<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1998
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to present the 1998
semi-annual report of the Nationwide Variable Account.
The bull market continued its run in the first half of 1998. Most of
the gains came in the first quarter with more modest returns or small
losses for the second half of the period. At this writing, a market
correction that began in the second quarter continues to provide a good
deal of day-to-day volatility. Much of the capriciousness of the market
is due to uncertainty about the economic outcome in Asia. However, we
think the correction will be of limited magnitude and duration and will
provide a healthy respite before further market advances.
We believe that existing economic and market fundamentals provide an
ongoing favorable environment for financial assets. Interest rates
remain low; inflation is nearly nonexistent; corporate earnings, albeit
slowing, remain positive, and U.S. economic growth appears to be on a
modest but sustainable track.
Against this backdrop, we believe our variable insurance products
continue to provide the versatile investment vehicle you need to
respond to changing market conditions. We are committed to the
continual evaluation of our products and services to ensure that we
remain responsive to your long-term financial planning and
retirement-savings needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 17, 1998
3
<PAGE> 3
- --------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century: Benham Short-Term Government Fund (ACBenSTGvt)
331,139 shares (cost $3,143,255) ............................................................. $ 3,142,511
American Century: Income & Growth Fund (ACIncGro)
176,587 shares (cost $4,658,734) ............................................................. 4,983,276
American Century: Twentieth Century Growth Fund (ACTCGro)
413,926 shares (cost $8,782,914) ............................................................. 12,260,481
American Century: Twentieth Century International Growth Fund (ACTCIntlGr)
94,220 shares (cost $890,523) ................................................................ 971,411
American Century: Twentieth Century Ultra Fund (ACTCUltra)
445,167 shares (cost $12,803,972) ............................................................ 15,068,911
Delaware Group Delchester High-Yield Bond Fund, Inc. -
Delchester Fund Institutional Class (DeHYBd)
190,545 shares (cost $1,212,172) ............................................................. 1,265,219
Dreyfus A Bonds Plus, Inc. (DryABds)
130,315 shares (cost $1,888,027) ............................................................. 1,935,178
Dreyfus Appreciation Fund, Inc. (DryApp)
2,919 shares (cost $106,630) ................................................................. 114,312
Dreyfus Balanced Fund, Inc. (DryBal)
6,590 shares (cost $113,842) ................................................................. 112,747
Dreyfus S&P 500 Index Fund (Dry500Ix)
301,937 shares (cost $8,527,995) ............................................................. 10,175,291
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
75,278 shares (cost $794,903) ................................................................ 934,958
Evergreen Income and Growth Fund - Class Y (EvIncGro)
48,019 shares (cost $977,844) ................................................................ 1,146,202
Federated High Yield Trust (FedHiYld)
3,236 shares (cost $31,449) .................................................................. 30,969
Federated Investment Series Funds, Inc. - Federated Bond Fund - Class F (FedBdFd)
89,851 shares (cost $899,454) ................................................................ 910,195
Fidelity Advisor Balanced Fund - Class T (FABal)
38,580 shares (cost $746,777) ................................................................ 770,452
Fidelity Advisor Equity Income Fund - Class T (FAEqInc)
52,878 shares (cost $1,270,311) .............................................................. 1,515,479
Fidelity Advisor Growth Opportunities Fund - Class T (FAGrOpp)
131,303 shares (cost $5,346,005) ............................................................. 6,181,740
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
237,851 shares (cost $3,030,799) ............................................................. 3,058,762
Fidelity Asset Manager(TM) (FidAsMgr)
189,838 shares (cost $3,234,172) ............................................................. 3,709,443
Fidelity Capital & Income Fund (FidCapInc)
123,304 shares (cost $1,139,733) ............................................................. 1,277,425
Fidelity Equity-Income Fund (FidEqInc)
321,680 shares (cost $12,790,562) ............................................................ 18,400,083
Fidelity Magellan(R) Fund (FidMgln)
172,587 shares (cost $15,037,103) ............................................................ 18,920,761
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Fidelity Puritan(R) Fund (FidPurtn)
662,667 shares (cost $11,957,004) ............................................................ 14,008,786
Fidelity VIP - High Income Portfolio (FidVIPHI)
21,812 shares (cost $246,677) ................................................................ 275,487
Franklin Mutual Series Fund Inc. - Mutual Shares Fund - Class 1 (FranMutSer)
3,846 shares (cost $87,229) .................................................................. 87,025
Janus Fund (JanFund)
157,216 shares (cost $4,144,253) ............................................................. 4,743,216
Janus Twenty Fund (Jan20Fd)
239,485 shares (cost $7,882,887) ............................................................. 10,079,922
Janus Worldwide Fund (JanWrldwde)
131,787 shares (cost $5,322,736) ............................................................. 6,211,138
MFS(R) World Governments Fund - Class A (MFSWdGvt)
62,494 shares (cost $707,777) ................................................................ 695,555
Nationwide(R) Bond Fund - Class D (NWBdFd)
155,050 shares (cost $1,450,760) ............................................................. 1,496,236
Nationwide(R) Fund - Class D (NWFund)
216,425 shares (cost $5,200,845) ............................................................. 6,698,366
Nationwide(R) Growth Fund - Class D (NWGroFd)
254,982 shares (cost $3,419,701) ............................................................. 4,283,690
Nationwide(R) Money Market Fund (NWMyMkt)
7,977,434 shares (cost $7,977,434) ........................................................... 7,977,434
Nationwide(R) Intermediate U.S. Government Bond Fund (NWUSGvt)
20,393 shares (cost $209,049) ................................................................ 211,674
Neuberger & Berman Genesis Trust (NBGenesTr)
20,364 shares (cost $466,026) ................................................................ 448,416
Neuberger & Berman Guardian Trust (NBGuardTr)
296,241 shares (cost $7,645,121) ............................................................. 8,620,612
Neuberger & Berman Limited Maturity Bond Fund (NBLtdMat)
82,185 shares (cost $820,529) ................................................................ 819,387
Neuberger & Berman Partners Fund (NBPartFd)
328,027 shares (cost $8,812,528) ............................................................. 9,240,530
Oppenheimer Global Fund - Class A (OppGlob)
150,316 shares (cost $6,327,915) ............................................................. 6,953,599
Phoenix Balanced Fund Series - Class A (PhxBalFd)
46,506 shares (cost $765,577) ................................................................ 789,675
Strong Total Return Fund, Inc. (StTotRet)
58,620 shares (cost $1,668,132) .............................................................. 1,803,752
Templeton Foreign Fund - Class I (TemForFd)
456,591 shares (cost $4,749,382) ............................................................. 4,661,798
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
122,755 shares (cost $4,307,911) ............................................................. 5,143,445
Warburg Pincus Global Fixed - Income Fund - Common Shares (WPGlFxInc)
5,160 shares (cost $53,390) .................................................................. 53,146
-----------
Total investments ......................................................................... 202,188,695
Accounts receivable ................................................................................ 38,371
-----------
Total assets .............................................................................. 202,227,066
ACCOUNTS PAYABLE ...................................................................................... 645
-----------
CONTRACT OWNERS' EQUITY (NOTE 4) ...................................................................... $ 202,226,421
===========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACBENSTGVT
------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 1,251,682 1,181,299 82,236 91,925
Mortality, expense and administration
charges (note 2) ............................ (1,203,639) (826,587) (20,254) (21,758)
------------- ------------- ------------- -------------
Net investment activity ..................... 48,043 354,712 61,982 70,167
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 27,457,889 26,655,100 172,680 693,417
Cost of mutual fund shares sold ............... (22,967,087) (24,092,908) (172,758) (687,086)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 4,490,802 2,562,192 (78) 6,331
Change in unrealized gain (loss) on investments 17,741,833 12,623,122 3,545 (14,721)
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 22,232,635 15,185,314 3,467 (8,390)
------------- ------------- ------------- -------------
Reinvested capital gains ...................... 1,107,191 374,659 - -
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 23,387,869 15,914,685 65,449 61,777
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 27,976,833 18,534,519 636,726 95,566
Transfers between funds ....................... - - (62,716) (59,561)
Redemptions ................................... (12,419,535) (7,012,541) (551,920) (337,412)
Annuity benefits .............................. (13,817) (11,540) (474) (467)
Annual contract maintenance charge (note 2) ... (79,548) (62,190) (1,106) (1,282)
Contingent deferred sales charges (note 2) .... (193,828) (149,519) (1,402) (14,178)
Adjustments to maintain reserves .............. 13,721 8,971 (54) (65)
------------- ------------- ------------- -------------
Net equity transactions ................... 15,283,826 11,307,700 19,054 (317,399)
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 38,671,695 27,222,385 84,503 (255,622)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 163,554,726 114,788,417 3,059,798 3,326,874
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 202,226,421 142,010,802 3,144,301 3,071,252
============= ============= ============= =============
<CAPTION>
ACINCGRO ACTCGRO
------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 18,339 3,655 - -
Mortality, expense and administration
charges (note 2) ............................ (23,799) (2,870) (73,692) (64,242)
------------- ------------- ------------- -------------
Net investment activity ..................... (5,460) 785 (73,692) (64,242)
------------- ------------- ------------- -------------
Proceeds from mutual fund shares sold ......... 1,656,410 146,680 977,297 1,805,710
Cost of mutual fund shares sold ............... (1,589,020) (137,531) (729,700) (1,740,608)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ......... 67,390 9,149 247,597 65,102
Change in unrealized gain (loss) on investments 413,673 78,624 2,147,408 1,514,468
------------- ------------- ------------- -------------
Net gain (loss) on investments .............. 481,063 87,773 2,395,005 1,579,570
------------- ------------- ------------- -------------
Reinvested capital gains ...................... 32,508 - - -
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 508,111 88,558 2,321,313 1,515,328
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,735,562 105,054 286,089 275,836
Transfers between funds ....................... 907,647 343,694 (223,794) (275,940)
Redemptions ................................... (61,889) (406) (621,158) (991,041)
Annuity benefits .............................. - - (5,940) (5,584)
Annual contract maintenance charge (note 2) ... (486) (42) (10,712) (12,733)
Contingent deferred sales charges (note 2) .... (1,890) - (2,754) (13,749)
Adjustments to maintain reserves .............. (947) (63) 4,594 10,290
------------- ------------- ------------- -------------
Net equity transactions ................... 2,577,997 448,237 (573,675) (1,012,921)
------------- ------------- ------------- -------------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,086,108 536,795 1,747,638 502,407
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,896,251 191,329 10,517,144 9,690,046
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 4,982,359 728,124 12,264,782 10,192,453
============= ============= ============= =============
</TABLE>
6
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ACTCINTLGR ACTCULTRA
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - - -
Mortality, expense and administration
charges (note 2) ............................ (4,845) (3,270) (84,391) (52,857)
----------- ----------- ----------- -----------
Net investment activity ..................... (4,845) (3,270) (84,391) (52,857)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 269,614 138,636 542,160 1,034,165
Cost of mutual fund shares sold ............... (231,090) (128,229) (425,865) (688,761)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 38,524 10,407 116,295 345,404
Change in unrealized gain (loss) on investments 116,921 83,319 2,669,101 981,999
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 155,445 93,726 2,785,396 1,327,403
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 150,600 90,456 2,701,005 1,274,546
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 124,166 88,788 1,985,220 1,678,957
Transfers between funds ....................... 212,214 (102,149) (252,660) (579,771)
Redemptions ................................... (13,671) (596) (434,504) (313,857)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (176) (115) (6,508) (3,446)
Contingent deferred sales charges (note 2) .... (300) (15) (12,691) (9,285)
Adjustments to maintain reserves .............. 13 (2) 67 51
----------- ----------- ----------- -----------
Net equity transactions ................... 322,246 (14,089) 1,278,924 772,649
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 472,846 76,367 3,979,929 2,047,195
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 498,568 499,996 11,089,110 7,329,827
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 971,414 576,363 15,069,039 9,377,022
=========== =========== =========== ===========
<CAPTION>
DEHYBD DRYABDS
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 51,362 56,298 45,158 45,006
Mortality, expense and administration
charges (note 2) ............................ (8,670) (7,835) (11,961) (11,416)
----------- ----------- ----------- -----------
Net investment activity ..................... 42,692 48,463 33,197 33,590
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 198,250 113,265 401,390 520,491
Cost of mutual fund shares sold ............... (171,384) (112,153) (386,969) (533,026)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 26,866 1,112 14,421 (12,535)
Change in unrealized gain (loss) on investments (7,512) 21,697 7,920 9,729
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 19,354 22,809 22,341 (2,806)
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 62,046 71,272 55,538 30,784
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 135,984 186,714 285,372 337,499
Transfers between funds ....................... (76,008) 157,695 (120,752) (343,957)
Redemptions ................................... (192,646) (90,798) (131,726) (74,949)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (232) (219) (578) (480)
Contingent deferred sales charges (note 2) .... (1,466) (2,252) (1,116) (1,364)
Adjustments to maintain reserves .............. (16) 80 (5) 2
----------- ----------- ----------- -----------
Net equity transactions ................... (134,384) 251,220 31,195 (83,249)
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (72,338) 322,492 86,733 (52,465)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,340,246 958,214 1,848,441 1,854,653
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 1,267,908 1,280,706 1,935,174 1,802,188
=========== =========== =========== ===========
</TABLE>
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRYAPP DRYBAL
------------------------------ ------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 1,182 -
Mortality, expense and administration
charges (note 2)..................... (342) - (396) -
-------------- -------------- -------------- --------------
Net investment activity.............. (342) - 786 -
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 509 - 29,862 -
Cost of mutual fund shares sold........ (447) - (28,932) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 62 - 930 -
Change in unrealized gain (loss) on investments 7,682 - (1,095) -
-------------- -------------- -------------- --------------
Net gain (loss) on investments....... 7,744 - (165) -
-------------- -------------- -------------- --------------
Reinvested capital gains............... - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 7,402 - 621 -
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 43,942 - 81,964 -
Transfers between funds................ 62,971 - 59,683 -
Redemptions............................ - - (29,513) -
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) (2) - (9) -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 26 - (109) -
-------------- -------------- -------------- --------------
Net equity transactions............ 106,937 - 112,016 -
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 114,339 - 112,637 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 114,339 - 112,637 -
============== ============== ============== ==============
<CAPTION>
DRY500IX DRY3DCEN
--------------------------- ------------------------------
1998 1997 1998 1997
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - - -
Mortality, expense and administration
charges (note 2)..................... (58,750) (25,708) (5,354) (3,168)
------------- -------------- -------------- --------------
Net investment activity.............. (58,750) (25,708) (5,354) (3,168)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold.. 1,727,626 1,554,236 142,102 332,261
Cost of mutual fund shares sold........ (1,251,428) (1,330,477) (112,335) (306,366)
------------- -------------- -------------- --------------
Realized gain (loss) on investments.. 476,198 223,759 29,767 25,895
Change in unrealized gain (loss) on investments 936,584 528,461 106,052 63,307
------------- -------------- -------------- --------------
Net gain (loss) on investments....... 1,412,782 752,220 135,819 89,202
------------- -------------- -------------- --------------
Reinvested capital gains............... - - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. 1,354,032 726,512 130,465 86,034
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,328,467 929,158 115,584 152,763
Transfers between funds................ (428,953) 285,192 16,146 (3,457)
Redemptions............................ (686,704) (108,026) (46,422) (21,806)
Annuity benefits....................... - - - -
Annual contract maintenance charge (note 2) (2,534) (869) (641) (215)
Contingent deferred sales charges (note 2) (20,092) (1,955) (1,647) (385)
Adjustments to maintain reserves....... (15) (5) 11 (5)
------------- -------------- -------------- --------------
Net equity transactions............ 1,190,169 1,103,495 83,031 126,895
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 2,544,201 1,830,007 213,496 212,929
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 7,631,150 3,281,066 721,473 333,645
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 10,175,351 5,111,073 934,969 546,574
============= ============== ============== ==============
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
EVINCGRO FEDHIYLD
------------------------------ ------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 25,237 22,364 507 -
Mortality, expense and administration
charges (note 2)............................... (7,440) (5,924) (81) -
-------------- -------------- -------------- --------------
Net investment activity........................ 17,797 16,440 426 -
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 71,981 101,520 2,288 -
Cost of mutual fund shares sold.................. (61,729) (98,118) (2,294) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 10,252 3,402 (6) -
Change in unrealized gain (loss) on investments . (13,202) 67,374 (480) -
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. (2,950) 70,776 (486) -
-------------- -------------- -------------- --------------
Reinvested capital gains......................... - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 14,847 87,216 (60) -
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 310,997 19,341 14,649 -
Transfers between funds.......................... 3,492 (21,936) 16,381 -
Redemptions...................................... (292,365) (40,973) - -
Annuity benefits................................. - - - -
Annual contract maintenance charge (note 2) ..... (248) (187) (1) -
Contingent deferred sales charges (note 2) ...... (108) (942) - -
Adjustments to maintain reserves................. 4 1 7 -
-------------- -------------- -------------- --------------
Net equity transactions...................... 21,772 (44,696) 31,036 -
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 36,619 42,520 30,976 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,109,581 917,152 - -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 1,146,200 959,672 30,976 -
============== ============== ============== ==============
<CAPTION>
FEDBDFD FABAL
------------------------------ ------------------------------
1998 1997 1998 1997
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 26,386 9,498 6,558 1,021
Mortality, expense and administration
charges (note 2)............................... (4,741) (1,627) (2,092) (426)
------------- -------------- -------------- --------------
Net investment activity........................ 21,645 7,871 4,466 595
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 31,038 17,330 18,987 15,243
Cost of mutual fund shares sold.................. (30,200) (17,533) (15,881) (14,365)
------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 838 (203) 3,106 878
Change in unrealized gain (loss) on investments . (191) 1,889 20,480 6,758
------------- -------------- -------------- --------------
Net gain (loss) on investments................. 647 1,686 23,586 7,636
------------- -------------- -------------- --------------
Reinvested capital gains......................... - - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 22,292 9,557 28,052 8,231
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 139,156 599 173,428 51,289
Transfers between funds.......................... 387,319 185,840 403,449 13,388
Redemptions...................................... (4,901) (3,667) (9,547) (5,952)
Annuity benefits................................. - - - -
Annual contract maintenance charge (note 2) ..... (50) (5) (122) (53)
Contingent deferred sales charges (note 2) ...... (1) - (340) (348)
Adjustments to maintain reserves................. 16 (13) 44 (25)
------------- -------------- -------------- --------------
Net equity transactions...................... 521,539 182,754 566,912 58,299
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 543,831 192,311 594,964 66,530
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 371,500 99,894 175,488 29,841
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 915,331 292,205 770,452 96,371
============= ============== ============== ==============
</TABLE>
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FAEQINC FAGROPP
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 5,099 4,735 - -
Mortality, expense and administration
charges (note 2) ............................ (9,063) (5,330) (36,301) (18,867)
----------- ----------- ----------- -----------
Net investment activity ..................... (3,964) (595) (36,301) (18,867)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 164,264 75,743 650,860 529,346
Cost of mutual fund shares sold ............... (123,934) (64,906) (498,858) (460,076)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 40,330 10,837 152,002 69,270
Change in unrealized gain (loss) on investments 104,678 114,103 411,908 364,207
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 145,008 124,940 563,910 433,477
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 8,458 - 23,737 -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 149,502 124,345 551,346 414,610
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 219,517 86,982 1,044,364 868,395
Transfers between funds ....................... 97,772 79,638 (51,666) 621,080
Redemptions ................................... (160,096) (13,671) (154,883) (95,097)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (465) (164) (1,828) (576)
Contingent deferred sales charges (note 2) .... (1,215) (589) (4,198) (3,001)
Adjustments to maintain reserves .............. 1 (7) 6 26
----------- ----------- ----------- -----------
Net equity transactions ................... 155,514 152,189 831,795 1,390,827
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 305,016 276,534 1,383,141 1,805,437
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,210,420 683,495 4,798,392 2,126,543
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 1,515,436 960,029 6,181,533 3,931,980
=========== =========== =========== ===========
<CAPTION>
FAHIYLD FIDASMGR
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 92,312 42,970 55,659 50,181
Mortality, expense and administration
charges (note 2) ............................ (19,561) (7,596) (24,290) (20,098)
----------- ----------- ----------- -----------
Net investment activity ..................... 72,751 35,374 31,369 30,083
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 610,358 61,592 648,650 614,319
Cost of mutual fund shares sold ............... (573,778) (60,780) (476,263) (519,825)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 36,580 812 172,387 94,494
Change in unrealized gain (loss) on investments 14,936 24,133 63,977 188,211
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 51,516 24,945 236,364 282,705
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 124,267 60,319 267,733 312,788
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 544,801 372,041 308,672 318,825
Transfers between funds ....................... (13,554) 373,166 (61,501) (238,502)
Redemptions ................................... (87,514) (27,763) (459,994) (212,727)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (495) (121) (1,254) (1,057)
Contingent deferred sales charges (note 2) .... (2,306) (474) (12,242) (5,873)
Adjustments to maintain reserves .............. 776 9 (1) 17
----------- ----------- ----------- -----------
Net equity transactions ................... 441,708 716,858 (226,320) (139,317)
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 565,975 777,177 41,413 173,471
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,492,698 797,492 3,668,034 3,044,222
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 3,058,673 1,574,669 3,709,447 3,217,693
=========== =========== =========== ===========
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDCAPINC FIDEQINC
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 56,168 49,215 150,369 169,340
Mortality, expense and administration
charges (note 2) ............................ (8,374) (7,149) (119,439) (96,415)
----------- ----------- ----------- -----------
Net investment activity ..................... 47,794 42,066 30,930 72,925
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 113,858 79,058 2,180,886 1,526,472
Cost of mutual fund shares sold ............... (93,059) (67,951) (1,313,998) (1,018,509)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 20,799 11,107 866,888 507,963
Change in unrealized gain (loss) on investments 24,210 9,667 703,291 1,554,107
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 45,009 20,774 1,570,179 2,062,070
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - 202,098 161,586
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 92,803 62,840 1,803,207 2,296,581
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,897 - 777,644 444,653
Transfers between funds ....................... (8,199) (19) (577,186) 99,046
Redemptions ................................... (95,540) (69,355) (1,027,550) (1,144,153)
Annuity benefits .............................. (992) (531) (2,451) (1,584)
Annual contract maintenance charge (note 2) ... (1,557) (1,792) (11,598) (12,538)
Contingent deferred sales charges (note 2) .... (285) (280) (6,074) (12,777)
Adjustments to maintain reserves .............. (144) (883) (362) 48
----------- ----------- ----------- -----------
Net equity transactions ................... (104,820) (72,860) (847,577) (627,305)
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (12,017) (10,020) 955,630 1,669,276
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,289,328 1,238,341 17,444,026 14,264,106
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 1,277,311 1,228,321 18,399,656 15,933,382
=========== =========== =========== ===========
<CAPTION>
FIDMGLN FIDPURTN
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 32,373 108,309 213,904 158,246
Mortality, expense and administration
charges (note 2) ............................ (108,688) (78,838) (85,213) (57,211)
----------- ----------- ----------- -----------
Net investment activity ..................... (76,315) 29,471 128,691 101,035
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 703,725 1,651,101 833,965 609,642
Cost of mutual fund shares sold ............... (627,077) (1,363,490) (606,507) (531,404)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 76,648 287,611 227,458 78,238
Change in unrealized gain (loss) on investments 2,176,817 1,232,780 901,811 947,544
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 2,253,465 1,520,391 1,129,269 1,025,782
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 424,082 210,841 - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,601,232 1,760,703 1,257,960 1,126,817
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,384,328 1,447,714 1,878,950 1,563,781
Transfers between funds ....................... 22,098 (1,382,374) (238,414) (91,155)
Redemptions ................................... (653,288) (482,354) (728,427) (190,582)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (8,176) (6,133) (3,813) (2,683)
Contingent deferred sales charges (note 2) .... (16,398) (17,472) (16,203) (5,951)
Adjustments to maintain reserves .............. 10,246 52 29 34
----------- ----------- ----------- -----------
Net equity transactions ................... 1,738,810 (440,567) 892,122 1,273,444
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 4,340,042 1,320,136 2,150,082 2,400,261
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 14,580,812 11,693,770 11,858,759 7,789,643
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 18,920,854 13,013,906 14,008,841 10,189,904
=========== =========== =========== ===========
</TABLE>
11
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVLPHL FRANMUTSER
------------------------------ ------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 19,285 18,061 - -
Mortality, expense and administration
charges (note 2)............................... (1,817) (1,529) (222) -
-------------- -------------- -------------- --------------
Net investment activity........................ 17,468 16,532 (222) -
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 11,092 27,147 93 -
Cost of mutual fund shares sold.................. (10,213) (25,560) (88) -
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 879 1,587 5 -
Change in unrealized gain (loss) on investments . (19,204) (2,226) (204) -
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. (18,325) (639) (199) -
-------------- -------------- -------------- --------------
Reinvested capital gains......................... 12,254 2,232 - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 11,397 18,125 (421) -
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ - - 64,461 -
Transfers between funds.......................... - (4,194) 22,986 -
Redemptions...................................... (8,989) (21,184) - -
Annuity benefits................................. - - - -
Annual contract maintenance charge (note 2) ..... (79) (124) - -
Contingent deferred sales charges (note 2) ...... - (95) - -
Adjustments to maintain reserves................. (4) (185) 361,493 -
-------------- -------------- -------------- --------------
Net equity transactions...................... (9,072) (25,782) 448,940 -
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 2,325 (7,657) 448,519 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 273,172 269,844 - -
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 275,497 262,187 448,519 -
============== ============== ============== ==============
<CAPTION>
JANFUND JAN20FD
------------------------------ ------------------------------
1998 1997 1998 1997
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 13,196 - 166 -
Mortality, expense and administration
charges (note 2)............................... (26,648) (15,077) (48,625) (27,452)
------------- -------------- -------------- --------------
Net investment activity........................ (13,452) (15,077) (48,459) (27,452)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 325,074 336,177 581,973 1,581,620
Cost of mutual fund shares sold.................. (291,741) (314,835) (526,333) (1,445,719)
------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 33,333 21,342 55,640 135,901
Change in unrealized gain (loss) on investments . 734,487 266,838 2,245,913 631,562
------------- -------------- -------------- --------------
Net gain (loss) on investments................. 767,820 288,180 2,301,553 767,463
------------- -------------- -------------- --------------
Reinvested capital gains......................... - - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 754,368 273,103 2,253,094 740,011
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 729,270 644,915 1,140,954 984,290
Transfers between funds.......................... (86,541) 438,419 1,059,783 (3,586)
Redemptions...................................... (97,992) (64,103) (272,277) (243,098)
Annuity benefits................................. - - - -
Annual contract maintenance charge (note 2) ..... (1,433) (362) (2,542) (1,129)
Contingent deferred sales charges (note 2) ...... (2,083) (1,142) (8,361) (4,758)
Adjustments to maintain reserves................. 24 (4) 95 33
------------- -------------- -------------- --------------
Net equity transactions...................... 541,245 1,017,723 1,917,652 731,752
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,295,613 1,290,826 4,170,746 1,471,763
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 3,447,634 1,609,117 5,909,299 3,399,603
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 4,743,247 2,899,943 10,080,045 4,871,366
============= ============== ============== ==============
</TABLE>
12
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
JANWRLDWDE MFSWDGVT
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 1,347 - - -
Mortality, expense and administration
charges (note 2) ............................ (32,993) (9,942) (4,825) (6,285)
----------- ----------- ----------- -----------
Net investment activity ..................... (31,646) (9,942) (4,825) (6,285)
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 831,635 309,800 91,531 339,743
Cost of mutual fund shares sold ............... (690,278) (297,970) (90,099) (366,667)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 141,357 11,830 1,432 (26,924)
Change in unrealized gain (loss) on investments 941,630 284,944 19,437 (319)
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 1,082,987 296,774 20,869 (27,243)
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,051,341 286,832 16,044 (33,528)
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,208,916 410,162 12,834 16,570
Transfers between funds ....................... 68,117 1,229,066 (15,506) (129,613)
Redemptions ................................... (87,360) (12,516) (72,327) (74,976)
Annuity benefits .............................. - - (1,312) (1,301)
Annual contract maintenance charge (note 2) ... (1,374) (148) (701) (873)
Contingent deferred sales charges (note 2) .... (3,157) (5) (761) (1,161)
Adjustments to maintain reserves .............. 35 5 135 (1)
----------- ----------- ----------- -----------
Net equity transactions ................... 1,185,177 1,626,564 (77,638) (191,355)
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,236,518 1,913,396 (61,594) (224,883)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 3,974,671 465,306 761,789 1,044,394
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 6,211,189 2,378,702 700,195 819,511
=========== =========== =========== ===========
<CAPTION>
NWBDFD NWFUND
--------------------------- ---------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 48,536 50,589 30,871 20,071
Mortality, expense and administration
charges (note 2) ............................ (10,514) (10,063) (37,119) (18,174)
----------- ----------- ----------- -----------
Net investment activity ..................... 38,022 40,526 (6,248) 1,897
----------- ----------- ----------- -----------
Proceeds from mutual fund shares sold ......... 352,636 250,075 846,656 254,019
Cost of mutual fund shares sold ............... (330,039) (273,436) (444,496) (158,378)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 22,597 (23,361) 402,160 95,641
Change in unrealized gain (loss) on investments (4,255) 7,935 410,454 490,047
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 18,342 (15,426) 812,614 585,688
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - 240,525 -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 56,364 25,100 1,046,891 587,585
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 290,794 130,601 1,333,034 110,574
Transfers between funds ....................... (161,641) (224,057) 320,210 182,821
Redemptions ................................... (401,192) (21,775) (503,654) (41,895)
Annuity benefits .............................. (106) (100) (810) (586)
Annual contract maintenance charge (note 2) ... (583) (521) (1,592) (948)
Contingent deferred sales charges (note 2) .... (605) (625) (920) (183)
Adjustments to maintain reserves .............. (29) (13) (1,159) (844)
----------- ----------- ----------- -----------
Net equity transactions ................... (273,362) (116,490) 1,145,109 248,939
----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (216,998) (91,390) 2,192,000 836,524
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,713,185 1,616,821 4,500,730 2,488,828
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 1,496,187 1,525,431 6,692,730 3,325,352
=========== =========== =========== ===========
</TABLE>
13
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NWGROFD NWMYMKT
------------------------------ ------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................... $ 5,977 18,800 208,548 206,059
Mortality, expense and administration
charges (note 2).................................. (30,077) (25,136) (54,216) (54,634)
-------------- -------------- -------------- --------------
Net investment activity........................... (24,100) (6,336) 154,332 151,425
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............... 1,296,735 508,855 6,665,897 7,885,564
Cost of mutual fund shares sold..................... (795,926) (306,509) (6,665,897) (7,885,564)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............... 500,809 202,346 - -
Change in unrealized gain (loss) on investments .... 145,923 445,355 - -
-------------- -------------- -------------- --------------
Net gain (loss) on investments.................... 646,732 647,701 - -
-------------- -------------- -------------- --------------
Reinvested capital gains............................ 160,091 - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations.............. 782,723 641,365 154,332 151,425
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................... 198,265 58,262 1,857,116 2,574,646
Transfers between funds............................. 117,725 2,432 (396,562) (844,632)
Redemptions......................................... (1,216,279) (225,679) (1,340,322) (1,070,376)
Annuity benefits.................................... (785) (612) (947) (775)
Annual contract maintenance charge (note 2) ........ (1,807) (1,492) (4,571) (4,846)
Contingent deferred sales charges (note 2) ......... (2,926) (2,616) (31,573) (18,493)
Adjustments to maintain reserves.................... (99) (46) 406 216
-------------- -------------- -------------- --------------
Net equity transactions......................... (905,906) (169,751) 83,547 635,740
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................. (123,183) 471,614 237,879 787,165
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .......... 4,406,739 3,683,393 7,765,550 7,675,383
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................. $ 4,283,556 4,155,007 8,003,429 8,462,548
============== ============== ============== ==============
<CAPTION>
NWUSGVT NBGENESTR
------------------------------ ------------------------------
1998 1997 1998 1997
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................... 3,670 1,086 - -
Mortality, expense and administration
charges (note 2).................................. (886) (238) (1,463) -
------------- -------------- -------------- --------------
Net investment activity........................... 2,784 848 (1,463) -
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............... 3,941 46,252 7,905 -
Cost of mutual fund shares sold..................... (3,825) (46,295) (7,457) -
------------- -------------- -------------- --------------
Realized gain (loss) on investments............... 116 (43) 448 -
Change in unrealized gain (loss) on investments .... 725 260 (17,611) -
------------- -------------- -------------- --------------
Net gain (loss) on investments.................... 841 217 (17,163) -
------------- -------------- -------------- --------------
Reinvested capital gains............................ 1,363 - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations.............. 4,988 1,065 (18,626) -
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................... 102,002 21,136 192,859 -
Transfers between funds............................. 33,119 (38,110) 276,754
Redemptions......................................... (3,498) (4,312) (2,460) -
Annuity benefits.................................... - - - -
Annual contract maintenance charge (note 2) ........ (85) (20) (7) -
Contingent deferred sales charges (note 2) ......... (23) (206) - -
Adjustments to maintain reserves.................... 6 (6) (361,477) -
------------- -------------- -------------- --------------
Net equity transactions......................... 131,521 (21,518) 105,669 -
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY................. 136,509 (20,453) 87,043 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD .......... 75,160 65,790 - -
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD................. 211,669 45,337 87,043 -
============= ============== ============== ==============
</TABLE>
14
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBGUARD TR NBLTDMAT
------------------------------ ------------------------------
1998 1997 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 20,579 16,044 24,146 26,152
Mortality, expense and administration
charges (note 2)............................... (54,913) (39,603) (5,204) (5,295)
-------------- -------------- -------------- --------------
Net investment activity........................ (34,334) (23,559) 18,942 20,857
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 774,277 432,748 106,606 368,717
Cost of mutual fund shares sold.................. (643,648) (320,754) (105,877) (369,101)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 130,629 111,994 729 (384)
Change in unrealized gain (loss) on investments . 838,830 627,893 (3,833) (605)
-------------- -------------- -------------- --------------
Net gain (loss) on investments................. 969,459 739,887 (3,104) (989)
-------------- -------------- -------------- --------------
Reinvested capital gains......................... - - - -
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 935,125 716,328 15,838 19,868
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 948,462 1,171,873 110,110 240,160
Transfers between funds.......................... (586,492) 76,732 (72,694) (197,860)
Redemptions...................................... (303,030) (199,249) (18,587) (82,046)
Annuity benefits................................. - - - -
Annual contract maintenance charge (note 2) ..... (2,618) (1,600) (265) (175)
Contingent deferred sales charges (note 2) ...... (5,408) (5,979) (159) (2,247)
Adjustments to maintain reserves................. 21 38 72 3
-------------- -------------- -------------- --------------
Net equity transactions...................... 50,935 1,041,815 18,477 (42,165)
-------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 986,060 1,758,143 34,315 (22,297)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 7,634,575 5,226,230 785,148 820,873
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 8,620,635 6,984,373 819,463 798,576
============== ============== ============== ==============
<CAPTION>
NBPARTFD OPPGLOB
------------------------------ ------------------------------
1998 1997 1998 1997
------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ - - - -
Mortality, expense and administration
charges (note 2)............................... (55,708) (31,260) (41,245) (29,996)
------------- -------------- -------------- --------------
Net investment activity........................ (55,708) (31,260) (41,245) (29,996)
------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold............ 651,741 431,852 1,289,476 868,740
Cost of mutual fund shares sold.................. (523,950) (313,974) (1,025,513) (729,148)
------------- -------------- -------------- --------------
Realized gain (loss) on investments............ 127,791 117,878 263,963 139,592
Change in unrealized gain (loss) on investments . 387,808 609,613 484,046 579,090
------------- -------------- -------------- --------------
Net gain (loss) on investments................. 515,599 727,491 748,009 718,682
------------- -------------- -------------- --------------
Reinvested capital gains......................... - - - -
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 459,891 696,231 706,764 688,686
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 1,989,855 797,599 813,616 632,588
Transfers between funds.......................... 137 324,563 36,819 (97,003)
Redemptions...................................... (621,295) (91,442) (289,537) (272,745)
Annuity benefits................................. - - - -
Annual contract maintenance charge (note 2) ..... (2,549) (1,243) (2,540) (2,015)
Contingent deferred sales charges (note 2) ...... (12,289) (2,099) (7,283) (9,156)
Adjustments to maintain reserves................. (50) 65 26 65
------------- -------------- -------------- --------------
Net equity transactions...................... 1,353,809 1,027,443 551,101 251,734
------------- -------------- -------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,813,700 1,723,674 1,257,865 940,420
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 7,426,836 4,146,403 5,695,782 4,116,590
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. 9,240,536 5,870,077 6,953,647 5,057,010
============= ============== ============== ==============
</TABLE>
15
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PHXBALFD STTOTRET
------------------------- -------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 8,127 6,504 2,892 5,170
Mortality, expense and administration
charges (note 2) ............................ (4,749) (3,267) (10,884) (8,743)
---------- ---------- ---------- ----------
Net investment activity ..................... 3,378 3,237 (7,992) (3,573)
---------- ---------- ---------- ----------
Proceeds from mutual fund shares sold ......... 28,884 172,594 231,676 216,379
Cost of mutual fund shares sold ............... (29,576) (177,663) (247,061) (197,877)
---------- ---------- ---------- ----------
Realized gain (loss) on investments ......... (692) (5,069) (15,385) 18,502
Change in unrealized gain (loss) on investments 63,343 55,799 269,048 134,426
---------- ---------- ---------- ----------
Net gain (loss) on investments .............. 62,651 50,730 253,663 152,928
---------- ---------- ---------- ----------
Reinvested capital gains ...................... 2,075 - - -
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 68,104 53,967 245,671 149,355
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 84,398 115,195 173,006 266,097
Transfers between funds ....................... 113 (142,655) (143,012) 149,120
Redemptions ................................... (25,662) (4,557) (83,276) (155,445)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (308) (151) (435) (278)
Contingent deferred sales charges (note 2) .... (732) (132) (1,224) (3,990)
Adjustments to maintain reserves .............. 2 2 25 157
---------- ---------- ---------- ----------
Net equity transactions ................... 57,811 (32,298) (54,916) 255,661
---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 125,915 21,669 190,755 405,016
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 663,764 532,110 1,613,016 1,069,749
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 789,679 553,779 1,803,771 1,474,765
========== ========== ========== ==========
<CAPTION>
TEMFORFD WPEMGRO
------------------------- -------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - - -
Mortality, expense and administration
charges (note 2) ............................ (32,191) (26,580) (31,260) (20,708)
---------- ---------- ---------- ----------
Net investment activity ..................... (32,191) (26,580) (31,260) (20,708)
---------- ---------- ---------- ----------
Proceeds from mutual fund shares sold ......... 699,805 324,966 504,010 679,625
Cost of mutual fund shares sold ............... (634,450) (291,346) (369,635) (690,918)
---------- ---------- ---------- ----------
Realized gain (loss) on investments ......... 65,355 33,620 134,375 (11,293)
Change in unrealized gain (loss) on investments 65,375 417,356 371,651 297,498
---------- ---------- ---------- ----------
Net gain (loss) on investments .............. 130,730 450,976 506,026 286,205
---------- ---------- ---------- ----------
Reinvested capital gains ...................... - - - -
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 98,539 424,396 474,766 265,497
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 473,208 758,702 643,534 577,194
Transfers between funds ....................... (467,869) 256,046 (79,215) (37,407)
Redemptions ................................... (263,203) (134,025) (363,937) (67,933)
Annuity benefits .............................. - - - -
Annual contract maintenance charge (note 2) ... (1,802) (967) (1,663) (588)
Contingent deferred sales charges (note 2) .... (3,358) (3,754) (10,213) (1,988)
Adjustments to maintain reserves .............. (4) (36) (14) (20)
---------- ---------- ---------- ----------
Net equity transactions ................... (263,028) 875,966 188,492 469,258
---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (164,489) 1,300,362 663,258 734,755
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 4,826,284 3,443,497 4,480,173 2,964,337
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 4,661,795 4,743,859 5,143,431 3,699,092
========== ========== ========== ==========
</TABLE>
16
<PAGE> 16
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
WPGIFXINC
------------------------------
1998 1997
-------------- --------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 1,493 -
Mortality, expense and administration
charges (note 2)............................... (343) -
-------------- --------------
Net investment activity........................ 1,150 -
-------------- --------------
Proceeds from mutual fund shares sold............ 7,486 -
Cost of mutual fund shares sold.................. (7,479) -
-------------- --------------
Realized gain (loss) on investments............ 7 -
Change in unrealized gain (loss) on investments . (244) -
-------------- --------------
Net gain (loss) on investments................. (237) -
-------------- --------------
Reinvested capital gains......................... - -
-------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations. ......... 913 -
-------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 52,660 -
Transfers between funds.......................... -
Redemptions...................................... (400) -
Annuity benefits................................. - -
Annual contract maintenance charge (note 2) ..... (3) -
Contingent deferred sales charges (note 2) ...... (25) -
Adjustments to maintain reserves................. 30 -
-------------- --------------
Net equity transactions...................... 52,262 -
-------------- --------------
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 53,175 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... - -
-------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD.............. $ 53,175 -
============== ==============
</TABLE>
See accompanying notes to financial statements.
17
<PAGE> 17
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 and 1997
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide Variable Account (the Account) was established pursuant
to a 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.
The Company offers Individual Deferred Variable Annuity Contracts
through the Account. As of December 25, 1982, only tax qualified
contracts are issued. The primary distribution for the contract is
through the Company for Individual Retirement Account rollovers;
however, other distributors may be utilized.
(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 contract charges.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in the following:
American Century: Benham Short-Term Government Fund (ACBenSTGvt)
(formerly Twentieth Century Investors, Inc. - U.S. Governments
Short-Term (TCUSGvt))
American Century: Income & Growth Fund (ACIncGro)
American Century: Twentieth Century Growth Fund (ACTCGro)
(formerly Twentieth Century Investors, Inc. - Growth Investors
(TCGroInv))
American Century: Twentieth Century International Growth Fund
(ACTCIntlGr) (formerly Twentieth Century World Investors, Inc.
- International Equity (TCIntlEq))
American Century: Twentieth Century Ultra Fund (ACTCUltra)
(formerly Twentieth Century Investors, Inc. - Ultra Investors
(TCUltra))
Delaware Group Delchester High-Yield Bond Fund, Inc. - Delchester
Fund Institutional Class (DeHYBd)
Dreyfus A Bonds Plus, Inc. (DryABds)
Dreyfus Appreciation Fund, Inc. (DryApp)
Dreyfus Balanced Fund, Inc. (DryBal)
Dreyfus S&P 500 Index Fund (Dry500Ix)
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
Evergreen Income and Growth Fund - Class Y (EvIncGro)
(formerly The Evergreen Total Return Fund - Class Y (EvTotRet))
Federated High Yield Trust (FedHiYld)
Federated Investment Series Funds, Inc. - Federated Bond Fund
- Class F (FedBdFd)
Fidelity Advisor Balanced Fund - Class T (FABal)
(formerly Fidelity Advisor Income & Growth Fund - Class T
(FAIncGr)) Fidelity Advisor Equity Income Fund - Class T (FAEqInc)
Fidelity Advisor Growth Opportunities Fund - Class T (FAGrOpp)
Fidelity Advisor High Yield Fund - Class T (FAHiYld) Fidelity
Asset Manager(TM) (FidAsMgr)
18
<PAGE> 18
Fidelity Capital & Income Fund (FidCapInc)
(not available for additional purchase payments or exchanges
after May 1, 1991)
Fidelity Equity-Income Fund (FidEqInc)
Fidelity Magellan(R) Fund (FidMgln)
Fidelity Puritan(R) Fund (FidPurtn)
Portfolio of the Fidelity Variable Insurance Products Fund
(Fidelity VIP); Fidelity VIP - High Income Portfolio (FidVIPHI)
(not available for additional purchase payments or exchanges
after December 1, 1993)
Franklin Mutual Series Fund Inc. - Mutual Shares Fund - Class I
(FranMutSer)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd)
Janus Worldwide Fund (JanWrldwde)
MFS(R) World Governments Fund - Class A (MFSWdGvt)
Nationwide(R) Bond Fund - Class D (NWBdFd) (managed for a fee by
an affiliated investment advisor)
Nationwide(R) Fund - Class D (NWFund) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) Growth Fund - Class D (NWGroFd) (managed for a fee
by an affiliated investment advisor)
Nationwide(R) Money Market Fund (NWMyMkt) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) Intermediate U.S. Government Income Fund - Class D
(NWUSGvt) (managed for a fee by an affiliated investment
advisor)
Neuberger & Berman Genesis Trust (NBGenesTr)
Neuberger & Berman Guardian Trust (NBGuardTr)
(formerly Neuberger & Berman Guardian Fund (NBGuard)
Neuberger & Berman Limited Maturity Bond Fund (NBLtdMat)
Neuberger & Berman Partners Fund (NBPartFd)
Oppenheimer Global Fund - Class A (OppGlob)
Phoenix Balanced Fund Series - Class A (PhxBalFd)
Strong Total Return Fund, Inc. (StTotRet)
Templeton Foreign Fund - Class I (TemForFd)
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
Warburg Pincus Global Fixed-Income Fund - Common Shares
(WPGlFxInc)
At June 30, 1998, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2). The accompanying financial
statements include only contract owners' purchase payments pertaining
to the variable portions of their contracts and exclude any purchase
payments for fixed dollar benefits, the latter being included in the
accounts of the Company.
(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, 1998. 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.
19
<PAGE> 19
(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) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered, the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge. For contracts issued prior to January 1, 1993, the contingent
deferred sales charge will be 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. For contracts issued on or after
January 1, 1993, the Company will deduct a contingent deferred sales charge
not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The following contract charges are deducted by the Company: (a) an annual
contract maintenance charge of $30, with certain exceptions, which is
satisfied by surrendering units; and (b) for contracts issued prior to
January 1, 1993, 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; for contracts issued on or after January 1, 1993, a
mortality risk charge, an expense risk charge and an administration charge
assessed through the daily unit value calculation equal to an annual rate
of 0.80%, 0.45% and 0.05%, respectively.
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
20
<PAGE> 20
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1998, for
each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
------- ---------- -------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
American Century: Benham
Short-Term Government Fund:
Tax qualified ........................ 139,713 $22.451909 $ 3,136,824 2%
American Century: Income & Growth Fund:
Tax qualified ........................ 304,121 16.382817 4,982,359 17%
American Century: Twentieth Century
Growth Fund:
Tax qualified ........................ 150,723 80.370613 12,113,700 23%
American Century: Twentieth Century
International Growth Fund:
Tax qualified ........................ 49,537 19.609877 971,414 25%
American Century: Twentieth Century
Ultra Fund:
Tax qualified ........................ 728,938 20.672594 15,069,039 23%
Delaware Group Delchester High-Yield
Bond Fund, Inc. - Delchester Fund
Institutional Class:
Tax qualified ........................ 78,936 16.062480 1,267,908 5%
Dreyfus A Bonds Plus, Inc.:
Tax qualified ........................ 158,535 12.206604 1,935,174 3%
Dreyfus Appreciation Fund, Inc.:
Tax qualified ........................ 9,658 11.838771 114,339 18%(a)
Dreyfus Balanced Fund, Inc.:
Tax qualified ........................ 10,708 10.518999 112,637 5%(a)
Dreyfus S&P 500 Index Fund:
Tax qualified ........................ 380,514 26.741068 10,175,351 17%
The Dreyfus Third Century Fund, Inc.:
Tax qualified ........................ 39,616 23.600797 934,969 17%
Evergreen Income and Growth
Fund - Class Y:
Tax qualified ........................ 65,035 17.624361 1,146,200 1%
Federated High Yield Trust
Tax qualified ........................ 3,009 10.294539 30,976 3%
Federated Investment Series Funds, Inc. -
Federated Bond Fund - Class F:
Tax qualified ........................ 79,881 11.458684 915,331 3%
Fidelity Advisor Balanced Fund - Class T:
Tax qualified ........................ 53,032 14.528055 770,452 10%
Fidelity Advisor Equity Income
Fund - Class T:
Tax qualified ........................ 94,498 16.036703 1,515,436 12%
</TABLE>
(Continued)
21
<PAGE> 21
<TABLE>
<S> <C> <C> <C> <C>
Fidelity Advisor Growth Opportunities
Fund - Class T:
Tax qualified .......................... 366,674 16.858388 6,181,533 11%
Fidelity Advisor High Yield Fund - Class T:
Tax qualified .......................... 228,769 13.370137 3,058,673 5%
Fidelity Asset Manager(TM):
Tax qualified .......................... 230,015 16.126977 3,709,447 7%
Fidelity Capital & Income Fund:
Tax qualified .......................... 25,215 50.215804 1,266,191 7%
Fidelity Equity-Income Fund:
Tax qualified .......................... 234,470 78.402542 18,383,044 11%
Fidelity Magellan(R) Fund:
Tax qualified .......................... 724,743 26.106984 18,920,854 17%
Fidelity Puritan(R) Fund:
Tax qualified .......................... 643,237 21.778661 14,008,841 10%
Fidelity VIP - High Income Portfolio:
Tax qualified .......................... 10,454 26.353263 275,497 4%
Franklin Mutual Series Fund Inc. -
Mutual Shares Fund - Class I:
Tax qualified .......................... 8,233 10.572492 87,043 6%(a)
Janus Fund:
Tax qualified .......................... 268,374 17.674019 4,743,247 21%
Janus Twenty Fund:
Tax qualified .......................... 395,278 25.501153 10,080,045 35%
Janus Worldwide Fund:
Tax qualified .......................... 408,374 15.209560 6,211,189 24%
MFS(R) World Governments Fund - Class A:
Tax qualified .......................... 18,601 37.243538 692,767 2%
Nationwide(R) Bond Fund:
Tax qualified .......................... 35,129 42.321983 1,486,729 4%
Non-tax qualified ...................... 176 42.140550 7,417 4%
Nationwide(R) Fund:
Tax qualified .......................... 56,174 118.222382 6,641,024 21%
Non-tax qualified ...................... 284 123.140619 34,972 21%
Nationwide(R) Growth Fund:
Tax qualified .......................... 38,196 111.044140 4,241,442 18%
Non-tax qualified ...................... 224 117.248645 26,264 18%
Nationwide(R) Money Market Fund:
Tax qualified - Pre 12/25/82 ........... 34,373 26.061339 895,806 2%
Tax qualified .......................... 341,582 20.696800 7,069,654 2%
Non-tax qualified ...................... 843 26.226042 22,109 2%
Nationwide(R) U.S. Government
Income Fund:
Tax qualified .......................... 18,359 11.529418 211,669 3%
</TABLE>
22
<PAGE> 22
<TABLE>
<S> <C> <C> <C> <C>
Neuberger & Berman Genesis Trust
Tax qualified ...................... 45,136 9.937061 448,519 (1)%(a)
Neuberger & Berman Guardian Fund:
Tax qualified ...................... 452,525 19.050074 8,620,635 12%
Neuberger & Berman Limited Maturity
Bond Fund:
Tax qualified ...................... 68,829 11.905741 819,460 2%
Neuberger & Berman Partners Fund:
Tax qualified ...................... 365,382 25.290068 9,240,536 6%
Oppenheimer Global Fund - Class A:
Tax qualified ...................... 286,254 24.291877 6,953,647 12%
Phoenix Balanced Fund Series - Class A:
Tax qualified ...................... 50,548 15.622368 789,679 10%
Strong Total Return Fund, Inc.:
Tax qualified ...................... 75,844 23.782647 1,803,771 16%
Templeton Foreign Fund - Class I:
Tax qualified ...................... 336,126 13.869189 4,661,795 2%
Warburg Pincus Emerging Growth
Fund - Common Shares:
Tax qualified ...................... 330,022 15.585116 5,143,431 10%
Warburg Pincus Global Fixed-Income
Fund - Common Shares:
Tax qualified ...................... 5,259 10.111184 53,175 1%(a)
======= =========
Reserves for annuity contracts in payout phase:
Tax qualified....................... 244,207
------------
$202,226,421
============
</TABLE>
(a) This investment option was not being utilized for the entire period.
23
<PAGE> 23
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
