<PAGE> 1
Nationwide(R) VLI
Separate Account-4
December 31, 1999
[The BEST of AMERICA(R) LOGO]
America's FUTURE Life Series(SM)
'99
ANNUAL REPORT
- --------------------------------------------------------------------------------
[LOGO-NATIONWIDE]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
VLOB-0161-C(12/99)
<PAGE> 2
[LOGO-NATIONWIDE]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTOGRAPH OF THE PRESIDENT]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 1999 annual
report of the Nationwide VLI Separate Account-4.
During 1999 equity investments extended their spirited advance to a fifth
consecutive year. The S&P 500 was the laggard of the major indices with a
year-over-year change of a respectable 19.53%. The NASDAQ topped the list at
over 85% with the other indices falling into line nearer the lower end of the
range. Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and the available
labor pool is incessantly tight. Against this good-news-bad-news backdrop, the
Federal Reserve is increasingly concerned that recent productivity gains will
subside and ignite wage inflation. To date, the Fed has hiked short-term
interest rates a quarter percentage point on four occasions since last June.
Prospectively, they may well become more aggressive in their preemptive efforts
to dampen economic growth and avoid a new round of inflation.
We believe some caution may be warranted at this juncture. Certain market
sectors are well extended and may inevitably retreat to less lofty valuation
levels. However, we remain bullish for the long-term prospects of financial
assets. Your variable insurance contract provides an excellent resource to help
you achieve your long-term retirement savings and financial planning objectives.
We appreciate your trust in our company and in our investment products, and we
welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
1,516,852 shares (cost $11,317,293) ....................................... $ 12,134,813
American Century VP - American Century VP International (ACVPInt)
1,236,421 shares (cost $11,263,761) ....................................... 15,455,257
American Century VP - American Century VP Value (ACVPValue)
333,310 shares (cost $2,096,957) .......................................... 1,983,194
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
217,560 shares (cost $7,489,924) .......................................... 8,500,087
Dreyfus Stock Index Fund (DryStkIx)
3,157,931 shares (cost $108,850,206) ...................................... 121,422,462
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
474,656 shares (cost $18,124,465) ......................................... 18,924,546
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
8,417 shares (cost $124,331) .............................................. 134,328
Federated Insurance Series - Quality Bond Fund II (FedQualBd)
1,135,643 shares (cost $11,089,105) ....................................... 11,129,306
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVIPEI)
625,133 shares (cost $15,869,177) ......................................... 16,040,900
Fidelity VIP - Growth Portfolio - Service Class (FidVIPGr)
774,261 shares (cost $35,854,940) ......................................... 42,429,507
Fidelity VIP - High Income Portfolio - Service Class (FidVIPHI)
807,088 shares (cost $8,963,595) .......................................... 9,103,953
Fidelity VIP - Overseas Portfolio - Service Class (FidVIPOv)
478,620 shares (cost $11,186,641) ......................................... 13,104,615
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVIPCon)
846,655 shares (cost $20,982,859) ......................................... 24,637,651
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVIPGrOp)
442,345 shares (cost $9,827,088) .......................................... 10,227,022
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
99,824 shares (cost $676,149) ............................................. 689,781
Nationwide SAT - Balanced Fund (NSATBal)
337,856 shares (cost $3,493,555) .......................................... 3,483,298
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
832,197 shares (cost $22,564,217) ......................................... 21,395,784
Nationwide SAT - Equity Income Fund (NSATEqInc)
68,117 shares (cost $822,495) ............................................. 921,629
Nationwide SAT - Global Equity Fund (NSATGlobEq)
1,102,541 shares (cost $14,278,718) ....................................... 15,314,299
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,818,889 shares (cost $20,152,759) ....................................... 19,625,811
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
856,951 shares (cost $8,305,829) .......................................... 8,158,176
Nationwide SAT - Money Market Fund (NSATMyMkt)
139,947,802 shares (cost $139,947,802) .................................... 139,947,802
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
1,404,286 shares (cost $13,282,437) ....................................... 13,158,162
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
70,400 shares (cost $786,210) ............................................. 867,329
Nationwide SAT - Small Cap Growth Fund (NSATSmCapGr)
137,674 shares (cost $1,690,098) .......................................... 2,710,803
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
450,152 shares (cost $4,451,470) .......................................... 4,375,475
Nationwide SAT - Small Company Fund (NSATSmCo)
592,603 shares (cost $10,263,865) ......................................... 13,108,386
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
534,092 shares (cost $9,544,415) .......................................... 10,916,848
Nationwide SAT - Strategic Value Fund (NSATStrVal)
100,106 shares (cost $968,230) ............................................ 941,995
Nationwide SAT - Total Return Fund (NSATTotRe)
1,267,636 shares (cost $23,594,301) ....................................... 23,844,238
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
186,660 shares (cost $2,798,624) .......................................... 2,958,557
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
501,384 shares (cost $8,967,458) .......................................... 12,183,627
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
379,080 shares (cost $6,993,954) .......................................... 7,445,126
Oppenheimer VAF - Aggressive Growth Fund (OppAggGro)
138,214 shares (cost $8,314,249) .......................................... 11,376,389
Oppenheimer VAF - Growth Fund (OppGro)
274,533 shares (cost $10,866,320) ......................................... 13,682,734
Oppenheimer VAF - Growth & Income Fund (OppGrInc)
280,701 shares (cost $6,119,593) .......................................... 6,913,670
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
188,431 shares (cost $2,005,261) .......................................... 2,687,020
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
40,565 shares (cost $424,254) ............................................. 444,596
Van Kampen LIT -
Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
126,609 shares (cost $1,668,890) .......................................... 1,566,147
Warburg Pincus Trust - Growth & Income Portfolio (WPGrInc)
96,784 shares (cost $1,147,125) ........................................... 1,150,757
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
136,868 shares (cost $1,673,971) .......................................... 2,285,689
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
47,333 shares (cost $673,398) ............................................. 911,634
-------------
Total investments ..................................................... 648,293,403
Accounts receivable ............................................................ 190
-------------
Total assets .......................................................... 648,293,593
ACCOUNTS PAYABLE .................................................................. -
-------------
CONTRACT OWNERS' EQUITY (NOTE 7) .................................................. $ 648,293,593
=============
</TABLE>
See accompanying notes to financial statements.
5
<PAGE> 5
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
- --------------------------------
STATEMENTS OF OPERATIONS
- --------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
TOTAL ACVPIncGr
----------------------------- --------------------------
1999 1998 1999 1998
------------- ------------ ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 6,784,764 795,996 345 5,125
Mortality and expense charges (note 3) ........ (382,102) (7,523) (4,870) (86)
------------- ------------ ----------- ----------
Net investment income ....................... 6,402,662 788,473 (4,525) 5,039
------------- ------------ ----------- ----------
Proceeds from mutual fund shares sold ......... 201,999,339 61,803,110 4,238,041 60,422
Cost of mutual fund shares sold ............... (195,191,587) (62,074,770) (3,971,748) (58,667)
------------- ------------ ----------- ----------
Realized gain (loss) on investments ......... 6,807,752 (271,660) 266,293 1,755
Change in unrealized gain (loss) on investments 42,568,531 6,208,890 692,513 125,007
------------- ------------ ----------- ----------
Net gain (loss) on investments .............. 49,376,283 5,937,230 958,806 126,762
------------- ------------ ----------- ----------
Reinvested capital gains ...................... 6,941,880 597,466 - -
------------- ------------ ----------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 62,720,825 7,323,169 954,281 131,801
------------- ------------ ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 515,112,072 106,894,981 4,843,884 168,731
Transfers between funds ....................... - - 5,659,068 959,762
Surrenders .................................... (2,953,250) (205,540) (25,955) (64)
Death benefits ................................ (165,946) - (1,531) -
Policy loans (net of repayments) (note 5) ..... (4,792,558) (1,093,563) (99,683) -
Deductions for surrender charges (note 2d) .... (378,228) (2,405) (3,324) (1)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (28,207,228) (4,765,148) (410,626) (23,721)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (882,295) (148,735) (13,701) (985)
MSP contracts ............................... (49,709) (535) (1,582) (4)
SL contracts ................................ (99,794) (12,520) (1,422) (83)
------------- ------------ ----------- ----------
Net equity transactions ................... 477,583,064 100,666,535 9,945,128 1,103,635
------------- ------------ ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 540,303,889 107,989,704 10,899,409 1,235,436
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 107,989,704 - 1,235,436 -
------------- ------------ ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 648,293,593 107,989,704 12,134,845 1,235,436
============= ============ =========== ==========
<CAPTION>
ACVPint ACVPValue
------------------------- ----------------------
1999 1998 1999 1998
----------- ---------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - 355 9,053 169
Mortality and expense charges (note 3) ........ (3,029) (173) (698) (44)
----------- ---------- ---------- --------
Net investment income ....................... (3,029) 182 8,355 125
----------- ---------- ---------- --------
Proceeds from mutual fund shares sold ......... 2,517,615 613,620 1,027,473 216,392
Cost of mutual fund shares sold ............... (1,889,551) (614,510) (1,065,502) (220,562)
----------- ---------- ---------- --------
Realized gain (loss) on investments ......... 628,064 (890) (38,029) (4,170)
Change in unrealized gain (loss) on investments 4,031,727 159,768 (142,040) 28,277
----------- ---------- ---------- --------
Net gain (loss) on investments .............. 4,659,791 158,878 (180,069) 24,107
----------- ---------- ---------- --------
Reinvested capital gains ...................... - 3,644 85,768 1,997
----------- ---------- ---------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,656,762 162,704 (85,946) 26,229
----------- ---------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 3,440,338 489,914 698,376 218,019
Transfers between funds ....................... 5,542,573 1,905,042 905,970 409,201
Surrenders .................................... (6,193) - (7,715) (20)
Death benefits ................................ (3,352) - - -
Policy loans (net of repayments) (note 5) ..... (114,731) (2,833) (15,452) (1,893)
Deductions for surrender charges (note 2d) .... (793) - (988) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (514,310) (73,254) (132,120) (23,676)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (21,791) (2,574) (5,363) (827)
MSP contracts ............................... (570) (9) (203) (3)
SL contracts ................................ (1,478) (217) (147) (70)
----------- ---------- ---------- --------
Net equity transactions ................... 8,319,693 2,316,069 1,442,358 600,731
----------- ---------- ---------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 12,976,455 2,478,773 1,356,412 626,960
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,478,773 - 626,960 -
----------- ---------- ---------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 15,455,228 2,478,773 1,983,372 626,960
=========== ========== ========== ========
</TABLE>
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- -------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- -------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
DrySRGro DryStkix
------------------------- ---------------------------
1999 1998 1999 1998
----------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 1,039 2,114 694,199 64,671
Mortality and expense charges (note 3) ........ (849) (96) (80,224) (1,001)
----------- ---------- ------------ -----------
Net investment income ....................... 190 2,018 613,975 63,670
----------- ---------- ------------ -----------
Proceeds from mutual fund shares sold ......... 620,665 292,403 3,651,059 2,855,607
Cost of mutual fund shares sold ............... (483,300) (279,293) (3,038,322) (2,928,820)
----------- ---------- ------------ -----------
Realized gain (loss) on investments ......... 137,365 13,110 612,737 (73,213)
Change in unrealized gain (loss) on investments 901,808 108,355 11,117,238 1,455,019
----------- ---------- ------------ -----------
Net gain (loss) on investments .............. 1,039,173 121,465 11,729,975 1,381,806
----------- ---------- ------------ -----------
Reinvested capital gains ...................... 279,678 47,900 672,634 12,311
----------- ---------- ------------ -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,319,041 171,383 13,016,584 1,457,787
----------- ---------- ------------ -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,335,241 544,259 41,330,848 3,047,695
Transfers between funds ....................... 4,065,765 721,262 57,817,925 10,358,645
Surrenders .................................... (13,484) (97) (626,906) (430)
Death benefits ................................ (18,063) - (24,555) -
Policy loans (net of repayments) (note 5) ..... (33,299) (1,497) (192,790) (9,416)
Deductions for surrender charges (note 2d) .... (1,727) (1) (80,289) (5)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (506,680) (61,633) (4,045,059) (463,310)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (17,385) (1,607) (134,875) (15,073)
MSP contracts ............................... (332) (6) (4,126) (54)
SL contracts ................................ (913) (135) (11,443) (1,269)
----------- ---------- ------------ -----------
Net equity transactions ................... 5,809,123 1,200,545 94,028,730 12,916,783
----------- ---------- ------------ -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 7,128,164 1,371,928 107,045,314 14,374,570
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,371,928 - 14,374,570 -
----------- ---------- ------------ -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 8,500,092 1,371,928 121,419,884 14,374,570
=========== ========== ============ ===========
<CAPTION>
DryCapAp DryEuroEq
------------------------- ---------------------------
1999 1998 1999 1998
----------- ---------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 102,225 7,616 266 -
Mortality and expense charges (note 3) ........ (19,902) (108) - -
----------- ---------- ------------ -----------
Net investment income ....................... 82,323 7,508 266 -
----------- ---------- ------------ -----------
Proceeds from mutual fund shares sold ......... 6,596,135 191,690 9,724 -
Cost of mutual fund shares sold ............... (6,226,765) (192,584) (9,364) -
----------- ---------- ------------ -----------
Realized gain (loss) on investments ......... 369,370 (894) 360 -
Change in unrealized gain (loss) on investments 649,339 150,742 9,997 -
----------- ---------- ------------ -----------
Net gain (loss) on investments .............. 1,018,709 149,848 10,357 -
----------- ---------- ------------ -----------
Reinvested capital gains ...................... 68,742 - 1,251 -
----------- ---------- ------------ -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,169,774 157,356 11,874 -
----------- ---------- ------------ -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 12,955,621 381,182 8,625 -
Transfers between funds ....................... 4,076,889 1,070,054 114,306 -
Surrenders .................................... (56,786) (44) - -
Death benefits ................................ (6,440) - - -
Policy loans (net of repayments) (note 5) ..... (32,681) (289) - -
Deductions for surrender charges (note 2d) .... (7,273) (1) - -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (701,318) (58,099) (92) -
Asset charges (note 3):
FPVUL & VEL contracts ....................... (17,976) (1,594) (32) -
MSP contracts ............................... (683) (6) (8) -
SL contracts ................................ (1,755) (134) - -
----------- ---------- ------------ -----------
Net equity transactions ................... 16,207,598 1,391,069 122,799 -
----------- ---------- ------------ -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 17,377,372 1,548,425 134,673 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,548,425 - - -
----------- ---------- ------------ -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 18,925,797 1,548,425 134,673 -
=========== ========== ======== ===========
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
FedQualBd FidVIPEi
----------------------- ------------------------
1999 1998 1999 1998
------------ ------ ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 97,065 -
Mortality and expense charges (note 3) ....... (3,162) - (3,265) (402)
------------ ------ ---------- ----------
Net investment income ....................... (3,162) - 93,800 (402)
------------ ------ ---------- ----------
Proceeds from mutual fund shares sold ......... 193,269 - 2,794,623 1,186,510
Cost of mutual fund shares sold ............... (195,176) - (2,491,032) (1,221,597)
------------ ------ ---------- ----------
Realized gain (loss) on investments ......... (1,907) - 303,591 (35,087)
Change in unrealized gain (loss) on investments 40,201 - (277,459) 449,182
------------ ------ ---------- ----------
Net gain (loss) on investments .............. 38,294 - 26,132 414,095
------------ ------ ---------- ----------
Reinvested capital gains ...................... - - 214,564 -
------------ ------ ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 35,132 - 334,496 413,693
------------ ------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 3,119,190 - 4,448,956 1,622,388
Transfers between funds ....................... 8,049,110 - 6,896,656 3,964,871
Surrenders .................................... - - (80,452) (401)
Death benefits ................................ - - (1,391) -
Policy loans (net of repayments) (note 5) ..... - - (144,802) (6,242)
Deductions for surrender charges (note 2d) .... - - (10,304) (5)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (20,060) - (1,124,439) (217,638)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (31) - (43,634) (6,715)
MSP contracts ............................... (21) - (1,965) (24)
SL contracts ................................ - - (1,316) (565)
------------ ------ ---------- ----------
Net equity transactions ................... 11,148,188 - 9,937,309 5,355,669
------------ ------ ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 11,183,320 - 10,271,805 5,769,362
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - 5,769,362 -
------------ ------ ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 11,183,320 - 16,041,167 5,769,362
============ ====== =========== ==========
<CAPTION>
FidVIPGr FidVIPHi
------------------------- -------------------------
1999 1998 1999 1998
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 8,639 - 364,862 -
Mortality and expense charges (note 3) ....... (12,917) (249) (1,521) (245)
----------- ---------- ---------- ----------
Net investment income ....................... (4,278) (249) 363,341 (245)
----------- ---------- ---------- ----------
Proceeds from mutual fund shares sold ......... 1,070,026 759,197 926,716 848,212
Cost of mutual fund shares sold ............... (923,816) (750,697) (1,041,180) (901,996)
----------- ---------- ---------- ----------
Realized gain (loss) on investments ......... 146,210 8,500 (114,464) (53,784)
Change in unrealized gain (loss) on investments 6,093,883 480,684 103,063 37,295
----------- ---------- ---------- ----------
Net gain (loss) on investments .............. 6,240,093 489,184 (11,401) (16,489)
----------- ---------- ---------- ----------
Reinvested capital gains ...................... 543,154 - 13,640 -
----------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 6,778,969 488,935 365,580 (16,734)
----------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 13,666,314 742,777 2,442,012 685,592
Transfers between funds ....................... 20,406,545 2,489,085 3,417,897 2,964,332
Surrenders .................................... (63,057) (1,445) (30,819) -
Death benefits ................................ (10,491) - (1,204) -
Policy loans (net of repayments) (note 5) ..... (177,397) (5,968) (134,160) (1,581)
Deductions for surrender charges (note 2d) .... (8,076) (17) (3,947) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (1,671,275) (140,842) (455,068) (103,400)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (55,807) (4,257) (18,072) (3,432)
MSP contracts ............................... (2,486) (15) (1,135) (12)
SL contracts ................................ (3,848) (358) (1,596) (289)
----------- ---------- ---------- ----------
Net equity transactions ................... 32,080,422 3,078,960 5,213,908 3,541,210
----------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 38,859,391 3,567,895 5,579,488 3,524,476
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 3,567,895 - 3,524,476 -
----------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 42,427,286 3,567,895 9,103,964 3,524,476
=========== ========== ========== ==========
</TABLE>
8
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
FidVIPOv FidVIPCon
-------------------------- -------------------------
1999 1998 1999 1998
------------ ---------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 21,110 - 26,713 -
Mortality and expense charges (note 3) ....... (9,859) (75) (4,360) (330)
------------ ---------- ----------- ----------
Net investment income ....................... 11,251 (75) 22,353 (330)
------------ ---------- ----------- ----------
Proceeds from mutual fund shares sold ......... 7,592,272 528,529 1,218,202 974,276
Cost of mutual fund shares sold ............... (6,861,807) (553,402) (1,003,352) (947,452)
------------ ---------- ----------- ----------
Realized gain (loss) on investments ......... 730,465 (24,873) 214,850 26,824
Change in unrealized gain (loss) on investments 1,849,661 68,313 3,006,379 648,413
------------ ---------- ----------- ----------
Net gain (loss) on investments .............. 2,580,126 43,440 3,221,229 675,237
------------ ---------- ----------- ----------
Reinvested capital gains ...................... 34,048 - 195,897 -
------------ ---------- ----------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,625,425 43,365 3,439,479 674,907
------------ ---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,371,398 233,314 6,884,353 1,117,315
Transfers between funds ....................... 8,415,589 835,812 11,647,164 3,133,469
Surrenders .................................... (26,372) (16) (454,009) (165)
Death benefits ................................ (308) - (4,599) -
Policy loans (net of repayments) (note 5) ..... (21,644) (1,574) (155,019) (2,052)
Deductions for surrender charges (note 2d) .... (3,377) - (58,146) (2)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (318,257) (34,849) (1,389,362) (173,162)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (10,339) (1,230) (50,526) (5,299)
MSP contracts ............................... (724) (4) (1,103) (19)
SL contracts ................................ (955) (103) (2,492) (446)
------------ ---------- ----------- ----------
Net equity transactions ................... 9,405,011 1,031,350 16,416,261 4,069,639
------------ ---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 12,030,436 1,074,715 19,855,740 4,744,546
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,074,715 - 4,744,546 -
------------ ---------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 13,105,151 1,074,715 24,600,286 4,744,546
============ ========== =========== ==========
<CAPTION>
FidVIPGrOp VKMSEmMKt
------------------------- --------------------
1999 1998 1999 1998
----------- ---------- -------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 28,246 - 85,097 18,594
Mortality and expense charges (note 3) ....... (3,130) (168) (166) (11)
----------- ---------- -------- --------
Net investment income ....................... 25,116 (168) 84,931 18,583
----------- ---------- -------- --------
Proceeds from mutual fund shares sold ......... 613,535 309,151 218,023 268,442
Cost of mutual fund shares sold ............... (559,981) (296,203) (200,881) (301,322)
----------- ---------- -------- --------
Realized gain (loss) on investments ......... 53,554 12,948 17,142 (32,880)
Change in unrealized gain (loss) on investments 137,134 262,800 20,955 (7,323)
----------- ---------- -------- --------
Net gain (loss) on investments .............. 190,688 275,748 38,097 (40,203)
----------- ---------- -------- --------
Reinvested capital gains ...................... 55,207 - - -
----------- ---------- -------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 271,011 275,580 123,028 (21,620)
----------- ---------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 3,045,388 584,874 176,047 41,423
Transfers between funds ....................... 5,377,081 1,646,479 265,717 144,407
Surrenders .................................... (191,409) (36) (137) -
Death benefits ................................ (1,216) - - -
Policy loans (net of repayments) (note 5) ..... (42,620) 29 (792) -
Deductions for surrender charges (note 2d) .... (24,514) - (17) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (632,760) (84,140) (30,191) (6,534)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (23,008) (2,917) (1,369) (152)
MSP contracts ............................... (1,943) (10) (2) (1)
SL contracts ................................ (1,552) (245) (2) (13)
----------- ---------- -------- --------
Net equity transactions ................... 7,503,447 2,144,034 409,254 179,130
----------- ---------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 7,774,458 2,419,614 532,282 157,510
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,419,614 - 157,510 -
----------- ---------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 10,194,072 2,419,614 689,792 157,510
=========== ========== ======== ========
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- --------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- --------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATBal NSATCapAp
----------------------- --------------------------
1999 1998 1999 1998
----------- -------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 80,095 9,854 96,180 14,834
Mortality and expense charges (note 3) ....... (1,605) (51) (2,498) (440)
----------- -------- ----------- ----------
Net investment income ....................... 78,490 9,803 93,682 14,394
----------- -------- ----------- ----------
Proceeds from mutual fund shares sold ......... 2,788,299 316,297 4,176,681 703,904
Cost of mutual fund shares sold ............... (2,830,503) (315,924) (3,638,494) (686,965)
----------- -------- ----------- ----------
Realized gain (loss) on investments ......... (42,204) 373 538,187 16,939
Change in unrealized gain (loss) on investments (33,063) 22,806 (1,637,699) 469,266
----------- -------- ----------- ----------
Net gain (loss) on investments .............. (75,267) 23,179 (1,099,512) 486,205
----------- -------- ----------- ----------
Reinvested capital gains ...................... 495 2,184 1,352,393 174,093
----------- -------- ----------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,718 35,166 346,563 674,692
----------- -------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,611,897 87,905 9,062,429 1,531,297
Transfers between funds ....................... 1,487,269 640,480 7,693,905 4,379,971
Surrenders .................................... (107,959) - (206,070) (118)
Death benefits ................................ - - (17,696) -
Policy loans (net of repayments) (note 5) ..... (10,080) (2,200) (72,988) 731
Deductions for surrender charges (note 2d) .... (13,826) - (26,392) (1)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (211,528) (28,998) (1,637,150) (265,208)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (6,440) (840) (57,366) (7,161)
MSP contracts ............................... (439) (3) (1,785) (26)
SL contracts ................................ (638) (71) (1,205) (603)
----------- -------- ----------- ----------
Net equity transactions ................... 2,748,256 696,273 14,735,682 5,638,882
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,751,974 731,439 15,082,245 6,313,574
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 731,439 - 6,313,574 -
----------- -------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 3,483,413 731,439 21,395,819 6,313,574
=========== ======== =========== ==========
<CAPTION>
NSATEqInc NSATGlobEq
-------------------- -----------------------
1999 1998 1999 1998
-------- -------- ----------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 1,722 896 8,364 1,950
Mortality and expense charges (note 3) ....... (71) (17) (10,207) (34)
-------- -------- ----------- --------
Net investment income ....................... 1,651 879 (1,843) 1,916
-------- -------- ----------- --------
Proceeds from mutual fund shares sold ......... 116,995 18,085 1,039,009 57,978
Cost of mutual fund shares sold ............... (100,117) (17,928) (930,501) (57,852)
-------- -------- ----------- --------
Realized gain (loss) on investments ......... 16,878 157 108,508 126
Change in unrealized gain (loss) on investments 84,114 15,021 997,392 38,188
-------- -------- ----------- --------
Net gain (loss) on investments .............. 100,992 15,178 1,105,900 38,314
-------- -------- ----------- --------
Reinvested capital gains ...................... 202 2,636 456,545 3,213
-------- -------- ----------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 102,845 18,693 1,560,602 43,443
-------- -------- ----------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 100,722 28,736 1,045,536 96,340
Transfers between funds ....................... 527,196 202,838 12,602,010 374,760
Surrenders .................................... (207) - (149,120) (20)
Death benefits ................................ - - (783) -
Policy loans (net of repayments) (note 5) ..... (1,768) - (3,556) (199)
Deductions for surrender charges (note 2d) .... (26) - (19,098) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (48,952) (5,984) (215,865) (19,705)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (1,993) (247) (4,771) (571)
MSP contracts ............................... (80) (1) (78) (2)
SL contracts ................................ (77) (21) (8,899) (48)
-------- -------- ----------- --------
Net equity transactions ................... 574,815 225,321 13,245,376 450,555
-------- -------- ----------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 677,660 244,014 14,805,978 493,998
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 244,014 - 493,998 -
-------- -------- ----------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 921,674 244,014 15,299,976 493,998
======== ======== =========== ========
</TABLE>
10
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATGvtBd NSATHIncBd
-------------------------- ----------------------
1999 1998 1999 1998
------------ ---------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 798,788 83,382 308,481 22,707
Mortality and expense charges (note 3) ....... (37,827) (327) (3,120) (68)
------------ ---------- ---------- --------
Net investment income ....................... 760,961 83,055 305,361 22,639
------------ ---------- ---------- --------
Proceeds from mutual fund shares sold ......... 10,418,680 1,043,507 689,933 206,929
Cost of mutual fund shares sold ............... (11,072,171) (1,033,771) (687,767) (213,860)
------------ ---------- ---------- --------
Realized gain (loss) on investments ......... (653,491) 9,736 2,166 (6,931)
Change in unrealized gain (loss) on investments (442,511) (84,436) (155,595) 7,941
------------ ---------- ---------- --------
Net gain (loss) on investments .............. (1,096,002) (74,700) (153,429) 1,010
------------ ---------- ---------- --------
Reinvested capital gains ...................... 35,939 22,403 645 -
------------ ---------- ---------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (299,102) 30,758 152,577 23,649
------------ ---------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 5,188,264 480,508 4,145,976 116,422
Transfers between funds ....................... 10,824,196 4,241,272 3,041,733 850,224
Surrenders .................................... (7,882) (58) (1,402) -
Death benefits ................................ (779) - - -
Policy loans (net of repayments) (note 5) ..... (10,210) (822) (1,976) -
Deductions for surrender charges (note 2d) .... (1,010) (1) (180) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (747,310) (51,451) (134,672) (18,455)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (13,896) (2,112) (4,222) (756)
MSP contracts ............................... (3,046) (8) (16) (3)
SL contracts ................................ (1,057) (178) (549) (64)
------------ ---------- ---------- --------
Net equity transactions ................... 15,227,270 4,667,150 7,044,692 947,368
------------ ---------- ---------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 14,928,168 4,697,908 7,197,269 971,017
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 4,697,908 - 971,017 -
------------ ---------- ---------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 19,626,076 4,697,908 8,168,286 971,017
============ ========== ========== ========
<CAPTION>
NSATMyMkt NSATMSecBd
--------------------------- -----------------------
1999 1998 1999 1998
------------ ----------- ----------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 3,376,535 506,347 405,079 20,456
Mortality and expense charges (note 3) ....... (139,891) (1,751) (8,904) (64)
------------ ----------- ----------- --------
Net investment income ....................... 3,236,644 504,596 396,175 20,392
------------ ----------- ----------- --------
Proceeds from mutual fund shares sold ......... 104,229,444 44,230,768 824,473 678,560
Cost of mutual fund shares sold ............... (104,229,444) (44,230,768) (850,875) (682,489)
------------ ----------- ----------- --------
Realized gain (loss) on investments ......... - - (26,402) (3,929)
Change in unrealized gain (loss) on investments - - (125,056) 781
------------ ----------- ----------- --------
Net gain (loss) on investments .............. - - (151,458) (3,148)
------------ ----------- ----------- --------
Reinvested capital gains ...................... - - - 691
------------ ----------- ----------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,236,644 504,596 244,717 17,935
------------ ----------- ----------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 352,373,390 88,272,542 3,583,938 238,773
Transfers between funds ....................... (230,478,324) (60,507,727) 8,648,087 687,922
Surrenders .................................... (235,503) (201,196) (4,080) -
Death benefits ................................ (27,182) - 21 -
Policy loans (net of repayments) (note 5) ..... (2,684,887) (1,000,116) (7,035) (427)
Deductions for surrender charges (note 2d) .... (30,161) (2,354) (523) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (7,099,744) (1,866,745) (202,496) (20,588)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (155,882) (58,762) (5,111) (994)
MSP contracts ............................... (18,983) (210) (340) (4)
SL contracts ................................ (43,454) (4,947) (6,384) (84)
------------ ----------- ----------- --------
Net equity transactions ................... 111,599,270 24,630,485 12,006,077 904,598
------------ ----------- ----------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 114,835,914 25,135,081 12,250,794 922,533
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 25,135,081 - 922,533 -
------------ ----------- ----------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 139,970,995 25,135,081 13,173,327 922,533
============ =========== =========== ========
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ----------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ----------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATMidCap NSATSmCapGr
--------------------- ----------------------
1999 1998 1999 1998
--------- -------- ----------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 1,219 782 - -
Mortality and expense charges (note 3) ....... (9) (21) (31) -
--------- -------- ----------- -------
Net investment income ....................... 1,210 761 (31) -
--------- -------- ----------- -------
Proceeds from mutual fund shares sold ......... 104,264 48,915 11,249,953 -
Cost of mutual fund shares sold ............... (89,446) (51,817) (11,295,118) -
--------- -------- ----------- -------
Realized gain (loss) on investments ......... 14,818 (2,902) (45,165) -
Change in unrealized gain (loss) on investments 51,305 29,815 1,020,705 -
--------- -------- ----------- -------
Net gain (loss) on investments .............. 66,123 26,913 975,540 -
--------- -------- ----------- -------
Reinvested capital gains ...................... 47,431 - 101,886 -
--------- -------- ----------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 114,764 27,674 1,077,395 -
--------- -------- ----------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 29,706 38,598 1,120,048 -
Transfers between funds ....................... 418,208 239,349 516,673 -
Surrenders .................................... (445) - - -
Death benefits ................................ - - - -
Policy loans (net of repayments) (note 5) ..... (3,245) - - -
Deductions for surrender charges (note 2d) .... (57) - - -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (35,179) (6,590) (3,049) -
Asset charges (note 3):
FPVUL & VEL contracts ....................... (2,054) (289) (190) -
MSP contracts ............................... (35) (1) (16) -
SL contracts ................................ (34) (24) (68) -
--------- -------- ----------- -------
Net equity transactions ................... 406,865 271,043 1,633,398 -
--------- -------- ----------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 521,629 298,717 2,710,793 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 298,717 - - -
--------- -------- ----------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 820,346 298,717 2,710,793 -
========= ======== =========== =======
<CAPTION>
NSATSmCapV NSATSmCo
------------------------ -------------------------
1999 1998 1999 1998
---------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - - -
Mortality and expense charges (note 3) ....... (609) (72) (4,091) (112)
---------- ---------- ----------- ----------
Net investment income ....................... (609) (72) (4,091) (112)
---------- ---------- ----------- ----------
Proceeds from mutual fund shares sold ......... 1,400,366 119,432 1,854,552 303,745
Cost of mutual fund shares sold ............... (1,184,849) (127,976) (1,415,009) (310,124)
---------- ---------- ----------- ----------
Realized gain (loss) on investments ......... 215,517 (8,544) 439,543 (6,379)
Change in unrealized gain (loss) on investments (194,598) 118,603 2,711,547 132,974
---------- ---------- ----------- ----------
Net gain (loss) on investments .............. 20,919 110,059 3,151,090 126,595
---------- ---------- ----------- ----------
Reinvested capital gains ...................... 651,318 - 500,536 -
---------- ---------- ----------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 671,628 109,987 3,647,535 126,483
---------- ---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 837,148 186,610 2,908,526 360,233
Transfers between funds ....................... 2,112,202 774,453 5,337,212 1,192,844
Surrenders .................................... (7,439) - (6,177) (43)
Death benefits ................................ 222 - (1,172) -
Policy loans (net of repayments) (note 5) ..... (13,801) (2,782) (23,244) (2,442)
Deductions for surrender charges (note 2d) .... (953) - (791) (1)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (244,824) (34,791) (349,442) (64,333)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (10,039) (1,048) (13,385) (2,107)
MSP contracts ............................... (356) (4) (382) (8)
SL contracts ................................ (386) (88) (788) (177)
---------- ---------- ----------- ----------
Net equity transactions ................... 2,671,774 922,350 7,850,357 1,483,966
---------- ---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,343,402 1,032,337 11,497,892 1,610,449
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,032,337 - 1,610,449 -
---------- ---------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 4,375,739 1,032,337 13,108,341 1,610,449
========== ========== =========== ==========
</TABLE>
12
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NSATStrGro NSATStrVal
------------------------ --------------------
1999 1998 1999 1998
------------ -------- -------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 5,676 1,052
Mortality and expense charges (note 3) ....... (2,128) (30) (137) (24)
------------ -------- -------- --------
Net investment income ....................... (2,128) (30) 5,539 1,028
------------ -------- -------- --------
Proceeds from mutual fund shares sold ......... 2,132,323 150,535 173,459 81,326
Cost of mutual fund shares sold ............... (1,804,973) (150,564) (155,571) (89,165)
------------ -------- -------- --------
Realized gain (loss) on investments ......... 327,350 (29) 17,888 (7,839)
Change in unrealized gain (loss) on investments 1,323,586 48,847 (70,115) 43,881
------------ -------- -------- --------
Net gain (loss) on investments .............. 1,650,936 48,818 (52,227) 36,042
------------ -------- -------- --------
Reinvested capital gains ...................... 515,885 - 22,264 -
------------ -------- -------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,164,693 48,788 (24,424) 37,070
------------ -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,422,960 106,807 113,739 26,097
Transfers between funds ....................... 6,109,550 294,315 555,257 290,790
Surrenders .................................... (8,289) - (534) -
Death benefits ................................ (1,613) - - -
Policy loans (net of repayments) (note 5) ..... (24,425) (514) (6,758) 368
Deductions for surrender charges (note 2d) .... (1,062) - (68) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (166,998) (20,594) (38,618) (7,966)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (5,799) (658) (2,342) (354)
MSP contracts ............................... (79) (2) (47) (1)
SL contracts ................................ (147) (55) (54) (30)
------------ -------- -------- --------
Net equity transactions ................... 8,324,098 379,299 620,575 308,904
------------ -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 10,488,791 428,087 596,151 345,974
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 428,087 - 345,974 -
------------ -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 10,916,878 428,087 942,125 345,974
============ ======== ======== ========
<CAPTION>
NSATTotRe NBAMTGuard
------------------------- ------------------------
1999 1998 1999 1998
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 96,396 27,487 3,977 -
Mortality and expense charges (note 3) ....... (606) (578) (679) (83)
----------- ---------- ---------- ----------
Net investment income ....................... 95,790 26,909 3,298 (83)
----------- ---------- ---------- ----------
Proceeds from mutual fund shares sold ......... 806,876 1,201,208 807,995 117,578
Cost of mutual fund shares sold ............... (784,668) (1,222,228) (670,629) (123,077)
----------- ---------- ---------- ----------
Realized gain (loss) on investments ......... 22,208 (21,020) 137,366 (5,499)
Change in unrealized gain (loss) on investments (33,899) 283,836 77,047 82,886
----------- ---------- ---------- ----------
Net gain (loss) on investments .............. (11,691) 262,816 214,413 77,387
----------- ---------- ---------- ----------
Reinvested capital gains ...................... 809,302 321,440 - -
----------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 893,401 611,165 217,711 77,304
----------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 7,871,786 2,620,309 436,993 246,176
Transfers between funds ....................... 9,589,090 5,463,668 1,360,544 891,240
Surrenders .................................... (153,144) (81) (62,331) (2)
Death benefits ................................ (25,003) - - -
Policy loans (net of repayments) (note 5) ..... (318,100) (4,594) (3,869) (318)
Deductions for surrender charges (note 2d) .... (19,613) (1) (7,983) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (2,208,818) (385,652) (169,963) (17,719)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (73,719) (10,105) (8,142) (742)
MSP contracts ............................... (3,448) (36) (127) (3)
SL contracts ................................ (2,037) (851) (100) (62)
----------- ---------- ---------- ----------
Net equity transactions ................... 14,656,994 7,682,657 1,545,022 1,118,570
----------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 15,550,395 8,293,822 1,762,733 1,195,874
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 8,293,822 - 1,195,874 -
----------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 23,844,217 8,293,822 2,958,607 1,195,874
=========== ========== ========== ==========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
NBAMTMCGr NBAMTPart
------------------------ ------------------------
1999 1998 1999 1998
------------ -------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 56,853 114
Mortality and expense charges (note 3) ....... (7,463) (52) (2,109) (290)
------------ -------- ---------- ----------
Net investment income ....................... (7,463) (52) 54,744 (176)
------------ -------- ---------- ----------
Proceeds from mutual fund shares sold ......... 7,840,757 140,913 787,143 862,257
Cost of mutual fund shares sold ............... (6,652,007) (137,009) (785,895) (875,740)
------------ -------- ---------- ----------
Realized gain (loss) on investments ......... 1,188,750 3,904 1,248 (13,483)
Change in unrealized gain (loss) on investments 3,039,884 176,285 196,040 255,133
------------ -------- ---------- ----------
Net gain (loss) on investments .............. 4,228,634 180,189 197,288 241,650
------------ -------- ---------- ----------
Reinvested capital gains ...................... 37,807 - 98,874 3,599
------------ -------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,258,978 180,137 350,906 245,073
------------ -------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 9,784,832 57,715 2,049,277 831,946
Transfers between funds ....................... (2,147,643) 560,630 1,699,822 3,231,525
Surrenders .................................... (16,427) (20) (78,561) (16)
Death benefits ................................ (4,321) - (2,713) -
Policy loans (net of repayments) (note 5) ..... (67,280) (140) (216,206) (174)
Deductions for surrender charges (note 2d) .... (2,104) - (10,061) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (350,946) (55,646) (464,515) (144,625)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (11,378) (1,407) (22,616) (4,977)
MSP contracts ............................... (459) (5) (622) (18)
SL contracts ................................ (716) (118) (1,766) (419)
------------ -------- ---------- ----------
Net equity transactions ................... 7,183,558 561,009 2,952,039 3,913,242
------------ -------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 11,442,536 741,146 3,302,945 4,158,315
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 741,146 - 4,158,315 -
------------ -------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 12,183,682 741,146 7,461,260 4,158,315
============ ======== ========== ==========
<CAPTION>
OppAggGro OppGro
------------------------- ------------------------
1999 1998 1999 1998
----------- ---------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - 26 10,044 8
Mortality and expense charges (note 3) ....... (2,942) (80) (4,168) (142)
----------- ---------- ----------- ----------
Net investment income ....................... (2,942) (54) 5,876 (134)
----------- ---------- ----------- ----------
Proceeds from mutual fund shares sold ......... 1,971,772 120,154 993,762 412,555
Cost of mutual fund shares sold ............... (1,353,384) (118,908) (802,267) (391,820)
----------- ---------- ----------- ----------
Realized gain (loss) on investments ......... 618,388 1,246 191,495 20,735
Change in unrealized gain (loss) on investments 2,906,737 155,404 2,561,317 255,097
----------- ---------- ----------- ----------
Net gain (loss) on investments .............. 3,525,125 156,650 2,752,812 275,832
----------- ---------- ----------- ----------
Reinvested capital gains ...................... - 270 110,334 101
----------- ---------- ----------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,522,183 156,866 2,869,022 275,799
----------- ---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,894,019 298,181 2,754,479 522,163
Transfers between funds ....................... 4,290,831 753,401 7,064,837 1,352,464
Surrenders .................................... (25,306) (318) (254,161) (369)
Death benefits ................................ 295 - (300) -
Policy loans (net of repayments) (note 5) ..... (37,694) (2,146) (72,268) (10,091)
Deductions for surrender charges (note 2d) .... (3,241) (4) (32,551) (4)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (416,901) (60,958) (655,772) (91,465)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (13,629) (1,372) (23,800) (2,763)
MSP contracts ............................... (182) (5) (983) (10)
SL contracts ................................ (488) (115) (390) (233)
----------- ---------- ----------- ----------
Net equity transactions ................... 6,687,704 986,664 8,779,091 1,769,692
----------- ---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 10,209,887 1,143,530 11,648,113 2,045,491
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,143,530 - 2,045,491 -
----------- ---------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 11,353,417 1,143,530 13,693,604 2,045,491
=========== ========== =========== ==========
</TABLE>
14
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
OppGrinc VEWrldEMkt
------------------------- ----------------------
1999 1998 1999 1998
----------- ---------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 10,187 29 - -
Mortality and expense charges (note 3) ........ (2,014) (113) (139) (20)
----------- ---------- ---------- --------
Net investment income ....................... 8,173 (84) (139) (20)
----------- ---------- ---------- --------
Proceeds from mutual fund shares sold ......... 570,677 698,919 1,092,848 70,482
Cost of mutual fund shares sold ............... (582,947) (718,580) (857,511) (84,625)
----------- ---------- ---------- --------
Realized gain (loss) on investments ......... (12,270) (19,661) 235,337 (14,143)
Change in unrealized gain (loss) on investments 713,752 80,325 663,413 18,347
----------- ---------- ---------- --------
Net gain (loss) on investments .............. 701,482 60,664 898,750 4,204
----------- ---------- ---------- --------
Reinvested capital gains ...................... 17,163 645 - -
----------- ---------- ---------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 726,818 61,225 898,611 4,184
----------- ---------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,687,758 284,513 322,588 90,144
Transfers between funds ....................... 3,276,499 1,343,627 1,279,757 207,921
Surrenders .................................... (24,107) (418) (1,334) -
Death benefits ................................ (9,603) - (1,149) -
Policy loans (net of repayments) (note 5) ..... (23,549) (16,228) (5,485) 410
Deductions for surrender charges (note 2d) .... (3,088) (5) (171) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (314,964) (43,383) (90,731) (13,062)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (12,409) (1,608) (4,040) (370)
MSP contracts ............................... (626) (6) (151) (1)
SL contracts ................................ (620) (135) (184) (31)
----------- ---------- ---------- --------
Net equity transactions ................... 4,575,291 1,566,357 1,499,100 285,011
----------- ---------- ---------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 5,302,109 1,627,582 2,397,711 289,195
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,627,582 - 289,195 -
----------- ---------- ---------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 6,929,691 1,627,582 2,686,906 289,195
=========== ========== ========== ========
<CAPTION>
VEWrldHAs VKMSRESec
-------------------- -----------------------
1999 1998 1999 1998
-------- -------- ----------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 2,469 - 54,408 34
Mortality and expense charges (note 3) ........ (295) (11) (1,163) (50)
-------- -------- ----------- --------
Net investment income ....................... 2,174 (11) 53,245 (16)
-------- -------- ----------- --------
Proceeds from mutual fund shares sold ......... 718,765 46,572 10,399,298 357,742
Cost of mutual fund shares sold ............... (692,370) (49,623) (10,439,502) (388,797)
-------- -------- ----------- --------
Realized gain (loss) on investments ......... 26,395 (3,051) (40,204) (31,055)
Change in unrealized gain (loss) on investments 22,444 (2,102) (130,048) 27,306
-------- -------- ----------- --------
Net gain (loss) on investments .............. 48,839 (5,153) (170,252) (3,749)
-------- -------- ----------- --------
Reinvested capital gains ...................... - - - 339
-------- -------- ----------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 51,013 (5,164) (117,007) (3,426)
-------- -------- ----------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 201,802 23,363 754,790 233,023
Transfers between funds ....................... 69,474 144,721 440,087 517,845
Surrenders .................................... (679) - (8,017) -
Death benefits ................................ - - (1,020) -
Policy loans (net of repayments) (note 5) ..... 216 235 (8,547) (834)
Deductions for surrender charges (note 2d) .... (87) - (1,027) -
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (29,846) (8,707) (188,335) (28,277)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (1,079) (186) (4,322) (1,116)
MSP contracts ............................... (2) (1) (107) (4)
SL contracts ................................ (159) (16) (227) (94)
-------- -------- ----------- --------
Net equity transactions ................... 239,640 159,409 983,275 720,543
-------- -------- ----------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 290,653 154,245 866,268 717,117
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 154,245 - 717,117 -
-------- -------- ----------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 444,898 154,245 1,583,385 717,117
======== ======== =========== ========
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
- ---------------------------------------
STATEMENTS OF OPERATIONS, CONTINUED
- ---------------------------------------
YEARS ENDED DECEMBER 31, 1999 AND FOR THE PERIOD FEBRUARY 18, 1998 (COMMENCEMENT
OF OPERATIONS) THROUGH DECEMBER 31, 1998
<TABLE>
<CAPTION>
WPGrInc WPIntEq WPPVenCap
----------------------- ---------------------- --------------------
1999 1998 1999 1998 1999 1998
----------- -------- ---------- -------- -------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 10,150 4,521 19,282 2,873 - -
Mortality and expense charges (note 3) ........ (1,209) (50) (81) (42) (154) (13)
----------- -------- ---------- -------- -------- --------
Net investment income ....................... 8,941 4,471 19,201 2,831 (154) (13)
----------- -------- ---------- -------- -------- --------
Proceeds from mutual fund shares sold ......... 372,724 345,457 785,974 277,515 364,939 87,326
Cost of mutual fund shares sold ............... (375,164) (337,050) (670,363) (301,573) (278,265) (89,432)
----------- -------- ---------- -------- -------- --------
Realized gain (loss) on investments ......... (2,440) 8,407 115,611 (24,058) 86,674 (2,106)
Change in unrealized gain (loss) on investments (2,238) 5,870 581,395 30,323 208,276 29,961
----------- -------- ---------- -------- -------- --------
Net gain (loss) on investments .............. (4,678) 14,277 697,006 6,265 294,950 27,855
----------- -------- ---------- -------- -------- --------
Reinvested capital gains ...................... 18,278 - - - - -
----------- -------- ---------- -------- -------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 22,541 18,748 716,207 9,096 294,796 27,842
----------- -------- ---------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 486,214 76,711 386,407 114,374 170,257 48,012
Transfers between funds ....................... (106) 655,643 716,698 495,343 306,681 118,060
Surrenders .................................... (2,612) - (6,378) - (1,792) (163)
Death benefits ................................ - - - - - -
Policy loans (net of repayments) (note 5) ..... (3,476) (17,477) (4,356) (891) (2,901) 404
Deductions for surrender charges (note 2d) .... (334) - (817) - (229) (2)
Redemptions to pay cost of insurance charges
and administration charges (notes 2b and 2c) (53,820) (13,090) (114,080) (19,101) (61,093) (7,797)
Asset charges (note 3):
FPVUL & VEL contracts ....................... (2,591) (558) (5,328) (733) (1,843) (237)
MSP contracts ............................... (46) (2) (367) (3) (24) (1)
SL contracts ................................ (57) (47) (328) (62) (63) (20)
----------- -------- ---------- -------- -------- --------
Net equity transactions ................... 423,172 701,180 971,451 588,927 408,993 158,256
----------- -------- ---------- -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 445,713 719,928 1,687,658 598,023 703,789 186,098
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 719,928 - 598,023 - 186,098 -
----------- -------- ---------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 1,165,641 719,928 2,285,681 598,023 889,887 186,098
=========== ======== ========== ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
16
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
(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. On May 3, 1999, the Company (Depositor) transferred to the
Account 100,000 shares of the Nationwide SAT - Small Cap Growth Fund
for which the Account was credited with 100,000 units of the Nationwide
SAT - Small Cap Growth Fund. The value of the units purchased by the
Company on May 3, 1999 was $1,000,000.
The Company offers Flexible Premium, Modified Single Premium and
Survivorship Life 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)
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
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 (MSEmMkt)
17
(Continued)
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Balanced Fund (NSATBal)
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Equity Income Fund (NSATEqInc)
Nationwide SAT - Global Equity Fund (NSATGlobEq)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Select Advisers Mid Cap Fund (NSATMidCap)
Nationwide SAT - Small Cap 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 December 31, 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.
18
<PAGE> 18
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 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.
(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.
(f) Reclassifications
Certain 1998 amounts have been reclassified to conform with the current
period presentation.
(2) POLICY CHARGES
(a) Deductions from Premium
On flexible premium, modified single premium and survivorship life
variable 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, modified single premium and survivorship life
variable life insurance 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.
(Continued)
19
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(3) ASSET CHARGES
For flexible premium variable universal life (FPVUL) and variable executive
life (VEL) contracts, 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 modified single premium contracts (MSP), the Company deducts an annual
rate of .70% charged against the cash value of the contracts. This charge
is assessed monthly against each contract by liquidating units.
For surivorship life contracts (SL), the Company deducts an annual rate of
.55% in policy years one through ten. In policy years eleven and greater,
the Company deducts an annual rate of .55% if the cash value of the
contract is less than $25,000. If the cash value is greater than $25,000
but less than $100,000, the Company reduces the annual rate to .35%. If the
cash value is greater than $100,000, the company reduces the annual rate to
.20%. This charge is assessed monthly 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. Currently, this rate is 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.
Nationwide may reduce or eliminate certain charges, where the size or
nature of the group results in savings in sales, underwriting,
administrative or other costs, to Nationwide. These charges may be reduced
in certain group, sponsored arrangements or special exchange programs made
available by Nationwide.
(4) DEATH BENEFITS
Death benefit proceeds result in a redemption of the contract value from
the Account and payment of those proceeds, less any outstanding policy
loans (and policy charges), to the legal beneficiary. For last survivor
flexible premium contracts, the proceeds are payable on the death of the
last surviving insured. In the event that the guaranteed death benefit
exceeds the contract value on the date of death, the excess is paid by the
Company's general account.
(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 December 31, 1999:
<TABLE>
<CAPTION>
ANNUAL
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 ............... 463,779 $ 14.972547 $ 6,943,953 18%
American Century VP - American
Century VP International ................. 625,339 19.481449 12,182,510 64%
American Century VP - American
Century VP Value ......................... 169,333 10.392110 1,759,727 (1)%
The Dreyfus Socially Responsible
Growth Fund, Inc. ........................ 480,241 16.829763 8,082,342 30%
Dreyfus Stock Index Fund .................... 3,757,311 15.462782 58,098,481 21%
Dreyfus VIF -
Capital Appreciation Portfolio ........... 505,299 14.513370 7,333,591 11%
Dreyfus VIF - European Equity Portfolio ..... 10,415 12.930654 134,673 29%(a)
Federated Insurance Series -
Quality Bond Fund II ..................... 3,972 9.869090 39,200 (1)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class ............................ 1,196,502 11.851816 14,180,722 6%
Fidelity VIP - Growth Portfolio -
Service Class ............................ 1,564,447 19.134456 29,934,842 37%
Fidelity VIP - High Income Portfolio -
Service Class ............................ 664,736 10.329299 6,866,257 8%
Fidelity VIP - Overseas Portfolio -
Service Class ............................ 392,522 16.046561 6,298,628 42%
Fidelity VIP-II - Contrafund Portfolio -
Service Class ............................ 1,324,909 16.131283 21,372,482 24%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class ................ 673,044 12.971233 8,730,211 4%
Morgan Stanley -
Emerging Markets Debt Portfolio .......... 62,633 9.266040 580,360 29%
Nationwide SAT - Balanced Fund .............. 224,583 10.900657 2,448,102 1%
Nationwide SAT -
Capital Appreciation Fund ................ 1,343,877 13.552350 18,212,691 4%
Nationwide SAT - Equity Income Fund ......... 66,677 13.642236 909,623 18%
Nationwide SAT - Global Equity Fund ......... 595,841 14.645021 8,726,104 23%
Nationwide SAT - Government Bond Fund ....... 509,816 10.635188 5,421,989 (2)%
Nationwide SAT - High Income Bond Fund ...... 130,767 10.917180 1,427,607 3%
Nationwide SAT - Money Market Fund .......... 4,602,015 11.037591 50,795,159 5%
Nationwide SAT - Multi Sector Bond Fund ..... 590,762 10.419701 6,155,563 2%
Nationwide SAT -
Select Advisers Mid Cap Fund ............. 61,224 13.399089 820,346 21%
Nationwide SAT - Small Cap Growth Fund ...... 32,108 20.501257 658,254 105%(a)
Nationwide SAT - Small Cap Growth Fund
Initial Funding by Depositor (note 1a) ... 100,000 20.501257 2,050,126 105%(a)
Nationwide SAT - Small Cap Value Fund ....... 345,575 12.391945 4,282,346 28%
Nationwide SAT - Small Company Fund ......... 393,286 14.547287 5,721,244 44%
</TABLE>
(continued)
21
<PAGE> 21
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Strategic Growth Fund ...... 211,257 21.171385 4,472,603 85%
Nationwide SAT - Strategic Value Fund ....... 96,106 9.730781 935,186 (3)%
Nationwide SAT - Total Return Fund .......... 1,852,310 12.627200 23,389,489 7%
Neuberger & Berman AMT -
Guardian Portfolio ....................... 177,738 15.132896 2,689,691 15%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ................. 280,847 21.434231 6,019,739 54%
Neuberger & Berman AMT -
Partners Portfolio ....................... 582,704 11.188893 6,519,813 7%
Oppenheimer VAF -
Aggressive Growth Fund ................... 431,151 20.629873 8,894,590 84%
Oppenheimer VAF - Growth Fund ............... 618,285 17.565274 10,860,345 42%
Oppenheimer VAF -
Growth & Income Fund ..................... 460,733 12.743006 5,871,123 22%
Van Eck WIT -
Worldwide Emerging Markets Fund .......... 194,066 13.192491 2,560,214 100%
Van Eck WIT -
Worldwide Hard Assets Fund ............... 53,013 8.353043 442,820 21%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ......... 146,473 8.539870 1,250,860 (3)%
Warburg Pincus Trust -
Growth & Income Portfolio ................ 60,100 11.912913 715,966 6%
Warburg Pincus Trust -
International Equity Portfolio ........... 138,513 16.163464 2,238,850 53%
Warburg Pincus Trust -
Post Venture Capital Portfolio ........... 46,879 17.414110 816,356 63%
The BEST of AMERICA(R)
Corporate Variable Universal Life Series(SM:)
American Century VP -
Income & Growth .......................... 355,846 12.803106 4,555,934 18%
American Century VP - American
Century VP International ................. 204,837 15.960157 3,269,231 63%
American Century VP - American
Century VP Value ......................... 23,107 9.257533 213,914 (1)%
The Dreyfus Socially Responsible
Growth Fund, Inc. ........................ 28,931 14.439525 417,750 30%
Dreyfus Stock Index Fund .................... 3,707,136 13.249543 49,117,858 20%
Dreyfus VIF -
Capital Appreciation Portfolio ........... 843,808 12.239522 10,327,807 11%
Federated Insurance Series -
Quality Bond Fund II ..................... 18 9.842943 177 (2)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class ............................ 118,952 10.484615 1,247,166 6%
Fidelity VIP - Growth Portfolio -
Service Class ............................ 758,262 16.475102 12,492,444 37%
Fidelity VIP - High Income Portfolio -
Service Class ............................ 230,895 9.691447 2,237,707 8%
</TABLE>
22
<PAGE> 22
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Fidelity VIP - Overseas Portfolio -
Service Class ............................ 504,007 13.491426 6,799,773 42%
Fidelity VIP-II - Contrafund Portfolio -
Service Class ............................ 230,228 14.020034 3,227,804 24%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class ................ 125,424 11.671298 1,463,861 4%
Morgan Stanley Emerging Markets
Debt Portfolio ........................... 12,553 8.717559 109,432 29%
Nationwide SAT - Balanced Fund .............. 43,881 10.056111 441,272 0%
Nationwide SAT -
Capital Appreciation Fund ................ 65,598 11.623180 762,457 4%
Nationwide SAT - Equity Income Fund ......... 965 12.487973 12,051 18%
Nationwide SAT - Global Equity Fund ......... 468,148 12.702408 5,946,607 22%
Nationwide SAT - Government Bond Fund ....... 1,312,872 10.372218 13,617,395 (3)%
Nationwide SAT - High Income Bond Fund ...... 80,137 10.328712 827,712 3%
Nationwide SAT - Money Market Fund .......... 3,786,796 10.776865 40,809,789 4%
Nationwide SAT - Multi Sector Bond Fund ..... 460,632 10.106222 4,655,249 1%
Nationwide SAT -
Small Cap Growth Fund .................... 118 20.447188 2,413 104%(a)
Nationwide SAT -
Small Capital Value Fund ................. 8,548 10.925665 93,393 27%
Nationwide SAT - Small Company Fund ......... 72,698 12.991606 944,464 43%
Nationwide SAT - Strategic Growth Fund ...... 128,669 19.361969 2,491,285 84%
Nationwide SAT - Strategic Value Fund ....... 791 8.772237 6,939 (3)%
Nationwide SAT - Total Return Fund .......... 42,084 10.805244 454,728 7%
Neuberger & Berman AMT -
Guardian Portfolio ....................... 25,154 10.690765 268,916 14%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ................. 315,266 17.314889 5,458,796 53%
Neuberger & Berman AMT -
Partners Portfolio ....................... 94,285 9.985118 941,447 7%
Oppenheimer VAF -
Aggressive Growth Fund ................... 138,018 17.712996 2,444,712 83%
Oppenheimer VAF - Growth Fund ............... 188,390 15.039330 2,833,259 41%
Oppenheimer VAF -
Growth & Income Fund ..................... 97,691 10.835877 1,058,568 21%
Van Eck Worldwide Emerging
Markets Fund ............................. 10,044 12.613718 126,692 99%
Van Eck WIT Worldwide Hard
Assets Fund .............................. 252 8.246159 2,078 21%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ......... 38,697 8.593033 332,525 (4)%
Warburg Pincus Trust -
Growth & Income Portfolio ................ 42,745 10.519954 449,675 6%
Warburg Pincus Trust International
Equity Portfolio ......................... 3,445 13.593893 46,831 53%
</TABLE>
(Continued)
23
<PAGE> 23
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
<TABLE>
<CAPTION>
ANNUAL
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
Post Venture Capital Portfolio ........... 4,981 14.762349 73,531 63%
The BEST of AMERICA(R)
Corporate Variable Universal Life Series(SM):
Reduced Fee Tier:
American Century VP - American
Century VP Income & Growth ............... 55,124 11.518727 634,958 15%
American Century VP - American
Century VP International ................. 218 15.993145 3,487 60%
American Century VP - American
Century VP Value ......................... 946 10.286399 9,731 3%
Dreyfus Stock Index Fund .................... 1,242,820 11.428481 14,203,545 14%
Dreyfus VIF -
Capital Appreciation Portfolio ........... 117,874 10.726699 1,264,399 7%
Federated Insurance Series -
Quality Bond Fund II ..................... 1,129,926 9.862542 11,143,943 (1)%(a)
Fidelity VIP - Equity-Income Portfolio -
Service Class ............................ 59,030 10.389282 613,279 4%
Fidelity VIP - Overseas Portfolio -
Service Class ............................ 490 13.776193 6,750 38%
Nationwide SAT - Balanced Fund .............. 59,518 9.980828 594,039 0%
Nationwide SAT -
Capital Appreciation Fund ................ 234,561 10.320007 2,420,671 3%
Nationwide SAT - Global Equity Fund ......... 52,708 11.900760 627,265 19%
Nationwide SAT - Government Bond Fund ....... 59,316 9.890955 586,692 (1)%
Nationwide SAT - High Income Bond Fund ...... 594,118 9.952512 5,912,967 0%
Nationwide SAT - Money Market Fund .......... 4,669,469 10.357933 48,366,047 4%
Nationwide SAT - Multi Sector Bond Fund ..... 232,330 10.168791 2,362,515 2%
Nationwide SAT - Small Company Fund ......... 434,818 14.816849 6,442,633 48%
Nationwide SAT - Strategic Growth Fund ...... 240,293 16.450708 3,952,990 65%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ................. 44,838 15.726546 705,147 57%
Oppenheimer VAF -
Aggressive Growth Fund ................... 850 16.605768 14,115 66%
======== ========= -------------
$ 648,293,593
=============
</TABLE>
(a) Non-annualized. The return was computed for the period 9/27/99, 5/03/99
and 5/03/99 (effective dates) through 12/31/99 for Dreyfus VIF - European
Equities Fund, Federated Insurance Series - Federated Quality Bond Fund
II, and Nationwide SAT - Small Cap Growth Fund, respectively.
(b) The annual return does not include contract charges satisfied by
surrending units.(Continued)#NATIONWIDE VLI SEPARATE ACCOUNT-4
24
<PAGE> 24
Independent Auditors' Report
----------------------------
The Board of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide VLI Separate Account-4:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide VLI Separate Account-4 (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, and the related statements of operations and changes in contract
owners' equity for the year then ended and for the period February 18, 1998
(commencement of operations) through December 31, 1998. These financial
statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners'
equity for the year then ended and for the period February 18, 1998
(commencement of operations) through December 31, 1998, in conformity with
generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
25
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27
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--------------
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
