<PAGE> 1
Nationwide(R) VL
Separate Account-C
June 30, 2000
[THE BEST OF AMERICA'S FUTURE LIFE SERIES(SM) LOGO]
2000
SEMI-ANNUAL REPORT
[NATIONWIDE LOGO]
Nationwide Life and Annuity Insurance Company
HOME OFFICE: COLUMBUS, OHIO
VLOB-0173-C(6/00)
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[NATIONWIDE LOGO]
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO OF PRESIDENT]
PRESIDENT'S MESSAGE
We at Nationwide Life and Annuity Insurance Company are pleased to bring you the
2000 semi-annual report of the Nationwide VL Separate Account-C.
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, President
Joseph J. Gasper, President
August 16, 2000
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[THIS PAGE LEFT BLANK INTENTIONALLY]
4
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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 underlying 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 VL Separate Account-C. 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 25. 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 21, provide further disclosures
about the variable account and its underlying contract provisions.
5
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NATIONWIDE VL SEPARATE ACCOUNT-C
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)
976,512 shares (cost $7,526,685)..................................................................... $ 7,489,849
American Century VP - American Century VP International (ACVPInt)
525,188 shares (cost $5,864,582)..................................................................... 6,071,174
American Century VP - American Century VP Value (ACVPValue)
127,423 shares (cost $709,928)....................................................................... 690,634
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGr)
12,202 shares (cost $477,928)........................................................................ 488,814
Dreyfus Stock Index Fund (DryStkIx)
1,029,296 shares (cost $37,504,140).................................................................. 39,133,820
Dreyfus VIF - Appreciation Portfolio (DryVApp)
59,818 shares (cost $2,331,326)...................................................................... 2,451,347
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
1,788 shares (cost $29,011).......................................................................... 28,386
Federated Insurance Series - Quality Bond Fund II (FedQualBd2)
44,637 shares (cost $433,244)........................................................................ 446,819
Fidelity VIP - Equity-Income Portfolio - Service Class (FidVEqInS)
103,686 shares (cost $2,429,813)..................................................................... 2,369,234
Fidelity VIP - Growth Portfolio - Service Class (FidVGrS)
434,417 shares (cost $21,462,194).................................................................... 22,324,674
Fidelity VIP - High Income Portfolio - Service Class (FidVHiInS)
215,918 shares (cost $2,303,699)..................................................................... 2,161,344
Fidelity VIP - Overseas Portfolio - Service Class (FidVOvSeS)
159,034 shares (cost $3,894,989)..................................................................... 3,724,572
Fidelity VIP-II - Contrafund Portfolio - Service Class (FidVConS)
229,212 shares (cost $6,008,138)..................................................................... 5,737,176
Fidelity VIP-III - Growth Opportunities Portfolio - Service Class (FidVGrOpS)
107,404 shares (cost $2,305,840)..................................................................... 2,210,378
Janus Aspen Series - Global Technology Portfolio - Service Class (JanAGlTchS)
32,717 shares (cost $346,552)........................................................................ 321,276
Janus Aspen Series - International Growth Portfolio - Service Class (JanAIntGrS)
6,270 shares (cost $237,365)......................................................................... 246,735
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
77,759 shares (cost $544,804)........................................................................ 572,305
Nationwide SAT - Balanced Fund (NSATBal)
93,238 shares (cost $972,035)........................................................................ 972,477
</TABLE>
6
<PAGE> 6
<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
96,936 shares (cost $2,440,802)...................................................................... 2,506,776
Nationwide SAT - Equity Income Fund (NSATEqInc)
20,860 shares (cost $283,739)........................................................................ 286,196
Nationwide SAT - Nationwide Global 50 Fund (NSATGlob50)
62,334 shares (cost $836,327)........................................................................ 853,352
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,504,192 shares (cost $16,305,397).................................................................. 16,380,654
Nationwide SAT - High Income Bond Fund (NSATHIncBd)
162,250 shares (cost $1,505,315)..................................................................... 1,447,266
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
77,768 shares (cost $987,884)........................................................................ 1,033,540
Nationwide SAT - Money Market Fund (NSATMMkt)
24,706,109 shares (cost $24,706,109)................................................................. 24,706,109
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
276,598 shares (cost $2,585,415)..................................................................... 2,569,599
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
149,443 shares (cost $2,063,131)..................................................................... 3,094,956
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
118,604 shares (cost $1,215,931)..................................................................... 1,279,742
Nationwide SAT - Small Company Fund (NSATSmCo)
190,799 shares (cost $4,354,730)..................................................................... 4,541,022
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
52,047 shares (cost $1,113,834)...................................................................... 1,117,460
Nationwide SAT - Strategic Value Fund (NSATStrVal)
12,131 shares (cost $108,944)........................................................................ 112,214
Nationwide SAT - Total Return Fund (NSATTotRtn)
9,567 shares (cost $181,963)......................................................................... 185,501
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
60,358 shares (cost $942,901)........................................................................ 986,246
Neuberger & Berman AMT - Mid-Cap Growth Portfolio (NBAMTMCGr)
55,782 shares (cost $1,367,627)...................................................................... 1,528,420
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
78,540 shares (cost $1,328,138)...................................................................... 1,254,289
Oppenheimer - Aggressive Growth Fund/VA (OppAggGrVA)
61,978 shares (cost $5,369,685)...................................................................... 5,989,550
Oppenheimer - Capital Appreciation Fund/VA (OppCapApVA)
92,348 shares (cost $4,409,791)...................................................................... 4,722,671
Oppenheimer - Main Street Growth & Income Fund/VA (OppMGrInVA)
21,980 shares (cost $513,412)........................................................................ 513,234
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
53,228 shares (cost $655,245)........................................................................ 664,821
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
38,059 shares (cost $403,285)........................................................................ 428,540
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VL SEPARATE ACCOUNT - C
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
<TABLE>
<CAPTION>
<S> <C>
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
23,288 shares (cost $293,045)...................................................................... 313,461
Warburg Pincus Trust - Global Post - Venture Capital Portfolio (WPGlPVenCp)
47,919 shares (cost $898,740)...................................................................... 968,918
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
23,910 shares (cost $371,564)...................................................................... 364,387
Warburg Pincus Trust - Value Portfolio (WPValue)
20,235 shares (cost $222,434)...................................................................... 234,721
-------------
Total investments............................................................................... 175,524,659
Accounts receivable...................................................................................... 59,117
-------------
Total assets.................................................................................... 175,583,776
ACCOUNTS PAYABLE............................................................................................ -
-------------
CONTRACT OWNERS' EQUITY (NOTE 6)............................................................................ $ 175,583,776
=============
</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Total ACVPIncGr
------------------------------ ------------------------------
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ 1,735,770 574,990 32,481 165
Mortality and expense charges (note 3) ...................... (261,489) (93,438) (9,509) (2,894)
------------- ------------- ------------- -------------
Net investment activity ............................ 1,474,281 481,552 22,972 (2,729)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ....................... 56,886,921 35,955,196 2,731,887 866,199
Cost of mutual fund shares sold ............................. (52,598,072) (34,334,981) (2,533,266) (776,553)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ................ 4,288,849 1,620,215 198,621 89,646
Change in unrealized gain (loss) on investments ............. (6,001,647) 2,427,206 (565,992) 121,392
------------- ------------- ------------- -------------
Net gain (loss) on investments ..................... (1,712,798) 4,047,421 (367,371) 211,038
------------- ------------- ------------- -------------
Reinvested capital gains .................................... 2,666,845 450,919 -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations .. 2,428,328 4,979,892 (344,399) 208,309
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 52,864,932 43,819,796 3,557,239 2,957,314
Transfers between funds ..................................... -- -- (1,453,508) 230,864
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (1,891,295) (1,058,304) (49,682) (22,420)
------------- ------------- ------------- -------------
Net equity transactions ................... 50,973,637 42,761,492 2,054,049 3,165,758
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 53,401,965 47,741,384 1,709,650 3,374,067
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 122,181,811 26,899,259 5,781,146 459,304
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 175,583,776 74,640,643 7,490,796 3,833,371
============= ============= ============= =============
ACVPInt ACVPValue
------------------------------ ------------------------------
2000 1999 2000 1999
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 4,738 -- 599 1,471
Mortality and expense charges (note 3) ...................... (8,066) (1,770) (963) (294)
------------- ------------- ------------- -------------
Net investment activity ............................ (3,328) (1,770) (364) 1,177
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ....................... 938,955 476,367 791,886 32,451
Cost of mutual fund shares sold ............................. (574,279) (429,836) (762,705) (30,139)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ................ 364,676 46,531 29,181 2,312
Change in unrealized gain (loss) on investments ............. (757,285) 47,565 (22,743) 8,933
------------- ------------- ------------- -------------
Net gain (loss) on investments ..................... (392,609) 94,096 6,438 11,245
------------- ------------- ------------- -------------
Reinvested capital gains .................................... 70,841 -- 1,532 13,940
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations .. (325,096) 92,326 7,606 26,362
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 1,741,572 1,286,823 148,591 38,964
Transfers between funds ..................................... 1,479,670 137,674 230,127 29,313
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (62,679) (29,776) (6,558) (2,963)
------------- ------------- ------------- -------------
Net equity transactions ................... 3,158,563 1,394,721 372,160 65,314
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 2,833,467 1,487,047 379,766 91,676
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 3,233,319 306,135 315,811 96,106
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 6,066,786 1,793,182 695,577 187,782
============= ============= ============= =============
</TABLE>
(Continued)
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<PAGE> 9
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
DrySRGr DryStkIx
-------------------------- -------------------------
2000 1999 2000 1999
----------- ------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ 65 -- 174,261 103,831
Mortality and expense charges (note 3) ...................... (700) (183) (67,037) (27,737)
----------- --------- ---------- ----------
Net investment activity ............................ (635) (183) 107,224 76,094
----------- --------- ---------- ----------
Proceeds from mutual fund shares sold ....................... 595,231 9,570 8,794,037 709,436
Cost of mutual fund shares sold ............................. (577,853) (8,453) (7,287,267) (547,076)
----------- --------- ---------- ----------
Realized gain (loss) on investments ................ 17,378 1,117 1,506,770 162,360
Change in unrealized gain (loss) on investments ............. 670 14,782 (1,862,189) 1,367,902
----------- --------- ---------- ----------
Net gain (loss) on investments ..................... 18,048 15,899 (355,419) 1,530,262
----------- --------- ---------- ----------
Reinvested capital gains .................................... -- -- 38,195 62,396
----------- --------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations .. 17,413 15,716 (210,000) 1,668,752
----------- --------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 393,272 185,242 12,136,138 6,946,038
Transfers between funds ..................................... (24,981) 17,491 (4,221,481) 9,716,946
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (5,729) (2,136) (485,641) (261,291)
----------- --------- ---------- ----------
Net equity transactions ................... 362,562 200,597 7,429,016 16,401,693
----------- --------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 379,975 216,313 7,219,016 18,070,445
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 108,845 8,270 31,914,985 6,042,687
----------- --------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 488,820 224,583 39,134,001 24,113,132
=========== ========= ========== ==========
DryVApp DryEuroEq
-------------------------- -------------------------
2000 1999 2000 1999
----------- ------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 104 45 -- --
Mortality and expense charges (note 3) ...................... (3,919) (1,486) (158) --
----------- --------- ---------- ----------
Net investment activity ............................ (3,815) (1,441) (158) --
----------- --------- ---------- ----------
Proceeds from mutual fund shares sold ....................... 585,473 419,714 666,007 --
Cost of mutual fund shares sold ............................. (555,624) (373,844) (636,617) --
----------- --------- ---------- ----------
Realized gain (loss) on investments ................ 29,849 45,870 29,390 --
Change in unrealized gain (loss) on investments ............. 67,617 11,054 (7,222) --
----------- --------- ---------- ----------
Net gain (loss) on investments ..................... 97,466 56,924 22,168 --
----------- --------- ---------- ----------
Reinvested capital gains .................................... -- -- 134 --
----------- --------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations .. 93,651 55,483 22,144 --
----------- --------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 859,619 530,036 63,923 --
Transfers between funds ..................................... 63,348 245,690 (351,073) --
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (33,049) (27,292) (1,331) --
----------- --------- ---------- ----------
Net equity transactions ................... 889,918 748,434 (288,481) --
----------- --------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 983,569 803,917 (266,337) --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 1,467,751 300,742 294,707 --
----------- --------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 2,451,320 1,104,659 28,370 --
=========== ========= ========== ==========
</TABLE>
10
<PAGE> 10
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FedQualBd2 FidVEqInS
------------------------- ------------------------
2000 1999 2000 1999
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ 189 -- 10,995 148
Mortality and expense charges (note 3) ...................... (270) -- (2,980) (180)
---------- --------- --------- ---------
Net investment activity ............................ (81) -- 8,015 (32)
---------- --------- --------- ---------
Proceeds from mutual fund shares sold ....................... 36,352 -- 1,818,883 72,901
Cost of mutual fund shares sold ............................. (37,004) -- (1,925,957) (73,300)
---------- --------- --------- ---------
Realized gain (loss) on investments ................ (652) -- (107,074) (399)
Change in unrealized gain (loss) on investments ............. 13,574 -- (105,224) 5,582
---------- --------- --------- ---------
Net gain (loss) on investments ..................... 12,922 -- (212,298) 5,183
---------- --------- --------- ---------
Reinvested capital gains .................................... -- -- 42,410 327
---------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 12,841 -- (161,873) 5,478
---------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 72,878 -- 390,145 8,520
Transfers between funds ..................................... 362,876 -- 497,899 263,312
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (1,361) -- (18,082) (1,648)
---------- --------- --------- ---------
Net equity transactions ................... 434,393 -- 869,962 270,184
---------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 447,234 -- 708,089 275,662
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... -- -- 1,703,236 9,154
---------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 447,234 -- 2,411,325 284,816
========== ========= ========= =========
FidVGrS FidHiInS
------------------------- ------------------------
2000 1999 2000 1999
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 9,556 2,889 129,079 96,332
Mortality and expense charges (note 3) ...................... (22,803) (6,047) (4,098) (3,765)
---------- --------- --------- ---------
Net investment activity ............................ (13,247) (3,158) 124,981 92,567
---------- --------- --------- ---------
Proceeds from mutual fund shares sold ....................... 1,521,224 380,415 710,612 2,626,664
Cost of mutual fund shares sold ............................. (1,234,724) (321,246) (766,799) (2,554,125)
---------- --------- --------- ---------
Realized gain (loss) on investments ................ 286,500 59,169 (56,187) 72,539
Change in unrealized gain (loss) on investments ............. (780,706) 183,872 (179,408) (27,293)
---------- --------- --------- ---------
Net gain (loss) on investments ..................... (494,206) 243,041 (235,595) 45,246
---------- --------- --------- ---------
Reinvested capital gains .................................... 1,140,977 181,621 -- 3,601
---------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 633,524 421,504 (110,614) 141,414
---------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 4,586,646 3,380,024 780,810 2,059,902
Transfers between funds ..................................... 7,291,805 1,362,296 192,927 (730,917)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (121,060) (47,634) (36,085) (106,899)
---------- --------- --------- ---------
Net equity transactions ................... 11,757,391 4,694,686 937,652 1,222,086
---------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 12,390,915 5,116,190 827,038 1,363,500
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 9,943,032 1,576,877 1,334,832 957,639
---------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 22,333,947 6,693,067 2,161,870 2,321,139
========== ========= ========= =========
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FidVOvSeS FidVConS
-------------------------- ------------------------
2000 1999 2000 1999
----------- ------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ 22,282 10,719 13,786 6,775
Mortality and expense charges (note 3) ...................... (5,359) (1,521) (9,156) (3,431)
----------- --------- --------- ---------
Net investment activity ............................ 16,923 9,198 4,630 3,344
----------- --------- --------- ---------
Proceeds from mutual fund shares sold ....................... 993,195 400,402 1,785,925 862,713
Cost of mutual fund shares sold ............................. (891,851) (359,909) (1,698,711) (685,582)
----------- --------- --------- ---------
Realized gain (loss) on investments ................ 101,344 40,493 87,214 177,131
Change in unrealized gain (loss) on investments ............. (413,884) 4,463 (697,874) (21,924)
----------- --------- --------- ---------
Net gain (loss) on investments ..................... (312,540) 44,956 (610,660) 155,207
----------- --------- --------- ---------
Reinvested capital gains .................................... 144,214 17,288 500,421 49,679
----------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. (151,403) 71,442 (105,609) 208,230
----------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 898,398 201,212 1,828,246 694,756
Transfers between funds ..................................... 1,433,517 (71,366) 740,175 649,502
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (49,900) (15,621) (84,486) (48,109)
----------- --------- --------- ---------
Net equity transactions ................... 2,282,015 114,225 2,483,935 1,296,149
----------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 2,130,612 185,667 2,378,326 1,504,379
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 1,592,636 668,428 3,365,677 1,270,102
----------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 3,723,248 854,095 5,744,003 2,774,481
=========== ========= ========= =========
FidVGrOpS JanAGlTchS
-------------------------- ------------------------
2000 1999 2000 1999
----------- ------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 31,207 3,879 -- --
Mortality and expense charges (note 3) ...................... (4,746) (1,998) (331) --
----------- --------- --------- ---------
Net investment activity ............................ 26,461 1,881 (331) --
----------- --------- --------- ---------
Proceeds from mutual fund shares sold ....................... 1,461,974 880,110 24,816 --
Cost of mutual fund shares sold ............................. (1,600,148) (827,047) (30,948) --
----------- --------- --------- ---------
Realized gain (loss) on investments ................ (138,174) 53,063 (6,132) --
Change in unrealized gain (loss) on investments ............. (156,127) 39,363 (25,276) --
----------- --------- --------- ---------
Net gain (loss) on investments ..................... (294,301) 92,426 (31,408) --
----------- --------- --------- ---------
Reinvested capital gains .................................... 164,127 7,581 -- --
----------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. (103,713) 101,888 (31,739) --
----------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 735,424 843,724 138,667 --
Transfers between funds ..................................... (859,895) 190,195 216,727 --
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (39,760) (43,600) (2,798) --
----------- --------- --------- ---------
Net equity transactions ................... (164,231) 990,319 352,596 --
----------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... (267,944) 1,092,207 320,857 --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 2,478,202 393,106 -- --
----------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 2,210,258 1,485,313 320,857 --
=========== ========= ========= =========
</TABLE>
12
<PAGE> 12
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
JanAIntGrS MSEmMkt
---------------------- ---------------------
2000 1999 2000 1999
---------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ - -- -- --
Mortality and expense charges (note 3) ...................... (43) -- (476) (230)
------- ------- --------- ---------
Net investment activity ............................ (43) -- (476) (230)
------- ------- --------- ---------
Proceeds from mutual fund shares sold ....................... 431 -- 87,491 180,915
Cost of mutual fund shares sold ............................. (438) -- (90,248) (171,817)
------- ------- --------- ---------
Realized gain (loss) on investments ................ (7) -- (2,757) 9,098
Change in unrealized gain (loss) on investments ............. 9,370 -- 31,192 9,575
------- ------- --------- ---------
Net gain (loss) on investments ..................... 9,363 -- 28,435 18,673
------- ------- --------- ---------
Reinvested capital gains .................................... -- -- -- --
------- ------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 9,320 -- 27,959 18,443
------- ------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 2,096 -- 27,962 42,135
Transfers between funds ..................................... 238,417 -- 457,514 35,983
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (3,093) -- (7,770) (2,383)
------- ------- --------- ---------
Net equity transactions ................... 237,420 -- 477,706 75,735
------- ------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 246,740 -- 505,665 94,178
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... -- -- 61,956 90,735
------- ------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $246,740 -- 567,621 184,913
======== ======= ========= =========
NSATBal NSATCapAp
--------------------- -----------------------
2000 1999 2000 1999
---------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 13,845 9,254 4,216 3,127
Mortality and expense charges (note 3) ...................... (1,745) (790) (4,765) (1,751)
------- ------- --------- ---------
Net investment activity ............................ 12,100 8,464 (549) 1,376
------- ------- --------- ---------
Proceeds from mutual fund shares sold ....................... 288,374 224,189 1,378,843 311,026
Cost of mutual fund shares sold ............................. (311,933) (215,596) (1,552,930) (270,998)
------- ------- --------- ---------
Realized gain (loss) on investments ................ (23,559) 8,593 (174,087) 40,028
Change in unrealized gain (loss) on investments ............. 37,587 9,771 203,778 104,031
------- ------- --------- ---------
Net gain (loss) on investments ..................... 14,028 18,364 29,691 144,059
------- ------- --------- ---------
Reinvested capital gains .................................... -- 5 -- --
------- ------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 26,128 26,833 29,142 145,435
------- ------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 374,066 367,059 923,374 771,832
Transfers between funds ..................................... (160,139) 407,651 (515,085) 188,299
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (17,478) (11,925) (40,132) (29,635)
------- ------- --------- ---------
Net equity transactions ................... 196,449 762,785 368,157 930,496
------- ------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 222,577 789,618 397,299 1,075,931
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 750,005 80,927 2,109,851 471,725
------- ------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 972,582 870,545 2,507,150 1,547,656
======= ======= ========= =========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATEqInc NSATGlob50
-------------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends ........................................ $ 708 238 6,900 757
Mortality and expense charges (note 3) ...................... (315) (166) (1,796) (109)
----------- ----------- ----------- -----------
Net investment activity ............................ 393 72 5,104 648
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ....................... 77,776 11,096 665,054 34,192
Cost of mutual fund shares sold ............................. (71,109) (11,232) (617,449) (32,405)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ................ 6,667 (136) 47,605 1,787
Change in unrealized gain (loss) on investments ............. (1,906) 7,733 (55,907) 4,519
----------- ----------- ----------- -----------
Net gain (loss) on investments ..................... 4,761 7,597 (8,302) 6,306
----------- ----------- ----------- -----------
Reinvested capital gains .................................... -- 44 -- 32
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .. 5,154 7,713 (3,198) 6,986
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 66,654 29,586 70,664 11,597
Transfers between funds ..................................... 163,007 201,347 (311,599) 355,473
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (2,523) (1,974) (13,443) (3,726)
----------- ----------- ----------- -----------
Net equity transactions ................... 227,138 228,959 (254,378) 363,344
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 232,292 236,672 (257,576) 370,330
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 53,898 -- 1,110,965 2,480
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 286,190 236,672 853,389 372,810
=========== =========== =========== ===========
NSATGvtBd NSATHIncBd
-------------------------- --------------------------
2000 1999 2000 1999
----------- ----------- ----------- -----------
INVESTMENT ACTIVITY:
<S> <C> <C> <C> <C>
Reinvested dividends ........................................ 479,057 120,416 63,565 10,915
Mortality and expense charges (note 3) ...................... (20,760) (5,236) (2,275) (493)
----------- ----------- ----------- -----------
Net investment activity ............................ 458,297 115,180 61,290 10,422
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ....................... 5,491,499 1,313,299 205,821 451,949
Cost of mutual fund shares sold ............................. (5,636,134) (1,344,373) (216,238) (447,400)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ................ (144,635) (31,074) (10,417) 4,549
Change in unrealized gain (loss) on investments ............. 315,272 (145,837) (54,383) (12,864)
----------- ----------- ----------- -----------
Net gain (loss) on investments ..................... 170,637 (176,911) (64,800) (8,315)
----------- ----------- ----------- -----------
Reinvested capital gains .................................... -- -- 2 112
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .. 628,934 (61,731) (3,508) 2,219
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 2,466,468 2,063,830 144,234 52,337
Transfers between funds ..................................... (1,383,495) 2,894,605 1,160,037 150,870
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (138,943) (57,420) (25,677) (5,650)
----------- ----------- ----------- -----------
Net equity transactions ................... 944,030 4,901,015 1,278,594 197,557
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 1,572,964 4,839,284 1,275,086 199,776
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 14,808,767 504,828 172,149 145,175
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 16,381,731 5,344,112 1,447,235 344,951
=========== =========== =========== ===========
</TABLE>
14
<PAGE> 14
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMMkt NSATMSecBd
---------------------------- -------------------------
2000 1999 2000 1999
------------ --------- --------- -------
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 610,793 169,172 78,228 10,156
Mortality and expense charges (note 3) .......... (40,803) (15,357) (4,318) (695)
------------ --------- --------- -------
Net investment activity ...................... 569,990 153,815 73,910 9,461
------------ --------- --------- -------
Proceeds from mutual fund shares sold ........... 10,374,951 19,350,999 718,618 320,311
Cost of mutual fund shares sold ................. (10,374,951) (19,350,999) (715,730) (320,864)
------------ --------- --------- -------
Realized gain (loss) on investments .......... -- -- 2,888 (553)
Change in unrealized gain (loss) on investments . -- -- (13,051) (13,968)
------------ --------- --------- -------
Net gain (loss) on investments ............... -- -- (10,163) (14,521)
------------ --------- --------- -------
Reinvested capital gains ........................ -- -- -- --
------------ --------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 569,990 153,815 63,747 (5,060)
------------ --------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 12,819,440 16,476,558 441,440 227,416
Transfers between funds ......................... (7,152,625) (16,830,516) 1,672,692 (141,913)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) ............................ (286,491) (118,848) (42,821) (10,538)
------------ --------- --------- -------
Net equity transactions .................... 5,380,324 (472,806) 2,071,311 74,965
------------ --------- --------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 5,950,314 (318,990) 2,135,058 69,905
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 18,757,568 7,180,241 434,557 325,786
------------ --------- --------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 24,707,882 6,861,251 2,569,615 395,691
============ ========= ========= =======
NSATMidCap NSATSmCapG
-------------------------- -------------------------
2000 1999 2000 1999
--------- ------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 2,829 1 -- --
Mortality and expense charges (note 3) ...................... (1,592) (9) (1,591) --
--------- ------ --------- ---------
Net investment activity ............................ 1,237 (8) (1,591) --
--------- ------ --------- ---------
Proceeds from mutual fund shares sold ....................... 204,147 2,945 640,372 --
Cost of mutual fund shares sold ............................. (195,220) (2,600) (578,703) --
--------- ------ --------- ---------
Realized gain (loss) on investments ................ 8,927 345 61,669 --
Change in unrealized gain (loss) on investments ............. 52,473 (351) 28,959 127,000
--------- ------ --------- ---------
Net gain (loss) on investments ..................... 61,400 (6) 90,628 127,000
--------- ------ --------- ---------
Reinvested capital gains .................................... -- -- -- --
--------- ------ --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 62,637 (14) 89,037 127,000
--------- ------ --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 300,741 1,113 9,361 999,286
Transfers between funds ..................................... 91,564 (2,907) 347,100 --
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (5,366) (9) (9,138) --
--------- ------ --------- ---------
Net equity transactions ................... 386,939 (1,803) 347,323 999,286
--------- ------ --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 449,576 (1,817) 436,360 1,126,286
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 588,358 2,544 2,649,638 --
--------- ------ --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 1,037,934 727 3,085,998 1,126,286
========= ====== ========= =========
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSmCapV NSATSmCo
-------------------------- -----------------------
2000 1999 2000 1999
----------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ -- -- 1,182 --
Mortality and expense charges (note 3) ...................... (1,608) (1,939) (9,560) (1,655)
----------- --------- --------- ---------
Net investment activity ............................ (1,608) (1,939) (8,378) (1,655)
----------- --------- --------- ---------
Proceeds from mutual fund shares sold ....................... 431,815 23,053 2,018,487 652,792
Cost of mutual fund shares sold ............................. (417,829) (20,377) (1,392,271) (604,897)
----------- --------- --------- ---------
Realized gain (loss) on investments ................ 13,986 2,676 626,216 47,895
Change in unrealized gain (loss) on investments ............. 66,935 252,331 (314,178) 69,355
----------- --------- --------- ---------
Net gain (loss) on investments ..................... 80,921 255,007 312,038 117,250
----------- --------- --------- ---------
Reinvested capital gains .................................... -- 60,891 -- --
----------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations . 79,313 313,959 303,660 115,595
----------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 353,002 26,813 818,252 756,241
Transfers between funds ..................................... 686,918 525,388 868,465 (50,555)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (17,157) (10,943) (77,897) (42,971)
----------- --------- --------- ---------
Net equity transactions ................... 1,022,763 541,258 1,608,820 662,715
----------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 1,102,076 855,217 1,912,480 778,310
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 177,662 587,880 2,633,502 457,896
----------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 1,279,738 1,443,097 4,545,982 1,236,206
=========== ========= ========= =========
NSATStrGro NSATStrVal
------------------------ ----------------------
2000 1999 2000 1999
--------- ------ ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ -- -- 511 1,083
Mortality and expense charges (note 3) ...................... (2,281) (49) (338) (481)
--------- ------ ------- -------
Net investment activity ............................ (2,281) (49) 173 602
--------- ------ ------- -------
Proceeds from mutual fund shares sold ....................... 675,957 10,464 979,633 337,174
Cost of mutual fund shares sold ............................. (577,983) (9,961) (997,731) (295,065)
--------- ------ ------- -------
Realized gain (loss) on investments ................ 97,974 503 (18,098) 42,109
Change in unrealized gain (loss) on investments ............. (104,528) 5,388 (10,745) (36,733)
--------- ------ ------- -------
Net gain (loss) on investments ..................... (6,554) 5,891 (28,843) 5,376
--------- ------ ------- -------
Reinvested capital gains .................................... -- -- -- 3,883
--------- ------ ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations . (8,835) 5,842 (28,670) 9,861
--------- ------ ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 537,632 15,613 110,849 59,802
Transfers between funds ..................................... (323,543) 26,879 (665,620) (88,739)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (20,245) (770) (5,043) (6,250)
--------- ------ ------- -------
Net equity transactions ................... 193,844 41,722 (559,814) (35,187)
--------- ------ ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........................ 185,009 47,564 (588,484) (25,326)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 932,453 -- 700,700 283,667
--------- ------ ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 1,117,462 47,564 112,216 258,341
========= ====== ======= =======
</TABLE>
16
<PAGE> 16
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATTotRtn NBAMTGuard
------------------------ ---------------------
2000 1999 2000 1999
---------- ------ ------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ 853 75 4,952 6,081
Mortality and expense charges (note 3) ...................... (516) (139) (1,253) (2,924)
---------- ------ ------- ---------
Net investment activity ............................ 337 (64) 3,699 3,157
---------- ------ ------- ---------
Proceeds from mutual fund shares sold ....................... 551,683 162,224 325,652 951,436
Cost of mutual fund shares sold ............................. (546,397) (149,286) (306,647) (732,696)
---------- ------ ------- ---------
Realized gain (loss) on investments ................ 5,286 12,938 19,005 218,740
Change in unrealized gain (loss) on investments ............. 6,209 (4,684) 3,878 38,434
---------- ------ ------- ---------
Net gain (loss) on investments ..................... 11,495 8,254 22,883 257,174
---------- ------ ------- ---------
Reinvested capital gains .................................... -- 6 -- --
---------- ------ ------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 11,832 8,196 26,582 260,331
---------- ------ ------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 176,200 43,900 388,331 473,593
Transfers between funds ..................................... (139,539) (121,292) (244,558) (437,334)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (5,312) (2,026) (8,312) (27,412)
---------- ------ ------- ---------
Net equity transactions ................... 31,349 (79,418) 135,461 8,847
---------- ------ ------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 43,181 (71,222) 162,043 269,178
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 142,327 103,390 824,401 1,198,660
---------- ------ ------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 185,508 32,168 986,444 1,467,838
========== ====== ======= =========
NBAMTMCGr NBAMTPart
----------------------- -----------------------
2000 1999 2000 1999
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ -- -- 6,994 4,324
Mortality and expense charges (note 3) ...................... (2,434) (2,756) (2,153) (1,176)
--------- --------- --------- ---------
Net investment activity ............................ (2,434) (2,756) 4,841 3,148
--------- --------- --------- ---------
Proceeds from mutual fund shares sold ....................... 501,362 755,623 578,158 80,205
Cost of mutual fund shares sold ............................. (298,044) (613,410) (640,843) (68,280)
--------- --------- --------- ---------
Realized gain (loss) on investments ................ 203,318 142,213 (62,685) 11,925
Change in unrealized gain (loss) on investments ............. (30,929) (67,406) (83,881) 60,860
--------- --------- --------- ---------
Net gain (loss) on investments ..................... 172,389 74,807 (146,566) 72,785
--------- --------- --------- ---------
Reinvested capital gains .................................... 442 33,171 148,730 7,690
--------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .. 170,397 105,222 7,005 83,623
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 485,372 277,411 485,420 428,649
Transfers between funds ..................................... 144,271 160,904 (256,948) 370,920
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (21,037) (22,731) (20,295) (16,099)
--------- --------- --------- ---------
Net equity transactions ................... 608,606 415,584 208,177 783,470
--------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 779,003 520,806 215,182 867,093
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 749,388 1,081,173 1,039,111 242,510
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 1,528,391 1,601,979 1,254,293 1,109,603
========= ========= ========= =========
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
OppAggGrVA OppCapApVA
-------------------------- ------------------------
2000 1999 2000 1999
----------- --------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ -- -- 4,074 122
Mortality and expense charges (note 3) ...................... (8,493) (1,523) (5,584) (445)
----------- --------- --------- -------
Net investment activity ............................ (8,493) (1,523) (1,510) (323)
----------- --------- --------- -------
Proceeds from mutual fund shares sold ....................... 2,470,167 247,577 1,109,805 375,974
Cost of mutual fund shares sold ............................. (1,619,692) (173,671) (890,549) (345,292)
----------- --------- --------- -------
Realized gain (loss) on investments ................ 850,475 73,906 219,256 30,682
Change in unrealized gain (loss) on investments ............. (113,083) 103,252 (171,481) 23,591
----------- --------- --------- -------
Net gain (loss) on investments ..................... 737,392 177,158 47,775 54,273
----------- --------- --------- -------
Reinvested capital gains .................................... 176,333 -- 217,412 1,339
----------- --------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations .. 905,232 175,635 263,677 55,289
----------- --------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 1,224,175 240,951 1,282,006 412,028
Transfers between funds ..................................... 20,658 188,281 372,467 298,494
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (52,161) (13,650) (19,415) (5,817)
----------- --------- --------- -------
Net equity transactions ................... 1,192,672 415,582 1,635,058 704,705
----------- --------- --------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 2,097,904 591,217 1,898,735 759,994
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 3,891,683 515,466 2,825,533 125,183
----------- --------- --------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 5,989,587 1,106,683 4,724,268 885,177
=========== ========= ========= =======
OppMGrInVA VEWwEmgMkt
---------------------- ----------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ 1,596 4,341 -- --
Mortality and expense charges (note 3) ...................... (885) (1,473) (1,117) (402)
------- ------- ------- -------
Net investment activity ............................ 711 2,868 (1,117) (402)
------- ------- ------- -------
Proceeds from mutual fund shares sold ....................... 894,334 254,479 240,058 66,249
Cost of mutual fund shares sold ............................. (886,462) (208,779) (163,081) (45,924)
------- ------- ------- -------
Realized gain (loss) on investments ................ 7,872 45,700 76,977 20,325
Change in unrealized gain (loss) on investments ............. (30,566) 81,678 (140,409) 69,765
------- ------- ------- -------
Net gain (loss) on investments ..................... (22,694) 127,378 (63,432) 90,090
------- ------- ------- -------
Reinvested capital gains .................................... 21,075 7,313 -- --
------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations .. (908) 137,559 (64,549) 89,688
------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 188,694 124,684 137,675 76,780
Transfers between funds ..................................... (193,593) 429,376 118,188 (30,073)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (9,570) (11,994) (9,236) (5,415)
------- ------- ------- -------
Net equity transactions ................... (14,469) 542,066 246,627 41,292
------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... (15,377) 679,625 182,078 130,980
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 528,617 276,899 482,197 133,153
------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 513,240 956,524 664,275 264,133
======= ======= ======= =======
</TABLE>
18
<PAGE> 18
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
VEWwHrdAst VKMSRESec
---------------------- --------------------
2000 1999 2000 1999
--------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ 3,614 1,327 22,511 7,347
Mortality and expense charges (note 3) ...................... (786) (216) (822) (313)
--------- ------- ------- -------
Net investment activity ............................ 2,828 1,111 21,689 7,034
--------- ------- ------- -------
Proceeds from mutual fund shares sold ....................... 163,672 332,265 633,505 491,084
Cost of mutual fund shares sold ............................. (151,128) (309,311) (623,288) (463,524)
--------- ------- ------- -------
Realized gain (loss) on investments ................ 12,544 22,954 10,217 27,560
Change in unrealized gain (loss) on investments ............. 11,597 5,720 15,670 2,328
--------- ------- ------- -------
Net gain (loss) on investments ..................... 24,141 28,674 25,887 29,888
--------- ------- ------- -------
Reinvested capital gains .................................... -- -- -- --
--------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations .. 26,969 29,785 47,576 36,922
--------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 21,688 26,089 121,105 235,712
Transfers between funds ..................................... 69,448 40,017 (288,128) 5,451
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (4,727) (2,224) (6,795) (11,659)
--------- ------- ------- -------
Net equity transactions ................... 86,409 63,882 (173,818) 229,504
--------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 113,378 93,667 (126,242) 266,426
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 315,168 82,749 439,508 14,393
--------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 428,546 176,416 313,266 280,819
========= ======= ======= =======
WPValue WPIntEq
-------------------- --------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ -- -- -- --
Mortality and expense charges (note 3) ...................... (632) (766) (806) (562)
------- ------- ------- -------
Net investment activity ............................ (632) (766) (806) (562)
------- ------- ------- -------
Proceeds from mutual fund shares sold ....................... 627,222 900,326 808,533 158,440
Cost of mutual fund shares sold ............................. (695,105) (811,642) (744,415) (145,585)
------- ------- ------- -------
Realized gain (loss) on investments ................ (67,883) 88,684 64,118 12,855
Change in unrealized gain (loss) on investments ............. 32,445 (31,843) (123,101) 12,371
------- ------- ------- -------
Net gain (loss) on investments ..................... (35,438) 56,841 (58,983) 25,226
------- ------- ------- -------
Reinvested capital gains .................................... -- -- -- --
------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations .. (36,070) 56,075 (59,789) 24,664
------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 179,755 227,908 97,287 119,716
Transfers between funds ..................................... (285,090) (535,326) (104,011) 2,873
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (8,151) (12,735) (2,633) (7,053)
------- ------- ------- -------
Net equity transactions ................... (113,486) (320,153) (9,357) 115,536
------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... (149,556) (264,078) (69,146) 140,200
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 384,325 458,232 433,536 225,231
------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... 234,769 194,154 364,390 365,431
======= ======= ======= =======
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE VL SEPARATE ACCOUNT-C
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
WPGlPVenCp
---------------------
2000 1999
--------- -------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................................ $ -- --
Mortality and expense charges (note 3) ...................... (1,647) (477)
--------- -------
Net investment activity ............................ (1,647) (477)
--------- -------
Proceeds from mutual fund shares sold ....................... 287,044 217,968
Cost of mutual fund shares sold ............................. (171,771) (181,887)
--------- -------
Realized gain (loss) on investments ................ 115,273 36,081
Change in unrealized gain (loss) on investments ............. (76,795) (2,501)
--------- -------
Net gain (loss) on investments ..................... 38,478 33,580
--------- -------
Reinvested capital gains .................................... -- --
--------- -------
Net increase (decrease) in contract owners'
equity resulting from operations .. 36,831 33,103
--------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 279,421 98,602
Transfers between funds ..................................... 15,094 (85,156)
Redemptions to pay cost of insurance
charges and administration charges
(notes 2b and 2c) .................................. (12,233) (7,058)
--------- -------
Net equity transactions ................... 282,282 6,388
--------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ......................... 319,113 39,491
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ................... 649,809 219,786
--------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ......................... $ 968,922 259,277
========= =======
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 20
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VL Separate Account-C (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
and Annuity 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 Corporate Flexible Premium Variable Life Insurance
Policies through the Account.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase.
See note 2 for a discussion of policy charges, and note 3 for asset
charges.
Contract owners may invest in the following:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP);
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (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 Fund Series;
Janus Aspen Series - Global Technology Portfolio - Service
Class (JanAGlTchS)
Janus Aspen Series - International Growth Portfolio - Service
Class (JanAIntGrS)
Portfolio of the Universal Institutional Funds, Inc. (Morgan
Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
(Continued)
21
<PAGE> 21
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, Continued
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Balanced Fund (NSATBal)
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Equity Income Fund (NSATEqInc)
Nationwide SAT - Nationwide 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 - Main Street Growth & Income Fund/VA (OppMGrInVA)
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 except for Janus Aspen Series - Capital Appreciation Portfolio -
Service Class, Strong Opportunity Fund II, Inc., Oppenheimer VAF -
Global Securities Fund and Morgan Stanley Mid Cap Growth Portfolio. 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.
22
<PAGE> 22
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 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.
(2) POLICY CHARGES
(a) Deductions from Premium
The Company deducts a charge for state premium taxes of 3.5% on all
premiums received to cover the payment of premium taxes. Additionally,
the Company deducts a front-end sales load not to exceed 5.5% 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 by
liquidating units. 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
The Company deducts a monthly administrative expense charge to recover
policy maintenance, accounting, record keeping and other administrative
expenses and is assessed against each contract by liquidating units.
Currently, this charge is $5.00 per month in all policy years. On a
guaranteed basis this charge is $10.00 per month in all policy years.
(3) ASSET CHARGES
For corporate flexible premium contracts, the Company deducts a charge from
the contract to cover mortality and expense risk charges related to
operations. This charge is guaranteed not to exceed an annual rate of .75%.
Currently, this rate is .40% during the first through fourth policy years,
.25% during the fifth through twentieth policy years, and .10% thereafter.
For the reduced fee tier corporate flexible premium contracts the current
rate is .10% for all policy years.
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.
(Continued)
23
<PAGE> 23
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(4) 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. There were
no policy loans in the current year.
(5) 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.
24
<PAGE> 24
(6) 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..................... 346,363 $ 12.320813 $ 4,267,474 (4)%
American Century VP - American
Century VP International....................... 343,607 14.970741 5,144,051 (6)%
American Century VP - American
Century VP Value............................... 78,422 8.869662 695,577 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc............................... 33,077 14.778256 488,820 2%
Dreyfus Stock Index Fund..........................2,694,550 13.150463 35,434,580 (1)%
Dreyfus VIF - Appreciation Portfolio.............. 195,232 12.555931 2,451,320 3%
Dreyfus VIP -
European Equity Portfolio...................... 2,148 13.207837 28,370 2%
Federated Insurance Series -
Quality Bond Fund II.......................... 44,144 10.131263 447,234 3%
Fidelity VIP - Equity-Income Portfolio -
Service Class................................. 236,987 10.174924 2,411,325 (3)%
Fidelity VIP - Growth Portfolio -
Service Class................................. 910,558 17.274959 15,729,852 5%
Fidelity VIP - High Income Portfolio -
Service Class................................. 235,156 9.193344 2,161,870 (5)%
Fidelity VIP - Overseas Portfolio -
Service Class................................. 291,200 12.785880 3,723,248 (5)%
Fidelity VIP-II - Contrafund Portfolio -
Service Class................................. 416,155 13.802556 5,744,003 (2)%
Fidelity VIP-III - Growth Opportunities
Portfolio - Service Class..................... 197,046 11.216967 2,210,258 (4)%
Janus Aspen Series -
Global Technology Portfolio................... 32,762 9.793559 320,857 (2)%(a)
Janus Aspen Series -
International Growth Portfolio................ 4,914 10.121953 49,739 1%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio............... 61,253 9.266834 567,621 6%
Nationwide SAT - Balanced Fund................... 94,375 10.305507 972,582 2%
Nationwide SAT -
Capital Appreciation Fund..................... 214,512 11.687690 2,507,150 1%
Nationwide SAT - Equity Income Fund.............. 22,568 12.681211 286,190 2%
Nationwide SAT -
Nationwide Global 50 Fund..................... 67,747 12.596704 853,389 (1)%
</TABLE>
(Continued)
25
<PAGE> 25
NATIONWIDE VL SEPARATE ACCOUNT-C
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
Nationwide SAT - Government Bond Fund........... 814,693 10.768906 8,773,352 4%
Nationwide SAT - High Income Bond Fund.......... 142,533 10.153681 1,447,235 (2)%
Nationwide SAT - Mid Cap Index Fund............. 81,246 12.775205 1,037,934 8%
Nationwide SAT - Money Market Fund.............. 2,043,769 11.058539 22,601,099 3%
Nationwide SAT - Multi Sector Bond Fund......... 243,286 10.336948 2,514,835 2%
Nationwide SAT - Small Cap Growth Fund.......... 43,778 21.463633 939,635 5%
Initial funding by depositor (see note 1a)...... 100,000 21.463633 2,146,363 5%
Nationwide SAT - Small Cap Value Fund........... 105,726 12.104291 1,279,738 11%
Nationwide SAT - Small Company Fund............. 325,780 13.954146 4,545,982 7%
Nationwide SAT - Strategic Growth Fund.......... 55,055 20.297188 1,117,462 5%
Nationwide SAT - Strategic Value Fund........... 12,984 8.642631 112,216 (1)%
Nationwide SAT - Total Return Fund.............. 16,643 11.146280 185,508 3%
Neuberger & Berman AMT -
Guardian Portfolio........................... 55,377 11.067843 612,904 4%
Neuberger & Berman AMT -
Mid-Cap Growth Portfolio..................... 78,414 19.491297 1,528,391 13%
Neuberger & Berman AMT -
Partners Portfolio........................... 126,555 9.911052 1,254,293 (1)%
Oppenheimer -
Aggressive Growth Fund/VA.................... 214,632 21.426999 4,598,920 21%
Oppenheimer -
Capital Appreciation Fund/VA................. 182,060 16.423157 2,990,000 9%
Oppenheimer -
Main Street Growth & Income Fund/VA.......... 47,368 10.835167 513,240 0%
Van Eck WIT -
Worldwide Emerging Markets Fund.............. 60,246 11.026051 664,275 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund................... 50,106 8.552782 428,546 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio............. 31,965 9.800269 313,266 14%
Warburg Pincus Trust -
Global Post - Venture Capital Portfolio...... 62,643 15.467356 968,922 5%
Warburg Pincus Trust -
International Equity Portfolio............... 29,432 12.380758 364,390 (9)%
Warburg Pincus Trust - Value Portfolio.......... 22,920 10.242976 234,769 (3)%
</TABLE>
26
<PAGE> 26
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- ----------- ---------
<S> <C> <C> <C> <C>
The BEST of AMERICA(R)
America's FUTURE Life Series(SM) Reduced Fee Tier:
American Century VP - American
Century VP Income & Growth.................... 290,354 11.101352 3,223,322 (4)%
American Century VP - American
Century VP International...................... 61,417 15.024102 922,735 (6)%
Dreyfus Stock Index Fund......................... 325,655 11.359939 3,699,421 (1)%
Fidelity VIP - Growth Portfolio -
Service Class................................. 501,080 13.179722 6,604,095 5%
Janus Aspen Series -
International Growth Portfolio................ 19,438 10.134840 197,001 1%(a)
Nationwide SAT - Government Bond Fund............ 739,786 10.284568 7,608,379 4%
Nationwide SAT - Money Market Fund............... 197,921 10.644566 2,106,783 3%
Nationwide SAT - Multi Sector Bond Fund.......... 5,259 10.416467 54,780 2%
Neuberger & Berman AMT -
Guardian Portfolio............................ 32,870 11.364157 373,540 4%
Oppenheimer -
Aggressive Growth Fund/VA..................... 69,127 20.117568 1,390,667 21%
Oppenheimer -
Capital Appreciation Fund/VA.................. 119,850 14.470324 1,734,268 9%
======== ========= ------------
$175,583,776
============
</TABLE>
(a) These returns were computed for the period 05/01/00 through 06/30/00.
(b) The period return does not include contract charges satisfied by surrending
units.
27
<PAGE> 27
NATIONWIDE LIFE AND ANNUITY INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
P A I D
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
