<PAGE> 1
Nationwide(R) VLI
Separate Account-4
June 30, 2000
[THE BEST OF AMERICA(R) America's FUTURE Life Series(SM) Logo]
2000
SEMI-ANNUAL REPORT
[LOGO NATIONWIDE]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
VLOB-0161-D (06/00)
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[LOGO NATIONWIDE]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you
the 2000 semi-annual report of the Nationwide VLI Separate
Account-4.
During the first half of 2000 fixed income and equity markets
took a hiatus from their recent advances. It appears the Federal
Reserve's interest rate hikers are accomplishing the intended
purpose. Recent economic statistics show some moderation in the
areas of home and vehicles sales because of the higher interest
costs. And, there are other favorable indications that the Fed
may yet "glide" the economy to a soft landing. Inflation remains
low. Sustained increases in worker productivity continue to
dampen pricing pressures of an increasingly tight labor pool.
Corporate profitability growth remains viable. An improving
global economy bodes well for U.S. exporting businesses. While
all this provides a positive backdrop, we expect the markets will
continue jittery and volatile during the second half of the year
as uncertainty over further Fed actions persists. However, we
believe patient investors in financial assets will be amply
rewarded when we move beyond this temporary respite.
Nationwide Life was a forerunner in the variable annuity and
variable life insurance business. We continue to develop new and
innovative investment products to better meet your financial
planning and retirement needs. And, we are equally committed to
providing you, our valued customer, the exceptional level of
customer service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 16, 2000
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HOW TO READ THE SEMI-ANNUAL REPORT
This semi-annual report is a presentation of the variable account as a whole and
only describes the underlying contracts and products of the variable account in
general terms. Please note the variable account may have more than one variable
product available. Such products may have different under- lying mutual funds
available than those available in your contract. Therefore, not all funds listed
in this report may be available in your contract. Please refer to your most
recent account statement for specific information about your investment in the
Nationwide VLI Separate Account-4. Rules and regulations of the United States
Securities and Exchange Commission and recognized conventions of Generally
Accepted Accounting Principals prescribe the format and content of this report.
We also invite you to call our service center at 1-877-351-8808 if you have
questions about your account, or you may access your account using our voice
response unit. And, please visit our web-site at www.bestofamerica.com for
additional information about your contract and to learn more about other
products and services offered by Nationwide Financial.
THE ANNUAL REPORT HAS FOUR MAJOR FINANCIAL SECTIONS:
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNER'S EQUITY
This statement begins on page 6 and lists all of the underlying mutual funds of
the variable account, the number of shares owned, the amount paid for the
shares and their market value as of the close of business on June 30, 2000. The
mutual funds are listed in alphabetical order. The market value of the assets
changes as the underlying mutual funds change in value. As contract owners make
exchange transactions between the funds, the number of shares increases or
decreases accordingly. When money is deposited or withdrawn by a contract
owner, shares are correspondingly purchased or redeemed. The total market value
of the funds is equal to the TOTAL INVESTMENTS of the variable account.
ACCOUNTS RECEIVABLE, if applicable, represents an asset of the variable account
for money market fund shares purchased by contract owners and reinvested
dividend shares added to contract owners' accounts, but not yet added to Total
investments. Total investments plus Accounts receivable equal TOTAL ASSETS of
the variable account.
ACCOUNTS PAYABLE, if applicable, is a liability of the variable account for
money market fund shares redeemed by contract owners' but not yet deducted from
Total investments.
Total assets minus Accounts payable equals CONTRACT OWNERS' EQUITY. A summary of
Contract owners' equity by funds series may be found on page 30. This summary
also includes investment return for the reporting period for each fund series.
STATEMENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
These statements begin on page 9 and present the financial activity of each
underlying mutual fund sub-account of the variable account, for the periods
indicated.
The INVESTMENT ACTIVITY section shows income to the variable account for
reinvested dividends and capital gain distributions paid by the underlying
mutual funds. Also shown are the mortality, expense and administration charges
which are assessed through the daily unit value calculation and which represent
an expense to the variable account and its contract owners. This section also
shows the realized gain or loss as mutual fund shares are sold, and the change
in unrealized gain or loss, which represents the changes in market value of the
underlying fund shares.
The EQUITY TRANSACTIONS section illustrates the receipt of purchase payments, as
new contracts are sold or additional payments made to existing contracts. Also
presented are deductions from the variable account when the contract owners
withdraw money.
The sum of the above two sections represents the NET CHANGE IN CONTRACT OWNERS'
EQUITY which when added to the beginning Contract owners' equity equals Contract
owners' equity at the end of the reporting period.
NOTES TO FINANCIAL STATEMENTS, beginning on page 26, provide further disclosures
about the variable account and its underlying contract provisions.
5
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--------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Income & Growth (ACVPIncGr)
2,456,365 shares (cost $18,540,316) ......................................................... $ 18,840,319
American Century VP - American Century VP International (ACVPInt)
2,875,758 shares (cost $33,873,475) ......................................................... 33,243,761
American Century VP - American Century VP Value (ACVPValue)
631,724 shares (cost $3,492,782) ............................................................ 3,423,943
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGr)
341,322 shares (cost $12,415,288) ........................................................... 13,673,346
Dreyfus Stock Index Fund (DryStkIx)
4,570,932 shares (cost $164,231,086) ........................................................ 173,786,834
Dreyfus VIF - Appreciation Portfolio (DryVApp)
671,707 shares (cost $25,981,255) ........................................................... 27,526,562
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
58,605 shares (cost $944,057) ............................................................... 930,644
Federated Insurance Series - Quality Bond Fund II (FedQualBd2)
3,039,006 shares (cost $29,772,877) ......................................................... 30,420,450
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVEqInS)
929,076 shares (cost $22,615,185) ........................................................... 21,229,395
Fidelity VIP - Growth Portfolio - Service Class (FidVGrS)
1,534,154 shares (cost $75,421,512) ......................................................... 78,840,188
Fidelity VIP - High Income Portfolio - Service Class (FidVHiInS)
1,665,340 shares (cost $17,868,160) ......................................................... 16,670,049
Fidelity VIP - Overseas Portfolio - Service Class (FidVOvSeS)
1,001,828 shares (cost $23,916,227) ......................................................... 23,462,803
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVConS)
1,518,389 shares (cost $38,409,438) ......................................................... 38,005,289
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVGrOpS)
619,655 shares (cost $13,528,498) ........................................................... 12,752,503
Janus Aspen Series - Capital Appreciation Portfolio - Service Shares (JanACapApS)
303,460 shares (cost $10,018,242) ........................................................... 9,534,717
Janus Aspen Series - Global Technology Portfolio - Service Shares (JanAGlTchS)
1,330,830 shares (cost $13,523,549) ......................................................... 13,068,749
Janus Aspen Series - International Growth Portfolio - Service Shares (JanAIntGrS)
229,700 shares (cost $9,645,116) ............................................................ 9,038,695
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
177,821 shares (cost $1,270,787) ............................................................ 1,308,760
</TABLE>
6
<PAGE> 6
<TABLE>
<CAPTION>
<S> <C>
Morgan Stanley - Mid Cap Growth Portfolio (MSMidCapGr)
1,537 shares (cost $22,581) ................................................................. 22,476
Nationwide SAT - Balanced Fund (NSATBal)
620,027 shares (cost $6,433,649) ............................................................ 6,466,884
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
1,005,194 shares (cost $26,503,272) ......................................................... 25,994,323
Nationwide SAT - Equity Income Fund (NSATEqInc)
121,709 shares (cost $1,582,842) ............................................................ 1,669,842
Nationwide SAT - Global 50 Fund (NSATGlob50)
1,833,864 shares (cost $24,255,568) ......................................................... 25,105,601
Nationwide SAT - Government Bond Fund (NSATGvtBd)
3,035,230 shares (cost $33,230,229) ......................................................... 33,053,655
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
1,100,542 shares (cost $10,386,761) ......................................................... 9,816,831
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
184,823 shares (cost $2,375,395) ............................................................ 2,456,298
Nationwide SAT - Money Market Fund (NSATMMkt)
134,432,296 shares (cost $134,432,296) ...................................................... 134,432,296
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
2,380,845 shares (cost $22,342,737) ......................................................... 22,118,054
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
223,631 shares (cost $3,612,548) ............................................................ 4,631,397
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
975,365 shares (cost $9,909,380) ............................................................ 10,524,189
Nationwide SAT - Small Company Fund (NSATSmCo)
1,035,658 shares (cost $21,972,202) ......................................................... 24,648,654
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
1,110,909 shares (cost $23,160,419) ......................................................... 23,851,207
Nationwide SAT - Strategic Value Fund (NSATStrVal)
116,685 shares (cost $1,150,819) ............................................................ 1,079,335
Nationwide SAT - Total Return Fund (NSATTotRtn)
1,490,937 shares (cost $27,993,480) ......................................................... 28,909,275
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
210,771 shares (cost $3,263,032) ............................................................ 3,443,996
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
998,036 shares (cost $25,729,372) ........................................................... 27,346,189
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
480,118 shares (cost $8,397,310) ............................................................ 7,667,491
Oppenheimer Aggressive Growth Fund/VA (OppAggGrVA)
455,756 shares (cost $40,193,827) ........................................................... 44,044,226
Oppenheimer Capital Appreciation Fund/VA (OppCapApVA)
556,147 shares (cost $26,535,488) ........................................................... 28,441,381
Oppenheimer Global Securities Fund/VA (OppGlSecVA)
27,408 shares (cost $822,829) ............................................................... 875,670
</TABLE>
(Continued)
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NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY CONTINUED
<TABLE>
<CAPTION>
<S> <C>
Oppenheimer Growth & Income Fund/VA (OppMGrInVA)
609,365 shares (cost $14,031,813) ........................................................... 14,228,667
Strong Opportunity Fund II, Inc. (StOpp2)
57,280 shares (cost $1,580,973) ............................................................. 1,549,414
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
359,753 shares (cost $4,623,304) ............................................................ 4,493,320
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
54,767 shares (cost $613,706) ............................................................... 616,672
Van Kampen LIT -
Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
261,144 shares (cost $3,412,126) ............................................................ 3,515,001
Warburg Pincus Trust - Global Post - Venture Capital Portfolio (WPGlPVenCp)
78,005 shares (cost $1,504,669) ............................................................. 1,577,255
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
174,474 shares (cost $2,408,097) ............................................................ 2,658,979
Warburg Pincus Trust - Value Portfolio (WPValue)
147,121 shares (cost $1,718,319) ............................................................ 1,706,603
---------------
Total investments ........................................................................ 1,022,702,188
Accounts receivable ............................................................................... 78,121
---------------
Total assets ............................................................................. 1,022,780,309
ACCOUNTS PAYABLE...................................................................................... -
---------------
CONTRACT OWNERS' EQUITY (NOTE 7) ..................................................................... $ 1,022,780,309
===============
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
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<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Total
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 9,432,275 2,559,662 83,937
Mortality and expense charges
(note 3) .......................... (610,755) (93,868) (10,289)
--------------- --------------- ---------------
Net investment income ............. 8,821,520 2,465,794 73,648
--------------- --------------- ---------------
Proceeds from mutual fund
shares sold ....................... 251,035,204 44,164,640 2,519,975
Cost of mutual fund shares sold ..... (235,806,554) (43,669,232) (2,517,456)
--------------- --------------- ---------------
Realized gain (loss)
on investments ................. 15,228,650 495,408 2,519
Change in unrealized gain (loss)
on investments .................... (25,741,208) 11,542,778 76,508
--------------- --------------- ---------------
Net gain (loss) on investments .... (10,512,558) 12,038,186 79,027
--------------- --------------- ---------------
Reinvested capital gains ............ 16,889,979 1,619,138 12,598
--------------- --------------- ---------------
Net increase (decrease) in
contract owners' equity
resulting from operations .... 15,198,941 16,123,118 165,273
--------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................... 396,524,115 156,401,203 18,500,157
Transfers between funds ............. -- -- (1,152)
Surrenders .......................... (4,999,527) (322,152) --
Death benefits ...................... 30,462 (44,682) --
Policy loans (net of repayments)
(note 5) .......................... (4,348,375) (2,087,373) (23,672)
Deductions for surrender charges
(note 2d) ......................... (616,957) (73,956) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................. (26,219,991) (10,788,592) (441,186)
Asset charges (note 3):
FPVUL & VEL contracts ............. (861,585) (332,433) (3,903)
MSP contracts ..................... (150,108) (16,462) --
SL contracts ...................... (70,259) (10,906) --
--------------- --------------- ---------------
Net equity transactions ........ 359,287,775 142,724,647 18,030,244
--------------- --------------- ---------------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 374,486,716 158,847,765 18,195,517
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD .................. 648,293,593 107,989,704 --
--------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD .. $ 1,022,780,309 266,837,469 18,195,517
=============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
ACVPIncGr
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 89,434 345 --
Mortality and expense charges
(note 3) .......................... (15,039) (451) (16)
--------------- --------------- ---------------
Net investment income ............. 74,395 (106) (16)
--------------- --------------- ---------------
Proceeds from mutual fund
shares sold ....................... 1,411,226 314,418 273
Cost of mutual fund shares sold ..... (1,394,799) (259,983) (269)
--------------- --------------- ---------------
Realized gain (loss)
on investments ................. 16,427 54,435 4
Change in unrealized gain (loss)
on investments .................... (517,517) 194,869 207
--------------- --------------- ---------------
Net gain (loss) on investments .... (501,090) 249,304 211
--------------- --------------- ---------------
Reinvested capital gains ............ -- -- --
--------------- --------------- ---------------
Net increase (decrease) in
contract owners' equity
resulting from operations .... (426,695) 249,198 195
--------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................... 4,880,230 512,140 1,661
Transfers between funds ............. 2,948,535 2,084,556 9,171
Surrenders .......................... (146,295) (3,296) --
Death benefits ...................... -- -- --
Policy loans (net of repayments)
(note 5) .......................... (33,642) (89,687) --
Deductions for surrender charges
(note 2d) ......................... (18,053) (757) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................. (480,340) (108,639) (678)
Asset charges (note 3):
FPVUL & VEL contracts ............. (14,181) (4,382) --
MSP contracts ..................... (2,678) (285) --
SL contracts ...................... (2,166) (120) --
--------------- --------------- ---------------
Net equity transactions ........ 7,131,410 2,389,529 10,154
--------------- --------------- ---------------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 6,704,715 2,638,727 10,349
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD .................. 12,134,845 1,235,436 --
--------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD .. $ 18,839,560 3,874,163 10,349
=============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
ACVPInt
-----------------------------------------------------
2000 1999 1998
--------------- --------------- ---------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 29,817 -- 355
Mortality and expense charges
(note 3) .......................... (15,957) (328) (159)
--------------- --------------- ---------------
Net investment income ............. 13,860 (328) 196
--------------- --------------- ---------------
Proceeds from mutual fund
shares sold ....................... 5,786,603 159,686 64,097
Cost of mutual fund shares sold ..... (3,784,053) (166,796) (61,854)
--------------- --------------- ---------------
Realized gain (loss)
on investments ................. 2,002,550 (7,110) 2,243
Change in unrealized gain (loss)
on investments .................... (4,821,209) 272,790 8,220
--------------- --------------- ---------------
Net gain (loss) on investments .... (2,818,659) 265,680 10,463
--------------- --------------- ---------------
Reinvested capital gains ............ 445,799 -- 3,645
--------------- --------------- ---------------
Net increase (decrease) in
contract owners' equity
resulting from operations .... (2,359,000) 265,352 14,304
--------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................... 8,496,880 664,116 132,213
Transfers between funds ............. 12,490,972 2,059,973 83,098
Surrenders .......................... (66,234) (268) --
Death benefits ...................... (239) (962) --
Policy loans (net of repayments)
(note 5) .......................... (102,825) (962) --
Deductions for surrender charges
(note 2d) ......................... (8,173) (61) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................. (617,950) (189,529) (2,933)
Asset charges (note 3):
FPVUL & VEL contracts ............. (27,743) (7,695) (6)
MSP contracts ..................... (3,234) (353) --
SL contracts ...................... (2,741) (42) --
--------------- --------------- ---------------
Net equity transactions ........ 20,158,713 2,524,217 212,372
--------------- --------------- ---------------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 17,799,713 2,789,569 226,676
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD .................. 15,455,228 2,478,773 --
--------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD .. $ 33,254,941 5,268,342 226,676
=============== =============== ===============
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPValue DrySRGr
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 29,260 9,053 168 1,657 -- --
Mortality and expense charges
(note 3) ......................... (901) (249) (51) (1,993) (99) (122)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 28,359 8,804 117 (336) (99) (122)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,926,834 295,226 534 628,180 120,939 1,346
Cost of mutual fund shares sold .... (3,136,420) (284,769) (545) (468,376) (108,188) (1,257)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (209,586) 10,457 (11) 159,804 12,751 89
Change in unrealized gain (loss)
on investments ................... 44,924 32,019 (2,244) 247,896 279,024 6,892
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (164,662) 42,476 (2,255) 407,700 291,775 6,981
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... 74,870 85,768 1,997 -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (61,433) 137,048 (141) 407,364 291,676 6,859
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,219,547 176,091 32,868 2,576,367 832,645 87,657
Transfers between funds ............ 501,403 322,081 33,857 2,900,985 1,226,600 70,981
Surrenders ......................... (95,479) (304) -- (39,840) (1,662) --
Death benefits ..................... -- -- -- 18,054 -- --
Policy loans (net of repayments)
(note 5) ......................... (2,233) (3,899) -- (86,551) (3,215) --
Deductions for surrender charges
(note 2d) ........................ (11,782) (70) -- (4,916) (381) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (103,772) (52,837) (1,189) (574,232) (169,150) (3,968)
Asset charges (note 3):
FPVUL & VEL contracts ............ (4,410) (2,095) -- (21,326) (5,631) (9)
MSP contracts .................... (360) (19) -- (1,627) (150) --
SL contracts ..................... (273) (25) -- (1,077) (64) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 1,502,641 438,923 65,536 4,765,837 1,878,992 154,661
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 1,441,208 575,971 65,395 5,173,201 2,170,668 161,520
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,983,372 626,960 -- 8,500,092 1,371,928 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 3,424,580 1,202,931 65,395 13,673,293 3,542,596 161,520
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
DryStkIx
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 771,912 189,209 4,686
Mortality and expense charges
(note 3) ......................... (128,829) (11,188) (395)
------------ ------------ ------------
Net investment income ............ 643,083 178,021 4,291
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 10,608,231 291,895 265
Cost of mutual fund shares sold .... (8,027,040) (262,192) (248)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 2,581,191 29,703 17
Change in unrealized gain (loss)
on investments ................... (3,016,509) 2,927,568 16,966
------------ ------------ ------------
Net gain (loss) on investments ... (435,318) 2,957,271 16,983
------------ ------------ ------------
Reinvested capital gains ........... 168,748 117,757 2,002
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 376,513 3,253,049 23,276
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 29,080,494 6,615,300 206,258
Transfers between funds ............ 27,911,305 20,648,078 568,680
Surrenders ......................... (595,139) (45,916) --
Death benefits ..................... 13,904 (5,779) --
Policy loans (net of repayments)
(note 5) ......................... (291,193) (49,573) --
Deductions for surrender charges
(note 2d) ........................ (73,442) (10,541) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (3,880,162) (1,371,572) (16,990)
Asset charges (note 3):
FPVUL & VEL contracts ............ (126,887) (49,022) (127)
MSP contracts .................... (21,350) (2,060) --
SL contracts ..................... (9,942) (623) --
------------ ------------ ------------
Net equity transactions ....... 52,007,588 25,728,292 757,821
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 52,384,101 28,981,341 781,097
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 121,419,884 14,374,570 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $173,803,985 43,355,911 781,097
============ ============ ============
</TABLE>
10
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DryVApp DryEuroEq
-------------------------------------------- -------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 1,274 266 -- -- -- --
Mortality and expense charges
(note 3) ......................... (27,403) (4,053) (50) (282) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ (26,129) (3,787) (50) (282) -- --
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,447,416 176,810 320 2,289,522 -- --
Cost of mutual fund shares sold .... (2,312,847) (156,849) (307) (2,289,687) -- --
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 134,569 19,961 13 (165) -- --
Change in unrealized gain (loss)
on investments ................... 745,226 389,360 1,699 (23,409) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 879,795 409,321 1,712 (23,574) -- --
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- 23,556 -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 853,666 405,534 1,662 (300) -- --
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 7,390,144 1,038,097 36,429 38,382 -- --
Transfers between funds ............ 1,032,936 5,451,223 27,018 768,823 -- --
Surrenders ......................... (30,647) (422) -- -- -- --
Death benefits ..................... -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (35,082) (13,901) -- (10) -- --
Deductions for surrender charges
(note 2d) ........................ (3,782) (97) -- -- -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (587,615) (230,341) (2,171) (10,115) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (15,860) (6,124) (14) (444) -- --
MSP contracts .................... (2,599) (531) -- (26) -- --
SL contracts ..................... (524) (205) -- (99) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 7,746,971 6,237,699 61,262 796,511 -- --
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 8,600,637 6,643,233 62,924 796,211 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 18,925,797 1,548,425 -- 134,673 -- --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 27,526,434 8,191,658 62,924 930,884 -- --
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FedQualBd2
-------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 284,124 -- --
Mortality and expense charges
(note 3) ......................... (13,377) -- --
------------ ------------ ------------
Net investment income ............ 270,747 -- --
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,971,626 -- --
Cost of mutual fund shares sold .... (2,938,819) -- --
------------ ------------ ------------
Realized gain (loss)
on investments ................ 32,807 -- --
Change in unrealized gain (loss)
on investments ................... 607,373 -- --
------------ ------------ ------------
Net gain (loss) on investments ... 640,180 -- --
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 910,927 -- --
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 5,330,864 -- --
Transfers between funds ............ 13,190,414 1,849 --
Surrenders ......................... -- -- --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (1,402) -- --
Deductions for surrender charges
(note 2d) ........................ -- -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (192,865) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (507) -- --
MSP contracts .................... (235) -- --
SL contracts ..................... (78) -- --
------------ ------------ ------------
Net equity transactions ....... 18,326,191 1,849 --
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 19,237,118 1,849 --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 11,183,320 -- --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 30,420,438 1,849 --
============ ============ ============
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVEqInS FidVGrS
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 275,597 97,065 -- 46,538 8,639 --
Mortality and expense charges
(note 3) ......................... (4,713) (880) (290) (43,465) (1,047) (104)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 270,884 96,185 (290) 3,073 7,592 (104)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 3,837,286 538,948 598 3,558,623 549,969 148
Cost of mutual fund shares sold .... (3,966,529) (515,249) (584) (2,889,389) (491,307) (140)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (129,243) 23,699 14 669,234 58,662 8
Change in unrealized gain (loss)
on investments ................... (1,557,513) 671,783 645 (3,155,891) 396,062 7,596
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (1,686,756) 695,482 659 (2,486,657) 454,724 7,604
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... 1,063,019 214,564 -- 5,556,689 543,154 --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (352,853) 1,006,231 369 3,073,105 1,005,470 7,500
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 3,993,529 1,566,458 133,058 18,575,862 2,261,598 57,519
Transfers between funds ............ 2,723,827 3,062,490 416,247 17,620,210 6,908,299 187,661
Surrenders ......................... (149,204) (42,023) -- (241,037) (16,552) --
Death benefits ..................... (6,617) -- -- (2,397) -- --
Policy loans (net of repayments)
(note 5) ......................... (234,587) (16,338) -- (330,794) (31,688) --
Deductions for surrender charges
(note 2d) ........................ (18,412) (9,647) -- (29,745) (3,800) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (722,256) (473,507) (12,521) (2,171,140) (520,436) (6,160)
Asset charges (note 3):
FPVUL & VEL contracts ............ (30,710) (17,897) (39) (76,791) (16,801) (68)
MSP contracts .................... (1,812) (189) -- (10,608) (760) --
SL contracts ..................... (2,792) (584) -- (5,332) (425) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 5,550,966 4,068,763 536,745 33,328,228 8,579,435 238,952
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 5,198,113 5,074,994 537,114 36,401,333 9,584,906 246,452
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 16,041,167 5,769,362 -- 42,427,286 3,567,895 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 21,239,280 10,844,356 537,114 78,828,619 13,152,801 246,452
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVHiInS
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 711,532 364,862 --
Mortality and expense charges
(note 3) ......................... (9,924) (45) (235)
------------ ------------ ------------
Net investment income ............ 701,608 364,817 (235)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 1,661,700 363,495 203
Cost of mutual fund shares sold .... (1,763,880) (409,632) (198)
------------ ------------ ------------
Realized gain (loss)
on investments ................ (102,180) (46,137) 5
Change in unrealized gain (loss)
on investments ................... (1,338,470) (20,396) 4
------------ ------------ ------------
Net gain (loss) on investments ... (1,440,650) (66,533) 9
------------ ------------ ------------
Reinvested capital gains ........... -- 13,640 --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (739,042) 311,924 (226)
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 5,239,754 705,210 199,669
Transfers between funds ............ 3,951,672 1,419,320 153,686
Surrenders ......................... (451,963) (8,278) --
Death benefits ..................... -- (3,510) --
Policy loans (net of repayments)
(note 5) ......................... (44,476) (3,888) --
Deductions for surrender charges
(note 2d) ........................ (55,774) (1,901) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (323,647) (203,503) (7,813)
Asset charges (note 3):
FPVUL & VEL contracts ............ (11,457) (7,794) (12)
MSP contracts .................... (1,783) (286) --
SL contracts ..................... (1,373) (147) --
------------ ------------ ------------
Net equity transactions ....... 8,300,953 1,895,223 345,530
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 7,561,911 2,207,147 345,304
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 9,103,964 3,524,476 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 16,665,875 5,731,623 345,304
============ ============ ============
</TABLE>
12
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVOvSeS FidVConS
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 217,766 21,110 -- 93,712 26,713 --
Mortality and expense charges
(note 3) ......................... (21,839) (3,330) (84) (10,634) (281) (206)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 195,927 17,780 (84) 83,078 26,432 (206)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 12,769,255 1,996,357 743 949,908 387,570 931
Cost of mutual fund shares sold .... (12,774,643) (1,902,122) (725) (711,239) (340,408) (902)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (5,388) 94,235 18 238,669 47,162 29
Change in unrealized gain (loss)
on investments ................... (2,371,398) 215,378 (696) (4,058,941) 538,717 16,287
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (2,376,786) 309,613 (678) (3,820,272) 585,879 16,316
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... 1,409,432 34,048 -- 3,401,735 195,897 --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (771,427) 361,441 (762) (335,459) 808,208 16,110
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 5,972,565 263,487 29,968 6,356,018 2,006,414 124,447
Transfers between funds ............ 5,696,777 3,449,111 70,326 9,171,009 4,828,912 352,366
Surrenders ......................... (36,749) (134) -- (194,316) (13,617) --
Death benefits ..................... (9,309) -- -- (8,967) (3,073) --
Policy loans (net of repayments)
(note 5) ......................... (49,578) (3,333) -- (176,404) (9,438) --
Deductions for surrender charges
(note 2d) ........................ (4,535) (31) -- (23,979) (3,126) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (420,955) (105,852) (3,532) (1,319,752) (467,740) (8,898)
Asset charges (note 3):
FPVUL & VEL contracts ............ (12,353) (3,446) (12) (52,628) (17,574) (51)
MSP contracts .................... (4,092) (133) -- (6,000) (429) --
SL contracts ..................... (1,077) (134) -- (2,112) (171) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 11,130,694 3,599,535 96,750 13,742,869 6,320,158 467,864
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 10,359,267 3,960,976 95,988 13,407,410 7,128,366 483,974
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 13,105,151 1,074,715 -- 24,600,286 4,744,546 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 23,464,418 5,035,691 95,988 38,007,696 11,872,912 483,974
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVGrOpS
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 125,878 28,246 --
Mortality and expense charges
(note 3) ......................... (4,248) (309) (71)
------------ ------------ ------------
Net investment income ............ 121,630 27,937 (71)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 1,196,438 148,702 386
Cost of mutual fund shares sold .... (1,149,693) (138,969) (377)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 46,745 9,733 9
Change in unrealized gain (loss)
on investments ................... (1,175,929) 237,759 2,047
------------ ------------ ------------
Net gain (loss) on investments ... (1,129,184) 247,492 2,056
------------ ------------ ------------
Reinvested capital gains ........... 662,022 55,207 --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (345,532) 330,636 1,985
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,248,241 1,032,001 41,926
Transfers between funds ............ 1,226,971 2,700,468 102,131
Surrenders ......................... (34,444) (11,730) --
Death benefits ..................... (6,863) (5,534) --
Policy loans (net of repayments)
(note 5) ......................... (41,756) (3,328) --
Deductions for surrender charges
(note 2d) ........................ (4,251) (2,693) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (477,525) (219,814) (3,512)
Asset charges (note 3):
FPVUL & VEL contracts ............ (18,987) (8,628) (34)
MSP contracts .................... (1,587) (465) --
SL contracts ..................... (1,510) (656) --
------------ ------------ ------------
Net equity transactions ....... 2,888,289 3,479,621 140,511
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 2,542,757 3,810,257 142,496
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 10,194,072 2,419,614 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 12,736,829 6,229,871 142,496
============ ============ ============
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
JanACapApS JanAGlTchS
------------------------------------------- -------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 3,832 -- -- -- -- --
Mortality and expense charges
(note 3) ......................... (428) -- -- (844) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 3,404 -- -- (844) -- --
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 168,690 -- -- 944,554 -- --
Cost of mutual fund shares sold .... (168,094) -- -- (969,925) -- --
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 596 -- -- (25,371) -- --
Change in unrealized gain (loss)
on investments ................... (483,525) -- -- (454,800) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (482,929) -- -- (480,171) -- --
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (479,525) -- -- (481,015) -- --
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,432,701 -- -- 2,311,477 -- --
Transfers between funds ............ 8,796,661 -- -- 11,490,449 -- --
Surrenders ......................... (10,876) -- -- (7,387) -- --
Death benefits ..................... -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (33,404) -- -- (21,467) -- --
Deductions for surrender charges
(note 2d) ........................ (1,342) -- -- (912) -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (162,848) -- -- (217,644) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (6,939) -- -- (8,487) -- --
MSP contracts .................... (686) -- -- (1,768) -- --
SL contracts ..................... (190) -- -- (149) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 10,013,077 -- -- 13,544,112 -- --
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 9,533,552 -- -- 13,063,097 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 9,533,552 -- -- 13,063,097 -- --
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
JanAIntGrS
-------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- --
Mortality and expense charges
(note 3) ......................... (1,131) -- --
------------ ------------ ------------
Net investment income ............ (1,131) -- --
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 1,179,911 -- --
Cost of mutual fund shares sold .... (1,162,710) -- --
------------ ------------ ------------
Realized gain (loss)
on investments ................ 17,201 -- --
Change in unrealized gain (loss)
on investments ................... (606,421) -- --
------------ ------------ ------------
Net gain (loss) on investments ... (589,220) -- --
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (590,351) -- --
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 976,080 -- --
Transfers between funds ............ 8,799,640 -- --
Surrenders ......................... (10,798) -- --
Death benefits ..................... (930) -- --
Policy loans (net of repayments)
(note 5) ......................... 466 -- --
Deductions for surrender charges
(note 2d) ........................ (1,333) -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (128,136) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (5,657) -- --
MSP contracts .................... (463) -- --
SL contracts ..................... (110) -- --
------------ ------------ ------------
Net equity transactions ....... 9,628,759 -- --
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 9,038,408 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. -- -- --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 9,038,408 -- --
============ ============ ============
</TABLE>
14
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
MSEmMkt MSMidCapGr
-------------------------------------------- -------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- -- -- --
Mortality and expense charges
(note 3) ......................... (440) (6) (9) (6) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ (440) (6) (9) (6) -- --
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 496,119 41,666 669 263,466 -- --
Cost of mutual fund shares sold .... (465,395) (39,559) (670) (239,516) -- --
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 30,724 2,107 (1) 23,950 -- --
Change in unrealized gain (loss)
on investments ................... 24,341 34,614 (791) (106) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 55,065 36,721 (792) 23,844 -- --
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 54,625 36,716 (801) 23,838 -- --
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 245,388 37,535 9,498 116 -- --
Transfers between funds ............ 351,382 240,333 5,908 (945) -- --
Surrenders ......................... (5) (12) -- -- -- --
Death benefits ..................... -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (2,123) (298) -- -- -- --
Deductions for surrender charges
(note 2d) ........................ (1) (3) -- -- -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (29,307) (11,298) (406) (530) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (1,277) (492) (4) (4) -- --
MSP contracts .................... (22) (1) -- -- -- --
SL contracts ..................... (119) -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 563,916 265,763 14,996 (1,363) -- --
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 618,541 302,479 14,195 22,475 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 689,792 157,510 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 1,308,333 459,989 14,195 22,475 -- --
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATBal
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 91,156 25,497 629
Mortality and expense charges
(note 3) ......................... (2,351) (271) (53)
------------ ------------ ------------
Net investment income ............ 88,805 25,226 576
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 3,826,706 100,061 203
Cost of mutual fund shares sold .... (3,773,344) (95,076) (202)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 53,362 4,985 1
Change in unrealized gain (loss)
on investments ................... 43,492 51,109 (151)
------------ ------------ ------------
Net gain (loss) on investments ... 96,854 56,094 (150)
------------ ------------ ------------
Reinvested capital gains ........... -- 24 --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 185,659 81,344 426
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 785,575 283,243 42,101
Transfers between funds ............ 2,238,788 736,828 33,676
Surrenders ......................... (58,259) (2,842) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (11,658) (1,766) --
Deductions for surrender charges
(note 2d) ........................ (7,189) (652) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (131,283) (72,021) (896)
Asset charges (note 3):
FPVUL & VEL contracts ............ (4,811) (2,474) (1)
MSP contracts .................... (1,193) (166) --
SL contracts ..................... (805) (134) --
------------ ------------ ------------
Net equity transactions ....... 2,809,165 940,016 74,880
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 2,994,824 1,021,360 75,306
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 3,483,413 731,439 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 6,478,237 1,752,799 75,306
============ ============ ============
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATCapAp NSATEqInc
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 41,174 29,197 718 4,901 831 5
Mortality and expense charges
(note 3) ......................... (4,597) (482) (178) (185) (52) (1)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 36,577 28,715 540 4,716 779 4
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 4,569,789 245,412 258 190,358 40,779 --
Cost of mutual fund shares sold .... (4,887,807) (238,207) (245) (156,451) (36,588) --
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (318,018) 7,205 13 33,907 4,191 --
Change in unrealized gain (loss)
on investments ................... 659,483 1,215,972 9,642 (12,135) 26,837 52
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 341,465 1,223,177 9,655 21,772 31,028 52
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- -- 202 --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 378,042 1,251,892 10,195 26,488 32,009 56
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 4,208,447 2,213,028 116,824 124,596 41,817 258
Transfers between funds ............ 1,585,624 4,024,027 255,494 675,922 128,384 2,605
Surrenders ......................... (185,074) (39,415) -- (4,679) (28) --
Death benefits ..................... 12,810 (1,334) -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (166,194) (41,758) -- (16,816) -- --
Deductions for surrender charges
(note 2d) ........................ (22,839) (9,049) -- (577) (7) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (1,155,411) (644,801) (12,442) (54,152) (17,230) (142)
Asset charges (note 3):
FPVUL & VEL contracts ............ (41,598) (21,904) (64) (2,089) (696) --
MSP contracts .................... (2,475) (336) -- (267) (1) --
SL contracts ..................... (2,374) (476) -- (251) (13) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 4,230,916 5,477,982 359,812 721,687 152,226 2,721
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 4,608,958 6,729,874 370,007 748,175 184,236 2,777
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 21,395,819 6,313,574 -- 921,674 244,014 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 26,004,777 13,043,448 370,007 1,669,849 428,250 2,777
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATGlob50
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 199,386 8,358 163
Mortality and expense charges
(note 3) ......................... (15,219) (470) (23)
------------ ------------ ------------
Net investment income ............ 184,167 7,888 140
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 1,709,814 30,576 345
Cost of mutual fund shares sold .... (1,557,031) (29,256) (343)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 152,783 1,320 2
Change in unrealized gain (loss)
on investments ................... (185,548) 57,525 (82)
------------ ------------ ------------
Net gain (loss) on investments ... (32,765) 58,845 (80)
------------ ------------ ------------
Reinvested capital gains ........... -- 1,868 --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 151,402 68,600 60
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 8,788,270 202,445 9,873
Transfers between funds ............ 1,104,026 2,858,333 17,116
Surrenders ......................... (3,815) (3,121) --
Death benefits ..................... -- (6,264) --
Policy loans (net of repayments)
(note 5) ......................... (11,225) (441) --
Deductions for surrender charges
(note 2d) ........................ (471) (717) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (193,211) (45,932) (982)
Asset charges (note 3):
FPVUL & VEL contracts ............ (4,637) (1,743) --
MSP contracts .................... (22,704) (11) --
SL contracts ..................... (236) (10) --
------------ ------------ ------------
Net equity transactions ....... 9,655,997 3,002,539 26,007
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 9,807,399 3,071,139 26,067
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 15,299,976 493,998 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 25,107,375 3,565,137 26,067
============ ============ ============
</TABLE>
16
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATGvtBd NSATHIncBd
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 935,655 327,163 3,794 467,413 51,377 818
Mortality and expense charges
(note 3) ......................... (41,143) (14,720) (147) (4,264) (367) (32)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 894,512 312,444 3,647 463,149 51,011 786
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 3,374,558 569,121 702 1,989,700 233,450 400
Cost of mutual fund shares sold .... (3,522,459) (590,441) (708) (2,166,364) (232,403) (401)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (147,901) (21,320) (6) (176,664) 1,047 (1)
Change in unrealized gain (loss)
on investments ................... 350,373 (488,411) (566) (422,277) (26,063) (435)
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 202,472 (509,731) (572) (598,941) (25,016) (436)
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- -- 645 --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 1,096,984 (197,287) 3,075 (135,792) 26,640 350
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 9,659,631 992,725 136,989 1,263,681 193,498 21,117
Transfers between funds ............ 3,375,982 7,668,165 56,866 688,769 277,035 14,484
Surrenders ......................... (38,031) (3,001) -- (7,540) (247) --
Death benefits ..................... (652) -- -- (242) -- --
Policy loans (net of repayments)
(note 5) ......................... (81,742) (1,175) -- (26,589) (287) --
Deductions for surrender charges
(note 2d) ........................ (4,693) (689) -- (931) (57) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (565,154) (276,820) (2,105) (129,604) (44,247) (543)
Asset charges (note 3):
FPVUL & VEL contracts ............ (9,577) (5,694) (1) (2,742) (1,707) (3)
MSP contracts .................... (1,296) (182) -- (430) (184) --
SL contracts ..................... (3,774) (173) -- (31) (2) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 12,330,694 8,373,156 191,749 1,784,341 423,802 35,055
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 13,427,678 8,175,869 194,824 1,648,549 450,442 35,405
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 19,626,076 4,697,908 -- 8,168,286 971,017 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 33,053,754 12,873,777 194,824 9,816,835 1,421,459 35,405
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATMMkt
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 4,075,124 1,106,181 68,985
Mortality and expense charges
(note 3) ......................... (144,438) (49,607) (6,816)
------------ ------------ ------------
Net investment income ............ 3,930,686 1,056,574 62,169
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 128,714,175 32,946,620 2,437,959
Cost of mutual fund shares sold .... (128,714,175) (32,946,620) (2,437,959)
------------ ------------ ------------
Realized gain (loss)
on investments ................ -- -- --
Change in unrealized gain (loss)
on investments ................... -- -- --
------------ ------------ ------------
Net gain (loss) on investments ... -- -- --
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 3,930,686 1,056,574 62,169
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 213,283,493 124,540,161 16,224,265
Transfers between funds ............ (214,965,197) (87,612,063) (4,830,482)
Surrenders ......................... (637,711) (23,560) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (1,604,420) (1,549,078) (23,672)
Deductions for surrender charges
(note 2d) ........................ (78,695) (5,408) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (5,434,028) (3,127,264) (299,120)
Asset charges (note 3):
FPVUL & VEL contracts ............ (117,205) (65,503) (3,034)
MSP contracts .................... (22,376) (7,878) --
SL contracts ..................... (14,051) (4,895) --
------------ ------------ ------------
Net equity transactions ....... (9,590,190) 32,144,512 11,067,957
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. (5,659,504) 33,201,086 11,130,126
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 139,970,995 25,135,081 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $134,311,491 58,336,167 11,130,126
=========== ============ ============
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMSecBd NSATMidCap
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 596,769 76,442 1,830 5,472 805 56
Mortality and expense charges
(note 3) ......................... (13,656) (868) (91) (560) (9) (6)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 583,113 75,574 1,739 4,912 796 50
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 876,101 155,959 -- 417,025 44,295 128
Cost of mutual fund shares sold .... (921,172) (155,603) -- (328,737) (41,898) (127)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (45,071) 356 -- 88,288 2,397 1
Change in unrealized gain (loss)
on investments ................... (100,407) (99,986) (1,585) (217) 38,426 314
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (145,478) (99,630) (1,585) 88,071 40,823 315
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 437,635 (24,056) 154 92,983 41,619 365
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 6,464,721 238,893 89,421 449,868 23,407 3,481
Transfers between funds ............ 2,282,262 2,330,900 27,886 1,244,844 96,171 20,118
Surrenders ......................... (5,812) (133) -- (142) (10) --
Death benefits ..................... -- (2,397) -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (6,421) (3,443) -- 1,751 -- --
Deductions for surrender charges
(note 2d) ........................ (717) (31) -- (17) (2) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (208,047) (61,726) (1,343) (43,500) (14,645) (517)
Asset charges (note 3):
FPVUL & VEL contracts ............ (3,854) (2,092) (2) (2,079) (867) (4)
MSP contracts .................... (14,645) (59) -- (357) (6) --
SL contracts ..................... (414) (43) -- (59) (8) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 8,507,073 2,499,869 115,962 1,650,309 104,040 23,078
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 8,944,708 2,475,813 116,116 1,743,292 145,659 23,443
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 13,173,327 922,533 -- 820,346 298,717 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 22,118,035 3,398,346 116,116 2,563,638 444,376 23,443
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATSmCapG
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- -- --
Mortality and expense charges
(note 3) ......................... (307) -- --
------------ ------------ ------------
Net investment income ............ (307) -- --
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 1,334,323 -- --
Cost of mutual fund shares sold .... (1,216,505) -- --
------------ ------------ ------------
Realized gain (loss)
on investments ................ 117,818 -- --
Change in unrealized gain (loss)
on investments ................... (1,856) 127,000 --
------------ ------------ ------------
Net gain (loss) on investments ... 115,962 127,000 --
------------ ------------ ------------
Reinvested capital gains ........... 241 -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 115,896 127,000 --
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 285,960 1,000,000 --
Transfers between funds ............ 1,588,939 -- --
Surrenders ......................... -- -- --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (12,220) -- --
Deductions for surrender charges
(note 2d) ........................ -- -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (55,858) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (2,416) -- --
MSP contracts .................... (392) -- --
SL contracts ..................... (56) -- --
------------ ------------ ------------
Net equity transactions ....... 1,803,957 1,000,000 --
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 1,919,853 1,127,000 --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 2,710,793 -- --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 4,630,646 1,127,000 --
============ ============ ============
</TABLE>
18
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSmCapV NSATSmCo
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- 6,404 -- --
Mortality and expense charges
(note 3) ......................... (2,106) (285) (25) (9,014) (793) (165)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ (2,106) (285) (25) (2,610) (793) (165)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,717,407 274,983 110 3,685,772 387,985 249
Cost of mutual fund shares sold .... (2,634,956) (242,633) (109) (2,329,377) (392,254) (235)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 82,451 32,350 1 1,356,395 (4,269) 14
Change in unrealized gain (loss)
on investments ................... 690,804 353,856 (900) (168,069) 308,899 (2,085)
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 773,255 386,206 (899) 1,188,326 304,630 (2,071)
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- 79,340 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 771,149 465,261 (924) 1,185,716 303,837 (2,236)
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,518,638 241,558 9,892 3,561,795 497,006 114,502
Transfers between funds ............ 3,042,108 1,087,965 36,023 7,303,130 1,372,683 111,643
Surrenders ......................... (21,819) (129) -- (36,829) (466) --
Death benefits ..................... -- (2,704) -- (993) -- --
Policy loans (net of repayments)
(note 5) ......................... (9,301) (1,138) -- (30,678) (7,498) --
Deductions for surrender charges
(note 2d) ........................ (2,692) (30) -- (4,545) (107) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (141,504) (89,863) (948) (408,358) (122,428) (5,726)
Asset charges (note 3):
FPVUL & VEL contracts ............ (10,707) (3,520) (4) (16,819) (5,055) (11)
MSP contracts .................... (925) (82) -- (1,619) (263) --
SL contracts ..................... (404) (108) -- (1,008) (34) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 5,373,394 1,231,949 44,963 10,364,076 1,733,838 220,408
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 6,144,543 1,697,210 44,039 11,549,792 2,037,675 218,172
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 4,375,739 1,032,337 -- 13,108,341 1,610,449 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 10,520,282 2,729,547 44,039 24,658,133 3,648,124 218,172
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATStrGro
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- -- --
Mortality and expense charges
(note 3) ......................... (13,902) (48) (63)
------------ ------------ ------------
Net investment income ............ (13,902) (48) (63)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 3,394,069 144,582 495
Cost of mutual fund shares sold .... (2,322,026) (125,833) (495)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 1,072,043 18,749 --
Change in unrealized gain (loss)
on investments ................... (681,644) 151,672 3,699
------------ ------------ ------------
Net gain (loss) on investments ... 390,399 170,421 3,699
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 376,497 170,373 3,636
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 4,015,140 147,071 47,047
Transfers between funds ............ 9,166,017 494,262 21,161
Surrenders ......................... (156,467) (3,472) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (54,837) (3,430) --
Deductions for surrender charges
(note 2d) ........................ (19,308) (797) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (327,078) (38,416) (1,536)
Asset charges (note 3):
FPVUL & VEL contracts ............ (13,869) (1,430) (6)
MSP contracts .................... (715) (6) --
SL contracts ..................... (366) (4) --
------------ ------------ ------------
Net equity transactions ....... 12,608,517 593,778 66,666
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 12,985,014 764,151 70,302
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 10,916,878 428,087 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 23,901,892 1,192,238 70,302
============ ============ ============
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATStrVal NSATTotRtn
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 4,854 2,489 56 74,750 47,876 1,463
Mortality and expense charges
(note 3) ......................... (201) (136) (14) (2,196) (31) (258)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 4,653 2,353 42 72,554 47,845 1,205
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 3,688,382 88,539 176 1,889,535 463,542 1,425
Cost of mutual fund shares sold .... (3,647,652) (82,284) (177) (1,708,373) (455,690) (1,322)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 40,730 6,255 (1) 181,162 7,852 103
Change in unrealized gain (loss)
on investments ................... (45,250) 33,504 (1,210) 666,775 1,209,437 1,711
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (4,520) 39,759 (1,211) 847,937 1,217,289 1,814
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- 7,914 -- -- 4,930 --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 133 50,026 (1,169) 920,491 1,270,065 3,019
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 95,982 51,478 6,006 5,145,320 3,269,865 200,078
Transfers between funds ............ 76,006 250,989 27,850 1,175,153 3,783,209 389,047
Surrenders ......................... (1,963) (45) -- (165,902) (50,099) --
Death benefits ..................... -- -- -- 18,670 (1,369) --
Policy loans (net of repayments)
(note 5) ......................... 16 -- -- (322,848) (205,862) --
Deductions for surrender charges
(note 2d) ........................ (242) (10) -- (20,473) (11,501) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (30,403) (16,293) (611) (1,606,959) (921,645) (17,284)
Asset charges (note 3):
FPVUL & VEL contracts ............ (1,769) (989) (3) (57,783) (29,322) (117)
MSP contracts .................... (101) (14) -- (2,878) (473) --
SL contracts ..................... (268) -- -- (5,088) (936) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 137,258 285,116 33,242 4,157,212 5,831,867 571,724
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 137,391 335,142 32,073 5,077,703 7,101,932 574,743
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 942,125 345,974 -- 23,844,217 8,293,822 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 1,079,516 681,116 32,073 28,921,920 15,395,754 574,743
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGuard
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 16,882 3,977 --
Mortality and expense charges
(note 3) ......................... (541) (162) (5)
------------ ------------ ------------
Net investment income ............ 16,341 3,815 (5)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 736,655 83,618 32
Cost of mutual fund shares sold .... (668,481) (74,291) (33)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 68,174 9,327 (1)
Change in unrealized gain (loss)
on investments ................... 21,032 227,293 587
------------ ------------ ------------
Net gain (loss) on investments ... 89,206 236,620 586
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 105,547 240,435 581
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 457,123 77,167 490
Transfers between funds ............ 60,593 897,236 18,476
Surrenders ......................... (12,302) (3,199) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (3,183) 231 --
Deductions for surrender charges
(note 2d) ........................ (1,518) (734) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (114,211) (63,461) (285)
Asset charges (note 3):
FPVUL & VEL contracts ............ (5,926) (3,064) --
MSP contracts .................... (199) (10) --
SL contracts ..................... (281) (26) --
------------ ------------ ------------
Net equity transactions ....... 380,096 904,140 18,681
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 485,643 1,144,574 19,262
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 2,958,607 1,195,874 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 3,444,250 2,340,448 19,262
============ ============ ============
</TABLE>
20
<PAGE> 20
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTMCGr NBAMTPart
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- 55,679 56,853 114
Mortality and expense charges
(note 3) ......................... (16,220) (780) (28) (1,905) (715) (255)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ (16,220) (780) (28) 53,774 56,138 (141)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 8,082,683 401,621 660 2,415,577 481,298 449
Cost of mutual fund shares sold .... (4,984,842) (366,395) (649) (2,529,805) (483,682) (481)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 3,097,841 35,226 11 (114,228) (2,384) (32)
Change in unrealized gain (loss)
on investments ................... (1,599,352) 133,372 3,348 (1,180,991) 516,251 (16,383)
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 1,498,489 168,598 3,359 (1,295,219) 513,867 (16,415)
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... 6,497 37,807 -- 1,184,100 98,874 3,599
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 1,488,766 205,625 3,331 (57,345) 668,880 (12,957)
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 6,930,709 772,982 19,431 943,066 1,021,328 156,876
Transfers between funds ............ 7,321,356 1,494,164 96,198 (224,114) 857,854 442,815
Surrenders ......................... (38,472) (224) -- (106,167) (30,095) --
Death benefits ..................... -- -- -- (502) (7,201) --
Policy loans (net of repayments)
(note 5) ......................... (57,762) (463) -- (58,711) (3,883) --
Deductions for surrender charges
(note 2d) ........................ (4,748) (51) -- (13,101) (6,909) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (454,855) (115,531) (2,423) (261,507) (224,485) (10,126)
Asset charges (note 3):
FPVUL & VEL contracts ............ (17,799) (3,922) (45) (12,644) (10,234) (118)
MSP contracts .................... (1,764) (167) -- (1,492) (508) --
SL contracts ..................... (866) (142) -- (683) (152) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 13,675,799 2,146,646 113,161 264,145 1,595,715 589,447
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 15,164,565 2,352,271 116,492 206,800 2,264,595 576,490
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 12,183,682 741,146 -- 7,461,260 4,158,315 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 27,348,247 3,093,417 116,492 7,668,060 6,422,910 576,490
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OppAggGrVA
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- -- 26
Mortality and expense charges
(note 3) ......................... (16,779) (188) (63)
------------ ------------ ------------
Net investment income ............ (16,779) (188) (37)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 5,304,073 126,521 778
Cost of mutual fund shares sold .... (3,165,177) (115,253) (750)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 2,138,896 11,268 28
Change in unrealized gain (loss)
on investments ................... 788,259 357,043 3,606
------------ ------------ ------------
Net gain (loss) on investments ... 2,927,155 368,311 3,634
------------ ------------ ------------
Reinvested capital gains ........... 950,033 -- 270
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 3,860,409 368,123 3,867
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 10,657,578 672,775 49,498
Transfers between funds ............ 19,252,695 772,326 20,016
Surrenders ......................... (44,964) (890) --
Death benefits ..................... (752) (2,625) --
Policy loans (net of repayments)
(note 5) ......................... (116,594) (9,863) --
Deductions for surrender charges
(note 2d) ........................ (5,549) (204) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (880,302) (124,017) (2,435)
Asset charges (note 3):
FPVUL & VEL contracts ............ (31,363) (4,165) (14)
MSP contracts .................... (5,678) (48) --
SL contracts ..................... (2,178) (6) --
------------ ------------ ------------
Net equity transactions ....... 28,822,893 1,303,283 67,065
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 32,683,302 1,671,406 70,932
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 11,353,417 1,143,530 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 44,036,719 2,814,936 70,932
============ ============ ============
</TABLE>
(Continued)
21
<PAGE> 21
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
OppCapApVA OppGlSecVA
-------------------------------------------- -------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 26,876 10,044 8 -- -- --
Mortality and expense charges
(note 3) ......................... (11,965) (154) (72) (84) -- --
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 14,911 9,891 (64) (84) -- --
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 3,856,447 136,905 71 37,853 -- --
Cost of mutual fund shares sold .... (2,643,387) (136,273) (74) (35,950) -- --
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 1,213,060 632 (3) 1,903 -- --
Change in unrealized gain (loss)
on investments ................... (910,520) 410,878 10,744 52,841 -- --
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 302,540 411,510 10,741 54,744 -- --
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... 1,434,225 110,334 101 -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 1,751,676 531,735 10,778 54,660 -- --
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 5,916,820 965,480 42,315 17,487 -- --
Transfers between funds ............ 9,419,815 1,951,079 209,071 805,555 -- --
Surrenders ......................... (1,260,575) (3,088) -- -- -- --
Death benefits ..................... (1,744) -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (112,161) (16,133) -- (1) -- --
Deductions for surrender charges
(note 2d) ........................ (155,559) (709) -- -- -- --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (773,070) (230,253) (3,534) (1,994) -- --
Asset charges (note 3):
FPVUL & VEL contracts ............ (30,130) (8,192) (32) (36) -- --
MSP contracts .................... (3,213) (60) -- -- -- --
SL contracts ..................... (1,846) (279) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 12,998,337 2,657,845 247,820 821,011 -- --
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 14,750,013 3,189,580 258,598 875,671 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 13,693,604 2,045,491 -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 28,443,617 5,235,071 258,598 875,671 -- --
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OppMGrInVA
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 38,554 10,187 29
Mortality and expense charges
(note 3) ......................... (3,834) (547) (68)
------------ ------------ ------------
Net investment income ............ 34,720 9,640 (39)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 581,966 412,216 118
Cost of mutual fund shares sold .... (428,202) (449,292) (113)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 153,764 (37,076) 5
Change in unrealized gain (loss)
on investments ................... (597,224) 327,414 9,654
------------ ------------ ------------
Net gain (loss) on investments ... (443,460) 290,338 9,659
------------ ------------ ------------
Reinvested capital gains ........... 509,013 17,163 645
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 100,273 317,141 10,265
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 2,241,278 486,840 44,812
Transfers between funds ............ 5,538,692 782,275 447,343
Surrenders ......................... (38,283) (9,788) --
Death benefits ..................... 7,734 (1,930) --
Policy loans (net of repayments)
(note 5) ......................... (116,815) (8,491) --
Deductions for surrender charges
(note 2d) ........................ (4,724) (2,247) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (409,466) (120,038) (1,405)
Asset charges (note 3):
FPVUL & VEL contracts ............ (15,578) (4,598) (33)
MSP contracts .................... (2,673) (49) --
SL contracts ..................... (1,386) (138) --
------------ ------------ ------------
Net equity transactions ....... 7,198,779 1,121,836 490,717
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 7,299,052 1,438,977 500,982
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 6,929,691 1,627,582 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 14,228,743 3,066,559 500,982
============ ============ ============
</TABLE>
22
<PAGE> 22
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
StOpp2 VEWwEmgMkt
------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- -- -- --
Mortality and expense charges
(note 3) ......................... (167) -- -- (785) (29) (15)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ (167) -- -- (785) (29) (15)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 43,639 -- -- 5,437,049 262,457 --
Cost of mutual fund shares sold .... (43,663) -- -- (5,118,394) (202,004) --
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ (24) -- -- 318,655 60,453 --
Change in unrealized gain (loss)
on investments ................... (31,559) -- -- (811,743) 195,905 (4,808)
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... (31,583) -- -- (493,088) 256,358 (4,808)
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (31,750) -- -- (493,873) 256,329 (4,823)
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 37,444 -- -- 1,001,317 90,324 8,374
Transfers between funds ............ 1,547,544 -- -- 1,477,662 425,791 33,368
Surrenders ......................... -- -- -- (26,333) (136) --
Death benefits ..................... -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (2,978) (264) --
Deductions for surrender charges
(note 2d) ........................ -- -- -- (3,250) (31) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (3,765) -- -- (139,381) (33,929) (764)
Asset charges (note 3):
FPVUL & VEL contracts ............ (29) -- -- (6,589) (1,243) (2)
MSP contracts .................... (5) -- -- (469) (62) --
SL contracts ..................... (23) -- -- (808) (2) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 1,581,166 -- -- 2,299,171 480,448 40,976
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 1,549,416 -- -- 1,805,298 736,777 36,153
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. -- -- -- 2,686,906 289,195 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 1,549,416 -- -- 4,492,204 1,025,972 36,153
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VEWwHrdAst
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 6,160 2,469 --
Mortality and expense charges
(note 3) ......................... (72) (273) (4)
------------ ------------ ------------
Net investment income ............ 6,088 2,196 (4)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 1,717,656 167,248 --
Cost of mutual fund shares sold .... (1,712,678) (152,099) --
------------ ------------ ------------
Realized gain (loss)
on investments ................ 4,978 15,149 --
Change in unrealized gain (loss)
on investments ................... (17,376) 24,267 (222)
------------ ------------ ------------
Net gain (loss) on investments ... (12,398) 39,416 (222)
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (6,310) 41,612 (226)
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 50,166 35,368 1,094
Transfers between funds ............ 149,123 82,837 2,125
Surrenders ......................... (751) (101) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (659) -- --
Deductions for surrender charges
(note 2d) ........................ (93) (23) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (18,671) (14,830) (272)
Asset charges (note 3):
FPVUL & VEL contracts ............ (886) (474) --
MSP contracts .................... (149) (53) --
SL contracts ..................... (36) -- --
------------ ------------ ------------
Net equity transactions ....... 178,044 102,724 2,947
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 171,734 144,336 2,721
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 444,898 154,245 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 616,632 298,581 2,721
============ ============ ============
</TABLE>
(Continued)
23
<PAGE> 23
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
VKMSRESec WPGlPVenCp
-------------------------------------------- --------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 102,733 54,408 34 -- -- --
Mortality and expense charges
(note 3) ......................... (663) (84) (61) (477) (39) (14)
------------ ------------ ------------ ------------ ------------ ------------
Net investment income ............ 102,070 54,324 (27) (477) (39) (14)
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,206,211 333,476 3,901 527,734 100,937 192
Cost of mutual fund shares sold .... (2,198,940) (329,440) (3,954) (326,599) (77,660) (202)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss)
on investments ................ 7,271 4,036 (53) 201,135 23,277 (10)
Change in unrealized gain (loss)
on investments ................... 205,617 52,143 (1,417) (165,651) 13,920 1,331
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 212,888 56,179 (1,470) 35,484 37,197 1,321
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... -- -- 339 -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... 314,958 110,503 (1,158) 35,007 37,158 1,307
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 592,669 212,115 52,502 188,718 70,933 732
Transfers between funds ............ 1,104,273 456,135 44,871 525,897 100,098 29,169
Surrenders ......................... (7,921) (3,191) -- (7,234) (219) --
Death benefits ..................... (503) -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (2,538) (762) -- (10,537) (673) --
Deductions for surrender charges
(note 2d) ........................ (978) (732) -- (893) (50) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (64,172) (152,576) (1,904) (43,573) (15,534) (338)
Asset charges (note 3):
FPVUL & VEL contracts ............ (3,066) (2,161) (6) (2,252) (704) --
MSP contracts .................... (333) (80) -- (210) (10) --
SL contracts ..................... (270) (14) -- (245) (2) --
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ....... 1,617,161 508,734 95,463 649,671 153,839 29,563
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 1,932,119 619,237 94,305 684,678 190,997 30,870
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,583,385 717,117 -- 889,887 186,098 --
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 3,515,504 1,336,354 94,305 1,574,565 377,095 30,870
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
WPIntEq
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- -- --
Mortality and expense charges
(note 3) ......................... (599) (9) (29)
------------ ------------ ------------
Net investment income ............ (599) (9) (29)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 455,376 244,373 766
Cost of mutual fund shares sold .... (306,411) (226,385) (757)
------------ ------------ ------------
Realized gain (loss)
on investments ................ 148,965 17,988 9
Change in unrealized gain (loss)
on investments ................... (360,838) 53,595 (2,929)
------------ ------------ ------------
Net gain (loss) on investments ... (211,873) 71,583 (2,920)
------------ ------------ ------------
Reinvested capital gains ........... -- -- --
------------ ------------ ------------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (212,472) 71,574 (2,949)
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 269,598 160,783 6,576
Transfers between funds ............ 440,364 475,685 79,382
Surrenders ......................... (20,713) (259) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (10,606) (1,648) --
Deductions for surrender charges
(note 2d) ........................ (2,556) (60) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (84,918) (47,012) (2,168)
Asset charges (note 3):
FPVUL & VEL contracts ............ (4,731) (1,967) (25)
MSP contracts .................... (430) (86) --
SL contracts ..................... (499) (102) --
------------ ------------ ------------
Net equity transactions ....... 585,509 585,334 83,765
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 373,037 656,908 80,816
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 2,285,681 598,023 --
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD . 2,658,718 1,254,931 80,816
============ ============ ============
</TABLE>
24
<PAGE> 24
NATIONWIDE VLI SEPARATE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
WPValue
-----------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- --
Mortality and expense charges
(note 3) ......................... (1,072) (483) (11)
----------- ----------- -----------
Net investment income ............ (1,072) (483) (11)
----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 1,158,983 302,385 45
Cost of mutual fund shares sold .... (1,144,542) (315,649) (44)
----------- ----------- -----------
Realized gain (loss)
on investments ................ 14,441 (13,264) 1
Change in unrealized gain (loss)
on investments ................... (15,349) 101,373 7,761
----------- ----------- -----------
Net gain (loss) on investments ... (908) 88,109 7,762
----------- ----------- -----------
Reinvested capital gains ........... -- -- --
----------- ----------- -----------
Net increase (decrease) in
contract owners' equity
resulting from operations ... (1,980) 87,626 7,751
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 204,386 187,821 2,432
Transfers between funds ............ 425,146 (195,661) 311,397
Surrenders ......................... (1,356) (180) --
Death benefits ..................... -- -- --
Policy loans (net of repayments)
(note 5) ......................... (15,587) -- --
Deductions for surrender charges
(note 2d) ........................ (167) (41) --
Redemptions to pay cost of insurance
charges and administrative charges
(notes 2b and 2c) ................ (64,765) (29,377) (566)
Asset charges (note 3):
FPVUL & VEL contracts ............ (1,953) (1,132) (2)
MSP contracts .................... (190) (7) --
SL contracts ..................... (289) (11) --
----------- ----------- -----------
Net equity transactions ....... 545,225 (38,588) 313,261
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 543,245 49,038 321,012
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................. 1,165,641 719,928 --
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 1,708,886 768,966 321,012
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
25
<PAGE> 25
--------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS
June 30,2000
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLI Separate Account-4 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on December 3, 1997. The Account has
been registered as a unit investment trust under the Investment Company
Act of 1940. 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.(DrySRGr)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Appreciation Portfolio (DryVApp)
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
Federated Insurance Series - Quality Bond Fund II (FedQualBd2)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVEqInS)
Fidelity VIP - Growth Portfolio - Service Class (FidVGrS)
Fidelity VIP - High Income Portfolio - Service Class (FidVHiInS)
Fidelity VIP - Overseas Portfolio - Service Class (FidVOvSeS)
Portfolio of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVConS)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class
(FidVGrOpS)
Portfolios of Janus Aspen Series;
Janus Aspen Series - Capital Appreciation Portfolio - Service
Shares (JanACapApS)
Janus Aspen Series - Global Technology Portfolio - Service Shares
(JanAGlTchS)
Janus Aspen Series - International Growth Portfolio - Service
Shares (JanAIntGrS)
Portfolios of the Morgan Stanley Universal Funds, Inc.(Morgan
Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
Morgan Stanley - Mid Cap Growth Portfolio (MSMidCapGr)
26
<PAGE> 26
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 50 Fund (NSATGlob50)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
Nationwide SAT - Money Market Fund (NSATMMkt)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
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 (NSATTotRtn)
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 Aggressive Growth Fund/VA (OppAggGrVA)
Oppenheimer Capital Appreciation Fund/VA (OppCapApVA)
Oppenheimer Global Securities Fund/VA (OppGlSecVA)
Oppenheimer Growth & Income Fund/VA (OppMGrInVA)
Strong Opportunity Fund II, Inc.(StOpp2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
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 - Global Post - Venture Capital Portfolio
(WPGlPVenCp)
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Value Portfolio (WPValue)
At June 30, 2000, 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.
(Continued)
27
<PAGE> 27
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 2000.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.
28
<PAGE> 28
The Company may waive the surrender charge for certain contracts in
which the sales expenses normally associated with the distribution of a
contract are not incurred. No charges were deducted from the initial
funding, or from earnings thereon.
(3) ASSET CHARGES
For 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 survivorship 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.
(Continued)
29
<PAGE> 29
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 2000:
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
America's FUTURE Life Series(SM):
American Century VP - American
Century VP Income & Growth .............. 608,317 $ 14.437198 $ 8,782,393 (4)%
American Century VP - American
Century VP International ................ 938,372 18.310155 17,181,737 (6)%
American Century VP - American
Century VP Value ........................ 221,649 9.976535 2,211,289 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. ....................... 702,620 17.258836 12,126,403 3%
Dreyfus Stock Index Fund ................... 5,101,112 15.377685 78,443,293 (1)%
Dreyfus VIF - Appreciation Portfolio ....... 585,117 14.918174 8,728,877 3%
Dreyfus VIF - European Equity Portfolio .... 44,659 13.247885 591,637 2%
Federated Insurance Series -
Quality Bond Fund II .................... 74,773 10.178410 761,070 3%
Fidelity VIP - Equity-Income Portfolio -
Service Class ........................... 1,422,008 11.524638 16,388,127 (3)%
Fidelity VIP - Growth Portfolio -
Service Class ........................... 2,374,336 20.103361 47,732,134 5%
Fidelity VIP - High Income Portfolio -
Service Class ........................... 693,311 9.817929 6,806,878 (5)%
Fidelity VIP - Overseas Portfolio -
Service Class ........................... 585,003 15.237697 8,914,098 (5)%
Fidelity VIP-II - Contrafund Portfolio -
Service Class ........................... 1,858,452 15.912689 29,572,969 (1)%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class ............... 814,000 12.491144 10,167,791 (4)%
Janus Aspen Series - Capital Appreciation
Portfolio - Service Class ............... 855,652 9.677651 8,280,701 (3)%(a)
Janus Aspen Series - Global Technology
Portfolio - Service Class ............... 1,035,730 9.810188 10,160,706 (2)%(a)
Janus Aspen Series - International Growth
Portfolio - Service Class ............... 646,356 10.139137 6,553,492 1%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio ......... 79,056 9.869473 780,241 7%
Morgan Stanley -
Mid Cap Growth Portfolio ................ 2,269 9.905150 22,475 (1)%(a)
Nationwide SAT - Balanced Fund ............. 293,650 11.193219 3,286,889 3%
Nationwide SAT -
Capital Appreciation Fund ............... 1,433,453 13.654695 19,573,364 1%
</TABLE>
30
<PAGE> 30
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Equity Income Fund ........ 90,683 13.880909 1,258,762 2%
Nationwide SAT - Global 50 Fund ............ 978,808 14.552072 14,243,684 (1)%
Nationwide SAT - Government Bond Fund ...... 640,699 11.063916 7,088,640 4%
Nationwide SAT - High Income Bond Fund ..... 146,476 10.753549 1,575,137 (1)%
Nationwide SAT - Mid Cap Index Fund ........ 113,791 14.500124 1,649,984 8%
Nationwide SAT - Money Market Fund ......... 5,035,811 11.348677 57,149,792 3%
Nationwide SAT - Multi Sector Bond Fund .... 924,914 10.678794 9,876,966 2%
Nationwide SAT - Small Cap Growth Fund ..... 89,529 21.563281 1,930,539 5%
Nationwide SAT - Small Cap Growth Fund
Initial Funding by Depositor (note 1a) .. 100,000 21.563281 2,156,328 5%
Nationwide SAT - Small Cap Value Fund ...... 488,020 13.756082 6,713,243 11%
Nationwide SAT - Small Company Fund ........ 650,505 15.656223 10,184,451 8%
Nationwide SAT - Strategic Growth Fund ..... 400,982 22.238241 8,917,134 5%
Nationwide SAT - Strategic Value Fund ...... 112,378 9.606117 1,079,516 (1)%
Nationwide SAT - Total Return Fund ......... 2,081,682 13.051654 27,169,393 3%
Neuberger & Berman AMT -
Guardian Portfolio ...................... 196,947 15.697826 3,091,640 4%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ................ 559,009 24.176496 13,514,879 13%
Neuberger & Berman AMT -
Partners Portfolio ...................... 594,246 11.128003 6,612,771 (1)%
Oppenheimer
Aggressive Growth Fund/VA ............... 998,586 25.005111 24,969,754 21%
Oppenheimer
Capital Appreciation Fund/VA ............ 908,894 19.219681 17,468,653 9%
Oppenheimer Global Securities Fund/VA ...... 12,389 10.110760 125,262 1%(a)
Oppenheimer Growth & Income Fund/VA ........ 822,367 12.767529 10,499,595 0%
Strong Opportunity Fund II, Inc. ........... 11,293 9.643495 108,904 (4)%(a)
Van Eck WIT -
Worldwide Emerging Markets Fund ......... 336,741 11.554996 3,891,041 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund .............. 69,047 8.680898 599,390 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ........ 299,933 9.759014 2,927,050 14%
Warburg Pincus Trust -
Global Post - Venture Capital Portfolio . 69,157 18.282108 1,264,336 5%
Warburg Pincus Trust -
International Equity Portfolio .......... 158,181 14.750371 2,333,228 (9)%
Warburg Pincus Trust - Value Portfolio ..... 92,844 11.622352 1,079,066 (2)%
</TABLE>
(Continued)
31
<PAGE> 31
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
Corporate Variable Universal Life Series(SM):
American Century VP -
Income & Growth ......................... 596,604 12.320813 7,350,646 (4)%
American Century VP - American
Century VP International ................ 630,146 14.970741 9,433,753 (6)%
American Century VP - American
Century VP Value ........................ 42,132 8.869662 373,697 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. ....................... 84,957 14.778256 1,255,516 2%
Dreyfus Stock Index Fund ................... 5,212,941 13.150463 68,552,588 (1)%
Dreyfus VIF - Appreciation Portfolio ....... 1,200,157 12.555931 15,069,088 3%
Dreyfus VIF - European Equity Portfolio .... 7,017 13.207837 92,679 2%
Federated Insurance Series -
Quality Bond Fund II .................... 188,968 10.131263 1,914,485 3%
Fidelity VIP - Equity-Income Portfolio -
Service Class ........................... 284,061 10.174924 2,890,299 (3)%
Fidelity VIP - Growth Portfolio -
Service Class ........................... 1,408,330 17.274959 24,328,843 5%
Fidelity VIP - High Income Portfolio -
Service Class ........................... 532,889 9.193344 4,899,032 (5)%
Fidelity VIP - Overseas Portfolio -
Service Class ........................... 1,031,409 12.785880 13,187,472 (5)%
Fidelity VIP-II - Contrafund Portfolio -
Service Class ........................... 483,458 13.802556 6,672,956 (2)%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class ............... 226,104 11.216967 2,536,201 (4)%
Janus Aspen Series - Capital Appreciation
Portfolio - Service Class ............... 108,534 9.661261 1,048,575 (3)%(a)
Janus Aspen Series - Global Technology
Portfolio - Service Class ............... 169,582 9.793559 1,660,811 (2)%(a)
Janus Aspen Series - International Growth
Portfolio - Service Class ............... 93,205 10.121953 943,417 1%(a)
Morgan Stanley Emerging Markets
Debt Portfolio .......................... 26,949 9.266834 249,732 6%
Nationwide SAT - Balanced Fund ............. 226,107 10.305507 2,330,147 2%
Nationwide SAT -
Capital Appreciation Fund ............... 164,497 11.687690 1,922,590 1%
Nationwide SAT - Equity Income Fund ........ 32,417 12.681211 411,087 2%
</TABLE>
32
<PAGE> 32
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Global 50 Fund ............ 862,139 12.596704 10,860,110 (1)%
Nationwide SAT - Government Bond Fund ...... 2,307,496 10.768906 24,849,208 4%
Nationwide SAT - High Income Bond Fund ..... 51,294 10.153681 520,823 (2)%
Nationwide SAT - Money Market Fund ......... 6,089,902 11.058539 67,345,419 3%
Nationwide SAT - Multi Sector Bond Fund .... 934,744 10.336948 9,662,400 2%
Nationwide SAT - Mid Cap Index Fund ........ 52,391 12.775205 669,306 8%
Nationwide SAT -
Small Cap Growth Fund ................... 11,805 21.463633 253,378 5%
Nationwide SAT - Small Cap Value Fund ...... 97,633 12.104291 1,181,778 11%
Nationwide SAT - Small Company Fund ........ 225,026 13.954146 3,140,046 7%
Nationwide SAT - Strategic Growth Fund ..... 351,535 20.297188 7,135,172 5%
Nationwide SAT - Total Return Fund ......... 135,343 11.146280 1,508,571 3%
Neuberger & Berman AMT -
Guardian Portfolio ...................... 31,859 11.067843 352,610 4%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ................ 444,906 19.491297 8,671,795 13%
Neuberger & Berman AMT -
Partners Portfolio ...................... 106,476 9.911052 1,055,289 (1)%
Oppenheimer
Aggressive Growth Fund/VA ............... 557,988 21.426999 11,956,008 21%
Oppenheimer
Capital Appreciation Fund/VA ............ 386,244 16.423157 6,343,346 9%
Oppenheimer Growth & Income Fund/VA ........ 183,442 10.835167 1,987,625 0%
Van Eck WIT - Worldwide Emerging
Markets Fund ............................ 54,197 11.026051 597,579 (13)%
Van Eck WIT - Worldwide Hard
Assets Fund ............................. 2,016 8.552782 17,242 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ........ 31,026 9.800269 304,063 14%
Warburg Pincus Trust -
Global Post - Venture Capital Portfolio . 20,057 15.467356 310,229 5%
Warburg Pincus Trust International
Equity Portfolio .............................. 26,290 12.380758 325,490 (9)%
Warburg Pincus Trust - Value Portfolio ..... 61,488 10.242976 629,820 (3)%
</TABLE>
(Continued)
33
<PAGE> 33
NATIONWIDE VLI SEPARATE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
Corporate Variable Universal Life Series(SM):
Reduced Fee Tier:
American Century VP - American
Century VP Income & Growth .............. 243,801 11.101352 2,706,521 (4)%
American Century VP - American
Century VP International ................ 441,920 15.024102 6,639,451 (6)%
American Century VP - American
Century VP Value ........................ 85,064 9.870150 839,594 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. ....................... 23,186 12.566828 291,374 2%
Dreyfus Stock Index Fund ................... 2,359,881 11.359939 26,808,104 (1)%
Dreyfus VIF - Appreciation Portfolio ....... 338,324 11.020408 3,728,469 3%
Dreyfus VIF - European Equity Portfolio .... 18,626 13.237862 246,568 2%
Federated Insurance Series -
Quality Bond Fund II .................... 2,729,023 10.166599 27,744,883 3%
Fidelity VIP - Equity-Income Portfolio -
Service Class ........................... 194,193 10.097451 1,960,854 (3)%
Fidelity VIP - Growth Portfolio -
Service Class ........................... 513,489 13.179722 6,767,642 5%
Fidelity VIP - High Income Portfolio -
Service Class ........................... 507,660 9.770250 4,959,965 (5)%
Fidelity VIP - Overseas Portfolio -
Service Class ........................... 104,231 13.075264 1,362,848 (5)%
Fidelity VIP-II - Contrafund Portfolio -
Service Class ........................... 152,581 11.546466 1,761,771 (1)%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class ............... 3,234 10.153660 32,837 (4)%
Janus Aspen Series - Capital Appreciation
Portfolio - Service Class ............... 21,117 9.673547 204,276 (3)%(a)
Janus Aspen Series - Global Technology
Portfolio - Service Class ............... 126,614 9.806028 1,241,580 (2)%(a)
Janus Aspen Series - International Growth
Portfolio - Service Class ............... 152,099 10.134840 1,541,499 1%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio ......... 21,618 12.876285 278,360 6%
Nationwide SAT - Balanced Fund ............. 84,072 10.243616 861,201 3%
Nationwide SAT -
Capital Appreciation Fund ............... 433,842 10.392776 4,508,823 1%
Nationwide SAT - Global 50 Fund ............ 303 11.819344 3,581 (1)%
</TABLE>
34
<PAGE> 34
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ---------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Government Bond Fund ...... 108,503 10.284568 1,115,906 4%
Nationwide SAT - High Income Bond Fund ..... 787,968 9.798463 7,720,875 (2)%
Nationwide SAT - Mid Cap Index Fund ........ 18,411 13.271857 244,348 8%
Nationwide SAT - Money Market Fund ......... 922,187 10.644566 9,816,280 3%
Nationwide SAT - Multi Sector Bond Fund .... 247,557 10.416467 2,578,669 2%
Nationwide SAT - Small Cap Growth Fund ..... 13,483 21.538332 290,401 5%
Nationwide SAT - Small Cap Value Fund ...... 176,392 14.883105 2,625,261 11%
Nationwide SAT - Small Company Fund ........ 711,090 15.938399 11,333,636 8%
Nationwide SAT - Strategic Growth Fund ..... 454,493 17.271082 7,849,586 5%
Nationwide SAT - Total Return Fund ......... 22,535 10.825627 243,956 3%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio ................ 291,125 17.729749 5,161,573 13%
Oppenheimer
Aggressive Growth Fund/VA ............... 353,470 20.117568 7,110,957 21%
Oppenheimer
Capital Appreciation Fund/VA ............ 320,077 14.470324 4,631,618 9%
Oppenheimer Global Securities Fund/VA ...... 74,231 10.109107 750,409 1%(a)
Oppenheimer Growth & Income Fund/VA ........ 148,244 11.747678 1,741,523 0%
Strong Opportunity Fund II, Inc. ........... 149,401 9.641915 1,440,512 (4)%
Van Eck WIT -
Worldwide Emerging Markets Fund ......... 227 15.790423 3,584 (12)%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ........ 24,575 11.572376 284,391 14%
========= ============ --------------
$1,022,780,309
==============
</TABLE>
(a) The return was computed for the period 05/01/00 through 06/30/00.
(b) The period return does not include contract charges satisfied by
surrending units.
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--------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
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P A I D
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