UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act File Number:         811-08495

NATIONWIDE MUTUAL FUNDS

(Exact name of registrant as specified in charter)

One Nationwide Plaza: Mail Code: 05-02-210R Columbus, OH 43215

(Address of principal executive offices) (Zip code)

Stephen R. Rimes, Esq.

One Nationwide Plaza

Mail Code: 05-02-210R

Columbus, OH 43215

(Name and address of agent for service)

Registrant’s telephone number, including area code: (614) 435-3820

Date of fiscal year end: October 31, 2023

Date of reporting period: November 1, 2022 through October 31, 2023

Form N-CSR is to be used by management investment companies to file reports with the Commission not later than ten (10) days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, D. C. 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Reports to Stockholders.

(a)

Include a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under Investment Company Act of 1940  (the “Act”)  (17 CFR 270.30e-1).

(b)

Include a copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the Act

(17 CFR 270.30e-3)

that contains disclosures specified by paragraph (c)(3) of that rule. Not applicable.

Annual

Report

October

31,

2023

Nationwide

Mutual

Funds

Target

Destination

Funds

Nationwide

Destination

2025

Fund

Nationwide

Destination

2030

Fund

Nationwide

Destination

2035

Fund

Nationwide

Destination

2040

Fund

Nationwide

Destination

2045

Fund

Nationwide

Destination

2050

Fund

Nationwide

Destination

2055

Fund

Nationwide

Destination

2060

Fund

Nationwide

Destination

2065

Fund

Nationwide

Destination

Retirement

Fund

IMPORTANT

INFORMATION

The

SEC

has

adopted

a

new

rule

that

will

change

how

you

receive

your

fund’s

shareholder

reports.

Starting

from

July

2024,

you

will

receive

a

paper

summary

report

via

mail

that

highlights

key

information

about

your

fund.

The

full

report

and

other

details

will

be

available

online

and

delivered

upon

request.

To

help

us

with

this

transition

and

save

paper,

we

encourage

you

to

sign

up

for

the

e-delivery

of

your

fund

documents.

By

choosing

e-delivery,

you

will

get

an

email

when

your

documents

are

online.

You

will

also

have

access

to

an

electronic

archive

of

your

documents

.

We

think

this

new

rule

will

make

it

easier

for

you

to

review

and

monitor

your

fund

investments.

You

can

access

the

full

report

and

other

details

online

at

https://www.nationwide.com/personal/investing/mutual-funds/prospectuses-fund-documents/

If

you

wish

to

receive

reports

and

other

Fund

documents

via

eDelivery

you

may

elect

this

option

by

contacting

your

financial

intermediary

(such

as

a

broker-dealer

or

bank)

or,

if

you

are

a

direct

investor,

by

calling

Shareholder

Services

at

800-848-0920.

Nationwide

Funds

®

Commentary

within

this

report

is

provided

by

the

portfolio

manager(s)

of

each

Fund

as

of

the

date

of

this

report

and

is

subject

to

change

at

any

time

based

on

market

or

other

conditions.

Third-party

information

has

been

obtained

from

sources

that

Nationwide

Fund

Advisors

(“NFA”),

the

Investment

Adviser

to

the

Funds,

deems

reliable.

Portfolio

composition

is

accurate

as

of

the

date

of

this

report

and

is

subject

to

change

at

any

time

and

without

notice.

NFA,

its

affiliated

advisers,

or

its

employees

may

hold

a

position

in

the

securities

in

this

report.

This

material

is

not

a

recommendation

to

buy,

sell,

hold,

or

rollover

any

asset,

adopt

an

investment

strategy,

retain

a

specific

investment

manager,

or

use

a

particular

account

type.

Investors

should

discuss

their

specific

situation

with

their

financial

professional.

Statement

Regarding

Availability

of

Quarterly

Portfolio

Holdings

The

Trust

files

complete

schedules

of

portfolio

holdings

for

each

Fund

with

the

Securities

and

Exchange

Commission

(“SEC”)

for

the

first

and

third

quarters

of

each

fiscal

year

on

Form

N-PORT.

Copies

of

the

first

and

third-quarter

holdings

are

available

with

the

Fund’s

regulatory

documents

at

https://www.nationwide.com/mutual-funds-prospectuses.jsp

.

Additionally,

the

Trust

files

a

schedule

of

portfolio

holdings

monthly

for

the

Nationwide

Government

Money

Market

Fund

on

Form

N-MFP.

Forms

N-PORT

and

Forms

N-MFP

are

available

on

the

SEC’s

website

at

http://www.sec.gov

.

Forms

N-PORT

and

Forms

N-MFP

may

be

reviewed

and

copied

at

the

SEC’s

Public

Reference

Room

in

Washington,

DC,

and

information

on

the

operation

of

the

Public

Reference

Room

may

be

obtained

by

calling

800-SEC-0330.

The

Trust

also

makes

this

information

available

to

investors

upon

request

without

charge.

Statement

Regarding

Availability

of

Proxy

Voting

Record

Federal

law

requires

the

Trust

and

each

of

its

investment

advisers

and

subadvisers

to

adopt

procedures

for

voting

proxies

(the

“Proxy

Voting

Guidelines”)

and

to

provide

a

summary

of

those

Proxy

Voting

Guidelines

used

to

vote

the

securities

held

by

a

Fund. The

Funds’

proxy

voting

policies

and

procedures,

as

well

as

information

regarding

how

the

Funds

voted

proxies

relating

to

portfolio

securities

during

the

most

recent

12-month

period

ended

June

30,

are

available

without

charge

(i)

upon

request,

by

calling

800-848-0920,

(ii)

on

the

Trust’s

website

at

nationwide.com/mutualfunds

or

(iii)

on

the

SEC’s

website

at

http://www.sec.gov

.

Table

of

Contents

Message

to

Investors

1

Fund

Commentaries

6

Shareholder

Expense

Examples

46

Statements

of

Investments

50

Statements

of

Assets

and

Liabilities

60

Statements

of

Operations

68

Statements

of

Changes

in

Net

Assets

72

Financial

Highlights

86

Notes

to

Financial

Statements

96

Report

of

Independent

Registered

Public

Accounting

Firm

111

Supplemental

Information

112

Management

Information

115

Market

Index

Definitions

118

Glossary

123

Nationwide

Mutual

Funds

-

October

31,

2023

-

1

Message

to

Investors

Dear

Investor,

Despite

the

past

year's

volatility,

our

business

approach

has

been

guided

by

our

three

fundamental

principles

of

collaboration,

excellence,

and

a

disciplined

approach

to

leadership,

reinforcing

our

steadfast

focus

on

the

long

term.

Our

relationships

with

our

employees,

management

teams,

and

investors

are

of

utmost

importance

to

us,

and

we

prioritize

building

long-term

value

with

them.

Our

business

operates

with

a

similar

view

toward

the

future,

and

we

strive

to

achieve

our

goals

with

a

strong

emphasis

on

forward-thinking

strategies

to

ensure

that

our

clients

have

the

support

they

deserve

to

sustain

a

long-term

perspective.

Most

importantly,

we

never

take

our

customer's

trust

and

confidence

for

granted.

Instead,

we

dedicate

ourselves

daily

to

merit

it.

A

year

ago,

persistent

inflation

began

to

broaden

beyond

the

initial

pandemic-driven

dislocations,

and

signs

of

labor

demand

began

to

exceed

labor

supply.

Elevated

wage

growth,

sticky

inflation,

and

short-term

inflation

expectations

reinforced

each

other

in

a

feedback

loop

that

caused

angst

among

investors

and

the

Federal

Reserve

(“Fed”).

As

such,

one

of

the

key

macroeconomic

quandaries

during

the

reporting

period

was

whether

the

Fed

could

reduce

sticky

inflation

while

balancing

the

risk

of

raising

rates

too

high,

which

would

increase

the

probability

of

a

recession,

against

the

risk

of

raising

rates

too

little,

increasing

the

likelihood

of

inflation

turning

higher.

Much

like

a

chess

match

where

the

initial

moves

can

set

the

tone

for

the

initial

gambit,

the

capital

markets

witnessed

a

defining

series

of

events

that

established

the

market’s

tone

during

the

opening

months

of

the

reporting

period.

Market

sentiment

was

dire

at

the

start

of

the

reporting

period,

as

both

fixed

income

and

equities

declined

in

2022,

with

the

traditional

60%

stock/40%

bond

portfolio

not

providing

its

usual

diversification

benefit

for

investors.

Further

compounding

investor

angst

was

the

pace

of

the

Fed’s

interest

rate

hiking

cycle,

which

was

the

fastest

rate

hiking

cycle

in

over

40

years,

stoking

fears

among

investors

that

an

economic

downturn

and

a

more

punitive

repricing

of

risk

assets

was

likely

on

the

horizon.

The

initial

phase

of

the

reporting

period

had

most

economists

calling

for

a

recession.

As

such,

sentiment

among

professional

investors

was

particularly

poor,

as

measured

by

the

CBOE

U.S.

equity

put-call

ratio.

Investor

sentiment,

however,

has

an

uncanny

way

of

proving

contrarian

at

extremes.

When

stretched

too

far

in

one

direction,

even

an

indication

of

positive

news

can

help

propel

investment

returns

forward,

which

is

precisely

what

we

witnessed

during

most

of

the

reporting

period.

The

reporting

period

unfolded

as

a

masterclass

that

presented

an

extraordinary

tapestry

of

economic

contradictions,

weaving

together

threads

of

divergent

economic

trends

and

unexpected

economic

developments.

Against

this

backdrop,

the

U.S.

economy

remained

resilient

during

the

reporting

period

despite

a

mild

slowdown

in

employment

and

tighter

credit

conditions.

For

example,

annualized

U.S.

gross

domestic

product

(“GDP”)

grew

2.2%

in

the

first

quarter

of

2023,

modestly

increased

by

an

annualized

2.1%

rate

in

the

second

quarter,

and

registered

a

blistering

4.9%

annualized

growth

rate

for

the

third

quarter

of

2023.

Better-than-expected

economic

data

throughout

most

of

the

reporting

period

indicated

the

U.S.

economy

remained

resilient.

The

underlying

resilience

led

many

economists

to

upgrade

their

outlooks,

pushing

off

their

recession

forecasts

from

the

first

half

of

2023

to

the

latter

half

of

2023

and

even

into

early

2024.

Further,

the

minutes

from

the

July

Federal

Open

Market

Committee

(“FOMC”)

meeting

struck

a

similar

chord,

as

the

Committee

noted:

"The

economy

2

-

October

31,

2023

-

Nationwide

Mutual

Funds

had

been

showing

considerable

momentum."

Simultaneously,

the

FOMC

stressed

that

"inflation

remained

unacceptably

high"

and

appeared

resolute

in

holding

its

benchmark

rate

higher

for

longer

to

ensure

inflation

is

sustainably

brought

down

toward

its

2%

objective.

The

participants

also

cited

upside

risks

to

inflation

that,

if

realized,

would

necessitate

further

policy

tightening.

With

that

said,

after

aggressively

hiking

rates

since

2022,

Chair

Powell

signaled

at

the

Jackson

Hole

Symposium

that

policy

has

likely

shifted

to

a

phase

where

policymakers

are

sensitive

to

the

risk

of

overtightening.

Powell

mentioned

the

Fed

would

proceed

carefully

on

whether

to

hike

again

at

the

September

FOMC

meeting.

Consequently,

at

the

September

FOMC

meeting,

the

Fed

did

not

raise

the

federal

funds

rate

but

left

the

possibility

open

for

another

rate

hike

before

the

end

of

the

year.

The

persistently

tight

labor

market

propelled

consumer

spending

and

has

been

one

of

the

major

bullish

talking

points

during

the

reporting

period.

For

example,

all

three

retail

sales

reports

for

the

third

quarter

of

2023

were

above

estimates,

suggesting

that

real

GDP

growth

remained

resilient,

helping

to

support

the

bullish

sentiment

that

the

economy

might

extend

the

expansion

through

year-end.

Yet,

as

the

reporting

period

entered

the

latter

half,

many

investors

pointed

to

the

cumulative

impact

of

Fed

tightening,

tighter

bank

lending

standards,

weakening

Jobs

Openings

and

Labor

Turnover

Summary

(“JOLTS”),

waning

consumer

confidence,

and

tepid

corporate

revenue

growth

as

potential

headwinds

for

the

economy.

The

reporting

period

was

a

complex

interplay

of

promising

economic

trends

and

lingering

economic

headwinds,

giving

the

bears

and

bulls

ample

data

points

to

argue

their

respective

viewpoints.

Despite

the

Federal

Reserve’s

quest

to

moderate

economic

growth

and

quell

inflation,

job

growth

remained

relatively

healthy,

and

the

elusive

soft

landing

–

a

derailing

of

inflation

without

a

significant

spike

in

unemployment

–

caused

the

Fed

to

upgrade

their

forecasts

from

a

recession

to

a

mild

slowdown

by

year-end.

During

the

reporting

period,

the

equity

markets

pushed

through

various

economic

challenges.

If

an

investor

were

to

rely

on

headlines

to

assess

the

market,

they

might

have

felt

that

2023

was

as

disheartening

as

2022.

Several

U.S.

banks

failed,

there

was

an

increase

in

anxiety

due

to

geopolitical

risks,

and

investors

were

consistently

worried

about

sticky

inflation,

among

other

things.

Yet,

despite

the

tumultuous

headlines

and

horrid

market

backdrop

of

2022,

the

S&P

500

®

Index

(S&P

500)

started

the

period

with

a

modest

cumulative

return

of

6.86%

between

November

and

January

2023.

Indeed,

markets

began

2023

with

decent

gains

in

January,

primarily

driven

by

a

continued

decline

in

inflation

coupled

with

surprisingly

resilient

economic

data,

notably

the

labor

market.

The

notable

shift

in

investor

sentiment

during

the

first

half

of

the

reporting

period,

coupled

with

the

resilient

economic

data,

spurred

investors'

hopes

that

the

Fed

might

be

able

to

deliver

an

economic

soft

landing,

whereby

the

economy

slows

but

avoids

a

painful

recession

in

conjunction

with

inflation

falling

close

to

the

Fed’s

target

rate

of

2%.

During

the

first

half

of

the

reporting

period,

the

narrative

revolved

around

the

“Magnificent

Seven,”

seven

large-cap

Technology

and

Communication

Services

stocks

responsible

for

most

of

the

S&P

500’s

advance

during

the

reporting

period.

Indeed,

many

investors

preferred

the

group

as

the

frenzy

for

generative

artificial

intelligence,

trepidations

from

the

regional

baking

crisis,

and

tighter

financial

conditions

had

investors

chasing

companies

with

higher-quality

balance

sheets.

Mega-cap

tech

stocks

were

the

primary

drivers

of

strong

equity

performance

for

much

of

the

reporting

period.

However,

there

was

a

clear

shift

towards

cyclicals

in

June,

with

the

Industrials

sector

returning

11%

for

the

month,

buoyed

by

resilient

economic

data.

This

was

a

notable

trend

since,

at

the

start

of

the

reporting

period,

there

was

no

shortage

of

recession

forecasts

due

to

restrictive

monetary

policy.

As

the

reporting

period

evolved,

the

outperformance

of

the

NASDAQ

Composite

Index

(“NASDAQ”)

had

many

bears

voicing

concerns

over

the

narrow

leadership

and

poor

market

breadth

of

the

market,

as

the

Russell

2000

®

Index

was

flat

through

June,

with

a

gain

of

3.4%.

Despite

the

bear's

consternation

over

poor

market

breadth,

the

NASDAQ

gained

a

respectable

26%

return

through

June,

handily

outperforming

the

S&P

500

and

the

Russell

2000

®

Index.

Nationwide

Mutual

Funds

-

October

31,

2023

-

3

Indeed,

the

narrow

market

breadth

during

the

first

half

of

the

reporting

period

was

a

critical

debate

among

the

bears

and

bulls

about

whether

the

market

was

in

a

new

bull

market

or

simply

a

bear

market

rally.

During

the

reporting

period,

market

participants

had

varying

opinions

on

what

constitutes

a

new

bull

market.

Some

believed

that

any

20%

increase

from

a

trough

(such

as

the

October

12,

2022,

low

for

the

S&P

500)

qualified,

while

others

argued

that

the

market

must

surpass

its

prior

peak

(on

January

1,

2022,

for

the

S&P

500).

Despite

the

debate,

on

October

12,

2023,

the

S&P

500

marked

its

one-year

anniversary

from

its

bear

market

low

on

October

12,

2022,

up

more

than

21%.

Curiously,

the

bull

market

rally

that

began

on

October

12,

2022,

was

one

of

the

weakest

on

record,

where

the

average

first

year

has

seen

the

S&P

500

rally

by

nearly

39%,

on

average.

As

the

latter

half

of

the

reporting

period

unfolded,

the

equity

market's

narrowness

modestly

broadened.

Further,

greater

participation

was

a

welcome

sign

that

a

more

solid

fundamental

backdrop

might

be

forming

for

the

market.

Weaker

seasonality

in

August

and

September,

however,

remained

a

headwind

for

the

markets

and

dampened

investor

sentiment.

Further,

the

S&P

500’s

blended

next

twelve

months

price-to-earnings

ratio

(“NTM”)

swelled

to

over

20x

in

July

from

16x

at

the

beginning

of

the

reporting

period.

At

the

end

of

the

reporting

period,

it

settled

around

19x.

Indeed,

much

of

the

multiple

expansion

during

the

reporting

period

was

driven

not

by

earnings

growth

(the

denominator

of

the

P/E

multiple)

but

by

an

expansion

in

the

price

(the

price

of

the

S&P

500).

Despite

these

headwinds,

the

CBOE

Volatility

Index

(“VIX”),

unlike

2022,

remained

relatively

calm

during

the

reporting

period,

implying

lower

volatility.

However,

at

the

end

of

the

reporting

period,

the

VIX

broke

above

20%,

ending

a

106-day

streak

below

20%,

primarily

driven

by

interest

rate

volatility.

Heading

into

the

final

months

of

the

reporting

period,

the

bullish

sentiment

that

boosted

equities

from

the

bear

market

low

of

October

2022

began

to

deflate.

One

of

the

primary

drivers

of

the

early

market

rally

was

the

idea

that

the

Fed

would

pivot

and

lower

interest

rates

due

to

slowing

economic

growth.

As

the

reporting

period

concluded,

a

resilient

labor

market

coupled

with

better-than-expected

economic

data

pointed

toward

robust

economic

activity,

reinforcing

the

Fed's

call

for

keeping

interest

rates

"higher

for

longer."

Further,

higher

interest

rates

and

heightened

geopolitical

uncertainty

took

some

wind

out

of

the

market's

sails

toward

the

end

of

the

reporting

period.

For

example,

the

equity

risk

premium

for

the

S&P

500,

or

the

extra

return

investors

expect

for

holding

stocks

over

risk-free

government

bonds,

approached

zero

for

the

first

time

in

two

decades

during

the

reporting

period.

As

the

reporting

period

concluded,

market

participants

reduced

their

exposure

to

equities

as

sentiment

and

positing

signaled

a

more

defensive

tone.

International

markets

experienced

elevated

levels

of

volatility

as

economic

optimism

gave

way

to

geopolitical

risks

and

slowing

growth

momentum

due

to

a

sharper

deterioration

in

service

activity,

inventory

de-stocking,

weak

foreign

demand,

and

a

tightening

of

credit

conditions.

At

the

same

time,

the

continued

belief

in

disinflation

helped

to

soften

investors'

fears

that

future

rate

hikes

and

continued

low

unemployment

supported

international

corporate

profits.

As

such,

the

MSCI

EAFE

®

Index

finished

the

period

with

a

gain

of

nearly

14.4%.

Likewise,

the

MSCI

Emerging

Markets

®

Index

gained

10.8%.

The

renewed

uptick

in

interest

rates

remained

a

clear

downside

risk

for

equities,

but

the

“Magnificent

7”

helped

the

S&P

500

deliver

positive

performance

during

the

reporting

period.

Bond

investors

have

had

a

challenging

reporting

period.

The

Fed

continued

its

aggressive

pace

of

rate

hikes,

instability

in

the

banking

sector

required

government

intervention,

and

tension

over

raising

the

debt

ceiling

led

to

heightened

fears

that

the

U.S.

government

might

default.

Not

surprisingly,

the

bond

market's

volatility—

a

measure

of

the

degree

of

uncertainty

about

the

direction

of

interest

rates—soared.

As

such,

the

ICE

BofA

Move

Index

peaked

at

198

in

March

but

ended

the

reporting

period

at

126.

During

the

latter

half

of

the

reporting

period,

many

market

participants

began

to

conclude

that

the

Fed's

tightening

campaign

was

near

its

end.

Incidentally,

this

highlighted

why

markets

4

-

October

31,

2023

-

Nationwide

Mutual

Funds

remained

sensitive

to

Fed

commentary,

as

investors

shifted

from

focusing

on

rate

hikes

to

assessing

how

long

the

Fed

would

have

to

hold

rates

in

restrictive

territory.

An

important

theme

during

the

reporting

period

centered

around

real

rates.

According

to

the

Fed's

preferred

inflation

measure,

the

core

Personal

Consumption

Expenditures

("PCE")

price

index,

the

federal

funds

rate

surpassed

the

core

PCE

index

during

the

reporting

period,

implying

that

the

Fed's

policies

became

restrictive

during

the

reporting

period.

Also,

inflation-adjusted

yields,

or

real

yields,

reached

their

highest

levels

since

2008.

Toward

the

end

of

the

reporting

period,

the

central

market

story

was

the

continued

breakout

of

interest

rates.

The

market

was

not

pricing

in

more

Fed

rate

hikes

or

concerned

with

inflation

reigniting;

instead,

the

market

was

pricing

in

higher

rates

for

longer.

Moreover,

the

rate

increase

occurred

almost

entirely

in

longer-dated

maturities,

and

most

of

the

increase

occurred

entirely

in

real

(inflation-adjusted)

yields.

For

example,

on

October

19,

2023,

the

10-year

Treasury

nominal

yield

topped

5%

for

the

first

time

since

July

20,

2007.

Likewise,

the

10-year

Treasury

real

(inflation-adjusted)

yield

rose

to

2.48%,

its

highest

level

since

2008.

Paradoxically,

yields

increased

despite

the

Fed

signaling

that

they

would

likely

hold

rates

steady

for

the

remainder

of

the

year.

The

rapid

rise

in

Treasury

yields

raised

a

vigorous

debate

among

market

participants

during

the

reporting

period

about

the

underlying

drivers

behind

the

market's

repricing

of

yields.

Briefly,

market

participants

pointed

toward

resilient

economic

data,

Japan

easing

away

from

yield

curve

control,

the

outlook

for

U.S.

debt

sustainability,

and

diminished

foreign

demand

for

U.S.

Treasury

securities.

Ultimately,

higher

rates

tightened

financial

conditions

during

the

reporting

period,

and

the

normalization

in

the

shape

of

the

yield

curve,

in

conjunction

with

the

repricing

of

higher

real

yields,

created

a

headwind

for

equity

investors.

The

well-known

spread

between

the

2-year

and

10-year

Treasury

note

yields

(“2yr/10yr

curve”)

remained

inverted

during

the

reporting

period,

touching

a

low

of

-1.08%

on

July

3,

2023,

and

ending

the

reporting

period

at

-0.19%.

The

re-steepening

of

the

2-year/10-year

curve

from

July

to

the

end

of

the

reporting

period

caused

consternation

among

market

participants.

For

example,

the

spike

in

long-term

yields,

which

saw

the

30-year

fixed-rate

mortgage

hit

its

highest

level

since

June

2000,

exemplified

the

turbulence

investors

faced

in

the

bond

market.

The

“de-inverting”

of

the

yield

curve

occurred

due

to

the

abovementioned

factors.

Moreover,

since

June,

longer-term

interest

rates

advanced

faster

than

short-term

rates,

an

occurrence

known

as

a

“bear

steepener.”

Ultimately,

the

volatility

in

the

bond

market

during

the

reporting

period

was

exacerbated

by

Chair

Powell’s

comment

that

“it

remains

to

be

seen

whether

higher

yields

could

actually

substitute

for

addition

hikes,

and

the

potential

need

for

more

tightening

if

addition

evidence

of

persistent

above-trend

growth

or

tightness

in

the

labor

market

jeopardizes

progress

on

inflation.”

As

such,

the

Bloomberg

®

U.S.

Aggregate

Bond

Index

returned

0.36%

during

the

reporting

period.

Although

the

return

of

the

Bloomberg

®

U.S.

Aggregate

Bond

Index

was

lackluster,

investors

should

remember

that

historically,

bonds

generally

perform

well

during

Fed

rate

hike

pauses.

The

end

of

the

reporting

period

was

likely

challenging

for

bond

investors

as

yields

surged

and

prices,

which

move

inversely

to

yields,

decreased.

Arguably,

the

decrease

in

bond

prices

likely

caught

some

investors

by

surprise,

as

it

came

against

the

backdrop

of

the

Fed’s

decision

to

skip

a

rate

hike

at

its

September

FOMC

meeting

and

easing

inflation,

generally

factors

that

are

positive

for

bond

prices.

Lastly,

today’s

backdrop

of

higher

interest

rates

and

elevated

uncertainty

coupled

with

tighter

lending

standards

should

alert

investors

to

potential

vulnerabilities

stemming

from

rate-sensitive

balance

sheets.

Intriguingly,

considering

the

move

in

real

yields

throughout

the

reporting

period,

credit

markets

proved

resilient

despite

an

aggressive

Federal

Reserve,

ongoing

macro

uncertainty,

and

the

shadow

cast

by

the

tighter

lending

standards.

The

anticipated

credit

tightening

from

the

regional

banking

crisis

did

not

materialize

to

the

extent

many

had

expected

during

the

first

half

of

the

reporting

period;

however,

tighter

financial

conditions

became

more

pronounced

toward

the

end

of

the

reporting

period,

primarily

driven

by

the

appreciation

of

the

U.S.

dollar

and

rising

bond

yields.

The

reporting

period

was

fraught

with

risks,

underscoring

our

belief

that

a

well-designed,

Nationwide

Mutual

Funds

-

October

31,

2023

-

5

long-term

focused

investment

plan

can

help

assuage

bouts

of

market

volatility.

As

always,

our

unwavering

commitment

to

our

investors

means

we

will

always

remain

vigilant,

so

you

can

trust

us

to

guide

you

through

even

the

most

challenging

investment

environments

effectively.

Thank

you

for

your

continuing

confidence

and

trust,

as

we

will

always

remain

dedicated

to

helping

you

achieve

your

financial

goals.

Sincerely,

Kevin

T.

Jestice

President

and

Chief

Executive

Officer

Nationwide

Funds

The

following

chart

provides

returns

for

various

market

segments

for

the

annual

reporting

period

that

ended

October

31,

2023:

Index

Annual

Total

Return

(as

of

October

31,

2023)

Bloomberg

®

Emerging

Markets

USD

Aggregate

Bond

6.91%

Bloomberg

®

Municipal

Bond

2.64%

Bloomberg

®

U.S.

1-3

Year

Government/Credit

Bond

3.23%

Bloomberg

®

U.S.

10-20

Year

Treasury

Bond

-6.25%

Bloomberg

®

U.S.

Aggregate

Bond

0.36%

Bloomberg

®

U.S.

Corporate

High

Yield

6.23%

MSCI

EAFE

®

14.40%

MSCI

Emerging

Markets

®

10.80%

MSCI

World

ex

USA

®

12.07%

Russell

1000

®

Growth

18.95%

Russell

1000

®

Value

0.13%

Russell

2000

®

-8.56%

S&P

500

®

10.14%

NASDAQ

17.99%

Source:

Morningstar

6

-

Fund

Commentary

-

October

31,

2023

-

Nationwide

Destination

2025

Fund

For

the

annual

period

ended

October

31,

2023,

the

Nationwide

Destination

2025

Fund

Class

A

returned

3.92%

versus

4.78%

for

its

benchmark,

the

S&P

Target

Date

To

2025

Index.

For

broader

comparison,

the

return

for

the

Fund's

closest

Morningstar

peer

category,

Target-Date

2025

(consisting

of

210

investments

as

of

October

31,

2023),

was

4.41%

for

the

same

period.

Performance

for

the

Fund's

other

share

classes

versus

the

benchmark

is

included

in

the

Average

Annual

Total

Return

chart

in

this

report's

Fund

Performance

section.

The

Fund’s

return,

for

the

12-month

period

ended

October

31,

2023,

was

a

function

of

a

reversal

in

the

negative

market

trend

in

2022

with

a

strong

market

in

2023.

The

market

environment

during

the

reporting

period

was

one

of

lower

market

volatility,

punctuated

by

brief

periods

of

elevated

volatility.

This

was

driven

by

inflationary

pressures

and

central

banks’

responses

to

them,

geopolitical

events,

and

financial

stress

within

the

banking

sector

bringing

about

periods

of

uncertainty

in

markets.

These

periods

led

to

moments

of

risk-off

positioning

within

a

market

that

generally

expanded

during

the

period.

The

largest

three

detractors

to

Fund

returns

were

the

underlying

iShares

20+

Year

Treasury

Bond

ETF,

Nationwide

Inflation-

Protection

Securities

Fund,

and

the

underlying

Nationwide

Mid

Cap

Market

Index

Fund,

which

registered

-10.00%,

-0.54%,

-1.32%

respectively,

during

the

reporting

period.

The

Fund

still

holds

these

securities.

The

underlying

Nationwide

International

Index

Fund,

Nationwide

Multi-Cap

Portfolio,

and

the

Nationwide

U.S.

130/30

Equity

Portfolio

returned

14.95%,

7.90%,

and

7.64%

respectively,

and

were

the

largest

relative

contributors

to

the

Fund’s

returns

for

the

period.

The

Fund

still

holds

these

securities.

During

Q1

2023,

the

portfolio

management

team

added

an

allocation

across

each

of

the

Funds

in

the

suite

to

the

Nationwide

U.S.

130/30

Equity

Portfolio,

managed

by

Jacobs

Levy.

This

is

an

active

large

cap

equity

fund

in

which

the

team

has

high

conviction

due

to

the

strategy’s

unique

systematic

approach,

attractive

excess

returns,

and

differentiated

return

stream.

During

Q1

2023

the

portfolio

management

team

reduced

the

exposure

to

US

domestic

markets

and

added

exposure

to

foreign

developed

markets.

This

was

to

reduce

the

overweight

to

the

US

and

have

better

benchmark

relative

positioning.

During

Q2

2023,

the

portfolio

management

team

reduced

equity

exposure

across

the

board

and

added

exposure

to

the

Nationwide

Bond

Portfolio.

The

move

to

reduce

equities

while

simultaneously

increasing

core

bond

exposure

was

done

to

reduce

total

volatility

in

the

funds-of-funds

while

also

enhancing

protection

in

a

risk-off

scenario.

During

Q3

2023,

the

portfolio

management

team

reduced

exposure

to

the

Nationwide

Multi-Cap

Portfolio

and

added

exposure

to

the

Nationwide

Fundamental

All

Cap

Equity

Portfolio.

This

is

a

new

Fund

that

uses

low-tracking

error

strategies

to

incrementally

exceed

the

Russell

3000

®

Index

and

implements

bottom-up

stock

selection

as

its

source

of

alpha.

During

the

period,

there

were

no

liquidity

events

that

materially

impacted

performance

nor

did

the

Fund

hold

derivatives.

Adviser:

Nationwide

Fund

Advisors

Portfolio

Managers:

Christopher

C.

Graham;

Keith

P.

Robinette,

CFA;

and

Andrew

Urban,

CFA

The

Fund

is

designed

to

provide

diversification

across

a

variety

of

asset

classes,

primarily

by

investing

in

underlying

funds.

Therefore,

in

addition

to

the

expenses

of

the

Fund,

each

investor

is

indirectly

paying

a

proportionate

share

of

the

applicable

fees

and

expenses

of

its

underlying

funds.

An

investor

may

choose

to

retire

at

an

age

other

than

age

65

or

may

have

different

needs

than

a

Fund’s

allocation

model

indicates.

The

Fund

is

subject

to

different

levels

of

risk,

based

on

the

types

and

sizes

of

its

underlying

asset

class

allocations

and

its

allocation

strategy.

In

addition,

the

Fund’s

underlying

funds

may

be

subject

to

specific

investment

risks,

including,

but

not

limited

to:

stock

market

risk

(equity

securities);

default

risk

and

interest

rate

risk—if

interest

rates

go

up,

bond

prices

go

down,

and

if

interest

rates

go

down,

bond

prices

go

up

(bonds);

currency

fluctuations,

political

risks,

differences

in

accounting

and

limited

availability

of

information

(international

securities);

and

derivatives

risk

(many

derivatives

create

investment

leverage

and

are

highly

volatile).

Please

refer

to

the

most

recent

prospectus

for

a

more

detailed

explanation

of

the

Fund’s

principal

risks.

Nationwide

Destination

2025

Fund

-

October

31,

2023

-

Fund

Commentary

-

7

The

target

date

is

the

approximate

date

when

investors

plan

to

start

withdrawals.

The

Fund

offers

continuous

rebalancing

over

time

to

become

more

conservative

as

investors

approach

their

planned

retirement

date.

The

principal

value

of

the

Fund

is

not

guaranteed

at

any

time,

including

the

target

date.

Asset

allocation

is

the

process

of

spreading

assets

across

several

different

investment

styles

and

asset

classes.

The

purpose

is

to

potentially

reduce

long-term

risk

and

capture

potential

profits

across

various

asset

classes.

Asset

allocation

does

not

assure

a

profit

or

protect

against

a

loss

in

a

down

market.

There

is

no

assurance

that

the

investment

objective

of

the

Fund

(or

that

of

any

underlying

fund)

will

be

achieved

or

that

a

diversified

portfolio

will

produce

better

results

than

a

non-diversified

portfolio.

Diversification

does

not

guarantee

returns

or

insulate

an

investor

from

potential

losses,

including

the

possible

loss

of

principal.

NFA,

the

Fund’s

investment

adviser,

makes

both

the

asset

allocation

and

underlying

fund

selection

decisions

for

the

Fund.

Nationwide

Asset

Management,

LLC

(NWAM)

provides

asset

allocation

consulting

services

to

NFA.

In

addition,

NWAM

serves

as

the

subadviser

to

certain

other

Nationwide

Funds.

NWAM

is

a

registered

investment

adviser

and

wholly

owned

subsidiary

of

Nationwide

Mutual

Insurance

Company,

and

therefore

is

affiliated

with

NFA.

Russell

Investment

Group

is

the

source

and

owner

of

the

trademarks,

service

marks

and

copyrights

related

to

the

Russell

Indexes.

The

Fund

is

not

sponsored,

endorsed,

or

promoted

by

Russell,

and

Russell

bears

no

liability

with

respect

to

any

such

funds

or

securities

or

any

index

on

which

such

funds

or

securities

are

based.

Russell

®

is

a

trademark

of

Russell

Investment

Group.

S&P

Indexes

are

trademarks

of

Standard

&

Poor’s

and

have

been

licensed

for

use

by

Nationwide

Fund

Advisors.

The

Products

are

not

sponsored,

endorsed,

sold

or

promoted

by

Standard

&

Poor’s

and

Standard

&

Poor’s

does

not

make

any

representation

regarding

the

advisability

of

investing

in

the

Product.

A

description

of

the

benchmarks

can

be

found

on

the

Market

Index

Definitions

page

at

the

back

of

this

book.

Asset

Allocation

1

Fixed

Income

Funds

50.0%

Equity

Funds

37.5%

Money

Market

Fund

7.2%

Alternative

Assets

5.3%

Liabilities

in

excess

of

other

assets

†

(0.0)%

100.0%

Top

Holdings

2

Nationwide

Bond

Portfolio,

Class

R6

42.2%

Nationwide

Multi-Cap

Portfolio,

Class

R6

13.9%

Nationwide

International

Index

Fund,

Class

R6

9.1%

Fidelity

Investments

Money

Market

Government

Portfolio

-

Institutional

Class

7.2%

Nationwide

U.S.

130/30

Equity

Portfolio,

Class

R6

6.3%

Nationwide

Inflation-Protected

Securities

Fund,

Class

R6

5.8%

Nationwide

Amundi

Strategic

Income

Fund,

Class

R6

5.3%

Nationwide

Fundamental

All

Cap

Equity

Portfolio,

Class

R6

3.4%

iShares

Core

MSCI

Emerging

Markets

ETF

2.7%

iShares

20+

Year

Treasury

Bond

ETF

1.9%

Other

Holdings

2.2%

100.0%

†

Amount

rounds

to

less

than

0.1%.

1

Percentages

indicated

are

based

upon

net

assets

as

of

October

31,

2023.

2

Percentages

indicated

are

based

upon

total

investments

as

of

October

31,

2023.

8

-

Fund

Commentary

-

October

31,

2023

-

Nationwide

Destination

2025

Fund

Average

Annual

Total

Return

(For

periods

ended

October

31,

2023)

1

Yr.

5

Yr.

10

yr.

or

Inception

Date

of

Inception

Class

A

w/o

SC

1

3.92%

3.33%

3.95%

8/29/2007

w/SC

2

(2.02)%

2.11%

3.33%

Class

R

3,4

3.62%

3.04%

3.65%

8/29/2007

Class

R6

4,5

4.45%

3.81%

4.43%

8/29/2007

Institutional

Service

Class

4

4.15%

3.56%

4.17%

8/29/2007

S&P

Target

Date

To

2025

Index

4.78%

4.20%

4.52%

All

figures

showing

the

effect

of

a

sales

charge

(SC)

reflect

the

maximum

charge

possible,

because

it

has

the

most

significant

effect

on

the

performance

data.

Expense

Ratios

Expense

Ratio

^

Class

A

0.92%

Class

R

1.17%

Class

R6

0.42%

Institutional

Service

Class

0.67%

^

Current

effective

prospectus

dated

February

28,

2023.

The

expense

ratio

also

includes

indirect

underlying

fund

expenses.

Please

see

the

Fund’s

most

recent

prospectus

for

details.

Please

refer

to

the

Financial

Highlights

for

each

respective

share

class’

actual

results.

1

These

returns

do

not

reflect

the

effects

of

SCs.

2

A

5.75%

front-end

sales

charge

was

deducted.

3

Effective

March

3,

2014,

Class

R2

Shares

were

renamed

Class

R

Shares.

4

Not

subject

to

any

SCs.

5

Effective

February

28,

2017,

Institutional

Class

Shares

were

renamed

Class

R6

Shares.

Nationwide

Destination

2025

Fund

-

October

31,

2023

-

Fund

Commentary

-

9