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<PAGE> 1
['97 GRAPHIC]
Nationwide(R) Variable Account - 9
December 31, 1997
[BEST OF AMERICA GRAPHIC]
ANNUAL REPORT
[NATIONWIDE LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
<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 bring you the
1997 annual report of the Nationwide Variable Account-9.
Equity markets ended a volatile season to record the third straight
year of gains topping the 20 percent mark. Additionally, returns on
fixed income investments were buoyed by declining inflation, steady
Federal Reserve policy and the positive outlook for lower budget
deficits.
The U.S. economy continues to be strong into 1998. However, there is
still much uncertainty about what effect the Southeast Asian crisis
will have on our economy during this year. The obvious result, we
believe, will be a slowing of economic growth due to reduced
exports, restrained pricing flexibility and lower corporate profits.
We expect the Federal Reserve will continue to stay on the sidelines
as the Southeast Asian economic turmoil plays out. At the same time,
low inflation and low interest rates should continue to provide a
healthy environment for financial assets.
We are committed to our customers as our most valuable asset. Our
commitment to you is to continue to add value to our products and
services to help you achieve your financial planning and retirement
goals. As always, we welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
2
<PAGE> 3
NATIONWIDE VARIABLE ACCOUNT-9
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1997
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
84,893 shares (cost $450,578) ................................................ $ 457,574
American Century VP - American Century VP International (ACVPInt)
80,394 shares (cost $542,059) ................................................ 549,894
American Century VP - American Century VP Value (ACVPValue)
196,160 shares (cost $1,338,005) ............................................. 1,359,390
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
34,310 shares (cost $860,435) ................................................ 856,728
Dreyfus Stock Index Fund (DryStkIx)
237,689 shares (cost $6,131,037) ............................................. 6,120,488
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
33,406 shares (cost $933,581) ................................................ 932,024
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEI)
219,066 shares (cost $5,236,886) ............................................. 5,316,739
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGr)
54,069 shares (cost $1,982,184) .............................................. 2,005,421
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHI)
214,286 shares (cost $2,891,778) ............................................. 2,907,867
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOv)
47,969 shares (cost $915,194) ................................................ 921,008
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPCon)
186,227 shares (cost $3,654,849) ............................................. 3,711,501
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOp)
133,797 shares (cost $2,533,275) ............................................. 2,578,274
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
20,291 shares (cost $198,057) ................................................ 196,210
Nationwide SAT - Balanced Fund (NSATBal)
88,368 shares (cost $887,470) ................................................ 892,518
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
125,479 shares (cost $2,670,893) ............................................. 2,661,401
Nationwide SAT - Equity Income Fund (NSATEqInc)
58,341 shares (cost $583,644) ................................................ 592,744
Nationwide SAT - Global Equities Fund (NSATGlobEq)
50,842 shares (cost $510,241) ................................................ 513,508
Nationwide SAT - Government Bond Fund (NSATGvtBd)
278,560 shares (cost $3,197,266) ............................................. 3,170,007
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
90,314 shares (cost $915,644) ................................................ 913,981
Nationwide SAT - Money Market Fund (NSATMyMkt)
13,547,449 shares (cost $13,547,449) ......................................... 13,547,449
</TABLE>
(Continued)
3
<PAGE> 4
<TABLE>
<S> <C>
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
103,611 shares (cost $1,041,445) ............................................. 1,041,294
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
23,045 shares (cost $223,629) ................................................ 229,068
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
118,195 shares (cost $1,152,448) ............................................. 1,157,126
Nationwide SAT - Small Company Fund (NSATSmCo)
98,316 shares (cost $1,579,198) .............................................. 1,558,309
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
31,934 shares (cost $317,603) ................................................ 326,042
Nationwide SAT - Strategic Value Fund (NSATStrVal)
47,632 shares (cost $479,420) ................................................ 483,462
Nationwide SAT - Total Return Fund (NSATTotRe)
369,863 shares (cost $6,138,365) ............................................. 6,058,352
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
43,903 shares (cost $450,063) ................................................ 461,856
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
134,925 shares (cost $1,507,668) ............................................. 1,581,319
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
648,620 shares (cost $13,284,917) ............................................ 13,361,565
Oppenheimer VAF - Capital Appreciation Fund (OppCapAp)
17,589 shares (cost $715,409) ................................................ 720,432
Oppenheimer VAF - Growth Fund (OppGro)
29,292 shares (cost $940,476) ................................................ 950,219
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
52,688 shares (cost $1,059,047) .............................................. 1,084,321
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
59,776 shares (cost $653,391) ................................................ 657,534
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
14,006 shares (cost $216,855) ................................................ 220,174
Van Kampen American Capital LIT -
Morgan Stanley Real Estate Securities Portfolio (MSRESec)
66,892 shares (cost $1,120,342) .............................................. 1,060,238
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
42,112 shares (cost $428,967) ................................................ 435,022
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
77,526 shares (cost $857,239) ................................................ 813,248
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
12,882 shares (cost $140,450) ................................................ 142,473
---------
Total investments ......................................................... 82,546,780
Accounts receivable ................................................................ 3,013
---------
Total assets .............................................................. 82,549,793
ACCOUNTS PAYABLE ...................................................................... 364,121
---------
CONTRACT OWNERS' EQUITY (NOTE 4) $ 82,185,672
=========
</TABLE>
See accompanying notes to financial statements.
4
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT - 9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS)
THROUGH DECEMBER 31, 1997
<TABLE>
<CAPTION>
TOTAL ACVPINCGR ACVPINT ACVPVALUE
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends........................... $ 184,101 -- -- --
Mortality and expense risk charges (note 2).... (44,505) (231) (247) (638)
----------- ----------- ----------- -----------
Net investment activity........................ 139,596 (231) (247) (638)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold............ 1,928,035 3,255 -- --
Cost of mutual fund shares sold.................. (1,932,025) (3,092) -- --
----------- ----------- ----------- -----------
Realized gain (loss) on investments............ (3,990) 163 -- --
Change in unrealized gain (loss) on investments.. 259,323 6,996 7,835 21,385
----------- ----------- ----------- -----------
Net gain (loss) on investments................. 255,333 7,159 7,835 21,385
----------- ----------- ----------- -----------
Reinvested capital gains......................... 478,503 -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations........... 873,432 6,928 7,588 20,747
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 81,649,336 389,541 451,373 929,382
Transfers between funds....................... -- 61,740 90,951 410,117
Redemptions................................... (339,129) (635) (18) (856)
Contingent deferred sales charges (note 2).... (409) -- -- --
Adjustments to maintain reserves.............. 2,442 5 4 8
----------- ----------- ----------- -----------
Net equity transactions..................... 81,312,240 450,651 542,310 1,338,651
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 82,185,672 457,579 549,898 1,359,398
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD..... -- -- -- --
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD........... $82,185,672 457,579 549,898 1,359,398
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
DRYSRGRO DRYSTKIX DRYCAPAP FIDVIPEI
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends........................... 2,537 19,230 4,948 --
Mortality and expense risk charges (note 2).... (432) (2,973) (430) (2,576)
----------- ----------- ----------- -----------
Net investment activity........................ 2,105 16,257 4,518 (2,576)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold............ -- 53,202 -- 72,868
Cost of mutual fund shares sold.................. -- (55,328) -- (74,460)
----------- ----------- ----------- -----------
Realized gain (loss) on investments............ -- (2,126) -- (1,592)
Change in unrealized gain (loss) on investments.. (3,707) (10,549) (1,557) 79,853
----------- ----------- ----------- -----------
Net gain (loss) on investments................. (3,707) (12,675) (1,557) 78,261
----------- ----------- ----------- -----------
Reinvested capital gains......................... 20,741 83,330 414 --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'..
equity resulting from operations........... 19,139 86,912 3,375 75,685
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 806,446 5,885,293 894,637 4,978,409
Transfers between funds....................... 32,713 151,175 34,011 268,956
Redemptions................................... (1,570) (3,783) -- (7,395)
Contingent deferred sales charges (note 2).... -- -- -- --
Adjustments to maintain reserves.............. (4) 1,038 (1) 1,150
----------- ----------- ----------- -----------
Net equity transactions..................... 837,585 6,033,723 928,647 5,241,120
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 856,724 6,120,635 932,022 5,316,805
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD..... -- -- -- --
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 856,724 6,120,635 932,022 5,316,805
=========== =========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT - 9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS)
THROUGH DECEMBER 31, 1997
<TABLE>
<CAPTION>
FIDVIPGR FIDVIPHI FIDVIPOV FIDVIPCON
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends........................... $ - - - -
Mortality and expense risk charges (note 2).... (956) (1,568) (438) (2,331)
-------------- ----------- -------- ----------
Net investment activity........................ (956) (1,568) (438) (2,331)
-------------- ----------- -------- ----------
Proceeds from mutual fund shares sold............ 24,231 - 5,931 -
Cost of mutual fund shares sold.................. (24,000) - (5,843) -
-------------- ----------- -------- ----------
Realized gain (loss) on investments............ 231 - 88 -
Change in unrealized gain (loss) on investments.. 23,237 16,089 5,814 56,652
-------------- ----------- -------- ----------
Net gain (loss) on investments................. 23,468 16,089 5,902 56,652
-------------- ----------- -------- ----------
Reinvested capital gains......................... - - - -
-------------- ----------- -------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations........... 22,512 14,521 5,464 54,321
-------------- ----------- -------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 1,981,907 2,761,595 757,896 3,573,555
Transfers between funds....................... 1,697 132,705 157,648 83,693
Redemptions................................... (577) (954) - (70)
Contingent deferred sales charges (note 2).... - - - -
Adjustments to maintain reserves.............. (111) (1) (2) 7
-------------- ----------- -------- ----------
Net equity transactions..................... 1,982,916 2,893,345 915,542 3,657,185
-------------- ----------- -------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 2,005,428 2,907,866 921,006 3,711,506
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD..... $ - - - -
-------------- ----------- -------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 2,005,428 2,907,866 921,006 3,711,506
============== =========== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
FIDVIPGROP MSEMMKT NSATBAL NSATCAPAP
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends........................... - 3,740 3,951 5,462
Mortality and expense risk charges (note 2).... (1,137) (110) (459) (1,430)
---------- ------ --------- ---------
Net investment activity........................ (1,137) 3,630 3,492 4,032
---------- ------ --------- ---------
Proceeds from mutual fund shares sold............ 3 810 - -
Cost of mutual fund shares sold.................. (3) (823) - -
---------- ------ --------- ---------
Realized gain (loss) on investments............ - - - -
Change in unrealized gain (loss) on investments.. 44,999 (1,847) 5,048 (9,492)
---------- ------ --------- ---------
Net gain (loss) on investments................. 44,999 (1,860) 5,048 (9,492)
---------- ------ --------- ---------
Reinvested capital gains......................... - 1,623 - 52,894
---------- ------ --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations........... 43,862 3,393 8,540 47,434
---------- ------ --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 2,201,875 185,958 818,465 2,528,751
Transfers between funds....................... 332,841 6,858 65,644 88,972
Redemptions................................... (304) - (90) (3,756)
Contingent deferred sales charges (note 2).... - - - -
Adjustments to maintain reserves.............. (4) (1) (26) 4
---------- ------ --------- ---------
Net equity transactions..................... 2,534,408 192,815 883,993 2,613,971
---------- ------ --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 2,578,270 196,208 892,533 2,661,405
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD..... - - - -
---------- ------- ------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 2,578,270 196,208 892,533 2,661,405
========== ======= ======== =========
</TABLE>
6
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT - 9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS)
THROUGH DECEMBER 31, 1997
<TABLE>
<CAPTION>
NSATEqInc NSATGlobEq NSATGvtBd NSATHIncBd
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends $ 989 871 46,514 9,587
Mortality and expense risk charges note 2) (411) (326) (1,730) (637)
--------- --------- ---------- ---------
Net investment activity 578 545 44,784 8,950
--------- --------- ---------- ---------
Proceeds from mutual fund shares sold 2 - 24,775 663
Cost of mutual fund shares sold (3) - (24,775) (653)
--------- --------- ---------- ---------
Realized gain (loss) on investments (1) - - 10
Change in unrealized gain (loss) on investments 9,100 3,267 (27,259) (1,663)
--------- --------- ---------- ---------
Net gain (loss) on investments 9,099 3,267 (27,259) (1,653)
--------- --------- ---------- ---------
Reinvested capital gains - - - -
--------- --------- ---------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations 9,677 3,812 17,525 7,297
--------- --------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners 524,315 505,387 3,147,571 762,946
Transfers between funds 58,870 4,389 4,912 144,381
Redemptions (135) - - (643)
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves 14 (105) 1 -
--------- --------- ---------- ---------
Net equity transactions 583,064 509,671 3,152,484 906,684
--------- --------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY 592,741 513,483 3,170,009 913,981
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
CONTRACT OWNERS' EQUITY END OF PERIOD --------- --------- ---------- ---------
$ 592,741 513,483 3,170,009 913,981
========= ========= ========== =========
</TABLE>
<TABLE>
<CAPTION>
NSATMyMkt NSATMSecBd NSATMidCap NSATSmCapV
----------- ----------- ----------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends 35,527 5,220 535 590
Mortality and expense risk charges note 2) (7,038) (610) (121) (603)
------------ ---------- ---------- -----------
Net investment activity 28,489 4,610 414 (13)
------------ ---------- ---------- -----------
Proceeds from mutual fund shares sold 772,983 3 - -
Cost of mutual fund shares sold (772,983) (3) - -
------------ ---------- ---------- -----------
Realized gain (loss) on investments - - - -
Change in unrealized gain (loss) on investments - (151) 5,439 4,678
------------ ---------- ---------- -----------
Net gain (loss) on investments - (151) 5,439 4,678
------------ ---------- ---------- -----------
Reinvested capital gains - - - 4,611
------------ ---------- ---------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations 28,489 4,459 5,853 9,276
------------ ---------- ---------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners 16,698,066 862,594 205,427 1,082,589
Transfers between funds (3,252,991) 174,229 20,348 65,401
Redemptions (289,851) - - -
Contingent deferred sales charges (note 2) (409) - - -
Adjustments to maintain reserves 2,636 14 (7) (112)
------------ ---------- ---------- -----------
Net equity transactions 13,157,451 1,036,837 223,209 1,147,878
------------ ---------- ---------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY 13,185,940 1,041,296 229,062 1,157,154
Contract owners' equity beginning of period - - - -
Contract owners' equity end of period ------------ ---------- ---------- -----------
13,185,940 1,041,296 229,062 1,157,154
============ ========== ========== ===========
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT - 9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS)
THROUGH DECEMBER 31, 1997
<TABLE>
<CAPTION>
NSATSmCo NSATStrGro NSATStrVal NSATTotRe
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends $ -- 301 542 15,396
Mortality and expense risk charges (note 2) (936) (150) (222) (3,422)
----------- ----------- ----------- -----------
Net investment activity (936) 151 320 11,974
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold -- 1 -- --
Cost of mutual fund shares sold -- (1) -- --
----------- ----------- ----------- -----------
Realized gain (loss) on investments -- -- -- --
Change in unrealized gain (loss) on investments (20,889) 8,439 4,042 (80,013)
----------- ----------- ----------- -----------
Net gain (loss) on investments (20,889) 8,439 4,042 (80,013)
----------- ----------- ----------- -----------
Reinvested capital gains 39,296 -- -- 175,028
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations 17,471 8,590 4,362 106,989
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners 1,396,707 310,341 364,129 5,708,934
Transfers between funds 144,223 7,111 114,972 247,938
Redemptions (19) -- -- (5,049)
Contingent deferred sales charges (note 2) -- -- -- --
Adjustments to maintain reserves (67) -- -- (666)
----------- ----------- ----------- -----------
Net equity transactions 1,540,844 317,452 479,101 5,951,157
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY 1,558,315 326,042 483,463 6,058,146
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD -- -- -- --
CONTRACT OWNERS' EQUITY END OF PERIOD $1,558,315 326,042 483,463 6,058,146
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NBAMTGuard NBAMTMCGr NBAMTPart OppCapAp
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends -- -- -- --
Mortality and expense risk charges (note 2) (322) (702) (7,474) (478)
----------- ----------- ----------- -----------
Net investment activity (322) (702) (7,474) (478)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold 34 2 9,558 1,574
Cost of mutual fund shares sold (32) (2) (8,600) (1,616)
----------- ----------- ----------- -----------
Realized gain (loss) on investments 2 -- (43) (52)
Change in unrealized gain (loss) on investments 11,793 73,651 76,648 5,023
----------- ----------- ----------- -----------
Net gain (loss) on investments 11,795 73,651 76,605 4,971
----------- ----------- ----------- -----------
Reinvested capital gains -- -- -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations 11,473 72,949 69,131 4,493
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners 399,649 1,023,027 12,820,732 690,779
Transfers between funds 51,821 488,359 483,875 25,316
Redemptions -- (3,016) (12,173) (192)
Contingent deferred sales charges (note 2) -- -- -- --
Adjustments to maintain reserves (876) 3 21 45
----------- ----------- ----------- -----------
Net equity transactions 450,594 1,508,373 13,292,455 715,948
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY 462,067 1,581,322 13,361,586 720,441
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD -- -- -- --
CONTRACT OWNERS' EQUITY END OF PERIOD 462,067 1,581,322 13,361,586 720,441
=========== =========== =========== ===========
</TABLE>
8
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT - 9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF OPERATIONS)
THROUGH DECEMBER 31, 1997
<TABLE>
<CAPTION>
OPPGRO OPPGRINC VEWRLDMKT VEWRLDHAS
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends $ -- 1,975 -- --
Mortality and expense risk charges (note 2) (469) (674) (590) (111)
---------- ---------- ---------- ----------
Net investment activity (469) 1,301 (590) (111)
---------- ---------- ---------- ----------
Proceeds from mutual fund shares sold -- 8 505,309 --
Cost of mutual fund shares sold -- (8) (492,562) --
---------- ---------- ---------- ----------
Realized gain (loss) on investments -- -- 12,747 --
Change in unrealized gain (loss) on investments 9,743 25,274 4,143 3,319
---------- ---------- ---------- ----------
Net gain (loss) on investments 9,743 25,274 16,890 3,319
---------- ---------- ---------- ----------
Reinvested capital gains -- -- -- --
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations 9,274 26,575 16,300 3,208
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners 933,456 953,722 1,193,031 178,412
Transfers between funds 7,668 104,635 (549,841) 38,553
Redemptions (27) (199) (1,956) --
Contingent deferred sales charges (note 2) -- -- -- --
---------- ---------- ---------- ----------
Adjustments to maintain reserves (138) (358) 2 6
---------- ---------- ---------- ----------
Net equity transactions 940,959 1,057,800 641,236 216,971
---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY 950,233 1,084,375 657,536 220,179
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD -- -- -- --
$ ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD 950,233 1,084,375 657,536 220,179
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MSRESEC WPGRINC WPINTEQ WPPVENCAP
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends 19,701 1,508 4,961 16
Mortality and expense risk charges note 2) (545) (219) (469) (290)
---------- ---------- ---------- ----------
Net investment activity 19,156 1,289 4,492 (274)
---------- ---------- ---------- ----------
Proceeds from mutual fund shares sold -- -- 5,961 447,873
Cost of mutual fund shares sold -- -- (6,534) (460,704)
---------- ---------- ---------- ----------
Realized gain (loss) on investments -- -- (573) (12,831)
Change in unrealized gain (loss) on investments (60,104) 6,055 (43,991) 2,023
---------- ---------- ---------- ----------
Net gain (loss) on investments (60,104) 6,055 (44,564) (10,808)
---------- ---------- ---------- ----------
Reinvested capital gains 66,235 -- 34,331 --
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations 25,287 7,344 (5,741) (11,082)
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners 917,137 402,032 838,600 584,670
Transfers between funds 117,890 25,646 (19,613) (427,813)
Redemptions -- -- -- (3,302)
Contingent deferred sales charges (note 2) -- -- -- --
---------- ---------- ---------- ----------
Adjustments to maintain reserves (46) (2) 11 --
---------- ---------- ---------- ----------
Net equity transactions 1,034,981 427,676 818,998 153,555
---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY 1,060,268 435,020 813,257 142,473
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD -- -- -- --
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD 1,060,268 435,020 813,257 142,473
========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-9
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
(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 VIP);
Fidelity VIP - Equity-Income Portfolio - Service Class
(FidVIPEI)
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGr)
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHI)
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOv)
Portfolio of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Contrafund Portfolio - Service Class
(FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio - Service
Class (FidVIPGrOp)
Portfolio of the Morgan Stanley Universal Funds, Inc.
(Morgan Stanley); Morgan Stanley - Emerging Markets
Debt Portfolio (MSEmMkt)
10
<PAGE> 11
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)
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 - Capital Appreciation Fund (OppCapAp)
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 (MSRESec)
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 December 31, 1997, 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 December 31, 1997. 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.
11
<PAGE> 12
(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.
(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).
The following table provides mortality, expense and administration charges
by contract type for the period ended December 31, 1997:
<TABLE>
<CAPTION>
TOTAL ACVPINCGR ACVPINT ACVPVALUE DRYSRGRO
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
BOA Future (Base)............... $ 26,321 119 169 235 245
BOA Future (Rider Option 1)..... 13,431 83 58 348 157
BOA Future (Rider Option 2)..... 4,753 29 20 55 30
------------ ------------ ------------ ------------ ------------
Total....................... $ 44,505 231 247 638 432
============ ============ ============ ============ ============
DRYSTKIX DRYCAPAP FIDVIPEI FIDVIPGR FIDVIPHI
------------ ------------ ------------ ------------ ------------
BOA Future (Base)............... $ 1,875 267 1,422 572 1,047
BOA Future (Rider Option 1)..... 946 133 815 312 382
BOA Future (Rider Option 2)..... 152 30 339 72 139
------------ ------------ ------------ ------------ ------------
Total....................... $ 2,973 430 2,576 956 1,568
============ ============ ============ ============ ============
FIDVIPOV FIDVIPCON FIDVIPGROP MSEMMKT NSATBAL
------------ ------------ ------------ ------------ ------------
BOA Future (Base)............... $ 303 1,607 596 54 195
BOA Future (Rider Option 1)..... 95 564 418 40 154
BOA Future (Rider Option 2)..... 40 160 123 16 110
------------ ------------ ------------ ------------ ------------
Total....................... $ 438 2,331 1,137 110 459
============ ============ ============ ============ ============
NSATCAPAP NSATEQINC NSATGLOBEQ NSATGVTBD NSATHINCBD
------------ ------------ ------------ ------------ ------------
BOA Future (Base)............... $ 739 265 165 1,060 359
BOA Future (Rider Option 1)..... 447 116 116 369 153
BOA Future (Rider Option 2)..... 244 30 45 301 125
------------ ------------ ------------ ------------ ------------
Total....................... $ 1,430 411 326 1,730 637
============ ============ ============ ============ ============
NSATMYMKT NSATMSECBD NSATMIDCAP NSATSMCAPV NSATSMCO
------------ ------------ ------------ ------------ ------------
BOA Future (Base)............... $ 4,055 353 37 376 473
BOA Future (Rider Option 1)..... 1,841 186 62 190 380
BOA Future (Rider Option 2)..... 1,142 71 22 37 83
------------ ------------ ------------ ------------ ------------
Total....................... $ 7,038 610 121 603 936
============ ============ ============ ============ ============
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
NSATStrGro NSATStrVal NSATTotRe NBAMTGuard NBAMTMCGr
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
BOA Future (Base)............... $ 83 125 2,108 110 183
BOA Future (Rider Option 1)..... 44 66 945 158 427
BOA Future (Rider Option 2)..... 23 31 369 54 92
------------ ------------ ------------ ------------ ------------
Total....................... $ 150 222 3,422 322 702
============ ============ ============ ============ ============
NBAMTPart OppCapAp OppGro OppGrInc VEWrldEMkt
------------ ------------ ------------ ------------ ------------
BOA Future (Base)............... $ 5,247 275 182 341 204
BOA Future (Rider Option 1)..... 1,929 120 193 204 380
BOA Future (Rider Option 2)..... 298 83 94 129 6
------------ ------------ ------------ ------------ ------------
Total....................... $ 7,474 478 469 674 590
============ ============ ============ ============ ============
VEWrldHAs MSRESec WPGrInc WPIntEq WPPVenCap
------------ ------------ ------------ ------------ ------------
BOA Future (Base)............... $ 79 302 61 325 108
BOA Future (Rider Option 1)..... 15 166 130 112 177
BOA Future (Rider Option 2)..... 17 77 28 32 5
------------ ------------ ------------ ------------ ------------
Total....................... $ 111 545 219 469 290
============ ============ ============ ============ ============
</TABLE>
(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> 14
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31,
1997, for each series, in both the accumulation and payout phases.
<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 Annuity(SM) (Base):
American Century VP -
American Century VP Income & Growth:
Tax qualified 5,919 $ 10.409767 $ 61,615 4%
Non-tax qualified 14,727 10.409767 153,305 4%
American Century VP -
American Century VP International:
Tax qualified 11,451 10.088106 115,519 1%
Non-tax qualified 27,628 10.088106 278,714 1%
American Century VP -
American Century VP Value:
Tax qualified 32,890 10.296896 338,665 3%
Non-tax qualified 24,450 10.296896 251,759 3%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified 13,265 10.171132 134,920 2%
Non-tax qualified 28,338 10.171132 288,230 2%
Dreyfus Stock Index Fund:
Tax qualified 167,229 10.343734 1,729,772 3%
Non-tax qualified 220,208 10.343734 2,277,773 3%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified 23,139 10.249990 237,175 2%
Non-tax qualified 36,467 10.249990 373,786 2%
Fidelity VIP -
Equity-Income Portfolio - Service Class:
Tax qualified 124,825 10.338433 1,290,495 3%
Non-tax qualified 152,449 10.338433 1,576,084 3%
Fidelity VIP -
Growth Portfolio - Service Class:
Tax qualified 51,944 10.030842 521,042 0%
Non-tax qualified 64,880 10.030842 650,801 0%
Fidelity VIP -
High Income Portfolio - Service Class:
Tax qualified 90,815 10.126638 919,651 1%
Non-tax qualified 114,247 10.126638 1,156,938 1%
Fidelity VIP -
Overseas Portfolio - Service Class:
Tax qualified 29,834 9.902344 295,427 (1)%
Non-tax qualified 32,688 9.902344 323,688 (1)%
Fidelity VIP-II -
Contrafund Portfolio - Service Class:
Tax qualified 94,143 9.954885 937,183 0%
Non-tax qualified 137,715 9.954885 1,370,937 0%
</TABLE>
14
<PAGE> 15
<TABLE>
<S> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax qualified 65,917 10.400464 685,567 4%
Non-tax qualified 74,836 10.400464 778,329 4%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified 3,325 10.425451 34,665 4%
Non-tax qualified 5,093 10.425451 53,097 4%
Nationwide SAT - Balanced Fund:
Tax qualified 20,941 10.130674 212,146 1%
Non-tax qualified 23,584 10.130674 238,922 1%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified 76,048 10.385596 789,804 4%
Non-tax qualified 74,609 10.385596 774,859 4%
Nationwide SAT - Equity Income Fund:
Tax qualified 10,838 10.161693 110,132 2%
Non-tax qualified 27,331 10.161693 277,729 2%
Nationwide SAT - Global Equity Fund:
Tax qualified 15,788 10.102208 159,494 1%
Non-tax qualified 12,998 10.102208 131,308 1%
Nationwide SAT - Government Bond Fund:
Tax qualified 67,127 10.143182 680,881 1%
Non-tax qualified 138,589 10.143182 1,405,733 1%
Nationwide SAT - High Income Bond Fund:
Tax qualified 15,004 10.212505 153,228 2%
Non-tax qualified 33,703 10.212505 344,192 2%
Nationwide SAT - Money Market Fund:
Tax qualified 155,902 10.074129 1,570,577 1%
Non-tax qualified 581,682 10.074129 5,859,940 1%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified 13,658 10.088793 137,793 1%
Non-tax qualified 41,385 10.088793 417,525 1%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax qualified 3,322 9.949100 33,051 (1)%
Non-tax qualified 5,540 9.949100 55,118 (1)%
Nationwide SAT - Small Cap Value Fund:
Tax qualified 29,661 9.823904 291,387 (2)%
Non-tax qualified 42,125 9.823904 413,832 (2)%
Nationwide SAT - Small Company Fund:
Tax qualified 26,226 9.613184 252,115 (4)%
Non-tax qualified 60,510 9.613184 581,694 (4)%
Nationwide SAT - Strategic Growth Fund:
Tax qualified 7,333 10.204129 74,827 2%
Non-tax qualified 14,559 10.204129 148,562 2%
Nationwide SAT - Strategic Value Fund:
Tax qualified 12,123 10.147459 123,018 1%
Non-tax qualified 13,612 10.147459 138,127 1%
</TABLE>
(Continued)
15
<PAGE> 16
<TABLE>
<S> <C> <C> <C> <C>
Nationwide SAT - Total Return Fund:
Tax qualified 182,146 10.242940 1,865,711 2%
Non-tax qualified 197,787 10.242940 2,025,920 2%
Neuberger & Berman AMT -
Guardian Portfolio:
Tax qualified 5,387 10.504106 56,586 5%
Non-tax qualified 9,331 10.504106 98,014 5%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax qualified 24,058 11.702355 281,535 17%
Non-tax qualified 27,997 11.702355 327,631 17%
Neuberger & Berman AMT -
Partners Portfolio:
Tax qualified 123,308 10.132434 1,249,410 1%
Non-tax qualified 816,409 10.132434 8,272,210 1%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax qualified 17,204 9.533314 164,011 (5)%
Non-tax qualified 22,088 9.533314 210,572 (5)%
Oppenheimer VAF - Growth Fund:
Tax qualified 32,359 9.827325 318,002 (2)%
Non-tax qualified 11,808 9.827325 116,041 (2)%
Oppenheimer VAF -
Growth & Income Fund:
Tax qualified 18,417 10.259486 188,949 3%
Non-tax qualified 39,986 10.259486 410,236 3%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified 9,145 8.814851 80,612 (12)%
Non-tax qualified 18,343 8.814851 161,691 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified 10,008 8.979477 89,867 (10)%
Non-tax qualified 7,257 8.979477 65,164 (10)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio:
Tax qualified 32,778 10.338661 338,881 3%
Non-tax qualified 27,341 10.338661 282,669 3%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified 11,884 10.373620 123,280 4%
Non-tax qualified 1,514 10.373620 15,706 4%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified 23,146 9.454794 218,841 (5)%
Non-tax qualified 35,372 9.454794 334,435 (5)%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified 1,213 9.852750 11,951 (1)%
Non-tax qualified 7,662 9.852750 75,492 (1)%
</TABLE>
16
<PAGE> 17
<TABLE>
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
America's FUTURE Annuity(SM) (Rider Option 1):
American Century VP -
American Century VP Income & Growth:
Tax qualified 11,674 10.408936 121,514 4%
Non-tax qualified 5,571 10.408936 57,988 4%
American Century VP -
American Century VP International:
Tax qualified 3,170 10.087297 31,977 1%
Non-tax qualified 9,299 10.087297 93,802 1%
American Century VP -
American Century VP Value:
Tax qualified 42,338 10.296077 435,915 3%
Non-tax qualified 22,796 10.296077 234,709 3%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified 21,267 10.170317 216,292 2%
Non-tax qualified 13,946 10.170317 141,835 2%
Dreyfus Stock Index Fund:
Tax qualified 79,005 10.342909 817,142 3%
Non-tax qualified 103,007 10.342909 1,065,392 3%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified 16,809 10.249171 172,278 2%
Non-tax qualified 10,034 10.249171 102,840 2%
Fidelity VIP -
Equity-Income Portfolio - Service Class:
Tax qualified 80,230 10.337608 829,386 3%
Non-tax qualified 101,670 10.337608 1,051,025 3%
Fidelity VIP -
Growth Portfolio - Service Class:
Tax qualified 26,495 10.030041 265,746 0%
Non-tax qualified 42,184 10.030041 423,107 0%
Fidelity VIP -
High Income Portfolio - Service Class:
Tax qualified 28,809 10.125825 291,715 1%
Non-tax qualified 38,172 10.125825 386,523 1%
Fidelity VIP -
Overseas Portfolio - Service Class:
Tax qualified 6,886 9.901549 68,182 (1)%
Non-tax qualified 13,646 9.901549 135,117 (1)%
Fidelity VIP-II -
Contrafund Portfolio - Service Class:
Tax qualified 52,859 9.954090 526,163 0%
Non-tax qualified 61,145 9.954090 608,643 0%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax qualified 50,299 10.399630 523,091 4%
Non-tax qualified 34,840 10.399630 362,323 4%
</TABLE>
(Continued)
17
<PAGE> 18
<TABLE>
<S> <C> <C> <C> <C>
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified 4,517 10.424614 47,088 4%
Non-tax qualified 4,151 10.424614 43,273 4%
Nationwide SAT - Balanced Fund:
Tax qualified 18,660 10.129864 189,023 1%
Non-tax qualified 7,268 10.129864 73,624 1%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified 42,993 10.384765 446,472 4%
Non-tax qualified 34,299 10.384765 356,187 4%
Nationwide SAT - Equity Income Fund:
Tax qualified 10,109 10.160882 102,716 2%
Non-tax qualified 4,986 10.160882 50,662 2%
Nationwide SAT - Global Equity Fund:
Tax qualified 10,785 10.101401 108,944 1%
Non-tax qualified 5,708 10.101401 57,659 1%
Nationwide SAT - Government Bond Fund:
Tax qualified 35,843 10.142367 363,533 1%
Non-tax qualified 31,348 10.142367 317,943 1%
Nationwide SAT - High Income Bond Fund:
Tax qualified 15,211 10.211688 155,330 2%
Non-tax qualified 7,868 10.211688 80,346 2%
Nationwide SAT - Money Market Fund:
Tax qualified 172,291 10.073279 1,735,535 1%
Non-tax qualified 228,200 10.073279 2,298,722 1%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified 22,440 10.087985 226,374 1%
Non-tax qualified 12,227 10.087985 123,346 1%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax qualified 5,466 9.948304 54,377 (1)%
Non-tax qualified 4,072 9.948304 40,509 (1)%
Nationwide SAT - Small Cap Value Fund:
Tax qualified 16,510 9.823118 162,180 (2)%
Non-tax qualified 20,577 9.823118 202,130 (2)%
Nationwide SAT - Small Company Fund:
Tax qualified 30,320 9.612411 291,448 (4)%
Non-tax qualified 32,541 9.612411 312,797 (4)%
Nationwide SAT - Strategic Growth Fund:
Tax qualified 3,708 10.203313 37,834 2%
Non-tax qualified 2,921 10.203313 29,804 2%
Nationwide SAT - Strategic Value Fund:
Tax qualified 3,022 10.146650 30,663 1%
Non-tax qualified 13,153 10.146650 133,459 1%
Nationwide SAT - Total Return Fund:
Tax qualified 84,236 10.242118 862,755 2%
Non-tax qualified 76,652 10.242118 785,079 2%
</TABLE>
18
<PAGE> 19
<TABLE>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Guardian Portfolio:
Tax qualified 8,001 10.503269 84,037 5%
Non-tax qualified 14,929 10.503269 156,803 5%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax qualified 56,145 11.701424 656,976 17%
Non-tax qualified 16,768 11.701424 196,209 17%
Neuberger & Berman AMT -
Partners Portfolio:
Tax qualified 195,515 10.131623 1,980,884 1%
Non-tax qualified 133,165 10.131623 1,349,178 1%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax qualified 11,021 9.532548 105,058 (5)%
Non-tax qualified 10,675 9.532548 101,760 (5)%
Oppenheimer VAF - Growth Fund:
Tax qualified 26,012 9.826536 255,608 (2)%
Non-tax qualified 16,143 9.826536 158,630 (2)%
Oppenheimer VAF -
Growth & Income Fund:
Tax qualified 15,547 10.258664 159,491 3%
Non-tax qualified 15,661 10.258664 160,661 3%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified 30,479 8.814146 268,646 (12)%
Non-tax qualified 15,119 8.814146 133,261 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified 765 8.978753 6,869 (10)%
Non-tax qualified 4,496 8.978753 40,368 (10)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio:
Tax qualified 8,443 10.337835 87,282 3%
Non-tax qualified 23,459 10.337835 242,515 3%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified 10,462 10.372788 108,520 4%
Non-tax qualified 11,043 10.372788 114,547 4%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified 9,501 9.454036 89,823 (5)%
Non-tax qualified 11,346 9.454036 107,265 (5)%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified 1,263 9.851960 12,443 (1)%
Non-tax qualified 1,127 9.851960 11,103 (1)%
</TABLE>
(Continued)
19
<PAGE> 20
<TABLE>
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
America's FUTURE Annuity(SM) (Rider Option 2):
American Century VP -
American Century VP Income & Growth:
Tax qualified 832 10.408098 8,660 4%
Non-tax qualified 5,236 10.408098 54,497 4%
American Century VP -
American Century VP International:
Tax qualified 698 10.086493 7,040 1%
Non-tax qualified 2,265 10.086493 22,846 1%
American Century VP -
American Century VP Value:
Tax qualified 1,336 10.295249 13,754 3%
Non-tax qualified 8,217 10.295249 84,596 3%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified 4,821 10.169503 49,027 2%
Non-tax qualified 2,598 10.169503 26,420 2%
Dreyfus Stock Index Fund:
Tax qualified 9,203 10.342079 95,178 3%
Non-tax qualified 13,090 10.342079 135,378 3%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified 3,777 10.248351 38,708 2%
Non-tax qualified 706 10.248351 7,235 2%
Fidelity VIP -
Equity-Income Portfolio - Service Class:
Tax qualified 18,611 10.336779 192,378 3%
Non-tax qualified 36,514 10.336779 377,437 3%
Fidelity VIP -
Growth Portfolio - Service Class:
Tax qualified 4,718 10.029235 47,318 0%
Non-tax qualified 9,713 10.029235 97,414 0%
Fidelity VIP -
High Income Portfolio - Service Class:
Tax qualified 2,418 10.125013 24,482 1%
Non-tax qualified 12,697 10.125013 128,557 1%
Fidelity VIP -
Overseas Portfolio - Service Class:
Tax qualified 887 9.900760 8,782 (1)%
Non-tax qualified 9,071 9.900760 89,810 (1)%
Fidelity VIP-II -
Contrafund Portfolio - Service Class:
Tax qualified 12,678 9.953285 126,188 0%
Non-tax qualified 14,306 9.953285 142,392 0%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class:
Tax qualified 8,419 10.398800 87,547 4%
Non-tax qualified 13,599 10.398800 141,413 4%
</TABLE>
20
<PAGE> 21
<TABLE>
<S> <C> <C> <C> <C>
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified 204 10.423780 2,126 4%
Non-tax qualified 1,531 10.423780 15,959 4%
Nationwide SAT - Balanced Fund:
Tax qualified 4,261 10.129053 43,160 1%
Non-tax qualified 13,393 10.129053 135,658 1%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified 4,967 10.383931 51,577 4%
Non-tax qualified 23,354 10.383931 242,506 4%
Nationwide SAT - Equity Income Fund:
Tax qualified 2,466 10.160070 25,055 2%
Non-tax qualified 2,603 10.160070 26,447 2%
Nationwide SAT - Global Equity Fund:
Tax qualified 1,682 10.100588 16,989 1%
Non-tax qualified 3,870 10.100588 39,089 1%
Nationwide SAT - Government Bond Fund:
Tax qualified 17,678 10.141552 179,282 1%
Non-tax qualified 21,953 10.141552 222,637 1%
Nationwide SAT - High Income Bond Fund:
Tax qualified 2,543 10.210867 25,966 2%
Non-tax qualified 15,172 10.210867 154,919 2%
Nationwide SAT - Money Market Fund:
Tax qualified 109,198 10.072429 1,099,889 1%
Non-tax qualified 61,681 10.072429 621,277 1%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified 2,097 10.087176 21,153 1%
Non-tax qualified 11,411 10.087176 115,105 1%
Nationwide SAT -
Select Advisers Mid Cap Fund:
Tax qualified 2,671 9.947507 26,570 (1)%
Non-tax qualified 1,954 9.947507 19,437 (1)%
Nationwide SAT - Small Cap Value Fund:
Tax qualified 3,373 9.822329 33,131 (2)%
Non-tax qualified 5,548 9.822329 54,494 (2)%
Nationwide SAT - Small Company Fund:
Tax qualified 453 9.611642 4,354 (4)%
Non-tax qualified 12,059 9.611642 115,907 (4)%
Nationwide SAT - Strategic Growth Fund:
Tax qualified 201 10.202497 2,051 2%
Non-tax qualified 3,231 10.202497 32,964 2%
Nationwide SAT - Strategic Value Fund:
Tax qualified 227 10.145838 2,303 1%
Non-tax qualified 5,509 10.145838 55,893 1%
Nationwide SAT - Total Return Fund:
Tax qualified 13,269 10.241300 135,892 2%
Non-tax qualified 37,377 10.241300 382,789 2%
</TABLE>
(Continued)
21
<PAGE> 22
<TABLE>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Guardian Portfolio:
Tax qualified 590 10.502434 6,196 5%
Non-tax qualified 5,754 10.502434 60,431 5%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio:
Tax qualified 3,696 11.700489 43,245 17%
Non-tax qualified 6,472 11.700489 75,726 17%
Neuberger & Berman AMT -
Partners Portfolio:
Tax qualified 9,975 10.130813 101,055 1%
Non-tax qualified 40,357 10.130813 408,849 1%
Oppenheimer VAF -
Capital Appreciation Fund:
Tax qualified 3,437 9.531780 32,761 (5)%
Non-tax qualified 11,150 9.531780 106,279 (5)%
Oppenheimer VAF - Growth Fund:
Tax qualified 2,404 9.825746 23,621 (2)%
Non-tax qualified 7,972 9.825746 78,331 (2)%
Oppenheimer VAF -
Growth & Income Fund:
Tax qualified 1,064 10.257840 10,914 3%
Non-tax qualified 15,025 10.257840 154,124 3%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified 733 8.813437 6,460 (12)%
Non-tax qualified 779 8.813437 6,866 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified 206 8.978030 1,849 (10)%
Non-tax qualified 1,789 8.978030 16,062 (10)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio:
Tax qualified 416 10.337004 4,300 3%
Non-tax qualified 10,121 10.337004 104,621 3%
Warburg Pincus Trust -
Growth & Income Portfolio:
Tax qualified 2,908 10.371958 30,162 4%
Non-tax qualified 4,127 10.371958 42,805 4%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified 866 9.453278 8,187 (5)%
Non-tax qualified 5,787 9.453278 54,706 (5)%
Warburg Pincus Trust -
Post Venture Capital Portfolio:
Tax qualified 830 9.851173 8,176 (1)%
Non-tax qualified 2,366 9.851173 23,308 (1)%
======== ========= -----------
$82,185,672
===========
</TABLE>
22
<PAGE> 23
Independent Auditors' Report
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide Variable Account-9:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide Variable Account-9 as of December 31,
1997, and the related statement of operations and changes in contract owners'
equity for the period November 3, 1997 (commencement of operations) through
December 31, 1997. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Nationwide Variable
Account-9 as of December 31, 1997, and the results of its operations and its
changes in contract owners' equity for the period November 3, 1997 (commencement
of operations) through December 31, 1997, in conformity with generally accepted
accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 6, 1998
23
<PAGE> 24
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
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