Communication, Inc. (b) 6,100 60,878 NMS Communications Corp. (b) 9,300 30,783 Safenet, Inc. (b) 900 12,645 Spectralink Corp. (b) 9,900 104,247 US Unwired, Inc. (b) 24,900 158,588 ---------- 968,541 ---------- ========================================================================== TOBACCO (0.5%) Standard Commercial Corp. 3,300 68,145 Universal Corp. 1,800 76,518 ---------- 144,663 ---------- ========================================================================== TRANSPORTATION (1.3%) Alexander & Baldwin, Inc. 3,400 92,378 Heartland Express, Inc. (b) 12,700 248,793 Midwest Express Holdings (b) 2,500 50,000 ---------- 391,171 ----------
2002 SEMIANNUAL REPORT 10
COMMON STOCKS (continued) ====================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== UTILITIES (1.0%) AGL Resources, Inc. 4,400 $ 105,336 Cleco Corp. 5,800 143,724 El Paso Electric Co. (b) 2,100 32,760 New Jersey Resources Corp. 100 3,200 Watsco, Inc. 1,000 18,090 ------------ 303,110 ------------ TOTAL COMMON STOCKS 29,353,390 ------------ REPURCHASE AGREEMENT (6.4%) ====================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $1,984,582 (Fully collateralized by RFMSI) 1,984,489 $ 1,984,489 ------------ TOTAL REPURCHASE AGREEMENT 1,984,489 ------------ TOTAL INVESTMENTS (COST $26,618,266)(a) - 101.7% 31,337,879 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.7)% (530,838) ------------ NET ASSETS - 100.0% $30,807,041 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 5,863,820 Unrealized depreciation (1,144,207) ------------ Net unrealized depreciation $ 4,719,613 ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security. REIT Real Estate Investment Trust RFMSI Residential Funding Mortgage Security I
At April 30, 2002, the Funds open long futures contracts were as follows:
Unrealized Market Value Appreciation Number of Long Covered by (Depreciation) Contracts Contracts* Expiration Contracts at 04/30/02 ------------------------------------------------------------------- 4 Russell 2000 06/20/02 $ 1,022,400 $ (12,128)
* Cash pledged as collateral. SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 11 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2002 (Unaudited) ================================================================================
NATIONWIDE NATIONWIDE LARGE CAP SMALL CAP GROWTH FUND FUND =================================================================================== ASSETS: Investments, at value (cost $47,590,797 and 24,633,777; respectively) $ 40,736,665 $29,353,390 Repurchase agreements, at cost 1,218,472 1,984,489 ------------- ------------ Total Investments 41,955,137 31,337,879 ------------- ------------ Cash 125,500 69,600 Interest and dividends receivable 10,741 12,979 Receivable for investments sold 378 1,407,351 Receivable from adviser 1,266 1,709 Receivable for variation margin on futures contracts 14,178 26,417 Prepaid expenses and other assets 14,416 17,400 ------------- ------------ Total Assets 42,121,616 32,873,335 ------------- ------------ LIABILITIES: Payable for investments purchased -- 2,015,955 Accrued expenses and other payables Investment advisory fees 28,077 23,158 Fund administration and transfer agent fees 16,024 7,854 Distribution fees 8,762 5,531 Administrative servicing fees 5,070 3,661 Other 26,407 10,135 ------------- ------------ Total Liabilities 84,340 2,066,294 ------------- ------------ NET ASSETS $ 42,037,276 $30,807,041 ============= ============ REPRESENTED BY: Capital $ 63,315,262 $26,581,185 Accumulated net investment income (loss) (114,516) (25,750) Accumulated net realized gains (losses) on investment and futures transactions (14,279,749) (455,879) Net unrealized appreciation (depreciation) on investments and futures (6,883,721) 4,707,485 ------------- ------------ NET ASSETS $ 42,037,276 $30,807,041 ============= ============ NET ASSETS: Class A Shares $ 32,452,892 $22,333,784 Class B Shares 2,329,555 1,191,382 Class C Shares 45,830 34,316 Institutional Service Class Shares 7,208,999 7,247,559 ------------- ------------ Total $ 42,037,276 $30,807,041 ============= ============ SHARES OUTSTANDING (unlimited number of shares authorized): Class A Shares $ 3,964,539 $ 1,748,479 Class B Shares 294,224 95,191 Class C Shares 5,784 2,737 Institutional Service Class Shares 874,046 564,483 ------------- ------------ Total $ 5,138,593 $ 2,140,890 ============= ============ NET ASSET VALUE: Class A Shares $ 8.19 $ 12.77 Class B Shares (a) $ 7.92 $ 12.52 Class C Shares (b) $ 7.92 $ 12.54 Institutional Service Class Shares $ 8.25 $ 12.84 MAXIMUM OFFERING PRICE PER SHARE (100%/100% - maximum sales charge) of net asset value adjusted to the nearest cent): Class A Shares $ 8.69 $ 13.55 Class C Shares $ 8.00 $ 12.67 ------------- ------------ Maximum Sales Charge - Class A Shares 5.75% 5.75% ============= ============ Maximum Sales Charge - Class C Shares 1.00% 1.00% ============= ============ (a) For Class B Shares, the redemption price per share varies by length of time shares are held. (b) For Class C Shares, the redemption price per share is reduced by 1.00% for shares held less than one year. See notes to financial statements.
2002 SEMIANNUAL REPORT 12
STATEMENTS OF OPERATIONS For the Period Ended April 30, 2002 (Unaudited) =========================================================================================================== NATIONWIDE NATIONWIDE LARGE CAP SMALL CAP GROWTH FUND FUND =========================================================================================================== INVESTMENT INCOME: Interest income $ 3,396 $ 2,954 Dividend income 167,018 168,260 ------------- ------------ Total Income 170,414 171,214 ------------- ------------ EXPENSES: Investment advisory fees 176,566 131,802 Fund administration and transfer agent fees 56,788 34,392 Distribution fees Class A 42,262 27,027 Distribution fees Class B 12,120 4,967 Distribution fees Class C 228 131 Administrative servicing fees Class A 22,264 14,984 Administrative servicing fees Institutional Service Class 9,827 6,164 Other 23,652 18,698 ------------- ------------ Total expenses before reimbursed expenses 343,707 238,165 Expenses reimbursed (58,777) (39,652) ------------- ------------ Total Expenses 284,930 198,513 ------------- ------------ NET INVESTMENT INCOME (LOSS) (114,516) (27,999) ------------- ------------ REALIZED / UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: Net realized gains (losses) on investment transactions (3,304,978) 82,301 Net realized gains (losses) on futures transactions 47,977 16,517 ------------- ------------ Net realized gains (losses) on investment and futures transactions (3,257,001) 98,818 Net change in unrealized appreciation/depreciation on investments and futures 3,120,450 4,674,575 ------------- ------------ Net realized/unrealized gains (losses) on investments and futures (136,551) 4,773,393 ------------- ------------ CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ (251,067) $ 4,746,094 ============= ============
SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 13
STATEMENTS OF CHANGES IN NET ASSETS ============================================================================================================ NATIONWIDE LARGE NATIONWIDE SMALL CAP GROWTH FUND CAP FUND =============================== =============================== SIX YEAR SIX YEAR MONTHS ENDED MONTHS ENDED ENDED OCTOBER 31, ENDED OCTOBER 31, APRIL 30, 2002 2001 APRIL 30, 2002 2001 ============================================================================================================ (UNAUDITED) (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ (114,516) $ (237,117) $ (27,299) $ (47,668) Net realized gains (losses) on investment and futures transactions (3,257,001) (10,799,466) 98,818 (450,399) Net change in unrealized appreciation/ depreciation on investments and futures 3,120,450 (13,103,058) 4,674,575 (2,144,100) ---------------- ------------- ---------------- ------------- Change in net assets resulting from operations (251,067) (24,139,641) 4,746,094 (2,642,167) ---------------- ------------- ---------------- ------------- DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM: Net realized gains on investments - (1,517,367) - (2,009,325) DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM: Net realized gains on investments - (116,018) - (67,048) DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS FROM: Net realized gains on investments - (353,855) - (374,497) ---------------- ------------- ---------------- ------------- Change in net assets from shareholder distributions - (1,987,240) - (2,450,870) ---------------- ------------- ---------------- ------------- Change in net assets from capital transactions (1,076,948) 15,711,093 (487,322) 2,780,313 ---------------- ------------- ---------------- ------------- Change in net assets (1,328,015) (10,415,788) 4,258,772 (2,312,724) NET ASSETS: Beginning of period 43,365,291 53,781,079 26,548,269 28,860,993 ---------------- ------------- ---------------- ------------- End of period $ 42,037,276 $ 43,365,291 $ 30,807,041 $ 26,548,269 ================ ============= ================ =============
See notes to financial statements. 2002 SEMIANNUAL REPORT 14
FINANCIAL HIGHLIGHTS Selected Data for Each Share of Capital Outstanding ================================================================================================================================ NATIONAL LARGE CAP GROWTH FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ============== ====================================== ========================= ======== NET REALIZED AND UNREALIZED NET NET ASSET NET GAINS TOTAL ASSET VALUE, INVESTMENT (LOSSES) FROM NET VALUE, BEGINNING OF INCOME ON INVESTMENT REALIZED TOTAL END OF PERIOD (LOSS) INVESTMENTS ACTIVITIES GAINS DISTRIBUTIONS PERIOD =============================================================================================================================== CLASS A SHARES Period Ended October 31, 1999 (d) $ 10.00 (0.04) 3.62 3.58 - - $ 13.58 Year Ended October 31, 2000 $ 13.58 (0.04) 1.03 0.99 (0.20) (0.20) $ 14.37 Year Ended October 31, 2001 $ 14.37 (0.04) (5.55) (5.59) (0.49) (0.49) $ 8.29 Six Months Ended April 30, 2002 (Unaudited) $ 8.29 (0.02) (0.08) (0.10) - - $ 8.19 CLASS B SHARES Period Ended October 31, 1999 (d) $ 10.00 (0.12) 3.62 3.50 - - $ 13.50 Year Ended October 31, 2000 $ 13.50 (0.06) 0.94 0.88 (0.20) (0.20) $ 14.18 Year Ended October 31, 2001 $ 14.18 (0.11) (5.55) (5.66) (0.49) (0.49) $ 8.03 Six Months Ended April 30, 2002 (Unaudited) $ 8.03 (0.05) (0.06) (0.11) - - $ 7.92 CLASS C SHARES Period Ended October 31, 2001 (e) $ 9.91 (0.03) (1.84) (1.87) - - $ 8.04 Six Months Ended April 30, 2002 (Unaudited) $ 8.04 (0.05) (0.07) (0.12) - - $ 7.92 INSTITUTIONAL SERVICE CLASS SHARES Period Ended October 31, 1999 (d) $ 10.00 (0.01) 3.61 3.60 - - $ 13.60 Year Ended October 31, 2000 $ 13.60 (0.03) 1.04 1.01 (0.20) (0.20) $ 14.41 Year Ended October 31, 2001 $ 14.41 (0.03) (5.55) (5.58) (0.49) (0.49) $ 8.34 Six Months Ended April 30, 2002 (Unaudited) $ 8.34 (0.02) (0.07) (0.09) - - $ 8.25 RATIOS/SUPPLEMENTAL DATA ========================== =============================================================== RATIO OF NET RATIO INVESTMENT NET OF INCOME RATIO OF ASSETS EXPENSES (LOSS) EXPENSES AT TO TO TO END OF AVERAGE AVERAGE AVERAGE TOTAL PERIOD NET NET NET PORTFOLIO RETURN(a) (000S) ASSETS ASSETS ASSETS (b) TURNOVER (c) ============================================================================================================================== CLASS A SHARES Period Ended October 31, 1999 (d) 35.80% (f) $ 33,410 1.20% (g) (0.27%) (g) 1.69% (g) 65.27% Year Ended October 31, 2000 7.26% $ 40,643 1.20% (0.33%) 1.74% 86.68% Year Ended October 31, 2001 (39.92%) $ 33,579 1.20% (0.47%) 1.88% 78.02% Six Months Ended April 30, 2002 (Unaudited) (1.21%) (f) $ 32,453 1.28% (g) (0.51%) (g) 1.54% (g) 44.25% CLASS B SHARES Period Ended October 31, 1999 (d) 35.00% (f) $ 1,179 1.95% (g) (0.97%) (g) 5.26% (g) 65.27% Year Ended October 31, 2000 6.48% $ 3,234 1.95% (1.06%) 3.33% 86.68% Year Ended October 31, 2001 (40.98%) $ 2,247 1.95% (1.21%) 3.70% 78.02% Six Months Ended April 30, 2002 (Unaudited) (1.37%) (f) $ 2,330 1.98% (g) (1.22%) (g) 2.36% (g) 44.25% CLASS C SHARES Period Ended October 31, 2001 (e) (18.87%) (f) $ 35 1.95% (g) (1.20%) (g) 4.51% (g) 78.02% Six Months Ended April 30, 2002 (Unaudited) (1.49%) (f) $ 46 1.98% (g) (1.22%) (g) 2.32% (g) 44.25% INSTITUTIONAL SERVICE CLASS SHARES Period Ended October 31, 1999 (d) 36.00% (f) $ 4,594 1.05% (g) (0.09%) (g) 3.46% (g) 65.27% Year Ended October 31, 2000 7.40% $ 9,904 1.05% (0.17%) 1.54% 86.68% Year Ended October 31, 2001 (39.73%) $ 7,505 1.05% (0.33%) 1.62% 78.02% Six Months Ended April 30, 2002 (Unaudited) (1.08%) (f) $ 7,209 1.13% (g) (0.36%) (g) 1.39% (g) 44.25% (a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For period from November 2, 1998 (commencement of operations) through October 31, 1999. (e) For the period from March 1, 2001 (commencement of operations) through October 31, 2001. (f) Not annualized. (g) Annualized. See notes to financial statements.
2002 SEMIANNUAL REPORT 15 FINANCIAL HIGHLIGHTS Selected Data for Each Share of Capital Outstanding ================================================================================
INVESTMENT ACTIVITIES DISTRIBUTIONS ==================================================================================================== NET REALIZED AND NET ASSET NET UNREALIZED VALUE, INVESTMENT GAINS TOTAL FROM NET NET BEGINNING INCOME (LOSSES) ON INVESTMENT INVESTMENT REALIZED TOTAL OF PERIOD (LOSS) INVESTMENTS ACTIVITIES INCOME GAINS DISTRIBUTIONS ============================================================================================================================= CLASS A SHARES Period Ended October 31, 1999 (d) $ 10.00 0.03 1.19 1.22 (0.03) - (0.03) Year Ended October 31, 2000 $ 11.19 (0.02) 2.05 2.03 - (0.10) (0.10) Year Ended October 31, 2001 $ 13.12 (0.02) (1.23) (1.25) - (1.08) (1.08) Six Months Ended April 30, 2002 (Unaudited) $ 10.79 (0.01) 1.99 1.98 - - - CLASS B SHARES Period Ended October 31, 1999 (d) $ 10.00 (0.05) 1.22 1.17 - - - Year Ended October 31, 2000 $ 11.17 (0.08) 2.03 1.95 - (0.10) (0.10) Year Ended October 31, 2001 $ 13.02 (0.09) (1.24) (1.33) - (1.08) (1.08) Six Months Ended April 30, 2002 (Unaudited) $ 10.61 (0.05) 1.96 1.91 - - - CLASS C SHARES Period Ended October 31, 2001 (e) $ 11.33 (0.04) (0.66) (0.70) - - - Six Months Ended April 30, 2002 (Unaudited) $ 10.63 (0.04) 1.95 1.91 - - - INSTITUTIONAL SERVICE CLASS SHARES Period Ended October 31, 1999 (d) $ 10.00 0.04 1.19 1.23 (0.03) - (0.03) Year Ended October 31, 2000 $ 11.20 (0.01) 2.06 2.05 - (0.10) (0.10) Year Ended October 31, 2001 $ 13.15 - (1.23) (1.23) - (1.08) (1.08) Six Months Ended April 30, 2002 (Unaudited) $ 10.84 - 2.00 2.00 - - - RATIOS / SUPPLEMENTAL DATA =========================================================================================== RATIO OF NET NET NET INVESTMENT ASSET ASSETS RATIO OF INCOME RATIO OF VALUE, AT END OF EXPENSES TO (LOSS) EXPENSES TO END OF TOTAL PERIOD AVERAGE TO AVERAGE AVERAGE PORTFOLIO PERIOD RETURN (a) (000s) NET ASSETS NET ASSETS NET ASSETS (b) TURNOVER (c) ================================================================================================================== CLASS A SHARES Period Ended October 31, 1999 (d) $ 11.19 12.18% (f) $ 19,830 1.35% (g) 0.29% (g) 2.24% (g) 81.24% Year Ended October 31, 2000 $ 13.12 18.25% $ 23,922 1.35% (0.16%) 2.10% 139.27% Year Ended October 31, 2001 $ 10.79 (10.09%) $ 21,190 1.35% (0.17%) 2.00% 119.03% Six Months Ended April 30, 2002 (Unaudited) $ 12.77 18.35% (f) $ 22,334 1.43% (g) (0.19%) (g) 1.72% (g) 40.42% CLASS B SHARES Period Ended October 31, 1999 (d) $ 11.17 11.70% (f) $ 215 2.10% (g) (0.46%) (g) 6.57% (g) 81.24% Year Ended October 31, 2000 $ 13.02 17.56% $ 748 2.10% (0.90%) 3.82% 139.27% Year Ended October 31, 2001 $ 10.61 (10.84%) $ 854 2.10% (0.93%) 3.74% 119.03% Six Months Ended April 30, 2002 (Unaudited) $ 12.52 18.00%(f) $ 1,191 2.14% (g) (0.90%) (g) 2.48% (g) 40.42% CLASS C SHARES Period Ended October 31, 2001 (e) $ 10.63 (6.18%) (f) $ 20 2.10% (g) (1.26%) (g) 5.62% (g) 119.03% Six Months Ended April 30, 2002 (Unaudited) $ 12.54 17.97% (f) $ 34 2.14% (g) (0.91%) (g) 2.61% (g) 40.42% INSTITUTIONAL SERVICE CLASS SHARES Period Ended October 31, 1999 (d) $ 11.20 12.36% (f) $ 1,759 1.20% (g) 0.39% (g) 4.87% (g) 81.24% Year Ended October 31, 2000 $ 13.15 18.44% $ 4,192 1.20% (0.01%) 1.92% 139.27% Year Ended October 31, 2001 $ 10.84 (9.90%) $ 4,485 1.20% (0.04%) 1.79% 119.03% Six Months Ended April 30, 2002 (Unaudited) $ 12.84 18.45% (f) $ 7,248 1.29% (g) (0.07%) (g) 1.56% (g) 40.42% ================================================================================================================== (a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For period from November 2, 1998 (commencement of operations) through October 31, 1999. (e) For the period from March 1, 2001 (commencement of operations) through October 31, 2001. (f) Not annualized. (g) Annualized. See notes to financial statements.
2002 SEMIANNUAL REPORT 16 NATIONWIDE S&P 500 INDEX FUND Class A Shares symbol: NASPX Class B Shares symbol: NBSPX Institutional Class symbol: NWIDX Service Class Shares symbol: NWISX Institutional Service Class symbol: NWIIX Local Fund Shares symbol: NWILX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning 1.97%* versus 2.31% for the S&P 500 Index. For the trailing 12 months, the Fund returned -13.11%*, underperforming the Index, which returned -12.63%. WHAT ECONOMIC/MARKET FACTORS INFLUENCED THE PORTFOLIO'S PERFORMANCE? The fourth quarter of 2001 saw tremendous rebounds from the record-setting lows of the third quarter, with November contributing the greatest gain. This was mainly due to the Federal Reserve Board's aid in cutting interest rates three consecutive times in the third quarter to a 40-year low of 1.75%. The first quarter of 2002 was a rather uneventful and quiet period during which the markets saw mixed sentiments regarding the prospects for the future of the economy. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? The S&P 500 Index posted the lowest return of all the major S&P indexes. Sector "flip-flops"occurred throughout the period as technology led the gain in the fourth quarter of 2001 with a massive return of nearly 34%. However, this leadership did not continue in the first quarter of 2002 when technology came in as the thirdworst- performing sector with a return of nearly -9.00%. The technology sector's downward trend continued into the second quarter. With technology's decline, producer durables proved to be the leading sector with a return of 25% for the fourth quarter of 2001, a growth trend that has continued into the second quarter of 2002. HOW IS THE FUND POSITIONED? It appears that an economic recovery is well on its way. Nevertheless, many current issues and factors will affect which direction the economy will turn. The market is expected to continue to be choppy. However, as the Federal Reserve works to stimulate growth, the outlook for the markets remains favorable. With that in mind, the portfolio is expected to continue to meets its objectives of replicating the risk and returns of the benchmark index. PORTFOLIO MANAGER: FUND ASSET MANAGEMENT, L.P. - SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $498,411,598 APRIL 30, 2002
AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 INCEPTION(1) ========================================================= Class A(2) w/o SC(3) -13.11% -0.67% w/SC(4) -18.14% -2.22% --------------------------------------------------------- Class B(2) w/o SC(3) -13.67% -1.05% w/SC(5) -17.98% -1.81% --------------------------------------------------------- Institutional Class(6),(7) -12.75% -0.41% --------------------------------------------------------- Service Class(7),(8) -13.13% -0.90% --------------------------------------------------------- Institutional Service Class(7),(8) -12.97% -0.72% --------------------------------------------------------- Local Fund Shares(7) -12.82% -0.59% ---------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Fund commenced operations on July 24, 1998. 2 These returns include performance based on Local Fund shares, which was achieved prior to the creation of Class A and Class B shares (12/29/99). These returns have been restated for sales charges but not for fees applicable to these classes of shares, which include a 0.25% (Class A) or 1.00% (Class B) 12b-1 fee. Had Class A or Class B been in existence for the time periods presented, the performance for such classes would have been lower as a result of their additional expenses. 3 These returns do not reflect the effects of sales charges (SC). 4 A 5.75% front-end sales charge was deducted. 5 A 5.00% contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years. 6 These returns include performance based on Local Fund shares, which was achieved prior to the creation of Institutional Class shares (12/29/99). These returns have not been restated to reflect the Institutional Class' lower expenses. 7 Not subject to any sales charges. 8 These returns include performance based on Local Fund shares, which was achieved prior to the creation of Service Class and Institutional Service Class shares (11/2/98). These returns have not been restated for fees applicable to these classes of shares, which include a 0.15% 12b-1 fee (Service Class) or 0.15% administrative servicing fee (Institutional Service Class). Had the Service Class or Institutional Service Class been in existence for the time periods presented, the performance for such classes would have been lower as a result of their additional expenses. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPH OMITTED]
Local Date Shares S&P 500 CPI 24-Jul-98 10000 10000 10000 31-Oct-98 9692 9843 10049 31-Oct-99 12101 12369 10306 31-Oct-00 12759 13123 10662 31-Oct-01 9581 9855 10888 30-Apr-02 9779 10082 11008
Comparative performance of $10,000 invested in Local Fund Shares of the Nationwide S&P 500 Index Fund, the S&P 500 Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees or expenses. (a) The S&P 500 Index is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of these 500 stocks which represent all major industries. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 17
STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) ================================================================= NATIONWIDE S & P 500 INDEX FUND COMMON STOCKS (93.5%) ================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= ADVERTISING SERVICES (0.1%) Interpublic Group of Cos., Inc. (The) 17,126 $ 528,851 ----------- ================================================================= AEROSPACE (0.9%) General Dynamics Corp. 10,000 970,900 Lockheed Martin Corp. 21,800 1,371,220 Northrop Grumman Corp. 5,600 675,696 United Technologies Corp. 22,000 1,543,740 ----------- 4,561,556 ----------- ================================================================= AEROSPACE / DEFENSE (0.9%) Boeing Co. (The) 38,807 1,730,792 Goodrich (B.F.) Co. 5,800 185,136 Honeywell International, Inc. 37,625 1,380,085 Raytheon Co. 19,400 820,620 Rockwell Collins, Inc. 7,000 166,740 ----------- 4,283,373 ----------- ================================================================= AIRLINES (0.4%) AMR Corp. (b) 7,900 169,613 Delta Air Lines, Inc. 6,500 180,115 FedEx Corp. (b) 14,900 769,883 Southwest Airlines Co. 34,212 623,001 U.S. Airways Group, Inc. (b) 2,200 11,440 ----------- 1,754,052 ----------- ================================================================= ALUMINUM (0.1%) Alcan Aluminum Ltd. 15,799 578,717 ----------- ================================================================= ANALYTICAL INSTRUMENTS (0.1%) Applera Corp.-Applied Biosystems Group 10,900 186,608 Waters Corp. (b) 7,200 194,040 ----------- 380,648 ----------- ================================================================= APPAREL (0.2%) Nike, Inc. Class B 13,400 714,622 Reebok International Ltd. (b) 2,900 80,185 ----------- 794,807 ----------- ================================================================= APPAREL & ACCESSORIES (0.1%) Liz Claiborne, Inc. 5,000 156,450 V.F. Corp. 4,100 179,457 ----------- 335,907 ----------- ================================================================= APPLIANCE & HOUSEHOLD DURABLE (0.1%) Maytag Corp. 4,400 203,060 Newell Rubbermaid, Inc. 13,951 438,061 ----------- 641,121 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= AUTO PARTS & EQUIPMENT (0.2%) Dana Corp. 4,900 $ 99,274 Delphi Automotive Systems Corp. 23,095 359,127 Ingersoll Rand Co. 8,500 424,575 ----------- 882,976 ----------- ================================================================= AUTOMOBILES (0.7%) Ford Motor Co. 83,772 1,340,352 General Motors Corp. 26,413 1,694,394 PACCAR, Inc. 4,300 307,321 Visteon Corp. 8,471 130,792 ----------- 3,472,859 ----------- ================================================================= BANKS (3.0%) Bank of America Corp. 74,674 5,412,371 Bank of New York Co., Inc. 36,000 1,317,240 J.P. Morgan Chase & Co. 93,665 3,287,642 Mellon Financial Corp. 22,000 830,720 Northern Trust Corp. 11,300 600,256 State Street Corp. 16,200 827,982 Wachovia Corp. 64,600 2,457,384 Zions Bancorporation 4,900 264,992 ----------- 14,998,587 ----------- ================================================================= BEVERAGES / ALCOHOLIC (0.1%) Adolph Coors Co. Class B 2,200 147,070 Brown-Forman Corp. Class B 2,700 212,274 ----------- 359,344 ----------- ================================================================= BEVERAGES / SOFT DRINK (1.5%) Coca-Cola Co. 118,500 6,577,935 Coca-Cola Enterprises, Inc. 18,700 366,894 Pepsi Bottling Group, Inc. (The) 11,400 326,496 ----------- 7,271,325 ----------- ================================================================= BIOTECHNOLOGY (0.2%) Chiron Corp. (b) 9,300 376,371 Immunex Corp. (b) 24,900 675,786 ----------- 1,052,157 ----------- ================================================================= BLAST FURNACES & STEEL MILLS (0.0%) United States Steel Corp. 2,900 52,316 ----------- ================================================================= BROADCAST MEDIA / CABLE TELEVISION (1.3%) Clear Channel Communications, Inc. (b) 27,602 1,295,914 Comcast Corp. Special Class A (b) 44,200 1,182,350 Viacom, Inc. Class B (b) 83,235 3,920,368 ----------- 6,398,632 -----------
2002 SEMIANNUAL REPORT 18
===================================================================== COMMON STOCKS (continued) ===================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== BUSINESS SERVICES (0.4%) Cintas Corp. 8,600 $ 445,222 Compuware Corp. (b) 18,000 141,120 Concord EFS, Inc. (b) 25,200 796,923 Convergys Corp. (b) 7,011 193,994 NCR Corp. (b) 3,700 143,782 Pitney Bowes, Inc. 10,300 433,630 ----------- 2,154,671 ----------- ===================================================================== CAPITAL GOODS (0.5%) Crane Co. 1,950 53,781 Cummins Engine, Inc. 2,700 114,885 Deere & Co. 12,100 541,596 Dover Corp. 8,300 309,258 Genuine Parts Co. 6,800 234,668 McDermott International, Inc. (b) 4,200 67,074 Pall Corp. 4,000 83,200 Parker-Hannifin Corp. 6,400 319,680 PerkinElmer, Inc. 7,600 97,280 Snap-On, Inc. 1,900 60,192 Stanley Works (The) 3,100 144,088 Textron, Inc. 7,000 344,260 ----------- 2,369,962 ----------- ===================================================================== CHEMICALS (0.1%) Great Lakes Chemical Corp. 1,700 43,758 Millipore Corp. 1,600 63,920 Praxair, Inc. 8,400 479,640 Sigma-Aldrich Corp. 2,700 127,926 ----------- 715,244 ----------- ===================================================================== CHEMICALS / DIVERSIFIED (1.1%) Air Products & Chemicals, Inc. 11,600 557,380 Avery Dennison Corp. 4,400 281,820 Dow Chemical Co. 43,905 1,396,179 E.I. du Pont de Nemours and Co. 48,650 2,164,925 Eastman Chemical Co. 4,400 194,040 Engelhard Corp. 4,500 136,890 Hercules, Inc. (b) 3,700 45,140 Occidental Petroleums Corp. 16,300 468,625 Rohm & Haas Co. 9,031 335,140 ----------- 5,580,139 ----------- ===================================================================== COMMUNICATION EQUIPMENT (2.8%) CIENA Corp. (b) 18,200 136,318 Cisco Systems, Inc. (b) 348,339 5,103,166 Citizens Communications Co. (b) 9,400 87,138 Conexant Systems, Inc. (b) 14,300 145,860 Corning, Inc. 42,975 287,503 JDS Uniphase Corp. (b) 63,092 273,819 Lucent Technologies, Inc. 159,670 734,482 Motorola, Inc. 103,606 1,595,532 SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== COMMUNICATION EQUIPMENT (continued) Nortel Networks Corp. ADR 145,710 $ 495,414 Tellabs, Inc. (b) 19,300 163,857 Verizon Communications, Inc. 128,876 5,169,217 ----------- 14,192,306 ----------- ===================================================================== COMPUTER / HARDWARE (1.5%) Apple Computer, Inc. (b) 18,000 436,860 International Business Machines Corp. 81,806 6,852,071 Lexmark International Group, Inc. Class A (b) 6,400 382,592 ----------- 7,671,523 ----------- ===================================================================== COMPUTER EQUIPMENT (1.4%) American Power Conversion Corp. (b) 6,400 82,240 Compaq Computer Corp. 78,300 794,745 Dell Computer Corp. (b) 123,800 3,260,892 EMC Corp. (b) 102,500 936,850 Gateway, Inc. (b) 9,700 53,156 Hewlett-Packard Co. 92,700 1,585,170 Network Appliance, Inc. (b) 16,562 289,007 ----------- 7,002,060 ----------- ===================================================================== COMPUTER INTEGRATED SYSTEMS DESIGN (0.0%) Avaya, Inc. (b) 13,222 81,183 ----------- ===================================================================== COMPUTER SOFTWARE & SERVICES (5.3%) Adobe Systems, Inc. 12,000 479,520 Automatic Data Processing, Inc. 30,200 1,535,368 BMC Software, Inc. (b) 11,800 170,628 Citrix Systems, Inc. (b) 10,600 122,960 Computer Associates International, Inc. 26,100 485,460 Electronic Data Systems Corp. 22,200 1,204,572 First Data Corp. 17,800 1,414,922 Fiserv, Inc. (b) 9,850 437,931 Intuit, Inc. (b) 9,000 352,620 Mercury Interactive Corp. (b) 4,500 167,715 Microsoft Corp. (b) 257,122 13,437,196 Novell, Inc. (b) 20,800 76,960 NVIDIA Corp. (b) 6,100 212,341 Oracle Corp. (b) 261,016 2,620,601 Parametric Technology Corp. (b) 13,500 54,540 PeopleSoft, Inc. (b) 13,600 315,112 Radioshack Corp. 8,600 268,320 Rational Software Corp. (b) 10,200 148,614 Sapient Corp. (b) 4,100 20,008 Siebel Systems, Inc. (b) 21,070 509,683 Sun Microsystems, Inc. (b) 150,900 1,234,362 Symbol Technologies, Inc. 14,050 118,863 Unisys Corp. (b) 13,200 178,200 VERITAS Software Corp. (b) 18,339 519,727 Yahoo!, Inc. (b) 26,100 385,236 ----------- 26,471,459 -----------
2002 SEMIANNUAL REPORT 19
STATEMENTS OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================== NATIONWIDE S & P 500 INDEX FUND (Continued) COMMON STOCKS (continued) ================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== CONGLOMERATES (0.7%) Illinois Tool Works, Inc. 15,100 $ 1,088,710 ITT Industries, Inc. 3,800 265,468 Johnson Controls, Inc. 4,300 370,875 Tyco International Ltd. 94,780 1,748,691 ----------- 3,473,744 ----------- ================================================================== CONSTRUCTION & BUILDING MATERIALS (0.1%) Centex Corp. 3,300 185,790 Sherwin Williams Co. 5,900 181,307 Vulcan Materials Co. 3,800 174,876 ----------- 541,973 ----------- ================================================================== CONSTRUCTION & HOUSING (0.1%) Masco Corp. 23,500 660,350 ----------- ================================================================== CONSTRUCTION MACHINERY (0.2%) Caterpillar, Inc. 17,100 934,002 ----------- ================================================================== CONSUMER DURABLE (0.3%) Black & Decker Corp. 4,500 219,060 Danaher Corp. 7,600 544,008 Fortune Brands, Inc. 5,900 308,334 Whirlpool Corp. 3,600 269,820 ----------- 1,341,222 ----------- ================================================================== CONSUMER FINANCE (2.1%) Citigroup, Inc. 244,327 10,579,359 ----------- ================================================================== CONSUMER NON-CYCLICAL (2.4%) Avon Products, Inc. 12,000 670,200 Clorox Co. (The) 12,000 531,000 Colgate-Palmolive Co. 26,900 1,425,969 Ecolab, Inc. 4,900 215,159 Gillette Co. (The) 49,200 1,745,616 International Flavor and Fragrances, Inc. 3,200 103,040 Kimberly-Clark Corp. 25,629 1,668,960 Procter & Gamble Co. 61,500 5,550,990 Tupperware Corp. 1,900 43,624 ----------- 11,954,558 ----------- ================================================================== CONTAINERS (0.1%) Ball Corp. 3,200 152,160 Bemis, Inc. 1,700 90,491 Sealed Air Corp. (b) 4,400 196,548 ----------- 439,199 ----------- ================================================================== CREDIT REPORTING SERVICES (0.1%) Moodys, Inc. 6,300 274,554 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== DATA PROCESSING & REPRODUCTION (0.1%) Computer Sciences Corp. (b) 7,200 $ 322,920 ----------- ================================================================== DISTRIBUTION (0.2%) SYSCO Corp. 33,000 957,330 ----------- ================================================================== DRUGS (5.7%) Amgen, Inc. (b) 49,800 2,633,424 Biogen, Inc. (b) 7,700 334,719 Eli Lilly & Co. 53,400 3,527,070 Forest Laboratories, Inc. Class A (b) 8,100 624,834 Genzyme Corp. (b) 10,700 438,058 Merck & Co., Inc. 108,000 5,868,720 Pfizer, Inc. 298,500 10,850,475 Pharmacia & Upjohn, Inc. 61,629 2,540,964 Schering-Plough Corp. 69,500 1,897,350 ----------- 28,715,614 ----------- ================================================================== ELECTRIC, GAS & SANITARY SERVICES (0.2%) Exelon Corp. 14,600 792,780 Mirant Corp. (b) 21,631 261,302 ----------- 1,054,082 ----------- ================================================================== ELECTRICAL EQUIPMENT (3.5%) Agilent Technologies, Inc. (b) 21,226 637,841 Cooper Industries, Inc. 4,900 214,620 Eaton Corp. 3,700 313,057 Emerson Electric Co. 19,600 1,046,444 General Electric Co. 471,800 14,885,290 Grainger (W.W.), Inc. 3,900 218,673 Rockwell International Corp. 6,500 139,555 ----------- 17,455,480 ----------- ================================================================== ELECTRONICS (3.5%) Altera Corp. (b) 17,700 363,912 Applied Micro Circuits Corp. (b) 18,000 121,500 Broadcom Corp. Class A (b) 11,209 386,711 Intel Corp. 318,700 9,118,006 Jabil Circuit, Inc. (b) 7,700 157,157 KLA-Tencor Corp. (b) 9,300 548,421 Linear Technology Corp. 14,300 555,698 LSI Logic Corp. (b) 15,100 194,035 Maxim Integrated Products, Inc. (b) 14,972 745,606 Molex, Inc. 7,825 263,077 National Semiconductor Corp. (b) 9,300 293,136 Palm, Inc. (b) 34,457 109,229 PMC-Sierra, Inc. (b) 9,700 150,932 QLogic Corp. (b) 5,000 228,550 Sanmina Corp. (b) 25,396 264,118 Solectron Corp. (b) 34,461 251,565 Tektronix, Inc. (b) 3,100 68,200 Teradyne, Inc. (b) 9,300 306,435
2002 SEMIANNUAL REPORT 20
COMMON STOCKS (continued) ================================================================ SHARES OR PRINCIPAL AMOUNT VALUE ================================================================ ELECTRONICS (continued) Texas Instruments, Inc. 82,500 $ 2,551,725 Thomas & Betts Corp. 1,900 44,650 Xilinx, Inc. (b) 15,200 573,952 ----------- 17,296,615 ----------- ================================================================ ENTERTAINMENT (0.5%) International Game Technology (b) 4,800 302,160 Walt Disney Co. (The) 96,800 2,243,824 ----------- 2,545,984 ----------- ================================================================ FINANCIAL (2.8%) American Express Co. 63,400 2,600,034 Capital One Financial Corp. 10,800 646,812 Comerica, Inc. 9,200 578,220 Countrywide Credit Industries, Inc. 6,100 284,931 Fannie Mae 47,400 3,741,282 Golden West Financial Corp. 7,100 485,569 Household International, Inc. 21,000 1,224,090 Lehman Brothers Holdings, Inc. 11,100 654,900 MBNA Corp. 39,654 1,405,734 Providian Financial Corp. 18,400 130,640 Schwab (Charles) Corp. 62,400 710,736 Washington Mutual, Inc. 44,497 1,678,872 ----------- 14,141,820 ----------- ================================================================ FINANCIAL / BANKS (2.9%) AmSouth Bancorporation 14,700 333,837 Bank One Corp. 55,434 2,265,588 BB&T Corp. 20,800 792,064 Bear Stearns Cos., Inc. 4,881 302,329 Charter One Financial, Inc. 8,939 316,262 Fifth Third Bancorp 28,346 1,944,252 Fleet Boston Corp. 49,828 1,758,928 Huntington Bancshares, Inc. 9,244 187,561 KeyCorp 18,500 520,035 National City Corp. 27,500 858,000 PNC Bank Corp. 14,400 794,160 Regions Financial Corp. 9,100 319,137 SouthTrust Corp. 16,400 437,552 Suntrust Banks, Inc. 13,100 890,538 Synovus Financial Corp. 11,900 321,776 U.S. Bancorp 88,763 2,103,683 Union Planters Corp. 5,400 270,594 ----------- 14,416,296 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ================================================================ FINANCIAL SERVICES (1.3%) AMBAC Financial Group, Inc. 4,200 $ 264,012 H&R Block, Inc. 9,600 385,152 John Hancock Financial Services, Inc. 12,600 486,360 Marshall & Ilsley Corp. 5,700 362,805 Stilwell Financial, Inc. 11,300 241,368 USA Education, Inc. 7,900 757,215 Wells Fargo Co. 80,495 4,117,319 ----------- 6,614,231 ----------- ================================================================ FOOD & BEVERAGE (1.5%) Anheuser-Busch Cos., Inc. 42,800 2,268,400 General Mills, Inc. 18,200 801,710 PepsiCo, Inc. 83,920 4,355,448 ----------- 7,425,558 ----------- ================================================================ FOOD & RELATED (2.4%) Archer-Daniels-Midland Co. 27,295 362,205 Campbell Soup Co. 17,200 474,892 ConAgra, Inc. 27,300 668,850 Heinz (H.J.) Co. 17,600 739,024 Hershey Foods Corp. 7,100 482,800 Kellogg Co. 20,600 739,952 Philip Morris Cos., Inc. 103,603 5,639,110 Sara Lee Corp. 35,975 761,951 Unilever NV 26,414 1,708,986 Wrigley (Wm.) Jr. Co. 9,900 544,500 ----------- 12,122,270 ----------- ================================================================ FURNITURE & HOME FURNISHINGS (0.0%) Leggett & Platt, Inc. 7,400 194,620 ----------- ================================================================ GAS / DISTRIBUTION (0.2%) El Paso Corp. 23,295 931,800 Keyspan Corp. 6,845 241,629 ----------- 1,173,429 ----------- ================================================================ GOLD ORES (0.3%) Barrick Gold Corp. 27,411 550,139 Freeport-McMoRan Copper & Gold, Inc. (b) 7,100 126,096 Newmont Mining Corp. 20,200 575,902 Placer Dome, Inc. 12,400 145,700 ----------- 1,397,837 ----------- ================================================================ HEALTHCARE (6.1%) Abbott Laboratories 73,900 3,986,905 Allergan, Inc. 6,500 428,415 Bard (C.R.), Inc. 2,900 159,326 Bausch & Lomb, Inc. 1,800 64,746 Baxter International, Inc. 28,800 1,638,720 Becton Dickinson & Co. 10,800 401,436 Biomet, Inc. 14,050 396,632
2002 SEMIANNUAL REPORT 21
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ====================================================================== NATIONWIDE S & P 500 INDEX FUND (Continued) COMMON STOCKS (continued) ====================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== HEALTHCARE (continued) Boston Scientific Corp. (b) 18,600 $ 463,512 Bristol-Myers Squibb Co. 91,900 2,646,720 Cardinal Health, Inc. 20,750 1,436,938 Guidant Corp. (b) 15,200 571,520 HCA-The Healthcare Co. 25,400 1,213,866 Health Management Associates, Inc. Class A (b) 9,600 204,864 HealthSouth Corp. (b) 20,100 303,510 Humana, Inc. (b) 5,600 91,560 Johnson & Johnson Co. 145,650 9,301,209 King Pharmaceuticals, Inc. (b) 10,292 322,551 Manor Care, Inc. (b) 5,900 151,276 McKesson HBOC, Inc. 14,681 592,966 Medtronic, Inc. 57,500 2,569,675 Quintiles Transnational Corp. (b) 5,600 79,520 St. Jude Medical, Inc. (b) 4,700 391,087 Stryker Corp. 9,500 508,345 Tenet Healthcare Corp. (b) 15,800 1,159,246 UnitedHealth Group, Inc. 14,200 1,246,902 Watson Pharmaceutical, Inc. (b) 3,900 95,940 Wellpoint Health Networks, Inc. (b) 7,500 563,100 ----------- 30,990,487 ----------- ====================================================================== HOME BUILDING (0.1%) Fluor Corp. 2,600 107,458 KB Home 2,600 129,610 Pulte Corp. 3,000 159,600 ----------- 396,668 ----------- ====================================================================== HOTELS & CASINOS (0.1%) Harrah's Entertainment, Inc. (b) 6,000 294,960 ----------- ====================================================================== HOTELS / MOTELS (0.4%) Cendant Corp. (b) 45,100 811,349 Hilton Hotels Corp. 16,200 265,032 Marriott International, Inc. Class A 12,300 540,462 Starwood Hotels & Resorts Worldwide, Inc. 9,763 369,041 ----------- 1,985,884 ----------- ====================================================================== INSURANCE (3.8%) ACE Ltd. 12,700 552,704 Aetna, Inc. 7,900 376,040 Allstate Corp. (The) 34,200 1,359,108 American International Group, Inc. 124,078 8,576,271 AON Corp. 11,950 426,974 Chubb Corp. (The) 8,700 667,290 CIGNA Corp. 7,300 795,700 Cincinnati Financial Corp. 6,400 299,904 Hartford Financial Services Group 12,300 852,390 Lincoln National Corp. 8,900 426,310 Loews Corp. 8,400 503,580 MBIA, Inc. 6,100 328,973 SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== INSURANCE (continued) MetLife, Inc. 33,000 $ 1,126,620 MGIC Investment Corp. 4,300 306,848 Progressive Corp. (The) 10,800 621,000 SAFECO Corp. 5,600 187,040 St. Paul Cos., Inc. 10,200 508,062 Torchmark Corp. 4,700 192,183 Unum Provident Corp. 9,657 272,714 XL Capital Ltd. 6,800 641,580 ----------- 19,021,291 ----------- ====================================================================== INSURANCE / LIFE (0.2%) AFLAC, Inc. 26,300 786,370 Conseco, Inc. (b) 13,100 48,863 Jefferson-Pilot Corp. 6,000 300,480 ----------- 1,135,713 ----------- ====================================================================== INSURANCE BROKERS (0.3%) Marsh & McLennan Cos., Inc. 13,400 1,354,472 ----------- ====================================================================== INVESTMENT MANAGEMENT (1.0%) Franklin Resources, Inc. 11,500 481,850 Merrill Lynch & Co., Inc. 40,025 1,678,649 Morgan Stanley Dean Witter & Co. 52,276 2,494,610 T. Rowe Price Group, Inc. 6,400 224,448 ----------- 4,879,557 ----------- ====================================================================== LEISURE PRODUCTS (0.3%) Brunswick Corp. 4,200 118,398 Carnival Corp. 26,600 886,046 Hasbro, Inc. 5,700 91,086 Mattel, Inc. 19,300 398,352 ----------- 1,493,882 ----------- ====================================================================== MANUFACTURING (0.5%) 3M Co. 18,600 2,339,880 Power-One, Inc. (b) 5,000 41,800 ----------- 2,381,680 ----------- ====================================================================== MANUFACTURING / DIVERSIFIED (0.1%) PPG Industries, Inc. 8,800 460,328 ----------- ====================================================================== MEDICAL PRODUCTS (0.1%) Zimmer Holdings, Inc. (b) 7,910 274,556 ----------- ====================================================================== METAL PROCESSORS (0.0%) Thermo Electron Corp. (b) 7,000 132,300 ----------- ====================================================================== METALS (0.1%) Inco Ltd. (b) 6,400 128,192 Phelps Dodge Corp. 4,308 154,226 ----------- 282,418 -----------
2002 SEMIANNUAL REPORT 22
COMMON STOCKS (continued) ================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== METALS & MINING (0.3%) Alcoa, Inc. 39,132 $ 1,331,662 ----------- ================================================================== MORTGAGE / ASSET BACKED OBLIGATIONS (0.4%) Freddie Mac 32,300 2,110,805 ----------- ================================================================== MOTOR VEHICLES (0.3%) Harley-Davidson, Inc. 15,100 800,149 Navistar International Corp. 3,100 123,690 TRW, Inc. 6,400 352,192 ----------- 1,276,031 ----------- ================================================================== MULTI-MEDIA (0.8%) AOL Time Warner, Inc. (b) 210,250 3,998,955 Viacom, Inc. Class A (b) 1,000 47,130 ----------- 4,046,085 ----------- ================================================================== NATURAL GAS (0.1%) NICOR, Inc. 1,400 65,492 People's Energy Corp. 1,000 39,000 Sempra Energy 7,715 197,273 ----------- 301,765 ----------- ================================================================== OFFICE EQUIPMENT & SUPPLIES (0.1%) Xerox Corp. 30,100 266,385 ----------- ================================================================== OIL & GAS (5.5%) Amerada Hess Corp. 4,800 369,024 Apache Corp. 6,720 391,978 Ashland, Inc. 2,000 81,660 ChevronTexaco Corp. 50,693 4,395,590 Conoco, Inc. 31,307 878,161 Devon Energy Corp. 7,801 384,667 EOG Resources, Inc. 6,100 259,555 Exxon Mobil Corp. 324,778 13,046,333 Kinder Morgan, Inc. 6,600 319,506 Marathon Oil Corp. 14,200 412,652 Nabors Industries, Inc. (b) 7,391 336,660 Noble Drilling Corp. (b) 7,100 307,785 Rowan Cos., Inc. (b) 6,200 157,356 Royal Dutch Petroleum Co. 100,900 5,273,034 Sunoco, Inc. 4,600 158,148 Transocean Sedco Forex, Inc. 13,900 493,450 Unocal Corp. 10,000 371,900 Williams Cos., Inc. (The) 25,400 485,140 ----------- 28,122,599 ----------- ================================================================== OIL & GAS FIELD MACHINERY (0.5%) Anadarko Petroleum Corp. 11,057 595,088 Burlington Resources, Inc. 10,000 444,300 Kerr-McGee Corp. 5,484 327,943 Phillips Petroleum Co. 18,400 1,100,504 ----------- 2,467,835 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== OIL EQUIPMENT & SERVICES (0.5%) Baker Hughes, Inc. 15,570 $ 586,678 Dynegy, Inc. 17,700 318,600 Halliburton Co. 21,100 358,489 Schlumberger Ltd. 26,600 1,456,350 ----------- 2,720,117 ----------- ================================================================== PAPER & FOREST PRODUCTS (0.5%) Boise Cascade Corp. 3,800 128,706 Georgia Pacific Corp. 11,263 326,402 International Paper Co. 22,596 936,152 Louisiana-Pacific Corp. 3,500 40,950 Meadwestvaco Corp. 7,901 231,973 Pactiv Corp. (b) 5,200 107,484 Temple-Inland, Inc. 1,900 100,586 Weyerhaeuser Co. 11,200 667,632 ----------- 2,539,885 ----------- ================================================================== PHARMACEUTICALS (0.9%) AmerisourceBergen Corp. 5,000 387,500 MedImmune, Inc. (b) 11,600 387,440 Wyeth 63,100 3,596,700 ----------- 4,371,640 ----------- ================================================================== PHOTOGRAPHIC (0.1%) Eastman Kodak Co. 15,000 483,150 ----------- ================================================================== POLLUTION CONTROL (0.2%) Allied Waste Industries, Inc. (b) 6,500 78,910 Waste Management, Inc. 30,000 790,200 ----------- 869,110 ----------- ================================================================== PRINTING & PUBLISHING (0.6%) American Greetings Corp. Class A 5,000 88,750 Donnelley (R.R.) & Sons Co. 3,800 121,448 Dow Jones & Co., Inc. 3,200 173,984 Gannett Co., Inc. 13,100 960,230 Knight-Ridder, Inc. 3,200 214,400 McGraw-Hill Cos., Inc. (The) 9,500 607,905 Meredith Corp. 1,500 64,230 New York Times Co. (The) Class A 7,500 349,200 Tribune Co. 13,157 581,145 ----------- 3,161,292 ----------- ================================================================== RAILROADS (0.4%) Burlington Northern Santa Fe Corp. 18,700 514,063 CSX Corp. 11,300 408,721 Norfolk Southern Corp. 15,800 338,594 Union Pacific Corp. 12,500 710,000 ----------- 1,971,378 -----------
2002 SEMIANNUAL REPORT 23
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================= NATIONWIDE S & P 500 INDEX FUND (Continued) COMMON STOCKS (continued) ================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= REAL ESTATE INVESTMENT TRUSTS (0.3%) Equity Office Properties Trust 21,100 $ 604,093 Equity Residential Property 13,100 369,420 Plum Creek Timber Co., Inc. 9,200 280,140 ----------- 1,253,653 ----------- ================================================================= RESTAURANTS (0.5%) Darden Restaurants, Inc. 6,200 247,380 McDonald's Corp. 59,400 1,686,960 Tricon Global Restaurants, Inc. (b) 7,000 441,420 Wendy's International, Inc. 5,400 201,960 ----------- 2,577,720 ----------- ================================================================= RETAIL (6.1%) Autozone, Inc. (b) 5,300 402,800 Bed Bath & Beyond, Inc. (b) 14,800 550,116 Best Buy Co., Inc. (b) 9,700 721,195 Big Lots, Inc. 2,500 38,650 Circuit City Stores-Circuit City Group 10,700 230,692 Costco Wholesale Corp. (b) 22,400 900,480 CVS Corp. 17,800 595,944 Dillard's, Inc. Class A 5,200 127,348 Dollar General Corp. 13,110 206,483 Family Dollar Stores, Inc. 8,600 297,560 Federated Department Stores, Inc. (b) 7,800 309,894 Gap, Inc. (The) 39,100 551,701 Home Depot, Inc. 111,250 5,158,663 Jones Apparel Group, Inc. (b) 6,300 245,385 Kohl's Corp. (b) 16,300 1,201,310 Limited, Inc. (The) 23,900 457,924 Lowe's Cos., Inc. 36,000 1,522,440 May Department Stores Co. (The) 12,500 433,500 Nordstrom, Inc. 5,000 117,300 Office Depot, Inc. (b) 15,400 294,756 Penney (J.C.) Co., Inc. 13,600 295,664 Sears, Roebuck & Co. 16,200 854,550 Staples, Inc. (b) 22,600 451,322 Starbucks Corp. (b) 18,800 429,016 Target Corp. 41,900 1,828,935 Tiffany & Co. 5,800 230,550 TJX Cos., Inc. (The) 13,500 588,330 Toys 'R' Us, Inc. (b) 10,000 172,700 Wal-Mart Stores, Inc. 211,600 11,819,976 ----------- 31,035,184 ----------- ================================================================= RETAIL / FOOD & DRUG (0.9%) Albertson's, Inc. 20,634 692,064 Kroger Co. (b) 38,300 872,091 Safeway, Inc. (b) 24,800 1,040,360 Supervalu, Inc. 4,500 135,000 Walgreen Co. 47,500 1,794,075 Winn-Dixie Stores, Inc. 4,600 79,810 ----------- 4,613,400 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= SEMICONDUCTORS (0.8%) Advanced Micro Devices, Inc. (b) 17,400 $ 194,532 Analog Devices, Inc. (b) 16,700 617,232 Applied Materials, Inc. (b) 76,800 1,867,776 Micron Technology, Inc. (b) 27,700 656,490 Novellus Systems, Inc. (b) 7,400 350,760 Vitesse Semiconductor Corp. (b) 12,700 75,946 ----------- 3,762,736 ----------- ================================================================= SERVICES (0.6%) Autodesk, Inc. 6,200 114,018 Deluxe Corp. 3,800 166,744 Equifax, Inc. 5,400 147,528 IMS Health, Inc. 12,800 263,808 Omnicom Group 9,300 811,331 Paychex, Inc. 18,775 700,871 Robert Half International, Inc. (b) 6,800 178,568 Ryder System, Inc. 4,100 116,276 Sabre Holdings, Inc. (b) 5,517 256,541 TMP Worldwide, Inc. (b) 6,000 181,020 ----------- 2,936,705 ----------- ================================================================= STEEL (0.1%) Allegheny Teledyne, Inc. 2,200 37,136 Nucor Corp. 4,200 245,490 Worthington Industries, Inc. 2,800 41,440 ----------- 324,066 ----------- ================================================================= TECHNOLOGY (0.0%) Comverse Technology, Inc. (b) 11,100 133,533 ----------- ================================================================= TELECOMMUNICATIONS (3.2%) ADC Telecommunications, Inc. (b) 39,193 152,461 ALLTEL Corp. 14,000 693,000 Andrew Corp. (b) 5,200 86,268 AT&T Corp. 168,034 2,204,606 AT&T Wireless Services, Inc. (b) 124,599 1,115,161 BellSouth Corp. 89,100 2,704,185 CenturyTel, Inc. 6,200 171,740 Nextel Communications, Inc. (b) 41,700 229,767 QUALCOMM, Inc. (b) 35,700 1,076,712 Qwest Communications International, Inc. 82,611 415,533 SBC Communications, Inc. 159,141 4,942,919 Scientific-Atlanta, Inc. 7,900 158,000 Sprint Corp. (FON Group) 43,000 681,550 Sprint Corp. (PCS Group) (b) 45,600 511,176 Univision Communications, Inc. (b) 10,200 407,592 Worldcom, Inc. (b) 135,344 335,518 ----------- 15,886,188 -----------
2002 SEMIANNUAL REPORT 24
COMMON STOCKS (continued) =============================================================== SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== TIRE & RUBBER (0.0%) Cooper Tire & Rubber Co. 900 $ 22,320 Goodyear Tire & Rubber Co. 8,800 195,800 ------------ 218,120 ------------ =============================================================== TOBACCO (0.1%) UST, Inc. 9,300 370,140 ------------ =============================================================== UTILITIES (2.4%) AES Corp. (The) (b) 27,665 221,873 Allegheny Energy, Inc. 6,600 276,672 Ameren Corp. 7,700 321,552 American Electric Power Co., Inc. 14,740 675,092 Calpine Corp. (b) 19,600 215,600 Cinergy Corp. 8,100 287,793 CMS Energy Corp. 6,200 120,032 Consolidated Edison, Inc. 8,700 379,233 Constellation Energy Group, Inc. 6,800 217,056 Dominion Resources, Inc. 13,167 874,552 DTE Energy Co. 8,000 362,720 Duke Power Co. 38,800 1,487,205 Edison International (b) 12,600 228,690 Entergy Corp. 11,100 515,040 FirstEnergy Corp. 13,848 461,138 Florida Power & Light, Inc. 8,800 558,712 NiSource, Inc. 8,627 190,657 PG&E Corp. (b) 16,000 376,000 Pinnacle West Capital Corp. 2,800 122,696 PP&L Resources, Inc. 7,500 285,825 Progress Energy, Inc. 9,500 492,955 Public Service Enterprise Group, Inc. 10,700 495,945 Reliant Energy, Inc. 12,300 312,174 Southern Co. 31,400 890,190 TECO Energy, Inc. 7,700 214,368 TXU Corp. 13,400 729,228 Xcel Energy, Inc. 19,310 491,053 ------------ 11,804,051 ------------ TOTAL COMMON STOCKS 466,658,253 ------------ PREFERRED STOCKS (0.0%) =============================================================== CONSUMER NON-DURABLE (0.0%) Alberto Culver Co. Class B 1,600 87,312 ------------ TOTAL PREFERRED STOCKS 87,312 ------------ U.S. TREASURY BILLS (0.9%) =============================================================== 1.72%, 6/20/02 (c) 4,470,000 4,459,831 ------------ TOTAL U.S.TREASURY BILLS 4,459,831 ------------
REPURCHASE AGREEMENT (5.5%) ============================================================================ SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $27,207,479 (Fully collateralized by FFCB) $27,206,202 $ 27,206,202 ------------ TOTAL REPURCHASE AGREEMENT 27,206,202 ------------ TOTAL INVESTMENTS (COST $590,701,855) (a) - 99.9% 498,411,598 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.1% 480,086 ------------ NET ASSETS - 100.0% $498,891,684 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 31,896,403 Unrealized depreciation (124,186,660) ------------- Net unrealized depreciation $(92,290,257) ============= Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security. (c) Pledged as collateral for futures. ADR American Depositary Receipt FFCB Federal Farm Credit Note
At April 30, 2002, the Funds open long futures contracts were as follows:
Unrealized Market Value Appreciation Number of Long Covered by (Depreciation) Contracts Contracts Expiration Contracts at 04/30/02 -------------------------------------------------------------------- 113 S&P 500 Index 06/21/02 $ 30,430,900 $ (1,518,847)
SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 25 NATIONWIDE MID CAP MARKET Class A Shares symbol: NMXAX INDEX FUND Class B Shares symbol: NMXBX Institutional Class symbol: NMXIX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning 19.36%* versus 20.04% for the S&P MidCap 400 Index. For the trailing 12 months, the Fund returned 5.69%*, underperforming the Index, which returned 6.58%. For broader comparison purposes, the S&P 500 Index returned 2.31% for the six-month period. WHAT ECONOMIC/MARKET FACTORS INFLUENCED THE PORTFOLIO'S PERFORMANCE? The fourth quarter of 2001 was characterized by tremendous market rebounds from the record-setting lows of the third quarter. This was mainly due to the Federal Reserve cutting interest rates three consecutive times in the third quarter to a 40- year low of 1.75%. The first quarter of 2002 was a rather uneventful and quiet period during which the markets saw mixed sentiments regarding the prospects for the economy. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? The S&P 400 Index posted an impressive positive return, and the MidCap Value Index outperformed the MidCap Growth Index. Sector "flip-flops" occurred throughout the six-month period as technology led the gain in the fourth quarter of 2001, but could not sustain that growth in the first quarter of 2002 - coming in as the third-worst-performing sector. The technology sector's downward trend continued into the second quarter of 2002. With technology's decline, producer durables proved to be the leading sector during the fourth quarter of 2001, as well as the first quarter of 2002. HOW IS THE FUND POSITIONED? It appears that an economic recovery is well on its way. Nevertheless, many issues will affect which direction the economy will turn. The market is expected to continue to be choppy and rotational. However, with a proactive and efficient Federal Reserve Board working to stimulate growth, the outlook for the markets remains favorable. With that in mind, the portfolio is expected to continue to meets its objectives of replicating the risk and returns of the benchmark index. PORTFOLIO MANAGER: FUND ASSET MANAGEMENT, L.P. - SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $70,506,473 APRIL 30, 2002
YEARS 1 INCEPTION(1) ============================================== Class A w/o SC(2) 5.69% 9.52% w/SC(3) -0.39% 6.78% ---------------------------------------------- Class B(4) w/o SC(2) 4.76% 9.10% w/SC(5) -0.24% 7.95% ---------------------------------------------- Institutional Class(6) 6.29% 10.10% ----------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Commenced operations on December 29, 1999. 2 These returns do not reflect the effects of sales charges (SC). 3 A 5.75% front-end sales charge was deducted. 4 These returns include performance based on Class A shares, which was achieved prior to the creation of Class B shares (5/25/01). These returns have been restated for sales charges but not for fees applicable to Class B shares, which include a 1.00% 12b-1 fee. Had Class B been in existence for the time periods presented, the performance of Class B would have been lower as a result of the additional expense. 5 A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years. 6 Not subject to any sales charges. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPH OMITTED]
S&P Date Class A Midcap 400 CPI 29-Dec-99 9425 10000 10000 31-Oct-00 11170 11807 10339 31-Oct-01 9766 10337 10559 30-Apr-02 11657 12406 10675
Comparative performance of $10,000 invested in Class A shares of the Nationwide Mid Cap Market Index Fund, the S&P MidCap 400 Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The S&P MidCap 400 Index consists of 400 stocks designed to measure performance of the mid cap company economy through changes in the aggregate market value of these 400 stocks which represent all major industries. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 26
STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) =============================================================== NATIONWIDE MID CAP MARKET INDEX FUND COMMON STOCKS (89.4%) =============================================================== SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== AEROSPACE / DEFENSE (0.2%) Precision Castparts Corp. 3,800 $ 134,406 Sequa Corp. (b) 500 29,625 ---------- 164,031 ---------- =============================================================== AGRICULTURAL PRODUCTS (0.8%) R.J. Reynolds Tobacco Holdings, Inc. 6,700 463,640 Universal Corp. 1,700 72,267 ---------- 535,907 ---------- =============================================================== AIRLINES (0.1%) Alaska Air Group, Inc. (b) 1,900 58,197 ---------- =============================================================== AMUSEMENT & RECREATION (0.5%) Callaway Golf Co. 5,300 93,280 International Speedway Corp. 3,600 154,800 Six Flags, Inc. (b) 6,200 113,460 ---------- 361,540 ---------- =============================================================== AUTO PARTS & EQUIPMENT (1.3%) Arvinmeritor, Inc. 4,600 145,820 Bandag, Inc. 1,300 50,154 BorgWarner Automotive, Inc. 1,900 118,712 Gentex Corp. (b) 5,500 174,130 Lear Corp. (b) 4,700 241,627 Modine Manufacturing Co. 2,200 64,724 Superior Industries International, Inc. 1,800 92,826 ---------- 887,993 ---------- =============================================================== BANKS (9.0%) Associated Banc Corp. 4,994 187,075 Astoria Financial Corp. 6,700 215,003 Banknorth Group, Inc. 10,927 288,364 City National Corp. 3,500 193,375 Colonial Bancgroup, Inc. 7,800 124,800 Compass Bancshares, Inc. 9,200 329,084 First Tennessee National Corp. 9,100 351,806 First Virginia Banks, Inc. 3,300 188,859 FirstMerit Corp. 5,800 164,720 Golden State Bancorp, Inc. 9,400 310,106 Greater Bay Bancorp 3,700 123,913 GreenPoint Financial Corp. 7,200 356,040 Hibernia Corp. 11,000 219,450 Independence Community Bank Corp. 4,000 130,360 IndyMac Bancorp, Inc. (b) 4,100 103,525 M&T Bank Corp. 6,600 563,508 Mercantile Bankshare Corp. 5,100 209,916 National Commerce Financial Co. 14,190 397,178 New York Community Bancorp, Inc. 7,400 219,484 North Fork Bancorp, Inc. 11,700 451,854 Provident Financial Group 3,300 99,891 Roslyn Bancorp, Inc. 6,562 151,057 SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== BANKS (continued) Silicon Valley Bancshares (b) 3,400 $ 108,630 Sovereign Bancorp, Inc. 17,700 255,411 TCF Financial Corp. 5,500 286,275 Webster Financial Corp. 3,300 130,779 Westamerica Bank Corp. 2,400 106,200 Wilmington Trust Corp. 2,200 138,908 ---------- 6,405,571 ---------- =============================================================== BIOTECHNOLOGY (2.4%) Gilead Sciences, Inc. (b) 13,600 423,232 Idec Pharmaceuticals Corp. (b) 10,700 587,965 Incyte Pharmaceuticals, Inc. (b) 4,700 38,587 Millennium Pharmaceuticals, Inc. (b) 19,663 392,473 Protein Design Labs, Inc. (b) 6,400 114,944 Vertex Pharmaceuticals, Inc. (b) 5,400 114,858 ---------- 1,672,059 ---------- =============================================================== BROADCASTING (1.1%) Emmis Communications Corp. (b) 3,500 101,745 Entercom Communications Corp. (b) 3,400 177,650 Hispanic Broadcasting Corp. (b) 7,500 201,150 Westwood One, Inc. (b) 7,500 270,000 ---------- 750,545 ---------- =============================================================== BUSINESS SERVICES (2.8%) Acxiom Corp. (b) 6,400 106,432 BISYS Group, Inc. (b) 8,200 280,440 Catalina Marketing Corp. (b) 3,800 133,342 Ceridian Corp. (b) 10,100 225,028 Checkfree Corp. (b) 5,700 116,052 CSG Systems International, Inc. (b) 3,900 102,258 DST Systems, Inc. (b) 8,400 415,128 Gartner Group, Inc. (b) 5,700 66,690 Harte-Hanks, Inc. 4,300 138,116 Kelly Services 2,400 69,550 Korn/Ferry International (b) 1,800 18,900 Manpower, Inc. 5,500 221,375 MPS Group, Inc. (b) 6,600 59,400 ---------- 1,952,711 ---------- =============================================================== CHEMICALS (2.2%) Airgas, Inc. (b) 4,800 79,152 Albemarle Corp. 3,100 91,915 Cabot Corp. 4,200 125,160 Crompton Corp. 7,700 92,785 Cytec Industries, Inc. (b) 2,700 89,073 Ferro Corp. 2,200 62,304 FMC Corp. (b) 2,200 85,140 Fuller (H. B.) Co. 1,600 49,776 IMC Global, Inc. 7,800 98,280 Lubrizol Corp. 3,400 117,232
2002 SEMIANNUAL REPORT 27 STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ===============================================================
NATIONWIDE MID CAP MARKET INDEX FUND (continued) COMMON STOCKS (continued) =============================================================== SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== CHEMICALS (continued) Lyondell Chemical Co. 8,600 $ 127,108 Minerals Technologies, Inc. 1,300 65,000 Olin Corp. 3,200 58,272 RPM, Inc. 8,200 138,990 Schulman (A), Inc. 2,200 44,660 Solutia, Inc. 6,600 55,176 Valspar Corp. 3,400 156,570 ---------- 1,536,593 ---------- =============================================================== COMMUNICATION EQUIPMENT (2.2%) Adtran, Inc. (b) 2,700 67,122 Advanced Fibre Communications, Inc. (b) 6,000 106,440 Broadwing, Inc. (b) 15,900 104,940 CommScope, Inc. (b) 4,200 66,696 Harris Corp. 4,600 166,566 L-3 Communications Holdings, Inc. (b) 2,800 357,784 Plantronics, Inc. (b) 2,900 61,074 Polycom, Inc. (b) 7,200 148,464 Powerwave Technologies, Inc. (b) 4,500 53,730 Price Communications Corp. (b) 3,700 62,197 Telephone & Data Systems, Inc. 4,100 352,600 ---------- 1,547,613 ---------- =============================================================== COMPUTER HARDWARE (1.7%) Infocus Corp. (b) 2,800 36,232 Keane, Inc. (b) 5,100 79,764 National Instruments Corp. (b) 3,500 134,505 Quantum Corp. (b) 10,600 77,910 SanDisk Corp. (b) 4,600 75,256 Storage Technology Corp. (b) 7,600 156,408 SunGard Data Systems, Inc. (b) 20,000 595,200 Sykes Enterprises, Inc. (b) 2,000 20,560 ---------- 1,175,835 ---------- =============================================================== COMPUTER SOFTWARE & SERVICES (5.4%) 3COM Corp. (b) 24,400 140,788 Activision, Inc. (b) 3,900 122,772 Advent Software, Inc. (b) 2,500 123,450 Affiliated Computer Services, Inc. (b) 9,400 508,258 Ascential Software Corp. (b) 17,500 60,200 Avocent Corp. (b) 3,000 75,000 Cadence Design Systems, Inc. (b) 17,100 350,208 Electronic Arts, Inc. (b) 9,700 572,785 Henry (Jack) & Associates, Inc. 6,500 151,320 Internet Security, Inc. (b) 3,600 70,560 Investment Technology Group, Inc. (b) 3,507 161,322 Legato Systems, Inc. (b) 6,300 43,470 Macromedia, Inc. (b) 4,000 89,560 Macrovision Corp. (b) 3,400 75,582 McDATA Corp. (b) 8,400 57,036 Mentor Graphics Corp. (b) 4,300 82,990 SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== COMPUTER SOFTWARE & SERVICES (continued) Network Associates, Inc. (b) 9,800 $ 173,950 Retek, Inc. (b) 3,500 82,597 RSA Security, Inc. (b) 4,100 25,010 Sybase, Inc. (b) 6,800 95,608 Symantec Corp. (b) 10,000 354,100 Synopsys, Inc. (b) 4,400 198,484 The Titan Corp. (b) 5,170 118,186 Transaction Systems Architects, Inc. (b) 1,700 19,720 Wind River Systems, Inc. (b) 5,300 57,717 ---------- 3,810,673 ---------- =============================================================== CONSTRUCTION (1.1%) Clayton Homes, Inc. 9,400 160,740 Dycom Industries, Inc. (b) 2,700 40,851 Granite Construction, Inc. 2,900 67,019 Jacobs Engineering Group, Inc. (b) 4,000 157,840 Lennar Corp. 4,600 255,484 Martin Marietta Materials, Inc. 3,300 128,568 ---------- 810,502 ---------- =============================================================== CONSUMER & COMMERCIAL SERVICES (2.6%) Apollo Group, Inc. (b) 12,300 471,582 ChoicePoint, Inc. (b) 4,550 252,252 DeVry, Inc. (b) 4,800 127,152 Dun & Bradstreet Corp. (b) 5,100 196,401 Education Management Corp. (b) 2,400 103,488 NCO Group, Inc. (b) 1,800 50,112 Pittston Brink's Group 3,700 101,824 Quanta Services, Inc. (b) 3,700 62,012 Rollins, Inc. 1,500 30,300 Sotheby's Holdings, Inc. (b) 4,100 60,434 Sylvan Learning Systems, Inc. (b) 2,700 74,520 United Rentals, Inc. (b) 5,300 135,150 Viad Corp. 6,100 185,928 ---------- 1,851,155 ---------- =============================================================== CONSUMER PRODUCTS (1.6%) Blyth Industries, Inc. 3,300 98,175 Church & Dwight, Inc. 2,400 68,640 Dial Corp. 7,000 146,860 Energizer Holdings, Inc. (b) 6,200 148,180 Furniture Brands International, Inc. (b) 4,000 163,320 Lancaster Colony Corp. 2,500 96,250 Mohawk Industries Co. (b) 4,700 302,351 Timberland Co., Class A (b) 2,700 110,160 ---------- 1,133,936 ---------- =============================================================== CONTAINERS / PACKAGING (0.5%) Packaging Corporation of America (b) 7,200 142,200 Sonoco Products Co. 6,600 190,740 ---------- 332,940 ----------
2002 SEMIANNUAL REPORT 28
COMMON STOCKS (CONTINUED) ==================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== ELECTRONICS (5.8%) Arrow Electronics, Inc. (b) 6,900 $ 182,160 Atmel Corp. (b) 32,600 293,400 Avnet, Inc. 8,598 220,281 Cabot Microelectronics Corp. (b) 1,768 86,455 Cirrus Logic, Inc. (b) 6,100 74,115 Credence Systems Corp. (b) 4,100 82,984 Cree, Inc. (b) 4,988 58,809 Cypress Semiconductor Corp. (b) 8,400 187,068 DSP Group, Inc. (b) 2,000 42,440 FEI Co. (b) 2,200 58,146 Hubbell, Inc. 4,000 137,720 Integrated Device Technology, Inc. (b) 7,300 204,692 International Rectifier Corp. (b) 4,400 202,928 Kemet Corp. (b) 5,900 114,283 Lam Research Corp. (b) 8,800 225,808 Lattice Semiconductor Corp. (b) 7,900 93,615 LTX Corp. (b) 3,300 69,993 Micrel, Inc. (b) 6,700 147,065 Microchip Technology, Inc. (b) 9,275 412,737 MIPS Technologies, Inc. (b) 2,300 13,041 Newport Corp. 2,600 53,326 Plexus Corp. (b) 2,900 72,471 RF Micro Devices, Inc. (b) 11,700 203,580 Semtech Corp. (b) 4,900 156,702 SPX Corp. (b) 2,800 377,019 TriQuint Semiconductor, Inc. (b) 9,505 96,381 Vishay Intertechnology, Inc. (b) 11,050 242,990 ---------- 4,110,209 ---------- ==================================================================== ENVIRONMENTAL SERVICES (0.3%) Republic Services, Inc. (b) 11,700 231,660 ---------- ==================================================================== FINANCIAL SERVICES (4.0%) Americredit Corp. (b) 5,900 229,038 Bank of Hawaii Corp. 5,200 148,096 Certegy, Inc. (b) 4,700 182,360 Commerce Bancorp, Inc. 4,800 237,072 E*TRADE Group, Inc. (b) 26,000 196,040 Eaton Vance Corp. 4,800 175,344 Edwards (A.G.), Inc. 5,800 237,336 Investors Financial Services Corp. 2,142 157,737 Labranche & Co., Inc. (b) 4,000 109,600 Legg Mason, Inc. 4,900 246,176 Metris Cos., Inc. 4,300 56,072 Neuberger Berman, Inc. 4,900 212,905 PMI Group, Inc. 3,200 259,584 SEI Corp. 7,500 252,675 Waddell & Reed Financial, Inc. 5,500 141,625 ---------- 2,841,660 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== FOOD & BEVERAGE (2.9%) Dean Foods Co. (b) 6,372 $ 235,891 Dole Food Co. 4,100 136,407 Dreyer's Grand Ice Cream, Inc. 2,400 111,984 Hormel Foods Corp. 9,600 237,120 Interstate Bakeries Corp. 3,000 74,100 McCormick & Co., Inc. 10,000 256,400 PepsiAmericas, Inc. 10,700 163,175 Sensient Technologies Corp. 3,300 82,467 Smithfield Foods, Inc. (b) 7,700 162,470 Smucker (J.M.) Co. 1,600 55,520 Tootsie Roll Industries, Inc. 3,602 168,826 Tyson Foods, Inc. 25,390 355,968 ---------- 2,040,328 ---------- ==================================================================== GAMING (0.8%) GTECH Holdings Corp. (b) 2,000 119,820 Mandalay Resort Group (b) 5,200 186,472 Park Place Entertainment, Inc. (b) 20,800 255,840 ---------- 562,132 ---------- ==================================================================== HEALTHCARE (7.7%) Apogent Technologies, Inc. (b) 7,700 178,640 Apria Healthcare Group, Inc. (b) 3,700 96,163 Barr Laboratories, Inc. (b) 3,100 206,615 Beckman Coulter, Inc. 4,500 214,965 Covance, Inc. (b) 4,100 82,287 Cytyc Corp. (b) 8,700 136,677 Dentsply International, Inc. 5,700 226,119 Edwards Lifesciences Corp. (b) 4,000 100,480 Express Scripts, Inc. (b) 5,700 360,297 First Health Group Corp. (b) 7,200 208,800 Health Net, Inc. (b) 8,600 254,990 ICN Pharmaceuticals, Inc. 5,900 163,194 IVAX Corp. (b) 13,675 161,365 LifePoint Hospitals, Inc. (b) 2,700 113,400 Lincare Holdings, Inc. (b) 7,800 245,544 Mylan Laboratories, Inc. 9,100 240,968 Omnicare, Inc. 6,400 171,136 Oxford Health Plans, Inc. (b) 6,100 281,576 PacifiCare Health Systems, Inc. (b) 2,500 75,650 Patterson Dental Co. (b) 4,900 225,890 Perrigo Co. (b) 5,100 63,648 Quest Diagnostics, Inc. (b) 6,800 625,124 Schein (Henry), Inc. (b) 3,100 147,529 Sepracor, Inc. (b) 5,800 73,428 Steris Corp. (b) 4,700 104,105 Triad Hospitals, Inc. (b) 5,233 219,786 Trigon Healthcare, Inc. (b) 2,600 261,716 Universal Health Services, Inc. (b) 4,300 200,165 Visx, Inc. (b) 3,700 60,569 ---------- 5,500,826 ----------
2002 SEMIANNUAL REPORT 29
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================= NATIONWIDE MID CAP MARKET INDEX FUND (Continued) COMMON STOCKS (CONTINUED) ================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= HOTELS & LODGING (0.1%) Extended Stay America, Inc. (b) 6,300 $ 105,210 ---------- ================================================================= INSURANCE (3.7%) Allmerica Financial Corp. 3,800 189,658 American Financial Group, Inc. 4,600 136,574 Everest Re Group Ltd. 3,700 251,230 Fidelity National Financial, Inc. 6,200 191,270 Gallagher (Arthur J.) & Co. 6,200 223,820 HCC Insurance Holdings, Inc. 4,100 106,600 Horace Mann Educators Corp. 2,700 64,665 Leucadia National Corp. 3,800 138,510 Mony Group, Inc. 3,200 124,800 Ohio Casualty Corp. (b) 4,200 81,144 Old Republic International Corp. 8,600 285,778 Protective Life Corp. 4,600 146,556 Radian Group, Inc. 6,700 347,730 Stancorp Financial Group, Inc. 2,000 117,000 Unitrin, Inc. 4,600 191,682 ---------- 2,597,017 ---------- ================================================================= MACHINERY (0.3%) AGCO Corp. 5,300 120,416 Kaydon Corp. 1,900 54,131 Tecumseh Products Co. 1,200 62,352 ---------- 236,899 ---------- ================================================================= MANUFACTURING (3.0%) Albany International Corp. 2,200 55,396 American Standard Co. (b) 5,100 380,970 Ametek, Inc. 2,200 85,206 Carlisle Cos., Inc. 2,000 80,980 Diebold, Inc. 5,200 196,664 Donaldson Co., Inc. 3,000 129,450 Federal Signal Corp. 3,000 69,000 Flowserve Corp. (b) 3,700 127,650 Harsco Corp. 2,700 114,750 Hillenbrand Industry, Inc. 4,300 277,780 Nordson Corp. 2,200 68,156 Pentair, Inc. 3,600 174,816 Stewart & Stevenson Services, Inc. 2,100 39,669 Teleflex, Inc. 2,600 146,926 Trinity Industries, Inc. 3,100 72,850 York International Corp. 2,700 98,307 ---------- 2,118,570 ---------- ================================================================= METALS (0.4%) AK Steel Holding Corp. 8,000 98,080 Carpenter Technology Corp. 1,400 37,100 Kennametal, Inc. 2,200 87,252 UCAR International, Inc. (b) 3,100 40,300 ---------- 262,732 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= MINING (0.1%) Arch Coal, Inc. 3,600 $ 79,920 ---------- ================================================================= OFFICE EQUIPMENT & SUPPLIES (0.7%) HON Industries, Inc. 3,970 118,782 Miller (Herman), Inc. 5,600 136,808 Reynolds & Reynolds Co. 5,100 147,696 Wallace Computer Services, Inc. 2,600 56,550 ---------- 459,836 ---------- ================================================================= OIL & GAS (6.1%) B.J. Services Co. (b) 10,900 400,466 Cooper Cameron Corp. (b) 3,940 216,070 ENSCO International, Inc. 9,800 330,848 FMC Technologies, Inc. (b) 4,007 91,159 Forest Oil Corp. (b) 3,100 97,650 Grant Prideco, Inc. (b) 7,500 120,000 Hanover Compressor Co. (b) 4,300 81,055 Helmerich & Payne, Inc. 3,700 152,477 Murphy Oil Corp. 3,300 311,355 National-Oilwell, Inc. (b) 5,600 148,792 Noble Affiliates, Inc. 4,200 164,010 Ocean Energy, Inc. 12,400 265,360 Patterson-UTI Energy, Inc. (b) 5,500 176,000 Pennzoil-Quaker State Co. 5,800 125,338 Pioneer Natural Resources Co. (b) 7,600 182,324 Pride International, Inc. (b) 9,700 180,323 Smith International, Inc. (b) 3,600 252,180 Tidewater, Inc. 4,400 191,400 Valero Energy Corp. 7,600 328,016 Varco International, Inc. (b) 6,452 132,201 Weatherford International, Inc. (b) 8,000 398,960 ---------- 4,345,984 ---------- ================================================================= PAPER & FOREST PRODUCTS (0.7%) Bowater, Inc. 4,000 190,720 Glatfelter (P.H.) & Co. 2,700 47,331 Longview Fibre Co. 2,400 24,120 Potlatch Corp. 2,000 69,040 Rayonier, Inc. 1,900 111,473 Wausau-Mosinee Paper Corp. 2,700 35,127 ---------- 477,811 ---------- ================================================================= PHOTOGRAPHY / IMAGING (0.1%) Imation Corp. (b) 2,300 69,207 ---------- ================================================================= PUBLISHING & PRINTING (1.9%) Banta Corp. 1,600 60,160 Belo (A.H.) Corp. 7,300 170,528 Lee Enterprises, Inc. 3,000 117,750 Media General, Inc. 1,700 116,654 Readers Digest Association 7,000 166,600
2002 SEMIANNUAL REPORT 30
COMMON STOCKS (CONTINUED) ============================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== PUBLISHING & PRINTING (continued) Scholastic Corp. (b) 2,600 $ 131,898 Valassis Communications, Inc. (b) 3,700 138,343 Washington Post Co. 661 417,620 ----------- 1,319,553 ----------- ============================================================================== REAL ESTATE INVESTMENT TRUSTS (0.4%) Hospitality Properties Trust 4,600 156,400 New Plan Excel Realty Trust 6,900 134,895 ----------- 291,295 ----------- ============================================================================== RESTAURANTS (1.1%) Bob Evans Farms, Inc. 2,500 76,000 Brinker International, Inc. (b) 7,050 242,802 CBRL Group, Inc. 4,100 124,435 Cheesecake Factory, Inc. (The) (b) 2,700 112,401 Outback Steakhouse, Inc. (b) 5,100 178,857 Papa John's International, Inc. (b) 1,700 52,870 ----------- 787,365 ----------- ============================================================================== RETAIL (5.2%) 99 Cents Only Stores (b) 4,533 140,886 Abercrombie & Fitch Co. (b) 7,133 213,990 American Eagle Outfitters Ltd. (b) 5,217 132,668 Barnes & Noble, Inc. (b) 4,900 148,078 BJ's Wholesale Club, Inc. (b) 5,200 232,076 Borders Group, Inc. (b) 5,300 123,543 CDW Computer Centers, Inc. (b) 6,300 345,240 Claire's Stores, Inc. 3,300 71,214 Coach, Inc. (b) 3,251 182,056 Copart, Inc. (b) 6,600 101,574 Dollar Tree Stores, Inc. (b) 8,050 307,027 Fastenal Co. 2,700 225,828 Lands End, Inc. (b) 2,000 100,580 Longs Drug Stores Corp. 2,600 78,624 Michael's Stores, Inc. (b) 4,900 198,205 Nieman Marcus Group, Inc. (b) 3,300 120,813 Payless Shoesource, Inc. (b) 1,705 99,811 Ross Stores, Inc. 5,700 231,477 Ruddick Corp. 2,500 42,700 Saks, Inc. (b) 9,800 145,726 Tech Data Corp. (b) 4,000 189,360 Williams Sonoma, Inc. (b) 4,100 236,201 ----------- 3,667,677 ----------- ============================================================================== SEMICONDUCTORS (0.3%) Fairchild Semiconductor International, Inc. (b) 6,900 185,886 ----------- ============================================================================== SHELTER (0.4%) D. R. Horton, Inc. 10,250 264,450 ----------- SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== SHIPPING / TRANSPORTATION (1.6%) Airborne, Inc. 3,400 $ 70,516 Alexander & Baldwin, Inc. 2,900 78,793 Atlas Air, Inc. (b) 2,900 36,163 CNF Transportation, Inc. 3,600 113,796 EGL, Inc. (b) 3,400 58,310 Expeditors International of Washington, Inc. 3,700 214,119 GATX Corp. 3,600 115,272 J.B. Hunt Transport Services, Inc. (b) 2,500 65,475 Overseas Shipholding Group, Inc. 1,900 43,396 Robinson (C.H.) Worldwide, Inc. 5,800 182,526 Swift Transportation Co., Inc. (b) 6,200 120,590 ----------- 1,098,956 ----------- ============================================================================== TEXTILES / APPAREL (0.0%) Unifi, Inc. (b) 2,800 31,388 ----------- ============================================================================== UTILITIES (6.3%) AGL Resources, Inc. 3,400 81,396 Allete, Inc. 5,571 170,138 Alliant Energy Corp. 6,400 180,800 American Water Works, Inc. 7,200 314,641 Aquila, Inc. 10,237 164,201 Black Hills Corp. 1,700 59,262 Cleco Corp. 2,900 71,862 Conectiv, Inc. 6,000 149,640 DPL, Inc. 8,770 228,195 DQE, Inc. 3,900 76,128 Energy East Corp. 8,000 175,920 Equitable Resources, Inc. 4,700 168,965 Great Plains Energy, Inc. 4,200 98,658 Hawaiian Electric Industries, Inc. 2,600 122,824 Idacorp, Inc. 2,800 105,952 MDU Resources Group, Inc. 4,800 139,824 National Fuel Gas Co. 5,400 128,628 Northeast Utilities 9,600 192,000 NSTAR 3,600 164,880 Oklahoma Gas & Electric Co. 5,800 137,170 ONEOK, Inc. 4,000 87,440 PNM, Inc. 2,700 78,300 Potomac Electric Power Co. 7,900 180,594 Puget Energy, Inc. 6,400 132,672 Questar Corp. 6,000 167,400 Scana Corp. 7,579 242,149 Sierra Pacific Resources 7,000 49,630 Vectren, Inc. 4,600 114,724 Western Gas Resources, Inc. 2,300 88,688 Western Resources, Inc. 4,950 86,081 WGL Holdings, Inc. 3,200 86,720 Wisconsin Energy Corp. 7,700 200,200 WPS Resources Corp. 2,200 91,630 ----------- 4,537,312 ----------- TOTAL COMMON STOCKS 63,211,684 -----------
2002 SEMIANNUAL REPORT 31 STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) =============================================================================== NATIONWIDE MID CAP MARKET INDEX FUND (Continued) U.S. TREASURY BILL (0.8%) =============================================================================== SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== U.S. TREASURY BILL (0.8%) 1.72%, 06/20/02 (c) $ 535,000 $ 533,783 ------------ TOTAL U.S. GOVERNMENT OBLIGATIONS 533,783 ------------ WARRANTS (0.0%) =============================================================================== BANKS (0.0%) Dime Bancorp, Inc. 1,500 225 ------------ TOTAL WARRANTS 225 ------------ REPURCHASE AGREEMENT (9.6%) =============================================================================== SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $6,761,098 (Fully collateralized by Freddie Mac Securities) $ 6,760,781 $ 6,760,781 ------------ TOTAL REPURCHASE AGREEMENT 6,760,781 ------------ TOTAL INVESTMENTS (COST $65,294,516) (A) -- 99.8% 70,506,473 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% 109,236 ------------ NET ASSETS 100.0% $ 70,615,709 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 8,241,707 Unrealized depreciation (3,029,750) ------------ Net unrealized appreciation $ 5,211,957 ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security. (c) Pledged as collateral for futures. At April 30, 2002, the Funds open long futures contracts were as follows: Unrealized Market Value Appreciation Number of Long Covered by (Depreciation) Contracts Contract Expiration Contracts at 04/30/02 -------------------------------------------------------------- 21 S&P 400 06/14/02 $ 5,657,925 $ (39,295) SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 32 NATIONWIDE SMALL CAP Class A Shares symbol: NSXAX INDEX FUND Class B Shares symbol: NSCBX Institutional Class symbol: NSXIX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning 18.94%* versus 20.03% for the Russell 2000 Index. For the trailing 12 months, the Fund returned 5.40%*, underperforming the Index, which returned 6.68%. For broader comparison purposes, the S&P 500 Index returned 2.31% during the six-month period. WHAT ECONOMIC/MARKET FACTORS INFLUENCED THE PORTFOLIOS PERFORMANCE? The fourth quarter of 2001 saw tremendous market rebounds from the record-setting lows of the third quarter, with the greatest gains recorded in November. This was mainly due to the Federal Reserve cutting interest rates three consecutive times in the third quarter to a 40-year low of 1.75%. The first quarter of 2002 was a rather uneventful and quiet period during which the markets saw mixed sentiments regarding the future of the economy. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? Mid-cap and small-cap stocks outperformed, as a result of investors bias to companies that should benefit from an economic rebound. Sector flip-flops occurred throughout the period as technology led the gain in the fourth quarter of 2001 with a massive return of nearly 34%. However, this leadership did not continue in the first quarter of 2002 when technology came in as the third-worst-performing sector with a return of nearly -9.00%. The technology sectors downward trend continued into the second quarter of 2002. With technologys decline, producer durables proved to be leading sector with a return of 25% for the fourth quarter of 2001, a growth trend that has continued into the second quarter. HOW IS THE FUND POSITIONED? It appears that an economic recovery is well on its way. Nevertheless, many current issues and factors will affect which direction the economy will turn. The market is expected to continue to be choppy. However, as the Federal Reserve works to stimulate growth, the outlook for the markets remains favorable. With that in mind, the portfolio is expected to continue to meets its objectives of replicating the risk and returns of the benchmark index. PORTFOLIO MANAGER: FUND ASSET MANAGEMENT, L.P. - SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $34,442,531 APRIL 30, 2002 AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 5 INCEPTION(1) ========================================================== Class A w/o SC(2) 5.40% 9.02% 8.80% w/SC(3) -0.70% 7.73% 7.54% ---------------------------------------------------------- Class B(4) w/o SC(2) 5.10% 8.96% 8.74% w/SC(5) 0.10% 8.67% 8.46% ---------------------------------------------------------- Institutional Class6 6.15% 9.30% 9.08% ---------------------------------------------------------- All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Commenced operations on December 29, 1999 and from that date until October 15, 2001, the Fund invested all of its assets in the Master Small Cap Series (the Series). The returns shown above include the performance of the Series from its inception on April 9, 1997 through December 29, 1999 and are not adjusted for the Fund's higher expenses and, therefore, the Fund's actual returns would have been lower. 2 These returns do not reflect the effects of sales charges (SC). 3 A 5.75% front-end sales charge was deducted. 4 These returns include performance based on Class A shares, which was achieved prior to the creation of Class B shares (11/29/01). These returns have been restated for sales charges but not for fees applicable to Class B shares, which include a 1.00% 12b-1 fee. Had Class B been in existence for the time periods presented, the performance of Class B would have been lower as a result of the additional expense. 5 A 5.00% maximum contingent deferred sales charge (CDSC) would be deducted. The CDSC declines to 0% after 6 years. 6 Not subject to any sales charges. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPHIC OMITTED]
Date Class A Russell 2000 CPI 9-Apr-97 9425 10000 10000 31-Oct-97 11923 12764 10100 31-Oct-98 10566 11253 10250 31-Oct-99 12150 12926 10513 31-Oct-00 13948 15176 10875 31-Oct-01 12142 13248 11106 30-Apr-02 14440 15902 11229
Comparative performance of $10,000 invested in Class A shares of the Nationwide Small Cap Index Fund, the Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The Russell 2000 is comprised of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 33
STATEMENT OF INVESTMENTS APRIL 30, 2002 (Unaudited) ============================================================================ NATIONWIDE SMALL CAP INDEX FUND COMMON STOCKS (85.7%) ============================================================================ SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ ADVERTISING SERVICES (0.3%) Getty Images, Inc. (b) 1,200 $ 41,771 MDC Corp., Inc. 663 33,482 R.H. Donnelley Corp. (b) 1,050 30,891 SITEL Corp. (b) 916 2,501 Ventiv Health, Inc. (b) 2,073 3,566 -------- 112,211 -------- ============================================================================ AEROSPACE / DEFENSE (0.7%) AAR CORP. 423 5,389 BE Aerospace, Inc. (b) 800 10,400 Curtiss-Wright Corp. 414 31,563 DRS Technologies, Inc. (b) 632 29,230 Esterline Technologies Corp. (b) 700 16,275 Gencorp, Inc. 1,189 18,667 Hexcel Corp. (b) 1,500 6,870 Kaman Corp. Class A 458 8,221 Moog, Inc. Class A (b) 500 17,100 Sequa Corp. Class A (b) 241 14,279 Teledyne Technologies, Inc. (b) 1,140 19,380 The Fairchild Corp. Class A (b) 1,982 8,443 The Titan Corp. (b) 2,100 48,007 United Industrial Corp. 500 12,650 -------- 246,474 -------- ============================================================================ AGRICULTURAL PRODUCTS (0.1%) Delta and Pine Land Co. 1,206 23,469 Maui Land & Pineapple Co., Inc. (b) 437 9,352 -------- 32,821 -------- ============================================================================ AIRLINES (0.3%) AirTran Holdings, Inc. (b) 1,500 8,385 Alaska Air Group, Inc. (b) 1,013 31,027 America West Holdings Corp. Class B (b) 559 2,175 Atlantic Coast Airlines Holdings, Inc. (b) 1,363 29,782 Frontier Airlines, Inc. (b) 1,195 18,463 Mesa Air Group, Inc. (b) 1,439 14,246 Mesaba Holdings, Inc. (b) 1,332 11,680 Midwest Express Holdings, Inc. (b) 200 4,000 -------- 119,758 -------- ============================================================================ ANALYTICAL INSTRUMENTS (0.5%) ArthroCare Corp. (b) 545 8,731 Bruker Daltronics, Inc. (b) 1,713 12,796 Datascope Corp. 593 18,650 Diagnostic Products Corp. 767 36,801 Haemonetics Corp. (b) 725 24,027 IDEXX Laboratories, Inc. (b) 1,320 37,593 Illumina, Inc. (b) 200 1,680 Molecular Devices Corp. (b) 539 9,621 Thoratec Corp. (b) 1,200 9,852 Urologix, Inc. (b) 675 9,308 SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ ANALYTICAL INSTRUMENTS (continued) Ventana Medical Systems, Inc. (b) 300 $ 6,816 West Pharmaceutical Services, Inc. 184 5,152 -------- 181,027 -------- ============================================================================ APPAREL / ACCESSORIES (1.0%) bebe stores, inc. (b) 200 4,478 Brown Shoe Co., Inc. 281 5,718 Burlington Coat Factory Warehouse Corp. 325 7,300 Charming Shoppes, Inc. (b) 4,148 35,838 Finish Line, Inc. Class A (b) 967 19,601 Footstar, Inc. (b) 731 21,557 G & K Services, Inc. Class A 739 30,484 Global Sports, Inc. (b) 300 3,885 HOT Topic, Inc. (b) 950 21,432 K-Swiss, Inc. Class A 376 17,210 Kellwood Co. 807 21,991 Nautica Enterprises, Inc. (b) 1,100 15,829 Oxford Industries, Inc. 379 10,896 Pacific Sunwear of California, Inc. (b) 1,000 24,980 Phillips-Van Heusen Corp. 367 5,593 Russell Corp. 686 12,684 Skechers U.S.A., Inc. (b) 500 11,625 Steven Madden Ltd. (b) 479 9,355 The Stride Rite Corp. 735 6,468 The Wet Seal, Inc. (b) 500 17,815 Wilsons The Leather Experts, Inc. (b) 632 8,835 Wolverine World Wide, Inc. 1,385 24,958 -------- 338,532 -------- ============================================================================ APPLIANCES & HOUSEHOLD DURABLES (0.4%) Applica, Inc. (b) 526 5,418 Dial Corp. 3,449 72,360 Fedders Corp. 540 2,079 Ivex Packaging Corp. (b) 976 22,448 Liqui-Box Corp. 200 13,370 National Presto Industries, Inc. 281 9,399 Salton, Inc. (b) 484 8,301 -------- 133,375 -------- ============================================================================ AUTO PARTS & EQUIPMENT (1.2%) American Axle & Manufacturing Holdings, Inc. (b) 300 9,900 ANC Rental Corp. (b) 626 319 ArvinMeritor, Inc. 2,409 76,365 BorgWarner, Inc. 930 58,106 Collins & Aikman Corp. (b) 4,200 33,180 Dollar Thrifty Automotive Group, Inc. (b) 1,038 24,393 Dura Automotive Systems, Inc. (b) 900 19,620 Electro Rent Corp. (b) 400 5,388 Federal-Mogul Corp. (b) 172 86 Hayes Lemmerz International, Inc. (b) 110 18 Impco Technologies, Inc. (b) 600 7,878
2002 SEMIANNUAL REPORT 34
COMMON STOCKS (CONTINUED) ==================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== AUTO PARTS & EQUIPMENT (continued) Lithia Motors, Inc. Class A (b) 400 $ 11,280 McGrath Rentcorp 403 10,700 Midas, Inc. 284 4,175 Modine Manufacturing Co. 1,000 29,420 Oshkosh Truck Corp. 600 34,152 Sports Resorts International, Inc. (b) 400 2,972 Superior Industries International, Inc. 630 32,489 The Pep Boys - Manny, Moe & Jack 1,516 29,031 Tower Automotive, Inc. (b) 1,434 21,037 United Auto Group, Inc. (b) 400 9,968 Wabash National Corp. 421 4,122 -------- 424,599 -------- ==================================================================== BANK HOLDINGS COMPANIES (8.4%) 1st Source Corp. 300 7,095 Alabama National BanCorp 140 5,530 AMCORE Financial, Inc. 894 21,455 American Financial Holdings, Inc. 818 24,123 BancFirst Corp. 300 12,900 BancorpSouth, Inc. 2,908 63,685 Bank of Granite Corp. 630 15,693 BankAtlantic Bancorp, Inc. Class A 959 12,227 BankUnited Financial Corp. (b) 1,027 16,422 Banner Corp. 87 1,916 Bay View Capital Corp. (b) 2,501 17,507 BB&T Corp. 165 6,283 BOK Financial Corp. (b) 200 6,800 Boston Private Financial Holdings, Inc. 807 21,668 BSB Bancorp, Inc. 95 2,843 Capital City Bank Group, Inc. 400 11,104 Capitol Federal Financial 1,262 32,156 Cathay Bancorp, Inc. 263 22,458 CCBT Financial Cos., Inc. 100 2,549 Central Coast Bancorp (b) 712 14,795 CFS Bancorp, Inc. 600 9,012 Chemical Financial Corp. 820 26,321 Chittenden Corp. 1,036 34,240 Citizens Banking Corp. 1,629 54,083 City Bank 607 16,431 City Holding Co. (b) 1,207 23,185 Coastal Bancorp, Inc. 68 2,133 CoBiz, Inc. 816 14,574 Columbia Banking System, Inc. (b) 945 11,576 Commercial Federal Corp. 1,580 46,452 Community Bank System, Inc. 200 6,750 Community Banks, Inc. 88 2,412 Community First Bankshares, Inc. 1,291 35,477 Community Trust Bancorp, Inc. 100 2,593 Connecticut Bancshares, Inc. 200 6,400 Corus Bankshares, Inc. 300 15,078 CPB, Inc. 415 15,936 CVB Financial Corp. 925 19,888 SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== BANK HOLDINGS COMPANIES (continued) Dime Community Bancshares 1,011 $ 23,516 East West Bancorp, Inc. 1,082 38,736 F&M Bancorp 227 6,537 F.N.B. Corp. 1,470 44,468 Farmers Capital Bank Corp. 320 11,280 Fidelity Bankshares, Inc. 552 11,840 Financial Institutions, Inc. 100 3,455 First BanCorp 476 11,781 First Bancorp. 700 23,450 First Busey Corp. 500 10,750 First Charter Corp. 1,100 22,110 First Citizens BancShares, Inc. Class A 200 21,840 First Commonwealth Financial Corp. 2,136 28,729 First Community Bankshares 100 3,197 First Essex Bancorp, Inc. 84 2,788 First Federal Capital Corp. 300 6,051 First Financial Bancorp. 1,231 23,352 First Financial Bankshares, Inc. 194 6,988 First Financial Corp. 302 14,330 First Indiana Corp. 200 3,984 First Merchants Corp. 204 5,522 First Midwest Bancorp, Inc. 1,942 59,095 First Niagara Financial Group, Inc. 149 3,242 First Place Financial Corp. 200 3,438 First Republic Bancorp, Inc. (b) 200 6,620 First Sentinel Bancorp, Inc. 526 7,737 FirstFed Financial Corp. (b) 600 17,160 Flagstar Bancorp, Inc. 300 8,880 Frontier Financial Corp. 600 16,799 GBC Bancorp 417 13,427 German American Bancorp 834 14,512 Glacier Bancorp 200 4,320 Great Southern Bancorp, Inc. 461 17,334 Greater Bay Bancorp 1,765 59,110 Hancock Holding Co. 200 11,296 Harbor Florida Bancshares, Inc. 800 16,264 Harleysville National Corp. 600 15,060 Hudson River Bancorp, Inc. 300 7,311 Hudson United Bancorp 1,612 51,165 Iberiabank Corp. 300 11,130 Independence Community Bank Corp. 2,154 70,198 Independent Bank Corp. 200 6,244 Independent Bank Corp. 210 5,240 IndyMac Bancorp, Inc. (b) 2,091 52,798 Integra Bank Corp. 300 6,606 International Bancshares Corp. 609 30,785 Lakeland Bancorp, Inc. 165 2,965 Local Financial Corp. (b) 1,100 18,403 MAF Bancorp, Inc. 830 30,760 MB Financial, Inc. 400 12,364 Medford Bancorp, Inc. 400 11,020 Mid-State Bancshares, Inc. 700 14,021
2002 SEMIANNUAL REPORT 35
STATEMENT OF INVESTMENTS (Continued) APRIL 30, 2002 (Unaudited) ============================================================================= NATIONWIDE SMALL CAP INDEX FUND (Continued) COMMON STOCKS (CONTINUED) ============================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================= BANK HOLDINGS COMPANIES (continued) Midwest Banc Holding, Inc. 580 $ 16,095 Mississippi Valley Bancshares, Inc. 110 5,118 National Penn Bancshares, Inc. 709 19,143 NBC Capital Corp. 453 14,949 NBT Bancorp, Inc. 500 9,020 New Century Financial Corp. 700 16,737 New York Community Bancorp, Inc. 2,844 84,352 OceanFirst Financial Corp. 156 4,973 Ocwen Financial Corp. (b) 700 5,250 Old Second Bancorp, Inc. 384 16,116 Omega Financial Corp. 149 4,892 Oriental Financial Group, Inc. 173 3,771 Pacific Capital Bancorp 1,000 35,370 Pacific Northwest Bancorp 500 14,030 Park National Corp. 415 41,811 PennFed Financial Services, Inc. 200 4,922 Peoples Holding Co. 445 16,243 PFF Bancorp, Inc. 200 6,560 Port Financial Corp. 301 10,414 Provident Bankshares Corp. 993 25,878 Quaker City Bancorp (b) 300 11,328 R&G Financial Corp. Class B 619 12,386 Republic Bancorp, Inc. 2,055 30,414 Republic Bancorp, Inc. Class A 791 9,294 Republic Bancshares, Inc. (b) 666 12,980 Riggs National Corp. 563 9,363 Royal Bancshares of Pennsylvania, Inc. Class A 672 13,440 S&T Bancorp, Inc. 830 22,269 S.Y. Bancorp, Inc. 300 11,700 Sandy Spring Bancorp, Inc. 556 18,732 Seacoast Banking Corp., Inc. 350 17,238 Seacoast Financial Services Corp. 863 18,468 Second Bancorp, Inc. 83 2,241 Silicon Valley Bancshares (b) 1,434 45,816 Simmons First National Corp. Class A 400 13,788 Southwest of Texas Bancorp, Inc. (b) 1,126 39,444 Staten Island Bancorp, Inc. 2,048 40,858 Sterling Bancorp 100 3,300 Sterling Bancshares, Inc. 1,593 21,792 Sterling Financial Corp. 200 5,100 Suffolk Bancorp 200 6,854 Susquehanna Bancshares, Inc. 1,419 35,049 Texas Regional Bancshares, Inc. 523 26,150 The Colonial BancGroup, Inc. 4,143 66,287 The South Financial Group, Inc. 1,428 32,887 The Trust Company of New Jersey 600 15,270 Tompkins Trustco, Inc. 100 4,500 TrustCo Bank Corp. NY 2,565 33,191 U.S.B Holding Co., Inc. 178 2,928 UCBH Holdings, Inc. 743 29,311 UMB Financial Corp. 615 29,410 Umpqua Holdings Corp. 132 2,132 SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================= BANK HOLDINGS COMPANIES (continued) United Bankshares, Inc. 1,588 $ 50,816 United Community Financial Corp. 1,735 14,036 United National Bancorp 300 6,906 Unizan Financial Corp. 855 17,827 W Holding Co., Inc. 900 16,722 Washington Trust Bancorp 100 2,060 Waypoint Financial Corp. 1,400 25,130 WesBanco, Inc. 400 9,720 West America Bancorp, Inc. 1,299 57,481 West Coast Bancorp 200 2,994 Westcorp 200 5,998 WFS Financial, Inc. (b) 217 6,760 Whitney Holding Corp. 1,407 51,356 Wintrust Financial Corp. 750 18,525 ---------- 2,877,653 ---------- ============================================================================= BEVERAGES / ALCOHOLIC (0.0%) The Robert Mondavi Corp. (b) 389 15,257 ---------- ============================================================================= BIOTECHNOLOGY (0.9%) Aclara Biosciences, Inc. (b) 1,700 4,216 Aphton Corp. (b) 634 6,251 Arena Pharmaceuticals, Inc. (b) 1,000 8,150 Bio-Technology General Corp. (b) 1,457 7,138 Cambrex Corp. 785 32,256 Covance, Inc. (b) 2,137 42,889 CryoLife, Inc. (b) 446 13,144 CYTOGEN Corp. (b) 2,197 3,691 Digene Corp. (b) 561 12,802 Diversa Corp. (b) 1,233 13,563 Dyax Corp. (b) 100 366 Enzo Biochem, Inc. (b) 765 13,847 Esperion Therapeutics, Inc. (b) 983 4,934 Exelixis, Inc. (b) 1,491 14,761 Genelabs Technologies, Inc. (b) 4,100 3,116 Genta, Inc. (b) 600 8,062 Genzyme Corp. (b) 800 4,400 Hyseq, Inc. (b) 538 2,190 Integra LifeSciences Holdings (b) 300 5,850 Lexicon Genetics, Inc. (b) 900 7,200 Luminex Corp. (b) 800 5,128 Maxygen, Inc. (b) 709 6,537 Nabi Biopharmaceuticals (b) 1,764 11,078 Neose Technologies, Inc. (b) 436 10,455 Novavax, Inc. (b) 500 2,500 SciClone Pharmaceuticals, Inc. (b) 2,312 8,670 Scios, Inc. (b) 1,600 49,487 SonoSite, Inc. (b) 100 1,855 Targeted Genetics Corp. (b) 381 655 Texas Biotechnology Corp. (b) 900 4,725 Transgenomic, Inc. (b) 734 4,440 ---------- 314,356 ----------
2002 SEMIANNUAL REPORT 36
COMMON STOCKS (CONTINUED) ======================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================== BROADCAST MEDIA / CABLE TELEVISION (0.7%) 4Kids Entertainment, Inc. (b) 134 $ 2,305 ACTV, Inc. (b) 766 1,049 Crown Media Holdings, Inc. (b) 658 6,646 Cumulus Media, Inc. (b) 1,031 19,311 Gray Communications Systems, Inc. 697 11,013 Lee Enterprises, Inc. 1,627 63,859 Liberty Corp. 611 25,876 Liberty Media Corp. (b) 343 3,670 Martha Stewart Living Omnimedia, Inc. (b) 627 11,286 Media General, Inc. 425 29,164 Metromedia International Group, Inc. (b) 1,265 76 On Command Corp. (b) 794 3,414 Paxson Communications Corp. (b) 700 7,420 Pegasus Communications Corp. (b) 2,505 5,185 Salem Communications Corp. Class A (b) 186 4,553 Sinclair Broadcast Group, Inc. Class A (b) 1,368 18,263 The Ackerley Group, Inc. (b) 500 8,405 ValueVision International, Inc. Class A (b) 818 15,452 Young Broadcasting, Inc. Class A (b) 684 15,452 -------- 252,399 -------- ======================================================================== BUSINESS SERVICES (2.0%) Aaron Rents, Inc. 241 6,736 ABM Industries, Inc. 639 24,474 Administaff, Inc. (b) 797 18,291 ADVO, Inc. (b) 620 26,846 American Management Systems, Inc. (b) 1,405 32,146 CACI International, Inc. Class A (b) 700 21,122 CDI Corp. (b) 221 6,460 Century Business Services, Inc. (b) 2,843 11,088 Ciber, Inc. (b) 1,821 12,747 Comdisco, Inc. 5,823 582 Consolidated Graphics, Inc. (b) 100 2,135 CoStar Group, Inc. (b) 300 7,143 DiamondCluster International, Inc. (b) 992 12,499 First Consulting Group, Inc. (b) 200 1,800 FreeMarkets, Inc. (b) 1,031 18,311 Gartner Group, Inc. (b) 2,637 30,853 Heidrick & Struggles International, Inc. (b) 900 18,612 I-many, Inc. (b) 692 3,875 Information Resources, Inc. (b) 500 5,125 Insurance Auto Auctions, Inc. (b) 100 1,944 Kelly Services, Inc. Class A 696 20,169 Kforce, Inc. (b) 389 2,015 Korn/Ferry International (b) 1,071 11,246 MAXIMUS, Inc. (b) 400 12,400 Meemic Holdings, Inc. (b) 300 8,610 MemberWorks, Inc. (b) 578 10,057 Modis Professional Services, Inc. (b) 3,098 27,882 Navigant Consulting Co. (b) 900 5,832 NCO Group, Inc. (b) 679 18,903 New England Business Services, Inc. 167 4,676 SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================== BUSINESS SERVICES (continued) New Horizons Worldwide, Inc. (b) 600 $ 6,150 On Assignment, Inc. (b) 900 18,297 Paxar Corp. (b) 1,417 23,664 PDI, Inc. (b) 200 3,440 Prepaid Depot, Inc. (b) 516 15,098 PriceSmart, Inc. (b) 200 7,680 Resources Connection, Inc. (b) 384 10,191 Right Management Consultants, Inc. (b) 489 13,056 SkillSoft Corp. (b) 368 7,069 SOURCECORP, Inc. (b) 700 21,000 Spherion Corp. (b) 1,823 23,189 Stamps.com, Inc. (b) 2,075 9,441 StarTek, Inc. (b) 100 2,486 TeleTech Holdings, Inc. (b) 1,211 14,835 US Oncology, Inc. (b) 3,302 31,699 Wallace Computer Services, Inc. 1,340 29,145 Watson Wyatt & Co. Holdings (b) 575 15,094 Xanser Corp. (b) 3,300 10,890 Zebra Technologies Corp. Class A (b) 962 54,517 Zomax, Inc. (b) 456 2,622 -------- 704,142 -------- ======================================================================== CAPITAL GOODS (2.5%) American Greetings Corp., Class A 2,300 40,825 Ball Corp. 1,958 93,103 C&D Technologies, Inc. 934 21,482 Crown Cork & Seal Co., Inc. (b) 4,231 47,641 Direct Focus, Inc. (b) 1,100 49,170 Donaldson Co., Inc. 1,340 57,821 Florida Rock Industries, Inc. 633 25,307 Graco, Inc. 1,080 48,341 Harsco Corp. 1,405 59,713 Kennametal, Inc. 1,123 44,538 Lawson Products, Inc. 400 12,820 Libbey, Inc. 500 19,550 Lindsay Manufacturing Co. 168 4,116 Manitowoc Co., Inc. 835 36,490 Nu Skin Enterprises, Inc. 1,600 22,400 Regal-Beloit Corp. 615 16,082 Robbins & Myers, Inc. 100 2,925 Sola International, Inc. (b) 600 8,610 Technitrol, Inc. 1,126 28,600 Tecumseh Products Co. 516 26,811 Texas Industries, Inc. 718 27,844 Timken, Inc. 2,052 54,686 Trinity Industries, Inc. 1,530 35,955 Vicor Corp. (b) 600 8,316 Yankee Candle Co., Inc. (b) 300 6,582 York International Corp. 1,344 48,935 -------- 848,663 --------
2002 SEMIANNUAL REPORT 37
STATEMENT OF INVESTMENTS (Continued) APRIL 30, 2002 (Unaudited) ===================================================================== NATIONWIDE SMALL CAP INDEX FUND (Continued) COMMON STOCKS (CONTINUED) ===================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== CHEMICALS (1.5%) A. Schulman, Inc. 1,296 $ 26,309 Albemarle Corp. 964 28,583 Arch Chemicals, Inc. 700 16,660 ChemFirst, Inc. 112 3,130 Crompton Corp. 4,075 49,103 Cytec Industries, Inc. (b) 1,407 46,417 Ferro Corp. 965 27,329 H.B. Fuller Co. 950 29,555 IMC Global, Inc. 3,875 48,825 MacDermid, Inc. 786 17,292 Millennium Chemicals, Inc. 2,309 31,518 Minerals Technologies, Inc. 702 35,100 NL Industries, Inc. 128 2,125 PolyOne Corp. 2,788 33,846 RPM, Inc. 3,669 62,189 Schawk, Inc., Class A 200 2,100 Spartech Corp. 324 8,664 Symyx Technologies, Inc. (b) 859 16,871 Terra Industries, Inc. (b) 400 1,072 Uniroyal Technology Corp. (b) 115 56 Wellman, Inc. 959 15,919 -------- 502,663 -------- ===================================================================== CHEMICALS / DIVERSIFIED (0.1%) Georgia Gulf Corp. 994 21,898 Olin Corp. 1,206 21,961 -------- 43,859 -------- ===================================================================== CIRCUIT BOARDS (0.2%) ACT Manufacturing, Inc. (b) 759 38 DDI Corp. (b) 1,424 8,572 Merix Corp. (b) 627 10,483 Park Electrochemical Corp. 584 17,667 Pemstar, Inc. (b) 1,053 7,582 SBS Technologies, Inc. (b) 761 9,695 TTM Technologies, Inc. (b) 600 4,931 Viasystems Group, Inc. (b) 925 60 -------- 59,028 -------- ===================================================================== COMMUNICATIONS EQUIPMENT (0.4%) Allen Telecom, Inc. (b) 449 2,959 Anixter International, Inc. (b) 974 28,197 Audiovox Corp. (b) 288 2,151 Cable Design Technologies Corp. (b) 1,468 18,453 DMC Stratex Networks, Inc. (b) 3,029 12,722 Harmonic, Inc. (b) 1,904 15,327 Inter-Tel, Inc. 901 18,480 LodgeNet Entertainment Corp. (b) 189 3,383 Netro Corp. (b) 1,971 5,499 Proxim Corp. (b) 2,778 8,473 Standard Microsystems Corp. (b) 800 19,640 Terayon Communications Systems, Inc. (b) 2,324 5,578 -------- 140,862 -------- SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== COMPUTER EQUIPMENT (0.5%) Analogic Corp. 318 $ 15,855 Avocent Corp. (b) 1,564 39,100 Hutchinson Technology, Inc. (b) 936 16,764 InFocus Corp. (b) 1,347 17,430 Iomega Corp. (b) 1,905 24,003 Turnstone Systems, Inc. (b) 1,614 5,891 Western Digital Corp. (b) 6,759 41,839 -------- 160,882 -------- ===================================================================== COMPUTER INTEGRATED SYSTEMS DESIGN (0.7%) Adaptec, Inc. (b) 3,833 56,345 Brady Corp. Class A 638 23,287 Cacheflow, Inc. (b) 1,744 1,064 Digex, Inc. (b) 406 337 Eclipsys Corp. (b) 1,502 24,049 eSPEED, Inc. Class A (b) 876 10,810 F5 Networks, Inc. (b) 697 9,075 FileNET Corp. (b) 1,181 20,372 Integral Systems, Inc. (b) 100 2,252 InteliData Technologies Corp. (b) 400 740 Keynote Systems, Inc. (b) 983 8,975 MTS Systems Corp. 400 4,200 Netscout Systems, Inc. (b) 300 2,733 Nuance Communications, Inc. (b) 842 4,715 NYFIX, Inc. (b) 1,000 10,070 RadiSys Corp. (b) 400 5,868 Sapient Corp. (b) 2,008 9,799 Systems & Computer Technology Corp. (b) 1,287 20,013 Vastera, Inc. (b) 800 4,432 Visual Networks, Inc. (b) 1,285 1,683 Wave Systems Corp. (b) 818 1,685 WebEx Communications, Inc. (b) 469 8,081 -------- 230,585 -------- ===================================================================== COMPUTER SOFTWARE & SERVICES (3.3%) 3D Systems Corp. (b) 511 6,955 3DO Co. (b) 1,563 1,110 Activision, Inc. (b) 1,257 39,569 Actuate Corp. (b) 1,831 10,345 Advanced Digital Information, Corp. (b) 2,100 18,900 Agile Software Corp. (b) 798 7,310 Answerthink, Inc. (b) 1,340 8,643 Ansys, Inc. (b) 684 17,442 Aspen Technologies, Inc. (b) 1,200 16,260 Avant! Corp. (b) 1,267 21,096 Avid Technology, Inc. (b) 1,140 11,731 BARRA, Inc. (b) 400 19,756 Borland Software Corp. (b) 1,700 18,530 Braun Consulting, Inc. (b) 753 3,260 Brio Technology, Inc. (b) 260 559 BSQUARE Corp. (b) 841 2,867 Caminus Corp. (b) 471 8,794
2002 SEMIANNUAL REPORT 38
COMMON STOCKS (CONTINUED) ====================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== COMPUTER SOFTWARE & SERVICES (continued) Catapult Communications Corp. (b) 328 $ 8,220 CCC Information Services Group, Inc. (b) 191 2,149 Chordiant Software, Inc. (b) 341 1,531 Cognizant Technology Solutions Corp. (b) 281 13,207 Concurrent Computer Corp. (b) 2,100 14,385 Covansys Corp. (b) 290 2,320 Dendrite International, Inc. (b) 705 9,341 Digimarc Corp. (b) 374 5,599 Digital Insight Corp. (b) 1,000 19,010 Digitas, Inc. (b) 81 399 Documentum, Inc. (b) 1,298 25,207 E.piphany, Inc. (b) 2,220 13,364 Echelon Corp. (b) 687 10,855 Electronics For Imaging, Inc. (b) 1,961 35,121 EPIQ Systems, Inc. (b) 304 5,183 EXE Technologies, Inc. (b) 1,600 2,960 FactSet Research Systems, Inc. 700 24,381 FalconStor Software, Inc. (b) 1,722 10,676 Handspring, Inc. (b) 1,200 3,120 HNC Software, Inc. (b) 1,345 25,716 Hyperion Solutions Corp. (b) 1,106 25,880 Infogrames, Inc. (b) 240 1,560 InfoSpace, Inc. (b) 9,027 10,562 Intertrust Technologies Corp. (b) 6,200 8,432 ITXC Corp. (b) 1,861 9,845 JDA Software Group, Inc. (b) 846 25,583 Keane, Inc. (b) 1,942 30,373 Legato Systems, Inc. (b) 3,172 21,887 Lexar Media, Inc. (b) 4,426 14,163 Liberate Technologies, Inc. (b) 3,514 17,886 MapInfo Corp. (b) 807 8,901 MCSI, Inc. (b) 998 14,451 Mercury Computer Systems, Inc. (b) 693 20,062 MetaSolv, Inc. (b) 1,023 6,036 MicroStrategy, Inc. (b) 1,715 2,967 MRO Software, Inc. (b) 900 13,014 MSC.Software Corp. (b) 1,000 12,270 NetiQ Corp. (b) 1,400 31,401 Novell, Inc. (b) 12,772 47,255 ONYX Software Corp. (b) 800 2,888 OTG Software, Inc. (b) 1,026 7,439 Packeteer, Inc. (b) 953 6,671 PEC Solutions, Inc. (b) 322 7,567 Phoenix Technology Ltd. (b) 1,152 15,840 Pinnacle Systems, Inc. (b) 1,900 17,670 PlxTech, Inc. (b) 1,100 8,184 Portal Software, Inc. (b) 4,700 6,956 QRS Corp. (b) 115 1,288 Radiant Systems, Inc. (b) 197 2,169 Rainbow Technologies, Inc. (b) 1,115 9,444 Read-Rite Corp. (b) 4,810 17,076 Red Hat, Inc. (b) 403 1,850 SHARES OR PRINCIPAL AMOUNT VALUE ====================================================================== COMPUTER SOFTWARE & SERVICES (continued) Renaissance Learning, Inc. (b) 265 $ 9,161 Roxio, Inc. (b) 886 18,828 Saba Software, Inc. (b) 786 2,303 Safeguard Scientifics, Inc. (b) 2,953 7,737 SCM Microsystems, Inc. (b) 292 3,761 SeaChange International, Inc. (b) 614 6,834 SeeBeyond Technology Corp. (b) 1,200 4,128 Serena Software, Inc. (b) 366 5,033 Silicon Graphics, Inc. (b) 6,567 18,388 Simplex Solutions, Inc. (b) 408 6,883 SonicWall, Inc. (b) 1,525 11,316 SpeechWorks International, Inc. (b) 824 4,038 SPSS, Inc. (b) 554 9,828 Sykes Enterprises, Inc. (b) 1,007 10,352 Take-Two Interactive Software, Inc. (b) 970 24,347 TALX Corp. 400 6,520 THQ, Inc. (b) 1,274 44,648 Transaction Systems Architects, Inc. (b) 914 10,602 Ulticom, Inc. (b) 400 2,300 Verity, Inc. (b) 949 12,660 Viewpoint Corp. (b) 900 5,400 webMethods, Inc. (b) 780 11,606 Witness Systems, Inc. (b) 800 6,295 Xybernaut Corp. (b) 2,155 2,543 Zoran Corp. (b) 594 21,509 ---------- 1,140,461 ---------- ====================================================================== CONSTRUCTION & BUILDING MATERIALS (0.7%) AMCOL International Corp. 310 1,891 Granite Construction, Inc. 1,105 25,537 Hovnanian Enterprises, Inc. Class A (b) 768 23,378 JLG Industries, Inc. 1,468 24,163 LSI Industries, Inc. 900 17,883 NCI Building Systems, Inc. (b) 274 6,461 NVR, Inc. (b) 200 73,949 Oglebay Norton Co. 406 5,501 Omnova Solutions, Inc. 700 6,440 Simpson Manufacturing Co., Inc. (b) 300 19,710 The Genlyte Group, Inc. (b) 500 21,915 Universal Display Corp. (b) 200 2,166 Walter Industries, Inc. 717 9,680 ---------- 238,674 ---------- ====================================================================== CONSUMER DURABLES (0.7%) 1-800 CONTACTS, Inc. (b) 500 5,450 Blyth, Inc. 1,139 33,885 Coca-Cola Bottling Co. 200 9,832 Coorstek, Inc. (b) 200 7,858 Elizabeth Arden, Inc. (b) 707 8,406 Greif Bros. Class A 500 17,760 Oneida Ltd. 274 5,042 Pilgrim's Pride Corp. 200 2,720
2002 SEMIANNUAL REPORT 39
STATEMENT OF INVESTMENTS (Continued) APRIL 30, 2002 (Unaudited) ============================================================================== NATIONWIDE SMALL CAP INDEX FUND (Continued) COMMON STOCKS (CONTINUED) ============================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== CONSUMER DURABLES (continued) Playtex Products, Inc. (b) 300 $ 3,900 Rayovac Corp. (b) 643 10,230 Russ Berrie & Co., Inc. 141 5,147 Silgan Holdings, Inc. (b) 500 19,900 TBC Corp. (b) 300 4,470 The Scotts Co. (b) 615 29,342 Toro Co. 436 25,288 Tupperware Corp. 1,873 43,003 -------- 232,233 -------- ============================================================================== CONSUMER NON-CYCLICAL (0.2%) Church & Dwight, Inc. 1,237 35,378 Revlon Co., Inc. (b) 1,177 6,003 Unifi, Inc. (b) 1,963 22,005 WestPoint Stevens, Inc. 402 2,243 -------- 65,629 -------- ============================================================================== DATA PROCESSING & REPRODUCTION (0.6%) Ascential Software Corp. (b) 9,219 31,713 Carreker-Antinori, Inc. (b) 300 2,997 Convera Corp. (b) 1,700 6,662 eFunds Corp. (b) 1,593 25,329 Embarcadero Technologies, Inc. (b) 100 1,100 Extensity, Inc. (b) 2,400 3,552 Fair Issac & Co., Inc. 666 37,123 Global Payment, Inc. 1,299 49,908 Indus International, Inc. (b) 200 798 infoUSA, Inc. (b) 600 4,440 Interactive Intelligence, Inc. (b) 1,000 4,000 Intrado, Inc. (b) 400 7,436 ProBusiness Services, Inc. (b) 900 17,658 The InterCept Group, Inc. (b) 500 15,190 -------- 207,906 -------- ============================================================================== DISTRIBUTION (0.5%) Advanced Marketing Services, Inc. 500 12,125 Bell Microproducts, Inc. (b) 980 11,564 Brightpoint, Inc. (b) 989 554 Daisytek International Corp. (b) 389 6,197 Handleman Co. (b) 432 5,530 Hughes Supply, Inc. 821 34,252 Owens & Minor, Inc. 1,192 24,662 ScanSource, Inc. (b) 200 13,412 SCP Pool Corp. (b) 810 25,669 United Stationers, Inc. (b) 1,130 44,081 Watsco, Inc. 272 4,920 -------- 182,966 -------- SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== DRUGS (1.3%) ABIOMED, Inc. (b) 731 $ 5,124 Adolor Corp. (b) 800 11,000 Advanced Tissue Sciences, Inc. (b) 1,060 2,915 Alpharma, Inc. 1,100 18,810 Amylin Pharmaceuticals, Inc. (b) 2,700 25,623 ARIAD, Inc. (b) 1,075 5,192 ArQule, Inc. (b) 889 8,446 Atrix Laboratories, Inc. (b) 800 19,168 AVANT Immunotherapeutics, Inc. (b) 4,808 8,510 Avigen, Inc. (b) 911 10,085 Bio-Rad Laboratories, Inc. Class A (b) 600 28,980 Cell Therapeutics, Inc. (b) 1,172 14,556 Charles River Laboratories International, Inc. (b) 1,471 44,056 Connetics Corp. (b) 1,405 16,846 CV Therapeutics, Inc. (b) 761 22,023 Cygnus, Inc. (b) 746 3,514 DeCODE genetics, Inc. (b) 300 1,665 DUSA Pharmaceuticals, Inc. (b) 729 2,880 Endo Pharmaceuticals Holdings, Inc. (b) 200 2,314 Guilford Pharmaceuticals, Inc. (b) 1,400 10,780 Harvard Bioscience, Inc. (b) 696 5,422 Immunomedics, Inc. (b) 1,410 18,556 Incyte Genomics, Inc. (b) 2,376 19,507 InterMune, Inc. (b) 983 26,295 Ligand Pharmaceuticals, Inc. (b) 1,455 22,654 Martek Biosciences Corp. (b) 743 21,488 Nanogen, Inc. (b) 539 1,778 NBTY, Inc. (b) 1,598 27,454 NPS Pharmaceuticals, Inc. (b) 938 27,962 Sequenom, Inc. (b) 308 1,814 Tanox, Inc. (b) 455 5,441 Tularik, Inc. (b) 700 8,050 Valentis, Inc. (b) 2,843 6,539 Vical, Inc. (b) 178 1,671 -------- 457,118 -------- ============================================================================== EDUCATIONAL SERVICES (0.7%) Bright Horizons Family Solutions, Inc. (b) 209 6,264 Career Education Corp. (b) 1,477 66,391 Corinthian Colleges, Inc. (b) 200 11,778 Edison Schools, Inc. (b) 700 3,591 Education Management Corp. (b) 800 34,496 ITT Educational Services, Inc. (b) 845 42,799 Learning Tree International, Inc. (b) 541 13,092 PLATO Learning, Inc. (b) 700 9,394 Strayer Education, Inc. 189 10,699 Sylvan Learning Systems, Inc. (b) 1,058 29,201 -------- 227,705 --------
2002 SEMIANNUAL REPORT 40
COMMON STOCKS (continued) ======================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= ELECTRICAL EQUIPMENT (0.9%) Active Power, Inc. (b) 1,300 $ 5,460 ADE Corp. (b) 200 2,620 ANADIGICS, Inc. (b) 858 8,700 Artesyn Technologies, Inc. (b) 1,450 11,267 Avista Corp. 1,576 25,200 Bel Fuse, Inc. Class B 100 2,684 BMC Industries, Inc. 2,400 3,744 Cataytica Energy Systems, Inc. (b) 1,900 6,211 Cleco Corp. 1,479 36,649 DSP Group, Inc. (b) 800 16,976 El Paso Electric Co. (b) 1,762 27,487 EMCOR Group, Inc. (b) 400 24,340 Encore Wire Corp. (b) 200 3,284 Energy Conversion Devices, Inc. (b) 680 16,068 H Power Corp. (b) 900 1,863 II-VI Corp. (b) 108 1,618 Integrated Silicon Solution, Inc. (b) 947 12,690 Madison Gas & Electric Co. 537 15,219 Millennium Cell, Inc. (b) 998 3,822 Pioneer Standard Electronics, Inc. 1,370 20,029 Proton Energy Systems, Inc. (b) 1,066 5,394 Rambus, Inc. (b) 2,816 18,811 Research Frontiers, Inc. (b) 441 7,184 SLI, Inc. 2,800 1,428 Tripath Imaging, Inc. (b) 768 3,203 Triumph Group, Inc. (b) 656 30,209 -------- 312,160 -------- ======================================================================= ELECTRONICS (0.9%) Aeroflex, Inc. (b) 2,052 28,687 BEI Technologies, Inc. 468 9,177 Coherent, Inc. (b) 1,014 31,028 Daktronics, Inc. (b) 701 6,898 EDO Corp. 274 8,480 Electro Scientific Industries, Inc. (b) 936 28,136 Engineered Support Systems, Inc. 300 14,820 Excel Technology, Inc. (b) 119 3,057 FLIR Systems, Inc. (b) 417 16,629 Itron, Inc. (b) 518 18,467 Keithley Instruments, Inc. 259 4,973 MagneTek, Inc. (b) 200 2,400 Methode Electronics, Inc. 700 8,029 Planar Systems, Inc. (b) 571 14,212 Recoton Corp. (b) 1,200 5,303 Rogers Corp. (b) 600 20,160 SatCon Technology Corp. (b) 585 1,252 Somera Communications, Inc. (b) 300 2,145 Thomas & Betts Corp. 2,048 48,128 Trimble Navigation Ltd. (b) 1,134 18,813 Tripath Technology, Inc. (b) 2,300 4,094 Watts Industries, Inc. Class A 284 5,172 Zygo Corp. (b) 300 5,133 -------- 305,193 -------- SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= ENTERTAINMENT (0.3%) Acclaim Entertainment, Inc. (b) 1,639 $ 8,785 AMC Entertainment, Inc. (b) 600 8,700 Dover Downs Entertainment, Inc. 148 1,724 Dover Motorsports, Inc. 212 1,713 Gaylord Entertainment Co. (b) 799 21,692 Magna Entertainment Corp. Class A (b) 1,300 10,660 Midway Games, Inc. (b) 700 9,555 Penn National Gaming, Inc. (b) 441 16,952 Pinnacle Entertainment, Inc. (b) 318 3,530 Steinway Musical Instruments, Inc. (b) 500 11,200 World Wrestling Federation Entertainment, Inc. (b) 199 2,876 -------- 97,387 -------- ======================================================================= FIBER OPTICS (0.2%) Avanex Corp. (b) 1,922 6,054 Belden, Inc. 892 21,354 C-Cor.net Corp. (b) 1,200 13,128 LightPath Technologies, Inc. (b) 991 1,685 MRV Communications, Inc. (b) 2,110 4,304 Newport Corp. 1,165 23,895 Sorrento Networks Corp. (b) 770 1,656 -------- 72,076 -------- ======================================================================= FINANCIAL (1.5%) Actrade Financial Technologies Ltd. (b) 423 7,039 Advanta Corp. Class A 547 7,631 Affiliated Managers Group, Inc. (b) 776 49,354 American Capital Strategies Ltd. 1,200 38,484 Charter Municipal Mortgage Acceptance Co. 1,341 22,381 CompuCredit Corp. (b) 162 1,264 Doral Financial Corp. 1,300 45,422 Downey Financial Corp. 700 37,184 DVI, Inc. (b) 100 1,970 Federal Agricultural Mortgage Corp. (b) 400 15,084 Financial Federal Corp. (b) 400 14,068 First Financial Holdings, Inc. 300 8,904 Friedman, Billings, Ramsey Group, Inc. (b) 208 1,870 Interactive Data Corp. (b) 1,197 20,888 Irwin Financial Corp. 700 13,475 Jefferies Group, Inc. 860 39,981 Ladenburg Thalmann Financial (b) 104 77 Medallion Financial Corp. 492 2,529 MicroFinancial, Inc. 1,000 9,200 PRG-Schultz International, Inc. (b) 1,625 22,295 Raymond James Financial, Inc. 1,321 44,174 Resource America, Inc. Class A 951 10,708 SoundView Technology Group, Inc. (b) 2,728 6,056 SWS Group, Inc. 750 15,075 The Ryland Group, Inc. 500 54,999 The Student Loan Corp. 92 8,956 Tradestation Group, Inc. (b) 3,300 4,719 World Acceptance Corp. (b) 900 8,010
2002 SEMIANNUAL REPORT 41 STATEMENTS OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================
NATIONWIDE SMALL CAP INDEX INDEX FUND (Continued) COMMON STOCKS (continued) ================================================================ SHARES OR PRINCIPAL AMOUNT VALUE ================================================================ FINANCIAL (continued) WSFS Financial Corp. 809 $ 16,827 -------- 528,624 -------- ================================================================ FINANCIAL / BANKS (0.1%) Anchor BanCorp Wisconsin, Inc. 1,127 24,794 Credit Acceptance Corp. (b) 145 1,927 Gold Banc Corp., Inc. 587 5,870 -------- 32,591 -------- ================================================================ FOOD & RELATED (1.8%) American Italian Pasta Co. (b) 633 31,485 Corn Products International, Inc. 1,230 40,713 Dean Foods Co. (b) 2,996 110,913 Del Monte Foods Co. (b) 401 4,243 Dole Food Co., Inc. 1,500 49,905 Dreyer's Grand Ice Cream, Inc. 700 32,662 Fleming Co., Inc. 1,435 31,627 Flowers Foods, Inc. (b) 878 22,907 Great Atlantic & Pacific Tea Co., Inc. (b) 704 18,036 Green Mountain Coffee, Inc. (b) 289 7,109 Hain Celestial Group, Inc. (b) 800 14,664 International Multifoods Corp. (b) 282 7,572 Interstate Bakeries Corp. 1,005 24,824 J & J Snack Foods Corp. (b) 400 15,200 Lance, Inc. 1,116 17,800 National Beverage Corp. (b) 905 13,439 Performance Food Group Co. (b) 1,617 58,262 Ralcorp Holding, Inc. (b) 1,031 28,868 Riviana Foods, Inc. 485 11,490 Sensient Technologies Corp. 1,654 41,333 Tejon Ranch (b) 100 3,300 The J.M. Smucker Co. 654 22,694 -------- 609,046 -------- ================================================================ FURNITURE (0.5%) American Woodmark Corp. 300 20,250 Bush Industries, Inc. 588 7,938 Furniture Brands International, Inc. (b) 1,773 72,392 Kimball International, Inc. Class B 1,148 19,516 La-Z-Boy, Inc. 1,786 53,651 Quaker Fabric Corp. (b) 898 12,365 -------- 186,112 -------- ================================================================ GAMBLING - NON-HOTEL CASINOS (0.2%) Argosy Gaming Co. (b) 760 27,360 Churchill Downs, Inc. 200 7,400 Isle of Capris Casinos, Inc. (b) 904 18,966 Scientific Games Corp. (b) 900 8,973 -------- 62,699 -------- ================================================================ GAS - DISTRIBUTION (1.4%) AGL Resources, Inc. 1,945 $ 46,563 Atmos Energy Corp. 1,626 38,910 Cascade Natural Gas Corp. 100 2,250 Energen Co. 1,016 28,600 New Jersey Resources Corp. 944 30,208 Northwest Natural Gas Co. 919 26,100 NUI Corp. 859 23,021 ONEOK, Inc. 1,959 42,824 Peoples Energy Corp. 1,293 50,426 Piedmont Natural Gas Co., Inc. 1,203 44,812 SEMCO Energy, Inc. 1,216 11,856 South Jersey Industries, Inc. 281 9,976 Southwest Gas Corp. 1,086 26,879 Southwestern Energy Co. (b) 442 6,365 UGI Corp. 1,131 35,627 WGL Holdings, Inc. 1,794 48,617 -------- 473,034 -------- ================================================================ HEALTHCARE (2.4%) Accredo Health, Inc. (b) 900 58,257 American Healthways, Inc. (b) 400 10,780 American Medical Systems Holdings, Inc. (b) 1,100 25,278 AmeriPath, Inc. (b) 1,032 27,864 AmSurg Corp. (b) 700 20,300 Apria Healthcare Group, Inc. (b) 1,462 37,997 Beverly Enterprises, Inc. (b) 3,505 30,143 Cerus Corp. (b) 400 20,484 Columbia Laboratories, Inc. (b) 397 1,783 Coventry Health Care, Inc. (b) 2,102 66,214 DIANON Systems, Inc. (b) 327 21,451 Dynacq International, Inc. (b) 848 14,153 Endocare, Inc. (b) 700 13,433 Gentiva Health Services, Inc. (b) 843 22,845 Hooper Holmes, Inc. 2,049 21,289 Invacare Corp. 749 28,327 LifePoint Hospitals, Inc. (b) 1,374 57,708 Magellan Health Services, Inc. (b) 796 5,930 MedQuist, Inc. (b) 179 5,170 Mid Atlantic Medical Services, Inc. (b) 1,715 62,477 Option Care, Inc. (b) 515 9,677 PacifiCare Health Systems, Inc. (b) 1,000 30,260 Pediatrix Medical Group, Inc. (b) 800 37,592 Per-Se Technologies, Inc. (b) 1,452 18,237 PolyMedica Corp. (b) 600 23,376 Province Healthcare Co. (b) 1,163 44,787 RehabCare Group, Inc. (b) 600 15,990 Renal Care Group, Inc. (b) 1,804 64,042 Select Medical Corp. (b) 400 6,020 Sierra Health Services, Inc. (b) 574 11,193 Sunrise Assisted Living, Inc. (b) 591 15,963 U.S. Physical Therapy, Inc. (b) 300 5,343 -------- 834,363 --------
2002 SEMIANNUAL REPORT 42
COMMON STOCKS (continued) ========================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================== HOTELS & CASINOS (0.3%) Aztar Corp. (b) 1,220 28,390 Boyd Gaming Corp. (b) 1,417 21,680 Hollywood Casino Corp. Class A (b) 700 10,689 MTR Gaming Group, Inc. (b) 900 15,084 Station Casinos, Inc. (b) 1,400 25,900 ------- 101,743 ------- ========================================================================== HOTELS & MOTELS (0.2%) Boca Resorts, Inc. (b) 600 8,430 Choice Hotels International, Inc. (b) 1,220 31,927 Crestline Capital Corp. (b) 357 12,081 Marcus Corp. 277 4,792 Prime Hospitality Corp. (b) 1,510 19,464 ------- 76,694 ------- ========================================================================== INSURANCE (1.6%) Alfa Corp. 1,412 45,311 American Physicians Capital, Inc. (b) 729 13,122 Argonaut Group, Inc. 700 15,792 Baldwin & Lyons, Inc. Class B 425 11,683 Citizens, Inc. (b) 345 4,495 CNA Surety Corp. 200 3,250 Cobalt Corp. (b) 700 13,510 FBL Financial Group, Inc. Class A 100 2,010 First American Corp. 2,421 53,504 Fremont General Corp. 1,410 9,856 Harleysville Group, Inc. 1,098 33,161 Horace Mann Educators Corp. 1,516 36,308 Kansas City Life Insurance Co. 300 12,105 LandAmerica Financial Group, Inc. 625 21,875 Nymagic, Inc. 400 8,100 Ohio Casualty Corp. (b) 2,308 44,591 Philadelphia Consolidated Holding Corp. (b) 402 17,165 PICO Holdings, Inc. (b) 800 13,280 PMA Capital Corp. Class A 900 21,573 ProAssurance Corp. (b) 462 8,478 RLI Corp. 118 6,797 SCPIE Holdings, Inc. 137 1,843 Selective Insurance Group, Inc. 914 27,420 Stewart Information Services Corp. (b) 500 9,450 The Commerce Group, Inc. 853 34,427 Triad Guaranty, Inc. (b) 400 17,880 United Fire & Casualty Co. 300 10,098 Vesta Insurance Group, Inc. 600 2,742 W.R. Berkley Corp. 718 43,439 Zenith National Insurance Co. 100 3,070 ------- 546,335 ------- ========================================================================== INSURANCE / LIFE (0.6%) AmerUs Group Co. 1,528 57,575 Delphi Financial Group, Inc. 464 19,952 Great American Financial Resources, Inc. 145 2,587 National Western Life Insurance Co. Class A (b) 100 12,000 Presidential Life Corp. 781 19,447 StanCorp Financial Group, Inc. 1,023 59,845 UICI (b) 1,646 33,743 Universal American Financial Corp. (b) 800 6,128 ------- 211,277 ------- ========================================================================== INSURANCE BROKERS (0.3%) Brown & Brown, Inc. 1,502 49,866 Clark/Bardes, Inc. (b) 200 4,720 Crawford & Co. Class B 1,220 17,202 Hilb, Rogal & Hamilton Co. 1,000 36,780 ------- 108,568 ------- ========================================================================== INTERNET (0.7%) Akamai Technologies, Inc. (b) 3,600 8,244 Alloy Online, Inc. (b) 433 5,477 Art Technology Group, Inc. (b) 2,816 4,646 AsiaInfo Holdings, Inc. (b) 703 7,157 Centra Software, Inc. (b) 1,239 3,841 Commerce One, Inc. (b) 11,300 12,543 Entrust, Inc. (b) 1,200 5,028 ftd.com, Inc. (b) 1,183 7,157 Genuity, Inc. (b) 4,412 3,088 Inktomi Corp. (b) 4,243 9,844 Interland, Inc. (b) 3,875 9,765 Internap Network Services Corp. (b) 1,500 870 Internet Capital Group, Inc. (b) 9,218 4,240 Kana Software, Inc. (b) 836 8,602 MatrixOne, Inc. (b) 909 6,272 McAfee.com Corp. (b) 620 8,277 Multex.com, Inc. (b) 417 1,851 Net.B@nk, Inc. (b) 1,124 18,040 Net2Phone, Inc. (b) 438 2,230 Netegrity, Inc. (b) 574 4,391 NextCard, Inc. (b) 1,070 25 Overture Services, Inc. (b) 670 22,908 Priceline.com, Inc. (b) 3,500 17,672 Register.com, Inc. (b) 791 6,660 S1 Corp. (b) 2,078 18,640 Selectica, Inc. (b) 600 2,297 StarMedia Network, Inc. (b) 149 8 Stellent, Inc. (b) 1,138 5,997 SupportSoft, Inc. (b) 1,300 4,394 The TriZetto Group, Inc. (b) 1,000 11,800 Vitria Technology, Inc. (b) 1,800 4,050 WatchGuard Technolgies, Inc. (b) 997 6,411 Websense, Inc. (b) 674 18,003 Zixit Corp. (b) 561 2,783 ------- 253,211 -------
2002 SEMIANNUAL REPORT 43 STATEMENTS OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ============================================================
NATIONWIDE SMALL CAP INDEX FUND (Continued) COMMON STOCKS (continued) ============================================================ SHARES OR PRINCIPAL AMOUNT VALUE ============================================================ LEISURE PRODUCTS (0.3%) Action Performance Co., Inc. (b) 500 $ 23,526 Alliance Gaming Corp. (b) 1,200 17,856 Bally Total Fitness Holding Corp. (b) 898 19,621 Boyds Collection Ltd. (b) 1,090 8,687 JAKKS Pacific, Inc. (b) 681 13,123 Speedway Motorsports, Inc. (b) 300 8,955 Topps Co., Inc. (b) 1,727 17,667 Vail Resorts, Inc. (b) 108 2,057 WMS Industries, Inc. (b) 399 6,428 -------- 117,920 -------- ============================================================ MACHINERY (1.7%) Advanced Energy Industries, Inc. (b) 682 23,734 AGCO Corp. 2,364 53,710 Albany International Corp. Class A 727 18,306 Applied Industrial Technologies, Inc. 324 6,448 Astec Industries, Inc. (b) 879 16,393 Baldor Electric Co. 823 19,505 Briggs & Stratton Corp. 800 33,720 Brooks Automation, Inc. (b) 700 24,955 Cubic Corp. 300 21,600 Flow International Corp. (b) 900 9,540 Flowserve Corp. (b) 1,568 54,096 Franklin Electric Co., Inc. 200 10,120 Gardner Denver, Inc. (b) 300 8,370 Gorman-Rupp 400 10,720 IDEX Corp. 1,045 37,578 Intermagnetics General Corp. (b) 600 15,078 Lennox International, Inc. 1,500 22,500 Mestek, Inc. (b) 260 5,902 Milacron, Inc. 997 13,210 NACCO Industries, Inc. 200 14,720 Nordson Corp. 963 29,834 Photon Dynamics, Inc. (b) 575 27,853 Sauer-Danfoss, Inc. 893 10,698 Stewart & Stevenson Services, Inc. 1,100 20,779 SureBeam Corp. Class A (b) 914 5,283 Tennant Co. 379 16,676 Terex Corp. (b) 1,300 32,565 Thomas Industries, Inc. 600 17,400 UNOVA, Inc. (b) 1,201 9,728 Wabtec Corp. 402 6,147 -------- 597,168 -------- ============================================================ MANUFACTURED HOUSING (0.7%) Apogee Enterprises, Inc. 800 11,000 Beazer Homes USA, Inc. (b) 412 36,470 Centex Construction Products, Inc. 100 4,388 Fleetwood Enterprises, Inc. 941 10,040 Highwood Properties, Inc. 1,861 52,331 KB HOME 1,477 73,629 Monaco Coach Corp. (b) 837 24,039 SHARES OR PRINCIPAL AMOUNT VALUE ============================================================ Palm Harbor Homes, Inc. (b) 297 $ 6,965 Skyline Corp. 118 4,248 Winnebago Industries, Inc. 419 19,567 -------- 242,677 -------- ============================================================ MANUFACTURING (1.0%) American Superconductor Corp. (b) 200 1,544 AptarGroup, Inc. 1,124 41,757 Armor Holdings, Inc. (b) 700 17,745 Champion Enterprises, Inc. (b) 1,314 10,906 Checkpoint Systems, Inc. (b) 1,008 17,388 Cognex Corp. (b) 1,144 28,200 CSS Industries, Inc. (b) 501 17,285 CUNO, Inc. (b) 647 22,800 Gerber Scientific, Inc. 319 1,436 Identix, Inc. (b) 800 6,040 Lincoln Electric Holdings, Inc. 1,168 33,171 Mine Safety Appliances Co. 200 8,960 Myers Industries, Inc. 264 4,778 OshKosh B'Gosh, Inc. Class A 250 10,463 Owens-Illinois, Inc. (b) 5,274 84,488 Powell Industries, Inc. (b) 369 8,672 Quixote Corp. 300 5,835 Sturm, Ruger & Co., Inc. 737 10,244 Woodward Governor Co. 400 27,532 -------- 359,244 -------- ============================================================ MANUFACTURING / DIVERSIFIED (1.6%) A.O. Smith Corp. 86 2,675 Acuity Brands, Inc. 1,542 28,604 Barnes Group, Inc. 302 7,767 Carlisle Companies, Inc. 1,084 43,891 CLARCOR, Inc. 793 25,614 ESCO Technologies, Inc. (b) 494 19,884 Federal Signal Corp. 1,548 35,604 Garan, Inc. 200 12,900 Griffon Corp. (b) 1,200 23,040 Harman International Industries, Inc. 1,189 70,211 Imation Corp. (b) 1,210 36,409 Lancaster Colony Corp. 1,134 43,659 Matthews International Corp. Class A 1,037 28,310 Penn Engineering & Manufacturing Corp. 800 15,600 Pittston Brink's Group 1,860 51,187 Roper Industries, Inc. 1,086 49,945 SPS Technologies, Inc. (b) 437 17,095 Standex International Corp. 154 3,992 Tredegar Industries, Inc. 306 7,023 U.S. Industries, Inc. (b) 1,589 5,720 USG Corp. 1,800 12,690 Vans, Inc. (b) 900 10,962 -------- 552,782 --------
2002 SEMIANNUAL REPORT 44
COMMON STOCKS (continued) =============================================================== SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== MEDICAL EQUIPMENT & SUPPLIES (1.9%) Advanced Neuromodulation Systems, Inc. (b) 400 $ 12,388 Allscripts Healthcare Solution, Inc. (b) 1,618 9,789 Arrow International, Inc. 400 18,980 ATS Medical, Inc. (b) 2,584 4,935 BriteSmile, Inc. (b) 850 4,420 CardioDyamics International Corp. (b) 300 930 Conceptus, Inc. (b) 600 10,854 CONMED Corp. (b) 1,055 28,485 Cyberonics, Inc. (b) 830 11,247 Durect Corp. (b) 200 1,682 Edwards Lifesciences Corp. (b) 2,096 52,651 Fisher Scientific International, Inc. (b) 1,991 56,703 ICU Medical, Inc. (b) 450 17,105 IDX Systems Corp. (b) 800 13,816 IMPATH, Inc. (b) 626 14,817 INAMED Corp. (b) 467 17,200 Intuitive Surgical, Inc. (b) 1,038 10,536 Landauer, Inc. 122 5,002 Med-Design Corp. (b) 574 8,036 Mentor Corp. 762 30,518 Ocular Sciences, Inc. (b) 601 18,000 OraSure Technologies, Inc. (b) 1,041 7,620 Possis Medical, Inc. (b) 812 12,724 PSS World Medical, Inc. (b) 2,423 23,988 Respironics, Inc. (b) 1,067 34,987 Serologicals Corp. (b) 1,028 21,084 STERIS Corp. (b) 2,357 52,208 Surmodics, Inc. (b) 504 20,498 Sybron Dental Specialties, Inc. (b) 1,300 25,610 Techne Corp. (b) 1,471 39,261 The Cooper Co., Inc. 500 26,500 Vasomedical, Inc. (b) 800 2,104 VISX, Inc. (b) 1,679 27,485 Vital Signs, Inc. 230 8,855 Zoll Medical Corp. (b) 311 11,824 -------- 662,842 -------- =============================================================== MEDICAL LABORATORIES (0.0%) Specialty Laboratories, Inc. (b) 276 2,456 -------- =============================================================== METAL PROCESSORS (0.6%) A.M. Castle & Co. 700 8,050 Commercial Metals Co. 373 16,714 Kaydon Corp. 948 27,009 Ladish Co., Inc. (b) 900 9,314 Mueller Industries, Inc. (b) 1,061 36,169 NN, Inc. 935 10,472 Quanex Corp. 670 24,120 Rohn Industries, Inc. (b) 3,400 4,281 Tremont Corp. 200 5,896 Valmont Industries, Inc. 800 16,552 Worthington Industries, Inc. 2,440 36,112 -------- 194,689 -------- SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== METALS (0.2%) Brush Engineered Materials, Inc. 296 $ 3,818 Century Aluminum Co. 666 10,097 Cleveland-Cliffs, Inc. 232 6,264 Kaiser Aluminum Corp. (b) 2,300 184 RTI International Metals, Inc. (b) 300 3,945 Southern Peru Copper Corp. 158 2,283 Stepan Co. 400 11,100 Stillwater Mining Co. (b) 1,308 22,955 USEC, Inc. 3,000 20,520 -------- 81,166 -------- =============================================================== NATURAL GAS (0.3%) Airgas, Inc. (b) 2,100 34,630 EEX Corp. (b) 3,038 6,015 Southern Union Co. (b) 1,200 21,000 St. Mary Land & Exploration Co. 1,218 29,463 Syntroleum Corp. (b) 1,378 7,620 The Laclede Group, Inc. 600 14,670 -------- 113,398 -------- =============================================================== OFFICE EQUIPMENT & SUPPLIES (0.4%) CompX International, Inc. 791 11,034 Global Imaging Systems, Inc. (b) 300 5,724 IKON Office Solutions, Inc. 5,148 66,924 Interface, Inc. 765 6,158 John H. Harland Co. 1,166 35,097 Micro General Corp. (b) 200 3,286 School Specialty, Inc. (b) 682 19,348 Standard Register Co. 234 7,488 -------- 155,059 -------- =============================================================== OIL & GAS (2.0%) 3TEC Energy Corp. (b) 179 3,199 Atwood Oceanics, Inc. (b) 410 18,840 Berry Petroleum Co. 300 5,100 Cabot Oil & Gas Corp. 998 25,080 Cal Dive International, Inc. (b) 1,175 30,433 Chesapeake Energy Corp. (b) 4,991 42,672 Clayton Williams Energy, Inc. (b) 651 8,626 Comstock Resources, Inc. (b) 119 1,101 Emex Corp. (b) 1,658 4,162 Energy Partners Ltd. (b) 300 2,577 Evergreen Resources, Inc. (b) 600 26,850 Grey Wolf, Inc. (b) 5,941 27,032 Horizon Offshore, Inc. (b) 791 7,831 KCS Energy, Inc. (b) 1,206 4,438 Key Production Co., Inc. (b) 710 15,194 Magnum Hunter Resources, Inc. (b) 2,200 16,258 Newpark Resources, Inc. (b) 2,384 19,954 Nuevo Energy Co. (b) 145 2,277 Oceaneering International, Inc. (b) 950 25,175 OSCA, Inc. (b) 409 11,427
2002 SEMIANNUAL REPORT 45 STATEMENTS OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ====================================================================
NATIONWIDE SMALL CAP INDEX FUND (Continued) COMMON STOCKS (continued) ==================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== OIL & GAS (continued) Parker Drilling Co. (b) 3,037 $ 12,998 Patina Oil & Gas Corp. 642 23,240 Penn Virginia Corp. 400 15,320 Petroquest Energy, Inc. (b) 1,414 9,601 Plains Resources, Inc. (b) 800 21,920 Prima Energy Corp. (b) 431 10,732 Pure Resources, Inc. (b) 197 4,649 PYR Energy Corp. (b) 2,600 3,666 Quaker Chemical Corp. 500 11,500 Quicksilver Resources, Inc. (b) 590 14,396 Quiksilver Resources, Inc. (b) 784 19,130 Range Resources Corp. (b) 563 3,254 Remington Oil & Gas Corp. (b) 880 17,908 RPC, Inc. 201 3,154 Spinnaker Exploration Co. (b) 724 31,023 Stone Energy Corp. (b) 741 31,418 Swift Energy Co. (b) 834 15,821 Tesoro Petroleum Corp. (b) 1,600 18,080 The Houston Exploration Co. (b) 200 6,198 Tom Brown, Inc. (b) 1,273 36,917 Unit Corp. (b) 1,200 23,424 Valero Energy Corp. 100 4,316 Vintage Petroleum, Inc. 1,800 24,840 Westport Resources Corp. (b) 1,100 22,792 -------- 684,523 -------- ==================================================================== OIL EQUIPMENT & SERVICES (0.8%) CARBO Ceramics, Inc. 300 11,304 Dril-Quip, Inc. (b) 113 2,791 Frontier Oil Corp. 962 20,202 Hydril Co. (b) 200 5,104 Key Energy Services, Inc. (b) 3,575 43,436 Lone Star Technologies, Inc. (b) 834 22,226 Pennzoil-Quaker State Co. 2,899 62,648 SEACOR SMIT, Inc. (b) 611 29,389 SJW Corp. 100 8,450 Superior Energy Services, Inc. (b) 1,584 17,677 TETRA Technologies, Inc. (b) 239 6,845 TRC Cos., Inc. (b) 100 2,280 Veritas DGC, Inc. (b) 1,067 19,313 W-H Energy Services, Inc. (b) 643 16,557 WD-40 Co. 734 20,068 -------- 288,290 -------- ==================================================================== OIL FIELD MACHINERY & EQUIPMENT (0.0%) Universal Compression Holdings, Inc. (b) 600 14,730 -------- ==================================================================== PAPER & FOREST PRODUCTS (0.8%) AEP Industries, Inc. (b) 200 6,220 Buckeye Technologies, Inc. (b) 290 3,187 Caraustar Industries, Inc. 1,531 17,300 SHARES OR PRINCIPAL AMOUNT VALUE ==================================================================== Chesapeake Corp. 670 $ 18,392 Deltic Timber Corp. 156 5,226 Glatfelter 165 2,892 Longview Fibre Co. 1,831 18,402 Louisiana-Pacific Corp. 3,705 43,349 Penton Media, Inc. 400 2,640 Pope & Talbot, Inc. 200 2,860 Potlatch Corp. 988 34,106 Rayonier, Inc. 963 56,498 Rock-Tenn Co. 700 10,696 Schweitzer-Mauduit International, Inc. 275 7,769 Universal Forest Products, Inc. 600 15,000 Wausau-Mosinee Paper Corp. 1,524 19,827 -------- 264,364 -------- ==================================================================== PHARMACEUTICALS (1.6%) Alexion Pharmaceuticals, Inc. (b) 729 13,472 Array BioPharma, Inc. (b) 300 2,931 AVANIR Pharmaceuticals (b) 500 1,375 AVI BioPharma, Inc. (b) 712 5,126 BioMarin Pharmaceutical, Inc. (b) 1,500 9,045 Biopure Corp. (b) 853 7,634 Cell Genesys, Inc. (b) 1,400 19,894 Cell Pathways, Inc. (b) 459 1,579 CIMA Labs, Inc. (b) 328 6,550 Corixa Corp. (b) 1,629 8,943 Corvas International, Inc. (b) 1,432 4,496 Cubist Pharmaceuticals, Inc. (b) 990 13,840 Dendreon Corp. (b) 1,282 5,551 Emisphere Technologies, Inc. (b) 724 11,092 First Horizon Pharmaceutical Corp. (b) 200 5,208 Geron Corp. (b) 1,037 8,213 ILEX Oncology, Inc. (b) 1,078 17,668 Immune Response Corp. (b) 4,217 2,277 ImmunoGen, Inc. (b) 1,429 11,775 Impax Laboratories, Inc. (b) 100 690 Indevus Pharmaceuticals, Inc. (b) 1,712 11,693 Inkine Pharmaceutical Co., Inc. (b) 3,300 4,917 Inspire Pharmaceuticals, Inc. (b) 1,559 4,864 Isis Pharmaceuticals, Inc. (b) 1,370 17,344 K-V Pharmaceutical Co. (b) 800 25,280 Kos Pharmaceuticals, Inc. (b) 268 6,968 La Jolla Pharmaceutical Co. (b) 500 3,635 Large Scale Biology Corp. (b) 900 2,393 MacroChem Corp. (b) 901 2,008 Medical Co. (b) 473 4,635 Miravant Medical Technologies (b) 195 179 NeoPharm, Inc. (b) 600 8,994 Neurocrine Biosciences, Inc. (b) 947 31,148 Noven Pharmaceuticals, Inc. (b) 800 16,072 Onyx Pharmaceuticals, Inc. (b) 900 7,155 Pain Therapeutics, Inc. (b) 1,000 10,050
2002 SEMIANNUAL REPORT 46
COMMON STOCKS (continued) ============================================================ SHARES OR PRINCIPAL AMOUNT VALUE ============================================================ PHARMACEUTICALS (continued) Paradigm Genetics, Inc. (b) 3,400 $ 6,154 Parexel International Corp. (b) 1,078 16,784 Penwest Pharmaceuticals Co. (b) 300 5,994 Peregrine Pharmaceuticals, Inc. (b) 3,073 5,224 Perrigo Co. (b) 2,710 33,822 Pharmaceutical Resources, Inc. (b) 500 12,500 Pharmacopeia, Inc. (b) 916 10,626 Pharmacyclics, Inc. (b) 989 6,082 POZEN, Inc. (b) 1,300 6,383 PRAECIS Pharmaceuticals, Inc. (b) 2,533 9,068 Regeneron Pharmaceuticals, Inc. (b) 1,017 21,001 SangStat Medical Corp. (b) 965 22,485 SuperGen, Inc. (b) 786 4,268 Telik, Inc. (b) 968 10,067 Theragenics Corp. (b) 1,186 10,650 Titan Pharmaceuticals, Inc. (b) 436 2,725 Transkaryotic Therapies, Inc. (b) 1,074 42,811 Triangle Pharmaceuticals, Inc. (b) 1,000 4,900 United Therapeutics Corp. (b) 831 9,964 VaxGen, Inc. (b) 453 4,131 Viropharma, Inc. (b) 830 2,905 -------- 563,238 -------- ============================================================ PHOTOGRAPHIC (0.0%) Concord Camera Corp. (b) 1,424 10,965 -------- ============================================================ PIPELINES (0.1%) 6,734 TransMontaigne, Inc. (b) 1,254 26,992 Western Gas Resources, Inc. 700 33,726 -------- 563,238 -------- ============================================================ POLLUTION CONTROL (0.3%) Calgon Carbon Corp. 548 4,932 Casella Waste Systems, Inc. Class A (b) 973 12,017 Lydall, Inc. (b) 200 2,902 Stericycle, Inc. (b) 600 40,517 Waste Connections, Inc. (b) 953 33,641 -------- 94,009 -------- ============================================================ PRINTING & PUBLISHING (0.7%) Banta Corp. 917 34,479 Bowne & Co., Inc. 1,158 18,412 Information Holdings, Inc. (b) 700 21,840 John Wiley & Sons, Inc. 1,604 42,667 Journal Register Co. (b) 959 20,762 Mail-Well, Inc. (b) 691 4,326 Playboy Enterprises, Inc. (b) 234 3,072 Presstek, Inc. (b) 536 4,020 ProQuest Co. (b) 450 18,315 Pulitzer, Inc. 272 14,144 Scholastic Corp. (b) 1,017 51,593 -------- 233,630 -------- SHARES OR PRINCIPAL AMOUNT VALUE ============================================================ RADIO (0.2%) Beasley Broadcast Group, Inc. (b) 630 $ 10,395 Morgan Group Holding Co. (b) 162 164 Saga Communications, Inc. (b) 100 2,798 Sirius Satellite Radio, Inc. (b) 4,305 19,329 Spanish Broadcasting System, Inc. (b) 1,564 25,102 -------- 57,788 -------- ============================================================ RAILROADS (0.1%) Florida East Coast Industries, Inc. 819 22,850 -------- ============================================================ REAL ESTATE (0.4%) American Realty Investors, Inc. (b) 600 5,502 Avatar Holdings, Inc. (b) 400 10,800 Forest City Enterprises, Inc. Class A 950 36,527 Getty Realty Corp. 700 13,195 Insignia Financial Group, Inc. (b) 320 3,498 Jones Lang LaSalle, Inc. (b) 1,100 24,596 LNR Property Corp. 746 27,304 Trammell Crow Co. (b) 398 5,540 -------- 126,962 -------- ============================================================ REAL ESTATE INVESTMENT TRUSTS (5.8%) Acadia Realty Trust 1,699 11,774 Alexandria Real Estate Equities, Inc. 500 22,850 Amli Residential Properties Trust 200 5,080 Annaly Mortgage Management, Inc. 2,837 51,633 Anthracite Capital, Inc. 1,200 13,776 Bedford Property Investors, Inc. 550 14,597 Brandywine Realty Trust 904 21,597 BRE Properties, Inc. Class A 1,619 52,861 Burnham Pacific Properties, Inc. 234 360 Camden Property Trust 1,312 52,219 Capital Automotive REIT 864 20,909 Capstead Mortgage Corp. 600 13,500 CBL & Associates Properties, Inc. 841 30,781 CenterPoint Properties Trust 769 42,064 Chateau Communities, Inc. 1,000 30,600 Chelsea Property Group, Inc. 605 36,572 Colonial Properties Trust 535 19,463 Commercial Net Lease Realty 1,500 22,785 Cornerstone Realty Income Trust, Inc. 1,607 17,918 Corporate Office Properties Trust 900 12,141 Corrections Corporation of America (b) 832 14,352 Cousins Properties, Inc. 1,285 34,695 Developers Diversified Realty Corp. 1,962 43,360 EastGroup Properties, Inc. 300 7,485 Entertainment Properties Trust 340 7,871 Equity Inns, Inc. 600 4,824 Essex Property Trust, Inc. 529 27,508 Federal Realty Investment Trust 1,213 32,690 FelCor Lodging Trust, Inc. 1,100 23,650
2002 SEMIANNUAL REPORT 47 STATEMENTS OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) =================================================================
NATIONWIDE SMALL CAP INDEX FUND (Continued) COMMON STOCKS (continued) ================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= REAL ESTATE INVESTMENT TRUSTS (continued) First Industrial Realty Trust, Inc. 1,407 $ 47,374 Gables Residential Trust 909 28,179 Glenborough Realty Trust, Inc. 952 21,372 Glimcher Realty Trust 1,195 23,243 Great Lakes REIT 198 3,208 Health Care REIT, Inc. 1,100 31,020 Healthcare Realty Trust, Inc. 1,414 42,844 Home Properties of New York, Inc. 711 25,610 HRPT Properties Trust 4,623 40,128 Innkeepers USA Trust 271 3,108 Investors Real Estate Trust 1,400 14,042 IRT Property Co. 600 7,248 JDN Realty Corp. 1,000 12,670 JP Realty, Inc. 600 15,834 Keystone Property Trust 96 1,449 Kilroy Realty Corp. 822 23,139 Koger Equity 1,200 21,984 Kramont Realty Trust 300 4,260 La Quinta Corp. (b) 4,627 36,923 LaSalle Hotel Properties 804 12,864 Lexington Corporate Properties Trust 400 6,340 Manufactured Home Communities, Inc. 538 18,088 MeriStar Hospitality Corp. 1,379 24,201 Mid-America Apartment Communities, Inc. 312 8,343 Mills Corp. 622 17,117 National Golf Properties, Inc. 832 6,265 National Health Investors, Inc. 337 5,291 Nationwide Health Properties, Inc. 1,735 32,271 Pan Pacific Retail Properties, Inc. 800 25,352 Parkway Properties, Inc. 100 3,651 Pennsylvania Real Estate Investment Trust 200 5,140 Pinnacle Holdings, Inc. (b) 2,119 106 Post Properties, Inc. 1,314 44,663 Prentiss Properties Trust 1,329 40,867 Prime Group Realty Trust 91 760 PS Business Parks, Inc. 235 8,448 Realty Income Corp. 1,179 39,791 Reckson Associates Realty Corp. 1,300 31,720 Redwood Trust, Inc. 405 11,684 Regency Centers Corp. 806 23,696 RFS Hotel Investors, Inc. 1,071 16,258 Saul Centers, Inc. 145 3,429 Senior Housing Properties Trust 1,400 20,146 Shurgard Storage Centers, Inc. Class A 1,131 39,868 SL Green Realty Corp. 1,000 35,100 Sovran Self Storage, Inc. 600 18,480 Summit Properties, Inc. 1,046 24,476 Sun Communities, Inc. 585 23,751 Tanger Factory Outlet Centers, Inc. 387 10,139 Taubman Centers, Inc. 1,099 16,430 The Macerich Co. 1,100 32,285 Thornburg Mortgage, Inc. 1,400 29,596 SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= REAL ESTATE INVESTMENT TRUSTS (continued) Town & Country Trust 251 5,648 U.S. Restaurant Properties, Inc. 1,200 16,776 United Dominion Realty Trust, Inc. 3,655 61,040 Universal Health Realty Income Trust 373 9,120 Ventas, Inc. 2,048 27,648 Washington Real Estate Investment Trust 1,400 39,340 Weingarten Realty Investors 1,461 52,012 Winston Hotels, Inc. 1,145 10,923 ---------- 1,952,673 ---------- ================================================================= RECREATIONAL VEHICLES & BOATS (0.3%) Arctic Cat, Inc. 876 17,029 Coachmen Industries, Inc. 200 3,700 Polaris Industries, Inc. 827 62,273 Thor Industries, Inc. 330 19,553 ---------- 102,555 ---------- ================================================================= RESEARCH & DEVELOPMENT (0.5%) aaiPharma, Inc. (b) 500 13,965 Acacia Research Corp. (b) 420 4,427 Albany Molecular Research, Inc. (b) 737 17,872 Antigenics, Inc. (b) 788 9,267 Biosite, Inc. (b) 600 18,750 EntreMed, Inc. (b) 638 4,976 Forrester Research, Inc. (b) 681 12,428 Gene Logic, Inc. (b) 948 14,722 Kendle International, Inc. (b) 200 3,398 MGI PHARMA, Inc. (b) 981 7,142 Neurogen Corp. (b) 543 6,407 Orchid BioSciences, Inc. (b) 641 1,481 Organogenesis, Inc. (b) 502 241 Regeneration Technologies, Inc. (b) 135 911 Trimeris, Inc. (b) 708 33,949 Versicor, Inc. (b) 694 8,696 ---------- 158,632 ---------- ================================================================= RESIDENTIAL BUILDING CONSTRUCTION (0.6%) Ameron International Corp. 100 7,385 Butler Manufacturing Co. 300 8,346 Dycom Industries, Inc. (b) 1,598 24,178 Elcor Corp. 643 17,348 Insituform Technologies, Inc. (b) 894 22,216 M/I Schottenstein Homes, Inc. 300 18,960 Nortek, Inc. (b) 500 22,120 Standard Pacific Corp. 883 29,642 Toll Brothers, Inc. (b) 1,662 49,445 ---------- 199,640 ---------- ================================================================= RESTAURANTS (1.4%) AFC Enterprises, Inc. (b) 200 6,726 Applebee's International, Inc. 1,191 46,497
2002 SEMIANNUAL REPORT 48
COMMON STOCKS (CONTINUED) =================================================================== SHARES OR PRINCIPAL AMOUNT VALUE =================================================================== RESTAURANTS (continued) Bob Evans Farms, Inc. 1,534 $ 46,634 BUCA, Inc. (b) 638 10,846 California Pizza Kitchen, Inc. (b) 500 11,700 Cheesecake Factory, Inc. (b) 1,346 56,033 IHOP Corp. (b) 600 21,810 Jack in the Box, Inc. (b) 1,302 41,573 Landry's Restaurants, Inc. 651 18,033 Lone Star Steakhouse & Saloon, Inc. 922 17,979 Luby's, Inc. (b) 416 2,912 O'Charley's, Inc. (b) 708 17,884 P.F. Chang's China Bistro, Inc. (b) 300 21,735 Panera Bread Co. (b) 400 26,828 Papa John's International, Inc. (b) 500 15,550 Ruby Tuesday, Inc. 2,291 57,549 Ryan Family Steak Houses, Inc. (b) 1,035 27,117 Sonic Corp. (b) 1,130 33,106 The Steak n Shake Co. (b) 400 5,592 -------- 486,104 -------- =================================================================== RETAIL (4.5%) 1-800-FLOWERS.COM (b) 600 8,274 7-Eleven, Inc. (b) 421 3,848 99 CENTS Only Stores (b) 1,273 39,565 Alexander's, Inc. (b) 200 13,410 AnnTaylor Stores Corp. (b) 900 39,123 Building Materials Holding Corp. (b) 100 1,501 Casey's General Stores, Inc. 1,847 24,048 Cash America International, Inc. 300 2,991 Cato Corp. 694 17,766 CBRL Group, Inc. 2,017 61,216 CEC Entertainment, Inc. (b) 977 45,137 Charlotte Russe Holding, Inc. (b) 700 19,698 Chico's FAS, Inc. (b) 1,172 42,286 Christopher & Banks Corp. (b) 748 27,803 Circuit City Stores - CarMax Group (b) 1,229 36,256 Claire's Stores, Inc. 1,453 31,356 Copart, Inc. (b) 2,230 34,320 Cost Plus, Inc. (b) 700 20,615 CSK Auto Corp. (b) 600 9,150 dELIA'S Corp. (b) 300 1,977 Dillards, Inc. Class A 2,220 54,368 Dress Barn, Inc. (b) 374 11,220 Duane Reade, Inc. (b) 200 6,350 Electronics Boutique Holdings Corp. (b) 267 7,593 Factory 2-U Stores, Inc. (b) 362 5,014 Fossil, Inc. (b) 588 16,317 Fred's, Inc. 759 29,544 Friedman's, Inc. Class A 1,100 14,607 Genesco, Inc. (b) 800 22,280 Group 1 Automotive, Inc. (b) 595 26,085 Guitar Center, Inc. (b) 917 18,102 Gymboree Corp. (b) 1,242 22,654
SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================= RETAIL (continued) Hancock Fabrics, Inc. 300 $ 5,457 Haverty Furniture Cos., Inc. 800 15,120 Hollywood Entertainment Corp. (b) 1,500 30,960 Insight Enterprises, Inc. (b) 1,385 36,149 InterTan, Inc. (b) 515 6,257 J. Jill Group, Inc. (b) (b) 492 15,518 Lands' End, Inc. (b) 417 20,971 Linens 'n Things, Inc. (b) 1,228 42,612 Men's Wearhouse, Inc. (b) 1,119 27,550 Michaels Stores, Inc. (b) 2,376 96,108 Movado Group, Inc. 100 2,280 Movie Gallery, Inc. (b) 435 8,730 MSC Industrial Direct Co., Inc. Class A (b) 1,385 29,431 National Service Industries, Inc. 236 2,402 O'Reilly Automotive, Inc. (b) 1,263 40,909 OfficeMax, Inc. (b) 4,683 29,409 PETsMART, Inc. (b) 3,553 53,366 Pier 1 Imports, Inc. 3,365 80,591 RARE Hospitality International, Inc. (b) 700 19,600 Regis Corp. 1,254 37,695 Rent-Way, Inc. (b) 225 2,149 ShopKo Stores, Inc. (b) 1,300 27,079 Smart & Final, Inc. (b) 215 1,967 Sonic Automotive, Inc. (b) 775 29,799 Spiegel, Inc. Class A 2,490 3,511 Stein Mart, Inc. (b) 453 5,345 The Children's Place Retail Store, Inc. (b) 300 10,386 Too, Inc. (b) 1,086 32,743 Trans World Entertainment Corp. (b) 505 4,091 Triarc Cos., Inc. (b) 395 11,060 Tuesday Morning Corp. (b) 82 2,185 Tweeter Home Entertainment Group, Inc. (b) 500 8,255 Ultimate Electronics, Inc. (b) 438 12,658 Urban Outfitters, Inc. (b) 300 9,072 WESCO International, Inc. (b) 1,700 12,155 Zale Corp. (b) 1,151 45,718 ---------- 1,533,762 ---------- ========================================================================= RETAIL / FOOD & DRUG (0.4%) Arden Group, Inc. Class A (b) 268 17,206 Herbalife International, Inc. Class A 1,254 23,889 Ingles Markets, Inc. Class A 141 1,699 Longs Drug Stores Corp. 1,100 33,264 Nash-Finch Co. 323 9,690 Pathmark Stores, Inc. (b) 1,058 23,593 Ruddick Corp. 1,123 19,181 Spartan Stores, Inc. (b) 235 1,875 United Natural Foods, Inc. (b) 584 13,987 Wild Oats Markets, Inc. (b) 953 10,464 ---------- 154,848 ----------
2002 SEMIANNUAL REPORT 49
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) =================================================================== NATIONWIDE SMALL CAP INDEX FUND (Continued) =================================================================== COMMON STOCKS (CONTINUED) =================================================================== SHARES OR PRINCIPAL AMOUNT VALUE =================================================================== SEMICONDUCTORS (2.9%) Actel Corp. (b) 831 $20,193 Alliance Semiconductor Corp. (b) 1,231 13,122 Alpha Industries, Inc. (b) 1,567 19,196 Artisan Components, Inc. (b) 300 4,422 AstroPower, Inc. (b) 400 14,888 Asyst Technologies, Inc. (b) 1,200 19,680 ATMI, Inc. (b) 991 30,226 AXT, Inc. (b) 374 4,338 Caliper Technologies Corp. (b) 1,000 10,530 ChipPac, Inc. (b) 1,349 12,343 COHU, Inc. 951 26,638 Credence Systems Corp. (b) 2,062 41,735 Cymer, Inc. (b) 1,105 52,232 DuPont Photomasks, Inc. (b) 100 3,898 Elantec Semiconductor, Inc. (b) 836 34,560 Electroglas, Inc. (b) 759 12,759 EMCORE Corp. (b) 700 6,195 Entegris, Inc. (b) 1,400 22,050 ESS Technology, Inc. (b) 1,100 17,567 Exar Corp. (b) 1,327 26,460 FEI Co. (b) 500 13,215 FSI International, Inc. (b) 830 9,902 GlobespanVirata, Inc. (b) 3,717 21,930 Helix Technology Corp. 1,000 27,060 hi/fn, Inc. (b) 145 1,537 Integrated Circuit Systems, Inc. (b) 1,000 19,900 Ixia (b) 1,071 9,211 IXYS Corp. (b) 402 3,393 JNI Corp. (b) 860 5,418 Kopin Corp. (b) 2,200 17,468 LTX Corp. (b) 1,753 37,181 Mattson Technology, Inc. (b) 500 4,290 MEMC Electronic Materials, Inc. (b) 2,400 19,440 Microsemi Corp. (b) 909 12,044 Microtune, Inc. (b) 991 11,050 Microvision, Inc. (b) 344 3,801 MIPS Technologies, Inc. (b) 1,511 9,217 MKS Instruments, Inc. (b) 720 24,401 Nanometrics, Inc. (b) 322 6,095 New Focus, Inc. (b) 2,732 8,059 Oak Technology, Inc. (b) 1,600 22,768 On Semiconductor Corp. (b) 2,400 8,736 Oplink Communications, Inc. (b) 3,781 4,840 Optical Communication Products, Inc. (b) 617 1,407 Pericom Semiconductor Corp. (b) 450 6,422 Photronics Corp. (b) 941 31,006 Pixelworks, Inc. (b) 550 5,484 Power Integrations, Inc. (b) 865 18,295 PRI Automation, Inc. (b) 826 15,355 Rudolph Technologies, Inc. (b) 300 9,150 Semitool, Inc. (b) 272 3,846 Silicon Image, Inc. (b) 2,300 22,195
SHARES OR PRINCIPAL AMOUNT VALUE =================================================================== SEMICONDUCTORS (continued) Silicon Laboratories, Inc. (b) 300 $ 8,868 Silicon Storage Technology, Inc. (b) 2,742 27,201 SIPEX Corp. (b) 600 5,874 SONICblue, Inc. (b) 3,575 6,971 Stratos Lightwave, Inc. (b) 1,789 4,938 Supertex, Inc. (b) 152 2,911 Teradyne, Inc. (b) 89 2,933 Therma-Wave, Inc. (b) 808 11,425 Three-Five Systems, Inc. (b) 400 5,600 Transwitch Corp. (b) 4,191 6,999 Trikon Technologies, Inc. (b) 200 2,808 TriQuint Semiconductor, Inc. (b) 4,709 47,749 Ultratech Stepper, Inc. (b) 900 15,363 Veeco Instruments, Inc. (b) 1,008 29,867 Virage Logic Corp. (b) 100 1,800 Xicor, Inc. (b) 1,166 11,660 ---------- 1,000,115 ---------- =================================================================== SERVICES (1.8%) APAC Customer Services, Inc. (b) 344 1,245 Arbitron, Inc. (b) 1,081 37,154 Boron, LePore & Associates, Inc. (b) 617 7,342 Central Parking Corp. 400 10,528 Chemed Corp. 178 6,835 Coinstar, Inc. (b) 738 23,786 CPI Corp. 535 10,165 Digital Think, Inc. (b) 300 306 Encompass Service Corp. (b) 1,948 3,467 FTI Consulting, Inc. (b) 505 18,089 GTECH Holdings Corp. (b) 923 55,297 J.D. Edwards & Co. (b) 3,768 41,825 Kroll, Inc. (b) 700 12,978 Labor Ready, Inc. (b) 2,194 19,746 Liberty Livewire Corp. (b) 938 3,714 Manhattan Associates, Inc. (b) 500 15,790 MasTec, Inc. (b) 400 3,112 NaPro BioTherapeutics, Inc. (b) 1,200 8,340 National Healthcare Corp. (b) 300 5,325 NDCHealth Corp. 1,198 38,540 Novadigm, Inc. (b) 197 1,330 Perot Systems Corp. Class A (b) 2,184 38,875 Rent-A-Center, Inc. (b) 300 18,090 Rollins, Inc. 448 9,050 Ryder System, Inc. 1,861 52,778 Secure Computing Corp. (b) 1,084 13,626 Shuffle Master, Inc. (b) 400 9,160 SignalSoft Corp. (b) 3,200 3,744 Sotheby's Holdings, Inc. (b) 888 13,089 Stewart Enterprises, Inc. Class A (b) 3,264 19,617 Syncor International Corp. (b) 700 21,882 Tetra Tech, Inc. (b) 1,643 23,429 The Corporate Executive Board Co. (b) 1,274 48,412
2002 SEMIANNUAL REPORT 50 COMMON STOCKS (CONTINUED)
SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== SERVICES (continued) Trico Marine Services, Inc. (b) 417 $ 3,411 URS Corp. (b) 621 19,127 Wackenhut Corp. Class A (b) 505 16,660 -------- 635,864 -------- =============================================================================== STEEL (0.3%) Bethlehem Steel Corp. (b) 4,772 1,909 Carpenter Technology Corp. 724 19,186 Gibraltar Steel Corp. 489 11,188 Maverick Tube Corp. (b) 1,139 20,673 NS Group, Inc. (b) 146 1,456 Oregon Steel Mills, Inc. (b) 1,129 8,332 Reliance Steel & Aluminum Co. 800 25,800 Ryerson Tull, Inc. 199 2,338 Steel Dynamics, Inc. (b) 1,225 21,376 -------- 112,258 -------- =============================================================================== TECHNOLOGY (2.1%) Alliant Techsystems, Inc. (b) 746 80,343 AMETEK, Inc. 1,206 46,708 Andrew Corp. (b) 2,957 49,057 Benchmark Electronics, Inc. (b) 741 22,526 Black Box Corp. (b) 747 34,952 CommScope, Inc. (b) 1,812 28,775 CTS Corp. 1,080 18,522 Datastream Systems, Inc. (b) 308 2,461 Dionex Corp. (b) 752 18,522 Eden Bioscience Corp. (b) 2,400 6,960 IGEN International, Inc. (b) 551 22,789 Input/Output, Inc. (b) 1,181 10,688 Intergraph Corp. (b) 1,704 28,968 Kronos, Inc. (b) 722 29,329 Kulicke & Soffa Industries, Inc. (b) 1,668 30,258 Macromedia, Inc. (b) 2,129 47,668 Mechanical Technology, Inc. (b) 465 1,335 Medis Technologies, Inc. (b) 360 2,401 Micros Systems, Inc. (b) 433 12,124 Numerical Technologies, Inc. (b) 500 6,520 Orbital Sciences Corp. (b) 1,522 10,152 ParkerVision, Inc. (b) 139 3,150 Plantronics, Inc. (b) 1,149 24,198 Plexus Corp. (b) 1,545 38,610 Progress Software Corp. (b) 1,274 21,467 Puma Technology, Inc. (b) 526 526 Seitel, Inc. (b) 1,447 11,648 Sri/Surgical Express Inc. (b) 300 4,218 Symmetricom, Inc. (b) 968 6,195 Varian Semiconductor Equipment Associates, Inc. (b) 1,144 53,448 Varian, Inc. (b) 1,124 37,924 Wilson Greatbatch Technologies, Inc. (b) 100 2,625 -------- 715,067 --------
SHARES OR PRINCIPAL AMOUNT VALUE =========================================================================== TELECOMMUNICATIONS (1.1%) Adelphia Business Solutions, Inc. (b) 504 $ 10 ADTRAN, Inc. (b) 700 17,402 Aehter Systems, Inc. (b) 1,500 4,995 AirGate PCS, Inc. (b) 593 8,480 Alamosa Holdings, Inc. (b) 2,059 10,521 Alaska Communications Systems Holdings, Inc. (b) 951 6,086 Align Technology, Inc. (b) 1,100 4,235 Anaren Microwave, Inc. (b) 563 7,111 Arris Group, Inc. (b) 1,800 15,624 Aspect Communications Corp. (b) 600 2,874 AT&T Latin America Corp. (b) 3,621 4,707 Avici Systems, Inc. (b) 1,500 2,865 Aware, Inc. (b) 200 1,000 Boston Communications Group, Inc. (b) 1,079 10,574 Carrier Access Corp. (b) 1,208 3,660 Celeritek, Inc. (b) 646 6,654 Centillium Communications, Inc. (b) 604 7,018 Commonwealth Telephone Enterprises, Inc. (b) 456 17,260 Computer Network Technology Corp. (b) 1,000 9,540 Conestoga Enterprises, Inc. 100 3,182 Copper Mountain Networks, Inc. (b) 2,422 1,817 CoSine Communications, Inc. (b) 4,827 3,331 CT Communications, Inc. 300 4,332 Digital Lightwave, Inc. (b) 171 710 Ditech Communications Corp. (b) 1,140 3,476 Dobson Communications Corp. (b) 700 1,371 General Cable Corp. 1,200 13,776 General Communication, Inc. (b) 900 8,982 Hickory Tech Corp. 548 9,195 IDT Corp. (b) 1,478 29,561 InterVoice-Brite, Inc. (b) 787 3,463 ITC DeltaCom, Inc. (b) 2,239 383 Lantronix, Inc. (b) 436 1,046 Leap Wireless International, Inc. (b) 763 5,661 Lightbridge, Inc. (b) 1,164 13,747 Lynch Interactive Corp. (b) 162 7,938 Metro One Telecommunications, Inc. (b) 608 10,822 Neon Communications, Inc. (b) 125 41 Next Level Communication, Inc. (b) 3,000 2,940 NMS Communications Corp. (b) 1,800 5,958 North Pittsburgh Systems, Inc. 1,063 17,678 Ntelos, Inc. (b) 200 560 Price Communications Corp. (b) 1,693 28,459 Rural Cellular Corp. (b) 88 326 SBA Communications Corp. (b) 2,756 7,962 SpectraSite Holdings, Inc. (b) 2,176 870 Tollgrade Communications, Inc. (b) 400 8,044 Touch America Holdings, Inc. (b) 4,006 13,580 UbiquiTel, Inc. (b) 4,000 7,360 UnitedGlobalCom, Inc. (b) 2,965 16,011 Universal Access Global Holdings, Inc. (b) 400 344 US Unwired, Inc. (b) 620 3,949
2002 SEMIANNUAL REPORT 51
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ========================================================================= NATIONWIDE SMALL CAP INDEX FUND (Continued) ========================================================================= COMMON STOCKS (CONTINUED) ========================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================= TELECOMMUNICATIONS (continued) XM Satellite Radio Holdings, Inc. Class A (b) 200 $ 2,302 XO Communications, Inc. (b) 5,400 324 -------- 380,117 -------- ========================================================================= TIRE & RUBBER (0.2%) Bandag, Inc. 287 11,072 Cooper Tire & Rubber Co. 2,215 54,932 -------- 66,004 -------- ========================================================================= TOBACCO (0.2%) DIMON, Inc. 1,845 14,207 Star Scientific, Inc. (b) 2,736 5,746 Universal Corp. 1,095 46,548 Vector Group Ltd. 600 12,690 -------- 79,191 -------- ========================================================================= TRANSPORTATION SERVICES (1.5%) Airborne, Inc. 1,642 34,055 Alexander & Baldwin, Inc. 1,752 47,602 AMERCO, Inc. (b) 100 1,752 Arkansas Best Corp. (b) 699 16,881 Atlas Air Worldwide Holdings, Inc. (b) 700 8,729 EGL, Inc. (b) 1,529 26,222 Forward Air Corp. (b) 500 13,585 Gulfmark Offshore, Inc. (b) 400 17,776 Heartland Express, Inc. (b) 1,043 20,432 Interpool, Inc. 174 3,689 J.B. Hunt Transport Services, Inc. (b) 567 14,850 Kansas City Southern Industries, Inc. (b) 2,124 33,984 Kirby Corp. (b) 644 18,064 Knight Transportation, Inc. (b) 363 7,336 Landstar System, Inc. (b) 286 27,999 Navigant International, Inc. (b) 589 10,125 Offshore Logistics, Inc. (b) 900 18,180 Overseas Shipholding Group, Inc. 971 22,178 Pegasus Solutions, Inc. (b) 966 18,711 RailAmerica, Inc. (b) 798 7,334 Roadway Corp. 645 19,673 Swift Transportation Co., Inc. (b) 2,108 41,001 USFreightways Corp. 911 30,473 Werner Enterprises, Inc. 1,340 23,785 Yellow Corp. (b) 858 23,140 -------- 507,556 -------- ========================================================================= UTILITIES (1.4%) Beacon Power Corp. (b) 1,435 560 Central Vermont Public Service Corp. 647 11,646 CH Energy Group, Inc. 663 34,072 Covanta Energy Corp. (b) 4,465 313 DQE, Inc. 2,198 42,905 Empire District Electric Co. 373 8,016
SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================================= UTILITIES (continued) FuelCell Energy, Inc. (b) 1,200 $ 20,520 Hawaiian Electric Industries, Inc. 1,233 58,246 Headwaters, Inc. (b) 604 10,751 Littlelfuse, Inc. (b) 618 16,630 Newpower Holdings, Inc. (b) 1,654 91 NorthWestern Corp. 1,100 22,627 Otter Tail Co. 900 30,600 PNM Resources, Inc. 1,353 39,237 RGS Energy Group, Inc. 1,276 50,632 Sierra Pacific Resources 3,611 25,602 UCAR International, Inc. (b) 1,900 24,700 UIL Holdings Corp. 473 26,677 UniSource Energy Corp. 1,161 23,429 WPS Resources Corp. 1,137 47,356 ----------- 494,610 ----------- ======================================================================================= WAREHOUSING (0.1%) Mobile Mini, Inc. (b) 627 20,672 ----------- ======================================================================================= WATER (0.3%) American States Water Co. 191 7,430 Cadiz, Inc. (b) 600 6,600 California Water Service Group 300 7,470 Connecticut Water Service, Inc. 411 12,014 Ionics, Inc. (b) 670 20,100 Middlesex Water Co. 412 10,197 Philadelphia Suburban Corp. 2,057 49,573 ----------- 113,384 ----------- ======================================================================================= WIRELESS EQUIPMENT (0.3%) InterDigital Communications Corp. (b) 1,906 21,633 Metawave Communications Corp. (b) 1,470 573 Powerwave Technologies, Inc. (b) 2,123 25,350 Remec, Inc. (b) 1,610 12,880 SpectraLink Corp. (b) 453 4,770 Spectrian Corp. (b) 619 6,772 Universal Electronics, Inc. (b) 756 12,587 ViaSat, Inc. (b) 769 8,174 Wireless Facilities, Inc. (b) 1,187 5,365 ----------- 98,104 ----------- TOTAL COMMON STOCKS 29,588,583 ----------- ======================================================================================= U.S. GOVERNMENT SPONSORED AND AGENCY OBLIGATIONS (1.0%) ======================================================================================= U.S. TREASURY BILL (1.0%) 1.84%, 06/20/02 (c) $ 350,000 349,204 ----------- TOTAL U.S. GOVERNMENT SPONSORED AND AGENCY OBLIGATIONS 349,204 -----------
2002 SEMIANNUAL REPORT 52 ========================================================================== WARRANTS (0.0%) ==========================================================================
SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================== OIL & GAS (0.0%) Magnum Hunter Resource, Inc., expiring 03/21/05 200 $ 186 ------ TOTAL WARRANTS 186 ------
REPURCHASE AGREEMENT (13.0%)
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, Due 05/01/02, repurchase price $4,504,769 (Fully collateralized by FNCM) $ 4,504,558 $ 4,504,558 ------------ TOTAL REPURCHASE AGREEMENT 4,504,558 ------------ TOTAL INVESTMENTS (COST $32,351,390) (A) - 99.7% 34,442,531 OTHER ASSETS IN EXCESS OF LIABILITIES - 0.3% 103,771 ------------ NET ASSETS - 100.0% $34,546,302 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 4,431,758 Unrealized depreciation (2,340,617) ------------ Net unrealized appreciation $ 2,091,141 ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security. (c) Pledged as collateral for futures. FNCM Federal National Collateralized Mortgage REIT Real Estate Investment Trust At April 30, 2002, the Fund's open long futures contracts were as follows: Unrealized Market Value Appreciation Number of Long Covered by (Depreciation) Contracts Contracts Expiration Contracts at 04/30/02 --------- ------------ ---------- ------------- --------------- 18 Russell 2000 06/20/02 $ 4,600,800 $ 34,819 SEE NOTES TO FINANCIAL STATEMENTS.
2002 SEMIANNUAL REPORT 53 NATIONWIDE INTERNATIONAL Class A Shares symbol: NIXAX INDEX FUND Class B Shares symbol: NIXBX Institutional lass symbol: NIXIX HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning 4.20%* versus 5.66% for the Morgan Stanley Capital International Europe Australasia Far East Index. For the trailing 12 months, the Fund returned -15.04%*, underperforming the Index, which returned -13.62%. For broader comparison purposes, the S&P 500 Index returned 2.31% for the six-month period. WHAT ECONOMIC/MARKET FACTORS INFLUENCED THE PORTFOLIO'S PERFORMANCE? The fourth quarter of 2001 saw tremendous rebounds from the record-setting lows of the third quarter, with November 2001 contributing a significant gain. This was mainly due to the world's commitment to moving forward and reviving the slumped economy. However, in the first quarter of 2002 the markets were on edge due to mixed earnings announcements. Despite the mixed market sentiment, demand appears to be increasing and economic activity is strengthening. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? While most countries posted positive returns in the fourth quarter of 2001, a majority of them retreated in the first quarter of 2002. In fact, 11 Europe, Australasia, and Far East countries posted negative returns. Sector performance was split, with five sectors outperforming and five sectors underperforming. In the first quarter of 2002, the technology sector saw a reversal from the previous quarter, posting the worst return (down 12.70%) despite a mild gain in March. It is believed that this negative return is due to overcapacity, which was built up during the technology boom. Energy, on the other hand, posted the greatest gain in the first quarter of 2002 (up 10.56%). This jump was a response to a rise in the oil price and a desire by investors to access companies with reliable cash flows. HOW IS THE FUND POSITIONED? It appears that an economic recovery is well on its way. Nevertheless, many current issues and factors will significantly affect the direction in which the economy could turn. With that in mind, the portfolio is expected to continue to meets its objectives of replicating the risk and returns of the benchmark index. PORTFOLIO MANAGER: FUND ASSET MANAGEMENT, L.P. - SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $79,431,534 APRIL 30, 2002
AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 INCEPTION1 ------------------------------------------------------- Class A w/o SC(2) -15.04% -15.44% w/SC(3) -19.91% -17.56% ------------------------------------------------------- Class B w/o SC(2) -15.77% -16.13% w/SC(4) -19.96% -17.21% ------------------------------------------------------- Institutional Class(5) -14.66% -15.11% -------------------------------------------------------
All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Commenced operations on December 29, 1999. 2 These returns do not reflect the effects of sales charges (SC). 3 A 5.75% front-end sales charge was deducted. 4 A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years. 5 Not subject to any sales charges. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPHIC OMITTED]
Date Class A MSCI EAFE CPI 29-Dec-99 9425 10000 10000 31-Oct-00 8197 8629 10339 31-Oct-01 6112 6499 10559 30-Apr-02 6369 6868 10675
Comparative performance of $10,000 invested in Class A shares of the Nationwide International Index Fund, the Morgan Stanley Capital International - Europe, Australasia, and Far East Index (MSCI EAFE)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The MSCI EAFE is an unmanaged index generally representative of the performance of international stock markets. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 54
STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND ========================================================================= COMMON STOCKS (90.8%) ========================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================= AUSTRALIA (3.5%) BANKS (1.4%) Australia & New Zealand Banking Group Ltd. 18,112 $ 184,602 Commonwealth Bank of Australia 13,835 244,055 Macquarie Bank Ltd. 3,494 61,167 National Australia Bank Ltd. 17,625 328,895 Suncorp-Metway Ltd. 3,654 24,665 Westpac Banking Corp. Ltd. 22,827 199,072 ---------- 1,042,456 ---------- BEVERAGES (0.0%) Southcorp Ltd. 9,759 30,448 ---------- BREWERY (0.1%) Foster's Group Ltd. 31,254 79,385 ---------- BUILDING & CONSTRUCTION (0.1%) Boral Ltd. 157 312 CSR Ltd. 14,279 46,774 James Hardie Industries NV 985 3,311 ---------- 50,397 ---------- COMMERCIAL SERVICES (0.1%) Brambles Industries Ltd. 14,046 75,880 Mayne Nickless Ltd. 16,200 32,014 ---------- 107,894 ---------- COMPUTER SOFTWARE / SERVICES (0.0%) Computershare Ltd. 130 182 ---------- DIVERSIFIED (0.1%) Orica Ltd. 9,722 42,810 Wesfarmers Ltd. 3,122 47,714 ---------- 90,524 ---------- ENERGY (0.1%) Australian Gas and Light Co. Ltd. 7,250 37,531 Origin Energy Ltd. 151 261 Santos Ltd. 4,482 14,128 Woodside Petroleum Ltd. 6,994 50,816 ---------- 102,736 ---------- ENTERTAINMENT (0.0%) TABCORP Holdings Ltd. 4,767 30,847 FOOD PRODUCTS (0.2%) Coles Myer Ltd. 14,252 58,318 Woolworths Ltd. 13,885 97,901 ---------- 156,219 ---------- HEALTHCARE (0.0%) Cochlear Ltd. 113 2,337 ---------- INDUSTRIAL (0.0%) OneSteel Ltd. 81 59 ----------
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== AUSTRALIA (continued) INSURANCE (0.2%) AMP Ltd. 12,970 $ 128,084 Insurance Australia Group Ltd. 10,980 19,694 QBE Insurance Group Ltd. 9,726 38,179 ---------- 185,957 ---------- INVESTMENT COMPANY (0.0%) Macquarie Infrastructure Group 18,829 33,468 METALS & MINING (0.3%) M.I.M. Holdings Ltd. 692 465 Newcrest Mining Ltd. 6,685 22,975 Rio Tinto Ltd. 4,502 87,274 WMC Ltd. 17,220 85,166 ---------- 195,880 ---------- MINERALS (0.4%) BHP Billiton Ltd. 44,307 256,962 ---------- MULTI-MEDIA (0.1%) The News Corp. Ltd. 14,893 97,250 ---------- PAPER PRODUCTS (0.1%) Amcor Ltd. 10,189 40,544 Paperlinx Ltd. 43 121 ---------- 40,665 ---------- PHARMACEUTICALS (0.0%) CSL Ltd. 1,393 29,218 ---------- PRINTING & PUBLISHING (0.0%) John Fairfax Holdings Ltd. 15,561 29,748 ---------- PROPERTY TRUST (0.1%) General Property Trust 28,394 41,931 Westfield Trust 34,878 62,744 ---------- 104,675 ---------- REAL ESTATE (0.1%) Lend Lease Corp. Ltd. 6,977 43,574 Westfield Holdings Ltd. 5,375 46,557 ---------- 90,131 ---------- TELECOMMUNICATIONS (0.1%) Telstra Corp. Ltd. 30,056 82,153 ---------- 2,839,591 ---------- ============================================================================== AUSTRIA (0.1%) AIRPORTS (0.0%) Flughafen Wien AG 4 129 ---------- BANKS (0.0%) Ersete Bank Der Oesterreichischen Sparkassen AG 245 18,324 ----------
2002 SEMIANNUAL REPORT 55
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ========================================================================= COMMON STOCKS (CONTINUED) ========================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================= AUSTRIA (continued) BUILDING & CONSTRUCTION (0.0%) Wienerberger AG 14 $ 227 -------- ENERGY (0.1%) OMV AG 293 27,590 -------- INDUSTRIAL (0.0%) VA Technologie AG 9 275 -------- MANUFACTURING (0.0%) RHI AG 6 39 -------- PAPER PRODUCTS (0.0%) Mayr-Melnhof Karton AG 7 466 -------- STEEL (0.0%) Boehler-Uddeholm AG 7 330 -------- TELECOMMUNICATIONS (0.0%) Telekom Austria AG (b) 2,998 24,989 -------- UTILITIES (0.0%) Oesterrichische Elektrizktaetswirtschafts AG 5 429 -------- WATER TREATMENTS (0.0%) BWT AG 7 178 -------- 72,976 -------- ========================================================================= BELGIUM (0.9%) BANKS (0.6%) Dexia 8,883 146,482 Fortis 12,314 282,729 KBC Bankverzekeringsholding 1,240 44,762 -------- 473,973 -------- BREWERY (0.0%) Interbrew 1,149 34,198 -------- CHEMICALS (0.0%) Solvay SA 545 36,292 -------- DIVERSIFIED (0.0%) Groupe Bruxelles Lambert SA 558 30,973 -------- PHARMACEUTICALS (0.1%) UCB SA 1,484 54,158 -------- PHOTOGRAPHIC PRODUCTS (0.0%) AGFA Gevaert NV 23 368 -------- RETAIL (0.1%) Delhaize Le Lion SA 978 46,664 -------- UTILITIES (0.1%) Electrabel SA 358 79,358 -------- 755,984 --------
SHARES OR PRINCIPAL AMOUNT VALUE =================================================================== DENMARK (0.7%) BANKS (0.2%) Danske Bank AS 7,382 $133,313 -------- BREWERY (0.0%) Carlsberg AG 208 9,088 -------- COMMERCIAL SERVICES (0.1%) Falck AS 341 40,007 ISS International Service System AS (b) 405 20,248 -------- 60,255 -------- COMPUTER SOFTWARE / SERVICES (0.0%) Software AG 498 5,946 -------- ELECTRONICS (0.1%) Vestas Wind Systems AS 1,622 53,079 -------- FOOD PRODUCTS (0.1%) Danisco AS 1,189 40,927 -------- HEALTHCARE (0.0%) Coloplast AS 176 12,586 -------- PHARMACEUTICALS (0.1%) H. Lunbeck AS 799 18,012 Novo Nordisk AS Class B 3,440 100,898 -------- 118,910 -------- TELECOMMUNICATIONS (0.1%) GN Store Nord AS (GN Great Nordic) 4,553 20,307 TDC AS 1,899 54,779 -------- 75,086 -------- TRANSPORTATION (0.0%) A/S Dampskibsselskabet Svendborg 1 9,102 D/S 1912 Class B 1 6,933 -------- 16,035 -------- 525,225 -------- =================================================================== FINLAND (1.6%) BREWERY (0.0%) Hartwall Oyj 895 25,622 -------- COMPUTER SOFTWARE / SERVICES (0.0%) TietoEnator Oyj 1,170 29,309 -------- FINANCIAL SERVICES (0.0%) Sampo Insurance Co. Oyj 4,698 36,238 -------- INDUSTRIAL (0.0%) Metso Oyj 300 3,649 -------- INSURANCE (0.0%) Pohjola Group PLC Class D 200 3,640 --------
2002 SEMIANNUAL REPORT 56 ======================================================================== COMMON STOCKS (CONTINUED) ========================================================================
SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================== FINLAND (continued) MACHINERY & EQUIPMENT (0.0%) Kone Corp. Class B 383 $ 36,272 ---------- OIL & GAS (0.0%) Fortum Oyj 6,572 36,006 ---------- PAPER PRODUCTS (0.4%) Stora Enso Oyj 8,940 113,668 UPM-Kymmene Oyg 3,476 121,530 ---------- 235,198 ---------- TELECOMMUNICATIONS (1.2%) Nokia Oyj 54,586 883,407 Sonera Oyj 7,900 35,309 ---------- 918,716 ---------- 1,324,650 ---------- ======================================================================== FRANCE (8.4%) ADVERTISING (0.1%) Publicis Groupe SA 1,336 40,811 ---------- AEROSPACE / DEFENSE (0.2%) Altran Technologies SA 876 45,783 European Aeronautic Defence and Space Co. 2,271 34,011 Thales SA 1,495 57,119 ---------- 136,913 ---------- AIRLINES (0.0%) Air France 332 5,995 ---------- AUTOMOTIVE (0.3%) PSA Peugeot Citroen 2,231 110,972 Renault SA 1,979 91,750 Valeo SA 701 30,004 ---------- 232,726 ---------- BANKS (0.8%) Banque Nationale de Paris 9,306 486,367 Societe BIC SA 107 4,185 Societe Generale 3,359 230,036 ---------- 720,588 ---------- BUILDING & CONSTRUCTION (0.6%) Castorama Dubois Investissement SA 558 31,074 Compagnie de Saint-Gobain 951 162,820 Compagnie Francaise d'Etudes et de Construction Technip SA 266 37,536 Lafarge SA 1,773 168,233 Vinci SA 1,035 66,217 ---------- 465,880 ---------- CHEMICALS (0.2%) L'Air Liquide SA 1,030 159,453 ----------
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================= FRANCE (continued) COMPUTER SOFTWARE / SERVICES (0.2%) Atos Origin SA (b) 159 $ 11,605 Business Objects SA (b) 989 32,885 Cap Gemini SA 1,340 78,184 Dassault Systems SA 204 9,162 ---------- 131,836 ---------- CONSUMER SERVICES (0.0%) Club Mediterranee SA 16 647 ---------- COSMETICS / PERSONAL CARE (0.4%) L'oreal SA 3,729 292,170 ---------- ELECTRONICS & ELECTRICAL EQUIPMENT (0.2%) Alstom 3,252 42,168 Schneider Electric SA 2,226 107,413 Thomson Multimedia (b) 1,524 41,679 ---------- 191,260 ---------- ENERGY (1.3%) TotalFinaElf SA 7,255 1,099,603 ---------- ENTERTAINMENT (0.4%) Vivendi Universal SA 9,654 307,865 ---------- FINANCIAL SERVICES (0.1%) Pernod Ricard SA 700 64,654 ---------- FOOD PRODUCTS (0.6%) Carrefour SA 5,429 237,021 Casino Guichard Perrachon SA 639 51,419 Groupe Danone 1,617 214,191 ---------- 502,631 ---------- HEALTHCARE (0.4%) Essilor International SA 1,553 63,197 Sanofi-Synthelabo SA 4,013 256,925 ---------- 320,122 ---------- HOTELS & LODGING (0.1%) Accor SA 2,709 109,507 ---------- INSURANCE (0.4%) AXA 15,445 327,757 ---------- MANUFACTURING (0.1%) Compagnie Generale des Etablissements Michelin 2,001 77,533 ---------- METALS & MINING (0.1%) Pechiney SA 1,002 48,486 ---------- PHARMACEUTICALS (0.7%) Aventis SA 7,658 544,114 ----------
2002 SEMIANNUAL REPORT 57
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ================================================================== COMMON STOCKS (CONTINUED) ================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== FRANCE (continued) PRINTING & PUBLISHING (0.1%) Lagardere S.C.A. 1,571 $ 70,102 ---------- REAL ESTATE (0.0%) Unibail SA 193 11,348 ---------- RESTAURANTS (0.1%) Sodexho Alliance SA 1,354 52,464 ---------- RETAIL (0.1%) Pinault-Printemps-Redoute SA 930 105,591 ---------- TELECOMMUNICATIONS (0.5%) Alcatel SA 11,790 147,461 Bouygues SA 1,408 42,503 France Telecom SA 3,518 85,465 LVMH Moet Louis Vuitton Hennessy SA 2,247 117,538 Sagem SA 5 286 ---------- 393,253 ---------- TELEVISION (0.1%) Societe Television Francaise 1 1,763 50,201 ---------- UTILITIES (0.3%) Suez SA 8,893 264,846 ---------- 6,728,356 ---------- ================================================================== GERMANY (6.2%) AIRLINES (0.1%) Lufthansa AG 3,046 46,935 ---------- APPAREL (0.1%) Adidas AG 682 46,460 ---------- AUTOMOTIVE (0.8%) DaimlerChrysler AG 9,606 444,051 Deutsche Post AG 5,184 70,070 Porsche AG 118 52,314 Volkswagen AG 3,310 162,554 ---------- 728,989 ---------- BANKS (0.6%) Bayerische Vereins AG 4,720 165,874 Deutsche Bank AG 5,485 363,672 ---------- 529,546 ---------- CHEMICALS (0.7%) BASF AG 6,776 289,417 Bayer AG 7,617 250,867 ---------- 540,284 ---------- COMPUTER SOFTWARE / SERVICES (0.4%) Sap AG 2,410 312,066 ----------
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ GERMANY (continued) ELECTRONICS & ELECTRICAL EQUIPMENT (0.0%) Epcos AG 774 $ 31,385 ---------- FINANCIAL SERVICES (0.1%) MLP AG 834 49,750 ---------- HEALTHCARE (0.1%) Fresenius Medical Care AG 770 45,933 ---------- HOTELS & LODGING (0.1%) Preussag AG 2,039 55,671 ---------- INDUSTRIAL (0.8%) Linde AG 1,275 62,385 MAN AG 1,586 37,529 Siemens AG 9,989 604,874 ---------- 704,788 ---------- INSURANCE (0.7%) Allianz AG 1,633 384,061 Muenchener Rueckversicherungs-Gesellschaft AG 1,005 249,042 ---------- 633,103 ---------- METALS & MINING (0.1%) Thyssen Krupp AG 5,048 76,192 ---------- PERSONAL CARE (0.0%) Beiersdorf AG 226 27,391 ---------- PHARMACEUTICALS (0.3%) Altana AG 1,007 56,350 Merck KGaA 100 2,956 Schering AG 2,464 150,093 ---------- 209,399 ---------- RETAIL (0.1%) Karstadt AG 885 26,715 Metro AG 1,953 62,475 ---------- 89,190 ---------- SEMICONDUCTORS (0.1%) Infineon Technologies AG 3,696 67,076 ---------- TELECOMMUNICATIONS (0.4%) Deutsche Telecom AG 21,813 290,511 ---------- UTILITIES (0.7%) E.On AG 6,986 361,653 RWE AG 4,465 168,983 530,636 ---------- 5,015,305 ----------
2002 SEMIANNUAL REPORT 58 ======================================================================= COMMON STOCKS (CONTINUED) =======================================================================
SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= GREECE (0.3%) BANKS (0.2%) Alpha Bank A.E. 3,033 $ 41,324 Commercial Bank of Greece SA 407 8,765 Eurobank (b) 563 6,646 National Bank of Greece SA 2,654 48,356 -------- 105,091 -------- BEVERAGES (0.0%) Hellenic Bottling Co. SA 1,143 15,697 -------- TELECOMMUNICATIONS (0.1%) Hellenic Telecommunication Organization SA 4,186 64,727 Intracom SA 2,323 18,965 Panafon Hellenic Telecom SA 3,671 18,657 -------- 102,349 -------- 223,137 -------- ======================================================================= HONG KONG (1.6%) AIRLINES (0.0%) Cathay Pacific Airways Ltd. 18,000 31,157 -------- BANKS (0.2%) Bank of East Asia Ltd. 21,600 45,282 Hang Seng Bank Ltd. 8,700 99,558 -------- 144,840 -------- BROADCASTING & TELEVISION (0.0%) Television Broadcasts Ltd. 4,000 19,746 -------- DISTRIBUTION (0.1%) Esprit Asia Holdings Ltd. 14,000 26,926 Li & Fung Ltd. 24,000 38,465 -------- 65,391 -------- DIVERSIFIED OPERATIONS (0.1%) Swire Pacific Ltd. 14,500 86,823 The Wharf (Holdings) Ltd. 7,000 18,758 -------- 105,581 -------- ELECTRONICS & ELECTRICAL EQUIPMENT (0.1%) Hongkong Electric Holdings Ltd. 18,500 70,212 Johnson Electric Holdings Ltd. 29,000 43,876 -------- 114,088 -------- FINANCIAL SERVICES (0.0%) Hong Kong Exchanges & Clearing Ltd. 18,000 32,080 -------- INDUSTRIAL (0.3%) Hutchison Whampoa Ltd. 23,000 202,009 -------- PRINTING & PUBLISHING (0.0%) South China Morning Post (Holdings) Ltd. 4,000 2,616 --------
SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== HONG KONG (continued) REAL ESTATE (0.6%) Cheung Kong Holdings Ltd. 17,000 $ 161,844 Henderson Land Development Co. Ltd. 11,000 53,595 New World Developments Co. 3,500 2,939 Sun Hung Kai Properties Ltd. 18,000 156,939 ---------- 375,317 ---------- TELECOMMUNICATIONS (0.0%) Pacific Century Cyberworks Ltd. (b) 3,000 769 ---------- TRANSPORTATION (0.0%) MTR Corp. Ltd. 15,000 22,887 ---------- UTILITIES (0.2%) CLP Holdings Ltd. 23,500 92,202 Hong Kong & China Gas Co. Ltd. 34,100 42,629 134,831 ---------- 1,251,312 ---------- ================================================================== IRELAND (0.7%) AIRLINES (0.0%) Ryanair Holdings PLC (b) 3,804 20,635 ---------- BANKS (0.4%) Allied Irish Banks PLC 12,223 161,357 Bank of Ireland 13,932 161,948 ---------- 323,305 ---------- BUILDING & CONSTRUCTION (0.2%) CRH PLC 7,529 130,599 ---------- CONSUMER PRODUCTS (0.0%) Waterford Wedgewood PLC 169 110 ---------- DIVERSIFIED (0.0%) DCC PLC 36 430 ---------- FINANCIAL SERVICES (0.1%) Irish Life & Permanent PLC 4,071 55,393 ---------- FOOD PRODUCTS (0.0%) Greencore Group PLC 1,154 3,400 ---------- PAPER PRODUCTS (0.0%) Jefferson Smurfit Group PLC 8,214 19,688 ---------- PHARMACEUTICALS (0.0%) Elan Corp. PLC (b) 3,130 35,397 ---------- 588,957 ---------- ================================================================== ITALY (3.4%) APPAREL (0.0%) Benetton Group SpA 876 12,354 ----------
2002 SEMIANNUAL REPORT 59
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ===================================================================== COMMON STOCKS (CONTINUED) ===================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== ITALY (continued) AUTOMOTIVE (0.1%) Fiat SpA 4,250 $ 50,169 -------- BANKS (0.9%) Banc Monte Dei Paschi Di Seina SpA 13,917 45,522 Banca di Roma SpA 14,326 38,986 Banca Nazionale del Lavoro 28,983 65,944 IntesaBci SpA 3,548 8,488 IntesaBci SpA 39,118 126,545 Mediobanca SpA 7,186 73,559 San Paolo IMI SpA 10,814 120,539 UniCredito Italiano SpA 35,045 162,632 -------- 642,215 -------- BROADCASTING & TELEVISION (0.1%) Mediaset SpA 8,888 74,483 -------- CHEMICALS (0.0%) Snia SpA 15,144 29,067 -------- ELECTRONICS & ELECTRICAL EQUIPMENT (0.0%) Pirelli SpA 20,735 30,642 -------- ENERGY (0.6%) Eni SpA 31,884 489,859 -------- FINANCIAL SERVICES (0.1%) Banca Fideuram SpA 4,956 37,870 Bipop-Carire SpA 20,294 36,300 Mediolanum SpA 3,806 32,581 -------- 106,751 -------- FOOD PRODUCTS (0.0%) Parmalat Finanziaria SpA 9,880 34,721 -------- INSURANCE (0.5%) Alleanza Assicurazioni SpA 5,987 57,995 Assicurazioni Generali SpA 11,246 271,788 Riunione Adriatica di Sicurta SpA 5,540 71,886 -------- 401,669 -------- MEDICAL PRODUCTS (0.0%) Luxottica Group SA 735 15,021 -------- PHARMACEUTICALS (0.0%) Banca Popolare de Milano 300 1,314 -------- PRINTING & PUBLISHING (0.0%) Gruppo Editorale L'Espresso SA 5,450 21,117 -------- RAILROADS (0.1%) Autostrade SpA 11,286 91,732 -------- RESTAURANTS (0.0%) Autogrill SpA 50 590 --------
SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== ITALY (continued) RETAIL (0.0%) Bulgari SpA 3,596 $ 27,964 ---------- TELECOMMUNICATIONS (0.8%) Telecom Italia Mobile SpA 45,874 200,485 Telecom Italia SpA 25,719 204,639 Telecom Italia SpA RNC 22,333 119,739 Tiscali SpA (b) 3,191 24,470 ---------- 549,333 ---------- UTILITIES (0.2%) Enel SpA 22,250 132,126 Italgas SpA 3,638 36,421 ---------- 168,547 ---------- 2,747,548 ---------- ===================================================================== JAPAN (18.4%) AGRICULTURE (0.1%) Ajinomoto Co., Inc. 8,000 79,688 ---------- AIRLINE SERVICES (0.1%) Yamato Transport Co. Ltd. 5,000 84,891 ---------- AIRLINES (0.0%) Japan Air Lines Co. 11,000 30,413 ---------- APPAREL (0.0%) Fast Retailing Co. Ltd. 1,100 29,299 World Co. Ltd. 100 2,570 ---------- 31,869 ---------- AUTOMOTIVE (1.8%) Denso Corp. 6,400 103,676 Honda Motor Co. Ltd. 6,600 296,075 NGK Spark Plug Co. 3,000 25,561 Nissan Motor Co. 28,000 215,452 Toyota Industries Corp. 1,000 16,083 Toyota Motor Co Ltd. 25,000 681,463 ---------- 1,338,310 ---------- BANKS (0.9%) Chiba Bank 4,000 12,555 Daiwa Bank Holdings, Inc. (b) 42,000 27,150 Joyo Bank 3,000 7,827 Mitsubishi Tokyo Financial Group, Inc. 37 253,294 Mizuho Holdings, Inc. 66 137,757 Sumitomo Bank Ltd. 35,000 155,919 The Bank of Yokohama Ltd. 13,000 45,358 The Shizuoka Bank Ltd. 4,000 24,361 UFJ Holdings, Inc. (b) 33 81,729 ---------- 745,950 ---------- BEVERAGES (0.0%) Takara Shuzo Co. Ltd. 3,000 22,453 ----------
2002 SEMIANNUAL REPORT 60
================================================================= COMMON STOCKS (CONTINUED) ================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= JAPAN (continued) BREWERY (0.1%) Asahi Breweries Ltd. 7,000 $ 64,494 Kirin Brewery Co. Ltd. 7,000 53,045 -------- 117,539 -------- BROADCASTING & TELEVISION (0.0%) Fuji Television Network, Inc. 6 34,579 -------- BUILDING & CONSTRUCTION (0.6%) Asahi Glass Co. Ltd. 12,000 85,140 Daikin Industries Ltd. 3,000 54,439 Daiwa House Industry Co. Ltd 2,000 12,773 Kajima Corp. 10,000 24,922 Keio Teito Electric Railway Co. Ltd. 6,000 26,075 Komatsu Ltd. 12,000 43,458 Matsushita Electric Works Ltd. 2,000 14,595 Nippon Sheet Glass Co. Ltd. 6,000 21,729 Nippon Yusen Kabushiki Kaisha 15,000 50,000 Nishimatsu Construction Co. Ltd. 6,000 15,467 Obayashi Corp. 7,000 18,372 Sekisui House Ltd. 7,000 48,139 Shimizu Corp. 2,000 6,371 Taisei Construction Corp. 13,000 26,020 Tostem Inax Holding Corp. 2,000 27,726 -------- 475,226 -------- CHEMICALS (0.8%) Asahi Kasei Corp. 15,000 57,243 Ishihara Sangyo Kaisha Ltd. (b) 1,000 1,830 Kaneka Corp. 1,000 6,931 Kuraray Co. 1,000 6,503 Mitsubishi Chemical Corp. 27,000 65,397 Mitsubishi Gas Chemical Co. Ltd. 1,000 1,963 Mitsui Chemicals, Inc. 10,000 47,664 Nitto Denko Corp. 2,800 92,243 Sekisui Chemical Co. Ltd. 1,000 2,812 Shin-Etsu Chemical Co. Ltd. 4,400 181,277 Showa Denko K.K. (b) 19,000 29,891 Sumitomo Chemical Co. Ltd. 16,000 67,664 Toray Industries, Inc. 16,000 46,231 Tosoh Corp. 2,000 5,841 -------- 613,490 -------- COMMERCIAL SERVICES (0.2%) NTT Data Corp. 12 53,551 Secom Co. 2,500 123,053 -------- 176,604 -------- COMPUTER HARDWARE (0.5%) Fujitsu Ltd. 19,000 150,935 NEC Corp. 14,000 107,944 Toshiba Corp. 34,000 158,614 -------- 417,493 --------
SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= JAPAN (continued) COMPUTER SOFTWARE / SERVICES (0.3%) Capcom Co. Ltd. 700 $ 20,935 CSK Corp. 1,000 29,829 Fuji Soft ABC, Inc. 800 28,910 Fujitsu Support & Service, Inc. 500 9,891 Hitachi Software Engineering Co. Ltd. 500 19,509 Konami Co. Ltd. 1,000 25,234 Net One Systems Co. Ltd. 4 26,231 Oracle Corp. Japan 200 10,592 Softbank Corp. 2,500 37,967 Trend Micro, Inc. (b) 1,500 40,421 ---------- 249,519 ---------- CONSUMER PRODUCTS (0.0%) Onward Kashiyama Co. Ltd. 2,000 18,583 ---------- CONTAINERS (0.0%) Toyo Seikan Kaisha Ltd. 1,000 13,248 ---------- DIVERSIFIED (0.0%) Nippon COMSYS Corp. 3,000 17,079 ---------- ELECTRIC UTILITIES (0.1%) Alps Electric Co. Ltd. 3,000 40,327 ---------- ELECTRONICS & ELECTRICAL EQUIPMENT (3.5%) Anritsu Corp. 2,000 15,919 Canon, Inc. 9,000 344,860 Fujikura Ltd. 4,000 17,134 Furukawa Electric Co. Ltd. 6,000 27,757 Hirose Electric Co. Ltd. 100 7,827 Hitachi Ltd. 27,000 199,977 Hoya Corp. 1,100 81,900 Keyence Corp. 300 60,724 Kyocera Corp. 1,600 108,910 Mabuchi Motor Co. Ltd. 200 19,595 Matsushita Electric Industrial Co. Ltd. 21,000 281,308 Mitsumi Electric Co. Ltd. 2,000 33,489 Murata Manufacturing Co. 2,600 164,626 NGK Insulators Ltd. 3,000 21,893 Nidec Corp. 600 40,000 Nintendo Co. 1,000 140,187 Omron Corp. 2,000 30,093 Pioneer Electronic Corp. 2,200 43,435 Ricoh Co. Ltd. 8,000 149,221 Sanyo Electric Co. 17,000 78,248 Sharp Corp. 11,000 152,578 Sony Corp. 9,600 515,887 Sumitomo Electric Industries Ltd. 9,000 64,136 Taiyo Yuden Co. Ltd. 2,000 36,449 TDK Corp. 1,600 87,227 Yokogawa Electric Co. Ltd. 1,000 8,302 ---------- 2,731,682 ----------
2002 SEMIANNUAL REPORT 61
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ================================================================================ COMMON STOCKS (CONTINUED) ================================================================================ SHARES OR PRINCIPAL AMOUNT VALUE ================================================================================ JAPAN (continued) ENERGY (0.2%) Japan Energy Corp. 14,000 $ 19,953 Nippon Oil Co. Ltd. 19,000 83,162 TonenGeneral Sekiyu K.K. 4,000 30,187 -------- 133,302 -------- ENGINEERING (0.0%) Mitsui Engineering & Shipbuilding Co. Ltd. (b) 2,000 2,461 -------- ENTERTAINMENT (0.0%) Namco Ltd. 100 2,025 -------- FINANCIAL SERVICES (1.1%) Acom Co. Ltd. 500 38,162 Aiful Corp. 300 20,818 Credit Saison Co. 2,000 47,041 Daiwa Securities Ltd. 17,000 116,643 Itochu Techno-Science Corp. 400 15,514 Nikko Securities Co. Ltd. 17,000 76,791 Nomura Securities Co. 20,000 278,816 Orix Corp. 1,100 91,238 Promise Co. Ltd. 1,000 52,726 Takefuji Corp. 580 41,919 The Sumitomo Trust & Banking Co. Ltd. 9,000 40,374 -------- 820,042 -------- FOOD PRODUCTS (0.1%) Japan Tobacco, Inc. 11 66,737 Meiji Seika Kaisha Ltd. 6,000 21,542 Nippon Meat Packers, Inc. 3,000 30,187 -------- 118,466 -------- HEALTHCARE (0.1%) Terumo Corp. 3,000 44,369 -------- HOUSEHOLD PRODUCTS (0.2%) Kao Corp. 7,000 136,838 Shiseido Co. Ltd. 5,000 55,491 Toto Ltd. 1,000 4,354 -------- 196,683 -------- IMPORTS / EXPORTS (0.3%) Itochu Corp. 18,000 57,477 Marubenii Corp. (b) 24,000 17,009 Mitsubishi Corp. 9,000 67,500 Mitsui & Co. Ltd. 17,000 107,508 Sumitomo Corp. 4,000 24,424 -------- 273,918 --------
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ JAPAN (continued) INDUSTRIAL (0.7%) Ebara Corp. 6,000 $ 35,981 Fanuc Co. Ltd. 1,500 83,178 JGC Corp. 3,000 21,145 Kawasaki Heavy Industries Ltd. (b) 21,000 23,224 Kawasaki Steel Corp. 41,000 45,981 Kubota Corp. 5,000 15,070 Minebea Co. Ltd. 6,000 39,252 Mitsubishi Heavy Industries Ltd. 34,000 107,773 Nippon Steel Corp. 77,000 117,539 SMC Corp. 700 83,847 THK Co. Ltd. 600 11,916 ---------- 584,906 ---------- INSURANCE (0.3%) Millea Holdings, Inc. (b) 18 140,187 Mitsui Sumito Insurance Co. 16,000 78,754 Yasuda Fire & Marine Insurance Co. Ltd. 11,000 61,254 ---------- 280,195 ---------- MANUFACTURING (0.0%) Ishikawajima-Harima Heavy Industries Co. Ltd. 15,000 24,416 ---------- METALS & MINING (0.2%) Dowa Mining Co. Ltd. 5,000 22,196 Mitsubishi Material Corp. 3,000 5,911 Mitsui Mining & Smelting Co. Ltd. 10,000 37,072 NSK Ltd. 9,000 39,112 Sumitomo Metal & Mining Corp. 8,000 34,953 ---------- 139,244 ---------- MULTI-MEDIA (0.0%) Tokyo Broadcasting System, Inc. 1,000 21,262 ---------- PAPER PRODUCTS (0.1%) Nippon Unipac Holding 9 51,449 Oji Paper Ltd. 12,000 58,505 ---------- 109,954 ---------- PHARMACEUTICALS (1.3%) Banyu Pharmaceutical Co. Ltd. 2,000 26,760 Chugai Pharmaceutical Ltd. 4,000 47,788 Daiichi Pharmaceuticals Co. 4,000 78,037 Eisai Co. 3,000 77,103 Fujisawa Pharmaceutical Co. 4,000 97,819 Kyowa Hakko Kogyo Co. Ltd. 1,000 5,709 Sankyo Co. 5,000 76,129 Shionogi & Co. 4,000 58,505 Taisho Pharmaceutical Co. Ltd. 2,000 32,243 Takeda Chemical Industries Ltd. 9,000 393,924 Yamanouchi Pharmaceutical Co. Ltd. 4,000 110,280 ---------- 1,004,297 ----------
2002 SEMIANNUAL REPORT 62 ===================================================================== COMMON STOCKS (CONTINUED) =====================================================================
SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================== JAPAN (continued) PHOTOGRAPHIC PRODUCTS (0.4%) Fuji Photo Film Ltd. 6,000 $190,654 Konica Corp. 6,000 38,458 Nikon Corp. 4,000 52,243 Olympus Optical Co. Ltd. 3,000 38,972 -------- 320,327 -------- PRINTING & PUBLISHING (0.3%) Dai Nippon Printing Co. Ltd. 9,000 113,411 Toppan Printing Co. Ltd. 9,000 91,051 -------- 204,462 -------- RAILROADS (0.4%) Central Japan Railway Co. 9 51,379 East Japan Railway Co. 36 152,243 Keihin Electric Express Railway Co. Ltd. 4,000 16,324 Kinki Nippon Railway Co. Ltd. 10,000 31,308 Tobu Railway Co., Ltd. 3,000 8,014 West Japan Railway Co. 15 58,061 -------- 317,329 -------- REAL ESTATE (0.2%) Mitsubishi Estate Co. 12,000 86,916 Mitsui Fudosan Co. Ltd. 10,000 78,505 Sumitomo Realty & Development Co. Ltd. 6,000 29,860 -------- 195,281 -------- RESORTS / THEME PARKS (0.0%) Oriental Land Co. Ltd. 600 39,486 -------- RETAIL (0.8%) Aeon Co. Ltd. 3,000 77,570 Citizen Watch Co. Ltd. 1,000 6,153 FamilyMart Co. Ltd. 1,400 29,548 Ito Yokado Co. 4,000 197,196 Lawson, Inc. 800 22,118 Marui Co. 5,000 61,604 Seven - Eleven Japan Co. Ltd. 4,000 149,844 Takashimaya Co. 1,000 5,701 The Seiyu Ltd. (b) 6,000 27,523 Tokyo Style Co. 2,000 17,882 Yamada Denki Co. Ltd. 400 30,779 -------- 625,918 -------- SCHOOLS (0.0%) Benesse Corp. 300 6,636 -------- SEMICONDUCTORS (0.5%) Advantest Corp. 900 64,836 Rohm Co. 1,200 178,972 Tokyo Electron Ltd. 1,800 129,533 -------- 373,341 --------
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ JAPAN (continued) TELECOMMUNICATIONS (0.9%) Matsushita Communication Industrial Co. Ltd. 1,000 $ 38,006 Nippon Telegraph & Telephone Corp. 38 149,455 NTT Docomo, Inc. 45 113,902 NTT Docomo, Inc. (b) 148 376,915 Oki Electric Industry Co. Ltd. 9,000 21,869 ----------- 700,147 ----------- TEXTILE PRODUCTS (0.1%) Teijin Ltd. 12,000 42,710 ----------- TIRE & RUBBER (0.1%) Bridgestone Corp. 8,000 112,835 ----------- TOYS (0.0%) Sega Corp. (b) 1,200 26,916 ----------- TRANSPORTATION (0.1%) Mitsui O.S.K. Lines Ltd. 11,000 22,445 Nippon Express Co. Ltd. 9,000 39,182 Seino Transportation Co. Ltd. 1,000 5,117 Tokyo Corp. 10,000 33,178 ----------- 99,922 ----------- UTILITIES (1.0%) Chubu Electric Power Co., Inc. 7,700 115,980 Kansai Electric Power, Inc. 7,000 95,405 Kyushu Electric Power Co., Inc. 3,500 46,639 Mitsubishi Electric Co. 23,000 107,118 Osaka Gas Co. Ltd. 28,000 60,623 Tohoku Electric Power Co. Ltd. 3,700 44,896 Tokyo Electric Power Co. Ltd. 13,300 242,383 Tokyo Gas Ltd. 35,000 83,684 ----------- 796,728 ----------- 14,856,521 ----------- ============================================================================ LUXEMBOURG (0.1%) STEEL (0.1%) Arcelor (b) 3,259 44,931 ----------- ============================================================================ NETHERLANDS (5.7%) BANKS (0.4%) ABN Amro Holding NV 16,136 319,883 ----------- BIOTECHNOLOGY (0.0%) Qiagen NV (b) 1,625 21,056 ----------- BUSINESS SERVICES (0.0%) Vedior NV 2,263 31,342 ----------- CHEMICALS (0.2%) Akzo Nobel NV 3,205 137,788 -----------
2002 SEMIANNUAL REPORT 63
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ======================================================================= COMMON STOCKS (CONTINUED) ======================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= NETHERLANDS (continued) COMPUTER SERVICE (0.0%) Getronics NV 4,935 $ 13,830 ---------- DIVERSIFIED (0.1%) Hagemeyer NV 2,007 39,697 IHC Caland NV 570 32,025 ---------- 71,722 ---------- ELECTRONICS & ELECTRICAL EQUIPMENT (0.8%) Koninklijke Ahold NV 6,968 174,239 Philips Electronics NV 14,281 441,006 ---------- 615,245 ---------- ENERGY (1.7%) Royal Dutch Petroleum Co. 24,103 1,277,089 ---------- FINANCIAL SERVICES (0.6%) ING Groep NV 18,893 498,816 ---------- FOOD PRODUCTS (0.7%) Heineken NV 1,972 88,848 Koninklijke Numico NV 2,204 56,900 Unilever NV CVA 6,349 409,058 ---------- 554,806 ---------- INSURANCE (0.3%) Aegon NV 10,088 231,803 ---------- MANUFACTURING (0.0%) Koninklijke Luchtvaart Maatschappij NV 10 154 ---------- OFFICE EQUIPMENT & SUPPLIES (0.0%) Buhrmann NV 2,427 31,077 ---------- PRINTING & PUBLISHING (0.3%) Elsevier NV 8,795 122,048 Oce NV 22 273 VNU NV 2,938 88,689 Wolters Kluwer CVA 3,485 70,658 ---------- 281,668 ---------- RETAIL (0.0%) Vendex NV 1,603 21,667 ---------- SEMICONDUCTORS (0.4%) ASML Holding NV (b) 5,085 115,469 STMicroelectronics NV 5,653 175,740 ---------- 291,209 ---------- TELECOMMUNICATIONS (0.1%) KPN NV (b) 20,631 93,511 ---------- TRANSPORTATION (0.1%) TPG NV 4,807 104,175 ---------- 4,596,841 ----------
SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================== NEW ZEALAND (0.1%) BUILDING & CONSTRUCTION (0.0%) Fletcher Building Ltd. 152 $ 193 -------- HEALTHCARE (0.0%) Fisher & Paykel Industries Ltd. 3,313 13,862 -------- HOUSEHOLD PRODUCTS (0.0%) Fisher & Paykel Appliances Holdings Ltd. (b) 124 533 -------- PAPER PRODUCTS (0.0%) Carter Holt Harvey Ltd. 466 375 -------- TELECOMMUNICATIONS (0.1%) Telecom Corp of New Zealand Ltd. 26,105 56,307 -------- 71,270 -------- ======================================================================== NORWAY (0.4%) BANKS (0.0%) DnB Holding ASA 4,439 23,447 Gjensidige Sparebank 341 12,129 -------- 35,576 -------- BUILDING & CONSTRUCTION (0.0%) Kvaerner ASA (b) 15,402 15,300 -------- COMPUTER HARDWARE (0.0%) Opticom ASA (b) 460 12,942 -------- FOOD PRODUCTS (0.1%) Orkla ASA 2,037 37,076 Pan Fish ASA (b) 3,074 7,131 -------- 44,207 -------- INDUSTRIAL (0.2%) Norsk Hydro AS 1,820 89,530 Tomra Systems ASA 3,453 26,290 -------- 115,820 -------- INSURANCE (0.0%) Storebrand ASA 600 3,469 -------- METALS (0.0%) Elkem ASA 6 121 -------- OIL & GAS (0.1%) Petroleum Geo-Services ASA (b) 2,538 16,153 Statoil ASA (b) 3,013 25,628 -------- 41,781 -------- PAPER PRODUCTS (0.0%) Norske Skogsindustrier ASA 1,207 21,467 -------- SHIPPING (0.0%) Frontline Ltd. 1,801 19,711 --------
2002 SEMIANNUAL REPORT 64 =============================================================== COMMON STOCKS (CONTINUED) ===============================================================
SHARES OR PRINCIPAL AMOUNT VALUE =============================================================== NORWAY (continued) TELECOMMUNICATIONS (0.0%) Tandberg ASA (b) 1,606 $ 19,392 Telenor ASA 2,339 9,238 -------- 28,630 -------- 339,024 -------- =============================================================== PORTUGAL (0.3%) AUTOMOTIVE (0.0%) Brisa- Auto Estradas SA 6,596 32,690 -------- BANKS (0.1%) Banco Commercial Portuguese SA 20,607 71,491 Banco Espirito Santo SA (b) 128 1,366 Banco Espirito Santo SA 257 2,742 -------- 75,599 -------- FINANCIAL SERVICES (0.0%) BPI-SGPS SA 128 284 -------- FOOD PRODUCTS (0.0%) Jeronimo Martins SGPS SA (b) 17 142 -------- INDUSTRIAL (0.0%) Sonae SGPS SA 291 228 -------- MANUFACTURING (0.0%) Cimentos de Portugal SA 36 647 -------- TELECOMMUNICATIONS (0.1%) Portugal Telecom SA (b) 14,989 109,403 -------- UTILITIES (0.1%) Electricidade de Portugal SA 19,527 40,294 -------- 259,287 -------- =============================================================== SINGAPORE (0.8%) AEROSPACE / DEFENSE (0.0%) Singapore Tech Engineering Ltd. 15,000 17,387 -------- AIRLINES (0.1%) Singapore Airlines Ltd. 7,000 54,093 -------- BANKS (0.5%) Development Bank of Singapore Ltd. 15,000 115,913 Oversea-Chinese Banking Corp. Ltd. 14,000 100,458 United Overseas Bank Ltd. 17,000 135,122 -------- 351,493 -------- DIVERSIFIED (0.1%) Keppel Corp. 23,000 53,320 -------- FINANCIAL SERVICES (0.0%) Creative Technology Ltd. 1,650 19,399 --------
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================ SINGAPORE (continued) MANUFACTURING (0.0%) Venture Manufacturing (Singapore) Ltd. 3,000 $ 28,150 -------- PRINTING & PUBLISHING (0.1%) Singapore Press Holdings Ltd. 5,000 62,096 -------- REAL ESTATE (0.0%) Capitaland Ltd. 1,000 960 City Developments Ltd. 8,000 27,378 -------- 28,338 -------- SEMICONDUCTORS (0.0%) Chartered Semiconductor Manufacturing Ltd. (b) 6,000 15,168 -------- TELECOMMUNICATIONS (0.0%) Datacraft Asia Ltd. 7,000 14,280 Singapore Telecommunications Ltd. 1,000 845 -------- 15,125 -------- 644,569 -------- ============================================================================ SPAIN (2.9%) BANKS (1.1%) Banco Bilbao Vizcaya Argentaria p. 33,514 390,781 Banco Santander Central Hispanoamericano SA 50,663 469,307 -------- 860,088 -------- BUILDING & CONSTRUCTION (0.1%) ACS, Actividades de Construccion y Servicios SA 261 8,043 Fomento De Construcciones Y Contrates SA 1,271 32,641 -------- 40,684 -------- COMPUTER SOFTWARE / SERVICES (0.0%) Terra Networks SA (b) 4,919 32,490 -------- ENERGY (0.2%) Repsol SA 11,966 146,966 -------- ENGINEERING (0.1%) Grupo Dragados SA 2,743 44,862 -------- FOOD PRODUCTS (0.1%) Altadis SA 4,423 93,422 Telepizza SA (b) 47 61 -------- 93,483 -------- HOTELS & LODGING (0.0%) NH Hoteles SA (b) 2,634 34,416 -------- INSURANCE (0.0%) Corporacion Mapfre SA 45 304 -------- METALS & MINING (0.0%) Acerinox SA 959 36,727 --------
2002 SEMIANNUAL REPORT 65
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ======================================================================= COMMON STOCKS (CONTINUED) ======================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= SPAIN (continued) PHARMACEUTICALS (0.0%) Zeltia SA (b) 2,221 $ 20,013 ---------- RAILROADS (0.0%) Autopistas, Concesionaria Espanola SA 87 839 ---------- RETAIL (0.1%) Industria de Diseno Textil, S.A. (b) 2,353 48,533 ---------- TELECOMMUNICATIONS (0.7%) Telefonica SA (b) 50,298 538,444 ---------- TRAVEL (0.0%) Amadeus Global Travel Distribution SA (b) 3,982 26,517 ---------- UTILITIES (0.5%) Endesa SA 10,239 156,848 Gas Natural SA 711 14,383 Iberdrola SA 9,724 133,362 Union Electrica Fenosa SA 4,158 73,324 ---------- 377,917 ---------- 2,302,283 ---------- ======================================================================= SWEDEN (1.8%) AUTOMOTIVE (0.1%) Volvo AB Class B 2,013 38,594 Volvo AB Series A 506 9,357 ---------- 47,951 ---------- BANKS (0.5%) Nordea AB 28,927 164,692 Skandiaviska Enskilda Banken AB 7,614 72,989 Svenska Handelsbanken AB 7,963 120,508 ---------- 358,189 ---------- BUILDING & CONSTRUCTION (0.1%) Assa Abloy AB 3,977 51,477 Skanska AB 7,185 51,046 ---------- 102,523 ---------- COMMERCIAL SERVICES (0.1%) Securitas AB 4,446 82,644 ---------- HOUSEHOLD PRODUCTS (0.1%) Electrolux AB 5,030 83,709 ---------- INDUSTRIAL (0.2%) Atlas Copca AB 2,136 50,099 Sandvik AB 3,558 82,412 Trelleborg AB Class B 2,922 26,731 ---------- 159,242 ---------- INSURANCE (0.1%) Skandia Forsakrings AB 14,196 67,421 ----------
SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== SWEDEN (continued) METALS (0.0%) S.K.F. AB 1,552 $ 38,138 ---------- PAPER PRODUCTS (0.1%) Billerud (b) 297 2,934 Svenska Cellusoa 2,861 97,175 ---------- 100,109 ---------- REAL ESTATE (0.0%) Drott AB 1,222 13,558 ---------- RETAIL (0.1%) Hennes & Mauritz AB 5,517 109,532 ---------- TELECOMMUNICATIONS (0.4%) Ericsson SA 86,823 218,005 Tele2 AB (b) 1,416 29,008 Telia AB 7,360 22,921 ---------- 269,934 ---------- TOBACCO (0.0%) Swedish Match AB 2,813 22,175 ---------- 1,455,125 ---------- =============================================================================== SWITZERLAND (6.8%) AEROSPACE / DEFENSE (0.0%) Unaxis Holdings AG 4 449 ---------- BANKS (0.6%) Credit Suisse Group (b) 12,751 454,521 ---------- BUILDING & CONSTRUCTION (0.1%) Holcim Ltd. 408 94,439 ---------- CHEMICALS (0.4%) Ciba Specialty Chemicals AG, Registered 1,016 78,390 Clariant AG 2,300 54,586 Lonza Group AG 930 67,019 Syngenta AG 1,558 96,167 ---------- 296,162 ---------- COMMERCIAL SERVICES (0.1%) Adecco SA 1,322 83,640 SGS Societe Generale de Surveillance Holdings SA 29 7,876 ---------- 91,516 ---------- COMPUTERS (0.0%) Logitech International SA (b) 606 28,203 ---------- ELECTRONICS & ELECTRICAL EQUIPMENT (0.2%) ABB Ltd. (b) 14,121 126,384 ---------- FOOD PRODUCTS (1.5%) Nestle SA 4,818 1,139,001 ----------
2002 SEMIANNUAL REPORT 66 COMMON STOCKS (CONTINUED)
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================= SWITZERLAND (continued) INSURANCE (0.7%) Swiss Re 3,694 $ 372,797 Zurich Financial Services AG 938 218,274 ---------- 591,071 ---------- MANUFACTURING (0.0%) Sulzer AG 87 17,426 ---------- MEDICAL PRODUCTS (0.0%) Sulzer Medica AG 32 3,259 ---------- METALS (0.0%) Sythes-Stratec, Inc. 27 16,732 ---------- PHARMACEUTICALS (2.9%) Givaudan 145 54,058 Novartis AG 34,566 1,449,763 Roche Holding AG 417 42,277 Roche Holding AG Genusscheine 8,667 656,673 Serono SA 92 70,415 ---------- 2,273,186 ---------- RETAIL (0.2%) Compagnie Finance Richemont AG 5,723 129,819 Swatch Group AG (b) 520 50,312 Swatch Group AG Class B (b) 372 7,738 ---------- 187,869 ---------- TELECOMMUNICATIONS (0.1%) Ascom Holding AG 6 70 Kudelski SA (b) 481 21,673 Swisscom AG 317 94,605 ---------- 116,348 ---------- 5,436,566 ---------- ============================================================= UNITED KINGDOM (26.1%) ADVERTISING (0.2%) Aegis Group PLC 25,979 41,456 WPP Group PLC 11,072 117,464 ---------- 158,920 ---------- AEROSPACE / DEFENSE (0.1%) British Aerospace PLC 14,425 73,365 ---------- AIRLINES (0.2%) BAA PLC 10,851 101,995 British Airways PLC 9,815 33,792 ---------- 135,787 ---------- AUTOMOTIVE (0.1%) GKN PLC 11,389 53,277 Rolls-Royce PLC 13,868 38,399 ---------- 91,676 ----------
SHARES OR PRINCIPAL AMOUNT VALUE ================================================================= UNITED KINGDOM (continued) BANKS (5.0%) Barclays PLC 76,924 $ 673,729 HBOS PLC 42,841 519,436 HSBC Holdings PLC 104,033 1,228,018 MAN Group PLC 3,851 53,764 Royal Bank of Scotland Group PLC 31,600 906,276 UBS AG (b) 14,988 722,525 ---------- 4,103,748 ---------- BREWERY (0.2%) Bass PLC 8,783 97,212 Scottish & Newcastle PLC 9,788 89,578 ---------- 186,790 ---------- BUILDING & CONSTRUCTION (0.4%) Berkeley Group PLC 1,941 22,488 BICC Group PLC 1,799 7,367 BPB PLC 4,718 27,502 George Wimpey PLC 2,033 9,036 Hanson PLC 10,495 76,242 Kingfisher PLC 12,938 72,307 Pilkington PLC 17,134 27,778 RMC Group PLC 4,141 39,346 Taylor Woodrow PLC 2,043 6,252 ---------- 288,318 ---------- CHEMICALS (0.2%) BOC Group PLC 4,437 67,247 Imperial Chemical Industries PLC 18,986 88,124 ---------- 155,371 ---------- COMMERCIAL SERVICES (0.3%) Amey PLC 7,031 24,489 Brambles Industries PLC 10,081 49,950 Capita Group PLC 8,200 45,619 Chubb PLC 4,196 10,701 Rentokil Initial PLC 24,020 94,687 ---------- 225,446 ---------- COMPUTER SOFTWARE / SERVICES (0.2%) CMG PLC 7,474 19,279 Hays PLC 18,565 46,602 Logica PLC 6,519 30,163 Mysis PLC 7,831 29,215 The Sage Group PLC 14,616 42,174 ---------- 167,433 ---------- CONSUMER PRODUCTS (0.2%) Reckitt Benckiser PLC 7,333 129,840 ---------- DIVERSIFIED (0.0%) Serco Group PLC 6,016 23,496 ----------
2002 SEMIANNUAL REPORT 67
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ======================================================================= COMMON STOCKS (CONTINUED) ======================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= UNITED KINGDOM (continued) ELECTRONICS & ELECTRICAL EQUIPMENT (0.2%) Electrocomponents PLC 5,493 $ 34,822 National Grid Group PLC 19,548 140,158 Pace Micro Technology PLC 3,999 5,245 Spirent PLC 13,745 19,930 ---------- 200,155 ---------- ENERGY (4.0%) BG PLC 45,480 203,142 BP Amoco PLC 264,078 2,253,242 BP PLC ADR 100 5,080 Shell Transportation & Trading Co. PLC 113,695 809,385 ---------- 3,270,849 ---------- ENGINEERING (0.1%) AMEC PLC 4,353 30,069 Barratt Developments PLC 4,909 35,376 ---------- 65,445 ---------- ENTERTAINMENT (0.4%) British Sky Broadcasting Group PLC (b) 8,933 99,979 Carlton Communications PLC 11,508 41,507 EMI Group PLC 11,316 50,132 Hilton Group PLC 23,424 87,473 Rank Group PLC 10,462 42,651 ---------- 321,742 ---------- FINANCIAL SERVICES (1.2%) 3I Group PLC 8,734 88,078 Amvescap PLC 7,830 82,271 Close Brothers Group PLC 318 3,615 Lloyds TSB Group PLC 64,502 741,650 Provident Financial PLC 1,247 12,903 ---------- 928,517 ---------- FOOD PRODUCTS (2.2%) British American Tobacco PLC 17,920 183,326 Cadbury Schweppes PLC 26,712 202,617 Diageo PLC 38,794 515,029 Granada Compass PLC 38,956 73,092 J Sainsbury PLC 12,011 70,015 Safeway PLC 14,963 66,289 Tate & Lyle PLC 6,937 35,989 Tesco PLC 78,113 299,384 Unilever PLC 32,524 297,655 ---------- 1,743,396 ---------- HEALTHCARE (1.3%) AstraZeneca Group PLC 20,408 956,159 Celltech Group PLC (b) 4,476 37,050 Kidde PLC 166 209 Smith & Nephew PLC 12,338 70,213 ---------- 1,063,631 ----------
SHARES OR PRINCIPAL AMOUNT VALUE ======================================================================= UNITED KINGDOM (continued) HOTELS & LODGING (0.1%) P & O Princess Cruises PLC 9,605 $ 64,668 ---------- IMPORTS / EXPORTS (0.1%) Wolseley PLC 6,984 73,280 ---------- INDUSTRIAL (0.3%) BBA Group PLC 9,340 42,535 FKI PLC 11,246 27,697 IMI PLC 78 339 Invensys PLC 41,258 64,635 Smiths Industries PLC 7,693 90,921 ---------- 226,127 ---------- INSURANCE (0.9%) CGNU PLC 25,239 259,672 Legal & General Group PLC 67,449 154,566 Prudential PLC 22,075 234,840 Royal & Sun Alliance Insurance Group PLC 19,759 86,960 ---------- 736,038 ---------- INVESTMENT COMPANY (0.0%) Schroders PLC 82 1,005 ---------- MEDICAL PRODUCTS (0.1%) Amersham PLC 9,805 94,521 SSL International PLC 444 2,718 ---------- 97,239 ---------- METALS & MINING (0.5%) BHP Billiton PLC 24,143 129,124 Corus Group PLC (b) 46,059 52,858 Johnson Matthey PLC 2,358 36,597 Rio Tinto PLC 11,822 219,660 ---------- 438,239 ---------- PAPER PRODUCTS (0.1%) Bunzl PLC 3,779 29,628 Rexam PLC 6,995 50,918 ---------- 80,546 ---------- PHARMACEUTICALS (2.3%) Boots Co. PLC 11,806 122,241 Glaxosmithkline PLC 72,640 1,757,246 ---------- 1,879,487 ---------- PRINTING & PUBLISHING (0.5%) Daily Mail & General Trust 2,129 23,052 Pearson PLC 9,163 110,298 Reed International PLC 14,157 138,640 Reuters Group PLC 15,658 109,528 United Business Media PLC 5,774 44,092 ---------- 425,610 ----------
2002 SEMIANNUAL REPORT 68
========================================================================= COMMON STOCKS (CONTINUED) ========================================================================= SHARES OR PRINCIPAL AMOUNT VALUE ========================================================================= UNITED KINGDOM (continued) RAILROADS (0.0%) FirstGroup PLC 2,028 $ 9,191 Railtrack Group PLC 792 0 ---------- 9,191 ---------- REAL ESTATE (0.4%) British Land Co. PLC 7,924 65,129 Canary Wharf Group PLC (b) 9,241 63,328 Hammerson PLC 5,970 52,635 Land Securities PLC 6,674 92,689 Slough Estates PLC 3,995 23,986 ---------- 297,767 ---------- RESTAURANTS (0.2%) Compass Group PLC 23,993 149,301 Whitbread PLC 2,362 23,407 ---------- 172,708 ---------- RETAIL (0.6%) Dixons Group PLC 26,331 87,201 Great Universal Stores PLC 10,760 97,847 Marks & Spencer PLC 25,712 148,756 Next PLC 4,798 72,753 Signet Group PLC 29,179 49,751 ---------- 456,308 ---------- SEMICONDUCTORS (0.0%) Arm Holdings PLC (b) 9,395 30,258 ---------- TELECOMMUNICATIONS (2.2%) BT Group PLC (b) 99,257 373,190 Cable & Wireless PLC 37,234 98,213 Marconin PLC 1,145 164 Telewest Communications PLC (b) 9,507 1,572 Vodafone Group PLC 801,106 1,292,952 ---------- 1,766,091 ---------- TOBACCO (0.2%) Imperial Tobacco Group PLC 10,129 143,477 ---------- TRANSPORTATION (0.2%) Airtours PLC 8,418 26,682 Associated British Ports Holdings PLC 1,501 10,281 Exel PLC 4,975 63,801 Peninsular & Oriental Steam Navigation Co. 12,645 51,966 Stagecoach Group PLC 2,112 2,339 ---------- 155,069 ---------- UTILITIES (0.9%) AWG PLC 1,942 16,499 Centrica PLC 45,114 138,886 International Power PLC (b) 18,458 56,219 Lattice Group PLC 41,575 112,389
SHARES OR PRINCIPAL AMOUNT VALUE ================================================================== UNITED KINGDOM (continued) UTILITIES (continued) Scottish & Southern Energy PLC 11,903 $ 117,087 Scottish Power PLC 20,317 116,951 Severn Trent PLC 5,605 63,998 United Utilities PLC 7,800 74,851 ----------- 696,880 ----------- WATER / SEWER (0.0%) Kelda Group PLC 1,593 9,309 ----------- 21,093,222 ----------- TOTAL COMMON STOCKS 73,172,857 ----------- ================================================================== U.S. GOVERNMENT OBLIGATIONS (0.6%) ================================================================== U.S. TREASURY BILL (0.6%) 1.72%, 06/20/02 (c) $ 500,000 498,863 ----------- TOTAL U.S. GOVERNMENT OBLIGATIONS 498,863 ----------- ================================================================== PREFERRED STOCKS (0.2%) ================================================================== AUSTRALIA (0.2%) MULTI-MEDIA (0.2%) The News Corp. Ltd. 18,906 104,165 ----------- ================================================================== GERMANY (0.0%) AUTOMOTIVE (0.0%) Volkswagen AG 875 27,754 ----------- UTILITIES (0.0%) RWE AG 23 697 28,451 ----------- TOTAL PREFERRED STOCKS 132,616 ----------- ================================================================== WARRANTS (0.0%) ================================================================== ITALY (0.0%) Fiat Spa 453 228 ----------- TOTAL WARRANTS 228 ----------- ================================================================== RIGHTS (0.0%) ================================================================== PORTUGAL (0.0%) BANKS (0.0%) BPI - SGPS SA 128 15 ----------- TOTAL RIGHTS 15 -----------
2002 SEMIANNUAL REPORT 69
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ===================================================================================== NATIONWIDE INTERNATIONAL INDEX FUND (Continued) ===================================================================================== REPURCHASE AGREEMENT (7.0%) ===================================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ===================================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $ 5,627,396 (Fully collateralized by Freddie Mac Securities) $ 5,627,132 $ 5,627,132 ------------ TOTAL REPURCHASE AGREEMENT 5,627,132 ------------ TOTAL INVESTMENTS (COST $78,294,594) (A) - 98.6% 79,431,534 OTHER ASSETS IN EXCESS OF LIABILITIES - 1.4% 1,090,611 ------------ NET ASSETS - 100.0% $80,522,145 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 4,987,988 Unrealized depreciation (3,851,048) ------------ Net unrealized appreciation $ 1,136,940 ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security. (c) Pledged as collateral for futures. ADR American Depositary Receipt At April 30, 2002, the Fund's forward currency contracts were as follows:
Unrealized Delivery Contract Market Appreciation/ Currency Date Value Value (Depreciation) ------------------------------------------------------------------------ Short: British Pound 05/23/02 $ 79,691 $ 80,029 $ (338) Euro 05/23/02 111,728 112,505 (777) Japanese Yen 05/23/02 77,833 77,993 (160) --------------------------------------- Total Short Contracts $ 269,252 $ 270,527 $ (1,275) ======================================= Long: British Pound 05/23/02 $1,628,410 $1,636,954 $ 8,544 Euro 05/23/02 2,090,703 2,115,116 24,413 Japanese Yen 05/23/02 1,273,260 1,286,880 13,620 Swiss Franc 05/23/02 379,309 385,994 6,685 --------------------------------------- Total Long Contracts $5,371,682 $5,424,944 $ 53,262 =======================================
At April 30, 2002, the Fund's open long futures contracts were as follows:
Unrealized Market Value Appreciation Number of Long Covered By (Depreciation) Contracts Contracts Expirations Contract at 04/30/02 ---------------------------------------------------------------------------------------- Futures: Australia 8 SPI 200 Index 06/28/02 $ 358,931 $ (4,615) Europe 83 DJ Euro Stoxx 50 06/21/02 2,663,320 (62,812) Hong Kong 2 Hang Seng Index 05/30/02 147,285 2,292 Japan 20 Topix Index 06/13/02 1,680,685 4,774 United Kingdom 26 FTSE 100 Index 06/21/02 1,957,767 (23,261) ------------------------------ $ 6,807,988 $ (83,622) ============================== SEE NOTES TO FINANCIAL STATEMENTS.
2002 SEMIANNUAL REPORT 70 NATIONWIDE BOND INDEX FUND Class A Shares symbol: NBXAX Class B Shares symbol: NBXBX Institutional Class symbol: NBXIX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning -0.75%* versus -0.01% for the Lehman Brothers Aggregate Bond Index. For the trailing 12 months, the Fund returned 6.46%*, underperforming the Index, which returned 7.84%. For broader comparison purposes, the S&P 500 Index returned 2.31% for the six-month period. WHAT MARKET/ECONOMIC FACTORS INFLUENCED THE PORTFOLIOS PERFORMANCE? The average yield premium offered by high-yield bonds over Treasuries narrowed from close to 10% last fall to just 6.4%. This represents the lowest yield spread between Treasuries and junk bonds since the first half of 2000. Between early January and late March of 2002, yields moved substantially higher. The curve flattened by almost 50 basis points as the market anticipated that the recession was unlikely to be an extended one. By April, however, fixed-income investors began to expect a more lukewarm recovery, and the yield curve steepened again with shortterm yields moving below 3.40% by the end of the month. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? Performance in the fixed-income corporate market varied greatly among sectors. Cyclicals (economically sensitive stocks) such as airlines, automobiles and paper enjoyed narrower spreads and lower yields. But troubles intensified in the telecommunications sector as compressing margins and high leverage raised investor concerns. Treasury yields declined substantially during the period, especially for shorter maturities. While we are mildly disappointed with the 74-basis-point tracking error (the difference in the performance of the portfolio and the Index), we are very pleased with the attribution analysis performed on the portfolio. This analysis has revealed that our approach in constructing the portfolio is appropriate and our strategy is right. Of the matrix of more than 30 investment measurements, the vast majority gave positive results. The sector allocation and yield curve exposure is fine. The tracking error is attributable to specific security selection in the corporate area, which will be addressed through greater diversification as the Fund grows. HOW IS THE FUND POSITIONED? As always, the portfolio is positioned with minimal variance to the benchmark, with the objective of achieving minimal tracking error. PORTFOLIO MANAGER: FUND ASSET MANAGEMENT, L.P. - SUBADVISER * PERFORMANCE OF CLASS A SHARES WITHOUT SALES CHARGE AND ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $106,685,993 APRIL 30, 2002 AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 5 INCEPTION(1) ============================================================= Class A w/o SC(2) 6.46% 7.25% 7.39% w/SC(3) 0.32% 5.99% 6.15% ------------------------------------------------------------- Class B(4) w/o SC(2) 6.12% 7.18% 7.32% w/SC(5) 1.12% 6.88% 7.17% ------------------------------------------------------------- Institutional Class(6) 7.04% 7.49% 7.62% ------------------------------------------------------------- All figures showing the effect of a sales charge reflect the maximum charge possible, because it has the most dramatic effect on performance data. 1 Commenced operations on December 29, 1999 and from that date until October 15, 2001, the Fund invested all of its assets in the Master Aggregate Bond Index Series (the Series). The returns shown above include the performance of the Series from its inception on April 3, 1997 through December 29, 1999 and are not adjusted for the Fund's higher expenses and, therefore, the Fund's actual returns would have been lower. 2 These returns do not reflect the effects of sales charges (SC). 3 A 5.75% front-end sales charge was deducted. 4 These returns include performance based on Class A shares, which was achieved prior to the creation of Class B shares (10/12/01). These returns have been restated for sales charges but not for fees applicable to Class B shares, which include a 1.00% 12b-1 fee. Had Class B been in existence for the time periods presented, the performance of Class B would have been lower as a result of the additional expense. 5 A 5.00% maximum contingent deferred sales charge (CDSC) was deducted. The CDSC declines to 0% after 6 years. 6 Not subject to any sales charges. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPHIC OMITTED]
LB Aggregate Date Class A Bond CPI 3-Apr-97 9425 10000 10000 31-Oct-97 10197 10869 10100 31-Oct-98 11182 11883 10250 31-Oct-99 11227 11945 10513 31-Oct-00 11831 12817 10875 31-Oct-01 13634 14682 11106 30-Apr-02 13532 14681 11229
Comparative performance of $10,000 invested in Class A shares of the Nationwide Bond Index Fund, the Lehman Brothers Aggregate Bond Index (LB Aggregate Bond)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The LB Aggregate Bond consists of investment grade debt issues that have at least $100 million par amount outstanding and at least one year to final maturity. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 71 STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) ================================================================================
NATIONWIDE BOND INDEX FUND =========================================================================== U.S. GOVERNMENT AND AGENCY LONG-TERM OBLIGATIONS (68.6%) =========================================================================== PRINCIPAL AMOUNT VALUE =========================================================================== FEDERAL HOME LOAN MORTGAGE CORPORATION (35.4%) 6.25%, 10/15/02 $ 260,000 $ 264,849 5.75%, 07/15/03 3,155,000 3,256,015 7.18%, 06/27/06 55,000 60,182 4.88%, 03/15/07 2,385,000 2,389,001 6.75%, 09/15/29 945,000 998,922 Gold, Pool #G10940, 6.50%, 11/01/11 333,051 347,021 Gold, Pool #E00507, 7.50%, 09/01/12 52,933 56,057 Gold, Pool #G11003, 7.50%, 04/01/15 71,681 75,666 Gold, Pool #E81396, 7.00%, 10/01/15 114,255 119,385 Gold, Pool #E84097, 6.50%, 12/01/15 91,630 94,487 Gold, Pool #E82132, 7.00%, 01/01/16 150,816 157,587 Gold, Pool #E82815, 6.00%, 03/01/16 334,756 340,064 Gold, Pool #E83231, 6.00%, 04/01/16 177,757 180,430 Gold, Pool #E83046, 7.00%, 04/01/16 89,615 93,639 Gold, Pool #E00989, 7.50%, 04/01/16 192,258 202,739 Gold, Pool #E83933, 6.50%, 05/01/16 90,006 92,814 Gold, Pool #E84236, 6.50%, 06/01/16 271,772 280,250 Gold, Pool #E00996, 6.50%, 07/01/16 96,147 99,146 Gold, Pool #E85387, 6.00%, 09/01/16 976,216 990,899 Gold, Pool #E85800, 6.50%, 10/01/16 98,073 101,132 Gold, Pool #E86183, 6.00%, 11/01/16 72,242 73,329 Gold, Pool #E11207, 7.00%, 11/01/16 500,050 522,501 Gold, Pool #E01083, 7.00%, 11/01/16 116,528 121,741 Gold, Pool #E86533, 6.00%, 12/01/16 206,683 209,792 Gold, Pool #C01095, 6.00%, 01/01/17 247,781 251,508 Gold, Pool #E87584, 6.00%, 01/01/17 280,246 284,461 Gold, Pool #E87446, 6.50%, 01/01/17 136,607 140,833 Gold, Pool #E88076, 6.00%, 02/01/17 148,732 150,930 Gold, Pool #C88768, 6.00%, 03/01/17 797,236 809,227 Gold, Pool #C01138, 6.50%, 03/01/17 198,824 204,975 Gold, Pool #E89151, 6.00%, 04/01/17 199,981 202,937 Gold, Pool #E89347, 6.00%, 04/01/17 100,000 101,478 Gold, Pool #C01139, 6.00%, 04/01/17 500,000 507,391 Gold, Pool #E89203, 6.50%, 04/01/17 199,981 206,168 Gold, Pool #C00351, 8.00%, 07/01/24 40,273 42,958 Gold, Pool #D60780, 8.00%, 06/01/25 62,709 66,811 Gold, Pool #D82854, 7.00%, 10/01/27 199,154 206,284 Gold, Pool #C00566, 7.50%, 12/01/27 245,403 257,936 Gold, Pool #C16221, 7.00%, 10/01/28 19,770 20,466 Gold, Pool #C18271, 7.00%, 11/01/28 232,682 240,874 Gold, Pool #C00738, 5.50%, 02/01/29 100,332 96,929 Gold, Pool #C24416, 8.50%, 02/01/29 34,144 36,679 Gold, Pool #C00836, 7.00%, 07/01/29 209,265 216,221 Gold, Pool #C31282, 7.00%, 09/01/29 129,700 134,011 Gold, Pool #C37436, 8.00%, 01/01/30 155,807 164,843 Gold, Pool #E36306, 7.00%, 02/01/30 300,000 309,649 Gold, Pool #C37703, 7.50%, 04/01/30 299,085 312,522 Gold, Pool #C41385, 8.00%, 08/01/30 250,025 264,050 Gold, Pool #C41561, 8.00%, 08/01/30 93,575 98,824 Gold, Pool #C43550, 7.00%, 10/01/30 446,370 460,726 Gold, Pool #C44017, 7.50%, 10/01/30 114,667 119,818 Gold, Pool #C44978, 7.00%, 11/01/30 285,379 294,557 PRINCIPAL AMOUNT VALUE =========================================================================== FEDERAL HOME LOAN MORTGAGE CORPORATION (continued) Gold, Pool #C44957, 8.00%, 11/01/30 $ 170,285 $ 179,837 Gold, Pool #C55715, 7.00%, 12/01/30 133,575 137,871 Gold, Pool #C01116, 7.50%, 01/01/31 317,140 331,388 Gold, Pool #C46808, 8.00%, 01/01/31 65,322 68,987 Gold, Pool #C47287, 7.50%, 02/01/31 349,756 365,469 Gold, Pool #C52940, 6.00%, 06/01/31 296,769 293,546 Gold, Pool #C01209, 8.00%, 06/01/31 175,226 185,055 Gold, Pool #C55455, 6.00%, 07/01/31 380,973 376,871 Gold, Pool #G01315, 7.00%, 09/01/31 195,000 201,272 Gold, Pool #C01222, 7.00%, 09/01/31 559,832 577,828 Gold, Pool #C59308, 6.00%, 10/01/31 365,735 361,797 Gold, Pool #C58647, 7.00%, 10/01/31 139,702 144,193 Gold, Pool #C58694, 7.00%, 10/01/31 1,383,329 1,427,797 Gold, Pool #59872, 6.00%, 11/01/31 796,603 788,027 Gold, Pool #C01258, 6.00%, 11/01/31 98,501 97,440 Gold, Pool #60294, 6.00%, 11/01/31 446,062 441,260 Gold, Pool #607632, 6.50%, 11/01/31 73,984 74,943 Gold, Pool #C60012, 7.00%, 11/01/31 500,230 516,310 Gold, Pool #C01305, 7.50%, 12/01/31 249,975 261,207 Gold, Pool #C62823, 6.00%, 01/01/32 349,965 346,197 Gold, Pool #C62824, 6.00%, 01/01/32 229,977 227,501 Gold, Pool #C01286, 6.00%, 01/01/32 774,856 766,514 Gold, Pool #C62218, 7.00%, 01/01/32 330,032 340,641 Gold, Pool #C01316, 6.00%, 03/01/32 699,173 691,645 Gold, Pool #C64479, 6.00%, 03/01/32 219,818 217,435 Gold, Pool #C01310, 6.50%, 03/01/32 5,096,001 5,166,390 Gold, Pool #C65466, 6.50%, 03/01/32 2,045,002 2,073,250 Gold, Pool #E66414, 6.00%, 04/01/32 300,000 296,747 Gold, Pool #C66191, 6.50%, 04/01/32 539,948 547,406 Gold, Pool #C66088, 6.50%, 04/01/32 510,005 517,049 Gold, Pool #C66192, 6.50%, 04/01/32 280,000 283,868 Gold, Pool #C01343, 6.50%, 04/01/32 1,040,000 1,054,365 Gold, Pool #C65717, 7.50%, 04/01/32 300,000 313,481 TBA, 6.50%, 05/01/32 600,000 607,500 ----------- 37,612,801 ----------- =========================================================================== FEDERAL NATIONAL MORTGAGE ASSOCIATION (10.6%) 4.63%, 05/15/03 520,000 530,263 5.45%, 10/10/03 10,000 10,316 6.85%, 04/05/04 10,000 10,611 3.50%, 09/15/04 4,950,000 4,932,996 5.75%, 02/15/08 1,515,000 1,560,661 6.63%, 11/15/10 3,265,000 3,482,341 5.38%, 11/15/11 380,000 370,073 Pool #560868, 7.50%, 02/01/31 215,050 224,712 Pool #607559, 6.50%, 11/01/31 148,132 150,052 ----------- 11,272,025 ----------- =========================================================================== FINANCING CORPORATION (0.0%) 9.80%, 11/30/17 30,000 40,769 -----------
72 SEMIANNUAL REPORT 2002
================================================================================ U.S. GOVERNMENT AND AGENCY LONG-TERM OBLIGATIONS (CONTINUED) ================================================================================ PRINCIPAL AMOUNT VALUE ================================================================================ GOVERNMENT NATIONAL MORTGAGE ASSOCIATION (7.3%) Pool #279461, 9.00%, 11/15/19 $ 38,266 $ 42,101 Pool #780678, 6.50%, 11/15/27 122,342 124,911 Pool #457801, 7.00%. 08/15/28 247,385 256,277 Pool #490258, 6.50%, 02/15/29 250,396 254,642 Pool #486936, 6.50%, 02/15/29 264,284 268,766 Pool #487053, 7.00%, 03/15/29 287,095 296,808 Pool #434505, 7.50%, 08/15/29 81,309 85,483 Pool #416538, 7.00%, 10/15/29 178,143 184,170 Pool #525561, 8.00%, 01/15/30 293,458 310,860 Pool #536334, 7.50%, 10/15/30 56,375 59,144 Pool #519020, 7.50%, 11/15/30 177,263 185,968 Pool #540659, 7.00%, 01/15/31 186,584 192,857 Pool #486019, 7.50%, 01/15/31 192,225 201,649 Pool #528589, 6.50%, 03/15/31 259,175 262,933 Pool #544470, 8.00%, 04/15/31 493,583 522,877 Pool #541499, 6.50%, 07/15/31 389,961 395,615 Pool #485879, 7.00%, 08/15/31 394,569 407,835 Pool #781328, 7.00%, 09/15/31 380,299 393,150 Pool #571267, 7.00%, 10/15/31 318,124 328,821 Pool #570225, 6.00%, 11/15/31 298,604 295,746 Pool #571267, 6.00%, 11/15/31 297,044 294,201 Pool #568201, 6.50%, 11/15/31 349,131 354,193 Pool #574837, 7.50%, 11/15/31 506,118 530,930 Pool #555171, 6.50%, 12/15/31 255,776 259,484 Pool #580972, 6.50%, 02/15/32 396,278 402,012 Pool #584236, 6.50%, 03/15/32 499,472 494,680 TBA, 6.50%, 05/01/32 200,000 202,688 TBA, 7.50%, 06/01/32 150,000 157,219 ---------- 7,766,020 ---------- ================================================================================ TENNESSEE VALLEY AUTHORITY (0.1%) 6.25%, 12/15/17 85,000 85,898 ---------- ================================================================================ U.S.TREASURY BONDS (6.5%) 8.75%, 11/15/08 35,000 37,994 8.75%, 05/15/17 1,120,000 1,474,200 8.88%, 08/15/17 200,000 266,133 8.50%, 02/15/20 1,500,000 1,965,468 6.25%, 08/15/23 1,050,000 1,114,805 6.38%, 08/15/27 1,860,000 2,012,215 ---------- 6,870,815 ---------- ================================================================================ U.S.TREASURY NOTES (8.7%) 5.75%, 11/30/02 495,000 505,886 4.25%, 05/31/03 915,000 933,513 3.63%, 08/31/03 150,000 151,934 4.75%, 02/15/04 815,000 839,163 5.88%, 02/15/04 100,000 104,867 5.25%, 05/15/04 285,000 296,222 6.00%, 08/15/04 255,000 269,434 5.88%, 11/15/04 820,000 865,228 PRINCIPAL AMOUNT VALUE ================================================================================ U.S.TREASURY NOTES (continued) 5.75%, 11/15/05 $ 2,675,000 $2,821,498 5.88%, 11/15/05 465,000 492,555 4.63%, 05/15/06 640,000 648,525 3.50%, 11/15/06 660,000 635,560 6.13%, 08/15/07 95,000 101,713 5.00%, 08/15/11 570,000 565,681 ---------- 9,231,779 ---------- TOTAL U.S. GOVERNMENT AND AGENCY LONG-TERM OBLIGATIONS 72,880,107 ---------- ================================================================================ CORPORATE BONDS (27.2%) ================================================================================ AEROSPACE (0.6%) Lockheed Martin Corp., 7.25%, 05/15/06 300,000 319,445 United Technologies Corp., 6.35%, 03/01/11 300,000 307,532 ---------- 626,977 ---------- ================================================================================ AIRLINES (0.4%) Continental Airlines, 6.56%, 02/15/12 395,000 403,950 Southwest Airlines Corp., 7.88%, 09/01/07 24,000 26,386 ---------- 430,336 ---------- ================================================================================ AUTOMOBILES (0.6%) DaimlerChrysler, 6.40%, 05/15/06 350,000 357,525 Ford Motor Co., 7.45%, 07/16/31 250,000 235,524 ---------- 593,049 ---------- ================================================================================ BANKING (4.7%) Anadarko Finance Co., 6.50%, 08/01/11 200,000 205,100 Andina de Fomento Corp., 6.88%, 03/21/02 400,000 404,951 Banc One Corp., 7.88%, 08/01/10 100,000 110,883 Bank of America, 5.88%, 02/15/09 400,000 399,550 Bank One Corp., 6.88%, 08/01/06 115,000 122,118 Bank One Corp., 8.00%, 04/29/27 122,000 137,261 BB&T Corp., 7.00%, 05/15/11 300,000 306,436 BSCH Issuances Ltd., 7.63%, 09/14/10 100,000 107,504 Citigroup, Inc., 5.70%, 06/02/04 500,000 518,159 Deutsche Bank Financial, 7.50%, 04/25/09 100,000 109,230 First Union Corp., 7.55%, 08/18/05 220,000 237,761 FleetBoston Financial Corp., 7.25%, 09/15/05 250,000 268,962 Inter-American Development Bank, 6.80%, 10/15/25 470,000 491,912 International Bank for Reconstruction and Development, 3.50%, 10/22/04 150,000 149,220 MBNA America Bank, 6.88%, 07/15/04 250,000 260,444 Mellon Funding Corp., 6.88%, 03/01/03 378,000 390,632 Wells Fargo & Company, 6.45%, 02/01/11 200,000 204,869 Wells Fargo Company, 7.25%, 08/24/05 400,000 432,196 ---------- 4,857,188 ----------
2002 SEMIANNUAL REPORT 73
STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NATIONWIDE BOND INDEX FUND (Continued) ================================================================================ CORPORATE BONDS (CONTINUED) ================================================================================ PRINCIPAL AMOUNT VALUE ============================================================================= CABLE TELEVISION (0.3%) AT&T Corp., 8.25%, 01/15/03 100,000 $ 102,544 Comcast Cable Communications, 6.20%, 11/15/08 250,000 239,080 ---------- 341,624 ---------- ============================================================================= CHEMICALS (0.3%) E.I. Dupont Nemour, 6.50%, 01/15/28 90,000 88,076 Eastman Chemical, 7.00%, 04/15/12 200,000 204,438 ---------- 292,514 ---------- ============================================================================= COMPUTERS (0.3%) First Data Corp., 6.38%, 12/15/07 350,000 369,039 ---------- ============================================================================= DEPARTMENT STORES (0.6%) Kimberly-Clark Corp., 7.10%, 08/01/07 106,000 115,402 Target Corp., 10.00%, 01/01/11 112,000 142,101 Target Corp., 7.00%, 07/15/31 70,000 71,775 Wal-Mart Stores, Inc., 6.88%, 08/10/09 300,000 321,504 ---------- 650,782 ---------- ============================================================================= ELECTRONICS (1.6%) Exelon Corp., 6.75%, 05/01/2011 180,000 181,894 Florida Power and Light, 6.88%, 12/01/05 225,000 238,728 PPL Energy Supply, 6.40%, 11/01/11 (b) 200,000 187,266 Progress Energy, Inc., 5.85%, 10/30/08 320,000 313,086 Progress Energy, Inc., 7.00%, 10/30/31 214,000 207,598 Raytheon Company, 6.30%, 03/15/05 250,000 257,125 Scana Corp., 6.88%, 05/15/11 350,000 364,670 ---------- 1,750,367 ---------- ============================================================================= FARM MACHINERY & EQUIPMENT (0.1%) Deere & Co., 7.85%, 05/15/10 130,000 141,502 ---------- ============================================================================= FINANCIAL SERVICES (4.8%) Ace Ina Holdings, 8.30%, 08/15/06 250,000 276,649 American Express, 6.88%, 11/01/05 100,000 106,239 Aristar, Inc., 7.38%, 09/01/04 300,000 319,058 Associates Corp. of North America, 6.95%, 11/01/2018 200,000 204,824 Axa Financial, Inc., 7.75%, 08/01/10 100,000 109,609 Bear Stearns Co., Inc., 7.63%, 02/01/05 100,000 107,228 Capital One Bank, 6.88%, 02/01/06 100,000 100,037 CitiFinancial Credit Co., 10.00%, 05/15/09 100,000 122,915 Citigroup, Inc., 6.50%, 02/07/06 250,000 236,902 Ford Motor Credit Co., 6.88%, 02/01/06 460,000 465,986 Ford Motor Credit Co., 7.38%, 02/01/11 350,000 351,718 General Electric Cap Corp., 5.88%, 02/15/12 100,000 98,019 General Motors Acceptance Corp., 6.85%, 06/17/04 580,000 603,164 General Motors Acceptance Corp., 8.00%, 11/01/31 200,000 209,673 Goldman Sachs Group, Inc., 7.63%, 08/17/05 300,000 324,544 Household Finance Corp., 6.50%, 01/24/06 350,000 358,936 Intl Lease Finance Corp., 5.35%, 05/03/04 200,000 203,878 JP Morgan & Co., 6.25%, 01/15/09 100,000 100,164 PRINCIPAL AMOUNT VALUE ============================================================================= FINANCIAL SERVICES (continued) Lehman Brothers Holdings, Inc., 6.63%, 04/01/04 $ 200,000 $ 209,119 Lehman Brothers Holdings, Inc., 7.88%, 08/15/10 97,000 104,444 Morgan Stanley Dean Witter, 7.13%, 01/15/03 100,000 103,188 Morgan Stanley Dean Witter, 7.75%, 06/15/05 200,000 217,178 ---------- Textron Financial Corp., 5.95%, 03/15/04 100,000 101,447 ---------- 5,034,919 ---------- ============================================================================= FOOD & RELATED (1.7%) Anheuser-Busch Co, Inc., 6.00%, 11/01/41 350,000 322,430 Kellogg Co., 6.00%, 04/01/06 163,000 167,738 Kraft Foods, Inc., 5.63%, 11/01/2011 350,000 338,411 Pepsi Bottling Holdings, Inc., 5.38%, 02/17/04 (b) 120,000 123,569 Pepsi Bottling Holdings, Inc., 5.63%, 02/17/09 (b) 157,000 155,329 Pepsico, 4.50%, 09/15/04 80,000 81,167 Safeway Stores, 7.25%, 02/01/31 406,000 418,374 Safeways, Inc., 6.15%, 01/03/06 150,000 154,170 ---------- 1,761,188 ---------- ============================================================================= HEALTHCARE (0.3%) Tenet Healthcare Corp., 5.38%, 11/15/06 350,000 344,800 ---------- ============================================================================= INSURANCE (0.4%) Allstate Corp., 5.38%, 12/01/06 150,000 151,044 Metlife, Inc., 6.13%, 12/01/11 250,000 249,456 ---------- 400,500 ---------- ============================================================================= MANUFACTURING (0.1%) Tyco International Group, 6.88%, 01/15/29 177,000 131,667 ---------- ============================================================================= METALS (0.1%) Alcoa, Inc., 6.75%, 05/01/11 150,000 149,113 ---------- ============================================================================= MULTIMEDIA (0.4%) News America Holdings, Inc., 8.00%, 10/17/16 200,000 210,501 Time Warner Entertainment Co., 9.63%, 05/01/02 100,000 100,017 Time Warner, Inc., 6.88%, 06/15/18 148,000 132,427 ---------- 442,945 ---------- ============================================================================= OIL & GAS (2.0%) Apache Corp., 7.625%, 07/01/19 400,000 434,999 Coastal Corp., 6.50%, 06/01/08 100,000 98,641 Conoco, Inc., 6.35%, 04/15/09 350,000 359,299 Consolidated Natural Gas, Inc., 6.25%, 11/01/11 150,000 147,049 El Paso Corp., 7.00%, 05/15/11 100,000 99,384 Firstenergy Corp., 6.45%, 11/15/11 250,000 236,182 Kinder Morgan, Inc., 6.65%, 03/1/05 120,000 124,662 Phillips Petroleum Co., 8.75%, 05/25/10 270,000 313,226 Praxair, Inc., 6.50%, 03/01/08 180,000 187,233 Transocean Sedco Forex, Inc., 6.63%, 04/15/11 163,000 163,244 ---------- 2,163,919 ----------
SEMIANNUAL REPORT 2002 74 ================================================================================ CORPORATE BONDS (CONTINUED) ================================================================================
PRINCIPAL AMOUNT VALUE ============================================================================= PAPER & FOREST PRODUCTS (0.6%) Abitibi Consolidated, Inc., 8.55%, 02/01/10 $ 50,000 $ 51,345 International Paper Co., 8.13%, 07/08/05 270,000 292,770 Weyerhaeuser Corp., 5.50%, 03/15/05 (b) 120,000 121,449 Weyerhaeuser Corp., 6.13%, 03/15/07 (b) 35,000 35,398 Weyerhaeuser Corp., 5.95%, 11/01/08 (b) 115,000 113,591 ----------- 614,553 ----------- ============================================================================= PHARMACEUTICALS (0.1%) Abbott Laboratories, 5.63%, 07/01/06 104,000 106,719 ----------- ============================================================================= RAILROADS (0.2%) Union Pacific Corp., 5.75%, 10/15/2007 200,000 199,892 ----------- ============================================================================= REAL ESTATE (0.4%) Avalonbay Communities, Inc., 6.63%, 09/15/11 100,000 99,924 BRE Properties, Inc., 5.95%, 03/15/07 140,000 139,618 Equity Residential Property's, 6.88%, 11/01/04 200,000 209,178 ----------- 448,720 ----------- ============================================================================= SOVEREIGN (3.3%) British Columbia, 4.63%, 10/03/06 350,000 346,492 Credit Suisse, Inc., 5.88%, 08/01/06 100,000 101,703 Credit Suisse, Inc., 6.13%, 11/15/11 200,000 193,425 Government of Canada, 5.25%, 11/05/08 630,000 635,209 Kingdom of Sweden, 6.50%, 03/04/03 350,000 361,151 Ontario Province, 5.50%, 10/01/08 350,000 353,953 Province of Ontario, 7.38%, 01/27/03 172,000 178,409 Province of Saskatchewan, 8.00%, 07/15/04 147,000 159,647 Quebec Providence, 7.50%, 09/15/29 500,000 558,169 Republic of Finland, 5.88%, 02/27/06 300,000 312,067 Republic of Italy, 4.38%, 10/25/06 350,000 341,878 ----------- 3,542,103 ----------- ============================================================================= TELECOMMUNICATIONS (2.6%) AT&T Wireless Services, Inc., 8.75%, 03/01/31 300,000 293,860 BellSouth Corp., 6.00%, 10/15/11 141,000 136,141 Citizens Communications, 7.63%, 08/15/08 350,000 348,478 Clear Channel Communications, Inc., 6.00%, 11/01/06 150,000 145,871 Dominion Resources, Inc., 8.13%, 06/15/10 219,000 241,105 GTE Corp., 6.84%, 04/15/18 350,000 322,693 Qwest Capital Funding, Inc., 7.75%, 02/15/31 325,000 223,010 SBC Communications, 6.25%, 03/15/2011 145,000 142,830 Sprint Capital Corp., 6.90%, 05/01/19 350,000 285,471 Verizon Global Funding Corp., 6.75%, 12/01/05 50,000 51,660 Vodafone Airtouch PLC, 7.75%, 02/15/10 350,000 374,294 WorldCom, Inc., 8.00%, 05/15/06 300,000 147,000 WorldCom, Inc., 8.25%, 05/15/31 60,000 26,400 ----------- 2,738,813 ----------- ============================================================================= TOBACCO (0.4%) Philip Morris, 8.25%, 10/15/03 350,000 372,425 ----------- PRINCIPAL AMOUNT VALUE ============================================================================= TRANSPORTATION (0.3%) CSX Corp., 7.45%, 05/01/07 $ 180,000 $ 193,604 Delta Air Lines, Inc., 10.38%, 02/01/11 163,000 162,089 ----------- 355,693 ----------- TOTAL CORPORATE BONDS 28,861,347 ----------- ============================================================================= COMMERCIAL MORTGAGE BACK SECURITY (1.9%) ============================================================================= COMMERCIAL MBS (1.9%) Security Life of Denver TOTAL COMMERCIAL MORTGAGE BACK SECURITY 2,000,000 2,052,982 ----------- 2,052,982 ----------- ============================================================================= REPURCHASE AGREEMENT (2.7%) ============================================================================= Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $2,891,693 (Fully collateralized by Fannie Mae Securities) 2,891,557 2,891,557 ----------- TOTAL REPURCHASE AGREEMENT 2,891,557 ----------- TOTAL INVESTMENTS (COST $107,064,123) (A) - 100.4% 106,685,993 LIABILITIES IN EXCESS OF OTHER ASSETS - (0.4)% (416,695) ----------- NET ASSETS - 100.0% $106,269,298 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 716,822 Unrealized depreciation (1,094,952) ------------ Net unrealized depreciation $ (378,130) ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Represents a restricted security acquired and eligible for resale under rule 144A, which limits the resale to certain qualified buyers. These securities were deemed liquid pursuant to procedures approved by the Board of Trustees.
TBA To Be Announced. SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 75
STATEMENTS OF ASSETS AND LIABILITIES April 30, 2002 (Unaudited) ========================================================================================================================= NATIONWIDE NATIONWIDE MID CAP NATIONWIDE NATIONWIDE NATIONWIDE S&P 500 MARKET SMALL CAP INTERNATIONAL BOND INDEX INDEX FUND INDEX FUND INDEX FUND INDEX FUND FUND ========================================================================================================================= ASSETS: Investments, at value (cost $563,495,653; 58,533,735; $27,846,832; $72,667,462 and $104,172,566; respectively) $471,205,396 $63,745,692 $29,937,973 $ 73,804,402 $103,794,436 Repurchase agreements, at cost 27,206,202 6,760,781 4,504,558 5,627,132 2,891,557 ------------- ----------- ------------ --------------- ------------- Total Investments 498,411,598 70,506,473 34,442,531 79,431,534 106,685,993 ------------- ----------- ------------ --------------- ------------- Cash - - - 64 18,883 Foreign currency, at value (cost $0; $0; $0; $916,702 and $0; respectively) - - - 923,143 - Interest and dividends receivable 350,750 32,355 15,549 240,502 1,265,463 Receivable for capital shares issued - - 1,001 - - Receivable for investments sold - 9,823 2,407 - 605,238 Unrealized appreciation on forward foreign currency contracts - - - 53,262 - Receivable from adviser 42,108 6,121 6,205 12,783 10,898 Receivable for variation margin on futures contracts 347,475 87,675 91,800 29,897 - Reclaims receivable - - - 20,282 - Prepaid expenses and other assets 24,837 13,074 12,595 16,933 15,037 ------------- ----------- ------------ --------------- ------------- Total Assets 499,176,768 70,655,521 34,572,088 80,728,400 108,601,512 ------------- ----------- ------------ --------------- ------------- LIABILITIES: Payable to custodian - - 5,509 - - Distributions payable - - - - 421,437 Payable for investments purchased - - - 167,856 1,866,841 Unrealized depreciation on forward foreign currency contracts - - - 1,275 - Accrued expenses and other payables Investment advisory fees 54,018 11,715 5,392 17,274 18,583 Fund administration and transfer agent fees 65,676 8,339 3,909 11,382 10,085 Distribution fees 39,074 3,511 2,009 3,022 4,533 Administrative servicing fees 68,752 2,099 1,147 1,708 2,685 Other 57,564 14,148 7,820 3,738 8,050 ------------- ----------- ------------ --------------- ------------- Total Liabilities 285,084 39,812 25,786 206,255 2,332,214 ------------- ----------- ------------ --------------- ------------- NET ASSETS $498,891,684 $70,615,709 $34,546,302 $ 80,522,145 $106,269,298 ============= =========== ============ =============== ============= REPRESENTED BY: Capital $599,911,803 $64,875,656 $31,993,190 $ 79,601,684 $106,854,238 Accumulated net investment income (loss) 261,061 28,669 28,572 320,453 1,074 Accumulated net realized gains (losses) from investment, futures and foreign currency transactions (7,472,076) 538,722 398,580 (522,377) (207,884) Net unrealized appreciation (depreciation) on investments, futures and translation of assets and liabilities denominated in foreign currencies (93,809,104) 5,172,662 2,125,960 1,122,385 (378,130) ------------- ----------- ------------ --------------- ------------- NET ASSETS $498,891,684 $70,615,709 $34,546,302 $ 80,522,145 $106,269,298 ============= =========== ============ =============== ============= NET ASSETS: Class A Shares $ 4,553,428 $19,413,582 $10,172,031 $ 14,373,102 $ 22,259,313 Class B Shares 2,730,315 40,658 77,142 87,324 16,620 Institutional Class Shares 161,591,337 51,161,469 24,297,129 66,061,719 83,993,365 Service Class Shares 284,388,096 - - - - Institutional Service Class Shares 45,530,767 - - - - Local Fund Shares 97,741 - - - - ------------- ----------- ------------ --------------- ------------- Total $498,891,684 $70,615,709 $34,546,302 $ 80,522,145 $106,269,298 ============= =========== ============ =============== ============= SHARES OUTSTANDING (unlimited number of shares authorized): Class A Shares 491,852 1,666,144 1,028,103 2,165,523 2,099,955 Class B Shares 296,252 3,509 7,825 13,273 1,568 Institutional Class Shares 17,399,101 4,362,780 2,440,364 9,939,263 7,929,642 Service Class Shares 30,746,137 - - - - Institutional Service Class Shares 4,906,182 - - - - Local Fund Shares 10,504 - - - - ------------- ----------- ------------ --------------- ------------- Total 53,850,028 6,032,433 3,476,292 12,118,059 10,031,165 ============= =========== ============ =============== ============= ========================================================================================================================= See notes to financial statements. SEMIANNUAL REPORT 2002 76 NATIONWIDE NATIONWIDE MID CAP NATIONWIDE NATIONWIDE NATIONWIDE S&P 500 MARKET SMALL CAP INTERNATIONAL BOND INDEX INDEX FUND INDEX FUND INDEX FUND INDEX FUND FUND ========================================================================================================================= NET ASSET VALUE: Class A Shares $ 9.26 $ 11.65 $ 9.89 $ 6.64 $ 10.60 Class B Shares (a) $ 9.22 $ 11.59 $ 9.86 $ 6.58 $ 10.60 Institutional Class Shares $ 9.29 $ 11.73 $ 9.96 $ 6.65 $ 10.59 Service Class Shares $ 9.25 $ - $ - $ - $ - Institutional Service Class Shares $ 9.28 $ - $ - $ - $ - Local Fund Shares $ 9.31 $ - $ - $ - $ - MAXIMUM OFFERING PRICE PER SHARE (100%/100% - maximum sales charge) of net asset value adjusted to the nearest cent): Class A Shares $ 9.82 $ 12.36 $ 10.49 $ 7.05 11.25$ ------------- ------------ ------------ --------------- ------------- Maximum Sales Charge - Class A Shares 5.75% 5.75% 5.75% 5.75% 5.75% ============= ============ ============ =============== ============= ========================================================================================================================= (a) For Class B Shares, the redemption price per share varies by length of time shares are held. See notes to financial statements.
2002 SEMIANNUAL REPORT 77 STATEMENTS OF OPERATIONS For the Six Months Ended April 30, 2002 (Unaudited) ================================================================================
NATIONWIDE NATIONWIDE NATIONWIDE NATIONWIDE S&P 500 MID CAP SMALL CAP INTERNATIONAL INDEX FUN MARKET INDEX FUND INDEX FUND INDEX FUND ================================================================================================================================ INVESTMENT INCOME: Interest income $ 301,276 $ 43,179 $ 23,189 $ 36,634 Dividend income (net of foreign withholding tax of $286; $0; $0; $68,686 and $0; respectively) 2,875,934 215,118 132,902 551,845 ------------ ------------ ------------ --------------- Total Income 3,177,210 258,297 156,091 588,479 ------------ ------------ ------------ --------------- EXPENSES: Investment advisory fees 297,797 51,741 23,741 83,177 Fund administration and transfer agent fees 332,411 41,887 35,566 73,725 Distribution fees Class A 4,881 14,086 8,524 17,509 Distribution fees Class B 11,602 59 106 333 Distribution fees Service Class 339,263 - - - Distribution fees Local Class 36 - - - Administrative servicing fees Class A 3 7,903 5,072 10,339 Administrative servicing fees Service Class 339,263 - - - Administrative servicing fees Institutional Service Class 55,883 - - - Registration and filing fees 16,185 10,052 9,854 13,725 Other 87,089 5,919 3,773 9,696 ------------ ------------ ------------ --------------- Total expenses before reimbursed expenses 1,348,786 131,647 86,636 208,504 Expenses reimbursed (204,918) (33,001) (36,641) (64,692) ------------ ------------ ------------ --------------- Total Expenses 1,143,868 98,646 49,995 143,812 ------------ ------------ ------------ --------------- NET INVESTMENT INCOME (LOSS) 2,033,342 159,651 106,096 444,667 ------------ ------------ ------------ --------------- REALIZED / UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: Net realized gains (losses) on investment transactions (1,577,466) 155,605 40,771 123,163 Net realized gains (losses) on futures transactions 1,435,595 614,094 375,007 107,485 Net realized gains (losses) on foreign currency transactions - - - 15,057 ------------ ------------ ------------ --------------- Net realized gains (losses) on investment, futures and foreign currency transactions (141,871) 769,699 415,778 245,705 Net change in unrealized appreciation/depreciation on investments, futures and translation of assets and liabilities denominated in foreign currencies 382,458 6,766,122 3,272,717 2,437,383 ------------ ------------ ------------ --------------- Net realized/unrealized gains (losses) on investments, futures and foreign currencies 240,587 7,535,821 3,688,495 2,683,088 ------------ ------------ ------------ --------------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,273,929 $ 7,695,472 $ 3,794,591 $ 3,127,755 ============ ============ ============ =============== NATIONWIDE BOND INDEX FUND ----------- INVESTMENT INCOME: Interest income 2,045,165 Dividend income (net of foreign withholding tax of $286; $0; $0; $68,686 and $0; respectively) - ----------- Total Income 2,045,165 ----------- EXPENSES: Investment advisory fees 85,939 Fund administration and transfer agent fees 67,380 Distribution fees Class A 20,557 Distribution fees Class B 54 Distribution fees Service Class - Distribution fees Local Class - Administrative servicing fees Class A 12,360 Administrative servicing fees Service Class - Administrative servicing fees Institutional Service Class - Registration and filing fees 11,551 Other 8,811 ----------- Total expenses before reimbursed expenses 206,652 Expenses reimbursed (48,206) ----------- Total Expenses 158,446 ----------- NET INVESTMENT INCOME (LOSS) 1,886,719 ----------- REALIZED / UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: Net realized gains (losses) on investment transactions (207,884) Net realized gains (losses) on futures transactions - Net realized gains (losses) on foreign currency transactions - ----------- Net realized gains (losses) on investment, futures and foreign currency transactions (207,884) Net change in unrealized appreciation/depreciation on investments, futures and translation of assets and liabilities denominated in foreign currencies (1,575,794) ----------- Net realized/unrealized gains (losses) on investments, futures and foreign currencies (1,783,678) ----------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 103,041 ============ ===================================================================================
See notes to financial statements. SEMIANNUAL REPORT 2002 78 STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
NATIONWIDE S&P 500 NATIONWIDE MID CAP INDEX FUND MARKET INDEX FUND ============================================================ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED APRIL 30, 2002 OCTOBER 31, 2001 APRIL 30, 2002 ================================================================================================================= (UNAUDITED) (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ 2,033,342 $ 2,913,492 $ 159,651 Net realized gains (losses) on investment and futures transactions (141,871) (5,623,361) 769,699 Net change in unrealized appreciation/depreciation on investments and futures 382,458 (99,594,424) 6,766,122 ------------------ ------------------ -------------------- Change in net assets resulting from operations 2,273,929 (102,304,293) 7,695,472 ------------------ ------------------ -------------------- DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM: Net investment income (16,834) (15,838) (28,331) Net realized gains on investments - (31,807) - DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM: Net investment income (3,198) (1,135) (12) Net realized gains on investments - (17,757) - DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM: Net investment income (783,346) (949,648) (158,980) Net realized gains on investments - (1,277,235) - DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS FROM: Net investment income (1,081,465) (1,431,220) - Net realized gains on investments - (2,834,191) - DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS FROM: Net investment income (211,059) (272,466) - Net realized gains on investments - (463,945) - DISTRIBUTIONS TO LOCAL FUND SHAREHOLDERS FROM: Net investment income (551) (72,940) - Net realized gains on investments - (154,404) - ------------------ ------------------ -------------------- Change in net assets from shareholder distributions (2,096,453) (7,522,586) (187,323) ------------------ ------------------ -------------------- Change in net assets from capital transactions 116,508,979 164,726,629 27,355,497 ------------------ ------------------ -------------------- Change in net assets 116,686,455 54,899,750 34,863,646 NET ASSETS: Beginning of period 382,205,229 327,305,479 35,752,063 ------------------ ------------------ -------------------- End of period $ 498,891,684 $ 382,205,229 $ 70,615,709 ================== ================== ==================== NATIONWIDE MID CAP NATIONWIDE SMALL MARKET INDEX FUND CAP INDEX FUND =========================================================== YEAR ENDED SIX MONTHS ENDED YEAR ENDED OCTOBER 31, 2001 APRIL 30, 2002 OCTOBER 31, 2001 ================================================================================================================ (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ 142,402 $ 106,096 $ 72,284 Net realized gains (losses) on investment and futures transactions (107,859) 415,778 16,529 Net change in unrealized appreciation/depreciation on investments and futures (2,067,718) 3,272,717 (1,094,802) ------------------- ------------------ ------------------ Change in net assets resulting from operations (2,033,175) 3,794,591 (1,005,989) ------------------- ------------------ ------------------ DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM: Net investment income (35,894) (18,955) (12,050) Net realized gains on investments (161,750) - - DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM: Net investment income - (78) (b) - Net realized gains on investments (1) (a) - - DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM: Net investment income (90,576) (74,996) (48,514) Net realized gains on investments (393,621) - - DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS FROM: Net investment income - - - Net realized gains on investments - - - DISTRIBUTIONS TO INSTITUTIONAL SERVICE CLASS SHAREHOLDERS FROM: Net investment income - - - Net realized gains on investments - - - DISTRIBUTIONS TO LOCAL FUND SHAREHOLDERS FROM: Net investment income - - - Net realized gains on investments - - - ------------------- ------------------ ------------------ Change in net assets from shareholder distributions (681,842) (94,029) (60,564) ------------------- ------------------ ------------------ Change in net assets from capital transactions 27,461,276 15,381,146 14,197,846 ------------------- ------------------ ------------------ Change in net assets 24,746,259 19,081,708 13,131,293 NET ASSETS: Beginning of period 11,005,804 15,464,594 2,333,301 ------------------- ------------------ ------------------ End of period $ 35,752,063 $ 34,546,302 $ 15,464,594 =================== ================== ================== ================================================================================================================
(a) For the period from May 25, 2001 (commencement of operations) through October 31, 2001. (b) For the period from November 29, 2001 (commencement of operations) through April 30, 2002. See notes to financial statements. 2002 SEMIANNUAL REPORT 79 STATEMENTS OF CHANGES IN NET ASSETS ================================================================================
NATIONWIDE INTERNATIONAL INDEX FUND ========================================= SIX MONTHS ENDED YEAR ENDED APRIL 30, 2002 OCTOBER 31, 2001 =========================================================================================================================== (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ 444,667 $ 79,446 Net realized gains (losses) on investment, futures and foreign currency transactions $ 245,705 (732,757) Net change in unrealized appreciation/depreciation on investments, futures and translation of assets and liabilities denominated in foreign currencies 2,437,383 (1,100,661) ------------------- -------------------- Change in net assets resulting from operations 3,127,755 (1,753,972) ------------------- -------------------- DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM: Net investment income (17,426) (8,567) Net realized gains on investments - - DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM: Net investment income - (300) Net realized gains on investments - - DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM: Net investment income (126,674) (59,882) Net realized gains on investments - - ------------------- -------------------- Change in net assets from shareholder distributions (144,100) (68,749) ------------------- -------------------- Change in net assets from capital transactions 34,180,274 42,038,923 ------------------- -------------------- Change in net assets 37,163,929 40,216,202 NET ASSETS: Beginning of period 43,358,216 3,142,014 ------------------- -------------------- End of period $ 80,522,145 $ 43,358,216 =================== ==================== NATIONWIDE BOND INDEX FUND ====================================== SIX MONTHS ENDED YEAR ENDED APRIL 30, 2002 OCTOBER 31, 2001 ======================================================================================================================== (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ 1,886,719 $ 678,569 Net realized gains (losses) on investment, futures and foreign currency transactions (207,884) 53,191 Net change in unrealized appreciation/depreciation on investments, futures and translation of assets and liabilities denominated in foreign currencies (1,575,794) 1,198,945 ----------------- ------------------ Change in net assets resulting from operations 103,041 1,930,705 ----------------- ------------------ DISTRIBUTIONS TO CLASS A SHAREHOLDERS FROM: Net investment income (367,108) (155,269) Net realized gains on investments (12,495) (4,108) DISTRIBUTIONS TO CLASS B SHAREHOLDERS FROM: Net investment income (213) (17) (a) Net realized gains on investments (11) - DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM: Net investment income (1,519,399) (523,283) Net realized gains on investments (60,021) (36,451) ----------------- ------------------ Change in net assets from shareholder distributions (1,959,247) (719,128) ----------------- ------------------ Change in net assets from capital transactions 52,672,319 42,126,308 ----------------- ------------------ Change in net assets 50,816,113 43,337,885 NET ASSETS: Beginning of period 55,453,185 12,115,300 ----------------- ------------------ End of period $ 106,269,298 $ 55,453,185 ================= ================== ========================================================================================================================
(a) For the period from October 12, 2001 (commencement of operations) through October 31, 2001. See notes to financial statements. 80 SEMIANNUAL REPORT 2002 FINANCIAL HIGHLIGHTS Selected Data for Each Share of Capital Outstanding ================================================================================
NATIONWIDE S&P 500 INDEX FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ==================================================================================================== NET ASSET NET REALIZED VALUE, AND BEGINNING NET UNREALIZED TOTAL FROM NET NET OF INVESTMENT GAINS(LOSSES) INVESTMENT INVESTMENT REALIZED TOTAL PERIOD INCOME (LOSS) ON INVESTMENTS ACTIVITIES INCOME GAINS DISTRIBUTIONS =========================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 12.73 0.05 (0.24) (0.19) (0.08) - (0.08) Year Ended October 31, 2001 $ 12.46 0.06 (3.17) (3.11) (0.06) (0.17) (0.23) Six Months Ended April 30, 2002 (Unaudited) $ 9.12 0.03 0.15 0.18 (0.04) - (0.04) CLASS B SHARES Period Ended October 31, 2000 (d) $ 12.73 (0.01) (0.25) (0.26) (0.05) - (0.05) Year Ended October 31, 2001 $ 12.42 0.01 (3.16) (3.15) (0.01) (0.17) (0.18) Six Months Ended April 30, 2002 (Unaudited) $ 9.09 - 0.14 0.14 (0.01) - (0.01) INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 12.73 0.09 (0.25) (0.16) (0.08) - (0.08) Year Ended October 31, 2001 $ 12.49 0.11 (3.17) (3.06) (0.11) (0.17) (0.28) Six Months Ended April 30, 2002 (Unaudited) $ 9.15 0.06 0.14 0.20 (0.06) - (0.06) SERVICE CLASS SHARES Period Ended October 31, 1999 (e) $ 9.66 0.09 2.25 2.34 (0.09) - (0.09) Year Ended October 31, 2000 $ 11.91 0.07 0.56 0.63 (0.07) (0.02) (0.09) Year Ended October 31, 2001 $ 12.45 0.07 (3.17) (3.10) (0.07) (0.17) (0.24) Six Months Ended April 30, 2002 (Unaudited) $ 9.11 0.03 0.15 0.18 (0.04) - (0.04) INSTITUTIONAL SERVICE CLASS SHARES Period Ended October 31, 1999 (e) $ 9.66 0.10 2.27 2.37 (0.09) - (0.09) Year Ended October 31, 2000 $ 11.94 0.08 0.56 0.64 (0.08) (0.02) (0.10) Year Ended October 31, 2001 $ 12.48 0.08 (3.17) (3.09) (0.08) (0.17) (0.25) Six Months Ended April 30, 2002 (Unaudited) $ 9.14 0.03 0.16 0.19 (0.05) - (0.05) LOCAL FUND SHARES Period Ended October 31, 1998 (f) $ 10.00 0.04 (0.35) (0.31) (0.03) - (0.03) Year Ended October 31, 1999 $ 9.66 0.12 2.27 2.39 (0.10) - (0.10) Year Ended October 31, 2000 $ 11.95 0.11 0.54 0.65 (0.10) (0.02) (0.12) Year Ended October 31, 2001 $ 12.48 0.07 (3.14) (3.07) (0.07) (0.17) (0.24) Six Months Ended April 30, 2002 (Unaudited) $ 9.17 0.05 0.14 0.19 (0.05) - (0.05) RATIOS / SUPPLEMENTAL DATA ========================================================================================================= RATIO OF NET NET NET RATIO OF INVESTMENT RATIO OF ASSET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES VALUE, TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO END OF PERIOD RETURN (a) PERIOD (000s) NET ASSETS NET ASSETS NET ASSETS (b) TURNOVER (c) ================================================================================================================================= CLASS A SHARES Period Ended $ 12.46 5.71% (g) $ 2,214 0.63% (h) 0.47% (h) 0.88% (h) 9.72% October 31, 2000 (d) Year Ended $ 9.12 (25.24%) $ 3,237 0.63% 0.70% 1.03% 1.85% October 31, 2001 Six Months Ended $ 9.26 1.97% (g) $ 4,553 0.55% (h) 0.83% (h) 0.64% (h) 0.41% April 30, 2002 (Unaudited) CLASS B SHARES Period Ended $ 12.42 5.17% (g) $ 987 1.23% (h) (0.12%) (h) 2.05% (h) 9.72% October 31, 2000 (d) Year Ended $ 9.09 (25.65%) $ 1,879 1.23% 0.11% 2.21% 1.85% October 31, 2001 Six Months Ended $ 9.22 1.57% (g) $ 2,730 1.23% (h) 0.15% (h) 1.45% (h) 0.41% April 30, 2002 (Unaudited) INSTITUTIONAL CLASS SHARES Period Ended $ 12.49 6.01% (g) $ 92,190 0.23% (h) 0.83% (h) 0.30% (h) 9.72% October 31, 2000 (d) Year Ended $ 9.15 (24.84%) $ 107,955 0.23% 1.10% 0.29% 1.85% October 31, 2001 Six Months Ended $ 9.29 2.11% (g) $ 161,591 0.23% (h) 1.15% (h) 0.32% (h) 0.41% April 30, 2002 (Unaudited) SERVICE CLASS SHARES Period Ended $ 11.91 24.27% (g) $ 72,049 0.63% (h) 0.69% (h) 0.83% (h) 55.07% October 31, 1999 (e) Year Ended $ 12.45 5.25% $ 189,443 0.63% 0.54% 0.70% 9.72% October 31, 2000 Year Ended $ 9.11 (25.22%) $ 233,943 0.63% 0.70% 0.69% 1.85% October 31, 2001 Six Months Ended $ 9.25 1.93% (g) $ 284,388 0.63% (h) 0.76% (h) 0.72% (h) 0.41% April 30, 2002 (Unaudited) INSTITUTIONAL SERVICE CLASS SHARES Period Ended $ 11.94 24.64% (g) $ 17,389 0.48% (h) 0.87% (h) 0.67% (h) 55.07% October 31, 1999 (e) Year Ended $ 12.48 5.37% $ 31,917 0.48% 0.69% 0.55% 9.72% October 31, 2000 Year Ended $ 9.14 (25.04%) $ 35,097 0.48% 0.84% 0.54% 1.85% October 31, 2001 Six Months Ended $ 9.28 2.00% (g) $ 45,531 0.48% (h) 0.91% (h) 0.57% (h) 0.41% April 30, 2002 (Unaudited) LOCAL FUND SHARES Period Ended $ 9.66 (3.08%) (g) $ 22,325 0.35% (h) 1.55% (h) 0.64% (h) 3.07% October 31, 1998 (f) Year Ended $ 11.95 24.85% $ 30,674 0.35% 1.05% 0.52% 55.07% October 31, 1999 Year Ended $ 12.48 5.43% $ 10,555 0.35% 0.84% 0.38% 9.72% October 31, 2000 Year Ended $ 9.17 (24.91%) $ 96 0.35% 0.94% 0.37% 1.85% October 31, 2001 Six Months Ended $ 9.31 2.07% (g) $ 98 0.33% (h) 1.07% (h) 0.39% (h) 0.41% April 30, 2002 (Unaudited) ============================================================================================================================
(a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For the period from December 29, 1999 (commencement of operations) through October 31, 2000. (e) For the period from November 2, 1998 (commencement of operations) through October 31, 1999. (f) For the period from July 24, 1998 (commencement of operations) through October 31, 1998. (g) Not annualized. (h) Annualized. See notes to financial statements. 2002 SEMIANNUAL REPORT 81 FINANCIAL HIGHLIGHTS Selected Data for Each Share of Capital Outstanding ================================================================================
NATIONWIDE MID CAP MARKET INDEX FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ========================================================================================================== NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM BEGINNING OF INVESTMENT GAINS (LOSSES) INVESTMENT NET INVESTMENT NET REALIZED TOTAL PERIOD INCOME (LOSS) ON INVESTMENTS ACTIVITIES INCOME GAINS DISTRIBUTIONS =============================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 10.00 0.09 1.76 1.85 (0.08) - (0.08) Year Ended October 31, 2001 $ 11.77 0.07 (1.50) (1.43) (0.08) (0.47) (0.55) Six Months Ended April 30, 2002 (Unaudited) $ 9.79 0.01 1.88 1.89 (0.03) - (0.03) CLASS B SHARES Period Ended October 31, 2001 (e) $ 11.62 - (1.83) (1.83) - (0.05) (0.05) Six Months Ended April 30, 2002 (Unaudited) $ 9.74 (0.02) 1.88 1.86 (0.01) - (0.01) INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 10.00 0.14 1.76 1.90 (0.10) - (0.10) Year Ended October 31, 2001 $ 11.80 0.10 (1.49) (1.39) (0.10) (0.47) (0.57) Six Months Ended April 30, 2002 (Unaudited) $ 9.84 0.04 1.90 1.94 (0.05) - (0.05) RATIOS / SUPPLEMENTAL DATA =========================================================================================================== RATIO OF NET RATIO OF INVESTMENT RATIO OF NET ASSET NET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES TO VALUE, TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO END OF PERIOD RETURN (a) PERIOD (000s) NET ASSETS NET ASSETS NET ASSETS (b) TURNOVER (c) ================================================================================================================================ CLASS A SHARES Period Ended October 31, 2000 (d) $ 11.77 18.51% (f) $ 3,049 0.81% (g) 0.95% (g) 3.12% (g) 35.19% Year Ended October 31, 2001 $ 9.79 (12.57%) $ 9,028 0.81% 0.56% 1.27% 119.76% Six Months Ended April 30, 2002 (Unaudited) $ 11.65 19.36% (f) $ 19,414 0.77% (g) 0.34% (g) 0.85% (g) 7.57% CLASS B SHARES Period Ended October 31, 2001 (e) $ 9.74 (16.05%) (f) $ 6 1.41% (g) (0.38%) (g) 3.66% (g) 119.76% Six Months Ended April 30, 2002 (Unaudited) $ 11.59 19.13%(f) $ 41 1.35% (g) (0.31%) (g) 1.51% (g) 7.57% INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 11.80 19.03% (f) $ 7,957 0.31% (g) 1.49% (g) 2.76% (g) 35.19% Year Ended October 31, 2001 $ 9.84 (12.17%) $ 26,719 0.31% 1.08% 1.00% 119.76% Six Months Ended April 30, 2002 (Unaudited) $ 11.73 19.77% (f) $ 51,161 0.31% (g) 0.79% (g) 0.47% (g) 7.57% ================================================================================================================================
(a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For the period from December 29, 1999 (commencement of operations) through October 31, 2000. (e) For the period from May 25, 2001 (commencement of operations) through October 31, 2001. (f) Not annualized. (g) Annualized. See notes to financial statements. 82 SEMIANNUAL REPORT 2002
NATIONWIDE SMALL CAP INDEX FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ========================================================================================== NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM BEGINNING OF INVESTMENT GAINS (LOSSES) INVESTMENT NET INVESTMENT TOTAL PERIOD INCOME (LOSS) ON INVESTMENTS ACTIVITIES INCOME DISTRIBUTIONS =================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 10.00 0.07 (0.34) (0.27) (0.06) (0.06) Year Ended October 31, 2001 $ 9.67 0.07 (1.32) (1.25) (0.08) (0.08) Six Months Ended April 30, 2002 (Unaudited) $ 8.34 0.02 1.56 1.58 (0.03) (0.03) CLASS B SHARES Period Ended April 30, 2002 (e) (f) (Unaudited) $ 8.84 (0.03) 1.08 1.05 (0.03) (0.03) INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 10.00 0.09 (0.32) (0.23) (0.07) (0.07) Year Ended October 31, 2001 $ 9.70 0.11 (1.32) (1.21) (0.11) (0.11) Six Months Ended April 30, 2002 (Unaudited) $ 8.38 0.04 1.58 1.62 (0.04) (0.04) RATIOS / SUPPLEMENTAL DATA ========================================================================================================= RATIO OF NET RATIO OF INVESTMENT RATIO OF NET ASSET NET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES TO VALUE, TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO END OF PERIOD RETURN (a) PERIOD (000s) NET ASSETS NET ASSETS NET ASSETS (b) TURNOVER (c) ================================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 9.67 (2.71%) (g) $ 32 0.79% (h) 1.00% (h) 329.04% (h) 48.27% Year Ended October 31, 2001 $ 8.34 (12.95%) $ 4,098 0.79% 0.75% 1.64% 50.19% Six Months Ended April 30, 2002 (Unaudited) $ 9.89 18.94% (g) $ 10,172 0.74% (h) 0.56% (h) 1.01% (h) 1.99% CLASS B SHARES Period Ended April 30, 2002 (e) (f) (Unaudited) $ 9.86 11.89% (g) $ 77 1.31% (h) (0.05%) (h) 1.55% (h) 1.99% INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 9.70 (2.30%) (g) $ 2,301 0.29% (h) 1.69% (h) 19.76% (h) 48.27% Year Ended October 31, 2001 $ 8.38 (12.54%) $ 11,366 0.29% 1.30% 1.94% 50.19% Six Months Ended April 30, 2002 (Unaudited) $ 9.96 19.40% (g) $ 24,297 0.29% (h) 1.03% (h) 0.61% (h) 1.99% ==================================================================================================================================
(a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For the period from December 29, 1999 (commencement of operations) through October 31, 2000. (e) For the period from November 29, 2001 (commencement of operations) through April 30, 2002. (f) Net investment income (loss) is based on average shares outstanding during the period. (g) Not annualized. (h) Annualized. See notes to financial statements. 2002 SEMIANNUAL REPORT 83 FINANCIAL HIGHLIGHTS Selected Data for Each Share of Capital Outstanding ================================================================================
NATIONWIDE INTERNATIONAL INDEX FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ========================================================================================== NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM BEGINNING OF INVESTMENT GAINS (LOSSES) INVESTMENT NET INVESTMENT TOTAL PERIOD INCOME (LOSS) ON INVESTMENTS ACTIVITIES INCOME DISTRIBUTIONS =================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 10.00 0.06 (1.36) (1.30) (0.05) (0.05) Year Ended October 31, 2001 $ 8.65 0.08 (2.28) (2.20) (0.08) (0.08) Six Months Ended April 30, 2002 (Unaudited) $ 6.37 0.03 0.25 0.28 (0.01) (0.01) CLASS B SHARES Period Ended October 31, 2000 (d) $ 10.00 0.02 (1.38) (1.36) (0.02) (0.02) Year Ended October 31, 2001 $ 8.62 0.04 (2.30) (2.26) (0.04) (0.04) Six Months Ended April 30, 2002 (Unaudited) $ 6.32 0.01 0.25 0.26 - - INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 10.00 0.09 (1.35) (1.26) (0.08) (0.08) Year Ended October 31, 2001 $ 8.66 0.10 (2.29) (2.19) (0.10) (0.10) Six Months Ended April 30, 2002 (Unaudited) $ 6.37 0.05 0.25 0.30 (0.02) (0.02) RATIOS / SUPPLEMENTAL DATA ========================================================================================================== RATIO OF NET RATIO OF INVESTMENT RATIO OF NET ASSET NET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES TO VALUE, TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO END OF PERIOD RETURN (A) PERIOD (000S) NET ASSETS NET ASSETS NET ASSETS (B) TURNOVER (C) =================================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 8.65 (13.03%) (e) $ 230 0.86% (f) 1.01% (f) 49.77% (f) 5.66% Year Ended October 31, 2001 $ 6.37 (25.44%) $ 10,877 0.86% 1.17% 3.97% 30.18% Six Months Ended April 30, 2002 (Unaudited) $ 6.64 4.20% (e) $ 14,373 0.82% (f) 0.92% (f) 0.98% (f) 4.80% CLASS B SHARES Period Ended October 31, 2000 (d) $ 8.62 (13.62%) (e) $ 53 1.46% (f) 0.39% (f) 63.29% (f) 5.66% Year Ended October 31, 2001 $ 6.32 (26.17%) $ 59 1.46% 0.42% 7.41% 30.18% Six Months Ended April 30, 2002 (Unaudited) $ 6.58 3.95% (e) $ 87 1.42% (f) 0.40% (f) 1.93% (f) 4.80% INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 8.66 (12.65%) (e) $ 2,858 0.36% (f) 1.16% (f) 8.18% (f) 5.66% Year Ended October 31, 2001 $ 6.37 (25.28%) $ 32,422 0.36% 1.42% 2.60% 30.18% Six Months Ended April 30, 2002 (Unaudited) $ 6.65 4.49% (e) $ 66,062 0.36% (f) 1.60% (f) 0.58% (f) 4.80% ===================================================================================================================================
(a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For the period from December 29, 1999 (commencement of operations) through October 31, 2000. (e) Not annualized. (f) Annualized. See notes to financial statements. 84 SEMIANNUAL REPORT 2002
NATIONWIDE BOND INDEX FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ======================================================================================================= NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM BEGINNING INVESTMENT GAINS (LOSSES) INVESTMENT NET INVESTMENT NET REALIZED TOTAL OF PERIOD INCOME (LOSS) ON INVESTMENTS ACTIVITIES INCOME GAINS DISTRIBUTIONS ============================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 10.00 0.50 0.08 0.58 (0.50) - (0.50) Year Ended October 31, 2001 $ 10.08 0.57 0.93 1.50 (0.57) (0.08) (0.65) Six Months Ended April 30, 2002 (Unaudited) $ 10.93 0.23 (0.32) (0.09) (0.23) (0.01) (0.24) CLASS B SHARES Period Ended October 31, 2000 (e) $ 10.75 0.02 0.18 0.20 (0.02) - (0.02) Six Months Ended April 30, 2002 (Unaudited) $ 10.93 0.20 (0.32) (0.12) (0.20) (0.01) (0.21) INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 10.00 0.54 0.09 0.63 (0.54) - (0.54) Year Ended October 31, 2001 $ 10.09 0.63 0.91 1.54 (0.63) (0.08) (0.71) Six Months Ended April 30, 2002 (Unaudited) $ 10.92 0.26 (0.32) (0.06) (0.26) (0.01) (0.27) RATIOS/SUPPLEMENTAL DATA ======================================================================================================== RATIO OF NET RATIO OF INVESTMENT RATIO OF NET ASSET NET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES TO VALUE, TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO END OF PERIOD RETURN (a) PERIOD (000s) NET ASSETS NET ASSETS NET ASSETS (b) TURNOVER (c) =============================================================================================================================== CLASS A SHARES Period Ended October 31, 2000 (d) $ 10.08 5.92% (f) $ 8,352 0.81% (g) 6.06% (g) 3.48% (g) 35.74% Year Ended October 31, 2001 $ 10.93 15.28% $ 9,693 0.81% 5.04% 1.12% 150.27% Six Months Ended April 30, 2002 (Unaudited) $ 10.60 (0.75%) (f) $ 22,259 0.76% (g) 4.47% (g) 0.84% (g) 38.15% CLASS B SHARES Period Ended October 31, 2000 (e) $ 10.93 1.85% (f) $ 10 1.41% (g) 3.05% (g) 1.63% (g) 150.27% Six Months Ended April 30, 2002 (Unaudited) $ 10.60 (1.04%) (f) $ 17 1.36% (g) 3.87% (g) 1.42% (g) 38.15% INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (d) $ 10.09 6.47% (f) $ 3,763 0.31% (g) 6.49% (g) 10.87% (g) 35.74% Year Ended October 31, 2001 $ 10.92 15.71% $ 45,750 0.31% 5.51% 1.10% 150.27% Six Months Ended April 30, 2002 (Unaudited) $ 10.59 (0.52%) (f) $ 83,993 0.31% (g) 4.93% (g) 0.45% (g) 38.15% ===============================================================================================================================
(a) Excludes sales charge. (b) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (c) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (d) For the period from December 29, 1999 (commencement of operations) through October 31, 2000. (e) For the period from October 12, 2001 (commencement of operations) through October 31, 2001. (f) Not annualized. (g) Annualized. See notes to financial statements. 2002 SEMIANNUAL REPORT 85 GARTMORE MORLEY CAPITAL Service Class symbol: MCAFX ACCUMULATION FUND Institutional Class symbol: MCAIX IRA Class symbol: NMIRX ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund outperformed its benchmark, returning 2.87%* versus 0.82% for the Lipper Money Market Fund Index. For the trailing 12 months, the Fund returned 5.85%*, outperforming the Index, which returned 2.55%. For broader comparison purposes, the S&P 500 Index returned 2.31% for the six-month period. WHAT MARKET/ECONOMIC FACTORS INFLUENCED THE PORTFOLIOS PERFORMANCE? During the period, bond yields were volatile and rose steadily as the U.S. economy began recovering from a mild recession. The Fund continued to grow as net assets increased by $17.5 million or 41% to close at $60 million. Net deposits were redeployed across various attractively priced asset sectors, including callable agencies, residential and commercial mortgage-backed securities, and home equity loan assetbacked securities. This strategy allowed the Fund to maintain its yield advantage versus the Money Market Fund Index, which continued to be affected by the Federal Reserves monetary policy. While yields available on new purchases have been trending upward, they are still below the Funds average yield. As a result, the 30-day SEC yield for the Fund declined by 37 basis points to 4.58%. However, this decline was far less than that of competing funds and is still very competitive as compared to the Funds benchmark. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? The Funds book value maintenance agreements (or wrap contracts) enabled it to maintain net asset value at a constant $10.00 per share during an extremely volatile quarter in the fixed-income markets. The Funds wrap contracts continue to work as intended to absorb any fluctuation in the market value of the Funds securities holdings. In addition, the Funds yield advantage, derived from holding high-quality, two- to five-year maturity fixed-income assets, contributed to the Funds outperformance versus its benchmark. HOW IS THE FUND POSITIONED? We see the economy continuing its recovery. The Federal Reserve has signaled that it may raise interest rates later this year as a pre-emptive strike against inflationary pressures. The Fund does not anticipate any material near-term change in investment style or strategy, which seeks to find investments offering a high level of income during interest-rate cycles. The Funds investment focus is likely to remain on high-quality federal agency and AAA-rated securities that combine top-notch credit quality with relatively steady cash flows and relatively stable duration. Prices of these assets should remain stable due to the book value of wrap contracts. PORTFOLIO MANAGERS: PERPETUA M. PHILLIPS AND PARKER D. BRIDGEPORT * PERFORMANCE OF INSTITUTIONAL CLASS SHARES ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $60,945,422 APRIL 30, 2002 AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 INCEPTION(1) ================================================================================ Service Class Shares 5.42% 5.39% -------------------------------------------------------------------------------- Institutional Class Shares 5.85% 5.81% -------------------------------------------------------------------------------- IRA Shares 5.43% 5.39% -------------------------------------------------------------------------------- There are no sales charges on the shares of the Gartmore Morley Capital Accumulation Fund. 1 Fund commenced operations on February 1, 1999. ALTHOUGH THE FUND SEEKS TO PRESERVE THE VALUE OF YOUR INVESTMENT AT $10.00 PER SHARE, IT IS POSSIBLE TO LOSE MONEY BY INVESTING IN THE FUND. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPHIC OMITTED]
Lipper Money Institutional Market Date Service Class Class IRA Class Fund Index CPI 1-Feb-99 10000 10000 10000 10000 10000 31-Oct-99 10360 10391 10360 10344 10237 31-Oct-00 10931 11007 10930 10946 10590 31-Oct-01 11548 11674 11546 11436 10816 30-Apr-02 11855 12009 11854 11529 10935
Comparative performance of $10,000 invested in the Nationwide Morley Capital Accumulation Fund, the Lipper Money Market Fund Index(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees or expenses. (a) The Lipper Money Market Fund Index generally reflects the return on selected Money Market Mutual Funds maintaining a constant price per share. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 2002 SEMIANNUAL REPORT 86 STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) ================================================================================
GARTMORE MORLEY CAPITAL ACCUMULATION FUND ASSET BACKED SECURITIES (6.7%) ====================================================================================== PRINCIPAL AMOUNT VALUE ====================================================================================== Chase Funding Mortgage Loan, 5.04%, 12/25/23, Series 2002-1 $2,000,000 $ 2,010,000 Residential Asset Securities Corp., 5.23%, 06/25/27, Series 2002-KS2 2,000,000 2,025,609 ------------ TOTAL ASSET BACKED SECURITIES 4,035,609 ------------ COMMERCIAL MORTGAGE BACKED SECURITIES (6.9%) ====================================================================================== Bear Stearns Commercial Mortgage Securities, 5.92%, 10/15/36 1,993,093 2,032,885 Chase Commercial Mortgage Securities Corp., 6.03%, 11/18/30, Series 1998-2 2,061,747 2,132,494 ------------ TOTAL COMMERCIAL MORTGAGE BACKED SECURITIES 4,165,379 ------------ CORPORATE BONDS (10.3%) ====================================================================================== FINANCIAL SERVICES (10.3%) Associates Corp., 6.69%, 04/01/03 950,000 984,314 Bank of America Corp., 5.75%, 03/01/04 950,000 983,980 Commercial Credit Co., 6.50%, 08/01/04 1,000,000 1,050,328 Morgan Stanley Dean Witter, 5.63%, 01/20/04 850,000 877,850 Norwest Financial, 5.38%, 09/30/03 805,000 827,412 Wachovia Corp., 6.70%, 06/21/04 1,400,000 1,477,017 ------------ TOTAL CORPORATE BONDS 6,200,901 ------------ U.S. GOVERNMENT SPONSORED AND AGENCY OBLIGATIONS (19.3%) ====================================================================================== FEDERAL HOME LOAN BANK (2.6%) 6.81%, 09/27/04, callable semiannually, beg. 09/27/02 @ 100 500,000 509,532 7.00%, 11/17/06, callable one date only, 11/17/03 @ 100 1,000,000 1,054,394 ------------ 1,563,926 ------------ ====================================================================================== FEDERAL HOME LOAN MORTGAGE CORPORATION (9.1%) 4.20%, 11/07/05, callable one date only, 11/07/03 @ 100 2,500,000 2,471,300 5.13%, 02/13/07, callable one date only, 02/13/04 @ 100 3,000,000 3,012,720 ------------ 5,484,020 ------------ ====================================================================================== FEDERAL NATIONAL MORTGAGE ASSOCIATION (7.6%) 5.11%, 03/06/06, callable one date only, 03/06/03 @ 100 2,000,000 2,023,996 5.30%, 01/22/07, callable one date only, 01/22/03 @ 100 2,500,000 2,530,168 ------------ 4,554,164 ------------ TOTAL U.S. GOVERNMENT SPONSORED AND AGENCY OBLIGATIONS 11,602,110 ------------ U.S. GOVERNMENT SPONSORED MORTGAGE-BACKED OBLIGATIONS (52.8%) ====================================================================================== PRINCIPAL AMOUNT VALUE ====================================================================================== FEDERAL HOME LOAN MORTGAGE CORPORATION (32.2%) 6.50%, 06/01/14, Pool E00678 $2,204,849 $ 2,281,536 7.00%, 10/01/15, Pool E81594 1,750,619 1,829,218 6.00%, 06/01/16, Pool E00985 3,846,846 3,904,708 6.00%, 11/01/16, Pool E01072 5,532,197 5,615,410 5.50%, 01/01/17, Pool E01084 5,662,270 5,630,422 ------------ 19,261,294 ------------ ====================================================================================== FEDERAL NATIONAL MORTGAGE ASSOCIATION (20.6%) 6.50%, 12/01/14, Pool 535059 2,560,352 2,654,484 6.00%, 06/01/16, Pool 253845 1,917,058 1,943,686 6.00%, 12/01/16, Pool 254089 5,726,438 5,805,978 5.50%, 02/01/17, Pool 625178 1,974,405 1,961,303 ------------ 12,365,451 ------------ TOTAL U.S. GOVERNMENT SPONSORED MORTGAGE-BACKED OBLIGATIONS 31,626,745 ------------ REPURCHASE AGREEMENT (5.5%) ====================================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $3,314,834 (Fully collateralized by Freddie Mac Securities) 3,314,678 3,314,678 ------------ TOTAL REPURCHASE AGREEMENT 3,314,678 ------------ TOTAL INVESTMENTS (COST $59,958,738) (A) - 101.5% 60,945,422 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.5)% (928,154) ------------ NET ASSETS - 100.0% $60,017,268 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 1,014,274 Unrealized depreciation (27,590) ------------ Net unrealized appreciation $ 986,684 ============ Aggregate cost for federal income tax purposes is substantially the same. VALUE OF WRAP CONTRACTS: Wrap contract with Bank of America NT & SA $ (579,593) Wrap contract with Aegon USA (579,593) ------------ TOTAL WRAP CONTRACTS $(1,159,186) ============
SEE NOTES TO FINANCIAL STATEMENTS. 2002 SEMIANNUAL REPORT 87 NORTHPOINTE SMALL CAP Institutional Class symbol: NNSVX VALUE FUND ================================================================================ HOW DID THE FUND PERFORM? For the six-month period ended April 30, 2002, the Fund underperformed its benchmark, returning 19.09%* versus 20.03% for the Russell 2000 Index and 29.03% for the Russell 2000 Value Index. For the trailing 12 months, the Fund returned 11.99%*, outperforming the Russell 2000 Index, which returned 6.68%. For broader comparison purposes, the S&P 500 Index returned 2.31% during the six-month period. WHAT MARKET/ECONOMIC FACTORS INFLUENCED THE PORTFOLIOS PERFORMANCE? Small-capitalization stocks have significantly outperformed large-capitalization stocks as measured by the Russell 2000 and S&P 500 indexes. For two years, the Russell 2000 outperformed the S&P 500 by 15%. For the one-year period ended April 30, 2002, the Russell 2000 Index has outpaced the S&P 500 Index by 19%. However, small-cap value stocks have outperformed small-cap growth stocks by more than 30% during the past 12 months. While the Fund is categorized as a value style, it is actually more of a core value fund with an emphasis on stocks that have attractive valuations as well as attractive growth prospects. Recently, deep value stocks, those with the lowest absolute valuations, have been the strongest performers, regardless of long-term growth potential. Continued outperformance of these stocks alone is not sustainable for the long term. As the market broadens, the Fund will begin to participate more strongly. WHAT SECTORS/HOLDINGS ENHANCED OR DETRACTED FROM PERFORMANCE? The Fund benefited from strong performances from its holdings in the automobiles and transportation, financial services and health-care sectors. Health-care names such as Owens & Minor, Inc. and MedQuist, Inc. were both up more than 17% during the six-month period. Top-contributing automobiles and transportation names in the portfolio for the period included American Axle & Manufacturing Holdings, Inc. (up 95%), Westinghouse Air Brake Technologies Corp. (up 25%) and Yellow Corp. (up 22%). Many of our financial services holdings contributed to performance, including AmeriCredit Corp., New Century Financial Corp. and FBR Asset Investment Corp. These holdings averaged a return of more than 100% during the six-month period. Conversely, the portfolio struggled in the consumer discretionary, utilities and producer durables sectors. Earthlink Inc., one of the Funds consumer discretionary holdings, saw its shares come under pressure amid fears that its Internet subscriber base would decline. AirGate PCS, Inc. was hit hard along with the telecommunications industry, which suffered from price wars and increased competition. HOW IS THE FUND POSITIONED? We see signs that the economy is improving. The market is experiencing a broaderbased market rally and consumer spending continues to be strong. This environment will be more conducive to our disciplined approach of buying companies with attractive valuations and improving fundamentals. PORTFOLIO MANAGER: NORTHPOINTE CAPITAL, LLC SUBADVISER * PERFORMANCE OF INSTITUTIONAL CLASS SHARES ASSUMING ALL DISTRIBUTIONS ARE REINVESTED. PORTFOLIO MARKET VALUE $38,599,245 APRIL 30, 2002 AVERAGE ANNUAL TOTAL RETURN (For Periods Ended April 30, 2002) YEARS 1 INCEPTION(1) ================================================================================ Institutional Class 11.99% 17.38% -------------------------------------------------------------------------------- There are no sales charges on the shares of the NorthPointe Small Cap Value Fund. 1 Fund commenced operations on June 29, 2000. INVESTMENT RETURN AND PRINCIPAL VALUE WILL FLUCTUATE, AND WHEN REDEEMED, SHARES MAY BE WORTH MORE OR LESS THAN ORIGINAL COST. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. [GRAPHIC OMITTED]
Institutional Date Class Russell 2000 CPI 30-Jun-00 10000 10000 10000 31-Oct-00 10514 9659 10099 31-Oct-01 11264 8433 10313 30-Apr-02 13414 10122 10427
Comparative performance of $10,000 invested in the Institutional Class of the NorthPointe Small Cap Value Fund, Russell 2000 Index (Russell 2000)(a), and the Consumer Price Index (CPI)(b) since inception. Unlike the Fund, these indices do not reflect any fees, expenses, or sales charges. (a) The Russell 2000 is compromised of approximately 2000 companies with small market capitalizations relative to the market capitalizations of other U.S. companies. (b) The CPI represents changes in prices of a basket of goods and services purchased for consumption by urban households. 88 SEMIANNUAL REPORT 2002 STATEMENT OF INVESTMENTS April 30, 2002 (Unaudited) ================================================================================ NORTHPOINTE SMALL CAP VALUE FUND
SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== COMMON STOCKS (93.8%) ADVERTISING AGENCIES (0.8%) R.H. Donnelley Corp. (b) 10,800 $ 317,736 ---------- ============================================================================== AEROSPACE (0.7%) Alliant Techsystems, Inc. (b) 2,600 280,020 ---------- ============================================================================== AIR TRANSPORT (0.7%) Northwest Airlines Corp. (b) 14,900 274,756 ---------- ============================================================================== ALUMINUM (0.0%) IMCO Recycling, Inc. (b) 600 6,390 ---------- ============================================================================== AUTO PARTS-AFTER MARKET (0.2%) Aftermarket Technology Corp. (b) 3,900 89,505 ---------- ============================================================================== AUTO PARTS: ORIGINAL EQUIPMENT (1.3%) American Axle & Manufacturing Holdings, Inc. (b) 6,900 227,700 Tower Automotive, Inc. (b) 19,100 280,197 ---------- 507,897 ---------- ============================================================================== BANKS-OUTSIDE NEW YORK CITY (6.1%) Commerce Bancorp, Inc. 8,600 424,754 Community First Bankshares, Inc. 16,700 458,915 East-West Bancorp, Inc. 8,000 286,400 Hudson United Bancorp, Inc. 11,900 377,706 Macatawa Bank Corp. 9,568 187,533 Second Bancorp, Inc. 8,234 222,318 Susquehanna Bancshares, Inc. 12,900 318,630 ---------- 2,276,256 ---------- ============================================================================== BEVERAGE: SOFT DRINKS (0.5%) Triarc Cos., Inc. (b) 6,200 173,600 ---------- ============================================================================== BIOTECHNOLOGICAL RESEARCH & PRODUCTION (0.9%) Serologicals Corp. (b) 17,000 348,670 ---------- ============================================================================== BUILDING MATERIALS (0.5%) LSI Industries, Inc. 9,250 183,798 ---------- ============================================================================== BUILDING: AIR CONDITIONING (0.8%) York International Corp. 8,800 320,408 ---------- ============================================================================== CASINOS & GAMBLING (0.1%) Scientific Games Corp. Class A (b) 5,220 52,043 ---------- ============================================================================== CHEMICALS (0.6%) A. Schulman, Inc. 11,300 229,390 ---------- SHARES OR PRINCIPAL AMOUNT VALUE ============================================================================== COMMUNICATIONS TECHNOLOGY (1.9%) Harris Corp. 9,500 $ 343,995 Inter-Tel, Inc. 15,750 323,033 NetSolve, Inc. (b) 10,900 77,390 ---------- 744,418 ---------- ============================================================================== COMPUTER TECHNOLOGY (1.5%) Adaptec, Inc. (b) 20,400 299,880 Computer Network Technology Corp. (b) 10,800 103,032 Hutchinson Technology, Inc. (b) 9,800 175,518 ---------- 578,430 ---------- ============================================================================== CONSUMER ELECTRONICS (2.3%) Midway Games, Inc. (b) 13,950 190,418 Take-Two Interactive Software, Inc. (b) 12,100 303,710 THQ, Inc. (b) 10,500 368,130 ---------- 862,258 ---------- ============================================================================== CONSUMER PRODUCTS (0.6%) International Flavors & Fragrances, Inc. 7,000 225,400 ---------- ============================================================================== CONTAINERS & PACKAGING: METALS & GLASS (0.6%) Silgan Holdings, Inc. (b) 5,635 224,273 ---------- ============================================================================== COPPER (0.8%) Freeport-McMoran Copper & Gold, Inc. Class B (b) 17,200 305,472 ---------- ============================================================================== COSMETICS (0.6%) Alberto-Culver Co. Class A 4,400 214,280 ---------- ============================================================================== DIVERSIFIED MATERIALS & PROCESSING (1.3%) Armor Holdings, Inc. (b) 10,700 271,245 Ball Corp. 5,100 242,505 ---------- 513,750 ---------- ============================================================================== DIVERSIFIED PRODUCTION (0.5%) Joy Global, Inc. (b) 12,700 204,470 ---------- ============================================================================== DRUG & GROCERY STORE CHAINS (1.0%) Pathmark Stores, Inc. (b) 7,000 156,100 SUPERVALU, Inc. 7,000 210,000 ---------- 366,100 ---------- ============================================================================== DRUGS & PHARMACEUTICALS (1.2%) American Pharmaceutical Partners, Inc. (b) 12,900 182,793 Endo Pharmaceuticals Holdings, Inc. (b) 23,900 276,523 ---------- 459,316 ---------- ============================================================================== ELECTRICALS & ELECTRONICS (0.7%) Power Integrations, Inc. (b) 13,400 283,410 ---------- ============================================================================== ELECTRONICS - MEDICAL SYSTEMS (0.3%) CardioDynamics International Corp. (b) 39,290 121,799 ----------
2002 SEMIANNUAL REPORT 89 STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NORTHPOINTE SMALL CAP VALUE FUND (Continued) COMMON STOCKS (Continued) ================================================================================
SHARES OR PRINCIPAL AMOUNT VALUE ================================================================================ ELECTRONICS: SEMI-CONDUCTORS / COMPONENTS (1.3%) Actel Corp. (b) 16,200 $393,660 ESS Technology, Inc. (b) 6,500 103,805 -------- 497,465 -------- =============================================================================== ELECTRONICS:TECHNOLOGY (0.7%) Herley Industries, Inc. (b) 12,700 270,256 -------- =============================================================================== ENGINEERING & CONTRACTING SERVICES (0.9%) Jacobs Engineering Group, Inc. (b) 8,500 335,410 -------- =============================================================================== FERTILIZERS (0.7%) IMC Global, Inc. 22,600 284,760 -------- =============================================================================== FINANCE-SMALL LOAN (0.5%) AmeriCredit Corp. (b) 5,000 194,100 -------- =============================================================================== FINANCIAL DATA PROCESSING SERVICES & SYSTEMS (1.7%) CCC Information Services Group, Inc. (b) 18,100 203,625 Hypercom Corp. (b) 32,500 207,025 NDCHealth Corp. 7,700 247,709 -------- 658,359 -------- =============================================================================== FINANCIAL-MISCELLANEOUS (1.5%) BARRA, Inc. (b) 6,857 338,667 New Century Financial Corp. 9,900 236,709 -------- 575,376 -------- =============================================================================== FOODS (1.9%) Bunge Ltd. 17,300 382,676 Hormel Foods Corp. 4,600 113,620 International Multi-Foods Corp. (b) 8,900 238,965 -------- 735,261 -------- =============================================================================== FOREST PRODUCTS (0.7%) Universal Forest Products, Inc. 10,400 260,000 -------- =============================================================================== HEALTHCARE MANAGEMENT SERVICES (1.5%) MedQuist, Inc. (b) 9,700 280,136 Mid Atlantic Medical Services, Inc. (b) 8,400 306,012 -------- 586,148 -------- =============================================================================== HEALTHCARE SERVICES (0.8%) Apria Healthcare Group, Inc. (b) 12,400 322,276 -------- =============================================================================== HOUSEHOLD FURNISHINGS (0.3%) La-Z-Boy, Inc. 4,300 129,172 -------- SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== IDENTIFICATION CONTROL & FILTER DEVICES (1.9%) Flowserve Corp. (b) 9,800 $338,100 Hubbell, Inc. 10,900 375,287 -------- 713,387 -------- =============================================================================== INSURANCE-LIFE (1.1%) Scottish Annuity & Life Holdings Ltd. 19,600 419,440 -------- =============================================================================== INSURANCE-PROPERTY & CASUALTY (2.6%) Harleysville Group, Inc. 11,300 341,271 IPC Holdings Ltd. 13,800 470,580 Vesta Insurance Group, Inc. 36,300 165,891 -------- 977,742 -------- =============================================================================== INVESTMENT MANAGEMENT COMPANIES (1.1%) Affiliated Managers Group, Inc. (b) 6,400 407,040 -------- =============================================================================== MACHINERY-CONSTRUCTION & HANDLING (0.4%) The Manitowoc Company, Inc. 3,900 170,430 -------- =============================================================================== MACHINERY-OIL WELL EQUIPMENT & SERVICES (1.9%) Key Energy Services, Inc. (b) 30,200 366,930 Seacor Holdings, Inc. (b) 7,500 360,750 -------- 727,680 -------- =============================================================================== MACHINERY: ENGINES (0.8%) Cummins Engine, Inc. 7,600 323,380 -------- =============================================================================== MEDICAL & DENTAL INSTRUMENTS & SUPPLIES (1.6%) Owens & Minor, Inc. 21,200 438,628 Sola International, Inc. (b) 11,600 166,460 -------- 605,088 -------- =============================================================================== METAL FABRICATING (1.7%) Intermagnetics General Corp. (b) 9,700 243,761 Maverick Tube Corp. (b) 22,700 412,005 -------- 655,766 -------- =============================================================================== OIL REFINING (0.1%) Premor, Inc. (b) 1,300 36,725 -------- =============================================================================== OIL: CRUDE PRODUCERS (0.6%) Stone Energy Corp. (b) 5,700 241,680 -------- =============================================================================== PAINTS & COATINGS (1.5%) RPM, Inc. 16,800 284,760 Valspar Corp. 5,900 271,695 -------- 556,455 -------- =============================================================================== PAPER (0.7%) Albany International Corp. Class A 11,300 284,534 --------
90 SEMIANNUAL REPORT 2002 COMMON STOCKS (CONTINUED) ================================================================================
SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== POLLUTION CONTROL & ENVIRONMENTAL SERVICES (0.4%) Ionics, Inc. (b) 5,100 $ 153,000 ---------- =============================================================================== PRODUCTION TECHNOLOGY EQUIPMENT (1.0%) Electro Scientific Industries, Inc. (b) 6,600 198,396 Lam Research Corp. (b) 7,900 202,714 ---------- 401,110 ---------- =============================================================================== PUBLISHING: NEWSPAPERS (0.8%) Lee Enterprises, Inc. 8,200 321,850 ---------- =============================================================================== RADIO & TV BROADCASTERS (2.4%) Cumulus Media, Inc. (b) 14,500 271,585 Emmis Communications Corp. Class A (b) 14,900 433,143 Sinclair Broadcast Group, Inc. Class A (b) 14,800 197,580 ---------- 902,308 ---------- =============================================================================== RAILROAD EQUIPMENT (0.8%) Wabtec Corp. 20,800 318,032 ---------- =============================================================================== RAILROADS (0.4%) RailAmerica, Inc. (b) 17,900 164,501 ---------- =============================================================================== REAL ESTATE (0.7%) Jones Lang LaSalle, Inc. (b) 11,300 252,668 ---------- =============================================================================== REAL ESTATE INVESTMENT TRUSTS (REIT) (7.0%) Brandywine Realty Trust 14,800 353,572 Camden Property Trust 7,000 278,600 CBL & Associates Properties, Inc. 8,400 307,440 FBR Asset Investment Corp. 13,700 450,867 Glenborough Realty Trust, Inc. 24,800 556,759 Mack-Cali Realty Corp. 13,800 452,640 Ramco-Gershenson Properties Trust 13,300 244,055 ---------- 2,643,933 ---------- =============================================================================== RENTAL & LEASING SERVICES-COMMERCIAL (0.6%) United Rentals, Inc. (b) 9,500 242,250 ---------- =============================================================================== RENTAL & LEASING SERVICES: CONSUMER (0.9%) Dollar Thrifty Automotive Group, Inc. (b) 15,300 359,550 ---------- =============================================================================== RESTAURANTS (0.4%) CEC Entertainment, Inc. (b) 3,000 138,600 ---------- =============================================================================== RETAIL (5.8%) AnnTaylor Stores Corp. (b) 3,800 165,186 Borders Group, Inc. (b) 11,600 270,396 Claire's Stores, Inc. 13,800 297,804 Foot Locker, Inc. (b) 19,100 300,825 Group 1 Automotive, Inc. (b) 3,400 149,056 SHARES OR PRINCIPAL AMOUNT VALUE =============================================================================== RETAIL (continued) Hibbet Sporting Goods, Inc. (b) 7,050 $ 185,768 Linens 'n Things, Inc. (b) 8,100 281,070 Pier 1 Imports, Inc. 9,200 220,340 The Men's Wearhouse, Inc. (b) 12,700 312,674 United Retail Group, Inc. (b) 900 8,541 ---------- 2,191,660 ---------- =============================================================================== SAVINGS & LOAN (3.7%) BankAtlantic Bancorp, Inc. Class A 39,102 498,551 Downey Financial Corp. 7,700 409,024 FirstFed Financial Corp. (b) 9,500 271,700 Local Financial Corp. (b) 10,900 182,357 ---------- 1,361,632 ---------- =============================================================================== SECURITIES BROKERAGE & SERVICES (2.3%) American Capital Strategies Ltd. 15,300 490,671 Friedman, Billings, Ramsey Group (b) 24,500 220,255 NCO Group, Inc. (b) 6,600 183,744 ---------- 894,670 ---------- =============================================================================== SERVICES: COMMERCIAL (1.4%) First Consulting Group, Inc. (b) 15,200 136,800 MPS Group, Inc. (b) 42,387 381,483 ---------- 518,283 ---------- =============================================================================== SHOES (0.8%) The Finish Line, Inc. Class A (b) 5,500 111,485 The Timberland Co. Class A (b) 4,400 179,520 ---------- 291,005 ---------- =============================================================================== STEEL (0.7%) Carpenter Technology Corp. 9,700 257,050 ---------- =============================================================================== TELECOMMUNICATIONS EQUIPMENT (0.4%) C-COR.net Corp. (b) 14,200 155,348 ---------- =============================================================================== TEXTILE APPAREL MANUFACTURERS (1.4%) Phillips-Van Heusen Corp. 15,400 234,696 Quiksilver, Inc. (b) 11,700 285,480 ---------- 520,176 ---------- =============================================================================== TIRE & RUBBER (1.2%) Cooper Tire & Rubber Co. 18,200 451,360 ---------- =============================================================================== TOYS (0.9%) Hasbro, Inc. 21,200 338,776 ---------- =============================================================================== TRUCKERS (0.8%) Yellow Corp. (b) 11,300 304,761 ----------
2002 SEMIANNUAL REPORT 91 STATEMENT OF INVESTMENTS (Continued) April 30, 2002 (Unaudited) ================================================================================ NORTHPOINTE SMALL CAP VALUE FUND (Continued) COMMON STOCKS (CONTINUED) ================================================================================
SHARES OR PRINCIPAL AMOUNT VALUE ================================================================================== UTILITIES - ELECTRIC (0.7%) IDACORP, Inc. 7,500 $ 283,800 ------------ ================================================================================== UTILITIES-GAS DISTRIBUTORS (1.8%) New Jersey Resources Corp. 8,250 264,000 Questar Corp. 14,600 407,340 ------------ 671,340 ------------ ================================================================================== UTILITIES-WATER (0.5%) American States Water Co. 4,900 190,610 ------------ ================================================================================== UTILITIES: CABLE TV & RADIO (0.5%) Mediacom Communications Corp. (b) 19,300 193,000 ------------ ================================================================================== UTILITIES:TELECOMMUNICATIONS (0.5%) Airgate PCS, Inc. (b) 12,400 177,320 ------------ TOTAL COMMON STOCKS 35,830,368 ------------ REPURCHASE AGREEMENT (7.2%) ================================================================================== SHARES OR PRINCIPAL AMOUNT VALUE ================================================================================== Fifth Third Bank, 1.69%, dated 04/30/02, due 05/01/02, repurchase price $2,769,007 (Fully collateralized by Freddie Mac Securities) $ 2,768,877 $ 2,768,877 ------------ TOTAL REPURCHASE AGREEMENT 2,768,877 ------------ TOTAL INVESTMENTS (COST $33,843,558) (A) - 101.0% 38,599,245 LIABILITIES IN EXCESS OF OTHER ASSETS - (1.0)% (378,146) ------------ NET ASSETS - 100.0% $38,221,099 ============ (a) Represents cost for financial reporting purposes and differs from market value by unrealized appreciation (depreciation) of securities as follows: Unrealized appreciation $ 5,942,161 Unrealized depreciation (1,186,474) ------------ Net unrealized appreciation $ 4,755,687 ============ Aggregate cost for federal income tax purposes is substantially the same. (b) Denotes a non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS. 92 SEMIANNUAL REPORT 2002 STATEMENTS OF ASSETS AND LIABILITIES April 30, 2002 (Unaudited) ================================================================================
GARTMORE MORLEY NORTHPOINTE CAPITAL ACCUMULATION FUND SMALL CAP VALUE FUND ========================================================================================================================== ASSETS: Investments, at value (cost $56,644,060 and $31,074,681; respectively) $ 57,630,744 $ 35,830,368 Repurchase agreements, at cost 3,314,678 2,768,877 --------------------------- --------------------- Total Investments 60,945,422 38,599,245 --------------------------- --------------------- Interest and dividends receivable 480,355 6,201 Receivable for investments sold - 57,323 Receivable from adviser 342 784 Prepaid expenses and other assets 7,609 609 --------------------------- --------------------- Total Assets 61,433,728 38,664,162 --------------------------- --------------------- LIABILITIES: Wrapper contracts, at value 1,159,186 - Payable to custodian - 930 Distributions payable 206,117 - Payable for investments purchased - 399,365 Accrued expenses and other payables Investment advisory fees 11,985 26,477 Fund administration and transfer agent fees 7,199 4,525 Distribution fees 9,255 - Administrative servicing fees 4,506 - Wrapper contract premiums 6 ,172 - Other 12,040 11,766 --------------------------- --------------------- Total Liabilities 1,416,460 443,063 --------------------------- --------------------- NET ASSETS $ 60,017,268 $ 38,221,099 =========================== ===================== REPRESENTED BY: Capital $ 60,182,179 $ 32,362,473 Accumulated net investment income (loss) 50,636 32,104 Accumulated net realized gains (losses) on investment transactions (43,045) 1,070,835 Net unrealized appreciation (depreciation) on investment transactions 986,684 4,755,687 Net unrealized appreciation (depreciation) of wrapper contracts (1,159,186) - --------------------------- --------------------- NET ASSETS $ 60,017,268 $ 38,221,099 =========================== ===================== NET ASSETS: Service Class Shares $ 45,445,779 $ - Institutional Class Shares 10,464,773 38,221,099 IRA Class Shares 4,106,716 - --------------------------- --------------------- Total $ 60,017,268 $ 38,221,099 =========================== ===================== SHARES OUTSTANDING (unlimited number of shares authorized): Service Class Shares 4,544,574 - Institutional Class Shares 1,046,486 3,049,961 IRA Class Shares 410,673 - --------------------------- --------------------- Total 6,001,733 3,049,961 =========================== ===================== NET ASSET VALUE (A): Service Class Shares $ 10.00 $ - Institutional Class Shares $ 10.00 $ 12.53 IRA Class Shares $ 10.00 $ - ==========================================================================================================================
(a) None of the share classes is subject to a front-end sales charge. See notes to financial statements. 2002 SEMIANNUAL REPORT 93 STATEMENTS OF OPERATIONS For The Six Months Ended April 30, 2002 (Unaudited) ================================================================================
GARTMORE MORLEY CAPITAL NORTHPOINTE ACCUMULATION FUND SMALL CAP VALUE FUND =========================================================================================================================== INVESTMENT INCOME: Interest income $ 1,376,283 $ 21,664 Dividend income - 252,371 ------------------------- ---------------------- Total Income 1,376,283 274,035 ------------------------- ---------------------- EXPENSES: Investment advisory fees 85,445 147,222 Fund administration and transfer agent fees 38,037 30,120 Distribution fees Service Class 38,404 - Distribution fees IRA Class 3,369 - Administrative servicing fees Service Class 21,083 - Wrapper contract premiums 32,949 - Other 22,368 12,050 ------------------------- ---------------------- Total expenses before waived or reimbursed expenses 241,655 189,392 ------------------------- ---------------------- Investment advisory fees voluntarily reduced (24,413) - Expenses reimbursed (13,608) (16,189) ------------------------- ---------------------- Total Expenses 203,634 173,203 ------------------------- ---------------------- NET INVESTMENT INCOME (LOSS) 1,172,649 100,832 ------------------------- ---------------------- REALIZED / UNREALIZED GAINS (LOSSES) FROM INVESTMENTS: Realized gains (losses) on investment transactions (43,045) 1,115,250 Net change in unrealized appreciation/depreciation on investments (500,431) 4,735,300 Net change in unrealized appreciation/depreciation on wrapper contracts 515,994 - ------------------------- ---------------------- Net realized/unrealized gains (losses) on investments (27,482) 5,850,550 ------------------------- ---------------------- CHANGE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,145,167 $ 5,951,382 ========================= ====================== ===========================================================================================================================
See notes to financial statements. 2002 SEMIANNUAL REPORT 94 STATEMENT OF CHANGES IN NET ASSETS ================================================================================
GARTMORE MORLEY CAPITAL ACCUMULATION FUND ============================================= SIX MONTHS ENDED YEAR ENDED APRIL 30, 2002 OCTOBER 31, 2001 ================================================================================================================== (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ 1,172,649 $ 1,886,799 Net realized gains (losses) on investment transactions (43,045) 169,235 Net change in unrealized appreciation/depreciation on investments (500,431) 1,549,573 Net change in unrealized appreciation/depreciation on wrapper contracts 515,994 (1,708,079) ------------------ ------------------ Change in net assets resulting from operations 1,145,167 1,897,528 ------------------ ------------------ DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS FROM: Net investment income (699,566) (1,070,636) Net realized gains on investments (99,316) - DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM: Net investment income (384,079) (716,754) Net realized gains on investments (57,412) - DISTRIBUTIONS TO IRA CLASS SHAREHOLDERS FROM: Net investment income (61,522) (110,138) Net realized gains on investments (8,159) - ------------------ ------------------ Change in net assets from shareholder distributions (1,310,054) (1,897,528) ------------------ ------------------ Change in net assets from capital transactions 17,707,560 22,814,510 ------------------ ------------------ Change in net assets 17,542,673 22,814,510 NET ASSETS: Beginning of period 42,474,595 19,660,085 ------------------ ------------------ End of period $ 60,017,268 $ 42,474,595 ================== ================== NORTHPOINTE SMALL CAP VALUE FUND ====================================== SIX MONTHS ENDED YEAR ENDED APRIL 30, 2002 OCTOBER 31, 2001 ================================================================================================================ (UNAUDITED) FROM INVESTMENT ACTIVITIES: OPERATIONS: Net investment income (loss) $ 100,832 $ 269,647 Net realized gains (losses) on investment transactions 1,115,250 2,213,852 Net change in unrealized appreciation/depreciation on investments 4,735,300 (1,422,435) Net change in unrealized appreciation/depreciation on wrapper contracts - - ------------------ ------------------ Change in net assets resulting from operations 5,951,382 1,061,064 ------------------ ------------------ DISTRIBUTIONS TO SERVICE CLASS SHAREHOLDERS FROM: Net investment income - - Net realized gains on investments - - DISTRIBUTIONS TO INSTITUTIONAL CLASS SHAREHOLDERS FROM: Net investment income (101,178) (253,061) Net realized gains on investments (1,731,237) - DISTRIBUTIONS TO IRA CLASS SHAREHOLDERS FROM: Net investment income - - Net realized gains on investments - - ------------------ ------------------ Change in net assets from shareholder distributions (1,832,415) (253,061) ------------------ ------------------ Change in net assets from capital transactions 3,631,677 6,302,959 ------------------ ------------------ Change in net assets 7,750,644 7,110,962 NET ASSETS: Beginning of period 30,470,455 23,359,493 ------------------ ------------------ End of period $ 38,221,099 $ 30,470,455 ================== ================== ================================================================================================================
See note to financial statements. 2002 SEMIANNUAL REPORT 95 FINANCIAL HIGHLIGHTS Selected Date for Each Share of Capital Outstanding ================================================================================ GARTMORE MORLEY CAPITAL ACCUMULATION FUND*
INVESTMENT ACTIVITIES DISTRIBUTIONS ========================================================================================================= NET ASSET NET REALIZED VALUE, NET AND UNREALIZED TOTAL FROM BEGINNING OF INVESTMENT GAINS (LOSSES) INVESTMENT NET INVESTMENT NET REALIZED TOTAL PERIOD INCOME (LOSS) ON INVESTMENTS ACTIVITIES INCOME GAINS DISTRIBUTIONS ================================================================================================================================= SERVICE CLASS SHARES Period Ended October 31, 1999 (c) $ 10.04 0.35 - 0.35 (0.35) - (0.35) Year Ended October 31, 2000 $ 10.04 0.53 0.01 0.54 (0.54) - (0.54) Year Ended October 31, 2001 $ 10.04 0.55 - 0.55 (0.55) - (0.55) Six Months Ended April 30, 2002 (Unaudited) $ 10.04 0.23 - 0.23 (0.23) (0.04) (0.27) INSTITUTIONAL CLASS SHARES Period Ended October 31, 1999 (c) $ 10.04 0.38 - 0.38 (0.38) - (0.38) Year Ended October 31, 2000 $ 10.04 0.57 0.01 0.58 (0.58) - (0.58) Year Ended October 31, 2001 $ 10.04 0.59 - 0.59 (0.59) - (0.59) Six Months Ended April 30, 2002 (Unaudited) $ 10.04 0.25 - 0.25 (0.25) (0.04) (0.29) IRA CLASS SHARES Period Ended October 31, 1999 (c) $ 10.04 0.35 - 0.35 (0.35) - (0.35) Year Ended October 31, 2000 $ 10.04 0.53 0.01 0.54 (0.54) - (0.54) Year Ended October 31, 2001 $ 10.04 0.55 - 0.55 (0.55) - (0.55) Six Months Ended April 30, 2002 (Unaudited) $ 10.04 0.23 - 0.23 (0.23) (0.04) (0.27) RATIOS / SUPPLEMENTAL DATA ========================================================================================================== RATIO OF NET RATIO OF INVESTMENT RATIO OF NET ASSET NET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES TO VALUE, TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO END OF PERIOD RETURN PERIOD (000s) NET ASSETS NET ASSETS NET ASSETS (a) TURNOVER (b) ================================================================================================================================= SERVICE CLASS SHARES Period Ended October 31, 1999 (c) $ 10.04 3.60% (d) $ 1,051 0.95% (e) 4.74% (e) 6.10% (e) 8.20% Year Ended October 31, 2000 $ 10.04 5.52% $ 8,820 0.95% 5.51% 1.80% 28.30% Year Ended October 31, 2001 $ 10.04 5.64% $ 24,871 0.95% 5.45% 1.23% 59.67% Six Months Ended April 30, 2002 (Unaudited) $ 10.00 2.66% (d) $ 45,446 0.95% (e) 4.55% (e) 1.11% (e) 42.04% INSTITUTIONAL CLASS SHARES Period Ended October 31, 1999 (c) $ 10.04 3.91% (d) $ 5,130 0.55% (e) 5.17% (e) 4.18% (e) 8.20% Year Ended October 31, 2000 $ 10.04 5.93% $ 8,973 0.55% 5.85% 1.47% 28.30% Year Ended October 31, 2001 $ 10.04 6.06% $ 15,531 0.55% 5.83% 0.83% 59.67% Six Months Ended April 30, 2002 (Unaudited) $ 10.00 2.87% (d) $ 10,465 0.55% (e) 4.99% (e) 0.73% (e) 42.04% IRA CLASS SHARES Period Ended October 31, 1999 (c) $ 10.04 3.60% (d) $ 1,829 0.95% (e) 4.77% (e) 4.65% (e) 8.20% Year Ended October 31, 2000 $ 10.04 5.51% $ 1,867 0.95% 5.38% 1.81% 28.30% Year Ended October 31, 2001 $ 10.04 5.64% $ 2,073 0.95% 5.46% 1.19% 59.67% Six Months Ended April 30, 2002 (Unaudited) $ 10.00 2.67% (d) $ 4,107 0.95% (e) 4.57% (e) 1.07% (e) 42.04% =================================================================================================================================
* Per share numbers prior to December 31, 2001 have been adjusted to reflect a 1.003633 for 1 reverse stock split. (a) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (b) Portfolio turnover is calculated on the basis of the Fund as a whole without distinguishing among the classes of shares. (c) For the period from February 1, 1999 (commencement of operations) through October 31, 1999. (d) Not annualized. (e) Annualized. See notes to financial statements. 2002 SEMIANNUAL REPORT 96
NORTHPOINTE SMALL CAP VALUE FUND INVESTMENT ACTIVITIES DISTRIBUTIONS ============================================================================================= NET REALIZED AND NET ASSET NET UNREALIZED VALUE, INVESTMENT GAINS TOTAL FROM NET NET BEGINNING INCOME (LOSSES) ON INVESTMENT INVESTMENT REALIZED TOTAL OF PERIOD (LOSS) INVESTMENTS ACTIVITIES INCOME GAINS DISTRIBUTIONS ====================================================================================================================== INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (b) $ 10.00 0.02 0.49 0.51 (0.01) - (0.01) Year Ended October 31, 2001 $ 10.50 0.13 0.62 0.75 (0.11) - (0.11) Six Months Ended April 30, 2002 (Unaudited) $ 11.14 0.04 2.02 2.06 (0.04) (0.63) (0.67) RATIOS/SUPPLEMENTAL DATA ============================================================================================== RATIO OF NET NET ASSET RATIO OF INVESTMENT RATIO OF VALUE, NET ASSETS EXPENSES TO INCOME (LOSS) EXPENSES TO END OF TOTAL AT END OF AVERAGE TO AVERAGE AVERAGE PORTFOLIO PERIOD RETURN PERIOD (000S) NET ASSETS NET ASSETS NET ASSETS (a) TURNOVER ============================================================================================== INSTITUTIONAL CLASS SHARES Period Ended October 31, 2000 (b) $ 10.50 5.14% (c) 23,359 1.00% (d) 0.82% (d) 1.79% (d) 49.93% Year Ended October 31, 2001 $ 11.14 7.13% 30,470 1.00% 1.00% 1.38% 150.45% Six Months Ended April 30, 2002 (Unaudited) $ 12.53 19.09% (c) 38,221 1.00% (d) 0.58% (d) 1.09% (d) 55.53% ========================================================================================================================
(a) During the period certain fees were waived and/or reimbursed. If such waivers/reimbursements had not occurred, the ratios would have been as indicated. (b) For the period from June 29, 2000 (commencement of operations) through October 31, 2000. (c) Not annualized. (d) Annualized. See notes to financial statements. 2002 SEMIANNUAL REPORT 97 NOTES TO FINANCIAL STATEMENTS April 30, 2002 (Unaudited) ================================================================================ 1. ORGANIZATION Gartmore Mutual Funds (the "Trust") is an open-end management investment company. Prior to January 25, 2002 the Trust was named Nationwide Mutual Funds. The Trust was created under the laws of Ohio as an Ohio business trust pursuant to a Declaration of Trust dated as of October 30, 1997, as subsequently amended, and is registered under the Investment Company Act of 1940, as amended ("1940 Act"). The Trust operates thirty-five separate series, or mutual funds, each with its own investment objectives and strategies. This report contains the financial statements and financial highlights of the funds listed below (individually a "Fund", collectively the "Funds"): - Nationwide Large Cap Growth Fund ("Large Cap Growth") - Nationwide Small Cap Fund ("Small Cap") - Nationwide S&P 500 Index Fund ("S&P 500 Index") - Nationwide Mid Cap Market Index Fund ("Mid Cap Market Index") - Nationwide Small Cap Index Fund ("Small Cap Index") - Nationwide International Index Fund ("International Index") - Nationwide Bond Index Fund ("Bond Index") - Gartmore Morley Capital Accumulation Fund ("Morley Capital Accumulation") - NorthPointe Small Cap Value Fund ("Small Cap Value") 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses for the period. Actual results could differ from those estimates. (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 p.m. Eastern Time). Equity securities are valued at the last quoted sale price or, if there is no sale price, the last quoted bid price provided by an independent pricing service approved by the Board of Trustees. Prices are taken from the primary market or exchange in which each security trades. 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, the use of which has been approved by the Fund's 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 considered to be "short-term" and 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 judgement of the Funds' investment adviser or designee, are valued at fair value under procedures approved by the Funds' Board of Trustees. The wrap contracts of the Morley Capital Accumulation Fund will be an asset on the balance sheet if the contract value is greater than market value or a liability on the balance sheet if the contract value is less than market value. The Fund's Board of Trustees has approved a valuation methodology to value the wrap contracts. The Fund's investment adviser considers the ability of each wrap provider to fulfill its contractual obligations when choosing the wrap providers. 2002 SEMIANNUAL REPORT 98 (b) REPURCHASE AGREEMENTS The Funds may enter into repurchase agreements with an entity which is a member of the Federal Reserve System or which is 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 a 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 Funds' custodian, or another qualified sub-custodian or in the Federal Reserve/Treasury book-entry system. (c) FOREIGN CURRENCY TRANSACTIONS The accounting records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars at the current rate of exchange to determine the value of investments, assets and liabilities. Purchases and sales of securities, and income and expense are translated at the prevailing rate of exchange on the respective date of such transactions. The Funds do not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations are included with the net realized and unrealized gain or loss from investments and foreign currencies. (d) 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. Such risks include future political and economic developments, and the possible imposition of exchange controls or other foreign governmental laws and restrictions. In addition, with respect to certain countries, there is the possibility of expropriation of assets, confiscatory taxation, political or social instability or diplomatic developments, which could adversely affect investments in those countries. Certain countries may also impose substantial restrictions on investments in their capital markets by foreign entities, including restrictions on investments in issuers of industries deemed sensitive to relevant national interests. These factors may limit the investment opportunities available and result in a lack of liquidity and a high price volatility with respect to securities of issuers from developing countries. (e) FORWARD FOREIGN CURRENCY CONTRACTS Certain Funds may enter into forward foreign currency exchange contracts in connection with planned purchases or sales of securities or to hedge the U.S. dollar value of portfolio securities denominated in a particular currency. The Funds could be exposed to risks if the counter parties to the contracts are unable to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The forward foreign currency contracts are adjusted by the daily 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. (f) FUTURES Certain Funds may invest in financial futures contracts ("futures contracts") for the purpose of hedging their existing portfolio securities or securities they intend to purchase against fluctuations in value caused by changes in prevailing market interest rates or prices. Futures contracts may also be entered into for non-hedging purposes. Upon entering into a futures contract, these Funds are required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount (initial margin deposit). Subsequent payments, known as "variation margin'', are made each day, depending on the daily fluctuations in the fair value of the underlying security. A gain or loss equal to the daily variation margin is recognized on a daily basis. 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 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. 2002 SEMIANNUAL REPORT 99 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================ Should market conditions change unexpectedly, the Funds may not achieve the anticipated benefits of the futures contracts and may realize a loss. The use of futures transactions for hedging purposes involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the value of the underlying hedged assets. (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) FEDERAL INCOME TAXES Each Funds policy is to continue to qualify as a regulated investment company under the Internal Revenue Code, and to distribute substantially all taxable income, if any, to its shareholders. Therefore no provision has been made for federal income taxes as it is the intention of the Funds to continue such qualification. To the extent net realized gains are offset through the application of a capital loss carryover, they will not be distributed to shareholders and will be retained by the applicable Fund. (i) DISTRIBUTIONS TO SHAREHOLDERS Net investment income, if any, is declared daily and paid monthly for the Bond Index and Morley Capital Accumulation Funds and is declared and paid quarterly for all other Funds. For all Funds, distributable net realized capital gains, if any, are declared and distributed at least annually. 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 in nature. In accordance with AICPA (American Institute of Certified Public Accountants) Statement of Position 93-2, permanent differences (i.e., reclassification of market discounts, gain/loss, paydowns and distributions) 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 net asset value of the respective Funds. Dividends and distributions that exceed net investment income and net realized gains for financial reporting purposes but not for tax purposes are reported as dividends in excess of net investment income and net realized gains. To the extent distributions exceed current and accumulated earnings and profits for federal income tax purposes, they are reported as distributions of paid-in-capital. (j) EXPENSES Expenses directly attributable to a Fund are charged to that Fund. Expenses not directly attributable to a Fund are allocated proportionately among various or all funds within the Trust in relation to the net assets of each fund or on another reasonable basis. Once expenses are charged to a Fund, they are allocated to the classes based on total settled shares outstanding of each class for the Bond Index and Morley Capital Accumulation Funds and based on relative net assets of each class for all other Funds. Expenses specific to a class are charged to that class. (k) WRAP CONTRACT-MORLEY CAPITAL ACCUMULATION A wrap contract is a derivative instrument that is designed to protect the portfolio from investment losses and, under most circumstances, permit the Fund to maintain a constant NAV per share. There is no active trading market for Wrap contracts, and none is expected to develop; therefore, they are considered illiquid. In connection with its investment objective of maintaining a stable net asset value per share, the Fund has entered into book value maintenance (wrap contracts) with the following institutions: Bank of America NT&SA and Aegon USA (collectively the wrap providers). The wrap contracts obligate the wrap providers to make payments in specified circumstances, and allow the Fund under most circumstances to maintain net asset value at $10.00 per share. All classes shares have been adjusted to reflect the 1.003633 reverse stock split that occurred on December 31, 2001 that was necessary to maintain net asset value at $10.00 per share. 2002 SEMIANNUAL REPORT 100 (l) CAPITAL SHARE TRANSACTIONS Transactions in capital shares of the Funds were as follows:
LARGE CAP GROWTH SMALL CAP =========================== ============================ SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2002 2001 2002 2001 ==================================== ============ ============= ============= ============= (UNAUDITED) (UNAUDITED) CAPITAL TRANSACTIONS: CLASS A SHARES Proceeds from shares issued $ 7,732,017 $ 30,618,024 8,144,021 $ 9,341,673 Dividends reinvested - 1,513,368 - 2,009,033 Cost of shares redeemed (8,743,656) (19,294,797) (10,740,121) (10,058,996) ------------ ------------- ------------- ------------- (1,011,639) 12,836,595 (2,596,100) 1,291,710 ------------ ------------- ------------- ------------- CLASS B SHARES Proceeds from shares issued 296,813 791,848 237,005 286,513 Dividends reinvested - 114,914 - 67,048 Cost of shares redeemed (172,648) (356,773) (63,589) (83,487) ------------ ------------- ------------- ------------- 124,165 549,989 173,416 270,074 ------------ ------------- ------------- ------------- CLASS C SHARES Proceeds from shares issued 20,230 38,574(a) 11,459 20,791 (a) Cost of shares redeemed (7,446) - (961) (25) (a) ------------ ------------- ------------- ------------- 12,784 38,574 10,498 20,766 ------------ ------------- ------------- ------------- INSTITUTIONAL SERVICE CLASS SHARES Proceeds from shares issued 1,153,331 5,477,816 3,246,146 3,547,999 Dividends reinvested - 353,855 - 374,497 Cost of shares redeemed (1,355,589) (3,545,736) (1,321,282) (2,724,733) ------------ ------------- ------------- ------------- (202,258) 2,285,935 1,924,864 1,197,763 ------------ ------------- ------------- ------------- Change in net assets from capital transactions $(1,076,948) $ 15,711,093 $ (487,322) $ 2,780,313 ============ ============= ============= ============= SHARE TRANSACTIONS: CLASS A SHARES Issued 896,389 3,012,711 683,991 822,770 Reinvested - 127,498 - 173,052 Redeemed (984,428) (1,916,516) (898,910) (855,131) ------------ ------------- ------------- ------------- (88,039) 1,223,693 (214,919) 140,691 ------------ ------------- ------------- ------------- CLASS B SHARES Issued 34,944 78,241 20,113 24,418 Reinvested - 9,851 - 5,830 Redeemed (20,387) (36,505) (5,424) (7,181) ------------ ------------- ------------- ------------- 14,557 51,587 14,689 23,067 ------------ ------------- ------------- ------------- CLASS C SHARES Issued 2,358 4,300 (a) 986 1,838 (a) Redeemed (874) - (85) (2) (a) ------------ ------------- ------------- ------------- 1,484 4,300 901 1,836 ------------ ------------- ------------- ------------- INSTITUTIONAL SERVICE CLASS SHARES Issued 130,320 540,413 263,397 299,375 Reinvested - 29,686 - 32,173 Redeemed (155,621) (358,116) (112,709) (236,439) ------------ ------------- ------------- ------------- (25,301) 211,983 150,688 95,109 ------------ ------------- ------------- ------------- Total change in shares (97,299) 1,491,563 (48,641) 260,703 ============ ============= ============= =============
(a) For the period from March 1, 2001 (commencement of operations) through October 31, 2001. 2002 SEMIANNUAL REPORT 101 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================
S & P 500 INDEX MID CAP MARKET INDEX SMALL CAP INDEX ============================ =========================== =========================== SIX MONTHS YEAR SIX MONTHS YEAR SIX MONTHS YEAR ENDED ENDED ENDED ENDED ENDED ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2002 2001 2002 2001 2002 2001 ================================== ============= ============= ============ ============= ============ ============= (UNAUDITED) (UNAUDITED) (UNAUDITED) CAPITAL TRANSACTIONS: CLASS A SHARES Proceeds from shares issued $ 1,585,397 $ 2,078,385 $12,339,291 $ 8,106,287 $ 6,945,159 $ 5,625,844 Dividends reinvested 16,608 46,364 28,333 197,643 18,955 12,050 Cost of shares redeemed (265,135) (307,287) (3,730,202) (1,166,171) (1,937,239) (1,157,668) ------------- ------------- ------------ ------------- ------------ ------------- 1,336,870 1,817,462 8,637,422 7,137,759 5,026,875 4,480,226 ------------- ------------- ------------ ------------- ------------ ------------- CLASS B SHARES Proceeds from shares issued 1,021,326 1,506,860 33,422 5,353 (a) 74,820 (b) -- Dividends reinvested 3,130 18,603 12 1 (a) 78 (b) -- Cost of shares redeemed (163,108) (161,740) (15) -- (44) (b) -- ------------- ------------- ------------ ------------- ------------ ------------- 861,348 1,363,723 33,419 5,354 74,854 - ------------- ------------- ------------ ------------- ------------ ------------- INSTITUTIONAL CLASS SHARES Proceeds from shares issued 65,282,598 96,708,481 26,429,443 24,076,459 12,826,615 12,676,426 Dividends reinvested 783,329 2,226,883 158,980 484,196 74,996 48,51474 Cost of shares redeemed (11.629,177) (53,335,286) (7,903,767) (4,242,492) (2,622,194) (3,007,320) ------------- ------------- ------------ ------------- ------------ ------------- 54,436,750 45,600,078 18,684,656 20,318,163 10,279,417 9,717,620 ------------- ------------- ------------ ------------- ------------ ------------- SERVICE CLASS SHARES Proceeds from shares issued 59,313,481 115,704,135 -- -- -- -- Dividends reinvested 1,081,465 4,265,411 -- -- -- -- Cost of shares redeemed (11,025,031) (9,130,773) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------- 49,369,915 110,838,773 -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------- INSTITUTIONAL SERVICE CLASS SHARES Proceeds from shares issued 15,131,057 20,332,968 -- -- -- -- Dividends reinvested 211,059 736,411 -- -- -- -- Cost of shares redeemed (4,838,571) (7,345,638) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------- 10,503,545 13,723,741 -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------- LOCAL FUND SHARES Proceeds from shares issued -- 5,922,860 -- -- -- -- Dividends reinvested 551 203,899 -- -- -- -- Cost of shares redeemed -- (14,743,148) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------- 551 (8,617,148) -- -- -- -- ------------- ------------- ------------ ------------- ------------ ------------- Change in net assets from capital transaction $116,508,979 $164,726,629 $27,355,497 $ 27,461,276 $15,381,146 $ 14,197,846 ============= ============= ============ ============= ============ =============
(a) For the period from May 25, 2001 (commencement of operations) through October 31, 2001. (b) For the period from November 29, 2001 (commencement of operations) through April 30, 2002. 2002 SEMIANNUAL REPORT 102
S & P 500 INDEX MID CAP MARKET INDEX SMALL CAP INDEX ============================= ========================= ========================= SIX MONTHS SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED ENDED YEAR ENDED OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, APRIL 30, 2002 2001 2002 2001 2002 2001 ================================= =============== ============ =========== ============ =========== ============ (UNAUDITED) (UNAUDITED) (UNAUDITED) SHARE TRANSACTIONS: CLASS A SHARES Issued 162,704 201,836 1,088,443 754,056 739,281 615,152 Reinvested 1,688 4,313 2,557 18,406 2,008 1,479 Redeemed (27,277) (29,151) (347,388) (108,902) (204,824) (128,295) --------------- ------------ ----------- ------------ ----------- ------------ 137,115 176,998 743,612 663,560 536,465 488,336 --------------- ------------ ----------- ------------ ----------- ------------ CLASS B SHARES Issued 106,047 141,623 2,916 593 (a) 7,817 (b) - Reinvested 319 1,614 1 - 8 (b) - Redeemed (16,850) (15,927) (1) - - - --------------- ------------ ----------- ------------ ----------- ------------ 89,516 127,310 2,916 593 7,825 - --------------- ------------ ----------- ------------ ----------- ------------ INSTITUTIONAL CLASS SHARES Issued 6,709,999 9,375,464 2,352,043 2,394,146 1,353,941 1,447,161 Reinvested 79,444 208,808 14,254 44,584 7,879 5,616 Redeemed (1,190,127) (5,166,895) (718,268) (398,209) (277,526) (334,038) --------------- ------------ ----------- ------------ ----------- ------------ 5,599,316 4,417,377 1,648,029 2,040,521 1,084,294 1,118,739 --------------- ------------ ----------- ------------ ----------- ------------ SERVICE CLASS SHARES Issued 6,101,965 10,960,560 -- -- -- -- Reinvested 110,093 395,172 -- -- -- -- Redeemed (1,136,236) (898,051) -- -- -- -- --------------- ------------ ----------- ------------ ----------- ------------ 5,075,822 10,457,681 - - - - --------------- ------------ ----------- ------------ ----------- ------------ INSTITUTIONAL SERVICE CLASS SHARES Issued 1,546,707 1,923,157 -- -- -- -- Reinvested 21,414 68,261 -- -- -- -- Redeemed (500,262) (709,785) -- -- -- -- --------------- ------------ ----------- ------------ ----------- ------------ 1,067,859 1,281,633 - - - - --------------- ------------ ----------- ------------ ----------- ------------ LOCAL FUND SHARES Issued -- 544,096 -- -- -- -- Reinvested 56 18,111 -- -- -- -- Redeemed -- (1,397,300) -- -- -- -- --------------- ------------ ----------- ------------ ----------- ------------ 56 (835,093) - - - - --------------- ------------ ----------- ------------ ----------- ------------ Total change in shares 11,969,684 15,625,906 2,394,557 2,704,674 1,628,584 1,607,075 =============== ============ =========== ============ =========== ============
(a) For the period from May 25, 2001 (commencement of operations) through October 31, 2001. (b) For the period from November 29, 2001 (commencement of operations) through April 30, 2002. 2002 SEMIANNUAL REPORT 103 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================
INTERNATIONAL INDEX BOND INDEX ============================ =========================== SIX MONTHS SIX MONTHS ENDED YEAR ENDED ENDED YEAR ENDED APRIL 30, OCTOBER 31, APRIL 30, OCTOBER 31, 2002 2001 2002 2001 (UNAUDITED) (UNAUDITED) =========================== ============= ============= ============ ============= CAPITAL TRANSACTIONS: CLASS A SHARES Proceeds from shares issued $ 10,488,893 $ 14,033,385 $17,568,152 $ 11,061,327 Dividends reinvested 17,259 8,445 326,965 159,494 Cost of shares redeemed (7,677,036) (3,113,946) (4,951,475) (10,142,262) ------------- ------------- ------------ ------------- 2,829,116 10,927,884 12,943,642 1,078,559 ------------- ------------- ------------ ------------- CLASS B SHARES Proceeds from shares issued 30,946 34,549 6,515 10,000 (a) Dividends reinvested - 300 188 - Cost of shares redeemed (4,999) (12,964) - - ------------- ------------- ------------ ------------- 25,947 21,885 6,703 10,000 ------------- ------------- ------------ ------------- INSTITUTIONAL CLASS SHARES Proceeds from shares issued 41,584,522 40,911,118 47,553,366 44,595,314 Dividends reinvested 126,674 59,882 1,330,244 491,848 Cost of shares redeemed (10,385,985) (9,881,846) (9,161,636) (4,049,413) ------------- ------------- ------------ ------------- 31,325,211 31,089,154 39,721,974 41,037,749 ------------- ------------- ------------ ------------- Change in net assets from capital transactions $ 34,180,274 $ 42,038,923 $52,672,319 $ 42,126,308 ============= ============= ============ ============= SHARE TRANSACTIONS: CLASS A SHARES Issued 1,633,253 2,123,369 1,649,526 1,042,115 Reinvested 2,635 1,224 30,750 15,237 Redeemed (1,178,751) (442,812) (467,215) (998,690) ------------- ------------- ------------ ------------- 457,137 1,681,781 1,213,061 58,662 ------------- ------------- ------------ ------------- CLASS B SHARES Issued 4,753 4,777 620 930 (a) Reinvested - 42 18 - Redeemed (801) (1,693) - - ------------- ------------- ------------ ------------- 3,952 3,126 638 930 ------------- ------------- ------------ ------------- INSTITUTIONAL CLASS SHARES Issued 6,426,291 6,096,008 4,477,550 4,152,560 Reinvested 19,285 8,514 125,214 46,745 Redeemed (1,597,502) (1,343,282) (862,067) (383,530) ------------- ------------- ------------ ------------- 4,848,074 4,761,240 3,740,697 3,815,775 ------------- ------------- ------------ ------------- Total change in shares 5,309,163 6,446,147 4,954,396 3,875,367 ============= ============= ============ =============
(a) For the period from October 12, 2001 (commencement of operations) through October 31, 2001. 2002 SEMIANNUAL REPORT 104 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================
MORLEY CAPITAL ACCUMULATION SMALL CAP VALUE ============================================================================ SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED APRIL 30, 2002 OCTOBER 31, 2001 APRIL 30, 2002 OCTOBER 31,2001 ============================================================================================================================= (UNAUDITED) (UNAUDITED) CAPITAL TRANSACTIONS: SERVICE CLASS SHARES Proceeds from shares issued $ 28,969,301 $ 25,431,899 $ - $ - Dividends reinvested 740,775 1,022,082 - - Cost of shares redeemed (9,036,088) (10,403,344) - - ------------------ ------------------ ------------------ ----------------- 20,673,988 16,050,637 - - ------------------ ------------------ ------------------ ----------------- INSTITUTIONAL CLASS SHARES Proceeds from shares issued 2,993,409 8,935,985 1,894,386 6,879,366 Dividends reinvested 467,851 694,996 1,794,575 149,810 Cost of shares redeemed (8,469,910) (3,073,170) (57,284) (726,217) ------------------ ------------------ ------------------ ----------------- (5,008,650) 6,557,811 3,631,677 6,302,959 ------------------ ------------------ ------------------ ----------------- IRA CLASS SHARES Proceeds from shares issued 1,981,585 988,159 - - Dividends reinvested 64,379 111,147 - - Cost of shares redeemed (3,742) (893,244) - - ------------------ ------------------ ------------------ ----------------- 2,042,222 206,062 - - ------------------ ------------------ ------------------ ----------------- Change in net assets from capital transactions $ 17,707,560 $ 22,814,510 $ 3,631,677 $ 6,302,959 ================== ================== ================== ================= SHARE TRANSACTIONS: SERVICE CLASS SHARES Issued 2,896,930 2,543,189 - - Reinvested 64,146 102,208 - - Redeemed (903,608) (1,040,334) - - ------------------ ------------------ ------------------ ----------------- 2,057,468 1,605,063 - - ------------------ ------------------ ------------------ ----------------- INSTITUTIONAL CLASS SHARES Issued 299,341 893,598 162,604 557,090 Reinvested 41,044 69,500 157,576 13,511 Redeemed (846,991) (307,317) (4,534) (60,581) ------------------ ------------------ ------------------ ----------------- (506,606) 655,781 315,646 510,020 ------------------ ------------------ ------------------ ----------------- IRA CLASS SHARES Issued 198,158 98,816 - - Reinvested 5,622 11,115 - - Redeemed (374) (89,324) - - ------------------ ------------------ ------------------ ----------------- 203,406 20,607 - - ------------------ ------------------ ------------------ ----------------- Total change in shares 1,754,268 2,281,451 315,646 510,020 ================== ================== ================== ================= =============================================================================================================================
2002 SEMIANNUAL 105 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================ 3. TRANSACTIONS WITH AFFILIATES Under the terms of the Investment Advisory Agreements, Gartmore Mutual Fund Capital Trust (GMF) or Gartmore Morley Capital Management, Inc. (GMCM) manages the investment of the assets and supervises the daily business affairs of their respective Funds (as shown in the table below). GMF is a wholly owned subsidiary of Gartmore Global Investments, Inc. GMCM is a majority-owned subsidiary of Gartmore Morley Financial Services, Inc., a wholly owned subsidiary of Gartmore Global Investments, Inc. The adviser also provides investment management evaluation services in initially selecting and monitoring on an ongoing basis the performance of the subadviser, if applicable, for the Funds it advises. The subadvisers manage each of their respective Funds investments and have the responsibility for making all investment decisions for the applicable Funds. The adviser and subadviser, if applicable, for each Fund is as follows:
FUND ADVISOR SUBADVISOR ===================================================================== Large Cap Growth GMF Goldman Sachs Asset Management --------------------------------------------------------------------- Small Cap GMF INVESCO, Inc. --------------------------------------------------------------------- S&P 500 Index GMF Fund Asset Management, L.P. --------------------------------------------------------------------- Mid Cap Market Index GMF Fund Asset Management, L.P. --------------------------------------------------------------------- Small Cap Index GMF Fund Asset Management, L.P. --------------------------------------------------------------------- International Index GMF Fund Asset Management, L.P. --------------------------------------------------------------------- Bond Index GMF Fund Asset Management, L.P. --------------------------------------------------------------------- Morley Capital Accumulation GMCM n/a --------------------------------------------------------------------- Small Cap Value GMF NorthPointe Capital, LLC (a) ---------------------------------------------------------------------
(a) Affiliate of GMF. Under the terms of the Investment Advisory Agreements, each Fund pays GMF or GMCM, as applicable, an investment advisory fee based on that Funds average daily net assets. From such fees, pursuant to the subadvisory agreements, the adviser pays fees to the subadviser. Additional information regarding the investment advisory fees and subadvisory fees for GMF, GMCM and the subadvisers, where applicable, is as follows for the period ended April 30, 2002:
TOTAL FEES PAID TO FUND FEE SCHEDULE FEES RETAINED SUBADVISER ====================================================================================== Large Cap Growth Up to $150 million 0.80% 0.40% 0.40% On $150 million and more 0.70% 0.40% 0.30% -------------------------------------------------------------------------------------- Small Cap Up to $100 million 0.95% 0.40% 0.55% On $100 million and more 0.80% 0.40% 0.40% -------------------------------------------------------------------------------------- S&P 500 Index Up to $200 million 0.13% 0.08% 0.05% On the next $800 million 0.13% 0.10% 0.03% On the next $500 million 0.13% 0.11% 0.02% On the next $1.5 billion 0.12% 0.10% 0.02% On $3 billion and more 0.11% 0.09% 0.02% -------------------------------------------------------------------------------------- Mid Cap Market Index All Assets 0.22% 0.13% 0.09% -------------------------------------------------------------------------------------- Small Cap Index All Assets 0.20% 0.13% 0.07% -------------------------------------------------------------------------------------- International Index All Assets 0.27% 0.13% 0.14% -------------------------------------------------------------------------------------- Bond Index All Assets 0.22% 0.13% 0.09% -------------------------------------------------------------------------------------- Morley Capital Accumulation* All Assets 0.35% 0.25% - -------------------------------------------------------------------------------------- Small Cap Value All Assets 0.85% - 0.85% --------------------------------------------------------------------------------------
* GMCM has agreed to voluntarily waive 0.10% of the advisory fee until further written notice to the shareholders. 2002 SEMIANNUAL REPORT 106 GMF or GMCM, where applicable, and the Funds have entered into written contracts (Expense Limitation Agreements) limiting operating expenses (excluding any taxes, interest, brokerage fees, extraordinary expenses, Rule 12b-1 fees and administrative services fees) from exceeding the amounts listed in the table below:
EXPENSE CAPS ================================================================================================================== INSTITUTIONAL CLASS CLASS CLASS SERVICE SERVICE LOCAL A B C INSTITUTIONAL CLASS CLASS FUND IRA FUND SHARES SHARES SHARES CLASS SHARES SHARES SHARES SHARES CLASS ================================================================================================================== Large Cap Growth 1.20% 1.95% 1.95% n/a 1.05% n/a n/a n/a ------------------------------------------------------------------------------------------------------------------ Small Cap 1.35% 2.10% 2.10% n/a 1.20% n/a n/a n/a ------------------------------------------------------------------------------------------------------------------ S&P 500 Index 0.63% 1.23% n/a 0.23% 0.48% 0.63% 0.35% n/a ------------------------------------------------------------------------------------------------------------------ Mid Cap Market Index 0.81% 1.41% n/a 0.31% n/a n/a n/a n/a ------------------------------------------------------------------------------------------------------------------ Small Cap Index (a) 0.79% 1.39% n/a 0.29% n/a n/a n/a n/a ------------------------------------------------------------------------------------------------------------------ International Index (a) 0.86% 1.46% n/a 0.36% n/a n/a n/a n/a ------------------------------------------------------------------------------------------------------------------ Bond Index (a) 0.81% 1.41% n/a 0.31% n/a n/a n/a n/a ------------------------------------------------------------------------------------------------------------------ Morley Capital Accumulation n/a n/a n/a 0.55% n/a 0.95% n/a 0.95% ------------------------------------------------------------------------------------------------------------------ Small Cap Value n/a n/a n/a 1.00% n/a n/a n/a n/a ------------------------------------------------------------------------------------------------------------------
(a) The Expense Limitation Agreement for these Funds also states that the expense ratio for each class will not exceed 4.00% through February 28, 2011. GMF or GMCM may request and receive reimbursement from certain Funds of the advisory fees waived and other expenses reimbursed by them pursuant to the Expense Limitation Agreements at a later date not to exceed five fiscal years from commencement of operations (three fiscal years with respect to the Morley Capital Accumulation Fund) if the Fund has reached a sufficient asset size to permit reimbursement to be made without causing the total annual operating expense ratio of the Fund to exceed the limits set forth above. No reimbursement will be made unless: (i) the Funds assets exceed $100 million; (ii) the total annual expense ratio of the class making such reimbursement is 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. Except as provided for in the Expense Limitation Agreements, reimbursement of amounts previously waived or assumed by GMF or GMCM is not permitted. As of the period ended April 30, 2002, the cumulative potential reimbursements were as follows:
FUND AMOUNT ===================================== Large Cap Growth $832,487 ------------------------------------- Small Cap 566,629 ------------------------------------- S&P 500 Index 715,327 ------------------------------------- Mid Cap Market Index 260,856 ------------------------------------- Small Cap Index 252,775 ------------------------------------- International Index 328,876 ------------------------------------- Bond Index 253,445 ------------------------------------- Morley Capital Accumulation 386,049 ------------------------------------- Small Cap Value 167,896 -------------------------------------
2002 SEMIANNUAL REPORT 107 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================ Under the terms of a Distribution Plan under Rule 12b-1 of the 1940 Act, Nationwide Securities, Inc. (NSI), the Funds Distributor, is compensated by the Funds for expenses associated with the distribution of certain classes of shares of the Funds. These fees are based on average daily net assets of the respective class of the Funds at an annual rate not to exceed the following:
CLASS A CLASS B CLASS C SERVICE CLASS LOCAL FUND IRA FUND SHARES SHARES SHARES SHARES SHARES CLASS ============================================================================================== Large Cap Growth 0.25% 1.00% 1.00% n/a n/a n/a ---------------------------------------------------------------------------------------------- Small Cap 0.25% 1.00% 1.00% n/a n/a n/a ---------------------------------------------------------------------------------------------- Mid Cap Market Index 0.25% 1.00% n/a n/a n/a n/a ---------------------------------------------------------------------------------------------- Small Cap Index 0.25% 1.00% n/a n/a n/a n/a ---------------------------------------------------------------------------------------------- International Index 0.25% 1.00% n/a n/a n/a n/a ---------------------------------------------------------------------------------------------- Bond Index 0.25% 1.00% n/a n/a n/a n/a ---------------------------------------------------------------------------------------------- S & P 500 Index 0.25% 1.00% n/a 0.15% 0.07% n/a ---------------------------------------------------------------------------------------------- Morley Capital Accumulation n/a n/a n/a 0.25% n/a 0.25% ---------------------------------------------------------------------------------------------- Small Cap Value n/a n/a n/a n/a n/a n/a ----------------------------------------------------------------------------------------------
Pursuant to an Underwriting Agreement, NSI serves as principal underwriter of the Funds in the continuous distribution of their shares and receives commissions in the form of a front-end sales charge on the Class A and Class C shares. Such fees are deducted from and are not included in proceeds from sales of Class A and Class C shares. From such fees, NSI pays sales commissions, salaries, and other expenses in connection with generating new sales of Class A and Class C shares of the Funds. NSI also receives fees for services as principal underwriter for Class B shares of the Funds. Such fees are contingent deferred sales charges (CDSCs) ranging from 1% to 5% imposed on redemptions of Class B shares which may cause the current value of a shareholders account to fall below the total purchase payments. The CDSC, if applicable, will be imposed on redemptions made within 6 years of the purchase. In addition, Class C shares also have a CDSC fee of 1% imposed on redemptions of Class C shares made within one year of purchase. For the period ended April 30, 2002, NSI received commissions of $122,240 from front-end sales charges of Class A and Class C shares and from CDSC fees from Class B and Class C shares of the Funds, of which $108,883 was reallowed to affiliated broker-dealers of the Funds. The Board of Trustees has approved a change in the principal underwriter of the Trust from NSI to Gartmore Distribution Services, Inc. (GDSI). It is anticipated that GDSI will become the Funds underwriter after July 1, 2002. Under the terms of a Fund Administration Agreement, Gartmore SA Capital Trust (GSA) provides for various administrative and accounting services. Gartmore Investors Services, Inc. (GISI), a wholly owned subsidiary of GSA, serves as Transfer Agent and Dividend Disbursing Agent for each of the Funds. Effective December 1, 2001, the fees for the services provided under both agreements are combined and calculated based on the Trusts average daily net assets according to the fee schedule below. The fees are then allocated proportionately among all funds within the Trust in relation to the average daily net assets of each fund and are paid to GSA. GSA pays GISI from these fees for its services.
COMBINED FEE SCHEDULE* ================================================================== Up to $1 billion 0.25% ------------------------------------------------------------------ $1 billion and more up to $3 billion 0.18% ------------------------------------------------------------------ $3 billion and more up to $4 billion 0.14% ------------------------------------------------------------------ $4 billion and more up to $5 billion 0.07% ------------------------------------------------------------------ $5 billion and more up to $10 billion 0.04% ------------------------------------------------------------------ $10 billion and more up to $12 billion 0.02% ------------------------------------------------------------------ $12 billion or more 0.01% ------------------------------------------------------------------
* The assets of the Gartmore Investor Destinations Aggressive, Gartmore Investor Destinations Moderately Aggressive, Gartmore Investor Destinations Moderate, Gartmore Investor Destinations Moderately Conservative and Gartmore Investor Destinations Conservative Funds (Investor Destinations Funds) are excluded from the Trust asset level amount in order to calculate this asset based fee. The Investor Destinations Funds do not pay any part of this fee. 2002 SEMIANNUAL REPORT 108 Prior to December 1, 2001, the fees for the Fund Administration Agreement were calculated based on the fee schedule below:
FUND FUND ADMINISTRATION FEE SCHEDULE (a) ======================================================================================== Large Cap Growth and Small Cap Up to $250 million 0.10% On the next $750 million 0.06% On $1 billion and more 0.04% ---------------------------------------------------------------------------------------- S&P 500 Index Up to $1 billion 0.05% On $1 billion and more 0.04% ---------------------------------------------------------------------------------------- Mid Cap Market Index, Small Cap Index, Up to $250 million 0.07% International Index, Bond Index, Morley On the next $750 million 0.05% Capital Accumulation and Small Cap Value On $1 billion and more 0.04% ----------------------------------------------------------------------------------------
(a) The Fund Administration fee was subject to a minimum of $75,000 per Fund per year for all Funds except the S&P 500 Index and Morley Capital Accumulation Funds. The Fund Administration fee for the Morley Capital Accumulation Fund was subject to a minimum of $50,000 per year and the S&P 500 Index Fund was not subject to a minimum. Prior to December 1, 2001, GISI received fees at $20 per account for Class A, Class B and Class C shares and 0.01% of the average daily net assets of all other classes of each of the applicable Funds. GSA and GISI have entered into agreements with BISYS Fund Services Ohio, Inc. to provide sub-administration and subtransfer agency services, respectively, to the Funds. Under the terms of an Administrative Services Plan, the Funds may pay fees to servicing organizations, such as broker-dealers, including Nationwide Financial Services, and financial institutions, which agree to provide administrative support services to the shareholders of certain classes. These services include, but are not limited, to the following: establishing and maintaining shareholder accounts, processing purchase and redemption transactions, arranging bank wires, performing shareholder subaccounting, answering inquiries regarding the Funds, and other such services. These fees are based on an annual rate of up to 0.25% of the average daily net assets of the Class A, Service Class and Institutional Service Class of shares of each of the applicable Funds (except for the Morley Capital Accumulation Fund). For the Morley Capital Accumulation Fund, these fees are based on an annual rate of up to 0.15% of the average daily net assets of the IRA Class and Service Class of shares. For the Morley Capital Accumulation Fund, a redemption fee of 2.00% may be incurred (on the amount redeemed) by a shareholder if the shareholder redeems shares when the yield of the Fund (computed before subtraction of expenses) has fallen, and remains, below the Dealer Commercial Paper (CP) 90-day Index. The redemption fee will be retained by the Fund to help minimize the impact such redemptions may have on Fund performance and to support administrative costs associated with redemptions from the Funds. Additionally, the fee may discourage market timing by those shareholders igniting redemptions to take advantage of short-term movements in interest rates. During the period ended April 30, 2002, the events that would trigger the imposition of a redemption fee did not occur and the Fund did not collect any redemption fees. 4. BANK LOANS The Trust currently has an unsecured bank line of credit of $50,000,000. Borrowings under this arrangement bear interest at the Federal Funds rate plus 0.50%. These interest costs are included in custodian fees in the Statements of Operations. No compensating balances are required under the terms of the line of credit. The Funds had no outstanding borrowings as of April 30, 2002. 2002 SEMIANNUAL REPORT 109 NOTES TO FINANCIAL STATEMENTS (Continued) April 30, 2002 ================================================================================ 5. INVESTMENT TRANSACTIONS Purchases and sales of securities (excluding short-term securities) for the period ended April 30, 2002, are summarized as follows:
FUND PURCHASES SALES ====================================================== Large Cap Growth $ 19,232,731 $21,567,812 ------------------------------------------------------ Small Cap 11,225,852 13,165,692 ------------------------------------------------------ S&P 500 Index 112,551,088 1,748,476 ------------------------------------------------------ Mid Cap Market Index 27,433,160 3,272,491 ------------------------------------------------------ Small Cap Index 12,061,410 413,416 ------------------------------------------------------ International Index 30,309,670 2,775,193 ------------------------------------------------------ Bond Index 77,201,859 29,168,908 ------------------------------------------------------ Morley Capital Accumulation 37,721,422 19,729,958 ------------------------------------------------------ Small Cap Value 21,247,757 17,826,72 ------------------------------------------------------
6. CHANGE IN INDEPENDENT AUDITORS Upon the recommendation of the Boards Audit Committee, the Board determined on March 14, 2002 to engage PricewaterhouseCoopers LLP (PWC) as independent auditors for the Trusts fiscal year ending October 31, 2002. At the request of the Trust, KPMG LLP (KPMG), which had previously served as the Trusts independent auditors, submitted its resignation as auditors as of March 20, 2002. The audit reports of KPMG on the financial statements as of and for the fiscal years ended October 31, 2000 and October 31, 2001 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles. In connection with the audit of the fiscal years ended October 31, 2000 and October 31, 2001 and the subsequent interim period through March 20, 2002, there were no disagreements with KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements if not resolved to the satisfaction of KPMG would have caused KPMG to make reference to the subject matter of the disagreements in connection with KPMGs opinions. Additionally, there were no disagreements with KPMG regarding any of these matters, either those resolved to their satisfaction or those not resolved to their satisfaction. None of the events listed in Item 304(a)(1)(v)(A) through (D) of Regulation S-K of the Securities and Exchange Commission occurred during the fiscal years ended October 31, 2000 and October 31, 2001 or the subsequent interim period from November 1, 2001 through March 20, 2002. During the fiscal years ended October 31, 2000 and October 31, 2001 and the subsequent interim period from November 1, 2001 through March 20, 2002, there was no consultation with PWC regarding: (1) application of accounting principles to specified transactions, either completed or proposed, or the type of audit opinion that might be rendered on the Trusts financial statements; or (2) any matter that was the subject of a disagreement (as defined in paragraph 304(a)(1)(iv) of Regulation S-K) or a reportable event (as defined in paragraph 304(a)(1)(v) of Regulation S-K). 2002 SEMIANNUAL REPORT 110 MANAGEMENT INFORMATION ================================================================================ TRUSTEES WHO ARE NOT INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE FUNDS APRIL 30, 2002
TERM OF OFFICE NUMBER OF OTHER WITH PORTFOLIOS DIRECTOR- POSITION(S) TRUST - PRINCIPAL IN FUND SHIPS NAME, HELD LENGTH OCCUPATION(S) COMPLEX HELD ADDRESS, WITH OF TIME DURING PAST OVERSEEN BY TRUS- AND AGE FUND SERVED(1) 5 YEARS BY TRUSTEE TEE (2) ============================ =========== ============== ================================================= ========== ========= Charles E. Allen, Trustee Since Mr. Allen is Chairman, Chief Executive Officer 77 None 8162 E. Jefferson Ave., #15B July 2000 and President of Graimark Realty Advisors, Detroit, MI 48214 Inc. (real estate development, investment and Age 54 asset management). Paula H.J. Cholmondeley Trustee Since Ms. Cholmondeley is Vice President and 77 None c/o Sappi Fine Paper July 2000 General Manager of Special Products at Sappi 225 Franklin Street Fine Paper North America. Prior to 1998, she Boston, MA 02110 held various positions with Owens Corning, Age 54 including Vice President and General Manager of the Residential Insulation Division (1997 to 1998), President of the MIRAFLEX Fibers Division (1994 to 1997). C. Brent DeVore Trustee Since Dr. DeVore is President of Otterbein College. 77 None 111 N. West Street May 1998 Westerville, OH 43081 Age 61 Robert M. Duncan Trustee Since Since 1999, Mr. Duncan has worked as an 77 None 1397 Haddon Road April 1997 arbitration and mediation consultant. From Columbus, OH 43209 1996 to 1999, he was Commissioner of the Age 74 Ohio Elections Commission. Barbara L. Hennigar Trustee Since Retired; Ms. Hennigar is the former Chairman of 77 None 6363 So. Sicily Way July 2000 OppenheimerFunds Services and Shareholder Aurora, CO 80016 Services Inc. Ms. Hennigar held this position Age 66 from October 1999 to June 2000. Prior to that, she served as President and Chief Executive Officer of OppenheimerFunds Services. Thomas J. Kerr, IV Trustee Since Dr. Kerr is President Emeritus of Kendall 77 None 4890 Smoketalk Lane June 1981 College Westerville, OH 43081 Age 68 Douglas F. Kridler Trustee Since Mr. Kridler is the President and Chief Executive 77 None 2355 Brixton Road September 1997 Officer of the Columbus Foundation. Prior to Columbus, OH 43221 January 31, 2002, Mr. Kridler was the President Age 46 of the Columbus Association for the Performing Arts and Chairman of the Greater Columbus Convention and Visitors Bureau.
2002 Semiannual Report 111 MANAGEMENT INFORMATION (Continued) ================================================================================ Trustees who are not Interested Persons (as defined in the 1940 Act) of the Funds (continued) April 30, 2002
TERM OF OFFICE NUMBER OF OTHER WITH PORTFOLIOS DIRECTOR- POSITION(S) TRUST - PRINCIPAL IN FUND SHIPS NAME, HELD LENGTH OCCUPATION(S) COMPLEX HELD ADDRESS, WITH OF TIME DURING PAST OVERSEEN BY TRUS- AND AGE FUND SERVED(1) 5 YEARS BY TRUSTEE TEE (2) ============================ =========== ============== ================================================= ========== ========= David C. Wetmore Trustee(3) Since Mr. Wetmore is the Managing Director of 81 None 26 Turnbridge Drive May 1998 Updata Capital, Inc., a venture capital firm. Long Cove Plantation Hilton Head, SC 29928 Age 53
TRUSTEES AND OFFICERS WHO ARE INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE FUNDS APRIL 30, 2002
TERM OF OFFICE NUMBER OF OTHER WITH PORTFOLIOS DIRECTOR- POSITION(S) TRUST - PRINCIPAL IN FUND SHIPS NAME, HELD LENGTH OCCUPATION(S) COMPLEX HELD ADDRESS, WITH OF TIME DURING PAST OVERSEEN BY TRUS- AND AGE FUND SERVED(1) 5 YEARS BY TRUSTEE TEE (2) ============================ =========== ============== ================================================= ========== ========= Joseph J. Gasper Trustee and Since Mr. Gasper is a Director, President and Chief 77 None Nationwide Insurance Chairman September 1997 Operating Officer of Nationwide Financial One Nationwide Plaza Services, Inc.* (since December 1996) and of 1-37-06 Nationwide Life and Annuity Insurance Columbus, OH 43215 Company* and Nationwide Life Insurance Age 59 Company* (since April 1996). Mr. Gasper is also Vice Chairman of the Board of Directors of the managing unitholder of GGAMT* and GMF.* Paul J. Hondros Trustee Since Mr. Hondros is President and Chief Executive 81 None Gartmore Global July 2000 Officer of Gartmore Distribution Services, Inc.,* Investments, Inc. Gartmore Investors Services, Inc.,* Gartmore 1200 River Road, Morley Capital Management, Inc.,* Gartmore Conshohocken, PA 19428 Morley Financial Services, Inc.,* NorthPointe Age 53 Capital, LLC,* GGAMT,* GGI,* GMF,* and GSA* and a Director of Nationwide Securities, Inc.* as well as several entities within Nationwide Financial Services, Inc.* He is also an Administrative Committee Member for The AlphaGen Caelum Fund LLC, The AlphaGen Caelum Fund LDC, The Healthcare Fund LLC and The Healthcare Fund LDC (four hedge funds managed by GSA*). Prior to that, Mr. Hondros served as President and Chief Operations Officer of Pilgrim Baxter and Associates, Ltd., an investment management firm, and its affiliated investment management arm, Pilgrim Baxter Value Investors, Inc. and as Executive Vice President to the PBHG Funds, PBHG Insurance Series Funds and PBHG Adviser Funds.
2002 Semiannual Report 112 ================================================================================ TRUSTEES AND OFFICERS WHO ARE INTERESTED PERSONS (AS DEFINED IN THE 1940 ACT) OF THE FUNDS (continued) APRIL 30, 2002
TERM OF OFFICE NUMBER OF OTHER WITH PORTFOLIOS DIRECTOR- POSITION(S) TRUST - PRINCIPAL IN FUND SHIPS NAME, HELD LENGTH OCCUPATION(S) COMPLEX HELD ADDRESS, WITH OF TIME DURING PAST OVERSEEN BY TRUS- AND AGE FUND SERVED(1) 5 YEARS BY TRUSTEE TEE (2) ============================ =========== ============== ================================================= ========== ========= Arden L. Shisler Trustee Since Mr. Shisler is President and Chief Executive 77 None 1356 North Wenger Rd. February 2000 Officer of K&B Transport, Inc., a trucking firm, Dalton, OH 44618 Chairman of the Board for Nationwide Mutual Age 60 Insurance Company* and a Director of Nationwide Financial Services, Inc.* Gerald J. Holland Treasurer Since Mr. Holland is Senior Vice President Chief 77 None Gartmore Global March 2001 Administrative Officer for GGI,* GMF* and Investments, Inc. GSA.* He is also Assistant Treasurer to the 1200 River Road Funds. From July 2000 to March 2002 he was Conshohocken, PA 19428 Senior Vice President Operations for GGI, Age 51 GMF and GSA. Prior to July 2000, he was Vice President for First Data Investor Services, an investment company service provider. Kevin S. Crossett Secretary Since December Mr. Crossett is Vice President, Associate 77 None Gartmore Global 2000 General Counsel for GGI,* GMF,* GSA,* Investments, Inc. Nationwide Financial Services, Inc.* and other 1200 River Road Nationwide Insurance entities.* From June Conshohocken, PA 19428 2000 to December 2000, he was Assistant Age 41 Secretary to the Funds.* Prior to 1999, he was Vice President, Senior Counsel and Director of Compliance for Merrill Lynch, Pierce, Fenner & Smith, Inc. 1 The term of office length is until a director resigns or reaches a mandatory retirement age of 70. The Trust adopted a five-year implementation period for any Trustee 65 or older as of the adoption of this policy. 2 Directorships held in (1) any other investment companies registered under the 1940 Act, (2) 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 (3) any company subject to the requirements of Section 15(d) of the Exchange Act. 3 Mr. Wetmore serves as an independent member of the Administrative Committee for The AlphaGen Caelum Fund LLC, The AlphaGen Caelum Fund LDC, The Healthcare Fund LLC and The Healthcare Fund LDC, four hedge funds managed by Gartmore SA Capital Trust (GSA). * This position is held with an affiliated person or principal underwriter of the Funds.
2002 Semiannual Report 113 OFFICERS Joseph J. Gasper, Chairman Kevin S. Crossett, Secretary Elizabeth A. Davin, Assistant Secretary Michael A. Krulikowski, Assistant Secretary Alaina V. Metz, Assistant Secretary Zita A. Resurreccion, Assistant Secretary Dina A. Tantra, Assistant Secretary Scott Zoltowski, Assistant Secretary Gerald J. Holland, Treasurer William J. Baltrus, Assistant Treasurer Joseph Finelli, Assistant Treasurer Laurice A. Frysinger, Assistant Treasurer Bryan C. Haft, Assistant Treasurer Edwin P. McCausland, Assistant Treasurer Brian ONeill, Assistant Treasurer Mark R. Thresher, Assistant Treasurer Mary L. Vitale, Assistant Treasurer INVESTMENT ADVISERS GARTMORE MUTUAL FUND CAPITAL TRUST 1200 River Road Conshohocken, Pennsylvania 19428 GARTMORE MORLEY CAPITAL MANAGEMENT, INC. 5665 S.W. Meadows Road Lake Oswego, OR 97035 TRANSFER AGENT GARTMORE INVESTORS SERVICES, INC. P.O. Box 1492 Columbus, Ohio 43216-1492 CUSTODIAN THE FIFTH THIRD BANK 38 Fountain Square Plaza Cincinnati, Ohio 45263-0001 LEGAL COUNSEL STRADLEY RONON STEVENS & YOUNG, LLP 2600 One Commerce Square Philadelphia, Pennsylvania 19103-7098 INDEPENDENT AUDITOR PRICEWATERHOUSECOOPERS LLP 100 E. Broad Street Columbus, OH 43215 DISTRIBUTOR NATIONWIDE SECURITIES, INC. P.O. Box 1492 Columbus, Ohio 43216-1492 THIS REPORT IS FOR THE INFORMATION OF SHAREHOLDERS OF GARTMORE FUNDS. FOR MORE COMPLETE INFORMATION, INCLUDING ALL SALES CHARGES AND EXPENSES, PLEASE ASK YOUR REPRESENTATIVE FOR A PROSPECTUS. PLEASE READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY. SECURITIES OFFERED THROUGH GARTMORE DISTRIBUTION SERVICES, INC., MEMBER NASD, AND NATIONWIDE SECURITIES, INC., MEMBER NASD. GARTMORE GLOBAL INVESTMENTS IS THE INVESTMENT ADVISER TO GARTMORE FUNDS. LOOK BEYOND. AND THE FAMILY OF FUNDS DIAGRAM ARE SERVICE MARKS OF GARTMORE GLOBAL INVESTMENTS, INC. NATIONWIDE IS A REGISTERED FEDERAL SERVICE MARK OF THE NATIONWIDE MUTUAL INSURANCE COMPANY. GARTMORE FUNDS 1200 River Road Conshohocken, PA 19428 888-223-2116 WWW.GARTMOREFUNDS.COM Gartmore Funds Shareholder Services: 800-848-0920 GG-0094 6/02