<PAGE> 1
NATIONWIDE LIFE INSURANCE COMPANY
Modified Single Premium Deferred Variable Annuity Contracts
Issued by Nationwide Life Insurance Company through
its Nationwide Variable Account-9
The date of this prospectus is May 1, 2000.
- --------------------------------------------------------------------------------
Variable annuities are complex investment products with unique benefits and
advantages that may be particularly useful to many investors in meeting
long-term savings and retirement needs. There are, however, costs and charges
associated with some of these unique benefits - costs and charges that do not
exist or are not present with other investment products. With help from
financial consultants or advisers, investors are encouraged to compare and
contrast the costs and benefits of the variable annuity described in this
prospectus with those of other investment products, including other variable
annuity or variable life insurance products offered by Nationwide Life Insurance
Company and its affiliates. This process will aid in determining whether the
purchase of the contract described in this prospectus is consistent with an
individual's goals, risk tolerance, time horizon, marital status, tax situation,
and other personal characteristics and needs.
THIS PROSPECTUS CONTAINS BASIC INFORMATION YOU SHOULD KNOW ABOUT THE CONTRACTS
BEFORE INVESTING. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE
REFERENCE.
- --------------------------------------------------------------------------------
The following underlying mutual funds are available under the contracts:
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURYSM
FAMILY OF INVESTMENTS
o American Century VP Income & Growth
o American Century VP International
o American Century VP Value
DREYFUS
o Dreyfus Investment Portfolios - European Equity Portfolio
o The Dreyfus Socially Responsible Growth Fund, Inc.
o Dreyfus Stock Index Fund, Inc.
o Dreyfus Variable Investment Fund - Appreciation Portfolio (formerly,
Dreyfus Variable Investment Fund - Capital Appreciation Portfolio)
FEDERATED INSURANCE SERIES
o Federated Quality Bond Fund II
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
o VIP Equity-Income Portfolio: Service Class
o VIP Growth Portfolio: Service Class
o VIP High Income Portfolio: Service Class*
o VIP Overseas Portfolio: Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
o VIP II Contrafund(R) Portfolio: Service Class
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
o VIP III Growth Opportunities Portfolio: Service Class
JANUS ASPEN SERIES
o Capital Appreciation Portfolio: Service Shares
o Global Technology Portfolio: Service Shares
o International Growth Portfolio: Service Shares
MORGAN STANLEY
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER
UNIVERSAL FUNDS, INC.)
o Emerging Markets Debt Portfolio
o Mid Cap Growth Portfolio
VAN KAMPEN LIFE INVESTMENT TRUST
o Morgan Stanley Real Estate Securities Portfolio
NATIONWIDE SEPARATE ACCOUNT TRUST
o Capital Appreciation Fund
o Government Bond Fund
o Money Market Fund
o Total Return Fund
o Nationwide Balanced Fund (subadviser: J.P. Morgan Investment
Management Inc.)
1
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o Nationwide Equity Income Fund (subadviser: Federated Investment
Counseling)
o Nationwide Global 50 Fund (formerly, Nationwide Global Equity Fund)
(subadviser: J.P. Morgan Investment Management Inc.)
o Nationwide High Income Bond Fund* (subadviser: Federated Investment
Counseling)
o Nationwide Mid Cap Index Fund (formerly, Nationwide Select Advisers Mid
Cap Fund) (subadviser: The Dreyfus Corporation)
o Nationwide Multi Sector Bond Fund (subadviser: Miller, Anderson &
Sherrerd, LLP)
o Nationwide Small Cap Growth Fund (formerly, Nationwide Select Advisers
Small Cap Growth Fund) (subadvisers: Franklin Advisers, Inc., Miller,
Anderson & Sherrerd, LLP, Neuberger Berman, LLC.)
o Nationwide Small Cap Value Fund (subadvisers: The Dreyfus Corporation)
o Nationwide Small Company Fund (subadvisers: The Dreyfus Corporation,
Neuberger Berman, LLC, Lazard Asset Management and Strong Capital
Management, Inc.)
o Nationwide Strategic Growth Fund (subadviser: Strong Capital
Management, Inc.)
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
o AMT Guardian Portfolio
o AMT Mid-Cap Growth Portfolio
o AMT Partners Portfolio
OPPENHEIMER VARIABLE ACCOUNT FUNDS
o Oppenheimer Aggressive Growth Fund/VA (formerly, Oppenheimer Capital
Appreciation Fund)
o Oppenheimer Capital Appreciation Fund/VA (formerly, Oppenheimer Growth
Fund)
o Oppenheimer Global Securities Fund/VA
o Oppenheimer Main Street Growth & Income Fund/VA (formerly, Oppenheimer
Growth & Income Fund)
STRONG OPPORTUNITY FUND II, INC.
VAN ECK WORLDWIDE INSURANCE TRUST
o Worldwide Emerging Markets Fund
o Worldwide Hard Assets Fund
* These underlying mutual funds may invest in lower quality debt
securities commonly referred to as junk bonds.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER
SEPTEMBER 27, 1999:
WARBURG PINCUS TRUST
o International Equity Portfolio
o Global Post-Venture Capital Portfolio (formerly, Post-Venture Capital
Portfolio)
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER
MAY 1, 2000:
NATIONWIDE SEPARATE ACCOUNT TRUST
o Nationwide Strategic Value Fund (subadviser: Strong Capital Management,
Inc./Schafer Capital Management, Inc.)
WARBURG PINCUS TRUST
o Value Portfolio (formerly, Growth & Income Portfolio)
Purchase payments not invested in the underlying mutual funds of the Nationwide
Variable Account-9 ("variable account") can be allocated to the fixed account or
the Guaranteed Term Options (Guaranteed Term Options may not be available in
every jurisdiction - refer to your contract for specific information).
The Statement of Additional Information (dated May 1, 2000) which contains
additional information about the contracts and the variable account, has been
filed with the Securities and Exchange Commission ("SEC") and is incorporated
herein by reference. The table of contents for the Statement of Additional
Information is on page 56.
2
<PAGE> 3
For general information or to obtain FREE copies of the:
o Statement of Additional Information;
o prospectus, annual report or semi-annual report for any underlying
mutual fund;
o prospectus for the Guaranteed Term Options; or
o required Nationwide forms,
call: 1-800-848-6331
TDD 1-800-238-3035
or write:
NATIONWIDE LIFE INSURANCE COMPANY
P.O. BOX 16609
COLUMBUS, OHIO 43216-6609
The Statement of Additional Information and other material incorporated by
reference can be found on the SEC website at:
WWW.SEC.GOV
Information about this and other Best of America products can be found at:
WWW.BESTOFAMERICA.COM
THIS ANNUITY IS NOT:
o A BANK DEPOSIT o FEDERALLY INSURED
o ENDORSED BY A BANK OR o AVAILABLE IN EVERY STATE
GOVERNMENT AGENCY
Investors assume certain risks when investing in the contracts, including the
possibility of losing money.
These contracts are offered to customers of various financial institutions and
brokerage firms. No financial institution or brokerage firm is responsible for
the guarantees under the contracts. Guarantees under the contracts are the sole
responsibility of Nationwide.
In the future, additional underlying mutual funds managed by certain financial
institutions or brokerage firms may be added to the variable account. These
additional underlying mutual funds may be offered exclusively to purchasing
customers of the particular financial institution or brokerage firm.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS THE
SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
3
<PAGE> 4
GLOSSARY OF SPECIAL TERMS
ACCUMULATION UNIT- An accounting unit of measure used to calculate the variable
account contract value before the annuitization date.
ANNUITIZATION DATE- The date on which annuity payments begin.
ANNUITY COMMENCEMENT DATE- The date on which annuity payments are scheduled to
begin. This date may be changed by the contract owner with Nationwide's consent.
ANNUITY UNIT- An accounting unit of measure used to calculate variable annuity
payments.
CONTRACT VALUE- The total value of all accumulation units plus any amount held
in the fixed account, and any amount held under Guaranteed Term Options.
CONTRACT YEAR- Each year the contract is in force beginning with the date the
contract is issued.
ERISA- The Employee Retirement Income Security Act of 1974, as amended.
FIXED ACCOUNT- An investment option which is funded by the general account of
Nationwide.
GENERAL ACCOUNT- All assets of Nationwide other than those of the variable
account or in other separate accounts that have been or may be established by
Nationwide.
INDIVIDUAL RETIREMENT ACCOUNT- An account that qualifies for favorable tax
treatment under Section 408(a) of the Internal Revenue Code, but does not
include Roth IRAs.
INDIVIDUAL RETIREMENT ANNUITY- An annuity contract that qualifies for favorable
tax treatment under Section 408(b) of the Internal Revenue Code, but does not
include Roth IRAs.
INVESTMENT-ONLY CONTRACT- A contract purchased by a Qualified Pension,
Profit-Sharing or Stock Bonus Plan as defined by Section 401(a) of the Internal
Revenue Code.
NATIONWIDE- Nationwide Life Insurance Company.
NON-QUALIFIED CONTRACT- A contract which does not qualify for favorable tax
treatment as a Qualified Plan, IRA, Roth IRA or Tax Sheltered Annuity.
QUALIFIED PLANS- Retirement plans which receive favorable tax treatment under
Section 401 or 403(a) of the Internal Revenue Code.
ROTH IRA- An annuity contract which qualifies for favorable tax treatment under
Section 408A of the Internal Revenue Code.
SUB-ACCOUNTS- Divisions of the variable account to which underlying mutual fund
shares are allocated and for which accumulation units and annuity units are
separately maintained - each sub-account corresponds to a single underlying
mutual fund.
TAX SHELTERED ANNUITY- An annuity that qualifies for favorable tax treatment
under Section 403(b) of the Internal Revenue Code.
VALUATION PERIOD- Each day the New York Stock Exchange is open for business.
VARIABLE ACCOUNT- Nationwide Variable Account-9, a separate account of
Nationwide that contains variable account allocations. The variable account is
divided into sub-accounts, each of which invests in shares of a separate
underlying mutual fund.
4
<PAGE> 5
TABLE OF CONTENTS
GLOSSARY OF SPECIAL TERMS.........................4
SUMMARY OF STANDARD CONTRACT EXPENSES.............7
ADDITIONAL CONTRACT OPTIONS.......................8
UNDERLYING MUTUAL FUND ANNUAL EXPENSES............9
EXAMPLE..........................................12
SYNOPSIS OF THE CONTRACTS........................16
FINANCIAL STATEMENTS.............................17
CONDENSED FINANCIAL INFORMATION..................17
NATIONWIDE LIFE INSURANCE COMPANY................17
NATIONWIDE INVESTMENT SERVICES CORPORATION.......17
TYPES OF CONTRACTS...............................17
Non-Qualified Annuity Contracts
Individual Retirement Annuities (IRAs)
Roth IRAs
Tax Sheltered Annuities
Qualified Plans
INVESTING IN THE CONTRACT........................19
The Variable Account and Underlying
Mutual Funds
Guaranteed Term Options
The Fixed Account
STANDARD CHARGES AND DEDUCTIONS..................21
Mortality and Expense Risk Charge
Contingent Deferred Sales Charge
Premium Taxes
OPTIONAL CONTRACT BENEFITS, CHARGES
AND DEDUCTIONS................................23
Death Benefit Option
Guaranteed Minimum Income Benefit Options
Spousal Protection Annuity Option
CONTRACT OWNERSHIP...............................24
Joint Ownership
Contingent Ownership
Annuitant
Beneficiary and Contingent Beneficiary
OPERATION OF THE CONTRACT........................25
Minimum Initial and Subsequent Purchase
Payments
Pricing
Allocation of Purchase Payments
Determining the Contract Value
Transfers Prior to Annuitization
Transfers After Annuitization
Transfer Requests
RIGHT TO REVOKE..................................29
SURRENDER (REDEMPTION)...........................29
Partial Surrenders (Partial Redemptions)
Full Surrenders (Full Redemptions)
Surrenders Under a Texas Optional
Retirement Program or a Louisiana
Optional Retirement Plan
Surrenders Under a Tax Sheltered Annuity
LOAN PRIVILEGE...................................31
Minimum & Maximum Loan Amounts
Loan Processing Fee
How Loan Requests are Processed
Loan Interest
Loan Repayment
Distributions & Annuity Payments
Transferring the Contract
Grace Period & Loan Default
ASSIGNMENT.......................................32
CONTRACT OWNER SERVICES..........................33
Asset Rebalancing
Dollar Cost Averaging
Systematic Withdrawals
ANNUITY COMMENCEMENT DATE........................34
ANNUITIZING THE CONTRACT.........................35
Annuitization Date
Annuitization
Fixed Payment Annuity
Variable Payment Annuity
Frequency and Amount of Annuity Payments
Guaranteed Minimum Income Benefit Options
("GMIB")
Annuity Payment Options
5
<PAGE> 6
DEATH BENEFITS...................................40
Death of Contract Owner - Non-Qualified
Contracts
Death of Annuitant - Non-Qualified
Contracts
Death of Contract Owner/Annuitant
Death Benefit Payment
REQUIRED DISTRIBUTIONS...........................42
Required Distributions for Non-Qualified
Contracts
Required Distributions for Tax Sheltered
Annuities
Required Distributions for Individual
Retirement Annuities
Required Distributions for Roth IRAs
FEDERAL TAX CONSIDERATIONS.......................45
Federal Income Taxes
Withholding
Non-Resident Aliens
Federal Estate, Gift, and Generation
Skipping Transfer Taxes
Charge for Tax
Diversification
Tax Changes
STATEMENTS AND REPORTS...........................49
LEGAL PROCEEDINGS................................50
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY..51
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL
INFORMATION...................................56
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL
FUNDS.........................................57
APPENDIX B: CONDENSED FINANCIAL INFORMATION......68
6
<PAGE> 7
SUMMARY OF STANDARD CONTRACT EXPENSES
The expenses listed below are charged to all contracts unless:
o the contract owner meets an available exception under the contract; or
o a contract owner has replaced a standard benefit with an available
option for an additional charge.
CONTRACT OWNER TRANSACTION EXPENSES
Maximum Contingent Deferred Sales Charge ("CDSC") (as a percentage
of purchase payments surrendered)..........................................7%(1)
Range of CDSC over time:
- ---------------------------------------------------------
Number of Years from Date CDSC
of Purchase Payment Percentage
- ---------------------------------------------------------
0 7%
- ---------------------------------------------------------
1 7%
- ---------------------------------------------------------
2 6%
- ---------------------------------------------------------
3 5%
- ---------------------------------------------------------
4 4%
- ---------------------------------------------------------
5 3%
- ---------------------------------------------------------
6 2%
- ---------------------------------------------------------
7 0%
- ---------------------------------------------------------
(1) Each contract year, the contract owner may withdraw without a CDSC the
greater of:
(a) 10% of all purchase payments made to the contract; or
(b) any amount withdrawn to meet minimum distribution requirements
under the Internal Revenue Code.
This free withdrawal privilege is non-cumulative. Free amounts not taken during
any given contract year cannot be taken as free amounts in a subsequent contract
year (see "Contingent Deferred Sales Charge").
Withdrawals may be restricted for contracts issued as Tax Sheltered Annuities or
other Qualified Plans due to Internal Revenue Code restrictions.
VARIABLE ACCOUNT CHARGES(2)
(as a percentage of the daily net assets of the variable account)
Mortality and Expense Risk Charges......................................1.20%
Total Variable Account Charges.......................................1.20%(3)
LOAN PROCESSING FEE
(per loan transaction)..................................................$254
(2) These charges apply only to sub-account allocations. They do not apply
to allocations made to the fixed account or to the Guaranteed Term
Options. They are charged on a daily basis at the annual rate noted
above.
(3) Charges shown include the One-Year Step Up Death Benefit which is
standard to every contract (see "Death Benefit Payment").
(4) Nationwide assesses a $25 loan processing fee at the time each new loan
is processed. Loans are only available for contracts issued as Tax
Sheltered Annuities. Loans are not available in all states. In
addition, some states may not permit Nationwide to assess a loan
processing fee (see "Loan Privilege").
7
<PAGE> 8
ADDITIONAL CONTRACT OPTIONS
The following options are available to contract owners. Some options assess an
additional charge. These options must be elected at the time of application and
will replace the corresponding standard contract benefit.
If the contract owner chooses an optional benefit, a corresponding charge will
be deducted. The charge for an optional benefit is IN ADDITION TO the standard
variable account charges. Except as otherwise noted, optional benefit charges
will only apply to allocations made to the underlying mutual funds and are
charged as a percentage of the average variable account value.
DEATH BENEFIT OPTION
An applicant may choose the Optional 5% Enhanced Death Benefit instead of the
One-Year Step Up Death Benefit that is standard to every contract.
Optional 5% Enhanced Death
Benefit...................................................................0.05%
Total Variable Account Charges (including 5% Enhanced Death
Benefit only).........................................................1.25%
GUARANTEED MINIMUM INCOME BENEFIT OPTIONS
An applicant may elect one of two Guaranteed Minimum Income Benefit options
(see "Guaranteed Minimum Income Benefit Options").
Guaranteed Minimum Income Benefit Option 1.............................0.45%
Total Variable Account Charges (including Guaranteed Minimum
Income Benefit Option 1 only)........................................1.65%
Guaranteed Minimum Income Benefit Option 2.............................0.30%
Total Variable Account Charges (including Guaranteed Minimum
Income Benefit Option 2 only)........................................1.50%
SPOUSAL PROTECTION ANNUITY OPTION - AVAILABLE WITH THE STANDARD DEATH BENEFIT
ONLY
An applicant for an Individual Retirement Annuity or a non-qualified contract
may elect the Spousal Protection Annuity Option at no additional cost (see
"Spousal Protection Annuity Option").
Spousal Protection Annuity Option.........................................0.00%
Total Variable Account Charges (including Spousal Protection
Annuity Option only)...................................................1.20%
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UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND AVERAGE NET ASSETS,
AFTER EXPENSE REIMBURSEMENT)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American Century 0.70% 0.00% 0.00% 0.70%
VP Income & Growth
- ---------------------------------------------------------------------------------------------------------------------------
American Century Variable Portfolios, Inc. - American Century 1.34% 0.00% 0.00% 1.34%
VP International
- ---------------------------------------------------------------------------------------------------------------------------
American Century Variable Portfolios, Inc. - American Century 1.00% 0.00% 0.00% 1.00%
VP Value
- ---------------------------------------------------------------------------------------------------------------------------
Dreyfus Investment Portfolios - European Equity Portfolio 1.00% 0.25% 0.00% 1.25%
- ---------------------------------------------------------------------------------------------------------------------------
The Dreyfus Socially Responsible Growth Fund, Inc. 0.75% 0.04% 0.00% 0.79%
- ---------------------------------------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund, Inc. 0.25% 0.01% 0.00% 0.26%
- ---------------------------------------------------------------------------------------------------------------------------
Dreyfus Variable Investment Fund - Appreciation Portfolio 0.43% 0.35% 0.00% 0.78%
(formerly, Dreyfus Variable Investment Fund - Capital
Appreciation Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
Federated Insurance Series - Federated Quality Bond Fund II 0.00% 0.68% 0.00% 0.68%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.08% 0.10% 0.66%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio: Service Class 0.58% 0.07% 0.10% 0.75%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP High Income Portfolio: Service Class 0.58% 0.11% 0.10% 0.79%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.15% 0.10% 0.98%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund(R)Portfolio: Service Class 0.58% 0.07% 0.10% 0.75%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP III Growth Opportunities Portfolio: Service Class 0.58% 0.10% 0.10% 0.78%
- ---------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series - Capital Appreciation Portfolio: Service 0.65% 0.04% 0.25% 0.94%
Shares*
- ---------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series - Global Technology Portfolio: Service 0.65% 0.13% 0.25% 1.03%
Shares*
- ---------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series - International Growth Portfolio: Service 0.65% 0.11% 0.25% 1.01%
Shares*
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation Fund 0.60% 0.14% 0.00% 0.74%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 0.50% 0.15% 0.00% 0.65%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 0.39% 0.15% 0.00% 0.54%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 0.58% 0.14% 0.00% 0.72%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Balanced Fund 0.75% 0.15% 0.00% 0.90%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Equity Income Fund 0.80% 0.15% 0.00% 0.95%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Global 50 Fund (formerly, NSAT Nationwide 1.00% 0.20% 0.00% 1.20%
Global Equity Fund)
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income Bond Fund 0.80% 0.15% 0.00% 0.95%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT Nationwide 0.88% 0.15% 0.00% 1.03%
Select Advisers Mid Cap Fund)
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Multi Sector Bond Fund 0.75% 0.15% 0.00% 0.90%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 0.20% 0.00% 1.30%
Nationwide Select Advisers Small Cap Growth Fund)
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 0.90% 0.15% 0.00% 1.05%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Company Fund 0.98% 0.17% 0.00% 1.15%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Growth Fund 0.90% 0.10% 0.00% 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Value Fund 0.90% 0.10% 0.00% 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Guardian Portfolio 0.85% 0.15% 0.00% 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Mid-Cap Growth Portfolio 0.85% 0.15% 0.00% 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Partners Portfolio 0.80% 0.07% 0.00% 0.87%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 10
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oppenheimer Variable Account Funds - Oppenheimer Aggressive 0.66% 0.01% 0.00% 0.67%
Growth Fund/VA (formerly, Oppenheimer Variable Account Funds -
Oppenheimer Capital Appreciation Fund)
- ---------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer Capital 0.68% 0.02% 0.00% 0.70%
Appreciation Fund/VA (formerly, Oppenheimer Variable Account
Funds - Oppenheimer Growth Fund)
- ---------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer Global 0.67% 0.02% 0.00% 0.69%
Securities Fund/VA
- ---------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer Main Street 0.73% 0.05% 0.00% 0.78%
Growth & Income Fund/VA (formerly, Oppenheimer Variable Account
Funds - Oppenheimer Growth & Income Fund)
- ---------------------------------------------------------------------------------------------------------------------------
Strong Opportunity Fund II, Inc. 1.00% 0.14% 0.00% 1.14%
- ---------------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. - Emerging Markets Debt 0.45% 0.98% 0.00% 1.43%
Portfolio (formerly, Morgan Stanley Dean Witter Universal
Funds, Inc. - Emerging Markets Debt Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. - Mid Cap Growth 0.00% 1.05% 0.00% 1.05%
Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Emerging Markets 1.00% 0.34% 0.00% 1.34%
Fund
- ---------------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Hard Assets Fund 1.00% 0.26% 0.00% 1.26%
- ---------------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment Trust - Morgan Stanley Real Estate 0.97% 0.13% 0.00% 1.10%
Securities Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Global Post-Venture Capital Portfolio 1.07% 0.33% 0.00% 1.40%
(formerly, Warburg Pincus Trust - Post-Venture Capital
Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - International Equity Portfolio 1.00% 0.32% 0.00% 1.32%
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Value Portfolio (formerly, Warburg 0.56% 0.44% 0.00% 1.00%
Pincus Trust - Growth & Income Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Expenses are based on the estimated expenses that the new Service Shares class
of each Portfolio expects to incur in its initial fiscal year.
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value in calculating the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federated Insurance Series - Federated Quality Bond Fund II 0.60% 0.89% 0.25% 1.74%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio: Service Class 0.48% 0.09% 0.10% 0.67%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio: Service Class 0.58% 0.09% 0.10% 0.77%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio: Service Class 0.73% 0.18% 0.10% 1.01%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund(R) Portfolio: Service Class 0.58% 0.10% 0.10% 0.78%
- ---------------------------------------------------------------------------------------------------------------------------
Fidelity VIP III Growth Opportunities Portfolio: Service Class 0.58% 0.11% 0.10% 0.79%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 11
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total
Fees Expenses Fees Underlying
Mutual Fund
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NSAT Nationwide Balanced Fund 0.75% 0.25% 0.00% 1.00%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Equity Income Fund 0.80% 0.29% 0.00% 1.09%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Global 50 Fund (formerly, NSAT Nationwide 1.00% 0.54% 0.00% 1.54%
Global Equity Fund)
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income Bond Fund 0.80% 0.50% 0.00% 1.30%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT Nationwide 0.88% 0.86% 0.00% 1.74%
Select Advisers Mid Cap Fund)
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Multi Sector Bond Fund 0.75% 0.27% 0.00% 1.02%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT 1.10% 1.30% 0.00% 2.40%
Nationwide Select Advisers Small Cap Growth Fund)
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 0.90% 0.37% 0.00% 1.27%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Growth Fund 0.90% 0.33% 0.00% 1.23%
- ---------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Value Fund 0.90% 0.32% 0.00% 1.22%
- ---------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Mid-Cap Growth Portfolio 0.93% 0.15% 0.00% 1.08%
- ---------------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. - Emerging Markets 0.80% 0.98% 0.00% 1.78%
Debt Portfolio (formerly, Morgan Stanley Dean Witter Universal
Funds, Inc. - Emerging Markets Debt Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. - Mid Cap Growth 0.75% 7.31% 0.00% 8.06%
Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Emerging Markets 1.00% 0.54% 0.00% 1.54%
Fund
- ---------------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment Trust - Morgan Stanley Real Estate 1.00% 0.13% 0.00% 1.13%
Securities Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Global Post-Venture Capital Portfolio 1.25% 0.33% 0.00% 1.58%
(formerly, Warburg Pincus Trust - Post-Venture Capital
Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Value Portfolio (formerly, Warburg 0.75% 0.59% 0.00% 1.34%
Pincus Trust - Growth & Income Portfolio)
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 12
EXAMPLE
The following chart shows the amount of expenses (in dollars) that would be
incurred under this contract assuming a $1,000 investment, 5% annual return, and
no change in expenses. These dollar figures are illustrative only and should not
be considered a representation of past or future expenses. Actual expenses may
be greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects an assumed variable account charge of 1.70%,
which is the maximum variable account charge for the maximum number of rider
options.
For those contracts that do not elect the maximum number of rider options, the
expenses would be reduced. Deductions for premium taxes are not reflected but
may apply.
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- -----------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American Century Variable 88 131 168 282 25 77 132 282 * 77 132 282
Portfolios, Inc. - American
Century VP Income & Growth
- -----------------------------------------------------------------------------------------------------------------------------
American Century Variable 95 152 201 346 32 98 165 346 * 98 165 346
Portfolios, Inc. - American
Century VP International
- -----------------------------------------------------------------------------------------------------------------------------
American Century Variable 91 141 184 313 28 87 148 313 * 87 148 313
Portfolios, Inc. - American
Century VP Value
- -----------------------------------------------------------------------------------------------------------------------------
Dreyfus Investment Portfolios 94 149 197 338 31 95 161 338 * 95 161 338
- - European Equity Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
The Dreyfus Socially 89 134 173 291 26 80 137 291 * 80 137 291
Responsible Growth Fund, Inc.
- -----------------------------------------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund, Inc. 84 118 145 235 21 64 109 235 * 64 109 235
- -----------------------------------------------------------------------------------------------------------------------------
Dreyfus Variable Investment 89 134 173 290 26 80 137 290 * 80 137 290
Fund - Appreciation Portfolio
(formerly, Dreyfus Variable
Investment Fund - Capital
Appreciation Portfolio)
- -----------------------------------------------------------------------------------------------------------------------------
Federated Insurance Series - 88 131 167 280 25 77 131 280 * 77 131 280
Federated Quality Bond Fund II
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income 88 130 166 278 25 76 130 278 * 76 130 278
Portfolio: Service Class
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth 89 133 171 287 26 79 135 287 * 79 135 287
Portfolio: Service Class
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity VIP High Income 89 134 173 291 26 80 137 291 * 80 137 291
Portfolio: Service Class
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas 91 140 183 311 28 86 147 311 * 86 147 311
Portfolio: Service Class
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund(R) 89 133 171 287 26 79 135 287 * 79 135 287
Portfolio: Service Class
- -----------------------------------------------------------------------------------------------------------------------------
Fidelity VIP III Growth 89 134 173 290 26 80 137 290 * 80 137 290
Opportunities Portfolio:
Service Class
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- -----------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Janus Aspen Series - Capital 91 139 181 307 28 85 145 307 * 85 145 307
Appreciation Portfolio:
Service Shares
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series - Global 92 142 186 316 29 88 150 316 * 88 150 316
Technology Portfolio: Service
Shares
- -----------------------------------------------------------------------------------------------------------------------------
Janus Aspen Series - 91 141 185 314 28 87 149 314 * 87 149 314
International Growth
Portfolio: Service Shares
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation Fund 89 133 171 286 26 79 135 286 * 79 135 286
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund 88 130 166 277 25 76 130 277 * 76 130 277
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 87 126 160 265 24 72 124 265 * 72 124 265
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 88 132 169 284 25 78 133 284 * 78 133 284
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Balanced Fund 90 138 179 303 27 84 143 303 * 84 143 303
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Equity Income 91 139 181 308 28 85 145 308 * 85 145 308
Fund
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Global 50 93 147 194 333 30 93 158 333 * 93 158 333
Fund (formerly, NSAT
Nationwide Global Equity Fund)
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income 91 139 181 308 28 85 145 308 * 85 145 308
Bond Fund
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Mid Cap Index 92 142 186 316 29 88 150 316 * 88 150 316
Fund (formerly, NSAT
Nationwide Select Advisers
Mid Cap Fund)
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Multi Sector 90 138 179 303 27 84 143 303 * 84 143 303
Bond Fund
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap 95 150 199 343 32 96 163 343 * 96 163 343
Growth Fund (formerly, NSAT
Nationwide Select Advisers
Small Cap Growth Fund)
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap 92 142 187 318 29 88 151 318 * 88 151 318
Value Fund
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Company 93 146 192 328 30 92 156 328 * 92 156 328
Fund
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic 91 141 184 313 28 87 148 313 * 87 148 313
Growth Fund
- -----------------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic 91 141 184 313 28 87 148 313 * 87 148 313
Value Fund
- -----------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Guardian 91 141 184 313 28 87 148 313 * 87 148 313
Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Mid-Cap 91 141 184 313 28 87 148 313 * 87 148 313
Growth Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Partners 90 137 177 300 27 83 141 300 * 83 141 300
Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
13
<PAGE> 14
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- -----------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oppenheimer Variable Account 88 131 167 279 25 77 131 279 * 77 131 279
Funds - Oppenheimer
Aggressive Growth Fund/VA
(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Capital
Appreciation Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account 88 131 168 282 25 77 132 282 * 77 132 282
Funds - Oppenheimer Capital
Appreciation Fund/VA
(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Growth Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account 88 131 168 281 25 77 132 281 * 77 132 281
Funds - Oppenheimer Global
Securities Fund/VA
- -----------------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account 89 134 173 290 26 80 137 290 * 80 137 290
Funds - Oppenheimer Main
Street Growth & Income
Fund/VA(formerly, Oppenheimer
Variable Account Funds -
Oppenheimer Growth & Income
Fund)
- -----------------------------------------------------------------------------------------------------------------------------
Strong Opportunity Fund II, 93 145 191 327 30 91 155 327 * 91 155 327
Inc.
- -----------------------------------------------------------------------------------------------------------------------------
The Universal Institutional 96 154 206 355 33 100 170 355 * 100 170 355
Funds, Inc. - Emerging
Markets Debt Portfolio
(formerly, Morgan Stanley
Dean Witter Universal Funds,
Inc. - Emerging Markets Debt
Portfolio)
- -----------------------------------------------------------------------------------------------------------------------------
The Universal Institutional 92 142 187 318 29 88 151 318 * 88 151 318
Funds, Inc. - Mid Cap Growth
Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance 95 152 201 346 32 98 165 346 * 98 165 346
Trust - Worldwide Emerging
Markets Fund
- -----------------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance 94 149 197 339 31 95 161 339 * 95 161 339
Trust - Worldwide Hard Assets
Fund
- -----------------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment 92 144 189 323 29 90 153 323 * 90 153 323
Trust - Morgan Stanley Real
Estate Securities Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Global 96 153 205 352 33 99 169 352 * 99 169 352
Post-Venture Capital
Portfolio (formerly, Warburg
Pincus Trust - Post-Venture
Capital Portfolio)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
14
<PAGE> 15
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- -----------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 95 151 200 345 32 97 164 345 * 97 164 345
International Equity Portfolio
- -----------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Value 91 141 184 313 28 87 148 313 * 87 148 313
Portfolio (formerly, Warburg
Pincus Trust - Growth &
Income Portfolio)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Annuitization is not permitted during the first two contract years.
15
<PAGE> 16
SYNOPSIS OF THE CONTRACTS
The contracts described in this prospectus are modified single purchase payment
contracts. The contracts may be issued as either individual or group contracts.
In those states where contracts are issued as group contracts, references
throughout this prospectus to "contract(s)" will also mean "certificate(s)."
The contracts can be categorized as follows:
o Non-Qualified;
o Investment-only;
o Individual Retirement Annuities, with contributions rolled-over or
transferred from certain tax-qualified plans;
o Roth IRAs;
o Tax Sheltered Annuities, with contributions rolled-over or transferred
from other Tax Sheltered Annuities; and
o Charitable Remainder Trusts.
For more detailed information with regard to the differences in the contract
types, please see "Types of Contracts" later in this prospectus.
MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
- ---------------------------------------------------------
MINIMUM INITIAL MINIMUM
CONTRACT PURCHASE PAYMENT SUBSEQUENT
TYPE PAYMENTS
- ---------------------------------------------------------
Non-Qualified $10,000 $1,000
- ---------------------------------------------------------
Investment-only $10,000 $1,000
- ---------------------------------------------------------
IRA $10,000 $1,000
- ---------------------------------------------------------
Roth IRA $10,000 $1,000
- ---------------------------------------------------------
Tax Sheltered Annuity $10,000 $1,000
- ---------------------------------------------------------
Charitable Remainder $10,000 $1,000
Trust
- ---------------------------------------------------------
Subsequent purchase payments are not permitted in Oregon, and may not be
permitted in other states under certain circumstances.
Guaranteed Term Options
Guaranteed Term Options are separate investment options under the contract. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
CHARGES AND EXPENSES
Nationwide deducts a Mortality and Expense Risk Charge equal to an annual rate
of 1.20% of the daily net assets of the variable account. Nationwide assesses
this charge in return for bearing certain mortality and expense risks, as well
as for administrative expenses.
Nationwide does not deduct a sales charge from purchase payments upon deposit
into the contract. However, Nationwide will deduct a CDSC if any amount is
withdrawn from the contract. This CDSC reimburses Nationwide for sales expenses.
The amount of the CDSC will not exceed 7% of purchase payments surrendered.
An optional death benefit is available under the contract. Nationwide will
deduct an additional charge equal to an annual rate of 0.05% of the daily net
assets of the variable account if the contract owner elects the 5% Enhanced
Death Benefit (see "Death Benefit Payment").
Two Guaranteed Minimum Income Benefit options are available under the contract.
If the contract owner elects one of the Guaranteed Minimum Income Benefit
options, Nationwide will deduct an additional charge at an annual rate of 0.45%
or 0.30% of the daily net assets of the variable account, depending on which
option was chosen (see "Guaranteed Minimum Income Benefits").
Upon annuitization of the contract, any amounts assessed for any rider options
elected will be waived and only those charges applicable to the base contract
will be assessed.
ANNUITY PAYMENTS
Annuity payments begin on the annuitization date. The payments will be based on
the annuity payment option chosen at the time of application (see "Annuity
Payment Options").
TAXATION
How a contract is taxed depends on the type of contract issued and the purpose
for which the contract is purchased. Nationwide will charge against the contract
any premium taxes levied by a state or other governmental entity (see
16
<PAGE> 17
"Federal Tax Considerations" and "Premium Taxes").
TEN DAY FREE LOOK
Contract owners may return the contract for any reason within ten days of
receipt and Nationwide will refund the contract value or other amounts required
by law (see "Right to Revoke").
FINANCIAL STATEMENTS
Financial statements for the variable account and Nationwide are located in the
Statement of Additional Information. A current Statement of Additional
Information may be obtained, without charge, by contacting Nationwide's home
office at the telephone number listed on page 3 of this prospectus.
CONDENSED FINANCIAL INFORMATION
The value of an accumulation unit is determined on the basis of changes in the
per share value of the underlying mutual funds and the assessment of a variable
account charge which may vary from contract to contract (for more information on
the calculation of accumulation unit values, see "Determining Variable Account
Value - Valuing an Accumulation Unit"). Please refer to Appendix B for
information regarding each class of accumulation units.
NATIONWIDE LIFE INSURANCE COMPANY
Nationwide is a stock life insurance company organized under Ohio law in March,
1929 with its home office at One Nationwide Plaza, Columbus, Ohio 43215.
Nationwide is a provider of life insurance, annuities and retirement products.
It is admitted to do business in all states, the District of Columbia and Puerto
Rico.
NATIONWIDE INVESTMENT SERVICES CORPORATION
The contracts are distributed by the general distributor, Nationwide Investment
Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215. (For
contracts issued in the State of Michigan, all references to NISC shall mean
Nationwide Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of
Nationwide.
TYPES OF CONTRACTS
The contracts described in this prospectus are classified according to the tax
treatment they are subject to under the Internal Revenue Code. The following is
a general description of the various types of contracts. Eligibility
requirements, tax benefits (if any), limitations, and other features of the
contracts will differ depending on the type of contract.
NON-QUALIFIED ANNUITY CONTRACTS
A Non-Qualified Annuity Contract is a contract that does not qualify for certain
tax benefits under the Internal Revenue Code, and which is not an IRA, a Roth
IRA or a Tax Sheltered Annuity.
Upon the death of the owner of a Non-Qualified Annuity Contract, mandatory
distribution requirements are imposed to ensure distribution of the entire
balance in the contract within a required period of time.
Non-Qualified Annuity contracts that are owned by natural persons allow for the
deferral of taxation on the income earned in the contract until it is
distributed or deemed to be distributed.
INDIVIDUAL RETIREMENT ANNUITIES (IRAS)
Individual Retirement Annuities are contracts that are issued by insurance
companies and satisfy the following requirements:
o the contract is not transferable by the owner;
o the premiums are not fixed;
o the annual premium cannot exceed $2,000 (although rollovers of greater
amounts from qualified plans, tax-sheltered annuities and other IRAs
can be received);
17
<PAGE> 18
o certain minimum distribution requirements must be satisfied after the
owner attains the age of 70 1/2;
o the entire interest of the owner in the contract is nonforfeitable; and
o after the death of the owner, additional distribution requirements may
be imposed to ensure distribution of the entire balance in the contract
within the statutory period of time.
Depending on the circumstance of the owner, all or a portion of the
contributions made to the account may be deducted for federal income tax
purposes.
Failure to make the mandatory distributions can result in an additional penalty
tax of 50% of the excess of the amount required to be distributed over the
amount that was actually distributed.
IRAs may receive rollover contributions from other Individual Retirement
Accounts and Individual Retirement Annuities, from Tax Sheltered Annuities, and
from qualified retirement plans, including 401(k) plans.
For further details regarding IRAs, please refer to the disclosure statement
provided when the IRA was established.
ROTH IRAS
Roth IRA contracts are contracts that are issued by insurance companies and
satisfy the following requirements:
o the contract is not transferable by the owner;
o the premiums are not fixed;
o the annual premium cannot exceed $2,000 (although rollovers of greater
amounts from other Roth IRAs and IRAs can be received);
o the entire interest of the owner in the contract is nonforfeitable; and
o after the death of the owner, certain distribution requirements may be
imposed to ensure distribution of the entire balance in the contract
within the statutory period of time.
A Roth IRA can receive a rollover from an IRA; however, the amount rolled over
from the IRA to the Roth IRA is required to be included in the owner's federal
gross income at the time of the rollover, and will be subject to federal income
tax.
There are income limitations on eligibility to participate in a Roth IRA and
additional income limitations for eligibility to roll over amounts from an IRA
to a Roth IRA. For further details regarding Roth IRAs, please refer to the
disclosure statement provided when the Roth IRA was established.
TAX SHELTERED ANNUITIES
Certain tax-exempt organizations (described in section 501(c)(3) of the Internal
Revenue Code) and public school systems may establish a plan under which annuity
contracts can be purchased for their employees. These annuity contracts are
often referred to as Tax Sheltered Annuities.
Purchase payments made to Tax Sheltered Annuities are excludible from the income
of the employee, up to statutory maximum amounts. These amounts should be set
forth in the plan adopted by the employer.
The owner's interest in the contract is nonforfeitable (except for failure to
pay premiums) and cannot be transferred. Certain minimum distribution
requirements must be satisfied after the owner attains the age of 70 1/2, and
after the death of the owner. Additional distribution requirements may be
imposed to ensure distribution of the entire balance in the contract within the
statutory period of time.
QUALIFIED PLANS
Contracts that are owned by Qualified Plans are not intended to confer tax
benefits on the beneficiaries of the plan; they are used as investment vehicles
for the plan. The income tax consequences to the beneficiary of a Qualified Plan
are controlled by the operation of the plan, not by operation of the assets in
which the plan invests.
Beneficiaries of Qualified Plans should contact their employer and/or trustee of
the plan to
18
<PAGE> 19
obtain and review the plan, trust, summary plan description and other documents
for the tax and other consequences of being a participant in a qualified plan.
INVESTING IN THE CONTRACT
THE VARIABLE ACCOUNT AND UNDERLYING MUTUAL FUNDS
Nationwide Variable Account-9 is a variable account that contains the underlying
mutual funds listed in Appendix A. The variable account was established on May
22, 1997, pursuant to Ohio law. Although the variable account is registered with
the SEC as a unit investment trust pursuant to the Investment Company Act of
1940 ("1940 Act"), the SEC does not supervise the management of Nationwide or
the variable account.
Income, gains, and losses credited to, or charged against, the variable account
reflect the variable account's own investment experience and not the investment
experience of Nationwide's other assets. The variable account's assets are held
separately from Nationwide's assets and are not chargeable with liabilities
incurred in any other business of Nationwide. Nationwide is obligated to pay all
amounts promised to contract owners under the contracts.
The variable account is divided into sub-accounts, each corresponding to a
single underlying mutual fund. Nationwide uses the assets of each sub-account to
buy shares of the underlying mutual funds based on contract owner instructions.
There are two sub-accounts for each underlying mutual fund. One sub-account
contains shares attributable to accumulation units under Non-Qualified
Contracts. The other contains shares attributable to accumulation units under
Investment-only Contracts, Individual Retirement Annuities, Roth IRAs, and Tax
Sheltered Annuities.
Each underlying mutual fund's prospectus contains more detailed information
about that fund. Prospectuses for the underlying mutual funds should be read in
conjunction with this prospectus.
Underlying mutual funds in the variable account are NOT publicly traded funds.
They are only available as investment options in variable life insurance
policies or variable annuity contracts issued by life insurance companies, or in
some cases, through participation in certain qualified pension or retirement
plans.
The investment advisers of the underlying mutual funds may manage publicly
traded mutual funds with similar names and investment objectives. However, the
underlying mutual funds are NOT directly related to any publicly traded mutual
fund. Contract owners should not compare the performance of a publicly traded
fund with the performance of underlying mutual funds participating in the
variable account. The performance of the underlying mutual funds could differ
substantially from that of any publicly traded funds.
Voting Rights
Contract owners who have allocated assets to the underlying mutual funds are
entitled to certain voting rights. Nationwide will vote contract owner shares at
special shareholder meetings based on contract owner instructions. However, if
the law changes allowing Nationwide to vote in its own right, it may elect to do
so.
Contract owners with voting interests in an underlying mutual fund will be
notified of issues requiring the shareholders' vote as soon as possible before
the shareholder meeting. Notification will contain proxy materials and a form
with which to give Nationwide voting instructions. Nationwide will vote shares
for which no instructions are received in the same proportion as those that are
received.
The number of shares which a contract owner may vote is determined by dividing
the cash value of the amount they have allocated to an underlying mutual fund by
the net asset value of the underlying mutual fund. Nationwide will designate a
date for this determination not more than 90 days before the shareholder
meeting.
19
<PAGE> 20
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other
insurance companies, as well as through other separate accounts of Nationwide.
Nationwide does not anticipate any disadvantages to this. However, it is
possible that a conflict may arise between the interests of the variable account
and one or more of the other separate accounts in which these underlying mutual
funds participate.
Material conflicts may occur due to a change in law affecting the operations of
variable life insurance policies and variable annuity contracts, or differences
in the voting instructions of the contract owners and those of other companies.
If a material conflict occurs, Nationwide will take whatever steps are necessary
to protect contract owners and variable annuity payees, including withdrawal of
the variable account from participation in the underlying mutual fund(s)
involved in the conflict.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying
mutual fund for shares already purchased or to be purchased in the future if
either of the following occurs:
1) shares of a current underlying mutual fund are no longer available for
investment; or
2) further investment in an underlying mutual fund is inappropriate.
No substitution, elimination, or combination of shares may take place without
the prior approval of the SEC.
GUARANTEED TERM OPTIONS
Guaranteed Term Options are separate investment options under the contract. A
Guaranteed Term Option prospectus should be read in conjunction with this
prospectus. The minimum amount that may be allocated to a Guaranteed Term Option
is $1,000. Allocations to the Guaranteed Term Options are not subject to
variable account charges.
Guaranteed Term Options provide a guaranteed rate of interest over four
different maturity durations: three (3), five (5), seven (7) or ten (10) years.
Note: The guaranteed term may last for up to 3 months beyond the 3, 5, 7, or 10
year period since every guaranteed term will end on the final day of a calendar
quarter.
For the duration selected, Nationwide will declare a guaranteed interest rate.
That rate will be credited to amounts allocated to the Guaranteed Term Option
UNLESS a distribution is taken for any reason before the maturity date. If a
distribution occurs before the maturity date, the amount distributed will be
subject to a market value adjustment. A market value adjustment can increase or
decrease the amount distributed depending on current interest rate fluctuations.
No market value adjustment will be applied if Guaranteed Term Option allocations
are held to maturity.
Because a market value adjustment can affect the value of a distribution, its
effects should be carefully considered before surrendering or transferring from
Guaranteed Term Options. When actual interest rates are higher than the
guaranteed rate, a market value adjustment would reduce the value of the amount
distributed. When actual interest rates are lower than the guaranteed rate, the
value of the amount distributed would increase.
Guaranteed Term Options are available only during the accumulation phase of a
contract. They are not available after the annuitization date. In addition,
Guaranteed Term Options are not available for use with asset rebalancing, Dollar
Cost Averaging, or systematic withdrawals.
Guaranteed Term Options may not be available in every state.
THE FIXED ACCOUNT
The fixed account is an investment option that is funded by assets of
Nationwide's general account. The general account contains all of Nationwide's
assets other than those in other Nationwide separate accounts. It is used to
support Nationwide's annuity and insurance
20
<PAGE> 21
obligations and may contain compensation for mortality and expense risks. The
general account is not subject to the same laws as the variable account and the
SEC has not reviewed material in this prospectus relating to the fixed account.
However, information relating to the fixed account is subject to federal
securities laws relating to the accuracy and completeness of prospectus
disclosure.
Purchase payments will be allocated to the fixed account by election of the
contract owner.
The investment income earned by the fixed account will be allocated to the
contracts at varying guaranteed interest rate(s) depending on the following
categories of fixed account allocations:
o New Money Rate - The rate credited on the fixed account allocation when
the contract is purchased or when subsequent purchase payments are
made. Subsequent purchase payments may receive different New Money
Rates than the rate when the contract was issued, since the New Money
Rate is subject to change based on market conditions.
o Variable Account to Fixed Rate - Allocations transferred from any of
the underlying investment options in the variable account to the fixed
account may receive a different rate. The rate may be lower than the
New Money Rate. There may be limits on the amount and frequency of
movements from the variable account to the fixed account.
o Renewal Rate - The rate available for maturing fixed account
allocations which are entering a new guarantee period. The contract
owner will be notified of this rate in a letter issued with the
quarterly statements when any of the money in the contract owner's
fixed account matures. At that time, the contract owner will have an
opportunity to leave the money in the fixed account and receive the
Renewal Rate or the contract owner can move the money to any of the
other underlying mutual fund options.
o Dollar Cost Averaging Rate - From time to time, Nationwide may offer a
more favorable rate for an initial purchase payment into a new contract
when used in conjunction with a Dollar Cost Averaging program.
All of these rates are subject to change on a daily basis; however, once applied
to the fixed account, the interest rates are guaranteed until the end of the
calendar quarter during the12 month anniversary in which the fixed account
allocation occurs.
Credited interest rates are annualized rates - the effective yield of interest
over a one-year period. Interest is credited to each contract on a daily basis.
As a result, the credited interest rate is compounded daily to achieve the
stated effective yield.
The guaranteed rate for any purchase payment will be effective for not less than
twelve months. Nationwide guarantees that the rate will not be less than 3.0%
per year.
Any interest in excess of 3.0% will be credited to fixed account allocations at
Nationwide's sole discretion. The contract owner assumes the risk that interest
credited to fixed account allocations may not exceed the minimum guarantee of
3.0% for any given year.
Nationwide guarantees that the fixed account contract value will not be less
than the amount of the purchase payments allocated to the fixed account, plus
interest credited as described above, less surrenders and any applicable charges
including CDSC.
STANDARD CHARGES AND DEDUCTIONS
MORTALITY AND EXPENSE RISK CHARGE
Nationwide deducts a Mortality and Expense Risk Charge from the variable
account. This amount is computed on a daily basis and is equal to an annual rate
of 1.20% of the daily net assets of the variable account.
The Mortality Risk Charge compensates Nationwide for guaranteeing the annuity
purchase rates of the contracts. This guarantee ensures that the annuity
purchase rates will not change regardless of the death rates of annuity
21
<PAGE> 22
payees or the general population. The Mortality Risk Charge also compensates
Nationwide for risks assumed in connection with the standard death benefit, but
only partially compensates Nationwide in connection with the optional death
benefit, for which there is a separate charge.
The Expense Risk Charge compensates Nationwide for guaranteeing that charges
will not increase regardless of actual expenses.
If the Mortality and Expense Risk Charge is insufficient to cover actual
expenses, the loss is borne by Nationwide.
CONTINGENT DEFERRED SALES CHARGE
No sales charge deduction is made from the purchase payments when amounts are
deposited into the contracts. However, if any part of the contract is
surrendered, Nationwide will, with certain exceptions, deduct a CDSC, as
described below. The CDSC will not exceed 7% of purchase payments surrendered.
The CDSC is calculated by multiplying the applicable CDSC percentage (noted
below) by the amount of purchase payments surrendered. For purposes of
calculating the CDSC, surrenders are considered to come first from the oldest
purchase payment made to the contract, then the next oldest purchase payment,
and so forth. Earnings are not subject to the CDSC, however, earnings may not be
distributed prior to the distribution of all purchase payments. For tax
purposes, a surrender is usually treated as a withdrawal of earnings first.
The CDSC applies as follows:
- ---------------------------------------------------------
Number of Years from Date CDSC
of Purchase Payment Percentage
- ---------------------------------------------------------
0 7%
- ---------------------------------------------------------
1 7%
- ---------------------------------------------------------
2 6%
- ---------------------------------------------------------
3 5%
- ---------------------------------------------------------
4 4%
- ---------------------------------------------------------
5 3%
- ---------------------------------------------------------
6 2%
- ---------------------------------------------------------
7 0%
- ---------------------------------------------------------
The CDSC is used to cover sales expenses, including commissions (maximum of
7.00% of purchase payments), production of sales material and other promotional
expenses. If expenses are greater than the CDSC, the shortfall will be made up
from Nationwide's general account, which may indirectly include portions of the
variable account charges, since Nationwide may generate a profit from these
charges.
All or a portion of any withdrawal may be subject to federal income taxes.
Contract owners taking withdrawals before age 59 1/2 may be subject to a 10%
penalty tax.
Waiver of Contingent Deferred Sales Charge
Each contract year, the contract owner may withdraw without a CDSC the greater
of:
(a) 10% of all purchase payments; or
(b) any amount withdrawn to meet minimum distribution requirements under
the Internal Revenue Code.
This CDSC-free privilege is non-cumulative. Free amounts not taken during any
given contract year cannot be taken as free amounts in a subsequent contract
year.
In addition, no CDSC will be deducted:
1) upon the annuitization of contracts which have been in force for at
least two years;
2) upon payment of a death benefit; or
3) from any values which have been held under a contract for at least 7
years.
No CDSC applies to transfers among sub-accounts or between or among the
Guaranteed Term Options, the fixed account or the variable account. Nationwide
may waive the CDSC if a contract described in this prospectus is exchanged for
another Nationwide contract (or a contract of any of its affiliated insurance
companies). A CDSC may apply to the contract received in the exchange.
A contract held by a Charitable Remainder Trust may withdraw CDSC-free the
greater of (a) or (b), where:
(a) is the amount which would otherwise be available for withdrawal without
a CDSC; and
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<PAGE> 23
(b) is the difference between the total purchase payments made to the
contract as of the date of the withdrawal (reduced by previous
withdrawals) and the contract value at the close of the day prior to
the date of the withdrawal.
The CDSC will not be eliminated if to do so would be unfairly discriminatory or
prohibited by state law.
Long Term Care Facility Provisions
No CDSC will be charged if:
o The third contract anniversary has passed; and
o The contract owner has been confined to a long-term care facility or
hospital for a continuous 90-day period that began after the contract
issue date.
Additionally, no CDSC will be charged if:
o The contract owner has been diagnosed by a physician to have a terminal
illness; and
o Nationwide receives and records a letter from that physician indicating
such diagnosis.
Written notice and proof of terminal illness or confinement for 90 days in a
hospital or long term care facility must be received in a form satisfactory to
Nationwide and recorded at Nationwide's home office prior to waiver of the CDSC.
For those contracts that have a non-natural person as the contract owner acting
as an agent for a natural person, the annuitant may exercise the rights of the
contract owner for the purposes described in this provision. If the non-natural
contract owner does NOT own the contract as an agent for a natural person (e.g.,
the contract owner is a corporation or a trust for the benefit of an entity),
the annuitant may NOT exercise the rights described in this provision.
PREMIUM TAXES
Nationwide will charge against the contract value any premium taxes levied by a
state or other government entity. Premium tax rates currently range from 0% to
5.0%. This range is subject to change. The method used to assess premium tax
will be determined by Nationwide at its sole discretion in compliance with state
law.
Nationwide currently deducts premium taxes from the contract either at:
1) the time the contract is surrendered;
2) annuitization; or
3) such earlier date as Nationwide becomes subject to premium taxes.
Premium taxes may be deducted from death benefit proceeds.
OPTIONAL CONTRACT BENEFITS, CHARGES AND DEDUCTIONS
DEATH BENEFIT OPTION
If the contract owner chooses the 5% Enhanced Death Benefit, Nationwide will
deduct an additional charge equal to an annual rate of 0.05% of the daily net
assets of the variable account. This charge reimburses Nationwide for increased
expenses and mortality risks. The following death benefit may not be available
in every state.
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
1) the contract value; or
2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
GUARANTEED MINIMUM INCOME BENEFIT OPTIONS
The contract owner can purchase one of two Guaranteed Minimum Income Benefit
options at the time of application. If elected, Nationwide
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<PAGE> 24
will deduct an additional charge of either 0.45% or 0.30% of the daily net
assets of the variable account, depending on which option was chosen. Guaranteed
Minimum Income Benefit options provide for a minimum guaranteed value that may
replace the contract value as the amount to be annuitized under certain
circumstances. A Guaranteed Minimum Income Benefit may afford protection against
unfavorable investment performance.
Upon annuitization of the contract, any amounts assessed for any rider options
elected will be waived and only those charges applicable to the base contract
will be assessed.
SPOUSAL PROTECTION ANNUITY OPTION - AVAILABLE WITH THE STANDARD DEATH BENEFIT
ONLY
AN APPLICANT FOR AN INDIVIDUAL RETIREMENT ANNUITY OR A NON-QUALIFIED CONTRACT
MAY ELECT THE SPOUSAL PROTECTION OPTION AT NO ADDITIONAL COST. IF THE SPOUSAL
PROTECTION ANNUITY OPTION IS ELECTED THE CONTRACT MUST MEET THE FOLLOWING
REQUIREMENTS:
1. One or both of the spouses must be named as the contract owner. For
contracts issued as Individual Retirement Annuities, only the person
for whom the Individual Retirement Annuity is established may be named
as the sole contract owner.
2. Both spouses must be named as co-annuitants and both must be age 85 or
younger at the time the contract is issued.
3. No other person may be named as contract owner, joint owner, contingent
owner, annuitant, co-annuitant or primary beneficiary.
4. If both spouses are alive upon annuitization, the contract owner(s)
must specify which spouse is the annuitant upon whose continuation of
life any annuity payments involving life contingencies depend. For
contracts issued as Individual Retirement Annuities, the person to
receive annuity payments at the time of annuitization must be the
contract owner.
Election of the Spousal Protection Annuity Option permits the following:
If one annuitant dies prior to annuitization of the contract, the surviving
spouse may continue the contract as the sole contract owner. If the surviving
spouse chooses to continue the contract, he or she may name a new beneficiary
but may not name another co-annuitant.
If the standard death benefit is higher than the contract value at the time of
the death of any annuitant, the contract value will be adjusted to equal the
standard death benefit amount.
CONTRACT OWNERSHIP
The contract owner has all rights under the contract. Purchasers who name
someone other than themselves as the contract owner will have no rights under
the contract.
Contract owners of Non-Qualified Contracts may name a new contract owner at any
time before the annuitization date. Any change of contract owner automatically
revokes any prior contract owner designation. Changes in contract ownership may
result in federal income taxation and may be subject to state and federal gift
taxes.
A change in contract ownership must be submitted in writing and recorded at
Nationwide's home office. Once recorded, the change will be effective as of the
date signed. However, the change will not affect any payments made or actions
taken by Nationwide before it was recorded.
The contract owner may also request a change in the annuitant, contingent
annuitant, contingent owner, beneficiary, or contingent beneficiary before the
annuitization date. These changes must be:
o on a Nationwide form;
o signed by the contract owner; and
o received at Nationwide's home office before the annuitization date.
Nationwide must review and approve any change requests. If the contract owner is
not a natural person and there is a change of the annuitant,
24
<PAGE> 25
distributions will be made as if the contract owner died at the time of the
change.
On the annuitization date, the annuitant will become the contract owner, unless
the contract owner is a Charitable Remainder Trust.
JOINT OWNERSHIP
Joint owners each own an undivided interest in the contract.
Contract owners can name a joint owner at any time before annuitization subject
to the following conditions:
o joint owners can only be named for Non-Qualified Contracts;
o joint owners must be spouses at the time joint ownership is requested,
unless state law requires Nationwide to allow non-spousal joint owners;
o the exercise of any ownership right in the contract will generally
require a written request signed by both joint owners;
o an election in writing signed by both contract owners must be made to
authorize Nationwide to allow the exercise of ownership rights
independently by either joint owner; and
o Nationwide will not be liable for any loss, liability, cost, or expense
for acting in accordance with the instructions of either joint owner.
CONTINGENT OWNERSHIP
The contingent owner is entitled to certain benefits under the contract if a
contract owner who is NOT the annuitant dies before the annuitization date and
there is no surviving joint owner.
The contract owner may name or change a contingent owner at any time before the
annuitization date. To change the contingent owner, a written request must be
submitted to Nationwide. Once Nationwide has recorded the change, it will be
effective as of the date it was signed, whether or not the contract owner was
living at the time it was recorded. The change will not effect any action taken
by Nationwide before the change was recorded.
ANNUITANT
The annuitant is the person who will receive annuity payments and upon whose
continuation of life any annuity payment involving life contingencies depends.
This person must be age 85 or younger at the time of contract issuance (age 83
or younger if electing a Guaranteed Minimum Income Benefit), unless Nationwide
approves a request for an annuitant of greater age. The annuitant may be changed
before the annuitization date with Nationwide's consent.
BENEFICIARY AND CONTINGENT BENEFICIARY
The beneficiary is the person who is entitled to the death benefit if the
annuitant dies before the annuitization date and there is no joint owner. The
contract owner can name more than one beneficiary. Multiple beneficiaries will
share the death benefit equally, unless otherwise specified.
The contract owner may change the beneficiary or contingent beneficiary during
the annuitant's lifetime by submitting a written request to Nationwide. Once
recorded, the change will be effective as of the date it was signed, whether or
not the annuitant was living at the time it was recorded. The change will not
effect any action taken by Nationwide before the change was recorded.
OPERATION OF THE CONTRACT
MINIMUM INITIAL AND SUBSEQUENT PURCHASE PAYMENTS
- ------------------------------------------------------------
MINIMUM MINIMUM
CONTRACT INITIAL SUBSEQUENT
TYPE PURCHASE PAYMENTS
PAYMENT
- ------------------------------------------------------------
Non-Qualified $10,000 $1,000
- ------------------------------------------------------------
Investment-only $10,000 $1,000
- ------------------------------------------------------------
IRA $10,000 $1,000
- ------------------------------------------------------------
Roth IRA $10,000 $1,000
- ------------------------------------------------------------
Tax Sheltered Annuity $10,000 $1,000
- ------------------------------------------------------------
Charitable Remainder $10,000 $1,000
Trust
- ------------------------------------------------------------
Subsequent purchase payments may not be permitted in states under certain
circumstances.
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<PAGE> 26
Guaranteed Term Options
Guaranteed Term Options are separate investment options under the contract. The
minimum amount that may be allocated to a Guaranteed Term Option is $1,000.
PRICING
Initial purchase payments allocated to sub-accounts will be priced at the
accumulation unit value determined no later than 2 business days after receipt
of an order to purchase. The application and all necessary information must be
complete. If the application is not complete, Nationwide may retain a purchase
payment for up to 5 business days while attempting to complete it. If the
application is not completed within 5 business days, the prospective purchaser
will be informed of the reason for the delay. The purchase payment will be
returned unless the prospective purchaser specifically consents to allow
Nationwide to hold the purchase payment until the application is completed.
Subsequent purchase payments will be priced based on the next available
accumulation unit value after the payment is received. The cumulative total of
all purchase payments under contracts issued by Nationwide on the life of any
one annuitant cannot exceed $1,000,000 without Nationwide's prior consent.
Purchase payments will not be priced when the New York Stock Exchange is closed
or on the following nationally recognized holidays:
o New Year's Day o Independence Day
o Martin Luther King, Jr. o Labor Day Day
o Presidents' Day o Thanksgiving
o Good Friday o Christmas
o Memorial Day
Nationwide also will not price purchase payments if:
1) trading on the New York Stock Exchange is restricted;
2) an emergency exists making disposal or valuation of securities held in
the variable account impracticable; or
3) the SEC, by order, permits a suspension or postponement for the
protection of security holders.
Rules and regulations of the SEC will govern as to when the conditions described
in (2) and (3) exist. If Nationwide is closed on days when New York Stock
Exchange is open, contract value may be affected since the contract owner will
not have access to their account.
ALLOCATION OF PURCHASE PAYMENTS
Nationwide allocates purchase payments to sub-accounts, the fixed account,
and/or Guaranteed Term Options as instructed by the contract owner. Shares of
the underlying mutual funds allocated to the sub-accounts are purchased at net
asset value, then converted into accumulation units. Contract owners can change
allocations or make exchanges among the sub-accounts, fixed account or
Guaranteed Term Options. However, no change may be made that would result in an
amount less than 1% of the purchase payments being allocated to any sub-account.
Certain transactions may be subject to conditions imposed by the underlying
mutual funds, as well as those set forth in the contract.
DETERMINING THE CONTRACT VALUE
The contract value is the sum of:
1) the value of amounts allocated to the sub-accounts of the variable
account;
2) amounts allocated to the fixed account; and
3) amounts allocated to a Guaranteed Term Option.
If part or all of the contract value is surrendered, or charges are assessed
against the whole contract value, Nationwide will deduct a proportionate amount
from each of the sub-accounts, and amounts from the fixed account and Guaranteed
Term Options based on current cash values.
Determining Variable Account Value - Valuing an Accumulation Unit
Purchase payments or transfers allocated to sub-accounts are accounted for in
accumulation
26
<PAGE> 27
units. Accumulation unit values (for each sub-account) are determined by
calculating the net investment factor for the underlying mutual funds for the
current valuation period and multiplying that result with the accumulation unit
values determined on the previous valuation period.
Nationwide uses the net investment factor as a way to calculate the investment
performance of a sub-account from valuation period to valuation period. For each
sub-account, the net investment factor shows the investment performance of the
underlying mutual fund in which a particular sub-account invests, including the
charges assessed against that sub-account for a valuation period.
The net investment factor is determined by dividing (a) by (b), and then
subtracting (c) from the result, where:
(a) is:
1) the net asset value of the underlying mutual fund as of the
end of the current valuation period; and
2) the per share amount of any dividend or income distributions
made by the underlying mutual fund (if the ex-dividend date
occurs during the current valuation period);
(b) is the net asset value of the underlying mutual fund determined as of
the end of the preceding valuation period; and
(c) is a factor representing the daily variable account charges, which may
include charges for contract options chosen by the contract owner. The
factor is equal to an annual rate ranging from 1.20% to 1.70% of the
daily net assets of the variable account, depending on which contract
features the contract owner chose.
Based on the net investment factor, the value of an accumulation unit may
increase or decrease. Changes in the net investment factor may not be directly
proportional to changes in the net asset value of the underlying mutual fund
shares because of the deduction of variable account charges.
Though the number of accumulation units will not change as a result of
investment experience, the value of an accumulation unit may increase or
decrease from valuation period to valuation period.
Nationwide determines the value of the fixed account by:
1) adding all amounts allocated to the fixed account, minus any amounts
previously transferred or withdrawn; and
2) adding any interest earned on the amounts allocated.
Determining the Guaranteed Term Option Value
Nationwide determines the value of a Guaranteed Term Option by:
1) adding all amounts allocated to any Guaranteed Term Option, minus
amounts previously transferred or withdrawn (which may be subject to a
market value adjustment);
2) adding any interest earned on the amounts allocated to any Guaranteed
Term Option; and
3) subtracting charges deducted in accordance with the contract.
TRANSFERS PRIOR TO ANNUITIZATION
Transfers from the Fixed Account to the Variable Account or a Guaranteed Term
Option
Fixed account allocations may be transferred to the variable account or a
Guaranteed Term Option only upon reaching the end of an interest rate guarantee
period. Normally, Nationwide will permit 100% of such fixed account allocations
to be transferred to the variable account or a Guaranteed Term Option; however
Nationwide may, under certain economic conditions and at its discretion, limit
the maximum transferable amount. Under no circumstances will the maximum
transferable amount be less than 10% of the fixed account allocation reaching
the end of an interest rate
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<PAGE> 28
guarantee period. Transfers of the fixed account allocations must be made within
45 days after reaching the end of an interest rate guarantee period.
Contract owners who use Dollar Cost Averaging may transfer from the fixed
account to the variable account (but not to Guaranteed Term Options) under the
terms of that program (see "Dollar Cost Averaging").
Transfers to the Fixed Account
Variable account allocations may be transferred to the fixed account at any
time. Normally, Nationwide will not restrict transfers from the variable account
to the fixed account; however, Nationwide may establish a maximum transfer limit
from the variable account to the fixed account. Except as noted below, under no
circumstances will the transfer limit be less than 10% of the current value of
the variable account, less any transfers made in the 12 months preceding the
date the transfer is requested, but not including transfers made prior to the
imposition of the transfer limit. However, where permitted by state law,
Nationwide reserves the right to refuse transfers or purchase payments to the
fixed account (whether from the variable account or a Guaranteed Term Option)
when the fixed account value is greater than or equal to 30% of the contract
value at the time the purchase payment is made or the transfer is requested.
Transfers from a Guaranteed Term Option
Transfers from a Guaranteed Term Option prior to maturity are subject to a
market value adjustment.
Transfers Among the Sub-Accounts
Allocations may be transferred among the sub-accounts once per valuation period.
TRANSFERS AFTER ANNUITIZATION
After annuitization, transfers may only be made on the anniversary of the
annuitization date.
TRANSFER REQUESTS
Nationwide will accept transfer requests in writing or, in those states that
allow them, over the telephone. Nationwide will use reasonable procedures to
confirm that telephone instructions are genuine and will not be liable for
following telephone instructions that it reasonably determined to be genuine.
Nationwide may withdraw the telephone exchange privilege upon 30 days written
notice to contract owners.
Amounts transferred to the variable account will receive the accumulation unit
value next determined after the transfer request is received. Interest Rate
Guarantee Period The interest rate guarantee period is the period of time that
the fixed account interest rate is guaranteed to remain the same.
Within 45 days of the end of an interest rate guarantee period, transfers may be
made from the fixed account to the variable account or to the Guaranteed Term
Options. Nationwide will determine the amount that may be transferred and will
declare this amount at the end of the guarantee period. This amount will not be
less than 10% of the amount in the fixed account that is maturing.
For new purchase payments allocated to the fixed account, or transfers to the
fixed account from the variable account or a Guaranteed Term Option, this period
begins on the date of deposit or transfer and ends on the one year anniversary
of the deposit or transfer. The guaranteed interest rate period may last for up
to 3 months beyond the 1 year anniversary because guaranteed terms end on the
last day of a calendar quarter.
The interest rate guarantee period does not in any way refer to interest rate
crediting practices connected with Guaranteed Term Options.
During an interest rate guarantee period, transfers cannot be made from the
fixed account and amounts transferred to the fixed account must remain on
deposit.
Market Timing Firms
Some contract owners may use market timing firms or other third parties to make
transfers on their behalf. Generally, in order to take
28
<PAGE> 29
advantage of perceived market trends, market timing firms will submit transfer
or exchange requests on behalf of multiple contract owners at the same time.
Sometimes this can result in unusually large transfers of funds. These large
transfers might interfere with the ability of Nationwide or the underlying
mutual fund to process transactions. This can potentially disadvantage contract
owners not using market timing firms. To avoid this, Nationwide may modify
transfer and exchange rights of contract owners who use market timing firms (or
other third parties) to transfer or exchange funds on their behalf.
The exchange and transfer rights of individual contract owners will not be
modified in any way when instructions are submitted directly by the contract
owner, or by the contract owner's representative (as authorized by the execution
of a valid Nationwide Limited Power of Attorney Form).
To protect contract owners, Nationwide may refuse exchange and transfer
requests:
o submitted by any agent acting under a power of attorney on behalf of
more than one contract owner; or
o submitted on behalf of individual contract owners who have executed
pre-authorized exchange forms which are submitted by market timing
firms (or other third parties) on behalf of more than one contract
owner at the same time.
Nationwide will not restrict exchange rights unless Nationwide believes it to be
necessary for the protection of all contract owners.
RIGHT TO REVOKE
Contract owners have a ten day "free look" to examine the contract. The contract
may be returned to Nationwide's home office for any reason within ten days of
receipt and Nationwide will refund the contract value or another amount required
by law. The refunded contract value will reflect the deduction of any contract
charges, unless otherwise required by law. All Individual Retirement Annuity and
Roth IRA refunds will be a return of purchase payments. State and/or federal law
may provide additional free look privileges.
Liability of the variable account under this provision is limited to the
contract value in each sub-account on the date of revocation. Any additional
amounts refunded to the contract owner will be paid by Nationwide.
SURRENDER (REDEMPTION)
Contract owners may surrender some or all of their contract value before the
earlier of the annuitization date or the annuitant's death. Surrender requests
must be in writing and Nationwide may require additional information. When
taking a full surrender, the contract must accompany the written request.
Nationwide may require a signature guarantee.
Nationwide will pay any amounts surrendered from the sub-accounts within 7 days.
However, Nationwide may suspend or postpone payment when it is unable to price a
purchase payment or transfer.
PARTIAL SURRENDERS (PARTIAL REDEMPTIONS)
Nationwide will surrender accumulation units from the sub-accounts and an amount
from the fixed account and Guaranteed Term Options. The amount withdrawn from
each investment option will be in proportion to the value in each option at the
time of the surrender request.
A CDSC may apply. The contract owner may take the CDSC from either:
a) the amount requested; or
b) the contract value remaining after the contract owner has received the
amount requested.
If the contract owner does not make a specific election, any applicable CDSC
will be taken from the contract value remaining after the contract owner has
received the amount requested.
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<PAGE> 30
FULL SURRENDERS (FULL REDEMPTIONS)
The contract value upon full surrender may be more or less than the total of all
purchase payments made to the contract. The contract value will reflect variable
account charges, underlying mutual fund charges and the investment performance
of the underlying mutual funds. A CDSC may apply.
SURRENDERS UNDER A TEXAS OPTIONAL RETIREMENT PROGRAM OR A LOUISIANA OPTIONAL
RETIREMENT PLAN
Redemption restrictions apply to contracts issued under the Texas Optional
Retirement Program or the Louisiana Optional Retirement Plan.
The Texas Attorney General has ruled that participants in contracts issued under
the Texas Optional Retirement Program may only take withdrawals if:
o the participant dies;
o the participant retires;
o the participant terminates employment due to total disability; or
o the participant that works in a Texas public institution of higher
education terminates employment.
A participant under a contract issued under the Louisiana Optional Retirement
Plan may only take distributions from the contract upon retirement or
termination of employment. All retirement benefits under this type of plan must
be paid as lifetime income; lump sum cash payments are not permitted, except for
death benefits.
Due to the restrictions described above, a participant under either of these
plans will not be able to withdraw cash values from the contract unless one of
the applicable conditions is met. However, contract value may be transferred to
other carriers, subject to any CDSC.
Nationwide issues this contract to participants in the Texas Optional Retirement
Program in reliance upon and in compliance with Rule 6c-7 of the Investment
Company Act of 1940. Nationwide issues this contract to participants in the
Louisiana Optional Retirement Plan in reliance upon and in compliance with an
exemptive order that Nationwide received from the SEC on August 22, 1990.
SURRENDERS UNDER A TAX SHELTERED ANNUITY
Contract owners of a Tax Sheltered Annuity may surrender part or all of their
contract value before the earlier of the annuitization date or the annuitant's
death, except as provided below:
A. Contract value attributable to contributions made under a qualified
cash or deferred arrangement (within the meaning of Internal Revenue
Code Section 402(g)(3)(A)), a salary reduction agreement (within the
meaning of Internal Revenue Code Section 402(g)(3)(C)), or transfers
from a Custodial Account (described in Section 403(b)(7) of the
Internal Revenue Code), may be surrendered only:
1. when the contract owner reaches age 59 1/2, separates from
service, dies or becomes disabled (within the meaning of
Internal Revenue Code Section 72(m)(7)); or
2. in the case of hardship (as defined for purposes of Internal
Revenue Code Section 401(k)), provided that any such hardship
surrender may NOT include any income earned on salary
reduction contributions.
B. The surrender limitations described in Section A also apply to:
1. salary reduction contributions to Tax Sheltered Annuities made
for plan years beginning after December 31, 1988;
2. earnings credited to such contracts after the last plan year
beginning before January 1, 1989, on amounts attributable to
salary reduction contributions; and
3. all amounts transferred from 403(b)(7) Custodial Accounts
(except that earnings and employer contributions as of
December 31, 1988 in such Custodial
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Accounts may be withdrawn in the case of hardship).
C. Any distribution other than the above, including a ten day free look
cancellation of the contract (when available) may result in taxes,
penalties and/or retroactive disqualification of a Tax Sheltered
Annuity.
In order to prevent disqualification of a Tax Sheltered Annuity after a ten day
free look cancellation, Nationwide will transfer the proceeds to another Tax
Sheltered Annuity upon proper direction by the contract owner.
These provisions explain Nationwide's understanding of current withdrawal
restrictions. These restrictions may change.
Distributions pursuant to Qualified Domestic Relations Orders will not violate
the restrictions stated above.
LOAN PRIVILEGE
The loan privilege is ONLY available to owners of Tax Sheltered Annuities. These
contract owners can take loans from the contract value beginning 30 days after
the contract is issued up to the annuitization date. Loans are subject to the
terms of the contract, the plan and the Internal Revenue Code. Nationwide may
modify the terms of a loan to comply with changes in applicable law.
MINIMUM & MAXIMUM LOAN AMOUNTS
Contract owners may borrow a minimum of $1,000, unless Nationwide is required by
law to allow a lesser minimum amount. Each loan must individually satisfy the
contract minimum amount.
Nationwide will calculate the maximum nontaxable loan amount based upon
information provided by the participant or the employer. Loans may be taxable if
a participant has additional loans from other plans. The total of all
outstanding loans must not exceed the following limits:
- ---------------------------------------------------------
CONTRACT MAXIMUM OUTSTANDING LOAN
VALUES BALANCE ALLOWED
- ---------------------------------------------------------
NON-ERISA PLANS up to up to 80% of contract
$20,000 value (not more than
$10,000)
- ---------------------------------------------------------
$20,000 up to 50% of contract
and over value (not more than
$50,000*)
- ---------------------------------------------------------
- ---------------------------------------------------------
ERISA PLANS All up to 50% of contract
value (not more than
$50,000*)
- ---------------------------------------------------------
* The $50,000 limits will be reduced by the highest outstanding balance owed
during the previous 12 months.
For salary reduction Tax Sheltered Annuities, loans may be secured only by the
contract value.
LOAN PROCESSING FEE
Nationwide charges a $25 loan processing fee at the time each new loan is
processed. This fee compensates Nationwide for expenses related to administering
and processing loans.
The fee is taken from the sub-accounts, fixed account, and Guaranteed Term
Options in proportion to the contract value at the time the loan is processed.
HOW LOAN REQUESTS ARE PROCESSED
All loans are made from the collateral fixed account. Nationwide transfers
accumulation units in proportion to the assets in each sub-account to the
collateral fixed account until the requested amount is reached. If there are not
enough accumulation units available in the contract to reach the requested loan
amount, Nationwide next transfers contract value from the fixed account. Any
remaining required collateral will be transferred from the Guaranteed Term
Options. Transfers from the Guaranteed Term Options may be subject to a market
value adjustment. No CDSC will be deducted on transfers related to loan
processing.
LOAN INTEREST
The outstanding loan balance in the collateral fixed account is credited with
interest until the loan is repaid in full. The interest rate will be 2.25% less
than the loan interest rate fixed by Nationwide. The interest rate is guaranteed
never to fall below 3.0%.
Specific loan terms are disclosed at the time of loan application or issuance.
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<PAGE> 32
LOAN REPAYMENT
Loans must be repaid in five years. However, if the loan is used to purchase the
contract owner's principal residence, the contract owner has 15 years to repay
the loan.
Contract owners must identify loan repayments as loan repayments or they will be
treated as purchase payments and will not reduce the outstanding loan. Payments
must be substantially level and made at least quarterly.
Loan repayments will consist of principal and interest in amounts set forth in
the loan agreement. Repayments are allocated to the sub-accounts in accordance
with the contract, unless Nationwide and the contract owner have agreed to amend
the contract at a later date on a case by case basis.
Loan repayments to the Guaranteed Term Options must be at least $1,000. If the
proportional share of the repayment to the Guaranteed Term Option is less than
$1,000, that portion of the repayment will be allocated to the NSAT-Money Market
Fund unless the contract owner directs otherwise.
DISTRIBUTIONS & ANNUITY PAYMENTS
Distributions made from the contract while a loan is outstanding will be reduced
by the amount of the outstanding loan plus accrued interest if:
o the contract is surrendered;
o the contract owner/annuitant dies;
o the contract owner who is not the annuitant dies prior to
annuitization; or
o annuity payments begin.
TRANSFERRING THE CONTRACT
Nationwide reserves the right to restrict any transfer of the contract while the
loan is outstanding.
GRACE PERIOD & LOAN DEFAULT
If a loan payment is not made when due, interest will continue to accrue. A
grace period may be available (please refer to the terms of the loan agreement).
If a loan payment is not made by the end of the applicable grace period, the
entire loan will be treated as a deemed distribution and will be taxable to the
borrower. This deemed distribution may also be subject to an early withdrawal
tax penalty by the Internal Revenue Service.
After default, interest will continue to accrue on the loan. Defaulted amounts,
plus interest, are deducted from the contract value when the participant is
eligible for a distribution of at least that amount. Additional loans are not
available while a previous loan is in default.
ASSIGNMENT
Contract rights are personal to the contract owner and may not be assigned
without Nationwide's written consent.
A Non-Qualified Contract owner may assign some or all rights under the contract.
An assignment must occur before annuitization while the annuitant is alive. Once
proper notice of assignment is recorded by Nationwide's home office, the
assignment will become effective as of the date the written request was signed.
Investment-only Contracts, Individual Retirement Annuities, Roth IRAs, and Tax
Sheltered Annuities may not be assigned, pledged or otherwise transferred except
where allowed by law.
Nationwide is not responsible for the validity or tax consequences of any
assignment. Nationwide is not liable for any payment or settlement made before
the assignment is recorded. Assignments will not be recorded until Nationwide
receives sufficient direction from the contract owner and the assignee regarding
the proper allocation of contract rights.
Amounts pledged or assigned will be treated as distributions and will be
included in gross income to the extent that the cash value exceeds the
investment in the contract for the taxable year in which it was pledged or
assigned. Amounts assigned may be subject to a tax
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<PAGE> 33
penalty equal to 10% of the amount included in gross income.
Assignment of the entire contract value may cause the portion of the contract
value exceeding the total investment in the contract and previously taxed
amounts to be included in gross income for federal income tax purposes each year
that the assignment is in effect.
CONTRACT OWNER SERVICES
ASSET REBALANCING
Asset rebalancing is the automatic reallocation of contract values to the
sub-accounts on a predetermined percentage basis. Asset rebalancing is not
available for assets held in the fixed account or the Guaranteed Term Options.
Requests for asset rebalancing must be on a Nationwide form.
Asset rebalancing occurs every three months or on another frequency if permitted
by Nationwide. If the last day of the three month period falls on a Saturday,
Sunday, recognized holiday, or any other day when the New York Stock Exchange is
closed, asset rebalancing will occur on the next business day.
Asset rebalancing may be subject to employer limitations or restrictions for
contracts issued to a Tax Sheltered Annuity plan. Contract owners should consult
a financial adviser to discuss the use of asset rebalancing.
Nationwide reserves the right to stop establishing new asset rebalancing
programs. Nationwide also reserves the right to assess a processing fee for this
service.
DOLLAR COST AVERAGING
Dollar Cost Averaging is a long-term transfer program that allows you to make
regular, level investments over time. It involves the automatic transfer of a
specified amount from the fixed account and/or certain sub-accounts into other
sub-accounts. Nationwide does not guarantee that this program will result in
profit or protect contract owners from loss.
Contract owners direct Nationwide to automatically transfer specified amounts
from the fixed account and the Federated Insurance Series - Federated Quality
Bond Fund II, Fidelity VIP High Income Portfolio, NSAT Government Bond Fund,
NSAT Nationwide High Income Bond Fund, and NSAT Money Market Fund to any other
underlying mutual fund. Dollar Cost Averaging transfers may not be directed to
Guaranteed Term Options.
Transfers occur monthly or on another frequency if permitted by Nationwide.
Nationwide will process transfers until either the value in the originating
investment option is exhausted, or the contract owner instructs Nationwide in
writing to stop the transfers.
Nationwide reserves the right to stop establishing new Dollar Cost Averaging
programs. Nationwide also reserves the right to assess a processing fee for this
service.
Dollar Cost Averaging from the Fixed Account
Transfers from the fixed account must be equal to or less than 1/30th of the
fixed account value at the time the program is requested. A Dollar Cost
Averaging program which transfers amounts from the fixed account to the variable
account is not the same as an Enhanced Rate Dollar Cost Averaging program.
Contract owners that wish to utilize Dollar Cost Averaging from the fixed
account should first inquire whether any Enhanced Rate Dollar Cost Averaging
programs are available.
Enhanced Rate Dollar Cost Averaging
Nationwide may, from time to time, offer Enhanced Rate Dollar Cost Averaging
programs. Contract owners may participate in this program if their contract
value is $10,000 or more. Dollar Cost Averaging transfers for this program may
only be made from the fixed account. Such Enhanced Rate Dollar Cost Averaging
programs allow the contract owner to earn a higher rate of interest on assets in
the fixed account than would normally be credited when not participating in the
program. Each enhanced interest rate is guaranteed for as long as the
corresponding program is in effect.
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<PAGE> 34
Nationwide will process transfers until either amounts in the enhanced rate
fixed account are exhausted, or the contract owner instructs Nationwide in
writing to stop the transfers. For this program only, when a written request to
discontinue transfers is received, Nationwide will automatically transfer the
remaining amount in the enhanced rate fixed account to the NSAT Money Market
Fund.
SYSTEMATIC WITHDRAWALS
Systematic withdrawals allow contract owners to receive a specified amount (of
at least $100) on a monthly, quarterly, semi-annual, or annual basis. Requests
for systematic withdrawals and requests to discontinue systematic withdrawals
must be in writing.
The withdrawals will be taken from the sub-accounts and the fixed account
proportionately unless Nationwide is instructed otherwise. Systematic
withdrawals are not available from the Guaranteed Term Options.
Nationwide will withhold federal income taxes from systematic withdrawals unless
otherwise instructed by the contract owner. The Internal Revenue Service may
impose a 10% penalty tax if the contract owner is under age 59 1/2 unless the
contract owner has made an irrevocable election of distributions of
substantially equal payments.
If the contract owner takes systematic withdrawals, the maximum amount that can
be withdrawn annually without a CDSC is the greatest of:
1) 10% of all purchase payments made to the contract as of the withdrawal
date;
2) an amount withdrawn to meet minimum distribution requirements under the
Internal Revenue Code; or
3) a percentage of the contract value based on the contract owner's age,
as shown in the table that follows:
-----------------------------------------------------
CONTRACT OWNER'S PERCENTAGE OF
AGE CONTRACT VALUE
-----------------------------------------------------
Under age 59 1/2 5%
-----------------------------------------------------
Age 59 1/2 through age 61 7%
-----------------------------------------------------
Age 62 through age 64 8%
-----------------------------------------------------
Age 65 through age 74 10%
-----------------------------------------------------
Age 75 and over 13%
-----------------------------------------------------
Contract value and contract owner's age are determined as of the date the
request for the withdrawal program is recorded by Nationwide's home office. For
joint owners, the older joint owner's age will be used.
If total amounts withdrawn in any contract year exceed the CDSC-free amount
described above, those amounts will only be eligible for the 10% of purchase
payment CDSC-free withdrawal privilege described in the "Contingent Deferred
Sales Charge" section. The total amount of CDSC for that contract year will be
determined in accordance with that provision.
The CDSC-free withdrawal privilege for systematic withdrawals is non-cumulative.
Free amounts not taken during any contract year cannot be taken as free amounts
in a subsequent contract year.
Nationwide reserves the right to stop establishing new systematic withdrawal
programs. Nationwide also reserves the right to assess a processing fee for this
service. Systematic withdrawals are not available before the end of the ten day
free look period (see "Right to Revoke").
ANNUITY COMMENCEMENT DATE
The annuity commencement date is the date on which annuity payments are
scheduled to begin. The contract owner may change the annuity commencement date
before annuitization. This change must be in writing and approved by Nationwide.
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<PAGE> 35
ANNUITIZING THE CONTRACT
ANNUITIZATION DATE
The annuitization date is the date that annuity payments begin. It will be the
first day of a calendar month unless otherwise agreed, and must be at least 2
years after the contract is issued. If the contract is issued to fund a Tax
Sheltered Annuity, annuitization may occur during the first 2 years subject to
Nationwide's approval.
ANNUITIZATION
Annuitization is the period during which annuity payments are received. It is
irrevocable once payments have begun. Upon arrival of the annuitization date,
the annuitant must choose:
1) an annuity payment option; and
2) either a fixed payment annuity, variable payment annuity, or an
available combination.
Nationwide guarantees that each payment under a fixed payment annuity will be
the same throughout annuitization. Under a variable payment annuity, the amount
of each payment will vary with the performance of the underlying mutual funds
chosen by the contract owner.
FIXED PAYMENT ANNUITY
A fixed payment annuity is an annuity where the amount of the annuity payments
remains level.
The first payment under a fixed payment annuity is determined on the
annuitization date on an "age last birthday" basis by:
1) deducting applicable premium taxes from the total contract value; then
2) applying the contract value amount specified by the contract owner to
the fixed payment annuity table for the annuity payment option elected.
Subsequent payments will remain level unless the annuity payment option elected
provides otherwise. Nationwide does not credit discretionary interest during
annuitization.
VARIABLE PAYMENT ANNUITY
A variable payment annuity is an annuity where the amount of the annuity
payments will vary depending on the performance of the underlying mutual funds
selected.
- --------------------------------------------------------------------------------
A VARIABLE PAYMENT ANNUITY MAY NOT BE
ELECTED WHEN EXERCISING A GUARANTEED
MINIMUM INCOME BENEFIT OPTION.
- --------------------------------------------------------------------------------
The first payment under a variable payment annuity is determined on the
annuitization date on an "age last birthday" basis by:
1) deducting applicable premium taxes from the total contract value; then
2) applying the contract value amount specified by the contract owner to
the variable payment annuity table for the annuity payment option
elected.
The dollar amount of the first payment is converted into a set number of annuity
units that will represent each monthly payment. This is done by dividing the
dollar amount of the first payment by the value of an annuity unit as of the
annuitization date. This number of annuity units remains fixed during
annuitization.
The second and subsequent payments are determined by multiplying the fixed
number of annuity units by the annuity unit value for the valuation period in
which the payment is due. The amount of the second and subsequent payments will
vary with the performance of the selected underlying mutual funds. Nationwide
guarantees that variations in mortality experience from assumptions used to
calculate the first payment will not affect the dollar amount of the second and
subsequent payments.
Assumed Investment Rate
An assumed investment rate is the percentage rate of return assumed to determine
the amount of the first payment under a variable payment annuity. Nationwide
uses the assumed investment rate of 3.5% to calculate the first annuity payment
and to calculate the investment performance of an underlying mutual fund in
order to determine subsequent payments under a
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<PAGE> 36
variable payment annuity. An assumed investment rate is the percentage rate of
return required to maintain level variable annuity payments. Subsequent variable
annuity payments may be more or less than the first payment based on whether
actual investment performance of the underlying mutual funds is higher or lower
than the assumed investment rate of 3.5%.
Value of an Annuity Unit
Annuity unit values for sub-accounts are determined by multiplying the net
investment factor for the valuation period for which the annuity unit is being
calculated by the immediately preceding valuation period's annuity unit value,
and multiplying the result by an interest factor to neutralize the assumed
investment rate of 3.5% per annum built into the variable payment annuity
purchase rate basis in the contracts.
Exchanges among Underlying Mutual Funds
Exchanges among underlying mutual funds during annuitization must be in writing.
Exchanges may only be made on each anniversary of the annuitization date.
FREQUENCY AND AMOUNT OF ANNUITY PAYMENTS
Payments are made based on the annuity payment option selected, unless:
o the amount to be distributed is less than $5,000, in which case
Nationwide may make one lump sum payment of the contract value; or
o an annuity payment would be less than $50, in which case Nationwide can
change the frequency of payments to intervals that will result in
payments of at least $50. Payments will be made at least annually.
GUARANTEED MINIMUM INCOME BENEFIT OPTIONS ("GMIB")
What is a GMIB?
A GMIB is a benefit which ensures the availability of a minimum amount when the
contract owner wishes to annuitize the contract. This minimum amount, referred
to as the Guaranteed Annuitization Value, may be used at specified times to
provide a guaranteed level of determinable lifetime annuity payments. The GMIB
may provide protection in the event of lower contract values that may result
from the investment performance of the contract.
How is the Guaranteed Annuitization Value Determined?
There are two options available at the time of application. The Guaranteed
Annuitization Value is determined differently based on which option the contract
owner elects.
Calculation Under GMIB Option 1
The Guaranteed Annuitization Value is equal to (a) - (b), but will never be
greater than 200% of all purchase payments, where:
(a) is the sum of all purchase payments, plus interest accumulated at a
compounded annual rate of 5% starting at the date of issue and ending
on the contract anniversary occurring immediately prior to the
annuitant's 86th birthday;
(b) is the reduction to (a) due to surrenders made from the contract. All
such reductions will be proportionately the same as reductions to the
contract value caused by surrenders. For example, a surrender which
reduces the contract value by 25% will also reduce the Guaranteed
Annuitization Value by 25%.
Special Restrictions for GMIB Option 1
After the first contract year, if the value of the contract owner's fixed
account allocation becomes greater than 30% of the contract value in any
contract year due to:
1) the application of additional purchase payments;
2) surrenders; or
3) transfers from the variable account,
then 0% interest will accrue in that contract year for purposes of calculating
the Guaranteed Annuitization Value.
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<PAGE> 37
If the contract owner's fixed account allocation becomes greater than 30% of the
contract value solely as a result of fluctuations in the value of the variable
account, then interest will continue to accrue for the purposes of the
Guaranteed Annuitization Value at 5% annually, subject to the other terms and
conditions outlined herein.
Calculation Under GMIB Option 2
The Guaranteed Annuitization Value will be equal to the highest contract value
on any contract anniversary occurring prior to the annuitant's 86th birthday,
less an adjustment for amounts surrendered, plus purchase payments received
after that contract anniversary. If the contract owner elects to annuitize the
contract using this GMIB option prior to the first contract anniversary, the
Guaranteed Annuitization Value will be equal to the amount of purchase payments
paid, less an adjustment for amounts surrendered.
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<PAGE> 38
GMIB Illustrations
The following charts illustrate the amount of income that will be provided to an
annuitant if the contract owner annuitizes the contract at the 7th, 10th or 15th
contract anniversary date, using a GMIB.
The illustrations assume the following:
o An initial purchase payment of $100,000 is made to the contract and
allocated to the variable account;
o There are no surrenders from the contract or transfers to the fixed
account (raising the fixed account value to greater than 30% of the
contract value);
o The contract is issued to a MALE at age 55, 65 or 70;
o A Life Annuity with 120 Months Guaranteed Fixed Payment Annuity Option
is elected.
<TABLE>
<CAPTION>
7 Years in Accumulation
$140,710.04 for GMIB at Annuitization
- ----------------------------------------------------------------------------------------------------------------------
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
55 62 $4.72 $664.15
- ----------------------------------------------------------------------------------------------------------------------
65 72 $5.96 $838.63
- ----------------------------------------------------------------------------------------------------------------------
70 77 $5.79 $955.42
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
10 Years in Accumulation
$162,889.46 for GMIB at Annuitization
- ----------------------------------------------------------------------------------------------------------------------
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
55 65 $5.03 $819.33
- ----------------------------------------------------------------------------------------------------------------------
65 75 $6.44 $1,049.01
- ----------------------------------------------------------------------------------------------------------------------
70 80 $7.32 $1,192.35
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
15 Years in Accumulation
$200,000.00 for GMIB at Annuitization
- ----------------------------------------------------------------------------------------------------------------------
Male Age at Issue Male Age at Annuitization GMIB Purchase Rate* Monthly GMIB
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
55 70 $5.66 $1,132.00
- ----------------------------------------------------------------------------------------------------------------------
65 80 $7.32 $1,464.00
- ----------------------------------------------------------------------------------------------------------------------
70 85 $8.18 $1,636.00
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
* Guaranteed Monthly Benefit per $1,000 applied.
The illustrations should be used as a tool to assist an investor in determining
whether purchasing and exercising a GMIB option is right for them. The
guaranteed purchase rates assumed in the illustrations may not apply in some
states, or for contracts issued under an employer sponsored plan. Different
guaranteed purchase rates will also apply for females, for males who annuitize
at ages other than the ages shown above, or for annuitizations under other
annuity payment options. Where different guaranteed purchase rates apply, GMIB
amounts shown above will be different. In all cases, the guaranteed purchase
rates used to calculate the GMIB will be the same as the purchase rates
guaranteed in the contract for fixed annuitizations without the GMIB.
The purchase rates available in connection with annuitization options under a
GMIB are minimum guaranteed purchase rates. Alternative purchase rates, which
may be more favorable, may apply to annuitizations which occur without a GMIB
option.
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<PAGE> 39
When May the Guaranteed Annuitization Value be Used?
The contract owner may use the Guaranteed Annuitization Value by annuitizing the
contract during the thirty day period following any contract anniversary:
(1) after the contract has been in effect for seven years; AND
(2) the annuitant has attained age 60.
What Annuity Payment Options May Be Used With the Guaranteed Annuitization
Value?
The contract owner may elect any life contingent FIXED ANNUITY PAYMENT OPTION
calculated using the guaranteed annuity purchase rates set forth in the
contract. Such Fixed Annuity Payment Options include:
o Life Annuity;
o Joint and Last Survivor Annuity; and
o Life Annuity with 120 or 240 Monthly Payments Guaranteed.
Other GMIB Terms and Conditions
**PLEASE READ CAREFULLY**
o The GMIB must be elected at the time of application.
o The annuitant must be age 82 or younger at the time the contract is
issued.
The GMIB is irrevocable and will remain for as long as the contract remains in
force.
- --------------------------------------------------------------------------------
IMPORTANT CONSIDERATIONS TO KEEP IN MIND REGARDING THE GMIB OPTION
While a GMIB does provide a Guaranteed Annuitization Value, A GMIB MAY NOT BE
APPROPRIATE FOR ALL INVESTORS and should be understood completely and analyzed
thoroughly before being elected.
o A GMIB DOES NOT in any way guarantee the performance of any underlying
mutual fund, or any other investment option available under the
contract.
o Once elected, the GMIB is irrevocable, meaning that even if the
investment performance of underlying mutual funds or other available
investment options surpasses the minimum guarantees associated with the
GMIB, the GMIB charges will still be assessed.
o The GMIB in no way restricts or limits the rights of contract owners to
annuitize the contract at other times permitted under the contract, nor
will it in any way restrict the right to annuitize the contract using
contract values that may be higher than the Guaranteed Annuitization
Value.
o Please take advantage of the guidance of a qualified financial adviser
in evaluating the GMIB options, and all other aspects of the contract.
o GMIB may not be approved in all state jurisdictions.
- --------------------------------------------------------------------------------
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<PAGE> 40
ANNUITY PAYMENT OPTIONS
Contract owners must elect an annuity payment option before the annuitization
date. The annuity payment options are:
(1) LIFE ANNUITY - An annuity payable periodically, but at least annually,
for the lifetime of the annuitant. Payments will end upon the
annuitant's death. For example, if the annuitant dies before the second
annuity payment date, the annuitant will receive only one annuity
payment. The annuitant will only receive two annuity payments if he or
she dies before the third annuity payment date, and so on.
(2) JOINT AND LAST SURVIVOR ANNUITY - An annuity payable periodically, but
at least annually, during the joint lifetimes of the annuitant and a
designated second individual. If one of these parties dies, payments
will continue for the lifetime of the survivor. As is the case under
option 1, there is no guaranteed number of payments. Payments end upon
the death of the last surviving party, regardless of the number of
payments received.
(3) LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED - An annuity
payable monthly during the lifetime of the annuitant. If the annuitant
dies before all of the guaranteed payments have been made, payments
will continue to the end of the guaranteed period and will be paid to a
designee chosen by the annuitant at the time the annuity payment option
was elected.
The designee may elect to receive the present value of the remaining
guaranteed payments in a lump sum. The present value will be computed
as of the date Nationwide receives the notice of the annuitant's death.
Not all of the annuity payment options may be available in all states. Contract
owners may request other options before the annuitization date. These options
are subject to Nationwide's approval.
No distribution for Non-Qualified Contracts will be made until an annuity
payment option has been elected. Individual Retirement Annuities and Tax
Sheltered Annuities are subject to the "minimum distribution" requirements set
forth in the plan, contract, and the Internal Revenue Code.
DEATH BENEFITS
DEATH OF CONTRACT OWNER - NON-QUALIFIED CONTRACTS
If the contract owner who is not the annuitant dies before the annuitization
date, the joint owner becomes the contract owner. If no joint owner is named,
the contingent owner becomes the contract owner. If no contingent owner is
named, the last surviving contract owner's estate becomes the contract owner.
If the contract owner and annuitant are the same, and the contract
owner/annuitant dies before the annuitization date, the contingent owner will
not have any rights in the contract unless the contingent owner is also the
beneficiary.
Distributions under Non-Qualified Contracts will be made pursuant to the
"Required Distributions for Non-Qualified Contracts" provision.
DEATH OF ANNUITANT - NON-QUALIFIED CONTRACTS
If the annuitant who is not a contract owner dies before the annuitization date,
a death benefit is payable to the beneficiary unless a contingent annuitant is
named. If a contingent annuitant is named, the contingent annuitant becomes the
annuitant and no death benefit is payable.
The beneficiary may elect to receive the death benefit:
(1) in a lump sum;
(2) as an annuity; or
(3) in any other manner permitted by law and approved by Nationwide.
The beneficiary must notify Nationwide of this election within 60 days of the
annuitant's death.
If no beneficiaries survive the annuitant, the contingent beneficiary(ies)
receives the death
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<PAGE> 41
benefit. Contingent beneficiaries will share the death benefit equally, unless
otherwise specified.
If no beneficiaries or contingent beneficiaries survive the annuitant, the
contract owner or the last surviving contract owner's estate will receive the
death benefit.
If the contract owner is a Charitable Remainder Trust and the annuitant dies
before the annuitization date, the death benefit will accrue to the Charitable
Remainder Trust. Any designation in conflict with the Charitable Remainder
Trust's right to the death benefit will be void.
If the annuitant dies after the annuitization date, any benefit that may be
payable will be paid according to the selected annuity payment option.
DEATH OF CONTRACT OWNER/ANNUITANT
If a contract owner who is also the annuitant dies before the annuitization
date, a death benefit is payable according to the "Death of Annuitant -
Non-Qualified Contracts" provision.
A joint owner will receive a death benefit if a contract owner/annuitant dies
before the annuitization date.
If the contract owner/annuitant dies after the annuitization date, any benefit
that may be payable will be paid according to the selected annuity payment
option.
DEATH BENEFIT PAYMENT
Contract owners may select one of two death benefits available under the
contract at the time of application (not all death benefit options may be
available in all states). If no selection is made at the time of application,
the death benefit will be the One-Year Step Up Death Benefit.
The death benefit value is determined as of the date Nationwide receives:
(1) proper proof of the annuitant's death;
(2) an election specifying the distribution method; and
(3) any state required form(s).
If a contract owner who is also the annuitant dies, and the beneficiary is the
contract owner/ annuitant's spouse who is:
(a) eligible to continue the contract; and
(b) entitled to a death benefit,
then the spousal-beneficiary shall have the option of continuing the contract
with the contract value adjusted to include the difference between the death
benefit (if greater than the contract value) and the contract value at the time
of the contract owner/annuitant's death.
One-Year Step Up Death Benefit (Standard Death Benefit)
If the annuitant dies before the annuitization date, the death benefit will be
the greatest of:
(1) the contract value;
(2) the total of all purchase payments, less an adjustment for amounts
surrendered; or
(3) the highest contract value on any contract anniversary prior to the
annuitant's 86th birthday, less an adjustment for amounts subsequently
surrendered, plus purchase payments received after that contract
anniversary.
The adjustment for amounts surrendered will reduce items (2) and (3) above in
the same proportion that the contract value was reduced on the date(s) of the
partial surrender(s).
5% Enhanced Death Benefit
If the annuitant dies before the annuitization date, the death benefit will be
the greater of:
(1) the contract value; or
(2) the total of all purchase payments, less any amounts surrendered,
accumulated at 5% simple interest from the date of each purchase
payment or surrender to the most recent contract anniversary prior to
the annuitant's 86th birthday, less an adjustment for amounts
subsequently surrendered, plus purchase payments received since that
contract anniversary.
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<PAGE> 42
The total accumulated amount will not exceed 200% of the net of purchase
payments and amounts surrendered. The adjustment for amounts subsequently
surrendered after the most recent contract anniversary will reduce the 5%
interest anniversary value in the same proportion that the contract value was
reduced on the date(s) of the partial surrender(s).
REQUIRED DISTRIBUTIONS
REQUIRED DISTRIBUTIONS FOR NON-QUALIFIED CONTRACTS
Internal Revenue Code Section 72(s) requires Nationwide to make certain
distributions when a contract owner dies. The following distributions will be
made according to those requirements:
1) If any contract owner dies on or after the annuitization date and
before the entire interest in the contract has been distributed, then
the remaining interest must be distributed at least as rapidly as the
distribution method in effect on the contract owner's death.
2) If any contract owner dies before the annuitization date, then the
entire interest in the contract (consisting of either the death benefit
or the contract value reduced by charges set forth elsewhere in the
contract) will be distributed within 5 years of the contract owner's
death, provided however:
a) any interest payable to or for the benefit of a natural person
(referred to herein as a "designated beneficiary"), may be
distributed over the life of the designated beneficiary or
over a period not longer than the life expectancy of the
designated beneficiary. Payments must begin within one year of
the contract owner's death unless otherwise permitted by
federal income tax regulations; and
b) if the designated beneficiary is the surviving spouse of the
deceased contract owner, the spouse can choose to become the
contract owner instead of receiving a death benefit. Any
distributions required under these distribution rules will be
made upon that spouse's death.
In the event that the contract owner is NOT a natural person (e.g., a trust or
corporation), then, for purposes of these distribution provisions:
a) the death of the annuitant will be treated as the death of a contract
owner;
b) any change of annuitant will be treated as the death of a contract
owner; and
c) in either case, the appropriate distribution will be made upon the
death or change, as the case may be.
These distribution provisions do not apply to any contract exempt from Section
72(s) of the Internal Revenue Code by reason of Section 72(s)(5) or any other
law or rule.
The designated beneficiary must elect a method of distribution and notify
Nationwide of this election within 60 days of the contract owner's death.
REQUIRED DISTRIBUTIONS FOR TAX SHELTERED ANNUITIES
Distributions from Tax Sheltered Annuities will be made according to the Minimum
Distribution and Incidental Benefit ("MDIB") provisions of Section 401(a)(9) of
the Internal Revenue Code. Distributions will be made to the annuitant according
to the annuity payment option selected over a period not longer than:
a) the life of the annuitant or the joint lives of the annuitant and the
annuitant's designated beneficiary; or
b) a period not longer than the life expectancy of the annuitant or the
joint life expectancies of the annuitant and the annuitant's designated
beneficiary.
Required distributions will not be withdrawn from this contract if they are
being withdrawn from another Tax Sheltered Annuity of the annuitant.
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If the annuitant's entire interest in a Tax Sheltered Annuity will be
distributed in equal or substantially equal payments over a period described in
a) or b), the payments will begin on the required beginning date. The required
beginning date is the later of:
a) April 1 of the calendar year following the calendar year in which the
annuitant reaches age 70 1/2; or
b) the annuitant's retirement date.
Provision b) does not apply to any employee who is a 5% owner (as defined in
Section 416 of the Internal Revenue Code) with respect to the plan year ending
in the calendar year when the employee attains the age of 70 1/2.
Distribution commencing on the required distribution date must satisfy minimum
distribution and incidental benefit provisions set forth in the Internal Revenue
Code. Those provisions require that distributions cannot be less than the amount
determined by dividing the annuitant's interest in the Tax Sheltered Annuity
determined by the end of the previous calendar year by:
a) the annuitant's life expectancy; or if applicable;
b) the joint and survivor life expectancy of the annuitant and the
annuitant's beneficiary.
The life expectancies and joint life expectancies are determined by reference to
Treasury Regulation 1.72-9.
If the annuitant dies before distributions begin, the interest in the Tax
Sheltered Annuity must be distributed by December 31 of the calendar year in
which the fifth anniversary of the annuitant's death occurs unless:
a) the annuitant names his or her surviving spouse as the beneficiary and
the spouse chooses to receive distribution of the contract in
substantially equal payments over his or her life (or a period not
longer than his or her life expectancy) and beginning no later than
December 31 of the year in which the annuitant would have attained age
70 1/2; or
b) the annuitant names a beneficiary other than his or her surviving
spouse and the beneficiary elects to receive distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year in which the annuitant
dies.
If the annuitant dies after distributions have begun, distributions must
continue at least as rapidly as under the schedule used before the annuitant's
death.
If distribution requirements are not met, a penalty tax of 50% is levied on the
difference between the amount that should have been distributed for that year
and the amount that actually was distributed for that year.
REQUIRED DISTRIBUTIONS FOR INDIVIDUAL RETIREMENT ANNUITIES
Distributions from an Individual Retirement Annuity must begin no later than
April 1 of the calendar year following the calendar year in which the contract
owner reaches age 70 1/2. Distribution may be paid in a lump sum or in
substantially equal payments over:
a) the contract owner's life or the lives of the contract owner and his or
her spouse or designated beneficiary; or
b) a period not longer than the life expectancy of the contract owner or
the joint life expectancy of the contract owner and the contract
owner's designated beneficiary.
If the contract owner dies before distributions begin, the interest in the
Individual Retirement Annuity must be distributed by December 31 of the calendar
year in which the fifth anniversary of the contract owner's death occurs,
unless:
a) the contract owner names his or her surviving spouse as the beneficiary
and such spouse chooses to:
1) treat the contract as an Individual Retirement Annuity
established for his or her benefit; or
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2) receive distribution of the contract in substantially equal
payments over his or her life (or a period not longer than his
or her life expectancy) and beginning no later than December
31 of the year in which the contract owner would have reached
age 70 1/2; or
b) the contract owner names a beneficiary other than his or her surviving
spouse and such beneficiary elects to receive a distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year of the contract owner's
death.
Required distributions will not be withdrawn from this contract if they are
being withdrawn from another Individual Retirement Annuity or Individual
Retirement Account of the contract owner.
If the contract owner dies after distributions have begun, distributions must
continue at least as rapidly as under the schedule being used before the
contract owner's death. However, a surviving spouse who is the beneficiary under
the annuity payment option may treat the contract as his or her own, in the same
manner as is described in section (a)(1) of this provision.
If distribution requirements are not met, a penalty tax of 50% is levied on the
difference between the amount that should have been distributed for that year
and the amount that actually was distributed for that year.
A portion of each distribution will be included in the recipient's gross income
and taxed at ordinary income tax rates. The portion of a distribution which is
taxable is based on the ratio between the amount by which non-deductible
purchase payments exceed prior non-taxable distributions and total account
balances at the time of the distribution. The owner of an Individual Retirement
Annuity must annually report the amount of non-deductible purchase payments, the
amount of any distribution, the amount by which non-deductible purchase payments
for all years exceed nontaxable distributions for all years, and the total
balance of all Individual Retirement Annuities.
Individual Retirement Annuity distributions will not receive the favorable tax
treatment of a lump sum distribution from a Qualified Plan. If the contract
owner dies before the entire interest in the contract has been distributed, the
balance will also be included in his or her gross estate.
REQUIRED DISTRIBUTIONS FOR ROTH IRAS
The rules for Roth IRAs do not require distributions to begin during the
contract owner's lifetime.
When the contract owner dies, the interest in the Roth IRA must be distributed
by December 31 of the calendar year in which the fifth anniversary of his or her
death occurs, unless:
a) the contract owner names his or her surviving spouse as the beneficiary
and the spouse chooses to:
1) treat the contract as a Roth IRA established for his or her
benefit; or
2) receive distribution of the contract in substantially equal
payments over his or her life (or a period not longer than his
or her life expectancy) and beginning no later than December
31 of the year following the year in which the contract owner
would have reached age 70 1/2; or
b) the contract owner names a beneficiary other than his or her surviving
spouse and the beneficiary chooses to receive distribution of the
contract in substantially equal payments over his or her life (or a
period not longer than his or her life expectancy) beginning no later
than December 31 of the year following the year in which the contract
owner dies.
Distributions from Roth IRAs may be either taxable or nontaxable, depending upon
whether they are "qualified distributions" or "non-
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qualified distributions" (see "Federal Tax Considerations").
FEDERAL TAX CONSIDERATIONS
FEDERAL INCOME TAXES
The tax consequences of purchasing a contract described in this prospectus will
depend on:
o the type of contract purchased;
o the purposes for which the contract is purchased; and
o the personal circumstances of individual investors having interests in
the contracts.
See "Synopsis of the Contracts" for a brief description of the various types of
contracts and the different purposes for which the contracts may be purchased.
Existing tax rules are subject to change, and may affect individuals differently
depending on their situation. Nationwide does not guarantee the tax status of
any contracts or any transactions involving the contracts.
If the contract is purchased as an investment of certain retirement plans (such
as qualified retirement plans, Individual Retirement Accounts, and custodial
accounts as described in Sections 401, 408(a), and 403(b)(7) of the Internal
Revenue Code), tax advantages enjoyed by the contract owner and/or annuitant may
relate to participation in the plan rather than ownership of the annuity
contract. Such plans are permitted to purchase investments other than annuities
and retain tax-deferred status.
The following is a brief summary of some of the federal income tax
considerations related to the contracts. In addition to the federal income tax,
distributions from annuity contracts may be subject to state and local income
taxes. The tax rules across all states and localities are not uniform and
therefore will not be discussed in this prospectus. Tax rules that may apply to
contracts issued in U.S. territories such as Puerto Rico and Guam are also not
discussed. Nothing in this prospectus should be considered to be tax advice.
Contract owners and prospective contract owners are encouraged to consult a
financial consultant, tax advisor or legal counsel to discuss the taxation and
use of the contracts.
The Internal Revenue Code sets forth different income tax rules for the
following types of annuity contracts:
o Individual Retirement Annuities;
o Roth IRAs;
o Tax Sheltered Annuities; and
o "Non-Qualified Annuities."
Individual Retirement Annuities
Distributions from Individual Retirement Annuities are generally taxed when
received. If any of the amount contributed to the IRA was nondeductible for
federal income tax purposes, then a portion of each distribution is excludable
from income.
If distributions of income from an IRA are made prior to the date that the owner
attains the age of 59 1/2 years, the income is subject to both the regular
income tax and an additional penalty tax of 10%. The penalty tax can be avoided
if the distribution is:
o made to a beneficiary on or after the death of the owner;
o attributable to the owner becoming disabled (as defined in the Internal
Revenue Code);
o part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and
his or her designated beneficiary;
o used for qualified higher education expenses; or
o used for expenses attributable to the purchase of a home for a
qualified first-time buyer.
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Roth IRAs
Distributions of earnings from Roth IRAs are taxable or nontaxable depending
upon whether they are "qualified distributions" or "non-qualified
distributions." A "qualified distribution" is one that satisfies the five-year
rule and meets one of the following requirements:
o it is made on or after the date on which the contract owner attains age
59 1/2;
o it is made to a beneficiary (or the contract owner's estate) on or
after the death of the contract owner;
o it is attributable to the contract owner's disability; or
o it is used for expenses attributable to the purchase of a home for a
qualified first-time buyer.
The five year rule generally is satisfied if the distribution is not made within
the five taxable year period beginning with the first taxable year in which a
contribution is made to any Roth IRA established for the owner.
A qualified distribution is not included in gross income for federal income tax
purposes.
A non-qualified distribution is not includible in gross income to the extent
that the distribution, when added to all previous distributions, does not exceed
that total amount of contributions made to the Roth IRA. Any non-qualified
distribution in excess of the aggregate amount of contributions will be included
in the contract owner's gross income in the year that is distributed to the
contract owner.
Special rules apply for Roth IRAs that have proceeds received from an IRA prior
to January 1, 1999 if the owner elected the special 4-year income averaging
provisions that were in effect for 1998.
If non-qualified distributions of income from a Roth IRA are made prior to the
date that the owner attains the age of 59 1/2 years, the income is subject to
both the regular income tax and an additional penalty tax of 10%. The penalty
tax can be avoided if the distribution is:
o made to a beneficiary on or after the death of the owner;
o attributable to the owner becoming disabled as defined in the Internal
Revenue Code;
o part of a series of substantially equal periodic payments made not less
frequently than annually made for the life (or life expectancy) of the
owner, or the joint lives (or joint life expectancies) of the owner and
his or her designated beneficiary;
o for qualified higher education expenses; or
o used for expenses attributable to the purchase of a home for a
qualified first-time buyer.
If the contract owner dies before the contract is completely distributed, the
balance may be included in the contract owner's gross estate for tax purposes.
Tax Sheltered Annuities
Distributions from Tax Sheltered Annuities are generally taxed when received. A
portion of each distribution is excludable from income based on a formula
established pursuant to the Internal Revenue Code. The formula excludes from
income the amount invested in the contract divided by the number of anticipated
payments until the full investment in the contract is recovered. Thereafter all
distributions are fully taxable.
If a distribution of income is made from a Tax Sheltered Annuity prior to the
date that the owner attains the age of 59 1/2 years, the income is subject to
both the regular income tax and an additional penalty tax of 10%. The penalty
tax can be avoided if the distribution is:
o made to a beneficiary on or after the death of the owner;
o attributable to the owner becoming disabled as defined in the Internal
Revenue Code;
o part of a series of substantially equal periodic payments made not less
frequently
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than annually made for the life (or life expectancy) of the owner, or
the joint lives (or joint life expectancies) of the owner and his or
her designated beneficiary;
o for qualified higher education expenses;
o used for expenses attributable to the purchase of a home for a
qualified first-time buyer; or
o made to the owner after separation from service with his or her
employer after age 55.
Non-Qualified Contracts - Natural Persons as Contract Owners
Generally, the income earned inside a Non-Qualified Annuity Contract that is
owned by a natural person is not taxable until it is distributed from the
contract.
Distributions before the annuitization date are taxable to the contract owner to
the extent that the cash value of the contract exceeds the contract owner's
investment at the time of the distribution. Distributions, for this purpose,
include partial surrenders, any portion of the contract that is assigned or
pledged; or any portion of the contract that is transferred by gift. For these
purposes, a transfer by gift may occur upon annuitization if the contract owner
and the annuitant are not the same individual.
With respect to annuity distributions on or after the annuitization date, a
portion of each annuity payment is excludable from taxable income. The amount
excludable is based on the ratio between the contract owner's investment in the
contract and the expected return on the contract. Once the entire investment in
the contract is recovered, all distributions are fully includable in income. The
maximum amount excludable from income is the investment in the contract. If the
annuitant dies before the entire investment in the contract has been excluded
from income, and as a result of the annuitant's death no more payments are due
under the contract, then the unrecovered investment in the contract may be
deducted on his or her final tax return.
In determining the taxable amount of a distribution, all annuity contracts
issued after October 21, 1988 by the same company to the same contract owner
during the same calendar year will be treated as one annuity contract.
A special rule applies to distributions from contracts that have investments
that were made prior to August 14, 1982. For those contracts, distributions that
are made prior to the annuitization date are treated first as a recovery of the
investment in the contract as of that date. A distribution in excess of the
amount of the investment in the contract as of August 14, 1982, will be treated
as taxable income.
The Internal Revenue Code imposes a penalty tax if a distribution is made before
the contract owner reaches age 59 1/2. The amount of the penalty is 10% of the
portion of any distribution that is includible in gross income. The penalty tax
does not apply if the distribution is:
o the result of a contract owner's death;
o the result of a contract owner's disability, as defined in the Internal
Revenue Code;
o one of a series of substantially equal periodic payments made over the
life (or life expectancy) of the contract owner or the joint lives (or
joint life expectancies) of the contract owner and the beneficiary
selected by the contract owner to receive payment under the annuity
payment option selected by the contract owner; or
o is allocable to an investment in the contract before August 14, 1982.
Non-Qualified Contracts - Non-Natural Persons as Contract Owners
The previous discussion related to the taxation of Non-Qualified Contracts owned
by individuals. Different rules (the so-called "non-natural persons" rules)
apply if the contract owner is not a natural person.
Generally, contracts owned by corporations, partnerships, trusts, and similar
entities are not treated as annuity contracts under the Internal Revenue Code.
Therefore, income earned under a Non-Qualified Contract that is owned by a
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non-natural person is taxed as ordinary income during the taxable year that it
is earned. Taxation is not deferred, even if the income is not distributed out
of the contract. The income is taxable as ordinary income, not capital gain.
The non-natural persons rules do not apply to all entity-owned contracts. A
contract that is owned by a non-natural person as an agent of an individual is
treated as owned by the individual. This would cause the contract to be treated
as an annuity under the Internal Revenue Code, allowing tax deferral. However,
this exception does not apply when the non-natural person is an employer that
holds the contract under a non-qualified deferred compensation arrangement for
one or more employees.
The non-natural persons rules also do not apply to contracts that are:
o acquired by the estate of a decedent by reason of the death of the
decedent;
o issued in connection with certain qualified retirement plans and
individual retirement plans;
o purchased by an employer upon the termination of certain qualified
retirement plans.
WITHHOLDING
Pre-death distributions from the contracts are subject to federal income tax.
Nationwide will withhold the tax from the distributions unless the contract
owner requests otherwise. If the distribution is from a Tax Sheltered Annuity,
it will be subject to mandatory 20% withholding that cannot be waived, unless:
o the distribution is made directly to another Tax Sheltered Annuity or
IRA; or
o the distribution satisfies the minimum distribution requirements
imposed by the Internal Revenue Code.
In addition, contract owners may not waive withholding if the distribution is
subject to mandatory back-up withholding (if no taxpayer identification number
is given or if the Internal Revenue Service notifies Nationwide that mandatory
back-up withholding is required). Mandatory back-up withholding rates are 31% of
income that is distributed.
NON-RESIDENT ALIENS
Generally, a pre-death distribution from a contract to a non-resident alien is
subject to federal income tax at a rate of 30% of the amount of income that is
distributed. Nationwide is required to withhold this amount and send it to the
Internal Revenue Service. Some distributions to non-resident aliens may be
subject to a lower (or no) tax if a treaty applies. In order to obtain the
benefits of such a treaty, the non-resident alien must:
1) provide Nationwide with proof of residency and citizenship (in
accordance with Internal Revenue Service requirements); and
2) provide Nationwide with an individual taxpayer identification number.
If the non-resident alien does not meet the above conditions, Nationwide will
withhold 30% of income from the distribution.
Another way to avoid the 30% withholding is for the non-resident alien to
provide Nationwide with sufficient evidence that:
1) the distribution is connected to the non-resident alien's conduct of
business in the United States; and
2) the distribution is includible in the non-resident alien's gross income
for United States federal income tax purposes.
Note that these distributions may be subject to back-up withholding, currently
31%, if a correct taxpayer identification number is not provided.
FEDERAL ESTATE, GIFT, AND GENERATION SKIPPING TRANSFER TAXES
The following transfers may be considered a gift for federal gift tax purposes:
o a transfer of the contract from one contract owner to another; or
o a distribution to someone other than a contract owner.
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Upon the contract owner's death, the value of the contract may subject to estate
taxes, even if all or a portion of the value is also subject to federal income
taxes.
Section 2612 of the Internal Revenue Code may require Nationwide to determine
whether a death benefit or other distribution is a "direct skip" and the amount
of the resulting generation skipping transfer tax, if any. A direct skip is when
property is transferred to, or a death benefit or other distribution is made to:
a) an individual who is two or more generations younger than the contract
owner; or
b) certain trusts, as described in Section 2613 of the Internal Revenue
Code (generally, trusts that have no beneficiaries who are not 2 or
more generations younger than the contract owner).
If the contract owner is not an individual, then for this purpose ONLY,
"contract owner" refers to any person:
o who would be required to include the contract, death benefit,
distribution, or other payment in his or her federal gross estate at
his or her death; or
o who is required to report the transfer of the contract, death benefit,
distribution, or other payment for federal gift tax purposes.
If a transfer is a direct skip, Nationwide will deduct the amount of the
transfer tax from the death benefit, distribution or other payment, and remit it
directly to the Internal Revenue Service.
CHARGE FOR TAX
Nationwide is not required to maintain a capital gain reserve liability on
Non-Qualified Contracts. If tax laws change requiring a reserve, Nationwide may
implement and adjust a tax charge.
DIVERSIFICATION
Internal Revenue Code Section 817(h) contains rules on diversification
requirements for variable annuity contracts. A variable annuity contract that
does not meet these diversification requirements will not be treated as an
annuity, unless:
o the failure to diversify was accidental;
o the failure is corrected; and
o a fine is paid to the Internal Revenue Service.
The amount of the fine will be the amount of tax that would have been paid by
the contract owner if the income, for the period the contract was not
diversified, had been received by the contract owner.
If the violation is not corrected, the contract owner will be considered the
owner of the underlying securities and will be taxed on the earnings of his or
her contract. Nationwide believes that the investments underlying this contract
meet these diversification requirements.
TAX CHANGES
The foregoing tax information is based on Nationwide's understanding of federal
tax laws. It is NOT intended as tax advice. All information is subject to change
without notice. For more details, contact your personal tax and/or financial
advisor.
STATEMENTS AND REPORTS
Nationwide will mail contract owners statements and reports. Therefore, contract
owners should promptly notify Nationwide of any address change.
These mailings will contain:
o statements showing the contract's quarterly activity;
o confirmation statements showing transactions that affect the contract's
value. Confirmation statements will not be sent for recurring
transactions (i.e., Dollar Cost
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Averaging or salary reduction programs). Instead, confirmation of
recurring transactions will appear in the contract's quarterly
statements;
o semi-annual reports as of June 30 containing financial statements for
the variable account; and
o annual reports as of December 31 containing financial statements for
the variable account.
Contract owners should review statements and confirmations carefully. All errors
or corrections must be reported to Nationwide immediately to assure proper
crediting to the contract. Unless Nationwide is notified within 30 days of
receipt of the statement, Nationwide will assume statements and confirmation
statements are correct.
LEGAL PROCEEDINGS
Nationwide is a party to litigation and arbitration proceedings in the ordinary
course of its business, none of which is expected to have a material adverse
effect on Nationwide.
In recent years, life insurance companies have been named as defendants in
lawsuits, including class action lawsuits relating to life insurance and annuity
pricing and sales practices. A number of these lawsuits have resulted in
substantial jury awards or settlements.
In November 1997, two plaintiffs, one who was the owner of a variable life
insurance contract and the other who was the owner of a variable annuity
contract, commenced a lawsuit in a federal court in Texas against Nationwide and
the American Century group of defendants (Robert Young and David D. Distad v.
Nationwide Life Insurance Company et al.). In this lawsuit, plaintiffs sought to
represent a class of variable life insurance contract owners and variable
annuity contract owners whom they claim were allegedly misled when purchasing
these variable contracts into believing that the performance of their underlying
mutual fund option managed by American Century, whose shares may only be
purchased by insurance companies, would track the performance of a mutual fund,
also managed by American Century, whose shares are publicly traded. The amended
complaint seeks unspecified compensatory and punitive damages. On April 27,
1998, the District Court denied, in part, and granted, in part, motions to
dismiss the complaint filed by Nationwide and American Century. The remaining
claims against Nationwide allege securities fraud, common law fraud, civil
conspiracy, and breach of contract. The District Court, on December 2, 1998,
issued an order denying plaintiffs' motion for class certification and the
appeals court declined to review the order denying class certification upon
interlocutory appeal. On June 11, 1999, the District Court denied the
plaintiffs' motion to amend their complaint and reconsider class certification.
In January 2000 Nationwide and American Century settled this lawsuit now limited
to the claims of the two named plaintiffs. On February 9, 2000 the court
dismissed this lawsuit with prejudice.
On October 29, 1998, Nationwide was named in a lawsuit filed in Ohio state court
related to the sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide
Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life
and Annuity Insurance Company). On May 3, 1999, the complaint was amended to,
among other things, add Marcus Shore as a second plaintiff. The amended
complaint is brought as a class action on behalf of all persons who purchased
individual deferred annuity contracts or participated in group annuity contracts
sold by Nationwide and the other named Nationwide affiliates which were used to
fund certain tax-deferred retirement plans. The amended complaint seeks
unspecified compensatory and punitive damages. No class has been certified. On
June 11, 1999, Nationwide and the other named defendants filed a motion to
dismiss the amended complaint. On March 8, 2000, the court denied the motion to
dismiss the amended complaint filed by Nationwide and other named
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defendents. Nationwide intends to defend this lawsuit vigorously.
There can be no assurance that any litigation relating to pricing or sales
practices will not have a material adverse effect on Nationwide in the future.
The general distributor, NISC, is not engaged in any litigation of any material
nature.
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY
ADVERTISING
A "yield" and "effective yield" may be advertised for the NSAT Money Market
Fund. "Yield" is a measure of the net dividend and interest income earned over a
specific seven-day period (which period will be stated in the advertisement)
expressed as a percentage of the offering price of the NSAT Money Market Fund's
units. Yield is an annualized figure, which means that it is assumed that the
NSAT Money Market Fund generates the same level of net income over a 52-week
period. The "effective yield" is calculated similarly but includes the effect of
assumed compounding, calculated under rules prescribed by the SEC. The effective
yield will be slightly higher than yield due to this compounding effect.
Nationwide may advertise the performance of a sub-account in relation to the
performance of other variable annuity sub-accounts, underlying mutual fund
options with similar or different objectives, or the investment industry as a
whole. Other investments to which the sub-accounts may be compared include, but
are not limited to:
o precious metals;
o real estate;
o stocks and bonds;
o closed-end funds;
o bank money market deposit accounts and passbook savings;
o CDs; and
o the Consumer Price Index.
Market Indexes
The sub-accounts will be compared to certain market indexes, such as:
o S&P 500;
o Shearson/Lehman Intermediate Government/Corporate Bond Index;
o Shearson/Lehman Long-Term Government/Corporate Bond Index;
o Donoghue Money Fund Average;
o U.S. Treasury Note Index;
o Bank Rate Monitor National Index of 2 1/2 Year CD Rates; and
o Dow Jones Industrial Average.
Tracking & Rating Services; Publications
Nationwide's rankings and ratings are sometimes published by other services,
such as:
o Lipper Analytical Services, Inc.;
o CDA/Wiesenberger;
o Morningstar;
o Donoghue's;
o magazines such as:
* Money;
* Forbes;
* Kiplinger's Personal Finance Magazine;
* Financial World;
* Consumer Reports;
* Business Week;
* Time;
* Newsweek;
* National Underwriter; and
* News and World Report;
o LIMRA;
o Value;
o Best's Agent Guide;
o Western Annuity Guide;
o Comparative Annuity Reports;
o Wall Street Journal;
o Barron's;
o Investor's Daily;
o Standard & Poor's Outlook; and
o Variable Annuity Research & Data Service (The VARDS Report).
These rating services and publications rank the underlying mutual funds'
performance against other funds. These rankings may or may not include the
effects of sales charges or other fees.
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Financial Rating Services
Nationwide is also ranked and rated by independent financial rating services,
among which are Moody's, Standard & Poor's and A.M. Best Company. Nationwide may
advertise these ratings. These ratings reflect Nationwide's financial strength
or claims-paying ability. The ratings are not intended to reflect the investment
experience or financial strength of the variable account.
Some Nationwide advertisements and endorsements may include lists of
organizations, individuals or other parties that recommend Nationwide or the
contract. Furthermore, Nationwide may occasionally advertise comparisons of
currently taxable and tax deferred investment programs, based on selected tax
brackets, or discussions of alternative investment vehicles and general economic
conditions.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the sub-accounts. Nationwide
may advertise for the sub-account's standardized average annual total return
("standardized return") calculated in a manner prescribed by the SEC, and
non-standardized total return ("non-standardized return").
Standardized return shows the percentage rate of return of a hypothetical
initial investment of $1,000 for the most recent one, five and ten year periods
(or for a period covering the time the underlying mutual fund has been available
in the variable account if it has not been available for one of the prescribed
periods). This calculation reflects the standard 7 year CDSC schedule and the
charges that could be assessed to a contract if the maximum rider options are
chosen (1.70%). Standardized return does not reflect the deduction of state
premium taxes, which may be imposed by certain states.
Non-standardized return is calculated similarly to standardized return except
non-standardized return assumes an initial investment of $25,000, with base
contract variable account charges of 1.20% and does not reflect CDSC. An assumed
initial investment of $25,000 is used because that amount more accurately
reflects the average contract size.
Both methods of calculation reflect total return for the most recent one, five
and ten year periods (or for a period covering the time the underlying mutual
fund has been in existence). For those underlying mutual funds which have not
been available for one of the prescribed periods, the nonstandardized total
return illustrations will show the investment performance the underlying mutual
funds would have achieved had they been available in the variable account for
one of the periods. If the underlying mutual fund has been available in the
variable account for less than one year (or if the underlying mutual fund has
been effective for less than one year) standardized and non-standardized
performance is not annualized.
The standardized average annual total return and nonstandardized total return
quotations are calculated using data for the period ended December 31, 1999.
However, Nationwide generally provides performance information more frequently.
Information relating to performance of the sub-accounts is based on historical
earnings and does not represent or guarantee future results.
52
<PAGE> 53
SUB-ACCOUNT PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
- ---------------------------------------------------------------------------------------------------------------------
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
- ---------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 9.72% N/A 3.82% 11/03/97
Century VP Income & Growth
- ---------------------------------------------------------------------------------------------------------------------
American Century Variable Portfolios, Inc. - American 54.97% N/A 24.37% 11/03/97
Century VP International
- ---------------------------------------------------------------------------------------------------------------------
American Century Variable Portfolios, Inc. - American -8.65% N/A -11.52% 11/03/97
Century VP Value
- ---------------------------------------------------------------------------------------------------------------------
Dreyfus Investment Portfolios - European Equity N/A N/A 22.43% 09/27/99
Portfolio
- ---------------------------------------------------------------------------------------------------------------------
The Dreyfus Socially Responsible Growth Fund, Inc. 21.58% N/A 6.69% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund, Inc. 12.27% N/A 3.83% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Dreyfus Variable Investment Fund - Appreciation 3.27% N/A 1.88% 11/03/97
Portfolio (formerly, Dreyfus Variable Investment Fund -
Capital Appreciation Portfolio)
- ---------------------------------------------------------------------------------------------------------------------
Federated Insurance Series - Federated Quality Bond N/A N/A -8.57% 05/03/99
Fund II
- ---------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio: Service Class -1.84% N/A -7.58% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio: Service Class 28.67% N/A 10.81% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Fidelity VIP High Income Portfolio: Service Class -0.05% N/A -10.77% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio: Service Class 33.76% N/A 9.41% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund(R)Portfolio: Service Class 15.75% N/A 3.83% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
Fidelity VIP III Growth Opportunities Portfolio: -3.88% N/A -1.97% 11/03/97
Service Class
- ---------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation Fund -3.79% N/A -0.66% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund -10.02% N/A -0.66% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund -3.21% N/A -0.12% 10/31/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund -1.17% N/A -3.49% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Balanced Fund -7.08% N/A -4.92% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Equity Income Fund 10.19% N/A -0.66% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Global 50 Fund (formerly, NSAT 14.55% N/A 3.31% 11/03/97
Nationwide Global Equity Fund)
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income Bond Fund -4.86% N/A -3.72% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 12.57% N/A -1.94% 11/03/97
Nationwide Select Advisers Mid Cap Fund)
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Multi Sector Bond Fund -6.46% N/A -4.27% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 96.41% 05/03/99
Nationwide Select Advisers Small Cap Growth Fund)
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 19.38% N/A -8.57% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Company Fund 35.28% N/A 3.12% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Growth Fund 75.37% N/A 12.87% 11/03/97
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
53
<PAGE> 54
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NSAT Nationwide Strategic Value Fund -10.68% N/A -18.03% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Guardian Portfolio 6.70% N/A 2.18% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Mid-Cap Growth Portfolio 44.98% N/A 28.98% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Partners Portfolio -0.74% N/A -10.31% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer 74.22% N/A 10.99% 11/03/97
Aggressive Growth Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Capital
Appreciation Fund)
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer 32.96% N/A 2.53% 11/03/97
Capital Appreciation Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth Fund)
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer Main 13.35% N/A -1.90% 11/03/97
Street Growth & Income Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth & Income
Fund)
- -------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. - Emerging 20.90% N/A -16.10% 11/03/97
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
- -------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide 90.64% N/A -15.36% 11/03/97
Emerging Markets Fund
- -------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Hard 12.67% N/A -24.40% 11/03/97
Assets Fund
- -------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment Trust - Morgan Stanley -10.96% N/A -14.42% 11/03/97
Real Estate Securities Portfolio
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Global Post-Venture Capital 54.43% N/A 9.30% 11/03/97
Portfolio (formerly, Warburg Pincus Trust -
Post-Venture Capital Portfolio)
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - International Equity Portfolio 44.53% N/A 11.90% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Value Portfolio (formerly, -1.85% N/A -6.49% 11/03/97
Warburg Pincus Trust - Growth & Income Portfolio)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
$25,000 INITIAL INVESTMENT, VARIABLE ACCOUNT CHARGES OF 1.20%, NO CDSC
PLEASE NOTE: THE PERFORMANCE NUMBERS BELOW REFLECT THE DEDUCTION OF THE AMOUNT
ASSESSED FOR THE BASE CONTRACT OF 1.20%. FOR CONTRACT OWNERS WHO HAVE CHOSEN ONE
OR MORE RIDER OPTIONS, THE FUND PERFORMANCE AS SHOWN BELOW WOULD BE REDUCED IN
ACCORDANCE TO THE COSTS OF THE RIDER OPTIONS SELECTED.
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
- -------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American 16.60% N/A 23.21% 10/30/97
Century VP Income & Growth
- -------------------------------------------------------------------------------------------------------------------
American Century Variable Portfolios, Inc. - American 62.08% 22.81% 18.63% 05/02/94
Century VP International
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
54
<PAGE> 55
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century Variable Portfolios, Inc. - American -2.04% N/A 9.78% 05/01/96
Century VP Value
- -------------------------------------------------------------------------------------------------------------------
Dreyfus Investment Portfolios - European Equity N/A N/A 28.13% 04/22/99
Portfolio
- -------------------------------------------------------------------------------------------------------------------
The Dreyfus Socially Responsible Growth Fund, Inc. 28.52% 27.12% 22.61% 10/06/93
- -------------------------------------------------------------------------------------------------------------------
Dreyfus Stock Index Fund, Inc. 19.16% 26.54% 16.29% 09/29/89
- -------------------------------------------------------------------------------------------------------------------
Dreyfus Variable Investment Fund - Appreciation 10.12% 24.03% 18.63% 04/05/93
Portfolio (formerly, Dreyfus Variable Investment Fund
- - Capital Appreciation Portfolio)
- -------------------------------------------------------------------------------------------------------------------
Federated Insurance Series - Federated Quality Bond N/A N/A -2.82% 04/22/99
Fund II
- -------------------------------------------------------------------------------------------------------------------
Fidelity VIP Equity-Income Portfolio: Service Class 4.98% 17.14% 13.10% 10/09/86
- -------------------------------------------------------------------------------------------------------------------
Fidelity VIP Growth Portfolio: Service Class 35.64% 28.13% 18.47% 10/09/86
- -------------------------------------------------------------------------------------------------------------------
Fidelity VIP High Income Portfolio: Service Class 6.78% 9.47% 11.05% 09/19/85
- -------------------------------------------------------------------------------------------------------------------
Fidelity VIP Overseas Portfolio: Service Class 40.76% 15.91% 10.07% 01/28/87
- -------------------------------------------------------------------------------------------------------------------
Fidelity VIP II Contrafund(R)Portfolio: Service Class 22.66% N/A 26.18% 01/03/95
- -------------------------------------------------------------------------------------------------------------------
Fidelity VIP III Growth Opportunities Portfolio: 2.93% N/A 20.03% 01/03/95
Service Class
- -------------------------------------------------------------------------------------------------------------------
NSAT Capital Appreciation Fund 3.03% 22.86% 15.87% 04/15/92
- -------------------------------------------------------------------------------------------------------------------
NSAT Government Bond Fund -3.52% 6.17% 6.38% 11/08/82
- -------------------------------------------------------------------------------------------------------------------
NSAT Money Market Fund 3.59% 3.98% 3.76% 11/30/81
- -------------------------------------------------------------------------------------------------------------------
NSAT Total Return Fund 5.66% 19.33% 13.41% 11/08/82
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Balanced Fund -0.34% N/A 3.51% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Equity Income Fund 17.07% N/A 14.97% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Global 50 Fund (formerly, NSAT 21.45% N/A 18.48% 10/31/97
Nationwide Global Equity Fund)
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide High Income Bond Fund 1.95% N/A 3.97% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Mid Cap Index Fund (formerly, NSAT 19.47% N/A 12.91% 10/31/97
Nationwide Select Advisers Mid Cap Fund)
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Multi Sector Bond Fund 0.34% N/A 1.18% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Growth Fund (formerly, NSAT N/A N/A 103.39% 05/03/99
Nationwide Select Advisers Small Cap Growth Fund)
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Cap Value Fund 26.30% N/A 8.27% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Small Company Fund 42.29% N/A 21.74% 10/23/95
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Growth Fund 82.54% N/A 41.11% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
NSAT Nationwide Strategic Value Fund -4.23% N/A -1.70% 10/31/97
- -------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Guardian Portfolio 13.55% N/A 22.56% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Mid-Cap Growth Portfolio 52.04% N/A 51.42% 11/03/97
- -------------------------------------------------------------------------------------------------------------------
Neuberger Berman AMT Partners Portfolio 6.08% 19.58% 16.08% 03/22/94
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer 81.41% 28.16% 18.99% 08/15/86
Aggressive Growth Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Capital
Appreciation Fund)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
55
<PAGE> 56
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Oppenheimer Variable Account Funds - Oppenheimer 39.96% 29.10% 17.05% 04/03/85
Capital Appreciation Growth Fund/VA (formerly,
Oppenheimer Variable Account Funds - Oppenheimer
Growth Fund)
- -------------------------------------------------------------------------------------------------------------------
Oppenheimer Variable Account Funds - Oppenheimer Main 20.25% N/A 24.30% 07/05/95
Street Growth & Income Fund/VA (formerly, Oppenheimer
Variable Account Funds - Oppenheimer Growth & Income
Fund)
- -------------------------------------------------------------------------------------------------------------------
The Universal Institutional Funds, Inc. - Emerging 27.82% N/A -3.83% 01/16/97
Markets Debt Portfolio (formerly, Morgan Stanley Dean
Witter Universal Funds, Inc. - Emerging Markets Debt
Portfolio)
- -------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide 97.89% N/A 8.62% 12/21/95
Emerging Markets Fund
- -------------------------------------------------------------------------------------------------------------------
Van Eck Worldwide Insurance Trust - Worldwide Hard 19.55% 0.26% 1.82% 09/01/89
Assets Fund
- -------------------------------------------------------------------------------------------------------------------
Van Kampen Life Investment Trust - Morgan Stanley -4.53% N/A 9.37% 07/03/95
Real Estate Securities Portfolio
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Value Portfolio (formerly, 4.97% N/A 9.03% 10/31/97
Warburg Pincus Trust - Growth & Income Portfolio)
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - International Equity Portfolio 51.59% N/A 13.46% 06/30/95
- -------------------------------------------------------------------------------------------------------------------
Warburg Pincus Trust - Global Post-Venture Capital 61.54% N/A 20.88% 09/30/96
Portfolio (formerly, Warburg Pincus Trust -
Post-Venture Capital Portfolio)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no sub-account
performance is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund/VA,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no sub-account performance is available.
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
PAGE
General Information and History............................................1
Services...................................................................1
Purchase of Securities Being Offered.......................................2
Underwriters...............................................................2
Calculations of Performance................................................2
Annuity Payments...........................................................3
Financial Statements.......................................................4
56
<PAGE> 57
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS
The underlying mutual funds listed below are designed primarily as investments
for variable annuity contracts and variable life insurance policies issued by
insurance companies.
There is no guarantee that the investment objectives will be met.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN CENTURY(SM)
FAMILY OF INVESTMENTS
American Century Variable Portfolios, Inc. was organized as a Maryland
corporation in 1987. It is a diversified, open-end investment management company
which offers its shares only as investment vehicles for variable annuity and
variable life insurance products of insurance companies. American Century
Variable Portfolios, Inc. is managed by American Century Investment Management,
Inc.
AMERICAN CENTURY VP INCOME & GROWTH
Investment Objective: Dividend growth, current income and capital
appreciation. The Fund seeks to achieve its investment objective by
investing in common stocks. The investment manager constructs the
portfolio to match the risk characteristics of the S&P 500 Stock Index
and then optimizes each portfolio to achieve the desired balance of
risk and return potential. This includes targeting a dividend yield
that exceeds that of the S&P 500. Such a management technique known as
"portfolio optimization" may cause the Fund to be more heavily invested
in some industries than in others. However, the Fund may not invest
more than 25% of its total assets in companies whose principal business
activities are in the same industry.
AMERICAN CENTURY VP INTERNATIONAL
Investment Objective: To seek capital growth. The Fund will seek to
achieve its investment objective by investing primarily in securities
of foreign companies that meet certain fundamental and technical
standards of selection and, in the opinion of the investment manager,
have potential for appreciation. Under normal conditions, the Fund will
invest at least 65% of its assets in common stocks or other equity
securities of issuers from at least three countries outside the United
States. While securities of United States issuers may be included in
the portfolio from time to time, it is the primary intent of the
manager to diversify investments across a broad range of foreign
issuers. Although the primary investment of the Fund will be common
stocks (defined to include depository receipts for common stock and
other equity equivalents), the Fund may also invest in other types of
securities consistent with the Fund's objective. When the manager
believes that the total capital growth potential of other securities
equals or exceeds the potential return of common stocks, the Fund may
invest up to 35% of its assets in such other securities. There can be
no assurance that the Fund will achieve its objectives.
AMERICAN CENTURY VP VALUE
Investment Objective: The investment objective of the Fund is long-term
capital growth; income is a secondary objective. The equity securities
in which the Fund will invest will be primarily securities of
well-established companies with intermediate-to-large market
capitalizations that are believed by management to be undervalued at
the time of purchase. Under normal market conditions, the Fund expects
to invest at least 80% of the value of its total asset in equity
securities, including common and preferred stock, convertible preferred
stock and convertible debt obligations.
DREYFUS INVESTMENT PORTFOLIOS
Dreyfus Investment Portfolios (the "Fund") is an open-end, management investment
company known as a mutual fund. Shares are offered only to variable annuity and
variable life insurance separate accounts established by insurance companies to
fund variable annuity contracts and variable life insurance policies and to
qualified pension and retirement plans.
57
<PAGE> 58
Individuals may not purchase shares directly from the Fund. The Dreyfus
Corporation serves as the Fund's investment adviser.
EUROPEAN EQUITY PORTFOLIO
Investment Objective: The Portfolio seeks long-term capital growth. To
pursue this goal, the Portfolio generally invests at least 80% of its
total assets in stocks included within the universe of the 300 largest
European companies. The Portfolio may invest up to 10% of its total
assets in the stocks of non-European companies. The Portfolio's stock
investments may include common stocks, preferred stocks and convertible
securities.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Socially Responsible Growth Fund, Inc. is an open-end, diversified,
management investment company incorporated under Maryland law on July 20, 1992
and commenced operations on October 7, 1993. The Fund offers its share only as
investment vehicles for variable annuity and variable life insurance products of
insurance companies. Dreyfus serves as the Fund's investment adviser. NCM
Capital Management Group, Inc. serves as the Fund's sub-investment adviser and
provides day-to-day management of the Fund's portfolio.
Investment Objective: Capital growth through equity investment in
companies that, in the opinion of the Fund's advisers, not only meet
traditional investment standards, but which also show evidence that
they conduct their business in a manner that contributes to the
enhancement of the quality of life in America. Current income is
secondary to the primary goal.
DREYFUS STOCK INDEX FUND, INC.
The Dreyfus Stock Index Fund, Inc. ("Fund") is an open-end, non-diversified,
management investment company incorporated under Maryland law on January 24,
1989 and commenced operations on September 29, 1989. The Fund offers its shares
only as investment vehicles for variable annuity and variable life insurance
products of insurance companies. The Dreyfus Corporation ("Dreyfus") serves as
the Fund's manager, while Mellon Equity Associates, an affiliate of Dreyfus,
serves as the Fund's index manager. Dreyfus is a wholly-owned subsidiary of
Mellon Bank, N.A., which is a wholly-owned subsidiary of Mellon Bank
Corporation.
Investment Objective: To provide investment results that correspond to
the price and yield performance of publicly traded common stocks in the
aggregate, as represented by the Standard & Poor's 500 Composite Stock
Price Index. The Fund is neither sponsored by nor affiliated with
Standard & Poor's Corporation.
DREYFUS VARIABLE INVESTMENT FUND
Dreyfus Variable Investment Fund ("Fund") is an open-end, management investment
company. It was organized as an unincorporated business trust under the laws of
the Commonwealth of Massachusetts on October 29, 1986 and commenced operations
on August 31, 1990. The Fund offers its shares only as investment vehicles for
variable annuity and variable life insurance products of insurance companies.
Dreyfus serves as the Fund's manager. Fayez Sarofim & Company serves as the
sub-adviser and provides day-to-day management of the Portfolio.
APPRECIATION PORTFOLIO (FORMERLY, CAPITAL APPRECIATION PORTFOLIO)
Investment Objective: The Portfolio's primary investment objective is
to provide long-term capital growth consistent with the preservation of
capital; current income is a secondary investment objective. This
Portfolio invests primarily in the common stocks of domestic and
foreign issuers.
FEDERATED INSURANCE SERIES
Federated Insurance Series (the "Trust"), an Open-End Management Investment
Company, was established as a Massachusetts business trust, under a Declaration
of Trust dated September 15, 1993. The Trust offers its shares only as
investment vehicles for variable annuity and variable life insurance products of
insurance
58
<PAGE> 59
companies. Federated Investment Management Company serves as the investment
adviser.
FEDERATED QUALITY BOND FUND II
Investment Objective: Current income by investing in investment grade
fixed income securities.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
The Fidelity Variable Insurance Products Fund (VIP) is an open-end, diversified,
management investment company organized as a Massachusetts business trust on
November 13, 1981. Shares of VIP are purchased by insurance companies to fund
benefits under variable life insurance policies and variable annuity contracts.
Fidelity Management & Research Company ("FMR") is the manager for VIP and its
portfolios.
VIP EQUITY-INCOME PORTFOLIO: SERVICE CLASS
Investment Objective: Reasonable income by investing primarily in
income-producing equity securities. In choosing these securities FMR
also will consider the potential for capital appreciation. The
Portfolio's goal is to achieve a yield which exceeds the composite
yield on the securities comprising the Standard & Poor's 500 Composite
Stock Price Index.
VIP GROWTH PORTFOLIO: SERVICE CLASS
Investment Objective: Capital appreciation. This Portfolio will invest
in the securities of both well-known and established companies, and
smaller, less well-known companies which may have a narrow product line
or whose securities are thinly traded. These latter securities will
often involve greater risk than may be found in the ordinary investment
security. FMR's analysis and expertise plays an integral role in the
selection of securities and, therefore, the performance of the
Portfolio. Many securities which FMR believes would have the greatest
potential may be regarded as speculative, and investment in the
Portfolio may involve greater risk than is inherent in other underlying
mutual funds. It is also important to point out that this Portfolio
makes sense for you if you can afford to ride out changes in the stock
market because it invests primarily in common stocks. FMR can also make
temporary investments in securities such as investment-grade bonds,
high-quality preferred stocks and short-term notes, for defensive
purposes when it believes market conditions warrant.
VIP HIGH INCOME PORTFOLIO: SERVICE CLASS
Investment Objective: High level of current income by investing
primarily in high-risk, lower-rated, high-yielding, fixed-income
securities, while also considering growth of capital. FMR will seek
high current income normally by investing the Portfolio's assets as
follows:
o at least 65% in income-producing debt securities and preferred
stocks, including convertible securities
o up to 20% in common stocks and other equity securities when
consistent with the Portfolio's primary objective or acquired
as part of a unit combining fixed-income and equity securities
Higher yields are usually available on securities that are lower-rated
or that are unrated. Lower-rated securities are usually defined as Ba
or lower by Moody's Investor Service, Inc. ("Moody's"); BB or lower by
Standard & Poor's and may be deemed to be of a speculative nature. The
Portfolio may also purchase lower-quality bonds such as those rated Ca3
by Moody's or C- by Standard & Poor's which provide poor protection for
payment of principal and interest (commonly referred to as "junk
bonds"). For a further discussion of lower-rated securities, please see
the "Risks of Lower-Rated Debt Securities" section of the Portfolio's
prospectus.
VIP OVERSEAS PORTFOLIO: SERVICE CLASS
Investment Objective: Long-term capital growth primarily through
investments in foreign securities. This Portfolio provides a means for
investors to diversify their own
59
<PAGE> 60
portfolios by participating in companies and economies outside the
United States.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II
The Fidelity Variable Insurance Products Fund II (VIP II) is an open-end,
diversified, management investment company organized as a Massachusetts business
trust on March 21, 1988. VIP II's shares are purchased by insurance companies to
fund benefits under variable life insurance policies and variable annuity
contracts. FMR is the manager of VIP II and its portfolios.
VIP II CONTRAFUND(R) PORTFOLIO: SERVICE CLASS
Investment Objective: To seek capital appreciation by investing
primarily in companies that FMR believes to be undervalued due to an
overly pessimistic appraisal by the public. This strategy can lead to
investments in domestic or foreign companies, small and large, many of
which may not be well known. The Portfolio primarily invests in common
stock and securities convertible into common stock, but it has the
flexibility to invest in any type of security that may produce capital
appreciation.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND III
The Fidelity Variable Insurance Products Fund III (VIP III) is an open-end,
diversified, management investment company organized as a Massachusetts business
trust on July 14, 1994. VIP III's shares are purchased by insurance companies to
fund benefits under variable life insurance policies and variable annuity
contracts. FMR is the manager of VIP III and it's portfolios.
VIP III GROWTH OPPORTUNITIES PORTFOLIO: SERVICE CLASS
Investment Objective: Capital growth by investing primarily in common
stocks and securities convertible into common stocks. The Portfolio,
under normal conditions, will invest at least 65% of its total assets
in securities of companies that FMR believes have long-term growth
potential. Although the Portfolio invests primarily in common stock and
securities convertible into common stock, it has the ability to
purchase other securities, such as preferred stock and bonds, that may
produce capital growth. The Portfolio may invest in foreign securities
without limitation.
JANUS ASPEN SERIES
The Janus Aspen Series is an open-end management investment company whose shares
are offered in connection with investment in and payments under variable annuity
contracts and variable life insurance policies, as well as certain qualified
retirement plans. Janus Capital Corporation serves as investment adviser to each
Portfolio.
CAPITAL APPRECIATION PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing
primarily in common stocks selected for their growth potential. The
Portfolio may invest in companies of any size, from larger,
well-established companies to smaller, emerging growth companies.
GLOBAL TECHNOLOGY PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing
primarily in equity securities of U.S. and foreign companies selected
for their growth potential. Under normal circumstances, the Portfolio
invests at least 65% of its total assets in securities of companies
that the Portfolio manager believes will benefit significantly from
advances or improvements in technology.
INTERNATIONAL GROWTH PORTFOLIO: SERVICE SHARES
Investment Objective: Seeks long-term growth of capital by investing at
least 65% of its total assets in securities of issuers from at least
five different countries, excluding the United States. Although the
Portfolio intends to invest substantially all of its assets in issuers
located outside the United States, it may invest in U.S. issuers
60
<PAGE> 61
and it may at times invest all of its assets in fewer than five
countries, or even a single country.
NATIONWIDE SEPARATE ACCOUNT TRUST
Nationwide Separate Account Trust ("NSAT") is a diversified open-end management
investment company created under the laws of Massachusetts. NSAT offers shares
in the mutual funds listed below, each with its own investment objectives.
Shares of NSAT will be sold primarily to separate accounts to fund the benefits
under variable life insurance policies and variable annuity contracts issued by
life insurance companies. The assets of NSAT are managed by Villanova Mutual
Fund Capital Trust ("VMF"), an indirect subsidiary of Nationwide Financial
Services, Inc.
CAPITAL APPRECIATION FUND
Investment Objective: Long-term capital appreciation.
GOVERNMENT BOND FUND
Investment Objective: As high a level of income as is consistent with
the preservation of capital by investing in a diversified portfolio of
securities issued or backed by the U.S. Government, its agencies or
instrumentalities.
MONEY MARKET FUND
Investment Objective: As high a level of current income as is
consistent with the preservation of capital and maintenance of
liquidity.
TOTAL RETURN FUND
Investment Objective: To obtain a reasonable, long-term total return on
invested capital.
SUBADVISED NATIONWIDE FUNDS
NATIONWIDE BALANCED FUND
Subadviser: J.P. Morgan Investment Management Inc.
Investment Objective: Primarily seeks above-average income
compared to a portfolio entirely invested in equity
securities. The Fund's secondary objective is to take
advantage of opportunities for growth of capital and income.
The Fund seeks its objective primarily through investments in
a broad variety of securities, including equity securities,
fixed-income securities and short term obligations. Under
normal market conditions, it is anticipated that the Fund will
invest at least 40% of the Fund's total assets in equity
securities and at least 25% in fixed-income senior securities.
The Fund's subadviser will have discretion to invest in the
full range of maturities of fixed-income securities.
Generally, most of the Fund's long-term debt investments will
consist of "investment grade" securities, but the Fund may
invest up to 20% of its net assets in non-convertible
fixed-income securities rated below investment grade or
determined by the subadviser to be of comparable quality.
These securities are commonly known as junk bonds. In
addition, the Fund may invest an unlimited amount in
convertible securities rated below investment grade.
NATIONWIDE EQUITY INCOME FUND
Subadviser: Federated Investment Counseling
Investment Objective: Seeks above average income and capital
appreciation by investing at least 65% of its assets in
income-producing equity securities. Such equity securities
include common stocks, preferred stocks, and securities
(including debt securities) that are convertible into common
stocks. The portion of the Fund's total assets invested in
each type of equity security will vary according to the Fund's
subadviser's assessment of market, economic conditions and
outlook.
NATIONWIDE GLOBAL 50 FUND (FORMERLY, NATIONWIDE GLOBAL EQUITY
FUND)
Subadviser: J. P. Morgan Investment Management Inc.
Investment Objective: To provide high total return from a
globally diversified portfolio of equity securities. Total
return will consist of income plus realized and
61
<PAGE> 62
unrealized capital gains and losses. The Fund seeks its
investment objective through country allocation, stock
selection and management of currency exposure. Under normal
market conditions, J.P. Morgan Investment Management Inc.,
intends to keep the Fund essentially fully invested with at
least 65% of the value of its total assets in equity
securities consisting of common stocks and other securities
with equity characteristics such as preferred stocks,
warrants, rights, convertible securities, trust certificates,
limited partnership interests and equity participations. The
Fund's primary equity instruments are the common stock of
companies based in the developed countries around the world.
The assets of the Fund will ordinarily be invested in the
securities of at least five different countries.
NATIONWIDE HIGH INCOME BOND FUND
Subadviser: Federated Investment Counseling
Investment Objective: Seeks to provide high current income by
investing primarily in a professionally managed, diversified
portfolio of fixed income securities. To meet its objective,
the Fund intends to invest at least 65% of its assets in
lower-rated fixed income securities such as preferred stocks,
bonds, debentures, notes, equipment lease certificates and
equipment trust certificates which are rated BBB or lower by
Standard & Poor's or Fitch Investors Service or Baa or lower
by Moody's (or if not rated, are determined by the Fund's
subadviser to be of a comparable quality). Such investments
are commonly referred to as "junk bonds." For a further
discussion of lower-rated securities, please see the "High
Yield Securities" section of the Fund's prospectus.
NATIONWIDE MID CAP INDEX FUND (FORMERLY, NATIONWIDE SELECT
ADVISERS MID CAP FUND)
Subadviser: The Dreyfus Corporation
Investment Objective: Capital appreciation. The Fund seeks to
match the performance of the Standard & Poor's MidCap 400
Index. To pursue this goal, the Fund generally is fully
invested in all 400 stocks included in this index in
proportion to their weighting in the index, and in futures
whose performance is tied to the index. The Fund is neither
sponsored by nor affiliated with Standard & Poor's
Corporation.
NATIONWIDE MULTI SECTOR BOND FUND
Subadviser: Miller, Anderson & Sherrerd, LLP
Investment Objective: Primarily seeks a high level of current
income. Capital appreciation is a secondary objective. The
Fund seeks to achieve its objectives by investing in a
globally diverse portfolio of fixed-income investments and by
giving the subadviser broad discretion to deploy the Fund's
assets among certain segments of the fixed-income market that
the subadviser believes will best contribute to achievement of
the Fund's investment objectives. The Fund reserves the right
to invest predominantly in securities rated in medium or lower
categories, or as determined by the subadviser to be of
comparable quality, commonly referred to as "junk bonds."
Although the subadviser has the ability to invest up to 100%
of the Fund's assets in lower-rated securities, the subadviser
does not anticipate investing in excess of 75% of the Fund's
assets in such securities.
NATIONWIDE SMALL CAP GROWTH FUND (FORMERLY, NATIONWIDE SELECT
ADVISERS SMALL CAP GROWTH FUND)
Subadvisers: Franklin Advisers, Inc., Miller Anderson &
Sherrerd, LLP, Neuberger Berman, LLC.
Investment Objective: Seeks capital growth by investing in a
broadly
62
<PAGE> 63
diversified portfolio of equity securities issued by U.S. and
foreign companies with market capitalizations in the range of
companies represented by the Russell 2000, known has small cap
companies. Under normal market conditions, the Fund will
invest at least 65% of its total assets in the equity
securities of small cap companies. The balance of the Fund's
assets may be invested in equity securities of larger cap
companies.
NATIONWIDE SMALL CAP VALUE FUND
Subadviser: The Dreyfus Corporation
Investment Objective: The Fund intends to pursue its
investment objective by investing, under normal market
conditions, at least 75% of the Fund's total assets in equity
securities of companies whose equity market capitalizations at
the time of investments are similar to the market
capitalizations of companies in the Russell 2000 Small Stock
Index.
NATIONWIDE SMALL COMPANY FUND
Subadvisers: The Dreyfus Corporation, Neuberger Berman, LLC,
Lazard Asset Management and Strong Capital Management, Inc.
Investment Objective: Under normal market conditions, the Fund
will invest at least 65% of its total assets in equity
securities of companies whose equity market capitalizations at
the time of investment are similar to the market
capitalizations of companies in the Russell 2000 Small Stock
Index.
NATIONWIDE STRATEGIC GROWTH FUND
Subadviser: Strong Capital Management Inc.
Investment Objective: Capital growth by investing primarily in
equity securities that the Fund's subadviser believes have
above-average growth prospects. The Fund will generally invest
in companies whose earnings are believed to be in a relatively
strong growth trend, and to a lesser extent, in companies in
which significant further growth is not anticipated but whose
market value is thought to be undervalued. Under normal market
conditions, the Fund will invest at least 65% of its total
assets in equity securities, including common stocks,
preferred stocks, and securities convertible into common or
preferred stocks, such as warrants and convertible bonds. The
Fund may invest up to 35% of its total assets in debt
obligations, including intermediate- to long-term corporate or
U.S. Government debt securities.
NATIONWIDE STRATEGIC VALUE FUND (NOT AVAILABLE IN CONNECTION
WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE)
RECEIVED ON OR AFTER MAY 1, 2000)
Subadviser: Strong Capital Management Inc./Schafer Capital
Management Inc.
Investment Objective: Primarily long-term capital
appreciation; current income is a secondary objective. The
Fund seeks to meet its objectives by investing in securities
which are believed to offer the possibility of increase in
value, primarily common stocks of established companies having
a strong financial position and a low stock market valuation
at the time of purchase in relation to investment value. Other
than considered appropriate for cash reserves, the Fund will
generally maintain a fully invested position in common stocks
of publicly held companies, primarily in stocks of companies
listed on a national securities exchange or other equity
securities (common stock or securities convertible into common
stock). Investments may also be made in debt securities which
are convertible into common stocks and in warrants or other
rights to purchase common stock, which in such case are
considered equity securities by the Fund. Strong Capital
Management, Inc. has subcontracted with Schafer Capital
Management, Inc. to subadvise the Fund.
63
<PAGE> 64
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Neuberger Berman Advisers Management Trust ("NB AMT") is an open-end,
diversified management investment company consisting of several series. Shares
of the series of NB AMT are offered in connection with certain variable annuity
contracts and variable life insurance policies issued through life insurance
company separate accounts and are also offered directly to qualified pension and
retirement plans outside of the separate account context.
The Guardian, Partners and Mid-Cap Growth Portfolios of NB AMT invest all of
their investable assets in a corresponding series of Advisers Managers Trust
managed by Neuberger Berman Management Incorporated ("NB Management"). Each
series then invests in securities in accordance with an investment objective,
policies and limitations identical to those of the Portfolio. This
"master/feeder fund" structure is different from that of many other investment
companies which directly acquire and manage their own portfolios of securities.
(For more information regarding "master/feeder fund" structure, see "Special
Information Regarding Organization, Capitalization, and Other Matters" in the
underlying mutual fund prospectus.) The investment advisor is NB Management.
AMT GUARDIAN PORTFOLIO
Investment Objective: Capital appreciation and secondarily, current
income. The Portfolio and its corresponding series seek to achieve
these objectives by investing in common stocks of long-established,
high-quality companies. NB Management uses a value-oriented investment
approach in selecting securities, looking for low price-to-earnings
ratios, strong balance sheets, solid management, and consistent
earnings.
AMT MID-CAP GROWTH PORTFOLIO
Investment Objective: Capital appreciation by investing in equity
securities of medium-sized companies that NB Management believes have
the potential for long-term, above-average capital appreciation.
Medium-sized companies have market capitalizations form $300 million to
$10 billion at the time of investment. The Portfolio and its
corresponding series may invest up to 10% of its net assets, measured
at the time of investment, in corporate debt securities that are below
investment grade or, if unrated, deemed by NB Management to be of
comparable quality. Securities that are below investment grade, as well
as unrated securities, are often considered to be speculative and
usually entail greater risk. As a part of the Portfolio's investment
strategy, the Portfolio may invest up to 20% of its net assets in
securities of issuers organized and doing business principally outside
the United States. This limitation does not apply with respect to
foreign securities that are denominated in U.S. dollars.
AMT PARTNERS PORTFOLIO
Investment Objective: Capital growth by investing primarily in the
common stock of established companies. Its investment program seeks
securities believed to be undervalued based on fundamentals such as low
price-to-earnings ratios, consistent cash flows, and the company's
track record through all parts of the market cycle.
OPPENHEIMER VARIABLE ACCOUNT FUNDS
The Oppenheimer variable account Funds are an open-end, diversified management
investment company organized as a Massachusetts business trust in 1984. Shares
of the Funds are sold to provide benefits under variable life insurance policies
and variable annuity contracts. OppenheimerFunds, Inc. is the investment
adviser.
OPPENHEIMER AGGRESSIVE GROWTH FUND/VA (FORMERLY, OPPENHEIMER CAPITAL
APPRECIATION FUND)
Investment Objective: Capital appreciation by investing in "growth
type" companies. Such companies are believed to have relatively
favorable long-term prospects for increasing demand for their goods or
64
<PAGE> 65
services, or to be developing new products, services or markets and
normally retain a relatively larger portion of their earnings for
research, development and investment in capital assets. The Fund may
also invest in cyclical industries in "special situations" that
OppenheimerFunds, Inc. believes present opportunities for capital
growth.
OPPENHEIMER CAPITAL APPRECIATION FUND/VA (FORMERLY, OPPENHEIMER GROWTH
FUND)
Investment Objective: Capital appreciation by investing in securities
of well-known established companies. Such securities generally have a
history of earnings and dividends and are issued by seasoned companies
(companies which have an operating history of at least five years
including predecessors). Current income is a secondary consideration in
the selection of the Fund's portfolio securities.
OPPENHEIMER GLOBAL SECURITIES FUND/VA
Investment Objective: To seek long-term capital appreciation by
investing a substantial portion of assets in securities of foreign
issuers, "growth-type" companies, cyclical industries and special
appreciation possibilities. These securities may be considered
speculative.
OPPENHEIMER MAIN STREET GROWTH & INCOME FUND/VA (FORMERLY, OPPENHEIMER
GROWTH & INCOME FUND)
Investment Objective: High total return, which stocks, preferred
stocks, convertible securities and warrants. Debt investments will
include bonds, participation includes growth in the value of its shares
as well as current income from quality and debt securities. In seeking
its investment objectives, the Fund may invest in equity and debt
securities. Equity investments will include common interests,
asset-backed securities, private-label mortgage-backed securities and
CMOs, zero coupon securities and U.S. debt obligations, and cash and
cash equivalents. From time to time, the Fund may focus on small to
medium capitalization issuers, the securities of which may be subject
to greater price volatility than those of larger capitalized issuers.
STRONG OPPORTUNITY FUND II, INC.
The Strong Opportunity Fund II, Inc. is a diversified, open-end management
company commonly called a mutual fund. The Strong Opportunity Fund II, Inc. was
incorporated in Wisconsin and may only be purchased by the separate accounts of
insurance companies for the purpose of funding variable annuity contracts and
variable life insurance policies. Strong Capital Management Inc. is the
investment adviser for the Fund.
Investment Objective: To seek capital appreciation through investments
in a diversified portfolio of equity securities.
THE UNIVERSAL INSTITUTIONAL FUNDS, INC. (FORMERLY, MORGAN STANLEY DEAN WITTER
UNIVERSAL FUNDS, INC.)
The Universal Institutional Funds, Inc. is a mutual fund designed to provide
investment vehicles for variable annuity contracts and variable life insurance
policies and for certain tax-qualified investors. Its Emerging Markets Debt
Portfolio is managed by Morgan Stanley Dean Witter Investment Management, Inc.
EMERGING MARKETS DEBT PORTFOLIO
Investment Objective: High total return by investing primarily in
dollar and non-dollar denominated fixed income securities of government
and government-related issuers located in emerging market countries,
which securities provide a high level of current income, while at the
same time holding the potential for capital appreciation if the
perceived creditworthiness of the issuer improves due to improving
economic, financial, political, social or other conditions in the
country in which the issuer is located.
65
<PAGE> 66
MID CAP GROWTH PORTFOLIO
Investment Objective: Long-term capital growth by investing primarily
in common stocks and other equity securities of issuers with equity
capitalizations in the range of the companies represented in the
Standard & Poor's Rating Group ("S&P") MidCap 400 Index. Such range is
generally $500 million to $6 billion but the range fluctuates over time
with changes in the equity market. Miller Anderson & Sherrerd, LLP is
the Portfolio's investment adviser.
VAN ECK WORLDWIDE INSURANCE TRUST
Van Eck Worldwide Insurance Trust ("Van Eck Trust") is an open-end management
investment company organized as a business trust under the laws of the
Commonwealth of Massachusetts on January 7, 1987. Shares of Van Eck Trust are
offered only to separate accounts of insurance companies to fund the benefits of
variable life insurance policies and variable annuity contracts. The investment
advisor and manager is Van Eck Associates Corporation.
WORLDWIDE EMERGING MARKETS FUND
Investment Objective: Seeks long-term capital appreciation by investing
primarily in equity securities in emerging markets around the world.
The Fund emphasizes investment in countries that, compared to the
world's major economies, exhibit relatively low gross national product
per capita, as well as the potential for rapid economic growth.
WORLDWIDE HARD ASSETS FUND
Investment Objective: Long-term capital appreciation by investing
primarily in "Hard Asset Securities." For the Fund's purpose, "Hard
Assets" are real estate, energy, timber, and industrial and precious
metals. Income is a secondary consideration.
VAN KAMPEN LIFE INVESTMENT TRUST
Van Kampen Life Investment Trust is an open-end diversified management
investment company organized as a Delaware business trust. Shares are offered in
separate portfolios which are sold only to insurance companies to provide
funding for variable life insurance policies and variable annuity contracts. Van
Kampen Asset Management Inc. serves as the Fund's investment adviser.
MORGAN STANLEY REAL ESTATE SECURITIES PORTFOLIO
Investment Objective: Long-term capital growth by investing principally
in a diversified portfolio of securities of companies operating in the
real estate industry ("Real Estate Securities"). Current income is a
secondary consideration. Real Estate Securities include equity
securities, including common stocks and convertible securities, as well
as non-convertible preferred stocks and debt securities of real estate
industry companies. A "real estate industry company" is a company that
derives at least 50% of its assets (marked to market), gross income or
net profits from the ownership, construction, management or sale of
residential, commercial or industrial real estate. Under normal market
conditions, at least 65% of the Fund's total assets will be invested in
Real Estate Securities, primarily equity securities of real estate
investment trusts. The Portfolio may invest up to 25% of its total
assets in securities issued by foreign issuers, some or all of which
may also be Real Estate Securities.
WARBURG PINCUS TRUST
The Warburg Pincus Trust is an open-end management investment company organized
in March 1995 as a business trust under the laws of The Commonwealth of
Massachusetts. The Trust offers its shares to insurance companies for allocation
to separate accounts for the purpose of funding variable annuity and variable
life contracts. Portfolios are managed by Credit Suisse Asset Management, LLC
("Credit Suisse").
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<PAGE> 67
VALUE PORTFOLIO (FORMERLY, GROWTH & INCOME PORTFOLIO) (NOT AVAILABLE IN
CONNECTION WITH CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR
WERE) RECEIVED ON OR AFTER MAY 1, 2000)
Investment Objective: Seeks total return by investing primarily in
equity securities of value companies that may or may not pay dividends.
INTERNATIONAL EQUITY PORTFOLIO (NOT AVAILABLE IN CONNECTION WITH
CONTRACTS FOR WHICH GOOD ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON
OR AFTER SEPTEMBER 27, 1999)
Investment Objective: Long-term capital appreciation by investing
primarily in a broadly diversified portfolio of equity securities of
companies, wherever organized, that in the judgment of Credit Suisse
have their principal business activities and interests outside the
United States. The Portfolio will ordinarily invest substantially all
of its assets, but no less than 65% of its total assets, in common
stocks, warrants and securities convertible into or exchangeable for
common stocks. The Portfolio intends to invest principally in the
securities of financially strong companies with opportunities for
growth within growing international economies and markets through
increased earning power and improved utilization or recognition of
assets.
GLOBAL POST-VENTURE CAPITAL PORTFOLIO (FORMERLY, POST-VENTURE
PORTFOLIO) (NOT AVAILABLE IN CONNECTION WITH CONTRACTS FOR WHICH GOOD
ORDER APPLICATIONS ARE (OR WERE) RECEIVED ON OR AFTER SEPTEMBER 27,
1999
Investment Objective: Seeks long-term growth of capital by investing
primarily in equity securities of U.S. and foreign companies considered
to be in their post-venture capital stage of development. Under normal
market conditions, the Portfolio will invest at least 65% of its total
assets in equity securities of "post-venture capital companies." A
post-venture capital company is one that has received venture capital
financing either: (a) during the early stages of the company's
existence or the early stages of the development of a new product or
service; or (b) as part of a restructuring or recapitalization of the
company. The Portfolio will invest in at least three countries
including the Unites States.
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<PAGE> 68
APPENDIX B: CONDENSED FINANCIAL INFORMATION
Accumulation unit values for accumulation units outstanding throughout the
period.
<TABLE>
<CAPTION>
NO OPTIONAL BENEFITS ELECTED (TOTAL 1.20%)
(VARIABLE ACCOUNT CHARGES OF 1.20% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
American Century 12.431326 14.495483 16.60% 153,346 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 12.431326 24.31% 1,288 1998
VP Income & Growth - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
American Century 12.431326 14.495483 16.60% 218,180 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 12.431326 24.31% 1,176 1998
VP Income & Growth - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
American Century 10.904652 17.674116 62.08% 88,463 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 10.904652 9.05% 0 1998
VP International - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
American Century 10.904652 17.674116 62.08% 176,995 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 10.904652 9.05% 223 1998
VP International - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
American Century 11.497731 11.263216 -2.04% 57,164 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 11.497731 14.98% 0 1998
VP Value - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
American Century 11.497731 11.263216 -2.04% 100,599 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 11.497731 14.98% 1,306 1998
VP Value - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Dreyfus Investment 10.000000 12.890242 28.90% 7,628 1999
Portfolios - European -------------------- ------------------ ------------------- ------------------- -------------
Equity Portfolio - Q
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Dreyfus Investment 10.000000 12.890242 28.90% 6,633 1999
Portfolios - European -------------------- ------------------ ------------------- ------------------- -------------
Equity Portfolio - NQ
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
68
<PAGE> 69
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 12.758878 16.397708 28.52% 72,938 1999
Responsible Growth -------------------- ------------------ ------------------- ------------------- -------------
Fund, Inc. - Q 10.000000 12.758878 27.59% 740 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
The Dreyfus Socially 12.758878 16.397708 28.52% 197,418 1999
Responsible Growth -------------------- ------------------ ------------------- ------------------- -------------
Fund, Inc. - NQ 10.000000 12.758878 27.59% 2,098 1998
-------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Dreyfus Stock Index 12.367188 14.736468 19.16% 317,764 1999
Fund, Inc. - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.367188 23.67% 2,486 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Dreyfus Stock Index 12.367188 14.736468 19.16% 883,507 1999
Fund, Inc. - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.367188 23.67% 26,086 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Dreyfus Variable 12.207586 13.442893 10.12% 109,356 1999
Investment Fund -------------------- ------------------ ------------------- ------------------- -------------
- -Appreciation Portfolio 10.000000 12.207586 22.08% 0 1998
- - Q(1) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Dreyfus Variable 12.207586 13.442893 10.12% 258,806 1999
Investment Fund -------------------- ------------------ ------------------- ------------------- -------------
- -Appreciation Portfolio 10.000000 12.207586 22.08% 2,910 1998
- - NQ(1) -------------------- ------------------ ------------------- ------------------- -------------
Federated Insurance 10.000000 9.790385 -2.10% 7,252 1999
Series - Federated
Quality Bond Fund II - Q
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Federated Insurance 10.000000 9.790385 -2.10% 7,843 1999
Series - Federated -------------------- ------------------ ------------------- ------------------- -------------
Quality Bond Fund II -
NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP 11.850451 12.440601 4.98% 156,626 1999
Equity-Income -------------------- ------------------ ------------------- ------------------- -------------
Portfolio: Service 10.000000 11.850451 18.50% 1,331 1998
Class - Q
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP 11.850451 12.440601 4.98% 398,586 1999
Equity-Income -------------------- ------------------ ------------------- ------------------- -------------
Portfolio: Service 10.000000 11.850451 18.50% 776 1998
Class - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
69
<PAGE> 70
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP Growth 13.015101 17.653733 35.64% 424,562 1999
Portfolio: Service -------------------- ------------------ ------------------- ------------------- -------------
Class - Q 10.000000 13.015101 30.15% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP Growth 13.015101 17.653733 35.64% 744,435 1999
Portfolio: Service -------------------- ------------------ ------------------- ------------------- -------------
Class - NQ 10.000000 13.015101 30.15% 10,429 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP High 10.384114 11.087928 6.78% 68,880 1999
Income Portfolio: -------------------- ------------------ ------------------- ------------------- -------------
Service Class - Q 10.000000 10.384114 3.84% 878 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP High 10.384114 11.087928 6.78% 195,058 1999
Income Portfolio: -------------------- ------------------ ------------------- ------------------- -------------
Service Class - NQ 10.000000 10.384114 3.84% 1,251 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP Overseas 11.296846 15.900927 40.76% 48,657 1999
Portfolio: Service -------------------- ------------------ ------------------- ------------------- -------------
Class - Q 10.000000 11.296846 12.97% 1,382 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP Overseas 11.296846 15.900927 40.76% 101,781 1999
Portfolio: Service -------------------- ------------------ ------------------- ------------------- -------------
Class - NQ 10.000000 11.296846 12.97% 811 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP II 12.602507 15.457984 22.66% 330,761 1999
Contrafund(R)Portfolio: -------------------- ------------------ ------------------- ------------------- -------------
Service Class - Q 10.000000 12.602507 26.03% 1,331 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP II 12.602507 15.457984 22.66% 666,106 1999
Contrafund(R)Portfolio: -------------------- ------------------ ------------------- ------------------- -------------
Service Class - NQ 10.000000 12.602507 26.03% 10,719 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP III Growth 12.421717 12.785954 2.93% 107,947 1999
Opportunities -------------------- ------------------ ------------------- ------------------- -------------
Portfolio: Service 10.000000 12.421717 24.22% 0 1998
Class - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Fidelity VIP III Growth 12.421717 12.785954 2.93% 253,025 1999
Opportunities -------------------- ------------------ ------------------- ------------------- -------------
Portfolio: Service 10.000000 12.421717 24.22% 2,338 1998
Class - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
70
<PAGE> 71
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Capital 12.392954 12.767993 3.03% 98,307 1999
Appreciation Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.392954 23.93% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Capital 12.392954 12.767993 3.03% 339,211 1999
Appreciation Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.392954 23.93% 2,724 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Government Bond 10.174058 9.816007 -3.52% 63,555 1999
Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.174058 1.74% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Government Bond 10.174058 9.816007 -3.52% 229,852 1999
Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.174058 1.74% 1,172 1998
-------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Money Market Fund 10.126097 10.489614 3.59% 250,793 1999
- - Q* -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.126097 1.26% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Money Market Fund 10.126097 10.489614 3.59% 741,672 1999
- - NQ* -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.126097 1.26% 48,756 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Total Return Fund 11.968910 12.646339 5.66% 75,208 1999
- - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.968910 19.69% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Total Return Fund 11.968910 12.646339 5.66% 194,496 1999
- - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.968910 19.69% 2,349 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide 10.772545 10.735723 -0.34% 18,162 1999
Balanced Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.772545 7.73% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide 10.772545 10.735723 -0.34% 36,771 1999
Balanced Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.772545 7.73% 842 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Equity 11.927845 13.963829 17.07% 11,784 1999
Income Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.927845 19.28% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Equity 11.927845 13.963829 17.07% 27,402 1999
Income Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.927845 19.28% 1,552 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
e 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
8%.
71
<PAGE> 72
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Global 11.747364 14.267173 21.45% 21,255 1999
50 Fund - Q(1) -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.747364 17.47% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Global 11.747364 14.267173 21.45% 54,375 1999
50 Fund - NQ(1) -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.747364 17.47% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide High 10.558563 10.764664 1.95% 13,174 1999
Income Bond Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.558563 5.59% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide High 10.558563 10.764664 1.95% 28,453 1999
Income Bond Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.558563 5.59% 1,154 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 3,953 1999
Index Fund - Q(2) -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.257790 22.58% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Mid Cap 12.257790 14.644558 19.47% 14,427 1999
Index Fund - NQ(2) -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.257790 22.58% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Multi 10.475252 10.510552 0.34% 22,793 1999
Sector Bond Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.475252 4.75% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Multi 10.475252 10.510552 0.34% 22,519 1999
Sector Bond Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 10.475252 4.75% 1,706 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Small 10.000000 20.338511 103.39% 14,318 1999
Cap Growth Fund - Q(3) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Small 10.000000 20.338511 103.39% 16,901 1999
Cap Growth Fund - NQ(3) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
(2) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(3) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
72
<PAGE> 73
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Small 12.586199 15.896867 26.30% 16,931 1999
Cap Value Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.586199 25.86% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Small 12.586199 15.896867 26.30% 55,415 1999
Cap Value Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.586199 25.86% 1,878 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Small 12.016781 17.099098 42.29% 26,101 1999
Company Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.016781 20.17% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide Small 12.016781 17.099098 42.29% 54,286 1999
Company Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.016781 20.17% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide 12.463581 22.750997 82.54% 43,707 1999
Strategic Growth Fund - -------------------- ------------------ ------------------- ------------------- -------------
Q 10.000000 12.463581 24.64% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide 12.463581 22.750997 82.54% 95,640 1999
Strategic Growth Fund - -------------------- ------------------ ------------------- ------------------- -------------
NQ 10.000000 12.463581 24.64% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide 12.477330 11.949113 -4.23% 3,411 1999
Strategic Value Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.477330 24.77% 853 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
NSAT Nationwide 12.477330 11.949113 -4.23% 9,951 1999
Strategic Value Fund - -------------------- ------------------ ------------------- ------------------- -------------
NQ 10.000000 12.477330 24.77% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Neuberger Berman AMT 12.307946 13.976229 13.55% 43,271 1999
Guardian Portfolio - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.307946 23.08% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Neuberger Berman AMT 12.307946 13.976229 13.55% 98,016 1999
Guardian Portfolio - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 12.307946 23.08% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Neuberger Berman AMT 13.702754 20.834304 52.04% 53,952 1999
Mid-Cap Growth -------------------- ------------------ ------------------- ------------------- -------------
Portfolio - Q 10.000000 13.702754 37.03% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
73
<PAGE> 74
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Neuberger Berman AMT 13.702754 20.834304 52.04% 129,643 1999
Mid-Cap Growth -------------------- ------------------ ------------------- ------------------- -------------
Portfolio - NQ
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
10.000000 13.702754 37.03% 1,744 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Neuberger Berman AMT 11.821068 12.539993 6.08% 39,095 1999
Partners Portfolio - Q -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.821068 18.21% 874 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Neuberger Berman AMT 11.821068 12.539993 6.08% 88,792 1999
Partners Portfolio - NQ -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.821068 18.21% 1,913 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Variable 12.961315 23.512658 81.41% 38,475 1999
Account Funds - -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Aggressive 10.000000 12.961315 29.61% 0 1998
Growth Fund/VA - Q(1) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Variable 12.961315 23.512658 81.41% 109,178 1999
Account Funds - -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Aggressive 10.000000 12.961315 29.61% 1,383 1998
Growth Fund/VA - NQ(1) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Variable 12.752843 17.848621 39.96% 91,823 1999
Account Funds - -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Capital 10.000000 12.752843 27.53% 0 1998
Appreciation Fund/VA - -------------------- ------------------ ------------------- ------------------- -------------
Q(2)
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Variable 12.752843 17.848621 39.96% 184,810 1999
Account Funds - -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Capital 10.000000 12.752843 27.53% 2,543 1998
Appreciation Fund/VA - -------------------- ------------------ ------------------- ------------------- -------------
NQ2
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
74
<PAGE> 75
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Variable 12.149185 14.609212 20.25% 108,861 1999
Account Funds - -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Main Street 10.000000 12.149185 21.49% 796 1998
Growth & Income Fund/VA -------------------- ------------------ ------------------- ------------------- -------------
- - Q(1)
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Variable 12.149185 14.609212 20.25% 261,855 1999
Account Funds - -------------------- ------------------ ------------------- ------------------- -------------
Oppenheimer Main Street 10.000000 12.149185 21.49% 1,940 1998
Growth & Income Fund/VA -------------------- ------------------ ------------------- ------------------- -------------
- - NQ(1)
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
The Universal 11.400149 14.572201 27.82% 11,108 1999
Institutional Funds, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - Emerging Markets 10.000000 11.400149 14.00% 0 1998
Debt Portfolio - Q(2) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
The Universal 11.400149 14.572201 27.82% 21,560 1999
Institutional Funds, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - Emerging Markets 10.000000 11.400149 14.00% 593 1998
Debt Portfolio - NQ(2) -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Van Eck Worldwide 12.101814 23.947713 97.89% 10,295 1999
Insurance Trust - -------------------- ------------------ ------------------- ------------------- -------------
Worldwide Emerging 10.000000 12.101814 21.02% 0 1998
Markets Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Van Eck Worldwide 12.101814 23.947713 97.89% 41,623 1999
Insurance Trust - -------------------- ------------------ ------------------- ------------------- -------------
Worldwide Emerging 10.000000 12.101814 21.02% 1,018 1998
Markets Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Van Eck Worldwide 10.581149 12.649846 19.55% 12,722 1999
Insurance Trust - -------------------- ------------------ ------------------- ------------------- -------------
Worldwide Hard Assets 10.000000 10.581149 5.81% 0 1998
Fund - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Van Eck Worldwide 10.581149 12.649846 19.55% 15,637 1999
Insurance Trust - -------------------- ------------------ ------------------- ------------------- -------------
Worldwide Hard Assets 10.000000 10.581149 5.81% 0 1998
Fund - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
(2) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
75
<PAGE> 76
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Van Kampen Life 10.740684 10.253920 -4.53% 11,674 1999
Investment Trust - -------------------- ------------------ ------------------- ------------------- -------------
Morgan Stanley Real 10.000000 10.740684 7.41% 0 1998
Estate Securities -------------------- ------------------ ------------------- ------------------- -------------
Portfolio - Q
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Van Kampen Life 10.740684 10.253920 -4.53% 41,535 1999
Investment Trust - -------------------- ------------------ ------------------- ------------------- -------------
Morgan Stanley Real 10.000000 10.740684 7.41% 2,201 1998
Estate Securities -------------------- ------------------ ------------------- ------------------- -------------
Portfolio - NQ
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Warburg Pincus Trust - 12.739606 20.579437 61.54% 4,931 1999
Global Post-Venture -------------------- ------------------ ------------------- ------------------- -------------
Capital Portfolio - Q(1) 10.000000 12.739606 27.40% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Warburg Pincus Trust - 12.739606 20.579437 61.54% 27,964 1999
Global Post-Venture -------------------- ------------------ ------------------- ------------------- -------------
Capital Portfolio - NQ(1) 10.000000 12.739606 27.40% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Warburg Pincus Trust - 10.801619 16.374564 51.59% 18,175 1999
International Equity -------------------- ------------------ ------------------- ------------------- -------------
Portfolio - Q 10.000000 10.801619 8.02% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Warburg Pincus Trust - 10.801619 16.374564 51.59% 23,601 1999
International Equity -------------------- ------------------ ------------------- ------------------- -------------
Portfolio - NQ 10.000000 10.801619 8.02% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Warburg Pincus Trust - 11.688738 12.269490 4.97% 19,814 1999
Value Portfolio - Q2 -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.688738 16.89% 25 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
Warburg Pincus Trust - 11.688738 12.269490 4.97% 13,095 1999
Value Portfolio - NQ2 -------------------- ------------------ ------------------- ------------------- -------------
10.000000 11.688738 16.89% 0 1998
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service
76
<PAGE> 77
Shares were added to the variable account effective January 27, 2000. Therefore,
no Condensed Financial Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
77
<PAGE> 78
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.25%)
(VARIABLE ACCOUNT CHARGES OF 1.25% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------- ------------------- -------------
American Century 12.429254 14.485724 16.55% 28,163 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 12.429254 24.29% 0 1998
VP Income & Growth - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
American Century 12.429254 14.485724 16.55% 70,791 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 12.429254 24.29% 0 1998
VP Income & Growth - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
American Century 10.902825 17.662250 62.00% 15,144 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 10.902825 9.03% 0 1998
VP International - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
American Century 10.902825 17.662250 62.00% 39,926 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc. - American Century 10.000000 10.902825 9.03% 0 1998
VP International - NQ -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
American Century 11.495807 11.255628 -2.09% 10,437 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc - American Century 10.000000 11.495807 14.96% 0 1998
VP Value - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
American Century 11.495807 11.255628 -2.09% 27,377 1999
Variable Portfolios, -------------------- ------------------ ------------------- ------------------- -------------
Inc - American Century 10.000000 11.495807 14.96% 322 1998
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
VP Value - NQ 10.000000 12.888550 28.89% 2,408 1999
Dreyfus Investment -------------------- ------------------ ------------------- ------------------- -------------
Portfolios - European
Equity Portfolio - Q -------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.888550 28.89% 83 1999
Portfolios - European -------------------- ------------------ ------------------- ------------------- -------------
Equity Portfolio - NQ
- ------------------------- -------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
78
<PAGE> 79
<TABLE>
<CAPTION>
- ------------------------- -------------------- ------------------ ------------------- ------------------ -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- -------------------- ------------------ ------------------- ------------------ -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- -------------------- ------------------ ------------------ ------------------ -------------
The Dreyfus Socially 12.756741 16.386683 28.46% 15,724 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - Q 10.000000 12.756741 27.57% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.756741 16.386683 28.46% 23,875 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - NQ 10.000000 12.756741 27.57% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.365124 14.726559 19.10% 79,760 1999
Fund, Inc. - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.365124 23.65% 0 Z1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.365124 14.726559 19.10% 168,117 1999
Fund, Inc. - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.365124 23.65% 1,686 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.205549 13.433832 10.06% 11,623 1999
Investment Fund -------------------- ------------------ ------------------- ------------------- ------------
- -Appreciation Portfolio 10.000000 12.205549 22.06% 0 1998
- - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.205549 13.433832 10.06% 32,571 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.205549 22.06% 0 1998
- - NQ(1) ------------------- ------------------ ------------------- ------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.787093 -2.13% 407 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.787093 -2.13% 440 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II -
NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.848469 12.432231 4.93% 38,692 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.848469 18.48% 0 1998
Class - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.848469 12.432231 4.93% 112,541 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.848469 18.48% 1,549 1998
Class - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
79
<PAGE> 80
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 13.012933 17.641868 35.57% 60,378 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 13.012933 30.13% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 13.012933 17.641868 35.57% 120,323 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 13.012933 30.13% 1,201 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.382374 11.080460 6.72% 18,186 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - Q 10.000000 10.382374 3.82% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.382374 11.080460 6.72% 37,233 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - NQ 10.000000 10.382374 3.82% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 11.294949 15.890221 40.68% 6,281 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 11.294949 12.95% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 11.294949 15.890221 40.68% 47,995 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 11.294949 12.95% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.600399 15.447579 22.60% 41,329 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - Q 10.000000 12.600399 26.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.600399 15.447579 22.60% 86,270 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - NQ 10.000000 12.600399 26.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.419643 12.777351 2.88% 19,723 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.419643 24.20% 0 1998
Class - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.419643 12.777351 2.88% 33,643 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.419643 24.20% 0 1998
Class - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.390885 12.759401 2.97% 39,309 1999
Appreciation Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.390885 23.91% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
80
<PAGE> 81
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.390885 12.759401 2.97% 38,078 1999
Appreciation Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.390885 23.91% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 10.172348 9.809384 -3.57% 24,669 1999
Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.172348 1.72% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 10.172348 9.809384 -3.57% 45,642 1999
Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.172348 1.72% 442 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.124383 10.482530 3.54% 108,020 1999
- - Q* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.124838 1.24% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.124383 10.482530 3.54% 79,313 1999
- - NQ* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.124838 1.24% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.966903 12.637807 5.61% 31,348 1999
- - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.966903 19.67% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.966903 12.637807 5.61% 39,235 1999
- - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.966903 19.67% 137 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.770735 10.728485 -0.39% 659 1999
Balanced Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.770735 7.71% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.770735 10.728485 -0.39% 12,442 1999
Balanced Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.770735 7.71% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.925844 13.954430 17.01% 1,309 1999
Income Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.925844 19.26% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.925844 13.954430 17.01% 2,203 1999
Income Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.925844 19.26% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 11.745400 14.257588 21.39% 1,197 1999
50 Fund(1) - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.745400 17.45% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 11.745400 14.257588 21.39% 16,046 1999
50 Fund(1) - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.745400 17.45% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Nationwide Money Market Fund as of December 31,
199 was 4.13%.
81
<PAGE> 82
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.556787 10.757403 1.90% 2,457 1999
Income Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.556787 5.57% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.556787 10.757403 1.90% 8,309 1999
Income Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.556787 5.57% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 80 1999
Index Fund - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.255745 22.56% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.255745 14.634711 19.41% 2,497 1999
Index Fund - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.255745 22.56% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.473496 10.503468 0.29% 182 1999
Sector Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.473496 4.73% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.473496 10.503468 0.29% 3,824 1999
Sector Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.473496 4.73% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.331712 103.32% 681 1999
Cap Growth Fund - Q2 ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.331712 103.32% 3,667 1999
Cap Growth Fund - NQ2 ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.584102 15.886176 26.24% 6,706 1999
Cap Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.584102 25.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.584102 15.886176 26.24% 7,074 1999
Cap Value Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.584102 25.84% 310 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
82
<PAGE> 83
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.014774 17.087592 42.22% 5,137 1999
Company Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.014774 20.15% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.014774 17.087592 42.22% 15,996 1999
Company Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.014774 20.15% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.461498 22.735718 82.45% 8,954 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
Q 10.000000 12.461498 24.61% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.461498 22.735718 82.45% 26,153 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 12.461498 24.61% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.475236 11.941061 -4.28% 0 1999
Strategic Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.475236 24.75% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.475236 11.941061 -4.28% 6,718 1999
Strategic Value Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 12.475236 24.75% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.305897 13.966839 13.50% 4,771 1999
Guardian Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.305897 23.06% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.305897 13.966839 13.50% 9,284 1999
Guardian Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.305897 23.06% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 13.700471 20.820318 51.97% 6,222 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 13.700471 37.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 13.700471 20.820318 51.97% 21,721 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 13.700471 37.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
83
<PAGE> 84
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.819096 12.531553 6.03% 4,561 1999
Partners Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.819096 18.19% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.819096 12.531553 6.03% 29,890 1999
Partners Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.819096 18.19% 789 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.959156 23.496887 81.31% 11,956 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 12.959156 29.59% 0 1998
Growth Fund/VA - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.959156 23.496887 81.31% 34,519 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 12.959156 29.59% 678 1998
Growth Fund/VA - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.750719 17.836627 39.89% 8,852 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 12.750719 27.51% 0 1998
Appreciation Fund/VA - ------------------- ------------------ ------------------ -------------------- -------------
Q(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.750719 17.836627 39.89% 37,199 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 12.750719 27.51% 0 1998
Appreciation Fund/VA - ------------------- ------------------ ------------------ -------------------- -------------
NQ(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.147153 14.599387 20.19% 24,445 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.147153 21.47% 0 1998
Growth & Income Fund/VA ------------------- ------------------ ------------------ -------------------- -------------
- - Q(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.147153 14.599387 20.19% 74,139 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.147153 21.47% 0 1998
Growth & Income Fund/VA ------------------- ------------------ ------------------ -------------------- -------------
- - NQ(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
84
<PAGE> 85
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.398245 14.562396 27.76% 55 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.398245 13.98% 0 1998
Debt Portfolio - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.398245 14.562396 27.76% 315 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.398245 13.98% 0 1998
Debt Portfolio - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.099788 23.931619 97.79% 2,614 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.099788 21.00% 0 1998
Markets Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.099788 23.931619 97.79% 7,039 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.099788 21.00% 0 1998
Markets Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 10.579367 12.641312 19.49% 57 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 10.579367 5.79% 0 1998
Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 10.579367 12.641312 19.49% 696 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 10.579367 5.79% 0 1998
Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.738882 10.247016 -4.58% 704 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.738882 7.39% 0 1998
Estate Securities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.738882 10.247016 -4.58% 557 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.738882 7.39% 0 1998
Estate Securities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
85
<PAGE> 86
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.737475 20.565582 61.46% 3,406 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - Q(1) 10.000000 12.737475 27.37% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.737475 20.565582 61.46% 175 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - NQ(1) 10.000000 12.737475 27.37% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.799816 16.363554 51.52% 17,984 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 10.799816 8.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.799816 16.363554 51.52% 7,363 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 10.799816 8.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.686779 12.261224 4.92% 2,849 1999
Value Portfolio - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.686779 16.87% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.686779 12.261224 4.92% 1,916 1999
Value Portfolio - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.686779 16.87% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
86
<PAGE> 87
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.50%)
(VARIABLE ACCOUNT CHARGES OF 1.50% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.502898 14.534695 16.25% 839 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.502898 25.03% 0 1998
VP Income & Growth - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.502898 14.534695 16.25% 3,976 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.502898 25.03% 0 1998
VP Income & Growth - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.049887 19.471172 61.59% 4,363 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.049887 20.50% 0 1998
VP International - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.049887 19.471172 61.59% 20,263 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.049887 20.50% 0 1998
VP International - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 11.268440 11.005082 -2.34% 180 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 11.268440 12.68% 0 1998
VP Value - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 11.268440 11.005082 -2.34% 749 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 11.268440 12.68% 0 1998
VP Value - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.880083 28.80% 0 1999
Portfolios - European ------------------- ------------------ ------------------ -------------------- -------------
Equity Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.880083 28.80% 0 1999
Portfolios - European ------------------- ------------------ ------------------ -------------------- -------------
Equity Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
87
<PAGE> 88
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.772030 16.364824 29.13% 2,611 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - Q 10.000000 12.772030 27.72% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.772030 16.364824 29.13% 5,743 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - NQ 10.000000 12.772030 27.72% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.451705 14.792159 18.80% 4,808 1999
Fund, Inc. - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.451705 24.52% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.451705 14.792159 18.80% 126,089 1999
Fund, Inc. - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.451705 24.52% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.377494 13.588614 9.78% 433 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.377494 23.77% 0 1998
- - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.377494 13.588614 9.78% 7,169 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.377494 23.77% 0 1998
- - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.770666 -2.29% 0 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.770666 -2.29% 0 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II -
NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.797885 12.347825 4.66% 5,165 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.797885 17.98% 0 1998
Class - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.797885 12.347825 4.66% 11,769 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.797885 17.98% 0 1998
Class - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
88
<PAGE> 89
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 12.901477 17.446540 35.23% 6,024 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 12.901477 29.01% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 12.901477 17.446540 35.23% 37,910 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 12.901477 29.01% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.519957 11.198884 6.45% 4,504 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - Q 10.000000 10.519957 5.20% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.519957 11.198884 6.45% 353 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - NQ 10.000000 10.519957 5.20% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 12.175055 17.085125 40.33% 4,121 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 12.175055 21.75% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 12.175055 17.085125 40.33% 4,531 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 12.175055 21.75% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.784276 15.633362 22.29% 6,557 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class -Q 10.000000 12.784276 27.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.784276 15.633362 22.29% 41,072 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class -NQ 10.000000 12.784276 27.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.297109 12.619265 2.62% 1,253 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.297109 22.97% 0 1998
Class - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.297109 12.619265 2.62% 9,790 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.297109 22.97% 0 1998
Class - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.427070 17.764281 2.71% 668 1999
Appreciation Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.427070 24.27% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
89
<PAGE> 90
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.427070 17.764281 2.71% 16,685 1999
Appreciation Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.427070 24.27% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 9.843122 9.467860 -3.81% 0 1999
Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 9.843122 -1.57% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 9.843122 9.467860 -3.81% 2,080 1999
Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 9.843122 -1.57% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.085474 10.415808 3.28% 8,140 1999
- - Q* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.085474 0.85% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.085474 10.415808 3.28% 35,979 1999
- - NQ* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.085474 0.85% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.981226 12.620906 5.34% 0 1999
- - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.981226 19.81% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.981226 12.620906 5.34% 1,493 1999
- - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.981226 19.81% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.666693 10.597955 -0.64% 1,074 1999
Balanced Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.666693 6.67% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.666693 10.597955 -0.64% 4,597 1999
Balanced Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.666693 6.67% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.834345 13.812331 16.71% 0 1999
Income Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.834345 18.34% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.834345 13.812331 16.71% 0 1999
Income Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.834345 18.34% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 12.199950 14.771891 21.08% 0 1999
50 Fund - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.199950 22.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 12.199950 14.771891 21.08% 2,843 1999
50 Fund - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.199950 22.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.87%
90
<PAGE> 91
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.329379 10.499020 1.64% 0 1999
Income Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.329379 3.29% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.329379 10.499020 1.64% 845 1999
Income Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.329379 3.29% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 95 1999
Index Fund - Q1 ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.241505 22.42% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.241505 14.580726 19.11% 828 1999
Index Fund - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.241505 22.42% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.235484 10.238786 0.03% 0 1999
Sector Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.235484 2.35% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.235484 10.238786 0.03% 510 1999
Sector Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.235484 2.35% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.297724 102.98% 0 1999
Cap Growth Fund - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.297724 102.98% 15,068 1999
Cap Growth Fund - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.951308 16.308373 25.92% 86 1999
Cap Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.951308 29.51% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.951308 16.308373 25.92% 11,596 1999
Cap Value Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.951308 29.51% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
91
<PAGE> 92
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.110854 17.180698 41.86% 468 1999
Company Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.110854 21.11% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.110854 17.180698 41.86% 904 1999
Company Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.110854 21.11% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.655972 23.032196 81.99% 518 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
Q 10.000000 12.655972 26.56% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.655972 23.032196 81.99% 14,458 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 12.655972 26.56% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 13.015559 12.426696 -4.52% 0 1999
Strategic Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 13.015559 30.16% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 13.015559 12.426696 -4.52% 0 1999
Strategic Value Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 13.015559 30.16% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.874049 14.574691 13.21% 0 1999
Guardian Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.874049 28.74% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.874049 14.574691 13.21% 4,594 1999
Guardian Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.874049 28.74% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 14.063808 21.318413 51.58% 277 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 14.063808 40.64% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 14.063808 21.318413 51.58% 2,169 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 14.063808 40.64% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.846069 12.528364 5.76% 14 1999
Partners Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.846069 18.46% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
92
<PAGE> 93
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.846069 12.528364 5.76% 3,651 1999
Partners Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.846069 18.46% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.178533 23.834283 80.86% 824 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 13.178533 31.79% 0 1998
Growth Fund/VA - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.178533 23.834283 80.86% 21,397 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 13.178533 31.79% 0 1998
Growth Fund/VA - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.231670 18.462618 39.53% 927 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 13.231670 32.23% 0 1998
Appreciation Fund/VA - ------------------- ------------------ ------------------ -------------------- -------------
Q(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.231670 18.462618 39.53% 9,849 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 13.231670 32.23% 0 1998
Appreciation Fund/VA - ------------------- ------------------ ------------------ -------------------- -------------
NQ(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.328212 14.779520 19.88% 4,133 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.328212 23.28% 0 1998
Growth & Income Fund/VA ------------------- ------------------ ------------------ -------------------- -------------
- - Q(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.328212 14.779520 19.88% 8,982 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.328212 23.28% 0 1998
Growth & Income Fund/VA ------------------- ------------------ ------------------ -------------------- -------------
- - NQ(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
93
<PAGE> 94
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.383996 14.507420 27.44% 0 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.383996 13.84% 0 1998
Debt Portfolio - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.383996 14.507420 27.44% 0 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.383996 13.84% 0 1998
Debt Portfolio - NQ1 ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.621572 24.900624 97.29% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.621572 26.22% 0 1998
Markets Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.621572 24.900624 97.29% 338 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.621572 26.22% 0 1998
Markets Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 9.908503 11.809742 19.19% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 9.908503 -0.91% 0 1998
Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 9.908503 11.809742 19.19% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 9.908503 -0.91% 0 1998
Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.400818 9.899304 -4.82% 0 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.400818 4.01% 0 1998
Estate Securities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.400818 9.899304 -4.82% 85 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.400818 4.01% 0 1998
Estate Securities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
94
<PAGE> 95
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING UNIT VALUE AT ACCUMULATION UNIT ACCUMULATION
OF PERIOD END OF PERIOD VALUE UNITS AT END OF
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.826101 20.656350 61.05% 0 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - Q(1) 10.000000 12.826101 28.26% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.826101 20.656350 61.05% 0 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - NQ(1) 10.000000 12.826101 28.26% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.540306 17.441358 51.13% 0 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 11.540306 15.40% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.540306 17.441358 51.13% 1,102 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 11.540306 15.40% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.884096 12.436688 4.65% 0 1999
Value Portfolio - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.884096 18.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.884096 12.436688 4.65% 0 1999
Value Portfolio - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.884096 18.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund, the
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
95
<PAGE> 96
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.55%)
(VARIABLE ACCOUNT CHARGES OF 1.55% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.501318 14.525483 16.19% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.501318 25.01% 0 1998
VP Income & Growth - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.501318 14.525483 16.19% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.501318 25.01% 0 1998
VP Income & Growth - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.048368 19.458849 61.51% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.048368 20.48% 0 1998
VP International - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.048368 19.458849 61.51% 175 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.048368 20.48% 0 1998
VP International - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 11.267010 10.998104 -2.39% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 11.267010 12.67% 0 1998
VP Value - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 11.267010 10.998104 -2.39% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 11.267010 12.67% 0 1998
VP Value - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.878387 28.78% 0 1999
Portfolios - European ------------------- ------------------ ------------------ -------------------- -------------
Equity Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.878387 28.78% 0 1999
Portfolios - European ------------------- ------------------ ------------------ -------------------- -------------
Equity Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
96
<PAGE> 97
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.770419 16.354471 28.07% 0 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - Q 10.000000 12.770419 27.70% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.770419 16.354471 28.07% 0 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - NQ 10.000000 12.770419 27.70% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.450128 14.782794 18.74% 0 1999
Fund, Inc. - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.450128 24.50% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.450128 14.782794 18.74% 762 1999
Fund, Inc. - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.450128 24.50% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.375935 13.580004 9.73% 0 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.375935 23.76% 0 1998
- - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.375935 13.580004 9.73% 337 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.375935 23.76% 0 1998
- - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.767363 -2.33% 0 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.767363 -2.33% 0 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II -
NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.796399 12.339995 4.61% 0 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.796399 17.96% 0 1998
Class - Q ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.796399 12.339995 4.61% 3,242 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.796399 17.96% 0 1998
Class - NQ ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
97
<PAGE> 98
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 12.899854 17.435504 35.16% 0 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 12.899854 29.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 12.899854 17.435504 35.16% 276 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 12.899854 29.00% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.518622 11.191773 6.40% 0 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - Q 10.000000 10.518622 5.19% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.518622 11.191773 6.40% 718 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - NQ 10.000000 10.518622 5.19% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 12.173522 17.074312 40.26% 0 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 12.173522 21.74% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 12.173522 17.074312 40.26% 190 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 12.173522 21.74% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.782661 15.623458 22.22% 3,468 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class -Q 10.000000 12.782661 27.83% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.782661 15.623458 22.22% 873 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class -NQ 10.000000 12.782661 27.83% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.295562 12.611273 2.57% 3,871 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.295562 22.96% 0 1998
Class - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.295562 12.611273 2.57% 0 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.295562 22.96% 0 1998
Class - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.425504 12.756184 2.66% 3,775 1999
Appreciation Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.425504 24.26% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
98
<PAGE> 99
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.425504 12.756184 2.66% 1,555 1999
Appreciation Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.425504 24.26% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 9.841878 9.461864 -3.86% 0 1999
Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 9.841878 -1.58% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 9.841878 9.461864 -3.86% 0 1999
Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 9.841878 -1.58% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999
- - Q* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.084183 0.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.084183 10.409189 3.22% 0 1999
- - NQ* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.084183 0.84% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.979709 12.612898 5.29% 3,921 1999
- - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.979709 19.80% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.979709 12.612898 5.29% 0 1999
- - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.979709 19.80% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999
Balanced Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.665345 6.65% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.665345 10.591234 -0.69% 0 1999
Balanced Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.665345 6.65% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999
Income Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.832846 18.33% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.832846 13.803577 16.65% 0 1999
Income Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.832846 18.33% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 12.198407 14.762540 21.02% 2,000 1999
50 Fund - Q1 ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.198407 21.98% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 12.198407 14.762540 21.02% 0 1999
50 Fund - NQ1 ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.198407 21.98% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.82%.
99
<PAGE> 100
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.328064 10.492359 1.59% 0 1999
Income Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.328064 3.28% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.328064 10.492359 1.59% 0 1999
Income Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.328064 3.28% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 0 1999
Index Fund - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.239965 22.40% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.239965 14.571500 19.05% 0 1999
Index Fund - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.239965 22.40% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999
Sector Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.234182 2.34% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.234182 10.232296 -0.02% 0 1999
Sector Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.234182 2.34% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999
Cap Growth Fund - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.290923 102.91% 0 1999
Cap Growth Fund - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999
Cap Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.949678 29.50% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.949678 16.298055 25.86% 0 1999
Cap Value Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.949678 29.50% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999
Company Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.109325 21.09% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
100
<PAGE> 101
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.109325 17.169820 41.79% 0 1999
Company Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.109325 21.09% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.654379 23.017640 81.89% 0 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.654379 26.54% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.654379 23.017640 81.89% 0 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 12.654379 26.54% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 13.013916 12.418826 -4.57% 0 1999
Strategic Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 13.013916 30.14% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 13.013916 12.418826 -4.57% 0 1999
Strategic Value Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 13.013916 30.14% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.872425 14.565469 13.15% 0 1999
Guardian Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.872425 28.72% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.872425 14.565469 13.15% 1,377 1999
Guardian Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.872425 28.72% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 14.062035 21.304943 51.51% 0 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 14.062035 40.62% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 14.062035 21.304943 51.51% 235 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 14.062035 40.62% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.844579 12.520433 5.71% 0 1999
Partners Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.844579 18.45% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
101
<PAGE> 102
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.844579 12.520433 5.71% 0 1999
Partners Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.844579 18.45% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.176875 23.819210 80.77% 0 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 13.176875 31.77% 0 1998
Growth Fund/VA - Q(1)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.176875 23.819210 80.77% 144 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 13.176875 31.77% 0 1998
Growth Fund/VA - NQ(1)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 13.230001 32.30% 0 1998
Appreciation Fund/VA -
Q(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.230001 18.450922 39.46% 0 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 13.230001 32.30% 0 1998
Appreciation Fund/VA -
NQ(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.326652 14.770155 19.82% 3,469 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.326652 23.27% 0 1998
Growth & Income Fund/VA
- - Q(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.326652 14.770155 19.82% 0 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.326652 23.27% 0 1998
Growth & Income Fund/VA
- - NQ(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
102
<PAGE> 103
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.382564 14.498248 27.37% 0 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.382564 13.83% 0 1998
Debt Portfolio - Q(1)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.382564 14.498248 27.37% 0 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.382564 13.83% 0 1998
Debt Portfolio - NQ(1)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.619986 26.20% 0 1998
Markets Fund - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.619986 24.884920 97.19% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.619986 26.20% 0 1998
Markets Fund - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 9.907247 -0.93% 0 1998
Fund - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 9.907247 11.802251 19.13% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 9.907247 -0.93% 0 1998
Fund - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.399504 9.893020 -4.87% 0 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.399504 4.00% 0 1998
Estate Securities
Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.399504 9.893020 -4.87% 0 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.399504 4.00% 0 1998
Estate Securities
Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
103
<PAGE> 104
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.824482 20.643272 60.97% 0 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - Q(1) 10.000000 12.824482 28.24% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.824482 20.643272 60.97% 0 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - NQ(1) 10.000000 12.824482 28.24% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.538849 17.430313 51.06% 0 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 11.538849 15.39% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.538849 17.430313 51.06% 0 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 11.538849 15.39% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.882597 12.428801 4.60% 0 1999
Value Portfolio - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.882597 18.83% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.882597 12.428801 4.60% 366 1999
Value Portfolio - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.882597 18.83% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
104
<PAGE> 105
<TABLE>
<CAPTION>
OPTIONAL BENEFITS ELECTED (TOTAL 1.65%)
(VARIABLE ACCOUNT CHARGES OF 1.65% OF THE DAILY NET ASSETS OF THE VARIABLE ACCOUNT)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.498159 14.507084 16.07% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.498159 24.98% 0 1998
VP Income & Growth - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.498159 14.507084 16.07% 3,086 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.498159 24.98% 0 1998
VP Income & Growth - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.045328 19.434239 61.34% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.045328 20.45% 0 1998
VP International - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 12.045328 19.434239 61.34% 445 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 12.045328 20.45% 0 1998
VP International - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 11.264161 10.984159 -2.49% 145 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 11.264161 12.64% 0 1998
VP Value - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 11.264161 10.984159 -2.49% 0 1999
Variable Portfolios, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - American Century 10.000000 11.264161 12.64% 0 1998
VP Value - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.874994 28.75% 0 1999
Portfolios - European
Equity Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.874994 28.75% 0 1999
Portfolios - European
Equity Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
105
<PAGE> 106
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.767196 16.333747 27.94% 6,411 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - Q 10.000000 12.767196 27.67% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 12.767196 16.333747 27.94% 437 1999
Responsible Growth ------------------- ------------------ ------------------ -------------------- -------------
Fund, Inc. - NQ 10.000000 12.767196 27.67% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.446981 14.764046 18.62% 473 1999
Fund, Inc. - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.446981 24.47% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 12.446981 14.764046 18.62% 3,075 1999
Fund, Inc. - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.446981 24.47% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.372807 13.562791 9.62% 0 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.372807 23.73% 0 1998
- - Q1
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 12.372807 13.562791 9.62% 158 1999
Investment Fund ------------------- ------------------ ------------------ -------------------- -------------
- -Appreciation Portfolio 10.000000 12.372807 23.73% 0 1998
- - NQ1
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.760781 -2.39% 0 1999
Series - Federated ------------------- ------------------ ------------------ -------------------- -------------
Quality Bond Fund II - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.760781 -2.39% 594 1999
Series - Federated
Quality Bond Fund II -
NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.793413 12.324339 4.50% 3,415 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.793413 17.93% 0 1998
Class - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 11.793413 12.324339 4.50% 2,428 1999
Equity-Income ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 11.793413 17.93% 0 1998
Class - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
106
<PAGE> 107
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 12.896602 17.413426 35.02% 15,705 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 12.896602 28.97% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 12.896602 17.413426 35.02% 27,331 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 12.896602 28.97% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.515966 11.177582 6.29% 0 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - Q 10.0000000 10.515966 5.16% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.515966 11.177582 6.29% 356 1999
Income Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - NQ 10.0000000 10.515966 5.16% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 12.170445 17.052691 40.12% 0 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - Q 10.000000 12.170445 21.70% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 12.170445 17.052691 40.12% 260 1999
Portfolio: Service ------------------- ------------------ ------------------ -------------------- -------------
Class - NQ 10.000000 12.170445 21.70% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.779434 15.603664 22.10% 456 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - Q 10.000000 12.779434 27.79% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 12.779434 15.603664 22.10% 9,997 1999
Contrafund(R)Portfolio: ------------------- ------------------ ------------------ -------------------- -------------
Service Class - NQ 10.000000 12.779434 27.79% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.292450 12.595275 2.46% 0 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.292450 22.92% 0 1998
Class - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 12.292450 12.595275 2.46% 0 1999
Opportunities ------------------- ------------------ ------------------ -------------------- -------------
Portfolio: Service 10.000000 12.292450 22.92% 0 1998
Class - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.422359 12.740010 2.56% 8,062 1999
Appreciation Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.422359 24.22% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
107
<PAGE> 108
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 12.422359 12.740010 2.56% 10,918 1999
Appreciation Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.422359 24.22% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 9.839387 9.449856 -3.96% 1,188 1999
Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 9.839387 -1.61% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 9.839387 9.449856 -3.96% 0 1999
Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 9.839387 -1.61% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.081601 10.395950 3.12% 0 1999
- - Q* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.081601 0.82% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market Fund 10.081601 10.395950 3.12% 7,486 1999
- - NQ* ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.081601 0.82% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.976682 12.596911 5.18% 0 1999
- - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.976682 19.77% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return Fund 11.976682 12.596911 5.18% 0 1999
- - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.976682 19.77% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.662651 10.577794 -0.80% 1,116 1999
Balanced Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.662651 6.63% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.662651 10.577794 -0.80% 0 1999
Balanced Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.662651 6.63% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.829858 13.786084 16.54% 0 1999
Income Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.829858 18.30% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 11.829858 13.786084 16.54% 0 1999
Income Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.829858 18.30% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999
50 Fund - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.195325 21.95% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 12.195325 14.743816 20.90% 0 1999
50 Fund - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.195325 21.95% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.72%.
108
<PAGE> 109
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999
Income Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.325454 3.25% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.325454 10.479056 1.49% 0 1999
Income Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.325454 3.25% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 120 1999
Index Fund - Q(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.236869 22.37% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 12.236869 14.553031 18.93% 0 1999
Index Fund - NQ(1) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.236869 22.37% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999
Sector Bond Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.231592 2.32% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.231592 10.219313 -0.12% 0 1999
Sector Bond Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 10.231592 2.32% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.277316 102.77% 0 1999
Cap Growth Fund - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.277316 102.77% 0 1999
Cap Growth Fund - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999
Cap Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.946409 29.46% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.946409 16.277398 25.73% 0 1999
Cap Value Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.946409 29.46% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.106268 21.06% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
(2) Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
109
<PAGE> 110
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 12.106268 17.148084 41.65% 0 1999
Company Fund - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.106268 21.06% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.651185 22.988509 81.71% 0 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
Q 10.000000 12.651185 26.51% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 12.651185 22.988509 81.71% 0 1999
Strategic Growth Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 12.651185 26.51% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 13.010627 12.403079 -4.67% 0 1999
Strategic Value Fund - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 13.010627 30.11% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 13.010627 12.403079 -4.67% 0 1999
Strategic Value Fund - ------------------- ------------------ ------------------ -------------------- -------------
NQ 10.000000 13.010627 30.11% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.869170 14.547000 13.04% 0 1999
Guardian Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.869170 28.69% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 12.869170 14.547000 13.04% 156 1999
Guardian Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 12.869170 28.69% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 14.058496 40.58% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 14.058496 21.277954 51.35% 0 1999
Mid-Cap Growth ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 14.058496 40.58% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.841583 12.504542 5.60% 0 1999
Partners Portfolio - Q ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.841583 18.42% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
110
<PAGE> 111
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 11.841583 12.504542 5.60% 571 1999
Partners Portfolio - NQ ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.841583 18.42% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.173548 23.789077 80.58% 2,285 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 13.173548 31.74% 0 1998
Growth Fund/VA - Q(1)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.173548 23.789077 80.58% 205 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Aggressive 10.000000 13.173548 31.74% 0 1998
Growth Fund/VA - NQ(1)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.226671 18.427568 39.32% 0 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 13.226671 32.27% 0 1998
Appreciation Fund/VA -
Q(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 13.226671 18.427568 39.32% 922 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Capital 10.000000 13.226671 32.27% 0 1998
Appreciation Fund/VA -
NQ(2)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.323541 14.751442 19.70% 17,693 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.323541 23.24% 0 1998
Growth & Income Fund/VA
- - Q(3)
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 12.323541 14.751442 19.70% 816 1999
Account Funds - ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Main Street 10.000000 12.323541 23.24% 0 1998
Growth & Income Fund/VA
- - NQ3
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
(2) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
(3) Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
111
<PAGE> 112
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.379681 14.479873 24.24% 388 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.379681 13.80% 0 1998
Debt Portfolio - Q1
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 11.379681 14.479873 24.24% 0 1999
Institutional Funds, ------------------- ------------------ ------------------ -------------------- -------------
Inc. - Emerging Markets 10.000000 11.379681 13.80% 0 1998
Debt Portfolio - NQ1
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.616797 26.17% 0 1998
Markets Fund - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 12.616797 24.853443 96.99% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Emerging 10.000000 12.616797 26.17% 0 1998
Markets Fund - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 9.904737 -0.95% 0 1998
Fund - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 9.904737 11.787279 19.01% 0 1999
Insurance Trust - ------------------- ------------------ ------------------ -------------------- -------------
Worldwide Hard Assets 10.000000 9.904737 -0.95% 0 1998
Fund - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.396873 9.880471 -4.97% 0 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.396873 3.97% 0 1998
Estate Securities
Portfolio - Q
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.396873 9.880471 -4.97% 0 1999
Investment Trust - ------------------- ------------------ ------------------ -------------------- -------------
Morgan Stanley Real 10.000000 10.396873 3.97% 0 1998
Estate Securities
Portfolio - NQ
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging
Markets Debt Portfolio.
112
<PAGE> 113
<TABLE>
<CAPTION>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - NQ(1) 10.000000 12.821248 28.21% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 12.821248 20.617144 60.80% 0 1999
Global Post-Venture ------------------- ------------------ ------------------ -------------------- -------------
Capital Portfolio - NQ(1) 10.000000 12.821248 28.21% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - Q 10.000000 11.535935 15.36% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.535935 17.408242 50.90% 0 1999
International Equity ------------------- ------------------ ------------------ -------------------- -------------
Portfolio - NQ 10.000000 11.535935 15.36% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.879593 12.413046 4.49% 0 1999
Value Portfolio - Q(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.879593 18.80% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 11.879593 12.413046 4.49% 0 1999
Value Portfolio - NQ(2) ------------------- ------------------ ------------------ -------------------- -------------
10.000000 11.879593 18.80% 0 1998
- ------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
(1) Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
(2) Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc. -
Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
113
<PAGE> 114
OPTIONAL BENEFITS ELECTED (TOTAL 1.70%)
(VARIABLE ACCOUNT CHARGES OF 1.70% OF THE DAILY NET
ASSETS OF THE VARIABLE ACCOUNT)
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
American Century 10.000000 10.894734 8.95% 0 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 10.000000 10.894734 8.95% 68 1999
Variable Portfolios,
Inc. - American Century
VP Income & Growth - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 10.000000 15.314929 53.15% 0 1999
Variable Portfolios,
Inc. - American Century
VP International - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 10.000000 15.314929 53.15% 48 1999
Variable Portfolios,
Inc. - American Century
VP International - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 10.000000 8.780117 -12.20% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
American Century 10.000000 8.780117 -12.20% 0 1999
Variable Portfolios,
Inc. - American Century
VP Value - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.873298 28.73% 0 1999
Portfolios - European
Equity Portfolio - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Investment 10.000000 12.873298 28.73% 0 1999
Portfolios - European
Equity Portfolio - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
114
<PAGE> 115
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
The Dreyfus Socially 10.000000 11.868131 18.68% 0 1999
Responsible Growth
Fund, Inc. - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Dreyfus Socially 10.000000 11.868131 18.68% 0 1999
Responsible Growth
Fund, Inc. - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 10.000000 10.794215 7.94% 2,481 1999
Fund, Inc. - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Stock Index 10.000000 10.794215 7.94% 364 1999
Fund, Inc. - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 10.000000 10.184154 1.84% 0 1999
Investment Fund
-Appreciation
Portfolio - Q1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Dreyfus Variable 10.000000 10.184154 1.84% 0 1999
Investment Fund -
Appreciation
Portfolio - NQ1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.757496 -2.43% 0 1999
Series - Federated
Quality Bond Fund II - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Federated Insurance 10.000000 9.757496 -2.43% 0 1999
Series - Federated
Quality Bond
Fund II - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 10.000000 9.309967 -6.90% 0 1999
Equity-Income
Portfolio: Service
Class - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP 10.000000 9.309967 -6.90% 413 1999
Equity-Income
Portfolio: Service
Class - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
1 Formerly, Dreyfus Variable Investment Fund - Capital Appreciation Portfolio.
115
<PAGE> 116
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
Fidelity VIP Growth 10.000000 12.322268 23.22% 4,617 1999
Portfolio: Service
Class - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Growth 10.000000 12.322268 23.22% 324 1999
Portfolio: Service
Class - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999
Income Portfolio:
Service Class - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP High 10.000000 9.672582 -3.27% 0 1999
Income Portfolio:
Service Class - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 10.000000 13.058898 30.59% 0 1999
Portfolio: Service
Class - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP Overseas 10.000000 13.058898 30.59% 254 1999
Portfolio: Service
Class - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 10.000000 11.278366 12.78% 2,481 1999
Contrafund(R)Portfolio:
Service Class -Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP II 10.000000 11.278366 12.78% 354 1999
Contrafund(R)Portfolio:
Service Class -NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 10.000000 9.869824 -1.30% 0 1999
Opportunities
Portfolio: Service
Class - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Fidelity VIP III Growth 10.000000 9.869824 -1.30% 68 1999
Opportunities
Portfolio: Service
Class - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Capital 10.000000 9.707627 -2.92% 0 1999
Appreciation Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
116
<PAGE> 117
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
NSAT Capital 10.000000 9.707627 -2.92% 68 1999
Appreciation Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999
Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Government Bond 10.000000 9.735132 -2.65% 0 1999
Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market 10.000000 10.209430 2.09% 0 1999
Fund - Q*
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Money Market 10.000000 10.209430 2.09% 0 1999
Fund - NQ*
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return 10.000000 9.851989 -1.48% 0 1999
Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Total Return 10.000000 9.851989 -1.48% 0 1999
Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.000000 9.481422 -5.19% 0 1999
Balanced Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.000000 9.481422 -5.19% 0 1999
Balanced Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 10.000000 10.778958 7.79% 0 1999
Income Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Equity 10.000000 10.778958 7.79% 0 1999
Income Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 10.000000 11.182210 11.82% 0 1999
50 Fund - Q1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Global 10.000000 11.182210 11.82% 0 1999
50 Fund - NQ1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
1 Formerly, NSAT Nationwide Global Equity Fund.
* The 7 day yield for the NSAT Money Market Fund as of December 31, 1999 was
3.67%
117
<PAGE> 118
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999
Income Bond Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide High 10.000000 9.676620 -3.23% 0 1999
Income Bond Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0 1999
Index Fund - Q1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Mid Cap 10.000000 11.447800 14.48% 0 1999
Index Fund - NQ1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999
Sector Bond Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Multi 10.000000 9.897603 -1.02% 0 1999
Sector Bond Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.270503 102.71% 0 1999
Cap Growth Fund - Q2
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 20.270503 102.71% 0 1999
Cap Growth Fund - NQ2
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 11.697140 16.97% 0 1999
Cap Value Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 11.697140 16.97% 0 1999
Cap Value Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide Small 10.000000 14.124755 41.25% 0 1999
Company Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
1 Formerly, NSAT Nationwide Select Advisers Mid Cap Fund.
2 Formerly, NSAT Nationwide Select Advisers Small Cap Growth Fund.
118
<PAGE> 119
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
NSAT Nationwide Small 10.000000 14.124755 41.25% 237 1999
Company Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.000000 14.658438 46.58% 0 1999
Strategic Growth
Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.000000 14.658438 46.58% 0 1999
Strategic Growth
Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.000000 8.548175 -14.52% 0 1999
Strategic Value Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
NSAT Nationwide 10.000000 8.548175 -14.52% 0 1999
Strategic Value
Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 10.000000 9.968645 -0.31% 0 1999
Guardian Portfolio - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 10.000000 9.968645 -0.31% 0 1999
Guardian Portfolio - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 10.000000 15.264119 52.64% 0 1999
Mid-Cap Growth
Portfolio - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 10.000000 15.264119 52.64% 0 1999
Mid-Cap Growth
Portfolio - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Neuberger Berman AMT 10.000000 9.504551 -4.95% 0 1999
Partners Portfolio - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
119
<PAGE> 120
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
Neuberger Berman AMT 10.000000 9.504551 -4.95% 0 1999
Partners Portfolio - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 10.000000 16.070617 60.71% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - Q1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 10.000000 16.070617 60.71% 0 1999
Account Funds -
Oppenheimer Aggressive
Growth Fund/VA - NQ1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 10.000000 12.759449 27.59% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation
Fund/VA - Q2
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 10.000000 12.759449 27.59% 0 1999
Account Funds -
Oppenheimer Capital
Appreciation
Fund/VA - NQ2
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 10.000000 10.784586 7.85% 2,487 1999
Account Funds -
Oppenheimer Main Street
Growth & Income
Fund/VA - Q3
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Oppenheimer Variable 10.000000 10.784586 7.85% 0 1999
Account Funds -
Oppenheimer Main Street
Growth & Income
Fund/VA - NQ3
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
1 Formerly, Oppenheimer Variable Account Funds - Oppenheimer Capital
Appreciation Fund.
2 Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth Fund.
3 Formerly, Oppenheimer Variable Account Funds - Oppenheimer Growth & Income
Fund.
120
<PAGE> 121
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
The Universal 10.000000 11.210825 12.11% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - Q1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
The Universal 10.000000 11.210825 12.11% 0 1999
Institutional Funds,
Inc. - Emerging Markets
Debt Portfolio - NQ1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 10.000000 15.596564 55.97% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 10.000000 15.596564 55.97% 0 1999
Insurance Trust -
Worldwide Emerging
Markets Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 10.000000 9.987144 -0.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Eck Worldwide 10.000000 9.987144 -0.13% 0 1999
Insurance Trust -
Worldwide Hard Assets
Fund - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.000000 9.012565 -9.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Van Kampen Life 10.000000 9.012565 -9.87% 0 1999
Investment Trust -
Morgan Stanley Real
Estate Securities
Portfolio - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
1 Formerly, Morgan Stanley Dean Witter Universal Funds, Inc. - Emerging Markets
Debt Portfolio.
121
<PAGE> 122
<TABLE>
<CAPTION>
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENT CHANGE NUMBER OF YEAR
VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE AT END OF PERIOD
PERIOD
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
<S> <C> <C> <C> <C> <C>
Warburg Pincus Trust - 10.000000 15.621586 56.22% 0 1999
Global Post-Venture
Capital Portfolio - Q1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.000000 15.621586 56.22% 0 1999
Global Post-Venture
Capital Portfolio - NQ1
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.000000 14.650223 46.50% 0 1999
International Equity
Portfolio - Q
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.000000 14.650223 46.50% 0 1999
International Equity
Portfolio - NQ
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.000000 9.340613 -6.59% 0 1999
Value Portfolio - Q2
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
Warburg Pincus Trust - 10.000000 9.340613 -6.59% 0 1999
Value Portfolio - NQ2
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
------------------------- ------------------- ------------------ ------------------ -------------------- -------------
</TABLE>
1 Formerly, Warburg Pincus Trust - Post-Venture Capital Portfolio.
2 Formerly, Warburg Pincus Trust - Growth & Income Portfolio.
The Federated Insurance Series - Federated Quality Bond Fund II and the NSAT
Nationwide Small Cap Growth Fund were added to the variable account effective
May 1, 1999. Therefore, the Condensed Financial Information reflects the period
from May 1, 1999 to December 31, 1999.
The Dreyfus Investment Portfolios - European Equity Portfolio was added to the
variable account on September 27, 1999. Therefore the Condensed Financial
Information reflects the period from September 27, 1999 to December 31, 1999.
The Janus Aspen Series - Capital Appreciation Portfolio: Service Shares, Janus
Aspen Series - Global Technology Portfolio: Service Shares, and Janus Aspen
Series - International Growth Portfolio: Service Shares were added to the
variable account effective January 27, 2000. Therefore, no Condensed Financial
Information is available.
The Oppenheimer Variable Account Funds - Oppenheimer Global Securities Fund,
Strong Opportunity Fund II, Inc., and The Universal Institutional Funds, Inc.
- - Mid Cap Growth Portfolio were added to the variable account effective May 1,
2000. Therefore, no Condensed Financial Information is available.
122
