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401(k) employee contribution retirement plan

The following material is reproduced as web pages from the printed guidebook.
For informational purposes only.
Please request and refer to the complete printed guidebook and supporting materials

More information is available from the Best of America website.

MORNINGSTAR INVESTMENT PROFILE PAGE USERS GUIDE



Morningstar Investment Style Box

The style box reveals a funds investment strategy. For equity funds, the vertical axis shows the market capitalization of the stocks owned and the horizontal axis shows investment style (value, blend or growth). For fixed-income funds, the vertical axis shows the average credit quality of the bonds owned, and the horizontal axis shows interest rate sensitivity as measured by a bonds duration (short, intermediate or long).



Morningstar Ratingtm

For each fund with at least a three-year history, Momingstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a funds monthly performance (including-The effects-of-sales charges, loans, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive five stars, the next 22.5% receive four stars, the next 35% receive three stars, the next 22.5% receive two stars, and the bottom 10% receive one star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variation in the distribution percentages).



The Morningstar Ratingtm show is for the share class displayed in the fund name.



The Overall Momingstar Rating for a fund is derived from a weighted average of the performance figures associated with its three, five and ten-year (if applicable) Morningstar Rating metrics.



Sectors

As another tool for evaluating risk, Morningstar tracks the holdings of funds based on a standard set of sector categories. This chart lists the percentage of assets in key sectors as of a stated date.



Performance

The performance data provided represents past performance and should not be considered indicative of future results. Principal value and investment return will fluctuate so that an investors units, when redeemed, may bo worth more or less than the original investment. Fund portfolio statistics are current as of the last date of the period reported-and-are subject to change.



Total return reflects performance without adjusting for program charges, a contingent deferred sales charge, any applicable variable annuity fees, the effects of taxation, but is adjusted to reflect all actual ongoing fund expenses and assumes reinvestment of dividends and capital gains. If adjusted, additional charges would reduce performance shown.



The performance shown is for the share class displayed in the fund name. For A share classes, the front-end sales charge is waived for qualified plans.



Morningstar Percentile Ranking

This is the funds total return percentile rank relative to funds that have the same Morningstar Category in Morningstars Mutual Fund universe.

The highest (or most favorable) percentile rank is 1 and the lowest or least favorable percentile rank is 100. The top-performing fund in a category will always receive a rank of 1.



Morningstar Return

This statistic is a measurement of a funds excess return over a risk-free rate (the return of the 90 day Treasury bill), after adjusting for all applicable loads and sales charges. In each Momingstar Category, the top 10% of funds earn a High Morningstar Return, the next 22.5% Above Average, the middle 35% Average, the next 22.5% Below Average and the bottom 10% Low. Morningstar Return is measured for up to three time periods (three, five and ten years). These separate measures are then weighted and not averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated.



Morningstar Risk

This statistic evaluates the variations in a funds monthly return, with an emphasis on downside variations. In each Momingstar Category, the 10% of the funds with the lowest measured risk are described as Low Risk, the next 22.5% Below Average, the middle 35% Average, the next 22.5% Above Average and the top 10% High. Morningstar Risk Is measured for up to three time periods (three, five and ten years). These separate measures are then weighted and averaged to produce an overall measure for the fund. Funds with less than three years of performance history are not rated.



Index Performance

Market indices have been provided for comparison purposes only; they- are unmanaged and no fees or expenses have been reflected. The benchmark index shown for each fund is intended to represent the index that most closely reflects the composition of the fund. Individuals cannot invest directly in an index.



Portfolio Information and Portfolio Profile

Expense Ratio represents the percentage of fund assets paid for operating expenses and management fees, including 12b-1 fees, administrative fees and all other asset-based costs incurred by the fund, except brokerage costs.



Annual Turnover Ratio is a measure of the trading activity in a funds investment portfolio; in essence, how often securities are bought and sold by a fund. A turnover ratio of 100% means that, on average, all of a funds portfolio holdings are bought and sold once a year.



Portfolio Characteristics

Price/Earnings Ratio: The price of a share of stock divided by earnings per share.



Price/Book Ratio: The price of a share of stock divided by book value per share.



Four-year Earnings Growth Percentage: A measure of the trailing annualized earnings growth record of the stocks in the portfolio.



Three-year Standard Deviation: A statistical measure of the volatility of the funds returns.



Average Effective Maturity: A weighted average of all the maturities of the bonds in the portfolio, computed by weighting each maturity date by the market value of the security.



Average Effective Duration: A measure of the funds interest rate sensitivity. The longer a funds duration, the more sensitive the fund is to shifts in interest rates.



Average Credit Quality: An average of each bonds credit rating, adjusted for its relative weighting in the portfolio.



Median Market Capitalization (Med Mkt Cap): Provides a measure of the size of the companies in which the fund invests.



Beta: A measure of the funds sensitivity to market movements. A portfolio with a beta greater than one is more volatile than the market, and a portfolio with a beta less than one is less volatile than the market.



Sharpe Ratio: Uses standard deviation and excess return to determine reward per unit of risk.



Investment Risk

Government Bond Funds: While these funds invest primarily in securities of the U.S. Government and its agencies, the funds value is not guaranteed by these entities.

High-yield Bond Funds: High yield funds are typically subject to greater credit risk and price volatility than funds that invest in higher quality and higher rated debt securities.

Intemational/Emerging Markets Funds: International investing involves special additional risks not associated with investing solely in the U.S., such as currency fluctuation, political instability, foreign regulations, risk, differences in accounting, and the limited availability of information--all of which are magnified in emerging markets.

Money Market Funds: An investment in a money market fund is not insured or guaranteed by the-FDIC or any other federal government agency. Although the money market fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Non-Diversified Funds: Funds that concentrate in a relatively small number of securities or a specific sector(s) and may be subject to

greater volatility than a more diversified investment and should be considered a vehicle for diversification and not a balanced investment program.

Real Estate Funds: Investing in real estate funds entails the risks of the real estate business generally, including sensitivity to economic and business cycles, changing demographic patterns and government actions.

Small Company Funds: Small company funds have higher risks than stocks of larger, more established companies and have significant short-term price volatility.





GLOSSARY OP COMMON INVESTMENT TERMS

lbbotson Broad Asset Class Definitions

International Stocks: Shares of ownership in corporations headquartered outside of the U.S.

Large-cap Stocks: Shares of ownership in large corporations.

Mid-cap Stocks: Shares of ownership in mid-sized corporations.

Small-cap Stocks: Shares of ownership in small corporations.

Bonds: IOUs issued by governments or corporations.

Cash: Short-term IOUs issued by governments, corporations or financial institutions.



Nationwide Broad Asset Class Definitions

Specialty. Securities from narrow sub-sectors of the broader market or uncommon asset classes.

Balanced: A combination of stocks, bends and cash.



Index Definitions

Barra Large Growth: Market capitalization-weighted index of the stocks in-the Standard-& Poors 500 Index having the lowest book-to-price ratios. The index consists of approximately half of the S&P 500 on a market capitalization basis.



Barra Large Value: Market capitalization-weighted index of the stocks in the Standard & Poors 500 Index having the highest book-to-price ratios. The index consists of approximately half of the S&P 500 on a market capitalization basis.



Barra Mid-Cap Growth: Market capitalization-weighted index of the stocks in the Standard & Poors Mid-Cap 400 Index having the lowest book-to-price ratios. The index consists of approximately half of the S&P 400 on a market capitalization basis.



Barra Mid-Cap Value: Market capitalization-weighted index of the stocks-in the-Standard-& Poors Mid-Cap 400 Index having the highest book-to-price ratios. The index consists of approximately half of the S&P 400 on a market capitalization basis.



Lehman Brothers Index: Composed of the Lehman Brothers Government Credit Index, the Mortgage-backed Securities Index, and the Asset-backed Securities Index. The returns we publish for the index are total returns, which include reinvestment-of dividends.



Lehman Brothers Intermediate Treasury: This index includes treasury bonds with maturates of at least one year and up to 10 years with an outstanding par value of at least $100 million. They include fixed-rate debt issues, rated investment-grade or higher by Moodys Investor

Services, Standard & Poors Corporation, or Fitch Investors Service (in that order). Treasuries include all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues. The returns we publish for the index are total returns, which include

reinvestment of dividends.



Lehman Brothers Lone-Term Treasury. Includes all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues with maturates of 10 years or longer. The returns we publish for the index are total returns, which include reinvestment of dividends.



Lehman Brothers Credit Listed for corporate bond-general and high-quality funds. This index tracks the returns of all publicly issued, fixed rate, nonconvertible, dollar-denominated, SEC-registered, investment-grade corporate debt. The returns we publish for the index are total returns, which include reinvestment of dividends.



Lehman Brothers Government/Credit: Represents a combination of the Government and Corporate Bond indices. The returns we publish for the index are total returns, which include reinvestment of dividends.



Lehman Brothers Intermediate Credit Serves as a measure of all publicly issued, nonconvertible, investment-grade corporate debts that have a maturity of one to three years. The returns we publish for the index are total returns, which include reinvestment of dividends.



Lehman Brothers Long Credit Serves as a measure of all publicly issued, nonconvertible, investment-grade corporate debts that have a maturity of 10 years or more. The returns we publish for the index are total returns, which include reinvestment of dividends.



Lehman Brothers Government Bond Index: Listed for government bond general and treasury funds. Because it tracks the returns of U.S. Treasuries, agency bonds, and one- to three-year U.S. government obligations, this index is effective for tracking portfolios holding non-mortgage government securities. The returns we publish for the index are total returns, which include reinvestment of dividends.



Lehman Brothers 1-3 year Government Bond: Comprised of both the Treasury Bond Index (all public obligations of the U.S. Treasury, excluding flower bonds and foreign-targeted issues) and the Agency Bond Index (all publicly issued debt of U.S. government agencies and quasi-federal corporations and corporate-debt guaranteed by the U.S. government). These bonds also must have maturities of one to three years. The returns we publish for the index are total returns, which include reinvestment of dividends.



MSCl EAFE ID: A free-float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada. This index consists of the following 21 developed-market country indices: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The ID portion of the name indicates that it is listed in U.S. dollars and that dividends are not reinvested.



MSCI World ID: A free-float-adjusted market capitalization index that is designed to measure global developed-market equity performance.

This index consists of the following 23 developed-market country indices: Australia, Austria, Belgium, Canada, Denmark, Finland, France,

Germany, Greece, Hong Kong, Ireland, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden,

Switzerland, the United Kingdom and the United States. The ID portion of the name indicates that it is listed in U.S. dollars and that dividends

are not reinvested.



MSCI : Measures the performance of the stock market in the following countries: Czech Republic, Hungary, Poland, Russia and Turkey. The ID portion of the name indicates that it is listed in U.S. dollars and that dividends are not reinvested.



MSCI EMF ID: A capitalization-weighted index of stocks from 26 emerging markets that only includes issues that may be traded by foreign investors. The reported returns reflect equities priced in U.S. dollars and do not include the effects of reinvested dividends. The index consists of equities from emerging markets in Argentina, Brazil, Chile, China, Columbia, the Czech Republic, Greece, Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Pakistan, Peru, Philippines, Portugal, Poland, South Africa, Sri Lanka, Taiwan Free, Turkey, Thailand and Venezuela.



MSCI Em Latin America: Formerly known as MS EMG Latin America ID, this index measures the performance of the stock market in Argentina, Brazil, Chile, Colombia, Mexico, Peru and Venezuela. The ID portion of the name indicates that it is listed in U.S. dollars, without net dividends reinvested.



MSCI Pacific Free ID: This index is a free-float-adjusted market capitalization index that is designed to measure equity market performance Ia the Pacific region. The index measures the performance of the stock market in the following countries: Australia, Hong Kong, Japan, New Zealand and Singapore. The ID portion of the name indicates that it is listed in U.S. dollars and that dividends are not reinvested.



Russell 2000 Growth: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having higher price-to-book ratios and higher forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable U.S. equity market.



Russell 2000: Consists of the smallest 2000 companies in the Russell 3000 Index, representing approximately 7% of the Russell 3000 total market capitalization. The returns we publish for the index are total returns, which include reinvestment of dividends.



Russell 2000 Value: Market-weighted total return index that measures the performance of companies within the Russell 2000 Index having lower price-to-book ratios and lower forecasted growth values. The Russell 2000 Index includes the 2000 firms from the Russell 3000 Index with the smallest market capitalizations. The Russell 3000 Index represents 98% of the investable U.S. equity market.



Salomon Brothers Government/Corporate Index 10+ Year This index includes all Government sponsored (U.S. agency and supranational securities) and Corporate bonds listed in the SSB U.S. Broad Investment-Grade (USBIG) Bond Index which have maturities of 10 years or longer. This index is designed to track the performance of bonds issued in the U.S. investment-grade bond market and maintain a high standard of pricing reliability. The returns we publish for this index are net of dividends.



Salomon Brothers 3 Month Treasury Bill Index: This index measures monthly return equivalents of yield averages that are not marked to market. It is an average of the last three three-month Treasury bill issues. Returns for this index are calculated on a monthly basis only.



Salomon Brothers Government/Corporate Index This index includes all Government sponsored (U.S. agency and supranational securities) and Corporate bonds listed in the SSB U.S. Broad Investment-Grade (USBIG) Bond Index. This index is designed to track perforrnance of bonds issued in the U.S. investment-grade bond market, and maintain a high standard of pricing reliability. The returns we publish for this index are net of dividends.



Salomon Brothers Corporate Index: This index includes bonds issued by industrial companies, utilities, and financial service companies, including those that carry back guarantees. In addition, special purpose debt-issuing subsidiaries of such corporations are included, as are subsidiaries whose primary purpose is to provide financing to customers-for the purchase-and/or Lease of the parent-companies products.



Salomon Brothers Government/Corporate Index 1-3 Year This index includes all Government sponsored (U.S. agency and supranational securities) and Corporate bonds listed in the SSB U.S. Broad Investment-Grade (USBIG) Bond Index which have maturities between 1 to 3 years. This index is designed to track performance of bonds issued in the U.S. investment-grade bond market, and maintain a high standard of pricing reliability. The returns we publish for this index are net of dividends.



Salomon Brothers Treasury/Government Sponsored Index: This index includes all Government sponsored (U.S. agency and supranational securities) and Treasury bonds listed in the SSB U.S. Broad Investment-Grade (USBIG) Bond Index. This index is designed to track performance of bonds issued in the U.S. investment-grade bond market, and maintain a high standard of pricing reliability. The returns we publish for this index are net of dividends.



Salomon Brothers Treasury/Government Sponsored Index 1-3 Year This index includes all Government sponsored (U.S. agency and supranational securities) and Treasury bonds listed in the SSB U.S. Broad Investment-Grade (USBIG) Bond Index which have maturities between 1 to 3 years. This index is designed to track performance of bonds issued in the U.S.- investment-grade bond market, and maintain a high standard of pricing reliability. The returns we publish for this index are net of dividends.



Salomon Brothers Treasury/Government Index Sponsored 10 Year Plus: This index includes all Government sponsored (U.S. agency and supranational securities) and Treasury bonds listed in the SSB U.S. Broad Investment-Grade (USBIG) Bond Index which have maturities of 10 years or longer. This index is designed to track performance of bonds issued in the U.S. investment-grade bond market, and maintain a high standard of pricing reliability. The returns we publish for this index are net of dividends.



SALOMON Brothers Emerging Markets Mutual Fund (EMMF) Debt Index: This index covers thirteen government-bond markets: Argentina, Brazil, Bulgaria, Ecuador, Mexico, Morocco, Nigeria, Panama, Peru, Philippines, Poland, Russia, Venezuela. For inclusion in this index, a market must total at least (U.S.) $500 million. The EMMF Index is constructed to conform to mutual fund diversification regulations. Under these rules, half of a portfolio must be invested in individual credits in amounts of less than 5% of the total portfolio-size. The remaining half may be invested in positions not greater than 25%. Since there are not enough countries to conform to these regulations, the index is rounded out with non-Brady Bond Index countries of Morocco, Russia and Ecuador.



S&P 400 Index: Includes approximately 10% of the capitalization of U.S. equity securities. These are comprised of stocks in the middle capitalization range. At the original time of screening, this was a $200 million to $5 billion market value range. Any mid-cap stocks already included in the S&P 500 are excluded from this index, which started on December 31, 1990. The level of the index reflects the total market value of all 400 component stocks relative to this date. A level of 135, for example, indicates that the market value of the index portfolio has risen 35% from December 31, 1990. The S&P 400 figure is presented as a total return.



S&P 500 Index: A market capitalization-weighted index of 500 widely held stocks often used as a proxy for the stock market. It measures the movement of the largest issues. Standard and Poors chooses the member companies for the 500 based-on-market size, liquidity and industry group representation. Included are the stocks of industrial, financial, utility and transportation companies. Since mid-1989, this composition has been more flexible and the number of issues in each sector has varied. The returns presented in Principia Pro for the S&P 500 are total returns, including the reinvestment of dividends each month.



S&P 600: This small-cap index consists of 600 domestic stocks chosen for market size, liquidity and industry group representation. It is a

market-weighted index (stock price x shares outstanding), with each stock affecting the index in proportion to its market value. The S&P 600

figure is presented as a total return.



Disclosure Statement

This material is authorized for distribution to prospective investors only when preceded or accompanied by a current plan performance summary and fund prospectus(es) and/or informational brochures containing more complete information. These can be obtained from your registered representative and should be read carefully before investing or sending money& This material is designed to provide you information about the investment options available in your employer sponsored retirement plan. The returns shown on the plan performance summary that is required to accompany this fund profile, reflect applicable asset management fees charged by Nationwide Life Insurance Company or Nationwide Trust Company, FSB. The performance summary does not reflect Trust fees, termination charges, plan record keeping fees or participant fees specific to your employers plan-Had the fees been applied, the returns effect on your plan performance would have been lower.



Please refer to the Performance section of this Fund Disclosure Statement for information specific to the performance shown on the profile.



All fund profile performance related information reflects only fund level expenses. It does not reflect any plan charges or variable annuity charges or effects of taxation, which if reflected would reduce the returns shown.




© 2004 Nationwide Financial Services, Inc.