<PAGE> 1
'98
Nationwide(R) Variable Account - 9
June 30, 1998
The BEST of AMERICA(R)
America's FUTURE Annuity(SM)
SEMI-ANNUAL REPORT
[NATIONWIDE LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
APO-3604-A (6/98)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to present the 1998
semi-annual report of the Nationwide Variable Account-9.
The bull market continued its run in the first half of 1998. Most of the gains
came in the first quarter with more modest returns or small losses for the
second half of the period. At this writing, a market correction that began in
the second quarter continues to provide a good deal of day-to-day volatility.
Much of the capriciousness of the market is due to uncertainty about the
economic outcome in Asia. However, we think the correction will be of limited
magnitude and duration and will provide a healthy respite before further market
advances.
We believe that existing economic and market fundamentals provide an ongoing
favorable environment for financial assets. Interest rates remain low; inflation
is nearly nonexistent; corporate earnings, albeit slowing, remain positive, and
U.S. economic growth appears to be on a modest but sustainable track.
Against this backdrop, we believe our variable insurance products continue to
provide the versatile investment vehicle you need to respond to changing market
conditions. We are committed to the continual evaluation of our products and
services to ensure that we remain responsive to your long-term financial
planning and retirement-savings needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 17, 1998
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<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1998
(UNAUDITED)
<S> <C> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
2,711,932 shares (cost $16,410,343) ............................................................... $ 17,112,290
American Century VP - American Century VP International (ACVPInt)
2,834,351 shares (cost $21,746,726) ............................................................... 22,788,183
American Century VP - American Century VP Value (ACVPValue)
2,086,528 shares (cost $14,639,265) ............................................................... 14,188,388
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
585,045 shares (cost $16,306,885) ................................................................. 17,293,931
Dreyfus Stock Index Fund (DryStkIx)
4,683,315 shares (cost $134,578,091) .............................................................. 140,593,113
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
511,757 shares (cost $16,368,204) ................................................................. 17,230,849
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEI)
4,521,042 shares (cost $112,172,899) .............................................................. 113,749,417
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGr)
1,068,828 shares (cost $38,792,651) ............................................................... 40,925,440
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHI)
4,968,764 shares (cost $63,336,482) ............................................................... 62,705,798
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOv)
644,567 shares (cost $13,015,042) ................................................................. 13,284,536
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPCon)
2,553,675 shares (cost $53,044,097) ............................................................... 56,053,175
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOp)
2,451,383 shares (cost $48,779,035) ............................................................... 50,106,266
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
304,624 shares (cost $3,002,128) .................................................................. 2,833,002
Nationwide SAT - Balanced Fund (NSATBal)
1,678,410 shares (cost $17,797,720) ............................................................... 17,891,846
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
3,279,422 shares (cost $78,566,571) ............................................................... 82,608,648
Nationwide SAT - Equity Income Fund (NSATEqInc)
678,791 shares (cost $7,203,701) .................................................................. 7,480,273
Nationwide SAT - Global Equities Fund (NSATGlobEq)
748,316 shares (cost $8,243,703) .................................................................. 8,538,280
Nationwide SAT - Government Bond Fund (NSATGvtBd)
4,753,594 shares (cost $54,647,121) ............................................................... 54,666,333
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
1,383,801 shares (cost $14,441,951) ............................................................... 14,350,012
Nationwide SAT - Money Market Fund (NSATMyMkt)
106,482,412 shares (cost $106,482,412) ............................................................ 106,482,412
(Continued)
</TABLE>
4
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<TABLE>
<S> <C>
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
1,846,016 shares (cost $18,790,556) ............................................................... 18,570,925
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
391,187 shares (cost $4,108,982) .................................................................. 4,205,260
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
1,561,680 shares (cost $16,291,691) ............................................................... 15,913,523
Nationwide SAT - Small Company Fund (NSATSmCo)
1,516,409 shares (cost $25,464,476) ............................................................... 25,505,991
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
481,323 shares (cost $5,168,193) .................................................................. 5,424,514
Nationwide SAT - Strategic Value Fund (NSATStrVal)
882,712 shares (cost $9,502,278) .................................................................. 9,206,688
Nationwide SAT - Total Return Fund (NSATTotRe)
8,685,474 shares (cost $158,477,192) .............................................................. 162,418,363
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
1,213,509 shares (cost $16,612,279) ............................................................... 17,438,123
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
1,011,196 shares (cost $13,284,599) ............................................................... 14,844,357
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
4,648,660 shares (cost $93,273,579) ............................................................... 89,486,706
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
295,814 shares (cost $12,980,492) ................................................................. 13,855,949
Oppenheimer VAF - Growth Fund (OppGro)
538,077 shares (cost $18,084,043) ................................................................. 18,622,828
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
1,103,136 shares (cost $24,155,013) ............................................................... 24,401,363
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
386,938 shares (cost $4,006,816) .................................................................. 3,230,931
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
149,432 shares (cost $1,944,695) .................................................................. 1,725,945
Van Kampen American Capital LIT -
Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
956,721 shares (cost $14,673,782) ................................................................. 14,169,041
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
652,144 shares (cost $7,346,700) .................................................................. 7,571,397
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
878,101 shares (cost $10,270,532) ................................................................. 10,431,844
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
330,550 shares (cost $4,004,827) .................................................................. 4,138,486
-------------
Total investments .............................................................................. 1,322,044,426
Accounts receivable ..................................................................................... 15,494
-------------
Total assets ................................................................................... 1,322,059,920
ACCOUNTS PAYABLE ........................................................................................... 853,289
-------------
CONTRACT OWNERS' EQUITY (NOTE 4) ...........................................................................$ 1,321,206,631
=============
</TABLE>
See accompanying notes to financial statements.
5
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<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIOD ENDED JUNE 30, 1998
(UNAUDITED)
TOTAL ACVPincGr ACVPint ACVPValue
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 5,951,101 4,461 26,394 28,096
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (1,553,710) (17,452) (25,373) (18,133)
BOA Future (Rider Option 1)........ (1,043,592) (11,415) (13,242) (14,380)
BOA Future (Rider Option 2)........ (248,407) (3,049) (2,752) (1,720)
-------------- -------------- -------------- --------------
Net investment activity.............. 3,105,392 (27,455) (14,973) (6,137)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 16,226,232 - 23,510 147,489
Cost of mutual fund shares sold........ (16,102,377) - (19,975) (139,724)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 123,855 - 3,535 7,765
Change in unrealized gain (loss) on
investments ......................... 23,769,353 694,951 1,033,623 (472,263)
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 23,893,208 694,951 1,037,158 (464,498)
-------------- -------------- -------------- --------------
Reinvested capital gains............... 8,037,751 9,256 270,951 335,441
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations..................... 35,036,351 676,752 1,293,136 (135,194)
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 1,214,230,550 13,771,319 16,244,460 11,163,708
Transfers between funds................ - 2,265,613 4,761,636 1,920,443
Redemptions............................ (10,153,448) (58,474) (60,279) (119,061)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (95,154) (260) (447) (750)
Adjustments to maintain reserves....... 2,660 (263) (170) (210)
-------------- -------------- -------------- --------------
Net equity transactions............ 1,203,984,608 15,977,935 20,945,200 12,964,130
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,239,020,959 16,654,687 22,238,336 12,828,936
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 82,185,672 457,579 549,898 1,359,398
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 1,321,206,631 17,112,266 22,788,234 14,188,334
============== ============== ============== ==============
<CAPTION>
DrySRGro DryStkix DryCapAp FidVIPEIS
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - 614,167 439 217,564
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (17,946) (155,909) (17,642) (125,761)
BOA Future (Rider Option 1)........ (12,430) (105,768) (10,503) (99,797)
BOA Future (Rider Option 2)........ (2,925) (22,466) (2,815) (24,437)
------------- -------------- -------------- --------------
Net investment activity.............. (33,301) 330,024 (30,521) (32,431)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 52,124 - 33,965 -
Cost of mutual fund shares sold........ (46,445) - (31,593) -
------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 5,679 - 2,372 -
Change in unrealized gain (loss) on
investments ......................... 990,754 6,025,571 864,202 1,496,665
------------- -------------- -------------- --------------
Net gain (loss) on investments....... 996,433 6,025,571 866,574 1,496,665
------------- -------------- -------------- --------------
Reinvested capital gains............... - 207,363 1,464 774,271
------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations..................... 963,132 6,562,958 837,517 2,238,505
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 13,950,495 118,143,812 11,780,282 98,965,953
Transfers between funds................ 1,618,528 10,523,815 3,723,680 8,213,608
Redemptions............................ (94,168) (746,698) (41,911) (976,577)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (664) (8,998) (202) (5,795)
Adjustments to maintain reserves....... (116) (2,515) (559) (3,324)
------------- -------------- -------------- --------------
Net equity transactions............ 15,474,075 127,909,416 15,461,290 106,193,865
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 16,437,207 134,472,374 16,298,807 108,432,370
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 856,724 6,120,635 932,022 5,316,805
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 17,293,931 140,593,009 17,230,829 113,749,175
============= ============== ============== ==============
</TABLE>
6
<PAGE> 6
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIOD ENDED JUNE 30, 1998
(UNAUDITED)
FidVIPGrS FidVIPHIS FidVIPOvs FidVIPConS
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 27,645 609,157 39,473 56,795
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (43,229) (74,458) (16,570) (66,011)
BOA Future (Rider Option 1)........ (32,542) (45,972) (9,642) (42,231)
BOA Future (Rider Option 2)........ (7,646) (12,862) (2,899) (8,068)
-------------- -------------- -------------- --------------
Net investment activity.............. (55,772) 475,865 10,362 (59,515)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 18,428 178,035 36,268 -
Cost of mutual fund shares sold........ (17,764) (189,567) (33,991) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 664 (11,532) 2,277 -
Change in unrealized gain (loss) on
investments .......................... 2,109,551 (646,773) 263,680 2,952,425
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 2,110,215 (658,305) 265,957 2,952,425
-------------- -------------- -------------- --------------
Reinvested capital gains............... 723,135 387,069 116,340 417,852
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations. ................... 2,777,578 204,629 392,659 3,310,762
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 32,243,703 55,930,129 10,270,903 44,322,546
Transfers between funds................ 4,273,671 4,087,204 1,779,453 4,989,024
Redemptions............................ (370,478) (422,204) (79,377) (277,768)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (3,993) (1,838) (246) (2,622)
Adjustments to maintain reserves....... (469) (35) 137 (322)
-------------- -------------- -------------- --------------
Net equity transactions............ 36,142,434 59,593,256 11,970,870 49,030,858
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 38,920,012 59,797,885 12,363,529 52,341,620
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,005,428 2,907,866 921,006 3,711,506
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 40,925,440 62,705,751 13,284,535 56,053,126
============== ============== ============== ==============
<CAPTION>
FidVIPGrOpS MSEmMkt NSATbal NSATCapAp
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 67,013 - 161,266 218,856
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (51,061) (4,200) (20,038) (91,711)
BOA Future (Rider Option 1)........ (45,696) (2,032) (15,697) (51,812)
BOA Future (Rider Option 2)........ (8,721) (725) (4,090) (12,369)
-------------- -------------- -------------- --------------
Net investment activity.............. (38,465) (6,957) 121,441 62,964
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. - 90,423 - -
Cost of mutual fund shares sold........ - (92,207) - -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. - (1,784) - -
Change in unrealized gain (loss) on
investments .......................... 1,282,232 (167,279) 89,079 4,051,569
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 1,282,232 (169,063) 89,079 4,051,569
-------------- -------------- -------------- --------------
Reinvested capital gains............... 232,948 - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations. ................... 1,476,715 (176,020) 210,520 4,114,533
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 43,176,402 2,366,366 15,424,568 70,493,331
Transfers between funds................ 3,143,635 466,042 1,488,053 5,745,175
Redemptions............................ (265,428) (19,599) (123,039) (404,446)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (2,379) - (658) (1,081)
Adjustments to maintain reserves....... (1,029) (27) 156 (281)
-------------- -------------- -------------- --------------
Net equity transactions............ 46,051,201 2,812,782 16,789,080 75,832,698
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 47,527,916 2,636,762 16,999,600 79,947,231
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,578,270 196,208 892,533 2,661,405
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 50,106,186 2,832,970 17,892,133 82,608,636
============== ============== ============== ==============
</TABLE>
7
<PAGE> 7
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIOD ENDED JUNE 30, 1998
(UNAUDITED)
NSATEqinc NSATglobEq NSATGvtBd NSATHincBd
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 19,959 66,206 1,094,640 276,651
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (9,633) (10,376) (66,286) (16,284)
BOA Future (Rider Option 1)........ (7,087) (7,089) (44,964) (9,609)
BOA Future (Rider Option 2)........ (1,452) (2,338) (14,376) (4,382)
-------------- -------------- -------------- --------------
Net investment activity.............. 1,787 46,403 969,014 246,376
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 14,293 158,962 135,689 17,724
Cost of mutual fund shares sold........ (13,972) (156,094) (135,099) (16,884)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 321 2,868 590 840
Change in unrealized gain (loss) on
investments ......................... 267,472 291,311 46,472 (90,277)
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 267,793 294,179 47,062 (89,437)
-------------- -------------- -------------- --------------
Reinvested capital gains............... - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations..................... 269,580 340,582 1,016,076 156,939
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 6,391,812 7,056,113 55,133,168 12,213,357
Transfers between funds................ 277,908 671,128 (4,381,026) 1,113,563
Redemptions............................ (50,570) (42,742) (271,072) (47,416)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (842) (276) (1,786) (410)
Adjustments to maintain reserves....... (365) (4) 990 (3)
-------------- -------------- -------------- --------------
Net equity transactions............ 6,617,943 7,684,219 50,480,274 13,279,091
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 6,887,523 8,024,801 51,496,350 13,436,030
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 592,741 513,483 3,170,009 913,981
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 7,480,264 8,538,284 54,666,359 14,350,011
============== ============== ============== ==============
<CAPTION>
NSATMyMkt NSATMSecBd NSATMidCap NSATSmCapV
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 1,407,541 257,162 14,429 -
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (150,217) (22,819) (4,960) (21,424)
BOA Future (Rider Option 1)........ (87,321) (13,779) (3,946) (11,693)
BOA Future (Rider Option 2)........ (31,007) (4,720) (1,599) (2,096)
-------------- -------------- -------------- --------------
Net investment activity.............. 1,138,996 215,844 3,924 (35,213)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 11,774,723 17,958 85,216 42,378
Cost of mutual fund shares sold........ (11,774,723) (17,588) (80,512) (39,503)
-------------- --------------- -------------- --------------
Realized gain (loss) on investments.. - 370 4,704 2,875
Change in unrealized gain (loss) on
investments ......................... - (219,480) 90,839 (382,846)
-------------- --------------- -------------- --------------
Net gain (loss) on investments....... - (219,110) 95,543 (379,971)
-------------- --------------- -------------- --------------
Reinvested capital gains............... - - - -
-------------- --------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations..................... 1,138,996 (3,266) 99,467 (415,184)
-------------- --------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 186,043,862 15,210,546 3,533,619 13,110,815
Transfers between funds................ (91,737,935) 2,416,310 360,265 2,119,536
Redemptions............................ (2,962,036) (92,986) (16,908) (58,885)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (39,649) (1,079) (252) (23)
Adjustments to maintain reserves....... 16,525 94 4 38
-------------- -------------- -------------- --------------
Net equity transactions............ 91,320,767 17,532,885 3,876,728 15,171,481
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 92,459,763 17,529,619 3,976,195 14,756,297
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 13,185,940 1,041,296 229,062 1,157,154
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 105,645,703 18,570,915 4,205,257 15,913,451
============== ============== ============== ==============
</TABLE>
8
<PAGE> 8
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIOD ENDED JUNE 30, 1998
(UNAUDITED)
NSATSmCo NSATStrGro NSATStrVal NSATTotRe
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 19,811 522,242
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (31,659) (7,315) (11,222) (179,497)
BOA Future (Rider Option 1)........ (22,714) (3,920) (7,737) (116,792)
BOA Future (Rider Option 2)........ (4,882) (985) (1,860) (21,118)
-------------- -------------- -------------- --------------
Net investment activity.............. (59,255) (12,220) (1,008) 204,835
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. - 12,423 641,304 425,198
Cost of mutual fund shares sold........ - (11,202) (588,014) (397,397)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. - 1,221 53,290 27,801
Change in unrealized gain (loss) on
investments ......................... 62,404 247,883 (299,633) 4,021,183
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 62,404 249,104 (246,343) 4,048,984
-------------- -------------- -------------- --------------
Reinvested capital gains............... - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations..................... 3,149 236,884 (247,351) 4,253,819
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 21,040,412 4,503,596 8,353,578 148,066,282
Transfers between funds................ 3,055,053 374,759 652,604 5,005,324
Redemptions............................ (150,283) (16,084) (35,281) (953,814)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (664) (657) (279) (8,945)
Adjustments to maintain reserves....... (71) (30) (83) (2,634)
-------------- -------------- -------------- --------------
Net equity transactions............ 23,944,447 4,861,584 8,970,539 152,106,213
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 23,947,596 5,098,468 8,723,188 156,360,032
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 1,558,315 326,042 483,463 6,058,146
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 25,505,911 5,424,510 9,206,651 162,418,178
============== ============== ============== ==============
<CAPTION>
NBAMTGuard NBAMTMCGr NBAMTPart OppAggGro
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 1,976 2,804 110,164 9,456
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (14,643) (13,529) (132,881) (15,111)
BOA Future (Rider Option 1)........ (14,831) (14,991) (85,585) (10,633)
BOA Future (Rider Option 2)........ (2,083) (3,135) (14,172) (2,433)
-------------- -------------- -------------- --------------
Net investment activity.............. (29,581) (28,851) (122,474) (18,721)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 282,839 48,056 833,649 44,922
Cost of mutual fund shares sold........ (213,169) (33,151) (838,575) (42,570)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 69,670 14,905 (4,926) 2,352
Change in unrealized gain (loss) on
investments ......................... 814,051 1,486,108 (3,863,521) 870,434
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 883,721 1,501,013 (3,868,447) 872,786
-------------- -------------- -------------- --------------
Reinvested capital gains............... - 19,626 3,470,168 97,107
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from
operations..................... 854,140 1,491,788 (520,753) 951,172
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 10,409,623 9,482,465 72,378,126 11,108,749
Transfers between funds................ 5,838,170 2,499,743 4,854,052 1,119,396
Redemptions............................ (125,365) (210,254) (581,536) (43,704)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (498) (756) (3,465) (155)
Adjustments to maintain reserves....... (9) 64 (1,455) 36
-------------- -------------- -------------- --------------
Net equity transactions............ 16,121,921 11,771,262 76,645,722 12,184,322
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 16,976,061 13,263,050 76,124,969 13,135,494
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 462,067 1,581,322 13,361,586 720,441
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 17,438,128 14,844,372 89,486,555 13,855,935
============== ============== ============== ==============
</TABLE>
9
<PAGE> 9
<TABLE>
<CAPTION>
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIOD ENDED JUNE 30, 1998
(UNAUDITED)
OppGro OppGrinc VEWrldEMkt VEWrldHAs
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 37,971 15,499 10,120 2,513
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (20,120) (25,383) (5,115) (2,698)
BOA Future (Rider Option 1)........ (13,572) (18,204) (6,092) (1,125)
BOA Future (Rider Option 2)........ (4,290) (4,880) (1,077) (585)
-------------- -------------- -------------- --------------
Net investment activity.............. (11) (32,968) (2,164) (1,895)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. - 8,821 803,648 13,042
Cost of mutual fund shares sold........ - (7,753) (860,939) (16,128)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. - 1,068 (57,291) (3,086)
Change in unrealized gain (loss) on
investments ......................... 529,042 221,076 (780,028) (222,069)
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 529,042 222,144 (837,319) (225,155)
-------------- -------------- -------------- --------------
Reinvested capital gains............... 458,139 341,298 8,995 61,720
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from 987,170 530,474 (830,488) (165,330)
operations..................... -------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 15,905,995 20,755,769 3,870,771 1,501,381
Transfers between funds................ 887,502 2,155,235 (417,134) 194,383
Redemptions............................ (105,308) (123,265) (49,712) (24,475)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (2,614) (1,249) (41) (186)
Adjustments to maintain reserves....... (155) (25) 149 (255)
-------------- -------------- -------------- --------------
Net equity transactions............ 16,685,420 22,786,465 3,404,033 1,670,848
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 17,672,590 23,316,939 2,573,545 1,505,518
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 950,233 1,084,375 657,536 220,179
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 18,622,823 24,401,314 3,231,081 1,725,697
============== ============== ============== ==============
<CAPTION>
VKMSRESec WPGrinc WPintEq WPPVenCap
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 10,631 - - -
Mortality and expense risk charges (note 2):
BOA Future (Base).................. (19,769) (8,944) (14,633) (3,698)
BOA Future (Rider Option 1)........ (13,593) (4,809) (7,741) (2,606)
BOA Future (Rider Option 2)........ (2,568) (2,139) (2,089) (597)
-------------- -------------- -------------- --------------
Net investment activity.............. (25,299) (15,892) (24,463) (6,901)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 89,461 35,654 128,273 31,757
Cost of mutual fund shares sold........ (102,351) (32,559) (125,342) (27,586)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. (12,890) 3,095 2,931 4,171
Change in unrealized gain (loss) on
investments ......................... (444,637) 218,642 205,304 131,636
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... (457,527) 221,737 208,235 135,807
-------------- -------------- -------------- --------------
Reinvested capital gains............... 104,608 - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract
owners' equity resulting from (378,218) 205,845 183,772 128,906
operations..................... -------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 12,511,790 6,235,906 8,396,403 2,768,435
Transfers between funds................ 1,041,659 723,253 1,071,525 1,105,147
Redemptions............................ (65,953) (27,192) (32,638) (6,462)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (355) (656) (373) (11)
Adjustments to maintain reserves....... (204) (806) (113) (1)
-------------- -------------- -------------- --------------
Net equity transactions............ 13,486,937 6,930,505 9,434,804 3,867,108
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 13,108,719 7,136,350 9,618,576 3,996,014
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 1,060,268 435,020 813,257 142,473
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 14,168,987 7,571,370 10,431,833 4,138,487
============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide Variable Account-9 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on May 22, 1997. The Account has been
registered as a unit investment trust under the Investment Company Act
of 1940.
The Company offers tax qualified and non-tax qualified Modified Single
Premium Deferred Variable Annuity Contracts through the Account. The
primary distribution for the contracts is through the brokerage
community; however, other distributors are utilized.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase.
See note 2 for a discussion of contract expenses.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in the following:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP);
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIPS);
Fidelity VIP - Equity-Income Portfolio - Service Class Shares
(FidVIPEIS)
Fidelity VIP - Growth Portfolio - Service Class Shares
(FidVIPGrS)
Fidelity VIP - High Income Portfolio - Service Class Shares
(FidVIPHIS)
Fidelity VIP - Overseas Portfolio - Service Class Shares
(FidVIPOvS)
Portfolio of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Contrafund Portfolio - Service Class Shares
(FidVIPConS)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio - Service
Class Shares (FidVIPGrOpS)
Portfolio of the Morgan Stanley Universal Funds, Inc.
(Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Balanced Fund (NSATBal)
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Equity Income Fund (NSATEqInc)
Nationwide SAT - Global Equity Fund (NSATGlobEq)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
11
<PAGE> 11
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
Nationwide SAT - Strategic Value Fund (NSATStrVal)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger &Berman AMT);
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen American Capital Life Investment Trust
(Van Kampen American Capital LIT);
Van Kampen American Capital LIT - Morgan Stanley Real Estate
Securities Portfolio (VKMSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
At June 30, 1998, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2).
The accompanying financial statements include only contract owners'
purchase payments pertaining to the variable portions of their
contracts and exclude any purchase payments for fixed dollar benefits,
the latter being included in the accounts of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1998. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
12
<PAGE> 12
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The Company deducts a mortality and expense risk charge assessed through
the daily unit value calculation equal to an annual rate of 0.95% (Base).
Optional long term care facility with a one-year stepped up death benefit
rider is offered at an additional annual rate of 0.05% (Rider Option 1).
Optional long term care facility with a 5% enhanced death benefit rider is
offered at an additional annual rate of 0.10% (Rider Option 2).
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
13
<PAGE> 13
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1998.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
--------- ---------- ------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
The BEST of AMERICA(R)
America's FUTURE AnnuitySM (Base):
American Century VP -
American Century VP Income & Growth:
Tax qualified ............................ 367,778 $ 12.170718 $ 4,476,122 17%
Non-tax qualified ........................ 453,825 12.170718 5,523,376 17%
American Century VP -
American Century VP International:
Tax qualified ............................ 502,451 12.581287 6,321,480 25%
Non-tax qualified ........................ 640,585 12.581287 8,059,384 25%
American Century VP -
American Century VP Value:
Tax qualified ............................ 380,975 10.853152 4,134,780 5%
Non-tax qualified ........................ 359,917 10.853152 3,906,234 5%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified ............................ 414,289 11.983981 4,964,832 18%
Non-tax qualified ........................ 396,991 11.983981 4,757,533 18%
Dreyfus Stock Index Fund:
Tax qualified ............................ 3,277,962 12.097162 39,654,037 17%
Non-tax qualified ........................ 3,348,971 12.097162 40,513,045 17%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified ............................ 360,124 12.316444 4,435,447 20%
Non-tax qualified ........................ 450,838 12.316444 5,552,721 20%
Fidelity VIP - Equity-Income Portfolio -
Service Class Share:
Tax qualified ............................ 2,696,488 11.373241 30,667,808 10%
Non-tax qualified ........................ 2,637,749 11.373241 29,999,755 10%
Fidelity VIP - Growth Portfolio -
Service Class Share:
Tax qualified ............................ 936,805 11.887426 11,136,200 19%
Non-tax qualified ........................ 912,371 11.887426 10,845,743 19%
Fidelity VIP - High Income Portfolio -
Service Class Share:
Tax qualified ............................ 1,547,022 10.561923 16,339,527 4%
Non-tax qualified ........................ 1,756,144 10.561923 18,548,258 4%
Fidelity VIP - Overseas Portfolio -
Service Class Share:
Tax qualified ............................ 254,493 11.422611 2,906,975 15%
Non-tax qualified ........................ 421,825 11.422611 4,818,343 15%
Fidelity VIP-II - Contrafund Portfolio -
Service Class Share:
Tax qualified ............................ 1,407,826 11.571906 16,291,230 16%
Non-tax qualified ........................ 1,398,666 11.571906 16,185,231 16%
</TABLE>
14
<PAGE> 14
<TABLE>
<S> <C> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class Share:
Tax qualified ............................ 1,020,242 11.523659 11,756,921 11%
Non-tax qualified ........................ 1,148,339 11.523659 13,233,067 11%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified ............................ 75,934 9.979155 757,757 (4)%
Non-tax qualified ........................ 112,024 9.979155 1,117,905 (4)%
Nationwide SAT - Balanced Fund:
Tax qualified ............................ 405,789 10.771793 4,371,075 6%
Non-tax qualified ........................ 460,857 10.771793 4,964,256 6%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified ............................ 2,090,188 12.328710 25,769,322 19%
Non-tax qualified ........................ 1,996,927 12.328710 24,619,534 19%
Nationwide SAT - Equity Income Fund:
Tax qualified ............................ 147,765 11.012552 1,627,270 8%
Non-tax qualified ........................ 213,821 11.012552 2,354,715 8%
Nationwide SAT - Global Equity Fund:
Tax qualified ............................ 157,826 11.485178 1,812,660 14%
Non-tax qualified ........................ 240,099 11.485178 2,757,580 14%
Nationwide SAT - Government Bond Fund:
Tax qualified ............................ 1,523,556 10.498603 15,995,210 4%
Non-tax qualified ........................ 1,319,365 10.498603 13,851,489 4%
Nationwide SAT - High Income Bond Fund:
Tax qualified ............................ 276,457 10.723072 2,964,468 5%
Non-tax qualified ........................ 437,356 10.723072 4,689,800 5%
Nationwide SAT - Money Market Fund:
Tax qualified ............................ 2,520,266 10.289603 25,932,537 2%
Non-tax qualified ........................ 3,309,953 10.289603 34,058,102 2%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified ............................ 467,547 10.243704 4,789,413 2%
Non-tax qualified ........................ 558,891 10.243704 5,725,114 2%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax qualified ............................ 86,366 10.756858 929,027 8%
Non-tax qualified ........................ 103,579 10.756858 1,114,185 8%
Nationwide SAT - Small Cap Value Fund:
Tax qualified ............................ 428,719 10.176972 4,363,061 4%
Non-tax qualified ........................ 547,426 10.176972 5,571,139 4%
Nationwide SAT - Small Company Fund:
Tax qualified ............................ 641,956 10.153302 6,517,973 6%
Non-tax qualified ........................ 793,975 10.153302 8,061,468 6%
Nationwide SAT - Strategic Growth Fund:
Tax qualified ............................ 160,700 11.210346 1,801,503 10%
Non-tax qualified ........................ 143,055 11.210346 1,603,696 10%
Nationwide SAT - Strategic Value Fund:
Tax qualified ............................ 202,688 10.408807 2,109,740 3%
Non-tax qualified ........................ 315,570 10.408807 3,284,707 3%
(Continued)
</TABLE>
15
<PAGE> 15
<TABLE>
<S> <C> <C> <C> <C> <C>
Nationwide SAT - Total Return Fund:
Tax qualified ............................ 4,849,195 11.700068 56,735,911 14%
Non-tax qualified ........................ 3,391,404 11.700068 39,679,657 14%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax qualified ............................ 255,234 14.292454 3,647,920 36%
Non-tax qualified ........................ 309,296 14.292454 4,420,599 36%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax qualified ............................ 219,553 14.682335 3,223,551 25%
Non-tax qualified ........................ 261,681 14.682335 3,842,088 25%
Neuberger & Berman AMT -
Partners Portfolio:
Tax qualified ............................ 2,093,981 10.686689 22,377,724 5%
Non-tax qualified ........................ 2,757,692 10.686689 29,470,597 5%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax qualified ............................ 339,586 11.139067 3,782,671 17%
Non-tax qualified ........................ 348,384 11.139067 3,880,673 17%
Oppenheimer VAF - Growth Fund:
Tax qualified ............................ 448,424 11.447005 5,133,112 16%
Non-tax qualified ........................ 462,614 11.447005 5,295,545 16%
Oppenheimer VAF -
Growth & Income Fund:
Tax qualified ............................ 525,162 11.547264 6,064,184 13%
Non-tax qualified ........................ 605,251 11.547264 6,988,993 13%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ............................ 117,393 6.777150 795,590 (23)%
Non-tax qualified ........................ 147,858 6.777150 1,002,056 (23)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified ............................ 56,203 7.745281 435,308 (14)%
Non-tax qualified ........................ 86,427 7.745281 669,401 (14)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio:
Tax qualified ............................ 427,044 9.787990 4,179,902 (5)%
Non-tax qualified ........................ 421,786 9.787990 4,128,437 (5)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified ............................ 218,158 11.603999 2,531,505 12%
Non-tax qualified ........................ 175,429 11.603999 2,035,678 12%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified ............................ 265,312 10.657104 2,827,458 13%
Non-tax qualified ........................ 345,639 10.657104 3,683,511 13%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified ............................ 110,472 11.100709 1,226,318 13%
Non-tax qualified ........................ 134,057 11.100709 1,488,128 13%
</TABLE>
16
<PAGE> 16
<TABLE>
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
America's FUTURE AnnuitySM (Rider Option 1):
American Century VP -
American Century VP Income & Growth:
Tax qualified ............................ 246,663 12.166705 3,001,076 17%
Non-tax qualified ........................ 235,642 12.166705 2,866,987 17%
American Century VP -
American Century VP International:
Tax qualified ............................ 219,423 12.577137 2,759,713 25%
Non-tax qualified ........................ 341,425 12.577137 4,294,149 25%
American Century VP -
American Century VP Value:
Tax qualified ............................ 265,404 10.849565 2,879,518 5%
Non-tax qualified ........................ 231,758 10.849565 2,514,473 5%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified ............................ 243,813 11.980030 2,920,887 18%
Non-tax qualified ........................ 281,182 11.980030 3,368,569 18%
Dreyfus Stock Index Fund:
Tax qualified ............................ 2,100,629 12.093169 25,403,262 17%
Non-tax qualified ........................ 2,058,886 12.093169 24,898,456 17%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified ............................ 228,236 12.312380 2,810,128 20%
Non-tax qualified ........................ 227,260 12.312380 2,798,111 20%
Fidelity VIP - Equity-Income Portfolio -
Service Class Share:
Tax qualified ............................ 1,713,879 11.369482 19,485,916 10%
Non-tax qualified ........................ 2,090,883 11.369482 23,772,257 10%
Fidelity VIP - Growth Portfolio -
Service Class Share:
Tax qualified ............................ 651,708 11.883508 7,744,577 18%
Non-tax qualified ........................ 672,966 11.883508 7,997,197 18%
Fidelity VIP - High Income Portfolio -
Service Class Share:
Tax qualified ............................ 900,211 10.558433 9,504,818 4%
Non-tax qualified ........................ 1,142,576 10.558433 12,063,812 4%
Fidelity VIP - Overseas Portfolio -
Service Class Share:
Tax qualified ............................ 188,812 11.418840 2,156,014 15%
Non-tax qualified ........................ 195,000 11.418840 2,226,674 15%
Fidelity VIP-II - Contrafund Portfolio -
Service Class Share:
Tax qualified ............................ 757,780 11.568095 8,766,071 16%
Non-tax qualified ........................ 980,117 11.568095 11,338,087 16%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class Share:
Tax qualified ............................ 831,825 11.519844 9,582,494 11%
Non-tax qualified ........................ 1,039,870 11.519844 11,979,140 11%
(Continued)
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified ............................ 26,987 9.975850 269,218 (4)%
Non-tax qualified ........................ 46,813 9.975850 466,999 (4)%
Nationwide SAT - Balanced Fund:
Tax qualified ............................ 318,732 10.768235 3,432,181 6%
Non-tax qualified ........................ 341,717 10.768235 3,679,689 6%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified ............................ 1,131,977 12.324645 13,951,215 19%
Non-tax qualified ........................ 1,040,983 12.324645 12,829,746 19%
Nationwide SAT - Equity Income Fund:
Tax qualified ............................ 110,323 11.008922 1,214,537 8%
Non-tax qualified ........................ 163,817 11.008922 1,803,449 8%
Nationwide SAT - Global Equity Fund:
Tax qualified ............................ 111,005 11.481385 1,274,491 14%
Non-tax qualified ........................ 158,321 11.481385 1,817,744 14%
Nationwide SAT - Government Bond Fund:
Tax qualified ............................ 855,571 10.495128 8,979,327 3%
Non-tax qualified ........................ 1,002,043 10.495128 10,516,570 3%
Nationwide SAT - High Income Bond Fund:
Tax qualified ............................ 259,602 10.719529 2,782,811 5%
Non-tax qualified ........................ 215,074 10.719529 2,305,492 5%
Nationwide SAT - Money Market Fund:
Tax qualified ............................ 1,451,748 10.286162 14,932,915 2%
Non-tax qualified ........................ 1,893,410 10.286162 19,475,922 2%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified ............................ 301,949 10.240319 3,092,054 2%
Non-tax qualified ........................ 276,590 10.240319 2,832,370 2%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax qualified ............................ 71,227 10.753307 765,926 8%
Non-tax qualified ........................ 77,319 10.753307 831,435 8%
Nationwide SAT - Small Cap Value Fund:
Tax qualified ............................ 243,249 10.173615 2,474,722 4%
Non-tax qualified ........................ 255,017 10.173615 2,594,445 4%
Nationwide SAT - Small Company Fund:
Tax qualified ............................ 427,010 10.149945 4,334,128 6%
Non-tax qualified ........................ 475,524 10.149945 4,826,542 6%
Nationwide SAT - Strategic Growth Fund:
Tax qualified ............................ 71,938 11.206638 806,183 10%
Non-tax qualified ........................ 74,636 11.206638 836,419 10%
Nationwide SAT - Strategic Value Fund:
Tax qualified ............................ 81,243 10.405368 845,363 3%
Non-tax qualified ........................ 197,180 10.405368 2,051,730 3%
Nationwide SAT - Total Return Fund:
Tax qualified ............................ 2,515,855 11.696195 29,425,931 14%
Non-tax qualified ........................ 2,281,878 11.696195 26,689,290 14%
</TABLE>
18
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<TABLE>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Guardian Portfolio:
Tax qualified ............................ 320,159 14.287745 4,574,350 36%
Non-tax qualified ........................ 276,230 14.287745 3,946,704 36%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax qualified ............................ 223,556 14.677495 3,281,242 25%
Non-tax qualified ........................ 218,385 14.677495 3,205,345 25%
Neuberger & Berman AMT -
Partners Portfolio:
Tax qualified ............................ 1,470,916 10.683160 15,714,031 5%
Non-tax qualified ........................ 1,561,577 10.683160 16,682,577 5%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax qualified ............................ 229,940 11.135390 2,560,472 17%
Non-tax qualified ........................ 253,833 11.135390 2,826,529 17%
Oppenheimer VAF - Growth Fund:
Tax qualified ............................ 276,324 11.443223 3,162,037 16%
Non-tax qualified ........................ 299,604 11.443223 3,428,435 16%
Oppenheimer VAF -
Growth & Income Fund:
Tax qualified ............................ 367,147 11.543448 4,238,142 13%
Non-tax qualified ........................ 447,853 11.543448 5,169,768 13%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ............................ 84,952 6.774914 575,542 (23)%
Non-tax qualified ........................ 77,887 6.774914 527,678 (23)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified ............................ 28,587 7.742714 221,341 (14)%
Non-tax qualified ........................ 27,338 7.742714 211,670 (14)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio:
Tax qualified ............................ 273,996 9.784754 2,680,983 (5)%
Non-tax qualified ........................ 231,462 9.784754 2,264,799 (5)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified ............................ 86,787 11.600162 1,006,743 12%
Non-tax qualified ........................ 111,511 11.600162 1,293,546 12%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified ............................ 127,878 10.653585 1,362,359 13%
Non-tax qualified ........................ 165,648 10.653585 1,764,745 13%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified ............................ 49,966 11.097043 554,475 13%
Non-tax qualified ........................ 51,889 11.097043 575,814 13%
(Continued)
</TABLE>
19
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<TABLE>
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
America's FUTURE AnnuitySM (Rider Option 2):
American Century VP -American
Century VP Income & Growth:
Tax qualified ............................ 43,378 12.162681 527,593 17%
Non-tax qualified ........................ 58,960 12.162681 717,112 17%
American Century VP -
American Century VP International:
Tax qualified ............................ 33,320 12.572997 418,932 25%
Non-tax qualified ........................ 74,332 12.572997 934,576 25%
American Century VP -
American Century VP Value:
Tax qualified ............................ 31,829 10.845978 345,217 5%
Non-tax qualified ........................ 37,628 10.845978 408,112 5%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified ............................ 53,679 11.976068 642,863 18%
Non-tax qualified ........................ 53,377 11.976068 639,247 18%
Dreyfus Stock Index Fund:
Tax qualified ............................ 383,474 12.089171 4,635,883 17%
Non-tax qualified ........................ 453,987 12.089171 5,488,326 17%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified ............................ 56,594 12.308318 696,577 20%
Non-tax qualified ........................ 76,196 12.308318 937,845 20%
Fidelity VIP - Equity-Income Portfolio -
Service Class Share:
Tax qualified ............................ 331,928 11.365722 3,772,601 10%
Non-tax qualified ........................ 532,376 11.365722 6,050,838 10%
Fidelity VIP - Growth Portfolio -
Service Class Share:
Tax qualified ............................ 120,763 11.879573 1,434,613 18%
Non-tax qualified ........................ 148,752 11.879573 1,767,110 18%
Fidelity VIP - High Income Portfolio -
Service Class Share:
Tax qualified ............................ 254,167 10.554939 2,682,717 4%
Non-tax qualified ........................ 337,910 10.554939 3,566,619 4%
Fidelity VIP - Overseas Portfolio -
Service Class Share:
Tax qualified ............................ 44,588 11.415076 508,975 15%
Non-tax qualified ........................ 58,480 11.415076 667,554 15%
Fidelity VIP-II - Contrafund Portfolio -
Service Class Share:
Tax qualified ............................ 110,222 11.564269 1,274,637 16%
Non-tax qualified ........................ 190,057 11.564269 2,197,870 16%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class Share:
Tax qualified ............................ 139,787 11.516041 1,609,793 11%
Non-tax qualified ........................ 168,875 11.516041 1,944,771 11%
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified ............................ 7,601 9.972550 75,801 (4)%
Non-tax qualified ........................ 14,569 9.972550 145,290 (4)%
Nationwide SAT - Balanced Fund:
Tax qualified ............................ 51,318 10.764679 552,422 6%
Non-tax qualified ........................ 82,911 10.764679 892,510 6%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified ............................ 195,646 12.320573 2,410,471 19%
Non-tax qualified ........................ 245,796 12.320573 3,028,348 19%
Nationwide SAT - Equity Income Fund:
Tax qualified ............................ 15,658 11.005281 172,321 8%
Non-tax qualified ........................ 27,984 11.005281 307,972 8%
Nationwide SAT - Global Equity Fund:
Tax qualified ............................ 34,791 11.477596 399,317 14%
Non-tax qualified ........................ 41,515 11.477596 476,492 14%
Nationwide SAT - Government Bond Fund:
Tax qualified ............................ 182,440 10.491662 1,914,099 3%
Non-tax qualified ........................ 324,988 10.491662 3,409,664 3%
Nationwide SAT - High Income Bond Fund:
Tax qualified ............................ 52,031 10.715984 557,563 5%
Non-tax qualified ........................ 97,973 10.715984 1,049,877 5%
Nationwide SAT - Money Market Fund:
Tax qualified ............................ 405,427 10.282716 4,168,891 2%
Non-tax qualified ........................ 688,275 10.282716 7,077,336 2%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified ............................ 84,987 10.236934 870,006 1%
Non-tax qualified ........................ 123,275 10.236934 1,261,958 1%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax qualified ............................ 11,327 10.749743 121,762 8%
Non-tax qualified ........................ 41,203 10.749743 442,922 8%
Nationwide SAT - Small Cap Value Fund:
Tax qualified ............................ 31,139 10.170245 316,691 4%
Non-tax qualified ........................ 58,346 10.170245 593,393 4%
Nationwide SAT - Small Company Fund:
Tax qualified ............................ 48,055 10.146585 487,594 6%
Non-tax qualified ........................ 125,974 10.146585 1,278,206 6%
Nationwide SAT - Strategic Growth Fund:
Tax qualified ............................ 26,311 11.202932 294,760 10%
Non-tax qualified ........................ 7,315 11.202932 81,949 10%
Nationwide SAT - Strategic Value Fund:
Tax qualified ............................ 26,732 10.401935 278,065 3%
Non-tax qualified ........................ 61,243 10.401935 637,046 3%
Nationwide SAT - Total Return Fund:
Tax qualified ............................ 417,918 11.692335 4,886,437 14%
Non-tax qualified ........................ 427,712 11.692335 5,000,952 14%
(Continued)
</TABLE>
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<TABLE>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Guardian Portfolio:
Tax qualified ............................ 23,673 14.283037 338,122 36%
Non-tax qualified ........................ 35,737 14.283037 510,433 36%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax qualified ............................ 34,637 14.672641 508,216 25%
Non-tax qualified ........................ 53,428 14.672641 783,930 25%
Neuberger & Berman AMT -
Partners Portfolio:
Tax qualified ............................ 232,636 10.679628 2,484,466 5%
Non-tax qualified ........................ 258,170 10.679628 2,757,160 5%
Oppenheimer VAF -
Aggressive Growth Fund:
Tax qualified ............................ 31,285 11.131696 348,255 17%
Non-tax qualified ........................ 41,084 11.131696 457,335 17%
Oppenheimer VAF - Growth Fund:
Tax qualified ............................ 74,639 11.439431 853,828 16%
Non-tax qualified ........................ 65,551 11.439431 749,866 16%
Oppenheimer VAF -
Growth & Income Fund:
Tax qualified ............................ 57,036 11.539629 658,174 12%
Non-tax qualified ........................ 111,100 11.539629 1,282,053 12%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ............................ 21,616 6.772664 146,398 (23)%
Non-tax qualified ........................ 27,141 6.772664 183,817 (23)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified ............................ 11,978 7.740146 92,711 (14)%
Non-tax qualified ........................ 12,308 7.740146 95,266 (14)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio:
Tax qualified ............................ 34,860 9.781520 340,984 (5)%
Non-tax qualified ........................ 58,670 9.781520 573,882 (5)%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified ............................ 11,946 11.596337 138,530 12%
Non-tax qualified ........................ 48,754 11.596337 565,368 12%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified ............................ 30,456 10.650066 324,358 13%
Non-tax qualified ........................ 44,075 10.650066 469,402 13%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified ............................ 10,981 11.093373 121,816 13%
Non-tax qualified ........................ 15,499 11.093373 171,936 13%
====== ========= ---------------
$ 1,321,206,631
===============
</TABLE>
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<S> <C>
NATIONWIDE LIFE INSURANCE COMPANY ------------------
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
------------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
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