Download Nationwide® Investor Destinations Conservative Fund

PORTFOLIO MANAGEMENT
Nationwide® Investor Destinations
Conservative Fund
Thomas R. Hickey, Jr., Head of Asset Strategies
(Fund tenure since 2007)
Benjamin A. Richer, Director, Asset Strategies
(Fund tenure since 2014)
SVC.:
INVESTMENT OBJECTIVE
The Fund seeks to maximize total investment
return for a conservative level of risk.
UNDERLYING PORTFOLIO
MANAGEMENT SUBADVISERS
NDCCX
INST.:
GIMCX
CLASS R:
GCFRX
SERVICE CLASS:
NDCSX
INST.
Fund Highlights
PORTFOLIO CHARACTERISTICS
$550.3 M
Total number of holdings
CLASS C:
Unless otherwise noted, all information is as of December 31, 2015, for Class Inst shares. Performance, holdings, sectors, ratings, and
allocations are subject to change without notice. Institutional, Institutional Service and Class R shares (if applicable) are available only
to certain investors. Institutional Class shares are not available to retail accounts or to broker-dealer or advisory fee-based wrap
programs.
BlackRock Investment Management, LLC
Federated Investment Management Co.
Goldman Sachs Asset Management, L.P.
HighMark Capital Management, Inc.
Nationwide Asset Management, LLC
Thompson, Siegel & Walmsley, LLC
Ziegler Capital Management, LLC
Total net assets (all classes)
NDCAX
NWWLX
CLASS A:
12
Sharpe ratio (rolling 36 mths.)
1.0
Standard deviation (rolling 36
2.6
20% Stocks/78% Bonds/2% Shortterm Investments: Up to 13 asset
classes including domestic and
international stocks, Real Estate
Investment Trusts (REITs), Treasury
Inflation Protected Securities (TIPS),
and high-yield bonds.
Underlying index funds: This asset
allocation Fund primarily invests in
passively managed index funds.
Well-known fund managers: The
underlying funds are subadvised by a
variety of prominent institutional
money managers.
mths.)
Alpha (rolling 36 mths.)
2.0
Beta (rolling 36 mths.)
0.5
R-Squared
31.9
EXPENSE RATIOS
Share Class
Gross annual Fund
operating expenses
Net annual Fund
operating expenses
Class A
0.83%
0.83%
Class C
1.55%
1.55%
0.48%
0.48%
Institutional
Class R
1.13%
1.13%
Instl. Svc.
0.56%
0.56%
Service
0.88%
0.88%
The expense ratios shown are as of October 31, 2014.
Expenses include underlying fund expenses. Please see
the Fund's most recent prospectus for more details.
MINIMUM INITIAL INVESTMENT
Class R
Classes A, C
$0
$2,000
Target Allocations
U.S. large-cap stocks
U.S. mid-cap stocks
U.S. small-cap stocks
International stocks
U.S. intermediate term bonds
U.S. short-term bonds
Nationwide Contract (fixed
interest contract)
Cash
Alternatives1
9%
3%
1%
4%
32%
12%
24%
0%
15%
Top Holdings
% of Portfolio
BENCHMARK 2
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide
Nationwide Conservative
Top holdings include a 24% allocation to the Nationwide Contract.
DEFINITIONS
Calendar Year Returns
Institutional Svc. Class
$50,000
Service Class
$50,000
Institutional Class
$1,000,000
MORNINGSTAR CATEGORY
Conservative Allocation
BENCHMARK 1
Barclays US Agg Bond TR USD
Average annual total returns are the annual
compounded returns that would have
produced the cumulative total return if Fund
performance had been constant during the
given period.
Sharpe ratio measures excess return per unit of
risk (standard deviation). A higher Sharpe ratio
suggests better risk-adjusted performance.
Standard deviation measures performance
fluctuation, may not be indicative of future risk,
and is not a predictor of returns.
Alpha represents the difference between a
fund's actual returns and its expected
performance, given its level of risk as measured
by beta. A positive alpha is the added value an
active manager has contributed over the
benchmark returns.
Beta measures volatility in relation to the fund’s
benchmark. A beta of less than 1.0 indicates
lower volatility; a beta of more than 1.0, higher
volatility than the benchmark.
R-Squared measures the percentage of a fund's
movements that can be explained by
movements in a benchmark.
Bond Index Instl
HighMark Short Term Bd Instl
Portfolio Complt Instl
Inflation-Protected Secs Inst
S&P 500 Index Instl
Core Plus Bond Instl
International Index Instl
Ziegler Equity Inc Instl
Mid Cap Market Index Instl
Amundi Glbl Hi Yld Instl
27.1
12.0
8.0
6.0
5.0
4.0
4.0
4.0
3.0
2.0
30
20
10
0
-10
-20
-30
Institutional
Benchmark 1
Category
1The
2015
0.18
0.55
-2.32
2014
3.97
5.97
4.02
2013
4.24
-2.02
7.23
2012
5.59
4.21
9.40
2011
3.18
7.84
1.70
2010
6.26
6.54
10.03
2009
9.28
5.93
20.77
2008
-5.86
5.24
-18.61
2007
5.78
6.97
4.53
2006
6.61
4.33
8.16
Alternatives category may include allocations to Nationwide Inflation Protected Securities Fund, the Nationwide Portfolio
Completion Fund and the high-yield portion of Nationwide Core Plus Bond Fund. The Nationwide Portfolio Completion Fund allocation
contains alternative investments including high-yield bonds, foreign securities, real estate investment trusts, derivatives and
commodities. These investments may be more volatile in price, more difficult to price and less liquid. Derivatives also 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.
BENCHMARK DEFINITION
Barclays US Agg Bond TR USD
Growth of 10k
The index measures the performance of
investment grade, U.S. dollar-denominated,
fixed-rate taxable bond market, including
Treasuries, government-related and corporate
securities, MBS (agency fixed-rate and hybrid
ARM passthroughs), ABS, and CMBS. It rolls up
into other Barclays flagship indices, such as the
multi-currency Global Aggregate Index and the
U.S. Universal Index, which includes high yield
and emerging markets debt.
Market index performance is provided by a
third-party source Nationwide Funds Group
deems to be reliable (Morningstar). Indexes are
unmanaged and have been provided for
comparison purposes only. No fees or expenses
have been reflected. Individuals cannot invest
directly in an index.
The holdings are provided for informational
purposes and should not be deemed as a
recommendation to buy or sell the securities.
PRINCIPAL STRATEGIES & RISKS
The Nationwide Investor Destinations Funds
are designed to provide diversification across a
variety of asset classes, primarily by investing in
underlying funds. Therefore, in addition to the
expenses of the Nationwide Investor
Destinations Funds, each investor is indirectly
paying a proportionate share of the applicable
fees and expenses of the underlying funds.
Each Fund is subject to different levels of risk,
based on the types and sizes of its underlying
asset class allocations and its allocation
strategy. In addition, each Fund’s underlying
funds may be subject to specific investment
risks, 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
each Fund’s principal risks.
Each Fund may invest in the Nationwide
Contract, which is a fixed interest contract
issued and guaranteed by Nationwide Life
Insurance Company (Nationwide), an affiliate of
the Funds’ investment adviser, Nationwide
Fund Advisors. If Nationwide becomes unable
to meet this guarantee, a Fund that invests in
the Nationwide Contract may lose money from
unpaid principal or unpaid or reduced interest.
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.
There is no assurance that the investment
objective of any fund (or that of any underlying
fund) will be achieved or that a diversified
portfolio will produce better results than a
nondiversified portfolio. Diversification does
not guarantee returns or insulate an investor
from potential losses, including the possible
loss of principal.
$16k
14k
12k
10k
8k
History (12/31/2015)
Institutional
Benchmark 1
2010
$10,626
$10,654
2011
$10,965
$11,490
2012
$11,578
$11,974
2013
$12,069
$11,732
2014
$12,548
$12,431
YTD
$12,571
$12,500
Average Annual Total Returns (%) as of 12-31-2015
Total Returns (Without Sales Charges)
Share Class
QTD
YTD
1 Year
3 Year
Class A
0.57%
-0.16%
-0.16%
2.42%
SEC Standardized Returns (With Sales Charges) if applicable
Class A
-5.21%
-5.90%
-5.90%
0.41%
Class C
-0.59%
-1.84%
-1.84%
1.69%
Institutional
0.66%
0.18%
0.18%
2.78%
Class R
0.49%
-0.50%
-0.50%
2.12%
Institutional Svc.
0.64%
0.08%
0.08%
2.61%
Service
0.55%
-0.23%
-0.23%
2.37%
5 Year
3.10%
10 Year
3.53%
Inception
Date
03/30/2000
1.88%
2.37%
3.42%
2.76%
3.21%
3.01%
2.92%
2.80%
3.85%
3.21%
3.59%
3.43%
03/30/2000
03/01/2001
12/29/2004
10/01/2003
03/03/2014
03/30/2000
Benchmark 1
Benchmark 2
3.25%
3.79%
4.51%
4.38%
.
-0.57%
0.82%
0.55%
0.67%
0.55%
0.67%
1.44%
3.32%
.
CURRENT PERFORMANCE MAY BE LOWER OR HIGHER THAN THE PAST PERFORMANCE SHOWN,
WHICH DOES NOT GUARANTEE FUTURE RESULTS. Share price, principal value, and return will vary,
and you may have a gain or a loss when you sell your shares. To obtain the most recent month-end
performance, go to nationwide.com/mutualfunds or call 1-800-848-0920.
Class A shares have up to a 5.75% front-end sales charge and a 0.25% 12b-1 fee. Investors may be able
to reduce or eliminate front-end sales charges on Class A shares, based on investment size. Class C
shares have a 1.00% contingent deferred sales charge (CDSC) and a 1.00% 12b-1 fee. Institutional and
Institutional Service Class shares have no sales charge and no 12b-1 fee.
Class R Shares have no sales charge and a 0.50% 12b-1 fee. Service Class Shares have no sales charges
and a 0.25% 12b-1 fee. Performance returns assume the reinvestment of all distributions.
Returns for periods less than one year are not annualized. Total returns reflect contractual expense
waivers for certain periods since inception, without which returns would have been lower.
Call 1-800-848-0920 to request a summary prospectus and/or a prospectus, or download prospectuses
at nationwide.com/mutualfunds. These prospectuses outline investment objectives, risks, fees, charges
and expenses and other information that you should read and consider carefully before investing.
Nationwide Conservative Benchmark (Benchmark 2): 40% Barclays U.S. Aggregate Bond Index, 35% Barclays 1-3 Year Gov’t/ Credit Bond
Index, 15% Russell 3000 Index, 5% Citigroup 3-Month T-Bill Index, 5% MSCI EAFE Index.
Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell®
is a trademark of Russell Investment Group.
Nationwide Asset Management, LLC (NWAM) provides asset allocation consulting services to Nationwide Fund Advisors (NFA), the Funds’
investment adviser. NWAM is a registered investment adviser and wholly owned subsidiary of Nationwide Mutual Insurance Company, and
therefore is affiliated with NFA. NFA makes both the asset allocation and underlying fund selection decisions for the Funds. In addition,
NWAM serves as the subadviser to certain other Nationwide Funds.
Nationwide Funds distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, King of Prussia, Pa. NFD is not affiliated with
any subadviser contracted by Nationwide Fund Advisors (NFA) with the exception of Nationwide Asset Management, LLC (NWAM). NFD
is not an affiliate of Morningstar, Inc.
Nationwide and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2016
© 2016 Morningstar. All Rights Reserved. The
information contained herein: (1) is proprietary
to Morningstar and/or its content providers; (2)
may not be copied or distributed; and (3) is not
warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers
are responsible for any damages or losses
arising from any use of this information. Past
performance is no guarantee of future results.
· Not a deposit · Not FDIC or NCUSIF Insured · Not guaranteed by the institution · Not insured by any federal government agency · May lose value
Shareholder services and 24-hour account access: 1-800-848-0920
National Sales Desk: 1-877-877-5083 or nationwide.com/mutualfunds
MFM-1459AO.5 1/16 © 2016