NVIT J.P. Morgan Inflation Managed Fund: Class II

Objective And Strategy

Objective
The Fund is designed to protect the total return generated by its core fixed income holdings, as further described below, from inflation risk.

Strategy
As used in the Fund’s objective, “total return” includes income and capital appreciation. The Fund seeks to hedge the risk of inflation by using swaps that are based on the Non-Seasonally Adjusted Consumer Price Index for all Urban Consumers (“CPI-U”) in combination with its core portfolio of bonds and other debt securities. This strategy is intended to create the equivalent of a portfolio of inflation-protected bonds. The Fund also may purchase other investments, including actual inflation-protected securities, such as Treasury Inflation Protected Securities (“TIPS”). “Inflation Managed” in the Fund’s name does not refer to a type of security in which the Fund invests, but rather describes the Fund’s overall strategy of creating a portfolio to maximize inflation protected total return.

Principal Risks

N/A