June 22, 2020
EX-16.12.a
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Xxxxxxxx Ronon Xxxxxxx & Xxxxx, LLP
0000 Xxxxxx Xxxxxx
Xxxxx 0000
Xxxxxxxxxxxx, XX 00000
Telephone 000.000.0000
Fax 000.000.0000
xxx.xxxxxxxx.xxx
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June 22, 2020
Board of Trustees, Nationwide Mutual Funds
One Nationwide Plaza
Mail Code 5-02-210
Xxxxxxxx, Xxxx 00000
Re:
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Agreement and Plan of Reorganization (“Plan”) made as of May 4, 2020, by Nationwide Mutual Funds (the “Trust”), a statutory trust created under the
laws of the State of Delaware on behalf of two of its series, Nationwide Destination Retirement Fund (the “Acquiring Fund”) and Nationwide Destination 2020 Fund (the “Target Fund”)
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Ladies and Gentlemen:
You have requested our opinion as to certain federal income tax consequences of the reorganization (hereinafter referred to as the “Reorganization”), which will consist of: (i) the acquisition by the
Acquiring Fund of substantially all of the Assets of the Target Fund in exchange solely for shares of beneficial interest, without par value, of the corresponding class of shares of the Acquiring Fund listed in the table set forth in Exhibit A
hereto; (ii) the assumption by the Acquiring Fund of all of the Target Fund’s Liabilities; (iii) the distribution of each class of the Acquiring Fund’s shares to the shareholders of its corresponding class of shares of the Target Fund, according to
their respective interests, in complete liquidation of the Target Fund; and (iv) the liquidation and dissolution of the Target Fund as soon as practicable after the Closing, all upon and subject to the terms and conditions of the Plan. Capitalized
terms not otherwise defined herein shall have the meanings assigned to them in the Plan.
In rendering our opinion, we have reviewed and relied upon: (a) a copy of the executed Plan, dated as of May 4, 2020 ; (b) the Prospectus/Information Statement provided to shareholders of the Target Fund
dated May 4, 2020; (c) certain representations concerning the Reorganization made to us by the Acquiring Fund and the Target Fund in a letter dated June 22, 2020 (the “Representation Letter”); (d) all other documents, financial and other reports and
Philadelphia, PA • Harrisburg, PA • Malvern, PA • Cherry Hill, NJ • Wilmington, DE • Washington, DC • New York, NY • Chicago, IL
A Pennsylvania Limited Liability Partnership
![](https://www.sec.gov/Archives/edgar/data/1048702/000168035920000397/image0.jpg)
Board of Trustees, Nationwide Mutual Funds
June 22, 2020
Page 2
corporate minutes we deemed relevant or appropriate; and (e) such statutes, regulations, rulings and decisions as we deemed material in rendering this opinion.
For purposes of this opinion, we have assumed that the Target Fund on the Closing date of the Reorganization satisfies, and immediately following the Closing date of the Reorganization, the Acquiring
Fund will continue to satisfy, the requirements of Subchapter M of the Code, for qualification as regulated investment companies.
Based on the foregoing, and provided the Reorganization is carried out in accordance with the applicable laws of the State of Delaware, the terms of the Plan and the statements in the Representation
Letter for the Target Fund and the Acquiring Fund, it is our opinion that for federal income tax purposes:
1. The acquisition by the Acquiring Fund of substantially all of the assets of the Target Fund, as provided for in the Plan, in exchange solely for
the Acquiring Fund shares and the assumption by the Acquiring Fund of all of the Liabilities of the Target Fund followed by the distribution by the Target Fund to its shareholders of the Acquiring Fund shares in complete liquidation of the Target
Fund will qualify as a reorganization within the meaning of Section 368(a)(1) of the Code, and the Target Fund and the Acquiring Fund each will be a “party to the reorganization” within the meaning of Section 368(b) of the Code.
2. No gain or loss will be recognized by the Target Fund upon the transfer of substantially all of its assets to, and the assumption of its
Liabilities by, the Acquiring Fund in exchange solely for the voting shares of the Acquiring Fund pursuant to Section 361(a) and Section 357(a) of the Code.
3. No gain or loss will be recognized by the Acquiring Fund upon the receipt by it of substantially all of the Assets of the Target Fund in exchange
solely for the assumption of the Liabilities and issuance of the Acquiring Fund shares pursuant to Section 1032(a) of the Code.
4. No gain or loss will be recognized by the Target Fund upon the distribution of the Acquiring Fund shares by the Target Fund to its shareholders in
complete liquidation of the Target Fund pursuant to Section 361(c)(1) of the Code.
5. The tax basis of the Assets of the Target Fund received by the Acquiring Fund will be the same as the tax basis of these Assets in the hands of
the Target Fund immediately prior to the Reorganization under Section 362(b) of the Code.
6. The holding periods of the Assets of the Target Fund received by the Acquiring Fund will include the periods during which such Assets were held by
the Target Fund under Section 1223(2) of the Code.
Board of Trustees, Nationwide Mutual Funds
June 22, 2020
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7. No gain or loss will be recognized by the shareholders of the Target Fund upon the exchange of their shares in the Target Fund solely for the
shares (including fractional shares to which they may be entitled) of the Acquiring Fund pursuant to Section 354(a) of the Code.
8. The aggregate tax basis of the Acquiring Fund shares to be received by each Target Fund shareholder (including fractional shares to which they may
be entitled) of the Acquiring Fund will be the same as the aggregate tax basis of the shares of the Target Fund exchanged therefor pursuant to Section 358(a)(1) of the Code.
9. The holding period of the Acquiring Fund shares received by each Target Fund shareholder (including fractional shares to which they may be
entitled) will include the holding period of the Target Fund shares surrendered in exchange therefor, provided that the shareholder held the Target Fund shares as a capital asset on the effective date of the Reorganization pursuant to Section
1223(1) of the Code.
10. The Acquiring Fund will succeed to and take into account as of the date of the transfer (as defined in Section 1.381(b)-1(b) of the Treasury
Regulations) the items of the Target Fund described in Section 381(c) of the Code, subject to the conditions and limitations specified in Sections 381, 382, 383 and 384 of the Code, if applicable, and the Treasury Regulations thereunder.
Notwithstanding anything to the contrary herein, we express no opinion as to the effect of the Reorganization on the Target Fund, the Acquiring Fund or any shareholder of the Target Fund with respect to
any asset (including, without limitation, any stock held in a passive foreign investment company as defined in Section 1297(a) of the Code or any contract described in Section 1256(b) of the Code) as to which any unrealized gain or loss is required
to be recognized for federal income tax purposes at the end of a taxable year (or on the termination or transfer thereof) under a xxxx-to-xxxx system of accounting or otherwise regardless of whether such transfer would otherwise be a non-taxable
transaction under the Code.
Our opinion is based upon the Code, the applicable Treasury Regulations, the present positions of the Internal Revenue Service (the “Service”) as are set forth in published revenue rulings and revenue
procedures, present administrative positions of the Service, and existing judicial decisions, all of which are subject to change either prospectively or retroactively. We do not undertake to make any continuing analysis of the facts or relevant law
following the date of the Reorganization.
Our opinion is conditioned upon the performance by the Acquiring Fund and the Target Fund of the undertakings in the Plan and the Representation Letter. Except
as expressly set forth above, we express no other opinion to any party as to the tax consequences, whether federal, state, local or foreign, with respect to (i) the Reorganization or any transaction related to or contemplated by such Reorganization
(or incident thereto) or (ii) the effect, if any, of the
Board of Trustees, Nationwide Mutual Funds
June 22, 2020
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Reorganization on any other transaction and/or the effect, if any, of any such other transaction on the Reorganization.
We hereby consent to the use of this opinion as an exhibit to the registration statement of the Acquiring Fund on Form N-14, and any amendments thereto, covering the registration of Acquiring Fund Shares
under the Securities Act of 1933, as amended, to be issued in the Reorganization.
Very truly yours,
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/s/ Xxxxxxxx Ronon Xxxxxxx & Xxxxx, LLP
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Xxxxxxxx Ronon Xxxxxxx & Xxxxx, LLP
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Board of Trustees, Nationwide Mutual Funds
June 22, 2020
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EXHIBIT A
Nationwide Destination 2020 Fund
(the “Target Fund”)
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Nationwide Destination Retirement Fund
(the “Acquiring Fund”)
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Class A
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Class A
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Class R
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Class R
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Class R6
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Class R6
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Institutional Service Class
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Institutional Service Class
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