<PAGE> 1
Nationwide(R) VLI
Separate Account-4
June 30, 1999
[LOGO]
THE BEST OF AMERICA(R)
AMERICA'S FUTURE Life Series(SM)
'99
SEMI-ANNUAL REPORT
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[LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
<PAGE> 2
[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PICTURE]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to
present the 1999 semi-annual report of the Nationwide VLI Separate
Account-4.
Equity investments performed well during the first half of 1999 with
the major market indices showing double-digit gains. Fixed income
investments did not fare as well during this period in the face of
the Federal Reserve's inflation cautiousness. The Fed is mindful of
the resilient U.S. economy and the increasingly tight labor pool
that portends future wage inflation. Accordingly, we have seen a
ratcheting-up of short-term interest rates to dampen the momentum of
the current expansion. How aggressively the Fed may react to the
perceived inflation threat only adds uncertainty to the already
jittery equity markets. Over the long term, however, a slower but
sustainable rate of growth, with low inflation, provides a favorable
environment for further advances in financial assets.
At mid-year, we are pleased to report that all the mission-critical
systems used to service our variable annuity and variable life
business have been internally inventoried, assessed and tested as
being Year 2000 compliant. We are currently contacting our critical
business partners to determine if they will be Year 2000 compliant.
Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure
that Nationwide Financial will be able to continue to serve your
financial needs into the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve
your financial planning and retirement savings goals. You have our
commitment to provide the consistent, high quality service you
expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
3
<PAGE> 3
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NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
520,712 shares (cost $3,554,218) .......................................... $ 3,874,095
American Century VP - American Century VP International (ACVPInt)
644,056 shares (cost $4,835,822) .......................................... 5,268,380
American Century VP - American Century VP Value (ACVPValue)
177,163 shares (cost $1,142,641) .......................................... 1,202,937
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
101,072 shares (cost $3,155,207) .......................................... 3,542,585
Dreyfus Stock Index Fund (DryStkIx)
1,200,647 shares (cost $38,972,793) ....................................... 43,355,380
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
210,986 shares (cost $7,650,372) .......................................... 8,190,474
Federated Insurance Series - Quality Bond Fund II (FedQualBd)
188 shares (cost $1,850) .................................................. 1,850
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEI)
398,533 shares (cost $9,723,107) .......................................... 10,844,072
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGr)
288,164 shares (cost $12,277,925) ......................................... 13,154,671
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHI)
509,025 shares (cost $5,714,722) .......................................... 5,731,621
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOv)
242,432 shares (cost $4,751,617) .......................................... 5,035,308
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPCon)
455,601 shares (cost $10,685,825) ......................................... 11,872,955
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOp)
263,754 shares (cost $5,729,313) .......................................... 6,229,872
Morgan Stanley - Emerging Markets Debt Portfolio (VKMSEmMkt)
66,760 shares (cost $432,687) ............................................. 459,978
Nationwide SAT - Balanced Fund (NSATBal)
159,044 shares (cost $1,678,747) .......................................... 1,752,663
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
439,467 shares (cost $11,358,151) ......................................... 13,043,389
Nationwide SAT - Equity Income Fund (NSATEqInc)
34,038 shares (cost $386,338) ............................................. 428,195
Nationwide SAT - Global Equity Fund (NSATGlobEq)
281,157 shares (cost $3,469,353) .......................................... 3,565,066
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,156,650 shares (cost $13,446,364) ....................................... 12,873,517
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
143,439 shares (cost $1,439,602) .......................................... 1,421,480
Nationwide SAT - Money Market Fund (NSATMyMkt)
58,467,087 shares (cost $58,467,087) ...................................... 58,467,087
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
360,760 shares (cost $3,497,568) ............................. 3,398,362
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
36,819 shares (cost $376,161) ................................ 444,403
Nationwide SAT - Small Cap Growth Fund (NSATSmCapGr)
100,000 shares (cost $1,000,000) ............................. 1,127,000
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
246,103 shares (cost $2,256,823) ............................. 2,729,282
Nationwide SAT - Small Company Fund (NSATSmCo)
211,727 shares (cost $3,206,176) ............................. 3,648,049
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
81,213 shares (cost $991,686) ................................ 1,192,204
Nationwide SAT - Strategic Value Fund (NSATStrVal)
63,232 shares (cost $603,624) ................................ 681,008
Nationwide SAT - Total Return Fund (NSATTotRe)
757,107 shares (cost $13,868,437) ............................ 15,361,710
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
144,737 shares (cost $2,030,219) ............................. 2,340,398
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
186,346 shares (cost $2,783,694) ............................. 3,093,351
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
309,987 shares (cost $5,651,554) ............................. 6,422,938
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
51,889 shares (cost $2,302,528) .............................. 2,814,975
Oppenheimer VAF - Growth Fund (OppGro)
128,469 shares (cost $4,569,137) ............................. 5,235,112
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
132,181 shares (cost $2,658,871) ............................. 3,066,610
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
98,754 shares (cost $811,801) ................................ 1,026,053
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
27,851 shares (cost $276,115) ................................ 298,280
Van Kampen LIT -
Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
96,203 shares (cost $1,256,816) .............................. 1,336,265
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
58,123 shares (cost $661,722) ................................ 768,964
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
106,803 shares (cost $1,171,016) ............................. 1,254,934
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
28,395 shares (cost $333,205) ................................ 377,086
------------
Total investments ......................................... 266,932,559
Accounts receivable ................................................ --
------------
Total assets .............................................. 266,932,559
ACCOUNTS PAYABLE ...................................................... 95,090
------------
CONTRACT OWNERS' EQUITY (NOTE 7) ...................................... $266,837,469
============
</TABLE>
See accompanying notes to financial statements.
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5
<PAGE> 5
- --------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Total ACVPIncGr ACVPint
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ 2,559,662 83,937 345 - -
Mortality and expense charges (note 3)........ (453,669) (14,192) (5,238) (16) (8,418)
-------------- -------------- -------------- -------------- -------------
Net investment income....................... 2,105,993 69,745 (4,893) (16) (8,418)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold......... 44,164,640 2,519,975 314,418 273 159,686
Cost of mutual fund shares sold............... (43,669,232) (2,517,456) (259,983) (269) (166,796)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments......... 495,408 2,519 54,435 4 (7,110)
Change in unrealized gain (loss) on investments 11,542,778 76,508 194,869 207 272,790
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.............. 12,038,186 79,027 249,304 211 265,680
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains...................... 1,619,138 12,598 - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 15,763,317 161,370 244,411 195 257,262
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 156,401,203 18,500,157 512,140 1,661 664,116
Transfers between funds....................... - (1,152) 2,084,556 9,171 2,059,973
Surrenders.................................... (322,152) - (3,296) - (268)
Death benefits ............................... (44,682) - - - (962)
Policy loans (net of repayments) (note 5) .... (2,087,373) (23,672) (89,687) - (962)
Deductions for surrender charges (note 2d) ... (73,956) - (757) - (61)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (10,788,592) (441,186) (108,639) (678) (189,529)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................... 143,084,448 18,034,147 2,394,317 10,154 2,532,307
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 158,847,765 18,195,517 2,638,728 10,349 2,789,569
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... 107,989,704 - 1,235,436 - 2,478,773
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... $ 266,837,469 18,195,517 3,874,164 10,349 5,268,342
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACVPint ACVPValue
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... 355 9,053 168
Mortality and expense charges (note 3)........ (165) (2,388) (51)
-------------- -------------- --------------
Net investment income....................... 190 6,665 117
-------------- -------------- --------------
Proceeds from mutual fund shares sold......... 64,097 295,226 534
Cost of mutual fund shares sold............... (61,854) (284,769) (545)
-------------- -------------- --------------
Realized gain (loss) on investments......... 2,243 10,457 (11)
Change in unrealized gain (loss) on investments 8,220 32,019 (2,244)
-------------- -------------- --------------
Net gain (loss) on investments.............. 10,463 42,476 (2,255)
-------------- -------------- --------------
Reinvested capital gains...................... 3,645 85,768 1,997
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 14,298 134,909 (141)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 132,213 176,091 32,868
Transfers between funds....................... 83,098 322,081 33,857
Surrenders.................................... - (304) -
Death benefits ............................... - - -
Policy loans (net of repayments) (note 5) .... - (3,899) -
Deductions for surrender charges (note 2d) ... - (70) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (2,933) (52,837) (1,189)
-------------- -------------- --------------
Net equity transactions................... 212,378 441,062 65,536
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 226,676 575,971 65,395
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... - 626,960 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 226,676 1,202,931 65,395
============== ============== ==============
</TABLE>
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DrySRGro DryStkix DryCapAp
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ - - 189,209 4,686 266
Mortality and expense charges (note 3)........ (5,944) (131) (62,893) (522) (10,913)
-------------- -------------- -------------- -------------- -------------
Net investment income....................... (5,944) (131) 126,316 4,164 (10,647)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold......... 120,939 1,346 291,895 265 176,810
Cost of mutual fund shares sold............... (108,188) (1,257) (262,192) (248) (156,849)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. ...... 12,751 89 29,703 17 19,961
Change in unrealized gain (loss) on investments 279,024 6,892 2,927,568 16,966 389,360
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.............. 291,775 6,981 2,957,271 16,983 409,321
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains...................... - - 117,757 2,002 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 285,831 6,850 3,201,344 23,149 398,674
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 832,645 87,657 6,615,300 206,258 1,038,097
Transfers between funds....................... 1,226,600 70,981 20,648,078 568,680 5,451,223
Surrenders.................................... (1,662) - (45,916) - (422)
Death benefits ............................... - - (5,779) - -
Policy loans (net of repayments) (note 5) .... (3,215) - (49,573) - (13,901)
Deductions for surrender charges (note 2d) ... (381) - (10,541) - (97)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (169,150) (3,968) (1,371,572) (16,990) (230,341)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................... 1,884,837 154,670 25,779,997 757,948 6,244,559
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 2,170,668 161,520 28,981,341 781,097 6,643,233
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... 1,371,928 - 14,374,570 - 1,548,425
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... $ 3,542,596 161,520 43,355,911 781,097 8,191,658
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
DryCapAp FedQualBd
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... - - -
Mortality and expense charges (note 3)........ (64) - -
-------------- -------------- --------------
Net investment income....................... (64) - -
-------------- -------------- --------------
Proceeds from mutual fund shares sold......... 320 - -
Cost of mutual fund shares sold............... (307) - -
-------------- -------------- --------------
Realized gain (loss) on investments.. ...... 13 - -
Change in unrealized gain (loss) on investments 1,699 - -
-------------- -------------- --------------
Net gain (loss) on investments.............. 1,712 - -
-------------- -------------- --------------
Reinvested capital gains...................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 1,648 - -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 36,429 - -
Transfers between funds....................... 27,018 1,849 -
Surrenders.................................... - - -
Death benefits ............................... - - -
Policy loans (net of repayments) (note 5) .... - - -
Deductions for surrender charges (note 2d) ... - - -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (2,171) - -
-------------- -------------- --------------
Net equity transactions................... 61,276 1,849 -
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 62,924 1,849 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... - - -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 62,924 1,849 -
============== ============== ==============
(Continued)
</TABLE>
7
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPEI FidVIPGr FidVIPHI
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ 97,065 - 8,639 - 364,862
Mortality and expense charges (note 3)........ (19,550) (329) (19,033) (172) (8,272)
-------------- -------------- -------------- -------------- -------------
Net investment income....................... 77,515 (329) (10,394) (172) 356,590
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold......... 538,948 598 549,969 148 363,495
Cost of mutual fund shares sold............... (515,249) (584) (491,307) (140) (409,632)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. ...... 23,699 14 58,662 8 (46,137)
Change in unrealized gain (loss) on investments 671,783 645 396,062 7,596 (20,396)
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.............. 695,482 659 454,724 7,604 (66,533)
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains...................... 214,564 - 543,154 - 13,640
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 987,561 330 987,484 7,432 303,697
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 1,566,458 133,058 2,261,598 57,519 705,210
Transfers between funds....................... 3,062,490 416,247 6,908,299 187,661 1,419,320
Surrenders.................................... (42,023) - (16,552) - (8,278)
Death benefits ............................... - - - - (3,510)
Policy loans (net of repayments) (note 5) .... (16,338) - (31,688) - (3,888)
Deductions for surrender charges (note 2d) ... (9,647) - (3,800) - (1,901)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (473,507) (12,521) (520,436) (6,160) (203,503)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................... 4,087,433 536,784 8,597,421 239,020 1,903,450
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 5,074,994 537,114 9,584,905 246,452 2,207,147
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... 5,769,362 - 3,567,895 - 3,524,476
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... $ 10,844,356 537,114 13,152,800 246,452 5,731,623
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FidVIPHI FidVIPOv
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... - 21,110 -
Mortality and expense charges (note 3)........ (247) (7,043) (96)
-------------- -------------- --------------
Net investment income....................... (247) 14,067 (96)
-------------- -------------- --------------
Proceeds from mutual fund shares sold......... 203 1,996,357 743
Cost of mutual fund shares sold............... (198) (1,902,122) (725)
-------------- -------------- --------------
Realized gain (loss) on investments.. ...... 5 94,235 18
Change in unrealized gain (loss) on investments 4 215,378 (696)
-------------- -------------- --------------
Net gain (loss) on investments.............. 9 309,613 (678)
-------------- -------------- --------------
Reinvested capital gains...................... - 34,048 -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........ (238) 357,728 (774)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 199,669 263,487 29,968
Transfers between funds....................... 153,686 3,449,111 70,326
Surrenders.................................... - (134) -
Death benefits ............................... - - -
Policy loans (net of repayments) (note 5) .... - (3,333) -
Deductions for surrender charges (note 2d) ... - (31) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (7,813) (105,852) (3,532)
-------------- -------------- --------------
Net equity transactions................... 345,542 3,603,248 96,762
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 345,304 3,960,976 95,988
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... - 1,074,715 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 345,304 5,035,691 95,988
============== ============== ==============
</TABLE>
8
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPCon FidVIPGrOp VKMSEmMkt
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ 26,713 - 28,246 - -
Mortality and expense charges (note 3)........ (18,455) (257) (10,058) (105) (499)
-------------- -------------- -------------- -------------- -------------
Net investment income....................... 8,258 (257) 18,188 (105) (499)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold......... 387,570 931 148,702 386 41,666
Cost of mutual fund shares sold............... (340,408) (902) (138,969) (377) (39,559)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments......... 47,162 29 9,733 9 2,107
Change in unrealized gain (loss) on investments 538,717 16,287 237,759 2,047 34,614
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.............. 585,879 16,316 247,492 2,056 36,721
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains...................... 195,897 - 55,207 - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 790,034 16,059 320,887 1,951 36,222
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 2,006,414 124,447 1,032,001 41,926 37,535
Transfers between funds....................... 4,828,912 352,366 2,700,468 102,131 240,333
Surrenders.................................... (13,617) - (11,730) - (12)
Death benefits ............................... (3,073) - (5,534) - -
Policy loans (net of repayments) (note 5) .... (9,438) - (3,328) - (298)
Deductions for surrender charges (note 2d) ... (3,126) - (2,693) - (3)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (467,740) (8,898) (219,814) (3,512) (11,298)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................... 6,338,332 467,915 3,489,370 140,545 266,257
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 7,128,366 483,974 3,810,257 142,496 302,479
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... 4,744,546 - 2,419,614 - 157,510
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... $ 11,872,912 483,974 6,229,871 142,496 459,989
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
VKMSEmMkt NSATBal
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... - 25,497 629
Mortality and expense charges (note 3)........ (13) (3,045) (54)
-------------- -------------- --------------
Net investment income....................... (13) 22,452 575
-------------- -------------- --------------
Proceeds from mutual fund shares sold......... 669 100,061 203
Cost of mutual fund shares sold............... (670) (95,076) (202)
-------------- -------------- --------------
Realized gain (loss) on investments......... (1) 4,985 1
Change in unrealized gain (loss) on investments (791) 51,109 (151)
-------------- -------------- --------------
Net gain (loss) on investments.............. (792) 56,094 (150)
-------------- -------------- --------------
Reinvested capital gains...................... - 24 -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........ (805) 78,570 425
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 9,498 283,243 42,101
Transfers between funds....................... 5,908 736,828 33,676
Surrenders.................................... - (2,842) -
Death benefits ............................... - - -
Policy loans (net of repayments) (note 5) .... - (1,766) -
Deductions for surrender charges (note 2d) ... - (652) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (406) (72,021) (896)
-------------- -------------- --------------
Net equity transactions................... 15,000 942,790 74,881
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 14,195 1,021,360 75,306
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... - 731,439 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 14,195 1,752,799 75,306
============== ============== ==============
(Continued)
</TABLE>
9
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATCapAp NSATEqinc NSATGlobEq
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ....................... $ 29,197 718 831 5 8,358
Mortality and expense charges (note 3)...... (23,198) (242) (762) (1) (2,234)
-------------- -------------- -------------- -------------- -------------
Net investment income..................... 5,999 476 69 4 6,124
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold....... 245,412 258 40,779 - 30,576
Cost of mutual fund shares sold............. (238,207) (245) (36,588) - (29,256)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments....... 7,205 13 4,191 - 1,320
Change in unrealized gain (loss) on investments 1,215,972 9,642 26,837 52 57,525
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............ 1,223,177 9,655 31,028 52 58,845
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains.................... - - 202 - 1,868
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations...... 1,229,176 10,131 31,299 56 66,837
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners........................... 2,213,028 116,824 41,817 258 202,445
Transfers between funds..................... 4,024,027 255,494 128,384 2,605 2,858,333
Surrenders.................................. (39,415) - (28) - (3,121)
Death benefits ............................. (1,334) - - - (6,264)
Policy loans (net of repayments) (note 5) .. (41,758) - - - (441)
Deductions for surrender charges (note 2d) . (9,049) - (7) - (717)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)......................... (644,801) (12,442) (17,230) (142) (45,932)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................. 5,500,698 359,876 152,936 2,721 3,004,303
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY......... 6,729,874 370,007 184,235 2,777 3,071,140
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .. 6,313,574 - 244,014 - 493,998
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD......... $ 13,043,448 370,007 428,249 2,777 3,565,138
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATGlobEq NSATGvtBd
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ....................... 163 327,163 3,794
Mortality and expense charges (note 3)...... (23) (20,769) (148)
-------------- -------------- --------------
Net investment income..................... 140 306,394 3,646
-------------- -------------- --------------
Proceeds from mutual fund shares sold....... 345 569,121 702
Cost of mutual fund shares sold............. (343) (590,441) (708)
-------------- -------------- --------------
Realized gain (loss) on investments....... 2 (21,320) (6)
Change in unrealized gain (loss) on investments (82) (488,411) (566)
-------------- -------------- --------------
Net gain (loss) on investments............ (80) (509,731) (572)
-------------- -------------- --------------
Reinvested capital gains.................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations...... 60 (203,337) 3,074
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners........................... 9,873 992,725 136,989
Transfers between funds..................... 17,116 7,668,165 56,866
Surrenders.................................. - (3,001) -
Death benefits ............................. - - -
Policy loans (net of repayments) (note 5) .. - (1,175) -
Deductions for surrender charges (note 2d) . - (689) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)......................... (982) (276,820) (2,105)
-------------- -------------- --------------
Net equity transactions................. 26,007 8,379,205 191,750
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY......... 26,067 8,175,868 194,824
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .. - 4,697,908 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD......... 26,067 12,873,776 194,824
============== ============== ==============
</TABLE>
10
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATHIncBd NSATMyMkt NSATMSecBd
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ....................... $ 51,377 818 1,106,181 68,985 76,442
Mortality and expense charges (note 3)...... (2,260) (35) (127,883) (9,850) (3,062)
-------------- -------------- -------------- -------------- -------------
Net investment income..................... 49,117 783 978,298 59,135 73,380
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold....... 233,450 400 32,946,620 2,437,959 155,959
Cost of mutual fund shares sold............. (232,403) (401) (32,946,620) (2,437,959) (155,603)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments....... 1,047 (1) - - 356
Change in unrealized gain (loss) on investments (26,063) (435) - - (99,986)
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............ (25,016) (436) - - (99,630)
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains.................... 647 - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations...... 24,748 347 978,298 59,135 (26,250)
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners........................... 193,498 21,117 124,540,161 16,224,265 238,893
Transfers between funds..................... 277,035 14,484 (87,612,063) (4,830,482) 2,330,900
Surrenders.................................. (247) - (23,560) - (133)
Death benefits ............................. - - - - (2,397)
Policy loans (net of repayments) (note 5) .. (287) - (1,549,078) (23,672) (3,443)
Deductions for surrender charges (note 2d) . (57) - (5,408) - (31)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)......................... (44,247) (543) (3,127,264) (299,120) (61,726)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................. 425,695 35,058 32,222,788 11,070,991 2,502,063
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY......... 450,443 35,405 33,201,086 11,130,126 2,475,813
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .. 971,017 - 25,135,081 - 922,533
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD......... $ 1,421,460 35,405 58,336,167 11,130,126 3,398,346
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATMSecBd NSATMidCap
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ....................... 1,830 805 56
Mortality and expense charges (note 3)...... (93) (890) (10)
-------------- -------------- --------------
Net investment income..................... 1,737 (85) 46
-------------- -------------- --------------
Proceeds from mutual fund shares sold....... - 44,295 128
Cost of mutual fund shares sold............. - (41,898) (127)
-------------- -------------- --------------
Realized gain (loss) on investments....... - 2,397 1
Change in unrealized gain (loss) on investments (1,585) 38,426 314
-------------- -------------- --------------
Net gain (loss) on investments............ (1,585) 40,823 315
-------------- -------------- --------------
Reinvested capital gains.................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations...... 152 40,738 361
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners........................... 89,421 23,407 3,481
Transfers between funds..................... 27,886 96,171 20,118
Surrenders.................................. - (10) -
Death benefits ............................. - - -
Policy loans (net of repayments) (note 5) .. - - -
Deductions for surrender charges (note 2d) . - (2) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)......................... (1,343) (14,645) (517)
-------------- -------------- --------------
Net equity transactions................. 115,964 104,921 23,082
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY......... 116,116 145,659 23,443
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .. - 298,717 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD......... 116,116 444,376 23,443
============== ============== ==============
(Continued)
</TABLE>
11
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSmCapGr NSATSmCapV NSATSmCo
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ - - - - -
Mortality and expense charges (note 3).......... - - (3,995) (29) (6,145)
-------------- -------------- -------------- -------------- -------------
Net investment income......................... - - (3,995) (29) (6,145)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold........... - - 274,983 110 387,985
Cost of mutual fund shares sold................. - - (242,633) (109) (392,254)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. ........ - - 32,350 1 (4,269)
Change in unrealized gain (loss) on investments 127,000 - 353,856 (900) 308,899
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments................ 127,000 - 386,206 (899) 304,630
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains........................ - - 79,340 - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations.......... 127,000 - 461,551 (928) 298,485
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................... 1,000,000 - 241,558 9,892 497,006
Transfers between funds......................... - - 1,087,965 36,023 1,372,683
Surrenders...................................... - - (129) - (466)
Death benefits ................................. - - (2,704) - -
Policy loans (net of repayments) (note 5) ...... - - (1,138) - (7,498)
Deductions for surrender charges (note 2d) ..... - - (30) - (107)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................. - - (89,863) (948) (122,428)
-------------- -------------- -------------- -------------- -------------
Net equity transactions..................... 1,000,000 - 1,235,659 44,967 1,739,190
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 1,127,000 - 1,697,210 44,039 2,037,675
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... - - 1,032,337 - 1,610,449
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............. $ 1,127,000 - 2,729,547 44,039 3,648,124
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NSATSmCo NSATStrGro
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... - - -
Mortality and expense charges (note 3).......... (176) (1,488) (69)
-------------- -------------- --------------
Net investment income......................... (176) (1,488) (69)
-------------- -------------- --------------
Proceeds from mutual fund shares sold........... 249 144,582 495
Cost of mutual fund shares sold................. (235) (125,833) (495)
-------------- -------------- --------------
Realized gain (loss) on investments.. ........ 14 18,749 -
Change in unrealized gain (loss) on investments (2,085) 151,672 3,699
-------------- -------------- --------------
Net gain (loss) on investments................ (2,071) 170,421 3,699
-------------- -------------- --------------
Reinvested capital gains........................ - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations.......... (2,247) 168,933 3,630
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................... 114,502 147,071 47,047
Transfers between funds......................... 111,643 494,262 21,161
Surrenders...................................... - (3,472) -
Death benefits ................................. - - -
Policy loans (net of repayments) (note 5) ...... - (3,430) -
Deductions for surrender charges (note 2d) ..... - (797) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................. (5,726) (38,416) (1,536)
-------------- -------------- --------------
Net equity transactions..................... 220,419 595,218 66,672
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 218,172 764,151 70,302
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... - 428,087 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............. 218,172 1,192,238 70,302
============== ============== ==============
</TABLE>
12
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATStrVal NSATTotRe NBAMTGuard
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ 2,489 56 47,876 1,463 3,977
Mortality and expense charges (note 3)........ (1,139) (17) (30,762) (375) (3,262)
-------------- -------------- -------------- -------------- -------------
Net investment income....................... 1,350 39 17,114 1,088 715
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold......... 88,539 176 463,542 1,425 83,618
Cost of mutual fund shares sold............... (82,284) (177) (455,690) (1,322) (74,291)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments......... 6,255 (1) 7,852 103 9,327
Change in unrealized gain (loss) on investments 33,504 (1,210) 1,209,437 1,711 227,293
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.............. 39,759 (1,211) 1,217,289 1,814 236,620
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains...................... 7,914 - 4,930 - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 49,023 (1,172) 1,239,333 2,902 237,335
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 51,478 6,006 3,269,865 200,078 77,167
Transfers between funds....................... 250,989 27,850 3,783,209 389,047 897,236
Surrenders.................................... (45) - (50,099) - (3,199)
Death benefits ............................... - - (1,369) - -
Policy loans (net of repayments) (note 5) .... - - (205,862) - 231
Deductions for surrender charges (note 2d) ... (10) - (11,501) - (734)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (16,293) (611) (921,645) (17,284) (63,461)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................... 286,119 33,245 5,862,598 571,841 907,240
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 335,142 32,073 7,101,931 574,743 1,144,575
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... 345,974 - 8,293,822 - 1,195,874
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... $ 681,116 32,073 15,395,753 574,743 2,340,449
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGuard NBAMTMCGr
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... - - -
Mortality and expense charges (note 3)........ (5) (5,011) (73)
-------------- -------------- --------------
Net investment income....................... (5) (5,011) (73)
-------------- -------------- --------------
Proceeds from mutual fund shares sold......... 32 401,621 660
Cost of mutual fund shares sold............... (33) (366,395) (649)
-------------- -------------- --------------
Realized gain (loss) on investments......... (1) 35,226 11
Change in unrealized gain (loss) on investments 587 133,372 3,348
-------------- -------------- --------------
Net gain (loss) on investments.............. 586 168,598 3,359
-------------- -------------- --------------
Reinvested capital gains...................... - 37,807 -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 581 201,394 3,286
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 490 772,982 19,431
Transfers between funds....................... 18,476 1,494,164 96,198
Surrenders.................................... - (224) -
Death benefits ............................... - - -
Policy loans (net of repayments) (note 5) .... - (463) -
Deductions for surrender charges (note 2d) ... - (51) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................... (285) (115,531) (2,423)
-------------- -------------- --------------
Net equity transactions................... 18,681 2,150,877 113,206
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........... 19,262 2,352,271 116,492
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .... - 741,146 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD........... 19,262 3,093,417 116,492
============== ============== ==============
(Continued)
</TABLE>
13
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTPart OppAggGro OppGro
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 56,853 114 0 26 10,044
Mortality and expense charges (note 3)......... (11,609) (373) (4,407) (77) (8,685)
-------------- -------------- -------------- -------------- -------------
Net investment income........................ 45,244 (259) (4,407) (51) 1,359
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 481,298 449 126,521 778 136,905
Cost of mutual fund shares sold................ (483,682) (481) (115,253) (750) (136,273)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... (2,384) (32) 11,268 28 632
Change in unrealized gain (loss) on investments 516,251 (16,383) 357,043 3,606 410,878
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... 513,867 (16,415) 368,311 3,634 411,510
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... 98,874 3,599 - 270 110,334
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 657,985 (13,075) 363,904 3,853 523,203
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 1,021,328 156,876 672,775 49,498 965,480
Transfers between funds........................ 857,854 442,815 772,326 20,016 1,951,079
Surrenders..................................... (30,095) - (890) - (3,088)
Death benefits ................................ (7,201) - (2,625) - -
Policy loans (net of repayments) (note 5) ..... (3,883) - (9,863) - (16,133)
Deductions for surrender charges (note 2d) .... (6,909) - (204) - (709)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................ (224,485) (10,126) (124,017) (2,435) (230,253)
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................... 1,606,609 589,565 1,307,502 67,079 2,666,376
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 2,264,594 576,490 1,671,406 70,932 3,189,579
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 4,158,315 - 1,143,530 - 2,045,491
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 6,422,909 576,490 2,814,936 70,932 5,235,070
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
OppGro OppGrinc
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 8 10,187 29
Mortality and expense charges (note 3)......... (104) (5,332) (101)
-------------- -------------- --------------
Net investment income........................ (96) 4,855 (72)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.......... 71 412,216 118
Cost of mutual fund shares sold................ (74) (449,292) (113)
-------------- -------------- --------------
Realized gain (loss) on investments.......... (3) (37,076) 5
Change in unrealized gain (loss) on investments 10,744 327,414 9,654
-------------- -------------- --------------
Net gain (loss) on investments............... 10,741 290,338 9,659
-------------- -------------- --------------
Reinvested capital gains....................... 101 17,163 645
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 10,746 312,356 10,232
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 42,315 486,840 44,812
Transfers between funds........................ 209,071 782,275 447,343
Surrenders..................................... - (9,788) -
Death benefits ................................ - (1,930) -
Policy loans (net of repayments) (note 5) ..... - (8,491) -
Deductions for surrender charges (note 2d) .... - (2,247) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................ (3,534) (120,038) (1,405)
-------------- -------------- --------------
Net equity transactions.................... 247,852 1,126,621 490,750
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 258,598 1,438,977 500,982
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - 1,627,582 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ 258,598 3,066,559 500,982
============== ============== ==============
</TABLE>
14
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
VEWrldEMkt VEWrldHAs VKMSRESec
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ...................... $ - - 2,469 - 54,408
Mortality and expense charges (note 3)..... (1,336) (17) (800) (4) (2,339)
-------------- -------------- -------------- -------------- -------------
Net investment income.................... (1,336) (17) 1,669 (4) 52,069
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold...... 262,457 - 167,248 - 333,476
Cost of mutual fund shares sold............ (202,004) - (152,099) - (329,440)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments...... 60,453 - 15,149 - 4,036
Change in unrealized gain (loss) on investments 195,905 (4,808) 24,267 (222) 52,143
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments........... 256,358 (4,808) 39,416 (222) 56,179
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains................... - - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations..... 255,022 (4,825) 41,085 (226) 108,248
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.......................... 90,324 8,374 35,368 1,094 212,115
Transfers between funds.................... 425,791 33,368 82,837 2,125 456,135
Surrenders................................. (136) - (101) - (3,191)
Death benefits ............................ - - - - -
Policy loans (net of repayments) (note 5) . (264) - - - (762)
Deductions for surrender charges (note 2d) (31) - (23) - (732)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................ (33,929) (764) (14,830) (272) (152,576)
-------------- -------------- -------------- -------------- -------------
Net equity transactions................ 481,755 40,978 103,251 2,947 510,989
-------------- -------------- -------------- -------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........ 736,777 36,153 144,336 2,721 619,237
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD . 289,195 - 154,245 - 717,117
-------------- -------------- -------------- -------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD........ $ 1,025,972 36,153 298,581 2,721 1,336,354
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
VKMSRESec WPGrinc
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ...................... 34 - -
Mortality and expense charges (note 3)..... (67) (1,633) (13)
-------------- -------------- --------------
Net investment income.................... (33) (1,633) (13)
-------------- -------------- --------------
Proceeds from mutual fund shares sold...... 3,901 302,385 45
Cost of mutual fund shares sold............ (3,954) (315,649) (44)
-------------- -------------- --------------
Realized gain (loss) on investments...... (53) (13,264) 1
Change in unrealized gain (loss) on investments (1,417) 101,373 7,761
-------------- -------------- --------------
Net gain (loss) on investments........... (1,470) 88,109 7,762
-------------- -------------- --------------
Reinvested capital gains................... 339 - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations..... (1,164) 86,476 7,749
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.......................... 52,502 187,821 2,432
Transfers between funds.................... 44,871 (195,661) 311,397
Surrenders................................. - (180) -
Death benefits ............................ - - -
Policy loans (net of repayments) (note 5) . - - -
Deductions for surrender charges (note 2d) - (41) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)........................ (1,904) (29,377) (566)
-------------- -------------- --------------
Net equity transactions................ 95,469 (37,438) 313,263
-------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY........ 94,305 49,038 321,012
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD . - 719,928 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD........ 94,305 768,966 321,012
============== ============== ==============
(Continued)
</TABLE>
15
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
WPintEq WPPVenCap
------------------------------ ------------------------------
1999 1998 1999 1998
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ - - - -
Mortality and expense charges (note 3).......... (2,164) (54) (755) (14)
-------------- -------------- -------------- --------------
Net investment income......................... (2,164) (54) (755) (14)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold........... 244,373 766 100,937 192
Cost of mutual fund shares sold................. (226,385) (757) (77,660) (202)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments........... 17,988 9 23,277 (10)
Change in unrealized gain (loss) on investments 53,595 (2,929) 13,920 1,331
-------------- -------------- -------------- --------------
Net gain (loss) on investments................ 71,583 (2,920) 37,197 1,321
-------------- -------------- -------------- --------------
Reinvested capital gains........................ - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations.......... 69,419 (2,974) 36,442 1,307
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................... 160,783 6,576 70,933 732
Transfers between funds......................... 475,685 79,382 100,098 29,169
Surrenders...................................... (259) - (219) -
Death benefits ................................. - - - -
Policy loans (net of repayments) (note 5) ...... (1,648) - (673) -
Deductions for surrender charges (note 2d) ..... (60) - (50) -
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c)............................. (47,012) (2,168) (15,534) (338)
-------------- -------------- -------------- --------------
Net equity transactions..................... 587,489 83,790 154,555 29,563
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 656,908 80,816 190,997 30,870
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ...... 598,023 - 186,098 -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............. $ 1,254,931 80,816 377,095 30,870
============== ============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
16
<PAGE> 16
- --------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLI Separate Account-4 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on December 3, 1997. The Account has
been registered as a unit investment trust under the Investment Company
Act of 1940.
The Company offers Flexible Premium Variable Life Insurance Policies
through the Account.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase.
See note 2 for a discussion of policy charges, and note 3 for asset
charges.
Contract owners may invest in the following:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP);
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Federated Insurance Series - Quality Bond Fund II (FedQualBd)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio - Service Class
(FidVIPEI)
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGr)
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHI)
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOv)
Portfolio of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Contrafund Portfolio - Service Class
(FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio - Service
Class (FidVIPGrOp)
Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan
Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (VKMSEmMkt)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Balanced Fund (NSATBal)
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Equity Income Fund (NSATEqInc)
Nationwide SAT - Global Equity Fund (NSATGlobEq)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
17
<PAGE> 17
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
Nationwide SAT - Small Cap Growth Fund (NSATSmCapGr)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
Nationwide SAT - Strategic Value Fund (NSATStrVal)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger &Berman AMT);
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen Life Investment Trust (Van
Kampen LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio
(VKMSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio
(WPPVenCap)
At June 30, 1999, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2). The accompanying financial
statements include only contract owners' purchase payments pertaining
to the variable portions of their contracts and exclude any purchase
payments for fixed dollar benefits, the latter being included in the
accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are 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.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
18
<PAGE> 18
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(2) POLICY CHARGES
(a) Deductions from Premium
On flexible premium life insurance contracts, the Company deducts a
charge for state premium taxes not to exceed 2.5% of all premiums
received to cover the payment of these premium taxes. Additionally, the
Company deducts a front-end sales load of up to 3.5% from each premium
payment received. The Company may at its sole discretion reduce this
sales loading.
(b) Cost of Insurance
A cost of insurance charge is assessed monthly against each contract.
The amount of the charge is based upon age, sex, rate class and net
amount at risk (death benefit less total contract value).
(c) Administrative Charges
For flexible premium contracts, the Company currently deducts a monthly
administrative charge of $10 during the first policy year and $5 per
month thereafter (may deduct up to $7.50, maximum) to recover policy
maintenance, accounting, record keeping and other administrative
expenses.
The above charges are assessed against each contract by liquidating
units.
(d) Surrender Charges
Policy surrenders result in a redemption of the contract value from the
Account and payment of the surrender proceeds to the contract owner or
designee. The surrender proceeds consist of the contract value, less
any outstanding policy loans, and less a surrender charge, if
applicable. The amount of the charge is based upon a specified
percentage of the initial surrender charge which varies by issue age,
sex and rate class. For flexible premium contracts, the charge is 100%
of the initial surrender charge in the first year, declining to 30% of
the initial surrender charge in the eighth year.
No surrender charge is assessed on any contract surrendered after the
eighth year.
The Company may waive the surrender charge for certain contracts in
which the sales expenses normally associated with the distribution of a
contract are not incurred. No charges were deducted from the initial
funding, or from earnings thereon.
(3) ASSET CHARGES
For America's FUTURE Life Series, the Company deducts a charge equal to an
annual effective rate multiplied by the Cash Value attributable to the
Variable Account. The annual effective rate is 0.60% for the first $25,000
of Cash Value attributable to the Variable Account, 0.30% for the next
$225,000 of Cash Value attributable to the Variable Account and 0.10% for
all Cash Value attributable to the Variable Account in excess of $250,000.
This charge is assessed monthly against each contract by liquidating units.
For Corporate Variable Universal Life Series, the Company deducts on a
daily basis from the assets of the Variable Account, a charge to provide
for mortality and expense risks. This charge is guaranteed not to exceed an
annual effective rate of 0.75% of the daily net assets of the Variable
Account. On a current basis this rate will be 0.40% during the first
through fourth Policy Years, 0.25% during the fifth through twentieth
Policy Years, and 0.10% thereafter. This charge is assessed through the
daily unit value calculation.
19
<PAGE> 19
(4) DEATH BENEFITS
Death benefits result in a redemption of the contract value from the
Account and payment of the death benefit proceeds, less any outstanding
policy loans and policy charges, to the legal beneficiary. The excess of
the death benefit proceeds over the contract value on the date of death is
paid by the Company's general account. There were no death benefits paid in
the current year.
(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow 90% of a policy's cash
surrender value. Interest is charged on the outstanding loan and is due and
payable in advance on the policy anniversary.
At the time the loan is granted, the amount of the loan is transferred from
the Account to the Company's general account as collateral for the
outstanding loan. Collateral amounts in the general account are credited
with the stated rate of interest in effect at the time the loan is made,
subject to a guaranteed minimum rate. Interest credited is paid by the
Company's general account to the Account. Loan repayments result in a
transfer of collateral including interest back to the Account.
(6) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
20
<PAGE> 20
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1999.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
The BEST of AMERICA(R) America's FUTURE Life Series(SM):
American Century VP - American
Century VP Income & Growth..................... 222,761 $ 13.924470 $ 3,101,828 10%
American Century VP - American
Century VP International....................... 391,411 12.748666 4,989,964 7%
American Century VP - American
Century VP Value............................... 86,763 11.859229 1,028,942 13%
The Dreyfus Socially Responsible
Growth Fund, Inc............................... 231,883 14.590723 3,383,341 13%
Dreyfus Stock Index Fund..........................2,241,543 14.377543 32,227,884 12%
Dreyfus VIF -
Capital Appreciation Portfolio................. 308,665 13.999620 4,321,193 8%
Federated Insurance Quality Bond Fund............. 187 9.889224 1,849 (1)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class.................................. 815,819 12.567727 10,252,990 13%
Fidelity VIP - Growth Portfolio -
Service Class.................................. 739,415 15.939560 11,785,956 14%
Fidelity VIP - High Income Portfolio -
Service Class.................................. 550,777 10.310987 5,679,054 8%
Fidelity VIP - Overseas Portfolio -
Service Class.................................. 208,112 12.172640 2,533,272 8%
Fidelity VIP-II - Contrafund Portfolio -
Service Class.................................. 776,953 14.446092 11,223,935 11%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class...................... 410,372 13.251757 5,438,150 6%
Morgan Stanley -
Emerging Markets Debt Portfolio................ 56,712 8.089723 458,784 13%
Nationwide SAT - Balanced Fund.................... 144,724 11.450736 1,657,196 6%
Nationwide SAT -
Capital Appreciation Fund...................... 877,342 14.546773 12,762,495 12%
Nationwide SAT - Equity Income Fund............... 33,099 12.669477 419,347 10%
Nationwide SAT - Global Equity Fund............... 72,943 12.943855 944,164 9%
Nationwide SAT - Government Bond Fund............. 370,021 10.653833 3,942,144 (2)%
Nationwide SAT - High Income Bond Fund............ 111,500 10.869909 1,211,995 3%
Nationwide SAT - Money Market Fund................2,998,912 10.769065 32,295,478 2%
Nationwide SAT - Multi Sector Bond Fund........... 128,027 10.148365 1,299,260 (1)%
Nationwide SAT -
Select Advisers Mid Cap Fund................... 36,209 12.272537 444,376 11%
Nationwide SAT - Small Cap Growth Fund............ 100,000 11.270000 1,127,000 13%(a)
Nationwide SAT - Small Cap Value Fund............. 224,171 11.987635 2,687,280 24%
Nationwide SAT - Small Company Fund............... 278,534 10.870654 3,027,847 8%
Nationwide SAT - Strategic Growth Fund............ 81,722 14.378067 1,175,004 25%
(Continued)
</TABLE>
21
<PAGE> 21
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Nationwide SAT - Strategic Value Fund............ 62,424 10.911118 681,116 9%
Nationwide SAT - Total Return Fund............... 1,174,786 13.076437 15,362,015 11%
Neuberger & Berman AMT -
Guardian Portfolio............................ 143,791 15.438418 2,219,906 17%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio...................... 171,832 14.642312 2,516,018 5%
Neuberger & Berman AMT -
Partners Portfolio............................ 496,471 11.804169 5,860,428 13%
Oppenheimer VAF -
Aggressive Growth Fund........................ 179,872 13.597015 2,445,723 21%
Oppenheimer VAF - Growth Fund.................... 352,668 14.361654 5,064,902 16%
Oppenheimer VAF -
Growth & Income Fund.......................... 220,137 12.003157 2,642,339 15%
Van Eck WIT -
Worldwide Emerging Markets Fund............... 104,166 9.612197 1,001,264 46%
Van Eck WIT -
Worldwide Hard Assets Fund.................... 36,447 8.162502 297,499 18%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio.............. 138,283 9.589236 1,326,028 9%
Warburg Pincus Trust -
Growth & Income Portfolio..................... 36,933 12.922177 477,255 15%
Warburg Pincus Trust -
International Equity Portfolio................ 108,833 11.263216 1,225,810 7%
Warburg Pincus Trust -
Post Venture Capital Portfolio................ 29,610 12.007240 355,534 13%
The BEST of AMERICA(R)
Corporate Variable Universal Life Series(SM):
American Century VP -
Income & Growth............................... 64,734 11.930918 772,336 10%
American Century VP - American
Century VP International...................... 26,600 10.465323 278,378 7%
American Century VP - American
Century VP Value.............................. 16,436 10.585835 173,989 13%
The Dreyfus Socially Responsible
Growth Fund, Inc.............................. 12,696 12.543738 159,255 13%
Dreyfus Stock Index Fund......................... 901,456 12.344504 11,128,027 12%
Dreyfus VIF -
Capital Appreciation Portfolio................ 327,171 11.830098 3,870,465 7%
Fidelity VIP - Equity-Income Portfolio -
Service Class................................. 53,083 11.140410 591,366 12%
Fidelity VIP - Growth Portfolio -
Service Class................................. 99,393 13.751919 1,366,844 14%
Fidelity VIP - High Income Portfolio -
Service Class................................. 5,423 9.693786 52,569 8%
Fidelity VIP - Overseas Portfolio -
Service Class................................. 244,020 10.254973 2,502,419 8%
Fidelity VIP-II - Contrafund Portfolio -
Service Class................................. 51,585 12.580736 648,977 11%
</TABLE>
22
<PAGE> 22
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class..................... 66,265 11.947796 791,721 6%
Morgan Stanley Emerging Markets
Debt Portfolio................................ 158 7.626214 1,205 13%
Nationwide SAT - Balanced Fund................... 9,032 10.584906 95,603 6%
Nationwide SAT -
Capital Appreciation Fund..................... 22,474 12.501259 280,953 12%
Nationwide SAT - Equity Income Fund.............. 766 11.620929 8,902 10%
Nationwide SAT - Global Equity Fund.............. 232,985 11.249540 2,620,974 8%
Nationwide SAT - Government Bond Fund............ 857,872 10.411381 8,931,632 (2)%
Nationwide SAT - High Income Bond Fund........... 20,327 10.304749 209,465 3%
Nationwide SAT - Money Market Fund............... 2,471,604 10.535947 26,040,689 2%
Nationwide SAT - Multi Sector Bond Fund.......... 212,826 9.862919 2,099,086 (1)%
Nationwide SAT -
Small Capital Value Fund...................... 3,991 10.590528 42,267 23%
Nationwide SAT - Small Company Fund.............. 63,764 9.727700 620,277 7%
Nationwide SAT - Strategic Growth Fund........... 1,308 13.175713 17,234 25%
Nationwide SAT - Total Return Fund............... 3,009 11.212270 33,738 11%
Neuberger & Berman AMT -
Guardian Portfolio............................ 11,030 10.928637 120,543 17%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio...................... 48,717 11.852112 577,399 5%
Neuberger & Berman AMT -
Partners Portfolio............................ 53,288 10.555488 562,481 13%
Oppenheimer VAF -
Aggressive Growth Fund........................ 31,562 11.698025 369,213 21%
Oppenheimer VAF - Growth Fund.................... 13,811 12.321204 170,168 16%
Oppenheimer VAF -
Growth & Income Fund.......................... 41,479 10.227355 424,220 14%
Van Eck Worldwide Emerging
Markets Fund.................................. 2,683 9.209003 24,708 46%
Van Eck WIT Worldwide Hard
Assets Fund................................... 134 8.074329 1,082 18%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio.............. 1,068 9.668428 10,326 8%
Warburg Pincus Trust -
Growth & Income Portfolio..................... 25,512 11.434266 291,711 15%
Warburg Pincus Trust International
Equity Portfolio.............................. 3,068 9.491713 29,121 7%
Warburg Pincus Trust -
Post Venture Capital Portfolio................ 2,114 10.199319 21,561 13%
======== ========= -------------
$ 266,837,469
=============
</TABLE>
(a) This investment option was not being utilized for the entire period.
Accordingly, the period return was computed for such period as the
investment option was utilized.
(b) The period return does not include contract charges satisfied by
surrending units.
- --------------------------------------------------------------------------------
23
<PAGE> 23
--------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
