<PAGE> 1
MFS
VARIABLE
ACCOUNT
Semi-Annual Report
to
Contract Owners
June 30, 1995
NATIONWIDE LIFE INSURANCE COMPANY (LOGO)
HOME OFFICE: COLUMBUS, OHIO
APO-719-S (6/95)
<PAGE> 2
Nationwide (R) is a registered federal service mark of Nationwide Mutual
Insurance Company
<PAGE> 3
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43216
[PHOTO]
PRESIDENT'S MESSAGE
We are pleased to present the 1995 semi-annual report of the MFS Variable
Account.
The first half of 1995 proved rewarding for both stock and bond fund investors.
During this period, stock funds as a group scored a gain of almost 17 percent
while bond funds were ahead by over 9 percent, as measured by Lipper Analytical
Services, Inc.
The economy slowed during the second quarter in deference to the Federal
Reserve's goal of a "soft landing". In early July the Fed trimmed the federal
funds rate 25 basis points, the first easing by the Fed in almost three years.
This move provided additional fuel to the markets in the current quarter.
Continued low inflation, favorable corporate earnings and slow but sustainable
economic growth should support further advances in the equity and fixed income
markets for the remainder of the year and into 1996.
We extend our thanks that you have selected our investment products to help you
meet your financial planning and retirement needs.
/s/ Peter F. Frenzer
Peter F. Frenzer, President
3
<PAGE> 4
--------------------------------------------------------------------------------
MFS VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1995
(UNAUDITED)
<TABLE>
ASSETS:
<S> <C>
Investments at market value:
MFS Series Trust IV - MFS(R) Money Market Fund (MFSMyMkt)
73,582,158 shares (cost $73,582,158) . . . . . . . . . . . . . . . . . . . . . . . . . $ 73,582,158
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
2,985,921 shares (cost $33,646,283) . . . . . . . . . . . . . . . . . . . . . . . . . . 33,322,876
Massachusetts Investors Trust - Class A (MFSInvTr)
2,638,259 shares (cost $32,613,135) . . . . . . . . . . . . . . . . . . . . . . . . . . 31,236,984
MFS(R) Bond Fund - Class A (MFSBdFd)
2,972,736 shares (cost $40,517,663) . . . . . . . . . . . . . . . . . . . . . . . . . . 39,418,482
MFS(R) Emerging Growth Fund - Class A (MFSEmGro)
474,967 shares (cost $8,506,627) . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,506,268
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
8,193,016 shares (cost $89,691,597) . . . . . . . . . . . . . . . . . . . . . . . . . . 99,954,790
MFS(R) High Income Fund - Class A (MFSHiInc)
7,093,931 shares (cost $35,995,940) . . . . . . . . . . . . . . . . . . . . . . . . . . 36,037,169
MFS(R) Research Fund - Class A (MFSRsrch)
2,206,407 shares (cost $27,157,854) . . . . . . . . . . . . . . . . . . . . . . . . . . 31,154,466
MFS(R) Total Return Fund - Class A (MFSTotRe)
4,936,125 shares (cost $60,274,763) . . . . . . . . . . . . . . . . . . . . . . . . . . 68,365,333
MFS(R) World Governments Fund - Class A (MFSWdGvt)
972,461 shares (cost $11,943,549) . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,893,197
Nationwide Separate Account Trust - Money Market Fund (NWMyMkt)
2,203,324 shares (cost $2,203,324) . . . . . . . . . . . . . . . . . . . . . . . . . . 2,203,324
------------
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,675,047
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,100
------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 437,878,147
ACCOUNTS PAYABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,153
------------
CONTRACT OWNERS' EQUITY (NOTE 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $437,873,994
============
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
4
<PAGE> 5
--------------------------------------------------------------------------------
MFS VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
Six Month Periods Ended June 30, 1995, 1994 and 1993
(UNAUDITED)
<TABLE>
1995 1994 1993
------------- ------------- -------------
INVESTMENT ACTIVITY:
<S> <C> <C> <C>
Reinvested capital gains and dividends . . . . . . . . . . $ 6,980,030 6,460,711 6,965,075
------------- ------------- -------------
Gain (loss) on investments:
Proceeds from redemptions of mutual fund shares . . . . 54,954,049 65,315,354 70,769,004
Cost of mutual fund shares sold . . . . . . . . . . . . (54,493,977) (62,650,783) (67,980,968)
------------- ------------- -------------
Realized gain on investments . . . . . . . . . . . . . . 460,072 2,664,571 2,788,036
Change in unrealized gain (loss) on investments . . . . 46,388,643 (32,029,253) 23,338,963
------------- ------------- -------------
Net gain (loss) on investments . . . . . . . . . . . 46,848,715 (29,364,682) 26,126,999
------------- ------------- -------------
Net investment activity . . . . . . . . . 53,828,745 (22,903,971) 33,092,074
------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from contract
owners . . . . . . . . . . . . . . . . . . . . . . . . . 9,396,786 8,455,123 13,610,493
Redemptions . . . . . . . . . . . . . . . . . . . . . . . (38,892,976) (40,513,572) (46,148,659)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . (253,123) (267,199) (290,704)
Adjustments to maintain reserves . . . . . . . . . . . . . 36,989 (1,463) 49,016
------------- ------------- -------------
Net equity transactions . . . . . . . . . (29,712,324) (32,327,111) (32,779,854)
------------- ------------- -------------
EXPENSES (NOTE 2):
Contract charges . . . . . . . . . . . . . . . . . . . . . (3,027,855) (3,317,358) (3,561,597)
Contingent deferred sales charges . . . . . . . . . . . . (117,137) (119,530) (175,678)
------------- ------------- -------------
Total expenses . . . . . . . . . . . . . . (3,144,992) (3,436,888) (3,737,275)
------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY . . . . . . . . . . . . 20,971,429 (58,667,970) (3,425,055)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD . . . . . . . . . 416,902,565 491,495,453 501,446,752
------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD . . . . . . . . . . . . $ 437,873,994 432,827,483 498,021,697
============= ============= =============
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
5
<PAGE> 6
MFS VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1995, 1994 and 1993
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization
MFS Variable Account (the Account) was established by resolution of the
Board of Directors of Nationwide Life Insurance Company (the Company) on March
3, 1976. The Account has been registered as a unit investment trust under the
Investment Company Act of 1940.
(b) The Contracts
Prior to February 12, 1979, the contracts purchased (both flexible purchase
payments and single purchase payment) provided for a front-end sales charge and
certain other fees. Beginning February 12, 1979, only flexible purchase payment
contracts (Spectrum) without a front-end sales charge but with a contingent
deferred sales charge and certain other fees were offered for purchase. See
note 2 for a discussion of contract expenses.
With certain exceptions, contract owners in either the accumulation or
payout phase may invest in any of the following funds:
MFS Series Trust IV - MFS (R) Money Market Fund (MFSMyMkt) (formerly
Massachusetts Cash Management Trust - MFS(R) Money Market Fund)
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
Massachusetts Investors Trust - Class A (MFSInvTr)
MFS(R) Bond Fund - Class A (MFSBdFd)
MFS(R) Emerging Growth Fund - Class A (MFSEmGro)
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp) (formerly
MFS(R) Capital Development Fund)
MFS(R) High Income Fund - Class A (MFSHiInc) (formerly
Massachusetts Financial High Income Trust - Series I)
MFS(R) Research Fund - Class A (MFSRsrch)
MFS(R) Total Return Fund - Class A (MFSTotRe)
MFS(R) World Governments Fund - Class A (MFSWdGvt)
Nationwide Separate Account Trust - Money Market Fund (NWMyMkt)
(managed for a fee by an affiliated investment advisor)
At June 30, 1995, contract owners have invested in all of the above funds.
The contract owners' equity is affected by the investment results of each fund
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.
(c) Security Valuation, Transactions and Related Investment Income
The market value of investments is based on the closing bid prices at June
30, 1995. The cost of investments sold is determined on a 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 Internal Revenue Service issued Rev. Rul. 81-225 on September 25, 1981
and IR-82-19 on February 3, 1982. The effect of Rev. Rul. 81-225 was to treat
non-tax qualified contract holders, who purchased contracts
6
<PAGE> 7
or made purchase payments after December 31, 1980, as the owners of the
underlying mutual fund shares for Federal income tax purposes. However, for
1981, IR-82-19 did provide limited relief from the ruling. Therefore, the
Company maintained a capital gain reserve liability, for all realized and
unrealized capital gains existing on or before December 31, 1981.
During 1982 and most of 1983, the Company continued to maintain contract
values which reflected a capital gain reserve liability for those contracts and
contract values affected by Rev. Rul. 81-225. On December 16, 1983, the Company
adjusted the affected (81-225) contract values in order to treat the respective
contract owners as the owners of the underlying shares for Federal income tax
purposes, as intended by the ruling. As a result of this adjustment, contract
owners equity was restored with amounts previously deducted to maintain the
capital gain reserve liability.
Because of the aforementioned, the Company no longer provides for income
taxes within the Account. Presently, taxes are the responsibility of the
contract owner upon termination or withdrawal.
(2) EXPENSES
Net purchase payments received on contracts issued before February 12, 1979
represent gross contributions by the contract owners less a charge of 7.75% by
the Company to cover sales expenses.The Company does not deduct a sales charge
from purchase payments made for contracts issued beginning February 12, 1979.
However, if any part of the contract value of such contracts is surrendered the
Company will, with certain exceptions, deduct from the owner's contract value a
contingent deferred sales charge equal to 5% of the lesser of the total of all
purchase payments made within 96 months prior to the date of the request for
surrender, or the amount surrendered; no sales charges are deducted on
redemptions used to purchase units in the fixed investment options of the
Company.
The following administrative charges are deducted by the Company on each
contract issued prior to February 12, 1979: (a) a contract issue charge of $15
assessed against the initial purchase payment and a $15 annual contract
maintenance charge assessed against each contract by surrendering units; and
(b) a charge for mortality and expense risk assessed through the daily unit
value calculation equal to an annual rate of 0.80% and 0.20%, respectively.
Administrative charges on contracts issued beginning February 12, 1979 include:
(a) an annual contract maintenance charge of $30 which is satisfied by
surrendering units; and (b) a charge for mortality and expense risk assessed
through the daily unit value calculation equal to an annual rate of 0.80% and
0.50%, respectively.
(3) SCHEDULE I
Schedule I presents the components of the change in the unit values, which
are the basis for contract owners' equity. This schedule is presented for each
series, as applicable, in the following format:
* Beginning unit value - Jan. 1
* Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to capital
gains and dividend distributions from the underlying mutual funds.)
* Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the fund.)
* Contract charges
(This amount reflects the decrease in the unit value due to the
mortality and expense risk fee discussed in note 2.)
* Ending unit value - June 30
* Percentage increase (decrease) in unit value.
For contracts in the payout phase, an assumed investment return of 3.5%,
used in the calculation of the annuity benefit payment amount, results in a
corresponding reduction in the components of the unit values as shown in
Schedule I.
7
<PAGE> 8
<TABLE>
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1995, for each series, in both the accumulation and payout
phases. Due to the nature of money market funds, an 81-225 adjustment (See note 1(d)) was not required for either the MFS Series
Trust IV - MFS (R) Money Market Fund or the Nationwide Separate Account Trust Money Market Fund.
Contract owners' equity represented by:
Contracts in accumulation phase: Units Unit Value
MFS Series Trust IV - ----- ----------
<S> <C> <C> <C>
MFS(R) Money Market Fund:
Non-tax qualified . . . . . . . . . . . . . . . . . 8,309 $ 33.289806 $ 276,605
Tax qualified spectrum . . . . . . . . . . . . . . 1,850,752 28.519685 52,782,864
Non-tax qualified spectrum . . . . . . . . . . . . 693,890 28.539502 19,803,275
Massachusetts Investors Growth Stock Fund - Class A:
Non-tax qualified . . . . . . . . . . . . . . . . . 1,043 71.231645 74,295
Tax qualified spectrum . . . . . . . . . . . . . . 341,600 75.728284 25,868,782
Non-tax qualified spectrum . . . . . . . . . . . . 106,546 64.259322 6,846,574
Non-tax qualified spectrum (81-225) . . . . . . . . 6,027 70.002245 421,904
Massachusetts Investors Trust - Class A:
Tax qualified . . . . . . . . . . . . . . . . . . . 17 86.584222 1,472
Tax qualified spectrum . . . . . . . . . . . . . . 357,966 69.803911 24,987,427
Non-tax qualified spectrum . . . . . . . . . . . . 94,505 62.630871 5,918,930
Non-tax qualified spectrum (81-225) . . . . . . . . 4,439 66.539099 295,367
MFS(R) Bond Fund - Class A:
Non-tax qualified . . . . . . . . . . . . . . . . . 450 47.854534 21,535
Tax qualified spectrum . . . . . . . . . . . . . . 655,054 41.230814 27,008,410
Non-tax qualified spectrum . . . . . . . . . . . . 276,719 41.197108 11,400,023
Non-tax qualified spectrum (81-225) . . . . . . . . 5,101 41.358219 210,968
MFS(R) Emerging Growth Fund - Class A:
Tax qualified spectrum . . . . . . . . . . . . . . 415,906 25.213069 10,486,267
Non-tax qualified spectrum (81-225) . . . . . . . . 792 25.213069 19,969
MFS(R) Growth Opportunities Fund - Class A:
Non-tax qualified . . . . . . . . . . . . . . . . . 2,788 92.831520 258,814
Tax qualified spectrum . . . . . . . . . . . . . . 957,714 86.725610 83,058,331
Non-tax qualified spectrum . . . . . . . . . . . . 196,681 73.668461 14,489,187
Non-tax qualified spectrum (81-225) . . . . . . . . 15,617 81.284851 1,269,426
MFS(R) High Income Fund - Class A:
Non-tax qualified . . . . . . . . . . . . . . . . . 359 54.651994 19,620
Tax qualified spectrum . . . . . . . . . . . . . . 531,284 48.129001 25,570,168
Non-tax qualified spectrum . . . . . . . . . . . . 201,678 47.398840 9,559,303
Non-tax qualified spectrum (81-225) . . . . . . . . 6,730 48.129001 323,908
MFS(R) Research Fund - Class A:
Non-tax qualified . . . . . . . . . . . . . . . . . 599 85.947416 51,483
Tax qualified spectrum . . . . . . . . . . . . . . 277,414 85.256322 23,651,297
Non-tax qualified spectrum . . . . . . . . . . . . 95,031 74.494327 7,079,270
Non-tax qualified spectrum (81-225) . . . . . . . . 1,754 84.261154 147,794
MFS(R) Total Return Fund - Class A:
Tax qualified . . . . . . . . . . . . . . . . . . . 132 72.102063 9,517
Non-tax qualified . . . . . . . . . . . . . . . . . 87 70.853343 6,164
Tax qualified spectrum . . . . . . . . . . . . . . 820,753 66.397096 54,495,616
Non-tax qualified spectrum . . . . . . . . . . . . 209,719 64.270174 13,478,677
Non-tax qualified spectrum (81-225) . . . . . . . . 2,151 65.751141 141,431
MFS(R) World Governments Fund - Class A:
Tax qualified spectrum . . . . . . . . . . . . . . 205,558 47.791276 9,823,879
Non-tax qualified spectrum . . . . . . . . . . . . 39,983 46.593401 1,862,944
Non-tax qualified spectrum (81-225) . . . . . . . . 2,760 47.716982 131,699
Nationwide Separate Account Trust-
Money Market Fund:
Tax qualified spectrum . . . . . . . . . . . . . . 64,208 21.514747 1,381,419
Non-tax qualified spectrum . . . . . . . . . . . . 38,168 21.528742 821,709
Reserves for annuity contracts in payout phase: ======= =========
Tax qualified . . . . . . . . . . . . . . . . . . . 44,492
Non-tax qualified . . . . . . . . . . . . . . . . . 81,302
Tax qualified spectrum . . . . . . . . . . . . . . 2,620,315
Non-tax qualified spectrum . . . . . . . . . . . . 1,062,574
Non-tax qualified spectrum (81-225) . . . . . . . . 8,988
---------------
$ 437,873,994
===============
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 9
<TABLE>
Schedule I
MFS VARIABLE ACCOUNT
TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
Six Month Periods Ended June 30, 1995, 1994 and 1993 (UNAUDITED)
MFSInvTr MFSBdFd MFSTotRe
1995*** -------- ------- --------
<S> <C> <C> <C>
Beginning unit value - Jan. 1 $73.217470 ** 63.581031
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .893498 1.596993
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 12.873592 7.266893
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.400338) (.342854)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $86.584222 72.102063
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 18% 13%
====================================================================================================================================
1994***
Beginning unit value - Jan. 1 $74.716077 42.399834 65.964662
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .778857 1.303901 1.357255
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (2.529846) (3.745988) (3.374094)
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.372841) (.205447) (.319270)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $72.592247 39.752300 63.628553
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* (3)% (6)% (4)%
====================================================================================================================================
1993***
Beginning unit value - Jan. 1 $68.591640 37.614804 57.871052
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .771588 1.239241 1.369746
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 2.222438 2.152496 4.578973
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.348848) (.195971) (.330665)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $71.236818 40.810570 63.489106
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 4% 8% 10%
====================================================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for a six month period and contract charges do not include
the annual contract maintenance charge discussed in note 2.
** This investment option was not being utilized.
*** No other investment options were being utilized.
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 10
<TABLE>
Schedule I, continued
MFS VARIABLE ACCOUNT
NON-TAX QUALIFIED
SCHEDULES OF CHANGES IN UNIT VALUE
Six Month Periods Ended June 30, 1995, 1994 and 1993 (UNAUDITED)
MFSMYMKT MFSGRSTK MFSINVTR MFSBDFD
-------- -------- -------- -------
<S> <C> <C> <C> <C>
1995
Beginning unit value - Jan. 1 $32.595660 61.261465 ** 42.342529
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .859590 .000000 1.699492
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 10.292436 4.037530
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.165444) (.322256) (.225017)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $33.289806 71.231645 47.854534
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 2% 16% 13%
====================================================================================================================================
1994
Beginning unit value - Jan. 1 $31.804010 66.343035 ** 44.767184
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .435996 .000000 1.376701
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 (8.878516) (3.955140)
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.159309) (.311402) (.216918)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $32.080697 57.153117 41.971827
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 1% (14)% (6)%
====================================================================================================================================
1993
Beginning unit value - Jan. 1 $31.374016 58.545028 64.725197 39.714988
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .370863 .000000 .728095 1.308433
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 1.835364 2.097159 2.272682
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.157074) (.285498) (.329185) (.206918)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $31.587805 60.094894 67.221266 43.089185
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 1% 3% 4% 8%
====================================================================================================================================
MFSGROPP MFSHIINC MFSRSRCH MFSTOTRE
1995 -------- -------- -------- --------
Beginning unit value - Jan. 1 77.773322 49.895862 73.593263 62.479885
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .000000 2.293809 .000000 1.569331
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 15.479139 2.727424 12.750101 7.141045
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.420941) (.265101) (.395948) (.336918)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 92.831520 54.651994 85.947416 70.853343
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 19% 10% 17% 13%
====================================================================================================================================
1994
Beginning unit value - Jan. 1 81.961605 51.758789 74.327082 64.822235
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .000000 2.195292 .000000 1.333756
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (7.416311) (4.007914) (3.061263) (3.315670)
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.399107) (.254196) (.371460) (.313737)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 74.146187 49.691971 70.894359 62.526584
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* (10)% (4)% (5)% (4)%
====================================================================================================================================
1993
Beginning unit value - Jan. 1 71.251149 43.789729 61.704356 56.868802
------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains and dividends .317400 1.754350 .000000 1.346014
------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 6.360926 3.697262 5.404613 4.499670
------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.366858) (.232638) (.315468) (.324933)
------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 77.562617 49.008703 66.793501 62.389553
------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in
unit value* 9% 12% 8% 10%
====================================================================================================================================
<FN>
* This is not an annualized rate of return as it is the change for a six month period and contract charges do not
include the annual contract maintenance charge discussed in note 2.
** This investment option was not being utilized.
</TABLE>
10
<PAGE> 11
<TABLE>
SCHEDULE I, CONTINUED
MFS VARIABLE ACCOUNT
TAX QUALIFIED SPECTRUM
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1995, 1994 AND 1993
(UNAUDITED)
MFSMYMKT MFSGRSTK MFSINVTR MFSBDFD MFSEMGRO
---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
1995
Beginning unit value - Jan.1 $27.967294 65.227303 59.116939 36.536936 21.706658
------------------------------------------------------------------------------------------------------------------------
Reinvested capital
gains and
dividends .737063 .000000 .720618 1.465521 .000000
------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 10.947366 10.386873 3.480954 3.658108
------------------------------------------------------------------------------------------------------------------------
Contract charges (.184672) (.446385) (.420519) (.252597) (.151697)
------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $28.519685 75.728284 69.803911 41.230814 25.213069
------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* 2% 16% 18% 13% 16%
========================================================================================================================
1994
Beginning unit value - Jan.1 $27.370768 70.852048 60.509797 38.746280 20.977490
------------------------------------------------------------------------------------------------------------------------
Reinvested capital
gains and
dividends .374971 .000000 .630073 1.190642 .000000
------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 (9.473776) (2.045676) (3.420446) (1.809190)
------------------------------------------------------------------------------------------------------------------------
Contract charges (.178372) (.432675) (.392841) (.244267) (.136982)
------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $27.567367 60.945597 58.701353 36.272209 19.031318
------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* 1% (14)% (3)% (6)% (9)%
========================================================================================================================
1993
Beginning unit value - Jan.1 $27.082782 62.713932 55.718475 34.477915 16.755110
------------------------------------------------------------------------------------------------------------------------
Reinvested capital
gains and
dividends .319941 .000000 .626097 1.135056 .000000
------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 1.961439 1.804468 1.971763 1.428601
------------------------------------------------------------------------------------------------------------------------
Contract charges (.176399) (.397890) (.368675) (.233695) (.108141)
------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $27.226324 64.277481 57.780365 37.351039 18.075570
------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* 1% 2% 4% 8% 8%
========================================================================================================================
MFSGROPP MFSHIINC MFSRSRCH MFSTOTRE MFSWDGVT NWMYMKT
---------- ---------- ---------- ---------- ---------- ---------
1995
Beginning unit value - Jan.1 72.767772 44.007083 73.111959 58.638949 42.911877 21.058716
------------------------------------------------------------------------------------------------------------------------
Reinvested capital
gains and
dividends .000000 2.021820 .000000 1.471900 .000000 .595236
------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 14.470225 2.404312 12.656116 6.697606 5.177061 .000000
------------------------------------------------------------------------------------------------------------------------
Contract charges (.512387) (.304214) (.511753) (.411359) (.297662) (.139205)
------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 86.725610 48.129001 85.256322 66.397096 47.791276 21.514747
------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* 19% 9% 17% 13% 11% 2%
========================================================================================================================
1994
Beginning unit value - Jan.1 76.918993 45.788518 74.064821 61.021714 46.532702 20.538004
------------------------------------------------------------------------------------------------------------------------
Reinvested capital
gains and
dividends .000000 1.940884 .000000 1.254926 .581237 .324441
------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (6.952028) (3.542839) (3.045345) (3.120266) (4.518205) .000000
------------------------------------------------------------------------------------------------------------------------
Contract charges (.487298) (.292569) (.481567) (.384236) (.283499) (.133993)
------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 69.479667 43.893994 70.537909 58.772138 42.312235 20.728452
------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* (10)% (4)% (5)% (4)% (9)% 1%
========================================================================================================================
1993
Beginning unit value - Jan.1 67.070484 38.856280 61.673295 53.697197 39.821939 20.250996
------------------------------------------------------------------------------------------------------------------------
Reinvested capital
gains and
dividends .298341 1.555564 .000000 1.269959 .000000 .276059
------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 5.982520 3.278742 5.396592 4.246943 3.692122 .000000
------------------------------------------------------------------------------------------------------------------------
Contract charges (.449280) (.268561) (.410213) (.392515) (.267932) (.132035)
------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 72.902065 43.422025 66.659674 58.821584 43.246129 20.395020
------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in
unit value* 9% 12% 8% 10% 9% 1%
========================================================================================================================
<FN>
*This is not an annualized rate of return as it is the change for a six month
period and contract charges do not include the annual contract maintenance
charge discussed in note 2.
</TABLE>
11
<PAGE> 12
<TABLE>
SCHEDULE I, CONTINUED
MFS VARIABLE ACCOUNT
NON-TAX QUALIFIED SPECTRUM
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1995, 1994 AND 1993
(UNAUDITED)
<CAPTION>
MFSMYMKT MFSGRSTK MFSINVTR MFSBDFD MFSGROPP
---------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
1995
Beginning unit value - Jan. 1 $27.986728 55.348697 53.042089 36.507070 61.812074
-----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .737579 .000000 .646567 1.464324 .000000
-----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 9.289403 9.319525 3.478098 12.291632
-----------------------------------------------------------------------------------------------------------------
Contract charges (.184805) (.378778) (.377310) (.252384) (.435245)
-----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $28.539502 64.259322 62.630871 41.197108 73.668461
-----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 2% 16% 18% 13% 19%
=================================================================================================================
1994
Beginning unit value - Jan. 1 $27.389788 60.121583 54.291825 38.714601 65.338300
-----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .375226 .000000 .565326 1.189669 .000000
-----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 (8.038978) (1.835464) (3.417644) (5.905353)
-----------------------------------------------------------------------------------------------------------------
Contract charges (.178491) (.367150) (.352472) (.244065) (.413932)
-----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $27.586523 51.715455 52.669215 36.242561 59.019015
-----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 1% (14)% (3)% (6)% (10)%
=================================================================================================================
1993
Beginning unit value - Jan. 1 $27.101602 53.215976 49.992851 34.449725 56.972537
-----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .320170 .000000 .561759 1.134126 .253424
-----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 1.664384 1.619044 1.970158 5.081816
-----------------------------------------------------------------------------------------------------------------
Contract charges (.176529) (.337635) (.330792) (.233508) (.381631)
-----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $27.245243 54.542725 51.842862 37.320501 61.926146
-----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 1% 2% 4% 8% 9%
=================================================================================================================
MFSHIINC MFSRSRCH MFSTOTRE MFSWDGVT NWMYMKT
---------- ---------- ---------- ---------- ---------
1995
Beginning unit value - Jan. 1 43.339456 63.882963 56.760546 41.836304 21.072414
-----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.991133 .000000 1.424774 .000000 .595624
-----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 2.367840 11.058518 6.483046 5.047305 .000000
-----------------------------------------------------------------------------------------------------------------
Contract charges (.299589) (.447154) (.398192) (.290208) (.139296)
-----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 47.398840 74.494327 64.270174 46.593401 21.528742
-----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 9% 17% 13% 11% 2%
=================================================================================================================
1994
Beginning unit value - Jan. 1 45.093866 64.715547 59.066983 45.366368 20.551361
-----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.911426 .000000 1.214739 .566669 .324652
-----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (3.489080) (2.660931) (3.020319) (4.404950) .000000
-----------------------------------------------------------------------------------------------------------------
Contract charges (.288128) (.420777) (.371934) (.276394) (.134079)
-----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 43.228084 61.633839 56.889469 41.251693 20.741934
-----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (4)% (5)% (4)% (9)% 1%
=================================================================================================================
1993
Beginning unit value - Jan. 1 38.266802 53.888228 51.977095 38.823817 20.264167
-----------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.531967 .000000 1.229263 .000000 .276237
-----------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 3.228993 4.715368 4.110906 3.599574 .000000
-----------------------------------------------------------------------------------------------------------------
Contract charges (.264488) (.358430) (.379934) (.261217) (.132119)
-----------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 42.763274 58.245166 56.937330 42.162174 20.408285
-----------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% 8% 10% 9% 1%
=================================================================================================================
<FN>
*This is not an annualized rate of return as it is the change for a six
month period and contract charges do not include the annual contract
maintenance charge discussed in note 2.
</TABLE>
12
<PAGE> 13
<TABLE>
SCHEDULE I, CONTINUED
MFS VARIABLE ACCOUNT
NON-TAX QUALIFIED SPECTRUM (81-225)
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1995, 1994 AND 1993
(UNAUDITED)
<CAPTION>
MFSGRSTK MFSINVTR MFSBDFD MFSEMGRO
---------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C>
1995
Beginning unit value - Jan. 1 $60.295273 56.351973 36.649839 21.706658
---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .686914 1.470051 .000000
---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 10.119603 9.901063 3.491702 3.658108
---------------------------------------------------------------------------------------------------------------------------
Contract charges (.412631) (.400851) (.253373) (.151697)
---------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $70.002245 66.539099 41.358219 25.213069
---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in unit value* 16% 18% 13% 16%
===========================================================================================================================
1994
Beginning unit value - Jan. 1 $65.494712 57.679687 38.865999 20.977490
---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .600603 1.194322 .000000
---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (8.757424) (1.949990) (3.431015) (1.809190)
---------------------------------------------------------------------------------------------------------------------------
Contract charges (.399966) (.374468) (.245017) (.136982)
---------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $56.337322 55.955832 36.384289 19.031318
---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in unit value* (14)% (3)% (6)% (9)%
===========================================================================================================================
1993
Beginning unit value - Jan. 1 $57.971950 53.112457 34.584435 16.755110
---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .596813 1.138563 .000000
---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.813127 1.720064 1.977863 1.428601
---------------------------------------------------------------------------------------------------------------------------
Contract charges (.367808) (.351424) (.234419) (.108141)
---------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $59.417269 55.077910 37.466442 18.075570
---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in unit value* 2% 4% 8% 8%
===========================================================================================================================
MFSGROPP MFSHIINC MFSRSRCH MFSTOTRE MFSWDGVT
---------- ---------- ---------- ---------- ----------
1995
Beginning unit value - Jan. 1 68.202665 44.007083 72.258548 58.068470 42.845163
---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 2.021820 .000000 1.457625 .000000
---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 13.562430 2.404312 12.508389 6.632404 5.169023
---------------------------------------------------------------------------------------------------------------------------
Contract charges (.480244) (.304214) (.505783) (.407358) (.297204)
---------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 81.284851 48.129001 84.261154 65.751141 47.716982
---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in unit value* 19% 9% 17% 13% 11%
===========================================================================================================================
1994
Beginning unit value - Jan. 1 72.093454 45.788518 73.200301 60.428053 46.460353
---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 1.940884 .000000 1.242742 .580334
---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (6.515890) (3.542839) (3.009804) (3.089929) (4.511175)
---------------------------------------------------------------------------------------------------------------------------
Contract charges (.456727) (.292569) (.475948) (.380503) (.283058)
---------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 65.120837 43.893994 69.714549 58.200363 42.246454
---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in unit value* (10)% (4)% (5)% (4)% (9)%
===========================================================================================================================
1993
Beginning unit value - Jan. 1 62.862782 38.856280 60.953415 53.174791 39.760030
---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .279624 1.555564 .000000 1.257600 .000000
---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 5.607209 3.278742 5.333600 4.205628 3.686378
---------------------------------------------------------------------------------------------------------------------------
Contract charges (.421093) (.268561) (.405427) (.388692) (.267516)
---------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 68.328522 43.422025 65.881588 58.249327 43.178892
---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease) in unit value* 9% 12% 8% 10% 9%
===========================================================================================================================
<FN>
*This is not an annualized rate of return as it is the change for a six
month period and contract charges do not include the annual contract
maintenance charge discussed in note 2.
</TABLE>
13
<PAGE> 14
[THIS PAGE LEFT BLANK INTENTIONALLY]
14
<PAGE> 15
[THIS PAGE LEFT BLANK INTENIONALLY]
15
<PAGE> 16
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit NO. 521
