<PAGE> 1
[LOGO]
NATIONWIDE(R)
NATIONWIDE(R)
VARIABLE
ACCOUNT
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-717-AA (6/99)
<PAGE> 2
[LOGO]
NATIONWIDE(R)
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PICTURE]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to
present the 1999 semi-annual report of the Nationwide Variable
Account.
Equity investments performed well during the first half of 1999 with
the major market indices showing double-digit gains. Fixed income
investments did not fare as well during this period in the face of
the Federal Reserve's inflation cautiousness. The Fed is mindful of
the resilient U.S. economy and the increasingly tight labor pool
that portends future wage inflation. Accordingly, we have seen a
ratcheting-up of short-term interest rates to dampen the momentum of
the current expansion. How aggressively the Fed may react to the
perceived inflation threat only adds uncertainty to the already
jittery equity markets. Over the long term, however, a slower but
sustainable rate of growth, with low inflation, provides a favorable
environment for further advances in financial assets.
At mid-year, we are pleased to report that all the mission-critical
systems used to service our variable annuity and variable life
business have been internally inventoried, assessed and tested as
being Year 2000 compliant. We are currently contacting our critical
business partners to determine if they will be Year 2000 compliant.
Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure
that Nationwide Financial will be able to continue to serve your
financial needs into the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve
your financial planning and retirement savings goals. You have our
commitment to provide the consistent, high quality service you
expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
3
<PAGE> 3
- --------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
Investments at market value:
<S> <C>
American Century: Benham Short-Term Government Fund (ACBenSTGvt)
320,262 shares (cost $3,038,926) ................................................... $ 2,978,439
American Century: Income & Growth Fund (ACIncGro)
287,460 shares (cost $8,115,487) ................................................... 9,149,836
American Century: Twentieth Century Growth Fund (ACTCGro)
508,787 shares (cost $11,848,763) .................................................. 15,309,393
American Century: Twentieth Century International Growth Fund (ACTCIntlGr)
113,405 shares (cost $1,107,101) ................................................... 1,163,540
American Century: Twentieth Century Ultra Fund (ACTCUltra)
600,512 shares (cost $18,498,475) .................................................. 22,561,220
Delaware Group Delchester High-Yield Bond Fund, Inc. -
Delchester Fund Institutional Class (DeHYBd)
207,740 shares (cost $1,301,793) ................................................... 1,163,345
Dreyfus A Bonds Plus, Inc. (DryABds)
158,354 shares (cost $2,286,753) ................................................... 2,163,122
Dreyfus Appreciation Fund, Inc. (DryApp)
38,615 shares (cost $1,613,593) .................................................... 1,736,147
Dreyfus Balanced Fund, Inc. (DryBal)
15,385 shares (cost $252,831) ...................................................... 261,547
Dreyfus S&P 500 Index Fund (Dry500Ix)
458,831 shares (cost $15,034,293) .................................................. 18,697,367
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
104,111 shares (cost $1,239,805) ................................................... 1,428,401
Evergreen Income and Growth Fund - Class Y (EvIncGro)
61,849 shares (cost $1,304,876) .................................................... 1,419,430
Federated High Yield Trust (FedHiYld)
50,612 shares (cost $452,016) ...................................................... 442,858
Federated Investment Series Funds, Inc. - Federated Bond Fund - Class F (FedBdFd)
135,865 shares (cost $1,357,324) ................................................... 1,278,492
Fidelity Advisor Balanced Fund - Class T (FABal)
41,181 shares (cost $786,731) ...................................................... 796,032
Fidelity Advisor Equity Income Fund - Class T (FAEqInc)
64,256 shares (cost $1,686,005) .................................................... 1,954,671
Fidelity Advisor Growth Opportunities Fund - Class T (FAGrOpp)
162,939 shares (cost $7,141,503) ................................................... 8,722,116
</TABLE>
4
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
260,092 shares (cost $3,264,900) ................................................... 3,043,074
Fidelity Asset Manager(TM) (FidAsMgr)
265,216 shares (cost $4,627,692) ................................................... 4,795,111
Fidelity Capital & Income Fund (FidCapInc)
113,684 shares (cost $1,073,162) ................................................... 1,134,561
Fidelity Equity-Income Fund (FidEqInc)
286,661 shares (cost $12,405,936) .................................................. 17,666,897
Fidelity Magellan(R) Fund (FidMgln)
240,816 shares (cost $23,692,343) .................................................. 31,250,702
Fidelity Puritan(R) Fund (FidPurtn)
733,553 shares (cost $13,651,794) .................................................. 15,162,545
Fidelity VIP - High Income Portfolio (FidVIPHI)
11,462 shares (cost $129,840) ...................................................... 129,410
Franklin Mutual Series Fund Inc. - Mutual Shares Fund - Class 1 (FranMutSer)
13,124 shares (cost $275,197) ...................................................... 293,187
INVESCO Dynamics Fund, Inc. (InvDynam)
26,463 shares (cost $483,841) ...................................................... 521,841
Janus Fund (JanFund)
254,721 shares (cost $7,790,455) ................................................... 10,239,782
Janus Twenty Fund (Jan20Fd)
480,698 shares (cost $22,635,591) .................................................. 30,183,009
Janus Worldwide Fund (JanWrldwde)
197,798 shares (cost $8,755,891) ................................................... 10,568,327
Lazard Small Cap Portfolio - Open Shares (LazSmCap)
2,332 shares (cost $43,617) ........................................................ 44,847
MFS(R) World Governments Fund - Class A (MFSWdGvt)
59,657 shares (cost $650,871) ...................................................... 609,102
Nationwide(R) Bond Fund - Class D (NWBdFd)
168,359 shares (cost $1,594,805) ................................................... 1,553,954
Nationwide(R) Fund - Class D (NWFund)
261,559 shares (cost $7,464,344) ................................................... 9,068,260
Nationwide(R) Growth Fund - Class D (NWGroFd)
190,338 shares (cost $2,846,703) ................................................... 3,589,772
Nationwide(R) S&P 500 Index Fund - Class R (NWIndxFdR)
8,180 shares (cost $89,670) ........................................................ 98,160
Nationwide(R) Money Market Fund (NWMyMkt)
11,008,121 shares (cost $11,008,121) ............................................... 11,008,121
Nationwide(R) Intermediate U.S. Government Bond Fund - Class D(NWUSGvt)
51,597 shares (cost $542,413) ...................................................... 515,972
Neuberger & Berman Genesis Trust (NBGenesTr)
32,850 shares (cost $668,022) ...................................................... 690,171
Neuberger & Berman Guardian Trust (NBGuardTr)
297,534 shares (cost $7,616,433) ................................................... 7,652,575
(Continued)
</TABLE>
5
<PAGE> 5
<TABLE>
<CAPTION>
<S> <C>
Neuberger & Berman Limited Maturity Bond Fund (NBLtdMat)
154,848 shares (cost $1,528,959) ................................................... 1,491,182
Neuberger & Berman Partners Fund (NBPartFd)
318,629 shares (cost $8,717,988) ................................................... 9,182,899
Oppenheimer Global Fund - Class A (OppGlob)
166,329 shares (cost $7,271,139) ................................................... 8,075,280
Phoenix Balanced Fund Series - Class A (PhxBalFd)
54,139 shares (cost $900,292) ...................................................... 965,300
Prestige Balanced Fund - Class A (PrBal)
58 shares (cost $636) .............................................................. 651
Prestige International Fund - Class A (PrInt)
227 shares (cost $2,511) ........................................................... 2,487
Prestige Small Cap Fund - Class A (PrSmCap)
85 shares (cost $927) .............................................................. 979
Strong Common Stock Fund, Inc. (StComStk)
9,925 shares (cost $223,242) ....................................................... 241,174
Strong Total Return Fund, Inc. (StTotRet)
72,901 shares (cost $2,231,969) .................................................... 2,907,282
Templeton Foreign Fund - Class I (TemForFd)
445,982 shares (cost $4,485,713) ................................................... 4,593,614
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
104,718 shares (cost $3,820,241) ................................................... 4,413,844
Warburg Pincus Global Fixed - Income Fund - Common Shares (WPGlFxInc)
3,688 shares (cost $39,265) ........................................................ 38,282
--------------
Total investments ............................................................... 282,958,310
Accounts receivable ...................................................................... 11,466
-------------
Total assets .................................................................... 282,969,776
ACCOUNTS PAYABLE ............................................................................ 75,011
-------------
CONTRACT OWNERS' EQUITY (NOTE 4) ............................................................ $ 282,894,765
=============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
6
<PAGE> 6
- --------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACBenSTGvt ACIncGro
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ 1,403,793 1,251,682 74,419 82,236 47,124
Mortality, expense and administration
charges (note 2).............................. (1,648,158) (1,203,639) (19,333) (20,254) (51,320)
-------------- -------------- -------------- -------------- -------------
Net investment activity....................... (244,365) 48,043 55,086 61,982 (4,196)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold........... 32,701,634 27,457,889 303,134 172,680 1,488,052
Cost of mutual fund shares sold................. (28,477,576) (22,967,087) (305,879) (172,758) (1,292,642)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments........... 4,224,058 4,490,802 (2,745) (78) 195,410
Change in unrealized gain (loss) on investments 18,506,589 17,741,833 (73,896) 3,545 494,871
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments................ 22,730,647 22,232,635 (76,641) 3,467 690,281
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains........................ 1,843,360 1,107,191 - - 18,019
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations.......... 24,329,642 23,387,869 (21,555) 65,449 704,104
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................... 42,799,248 27,976,833 102,145 636,726 1,584,257
Transfers between funds......................... - - (33,159) (62,716) (23,274)
Redemptions..................................... (11,111,149) (12,419,535) (100,652) (551,920) (114,527)
Annuity benefits................................ (13,966) (13,817) (474) (474) -
Annual contract maintenance charge (note 2) .... (129,609) (79,548) (966) (1,106) (3,537)
Contingent deferred sales charges (note 2) ..... (157,441) (193,828) (2,154) (1,402) (2,150)
Adjustments to maintain reserves................ (47,913) 13,721 (790) (54) 1,305
-------------- -------------- -------------- -------------- -------------
Net equity transactions..................... 31,339,170 15,283,826 (36,050) 19,054 1,442,075
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity............. 55,668,812 38,671,695 (57,605) 84,503 2,146,179
Contract owners' equity beginning of period ...... 227,225,953 163,554,726 3,037,422 3,059,798 7,003,742
-------------- -------------- -------------- -------------- -------------
contract owners' equity end of period............. $ 282,894,765 202,226,421 2,979,817 3,144,301 9,149,921
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACIncGro ACTCGro
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... 18,339 - -
Mortality, expense and administration
charges (note 2).............................. (23,799) (93,312) (73,692)
-------------- -------------- --------------
Net investment activity....................... (5,460) (93,312) (73,692)
-------------- -------------- --------------
Proceeds from mutual fund shares sold........... 1,656,410 869,749 977,297
Cost of mutual fund shares sold................. (1,589,020) (560,410) (729,700)
-------------- -------------- --------------
Realized gain (loss) on investments........... 67,390 309,339 247,597
Change in unrealized gain (loss) on investments 413,673 1,161,886 2,147,408
-------------- -------------- --------------
Net gain (loss) on investments................ 481,063 1,471,225 2,395,005
-------------- -------------- --------------
Reinvested capital gains........................ 32,508 - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations.......... 508,111 1,377,913 2,321,313
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................... 1,735,562 877,500 286,089
Transfers between funds......................... 907,647 255,772 (223,794)
Redemptions..................................... (61,889) (659,730) (621,158)
Annuity benefits................................ - (7,784) (5,940)
Annual contract maintenance charge (note 2) .... (486) (11,047) (10,712)
Contingent deferred sales charges (note 2) ..... (1,890) (4,114) (2,754)
Adjustments to maintain reserves................ (947) 5,455 4,594
-------------- -------------- --------------
Net equity transactions..................... 2,577,997 456,052 (573,675)
-------------- -------------- --------------
Net change in contract owners' equity............. 3,086,108 1,833,965 1,747,638
Contract owners' equity beginning of period ...... 1,896,251 13,480,704 10,517,144
-------------- -------------- --------------
contract owners' equity end of period............. 4,982,359 15,314,669 12,264,782
============== ============== ==============
(Continued)
</TABLE>
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
ACTCIntlGr ACTCULTra DeHYBd
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - - - 61,674
Mortality, expense and administration
charges (note 2)............................... (6,546) (4,845) (131,435) (84,391) (7,826)
-------------- -------------- -------------- -------------- -------------
Net investment activity........................ (6,546) (4,845) (131,435) (84,391) 53,848
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold............ 166,677 269,614 1,190,278 542,160 143,280
Cost of mutual fund shares sold.................. (154,166) (231,090) (876,891) (425,865) (153,421)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments............ 12,511 38,524 313,387 116,295 (10,141)
Change in unrealized gain (loss) on investments . 57,004 116,921 2,040,643 2,669,101 (47,802)
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments................. 69,515 155,445 2,354,030 2,785,396 (57,943)
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains......................... 59 - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 63,028 150,600 2,222,595 2,701,005 (4,095)
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 184,143 124,166 3,623,692 1,985,220 215,490
Transfers between funds.......................... 59,204 212,214 (110,001) (252,660) (106,988)
Redemptions...................................... (29,111) (13,671) (640,731) (434,504) (33,336)
Annuity benefits................................. - - - - -
Annual contract maintenance charge (note 2) ..... (810) (176) (10,012) (6,508) (319)
Contingent deferred sales charges (note 2) ...... (832) (300) (10,559) (12,691) (736)
Adjustments to maintain reserves................. 11 13 243 67 1
-------------- -------------- -------------- -------------- -------------
Net equity transactions...................... 212,606 322,246 2,852,632 1,278,924 74,112
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.............. 275,634 472,846 5,075,227 3,979,929 70,017
Contract owners' equity beginning of period ....... 887,916 498,568 17,486,224 11,089,110 1,095,862
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.............. $ 1,163,550 971,414 22,561,451 15,069,039 1,165,879
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
DeHYBd DryABds
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 51,362 53,456 45,158
Mortality, expense and administration
charges (note 2)............................... (8,670) (14,101) (11,961)
-------------- -------------- --------------
Net investment activity........................ 42,692 39,355 33,197
-------------- -------------- --------------
Proceeds from mutual fund shares sold............ 198,250 378,283 401,390
Cost of mutual fund shares sold.................. (171,384) (389,166) (386,969)
-------------- -------------- --------------
Realized gain (loss) on investments............ 26,866 (10,883) 14,421
Change in unrealized gain (loss) on investments . (7,512) (41,880) 7,920
-------------- -------------- --------------
Net gain (loss) on investments................. 19,354 (52,763) 22,341
-------------- -------------- --------------
Reinvested capital gains......................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 62,046 (13,408) 55,538
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 135,984 311,482 285,372
Transfers between funds.......................... (76,008) (101,699) (120,752)
Redemptions...................................... (192,646) (121,205) (131,726)
Annuity benefits................................. - - -
Annual contract maintenance charge (note 2) ..... (232) (775) (578)
Contingent deferred sales charges (note 2) ...... (1,466) (3,778) (1,116)
Adjustments to maintain reserves................. (16) 390 (5)
-------------- -------------- --------------
Net equity transactions...................... (134,384) 84,415 31,195
-------------- -------------- --------------
Net change in contract owners' equity.............. (72,338) 71,007 86,733
Contract owners' equity beginning of period ....... 1,340,246 2,092,501 1,848,441
-------------- -------------- --------------
Contract owners' equity end of period.............. 1,267,908 2,163,508 1,935,174
============== ============== ==============
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DryApp DryBal Dry500Ix
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 2,924 1,182 -
Mortality, expense and administration
charges (note 2)............................. (8,483) (342) (1,399) (396) (98,999
-------------- -------------- -------------- -------------- -------------
Net investment activity...................... (8,483) (342) 1,525 786 (98,999
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 171,326 509 63,485 29,862 695,135
Cost of mutual fund shares sold................ (160,395) (447) (66,036) (28,932) (421,953
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... 10,931 62 (2,551) 930 273,182
Change in unrealized gain (loss) on investments 60,594 7,682 14,610 (1,095) 1,458,874
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... 71,525 7,744 12,059 (165) 1,732,056
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... 89 - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 63,131 7,402 13,584 621 1,633,057
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 655,607 43,942 123,403 81,964 3,892,627
Transfers between funds........................ 344,703 62,971 (33,208) 59,683 1,220,568
Redemptions.................................... (43,594) - (1,908) (29,513) (478,122
Annuity benefits............................... - - - - -
Annual contract maintenance charge (note 2) ... (332) (2) (97) (9) (9,762
Contingent deferred sales charges (note 2) .... (658) - (43) - (6,831
Adjustments to maintain reserves............... 622 26 104 (109) 173
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................... 956,349 106,937 88,250 112,016 4,618,653
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity............ 1,019,480 114,339 101,834 112,637 6,251,710
Contract owners' equity beginning of period ..... 717,296 - 159,816 - 12,445,816
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period............ $ 1,736,776 114,339 261,650 112,637 18,697,526
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
Dry500Ix Dry3dCen
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - -
Mortality, expense and administration
charges (note 2)............................. (58,750) (8,121) (5,354)
-------------- -------------- --------------
Net investment activity...................... (58,750) (8,121) (5,354)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.......... 1,727,626 191,463 142,102
Cost of mutual fund shares sold................ (1,251,428) (142,060) (112,335)
-------------- -------------- --------------
Realized gain (loss) on investments.......... 476,198 49,403 29,767
Change in unrealized gain (loss) on investments 936,584 85,976 106,052
-------------- -------------- --------------
Net gain (loss) on investments............... 1,412,782 135,379 135,819
-------------- -------------- --------------
Reinvested capital gains....................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 1,354,032 127,258 130,465
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 2,328,467 229,603 115,584
Transfers between funds........................ (428,953) 34,507 16,146
Redemptions.................................... (686,704) (38,962) (46,422)
Annuity benefits............................... - - -
Annual contract maintenance charge (note 2) ... (2,534) (1,005) (641)
Contingent deferred sales charges (note 2) .... (20,092) (143) (1,647)
Adjustments to maintain reserves............... (15) 32 11
-------------- -------------- --------------
Net equity transactions.................... 1,190,169 224,032 83,031
-------------- -------------- --------------
Net change in contract owners' equity............ 2,544,201 351,290 213,496
Contract owners' equity beginning of period ..... 7,631,150 1,077,131 721,473
-------------- -------------- --------------
Contract owners' equity end of period............ 10,175,351 1,428,421 934,969
============== ============== ==============
(Continued)
</TABLE>
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
EvIncGro FedHiYld FedBdFd
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 33,415 25,237 19,187 507 46,769
Mortality, expense and administration
charges (note 2)............................... (8,534) (7,440) (2,924) (81) (8,512)
-------------- -------------- -------------- -------------- -------------
Net investment activity........................ 24,881 17,797 16,263 426 38,257
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold............ 148,370 71,981 349,778 2,288 291,381
Cost of mutual fund shares sold.................. (135,285) (61,729) (349,336) (2,294) (296,303)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments............ 13,085 10,252 442 (6) (4,922)
Change in unrealized gain (loss) on investments . 135,817 (13,202) (11,327) (480) (67,303)
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments................. 148,902 (2,950) (10,885) (486) (72,225)
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains......................... - - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 173,783 14,847 5,378 (60) (33,968)
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 112,581 310,997 46,713 14,649 151,684
Transfers between funds.......................... (123,121) 3,492 (95,703) 16,381 8,212
Redemptions...................................... (24,330) (292,365) (2,783) - (44,611)
Annuity benefits................................. - - - - -
Annual contract maintenance charge (note 2) ..... (368) (248) (70) (1) (322)
Contingent deferred sales charges (note 2) ...... (619) (108) (57) - (298)
Adjustments to maintain reserves................. 8 4 208 7 85
-------------- -------------- -------------- -------------- -------------
Net equity transactions...................... (35,850) 21,772 (51,692) 31,036 114,749
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.............. 137,933 36,619 (46,314) 30,976 80,781
Contract owners' equity beginning of period ....... 1,281,506 1,109,581 489,378 - 1,205,464
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.............. $ 1,419,439 1,146,200 443,064 30,976 1,286,245
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FedBdFd FABal
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 26,386 9,239 6,558
Mortality, expense and administration
charges (note 2)............................... (4,741) (4,400) (2,092)
-------------- -------------- --------------
Net investment activity........................ 21,645 4,839 4,466
-------------- -------------- --------------
Proceeds from mutual fund shares sold............ 31,038 85,849 18,987
Cost of mutual fund shares sold.................. (30,200) (88,753) (15,881)
-------------- -------------- --------------
Realized gain (loss) on investments............ 838 (2,904) 3,106
Change in unrealized gain (loss) on investments . (191) 28,139 20,480
-------------- -------------- --------------
Net gain (loss) on investments................. 647 25,235 23,586
-------------- -------------- --------------
Reinvested capital gains......................... - 1,248 -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........... 22,292 31,322 28,052
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners................................ 139,156 267,544 173,428
Transfers between funds.......................... 387,319 51,630 403,449
Redemptions...................................... (4,901) (18,838) (9,547)
Annuity benefits................................. - - -
Annual contract maintenance charge (note 2) ..... (50) (605) (122)
Contingent deferred sales charges (note 2) ...... (1) (397) (340)
Adjustments to maintain reserves................. 16 11 44
-------------- -------------- --------------
Net equity transactions...................... 521,539 299,345 566,912
-------------- -------------- --------------
Net change in contract owners' equity.............. 543,831 330,667 594,964
Contract owners' equity beginning of period ....... 371,500 465,370 175,488
-------------- -------------- --------------
Contract owners' equity end of period.............. 915,331 796,037 770,452
============== ============== ==============
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FAEqInc FAGrOpp FAHiYLd
------------------------------ ----------------------------- -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ $ 5,675 5,099 - - 105,957
Mortality, expense and administration
charges (note 2)........................... (11,577) (9,063) (51,509) (36,301) (18,748)
-------------- -------------- -------------- -------------- -------------
Net investment activity.................... (5,902) (3,964) (51,509) (36,301) 87,209
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold........ 215,431 164,264 400,119 650,860 378,947
Cost of mutual fund shares sold.............. (160,539) (123,934) (286,848) (498,858) (406,050)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments........ 54,892 40,330 113,271 152,002 (27,103)
Change in unrealized gain (loss) on investments 72,927 104,678 424,150 411,908 115,741
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............. 127,819 145,008 537,421 563,910 88,638
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains..................... 11,723 8,458 4,369 23,737 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations....... 133,640 149,502 490,281 551,346 175,847
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 228,052 219,517 1,311,991 1,044,364 242,338
Transfers between funds...................... (78,893) 97,772 (133,213) (51,666) (11,182)
Redemptions.................................. (34,250) (160,096) (225,760) (154,883) (162,549)
Annuity benefits............................. - - - - -
Annual contract maintenance charge (note 2) . (1,235) (465) (4,459) (1,828) (1,120)
Contingent deferred sales charges (note 2) .. (959) (1,215) (2,569) (4,198) (775)
Adjustments to maintain reserves............. 17 1 66 6 (2,699)
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................. 112,732 155,514 946,057 831,795 64,012
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.......... 246,372 305,016 1,436,338 1,383,141 239,859
Contract owners' equity beginning of period ... 1,708,319 1,210,420 7,285,888 4,798,392 2,800,745
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.......... $ 1,954,691 1,515,436 8,722,226 6,181,533 3,040,604
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FAHiYld FidAsMgr
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ 92,312 72,908 55,659
Mortality, expense and administration
charges (note 2)........................... (19,561) (28,715) (24,290)
-------------- -------------- --------------
Net investment activity.................... 72,751 44,193 31,369
-------------- -------------- --------------
Proceeds from mutual fund shares sold........ 610,358 231,765 648,650
Cost of mutual fund shares sold.............. (573,778) (203,173) (476,263)
-------------- -------------- --------------
Realized gain (loss) on investments........ 36,580 28,592 172,387
Change in unrealized gain (loss) on investments 14,936 149,294 63,977
-------------- -------------- --------------
Net gain (loss) on investments............. 51,516 177,886 236,364
-------------- -------------- --------------
Reinvested capital gains..................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations....... 124,267 222,079 267,733
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 544,801 585,834 308,672
Transfers between funds...................... (13,554) (20,693) (61,501)
Redemptions.................................. (87,514) (131,116) (459,994)
Annuity benefits............................. - - -
Annual contract maintenance charge (note 2) . (495) (1,997) (1,254)
Contingent deferred sales charges (note 2) .. (2,306) (3,131) (12,242)
Adjustments to maintain reserves............. 776 20 (1)
-------------- -------------- --------------
Net equity transactions.................. 441,708 428,917 (226,320)
-------------- -------------- --------------
Net change in contract owners' equity.......... 565,975 650,996 41,413
Contract owners' equity beginning of period ... 2,492,698 4,144,138 3,668,034
-------------- -------------- --------------
Contract owners' equity end of period.......... 3,058,673 4,795,134 3,709,447
============== ============== ==============
(Continued)
</TABLE>
11
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidCapInc FidEqinc FidMgin
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 47,484 56,168 111,183 150,369 49,825
Mortality, expense and administration
charges (note 2)............................. (7,425) (8,374) (110,200) (119,439) (173,807)
-------------- -------------- -------------- -------------- -------------
Net investment activity...................... 40,059 47,794 983 30,930 (123,982)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 218,262 113,858 2,053,039 2,180,886 334,245
Cost of mutual fund shares sold................ (194,759) (93,059) (1,167,475) (1,313,998) (249,024)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... 23,503 20,799 885,564 866,888 85,221
Change in unrealized gain (loss) on investments 60,510 24,210 882,904 703,291 1,777,213
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... 84,013 45,009 1,768,468 1,570,179 1,862,434
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... 10,037 - 235,009 202,098 1,557,582
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 134,109 92,803 2,004,460 1,803,207 3,296,034
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. - 1,897 696,818 777,644 4,350,473
Transfers between funds........................ (123,064) (8,199) (668,130) (577,186) 1,535,091
Redemptions.................................... (85,510) (95,540) (1,419,823) (1,027,550) (659,296)
Annuity benefits............................... (999) (992) (2,765) (2,451) -
Annual contract maintenance charge (note 2) ... (1,309) (1,557) (12,432) (11,598) (11,080)
Contingent deferred sales charges (note 2) .... (138) (285) (7,716) (6,074) (13,050)
Adjustments to maintain reserves............... (988) (144) 197 (362) 318
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................... (212,008) (104,820) (1,413,851) (847,577) 5,202,455
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity............ (77,899) (12,017) 590,609 955,630 8,498,489
Contract owners' equity beginning of period ..... 1,211,457 1,289,328 17,076,425 17,444,026 22,752,524
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period............ $ 1,133,558 1,277,311 17,667,034 18,399,656 31,251,013
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
FidMgin FidPurtn
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 32,373 247,570 213,904
Mortality, expense and administration
charges (note 2)............................. (108,688) (96,154) (85,213)
-------------- -------------- --------------
Net investment activity...................... (76,315) 151,416 128,691
-------------- -------------- --------------
Proceeds from mutual fund shares sold.......... 703,725 1,502,440 833,965
Cost of mutual fund shares sold................ (627,077) (1,250,994) (606,507)
-------------- -------------- --------------
Realized gain (loss) on investments.......... 76,648 251,446 227,458
Change in unrealized gain (loss) on investments 2,176,817 183,032 901,811
-------------- -------------- --------------
Net gain (loss) on investments............... 2,253,465 434,478 1,129,269
-------------- -------------- --------------
Reinvested capital gains....................... 424,082 - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 2,601,232 585,894 1,257,960
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 2,384,328 1,686,657 1,878,950
Transfers between funds........................ 22,098 (988,853) (238,414)
Redemptions.................................... (653,288) (485,929) (728,427)
Annuity benefits............................... - - -
Annual contract maintenance charge (note 2) ... (8,176) (4,976) (3,813)
Contingent deferred sales charges (note 2) .... (16,398) (7,639) (16,203)
Adjustments to maintain reserves............... 10,246 58 29
-------------- -------------- --------------
Net equity transactions.................... 1,738,810 199,317 892,122
-------------- -------------- --------------
Net change in contract owners' equity............ 4,340,042 785,211 2,150,082
Contract owners' equity beginning of period ..... 14,580,812 14,377,391 11,858,759
-------------- -------------- --------------
Contract owners' equity end of period............ 18,920,854 15,162,602 14,008,841
============== ============== ==============
</TABLE>
12
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPHI FranMutSer InvDynam
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. ....... $ 11,245 19,285 425 - -
Mortality, expense and administration
charges (note 2)............................. (824) (1,817) (1,572) (222) (1,348)
-------------- -------------- -------------- -------------- -------------
Net investment activity...................... 10,421 17,468 (1,147) (222) (1,348)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 1,523 11,092 52,508 93 48,778
Cost of mutual fund shares sold................ (1,406) (10,213) (55,928) (88) (42,593)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... 117 879 (3,420) 5 6,185
Change in unrealized gain (loss) on investments (2,178) (19,204) 34,422 (204) 37,999
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... (2,061) (18,325) 31,002 (199) 44,184
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... 420 12,254 4,316 - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 8,780 11,397 34,171 (421) 42,836
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. - - 43,270 64,461 9,348
Transfers between funds........................ (641) - 55,332 22,986 471,056
Redemptions.................................... - (8,989) (25,128) - (1,379)
Annuity benefits............................... - - - - -
Annual contract maintenance charge (note 2) ... (55) (79) (197) - (20)
Contingent deferred sales charges (note 2) .... - - (251) - -
Adjustments to maintain reserves....... ....... 15 (4) 119 361,493 101
-------------- -------------- -------------- -------------- -------------
Net equity transactions............ ....... (681) (9,072) 73,145 448,940 479,105
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.... ....... 8,099 2,325 107,316 448,519 521,941
Contract owners' equity beginning of period ..... 121,339 273,172 185,993 - -
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.... ....... $ 129,438 275,497 293,309 448,519 521,941
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
InvDynam JanFund
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 13,196
Mortality, expense and administration
charges (note 2)............................. - (51,053) (26,648)
-------------- -------------- --------------
Net investment activity...................... - (51,053) (13,452)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.......... - 369,425 325,074
Cost of mutual fund shares sold................ - (273,063) (291,741)
-------------- -------------- --------------
Realized gain (loss) on investments.......... - 96,362 33,333
Change in unrealized gain (loss) on investments - 1,263,026 734,487
-------------- -------------- --------------
Net gain (loss) on investments............... - 1,359,388 767,820
-------------- -------------- --------------
Reinvested capital gains....................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... - 1,308,335 754,368
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. - 1,614,853 729,270
Transfers between funds........................ - 1,523,345 (86,541)
Redemptions.................................... - (296,468) (97,992)
Annuity benefits............................... - - -
Annual contract maintenance charge (note 2) ... - (3,807) (1,433)
Contingent deferred sales charges (note 2) .... - (4,352) (2,083)
Adjustments to maintain reserves............... - 127 24
-------------- -------------- --------------
Net equity transactions.................... - 2,833,698 541,245
-------------- -------------- --------------
Net change in contract owners' equity............ - 4,142,033 1,295,613
Contract owners' equity beginning of period ..... - 6,097,880 3,447,634
-------------- -------------- --------------
Contract owners' equity end of period............ - 10,239,913 4,743,247
============== ============== ==============
(Continued)
</TABLE>
13
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Jan20Fd JanWrldwde LazSmCap
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ $ - 166 - 1,347 -
Mortality, expense and administration
charges (note 2)........................... (158,983) (48,625) (57,130) (32,993) (172)
-------------- -------------- -------------- -------------- -------------
Net investment activity.................... (158,983) (48,459) (57,130) (31,646) (172)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold........ 1,506,844 581,973 327,649 831,635 67,458
Cost of mutual fund shares sold.............. (763,583) (526,333) (228,166) (690,278) (64,794)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments........ 743,261 55,640 99,483 141,357 2,664
Change in unrealized gain (loss) on investments 2,572,942 2,245,913 969,327 941,630 1,230
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............. 3,316,203 2,301,553 1,068,810 1,082,987 3,894
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains..................... - - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations....... 3,157,220 2,253,094 1,011,680 1,051,341 3,722
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 7,526,570 1,140,954 2,180,225 1,208,916 873
Transfers between funds...................... 4,105,340 1,059,783 632,596 68,117 40,118
Redemptions.................................. (995,102) (272,277) (246,311) (87,360) -
Annuity benefits............................. - - - - -
Annual contract maintenance charge (note 2) . (9,460) (2,542) (4,678) (1,374) -
Contingent deferred sales charges (note 2) .. (17,878) (8,361) (2,764) (3,157) -
Adjustments to maintain reserves............. 386 95 97 35 (332)
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................. 10,609,855 1,917,652 2,559,164 1,185,177 40,659
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.......... 13,767,075 4,170,746 3,570,844 2,236,518 44,381
Contract owners' equity beginning of period ... 16,416,311 5,909,299 6,997,578 3,974,671 470
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.......... $ 30,183,386 10,080,045 10,568,422 6,211,189 44,851
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
LazSmCap MFSWdGvt
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ - - -
Mortality, expense and administration
charges (note 2)........................... - (4,439) (4,825)
-------------- -------------- --------------
Net investment activity.................... - (4,439) (4,825)
-------------- -------------- --------------
Proceeds from mutual fund shares sold........ - 169,504 91,531
Cost of mutual fund shares sold.............. - (183,145) (90,099)
-------------- -------------- --------------
Realized gain (loss) on investments........ - (13,641) 1,432
Change in unrealized gain (loss) on investments - (8,548) 19,437
-------------- -------------- --------------
Net gain (loss) on investments............. - (22,189) 20,869
-------------- -------------- --------------
Reinvested capital gains..................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations....... - (26,628) 16,044
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ - 49,439 12,834
Transfers between funds...................... - (60,571) (15,506)
Redemptions.................................. - (95,095) (72,327)
Annuity benefits............................. - (1,255) (1,312)
Annual contract maintenance charge (note 2) . - (568) (701)
Contingent deferred sales charges (note 2) .. - (1,097) (761)
Adjustments to maintain reserves............. - (301) 135
-------------- -------------- --------------
Net equity transactions.................. - (109,448) (77,638)
-------------- -------------- --------------
Net change in contract owners' equity.......... - (136,076) (61,594)
Contract owners' equity beginning of period ... - 756,404 761,789
-------------- -------------- --------------
Contract owners' equity end of period.......... - 620,328 700,195
============== ============== ==============
</TABLE>
14
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NWBdFd NWFund NWGroFd
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ $ 48,070 48,536 31,376 30,871 -
Mortality, expense and administration
charges (note 2)........................... (10,745) (10,514) (52,710) (37,119) (23,265)
-------------- -------------- -------------- -------------- -------------
Net investment activity.................... 37,325 38,022 (21,334) (6,248) (23,265)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold........ 413,628 352,636 609,937 846,656 555,632
Cost of mutual fund shares sold.............. (410,023) (330,039) (344,267) (444,496) (385,961)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.. ..... 3,605 22,597 265,670 402,160 169,671
Change in unrealized gain (loss) on investments (93,043) (4,255) 348,038 410,454 171,460
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............. (89,438) 18,342 613,708 812,614 341,131
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains..................... - - - 240,525 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations....... (52,113) 56,364 592,374 1,046,891 317,866
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 214,006 290,794 1,774,689 1,333,034 247,760
Transfers between funds...................... (94,023) (161,641) (291,938) 320,210 7,182
Redemptions.................................. (113,282) (401,192) (466,227) (503,654) (522,128)
Annuity benefits............................. (18) (106) (152) (810) (141)
Annual contract maintenance charge (note 2) . (610) (583) (4,928) (1,592) (2,435)
Contingent deferred sales charges (note 2) .. (1,076) (605) (2,673) (920) (2,265)
Adjustments to maintain reserves............. (2,001) (29) (18,975) (1,159) (17,522)
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................. 2,996 (273,362) 989,796 1,145,109 (289,550)
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.......... (49,117) (216,998) 1,582,170 2,192,000 28,316
Contract owners' equity beginning of period ... 1,601,069 1,713,185 7,462,477 4,500,730 3,543,989
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.......... $ 1,551,952 1,496,187 9,044,647 6,692,730 3,572,305
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NWGroFd NWIndxFdr
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ 5,977 323 -
Mortality, expense and administration
charges (note 2)........................... (30,077) (434) -
-------------- -------------- --------------
Net investment activity.................... (24,100) (111) -
-------------- -------------- --------------
Proceeds from mutual fund shares sold........ 1,296,735 424 -
Cost of mutual fund shares sold.............. (795,926) (397) -
-------------- -------------- --------------
Realized gain (loss) on investments.. ..... 500,809 27 -
Change in unrealized gain (loss) on investments 145,923 8,490 -
-------------- -------------- --------------
Net gain (loss) on investments............. 646,732 8,517 -
-------------- -------------- --------------
Reinvested capital gains..................... 160,091 - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations....... 782,723 8,406 -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 198,265 79,272 -
Transfers between funds...................... 117,725 10,481 -
Redemptions.................................. (1,216,279) - -
Annuity benefits............................. (785) - -
Annual contract maintenance charge (note 2) . (1,807) - -
Contingent deferred sales charges (note 2) .. (2,926) - -
Adjustments to maintain reserves............. (99) 36 -
-------------- -------------- --------------
Net equity transactions.................. (905,906) 89,790 -
-------------- -------------- --------------
Net change in contract owners' equity.......... (123,183) 98,196 -
Contract owners' equity beginning of period ... 4,406,739 - -
-------------- -------------- --------------
Contract owners' equity end of period.......... 4,283,556 98,196 -
============== ============== ==============
(Continued)
</TABLE>
15
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NWMyMkt NWUSGvt NBGenesTr
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 241,981 208,548 13,679 3,670 -
Mortality, expense and administration
charges (note 2)............................. (71,944) (54,216) (3,402) (886) (4,507)
-------------- -------------- -------------- -------------- -------------
Net investment activity...................... 170,037 154,332 10,277 2,784 (4,507)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... 9,156,260 6,665,897 155,670 3,941 225,584
Cost of mutual fund shares sold................ (9,156,260) (6,665,897) (160,869) (3,825) (269,243)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... - - (5,199) 116 (43,659)
Change in unrealized gain (loss) on investments - - (19,534) 725 69,803
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... - - (24,733) 841 26,144
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... - - - 1,363 -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 170,037 154,332 (14,456) 4,988 21,637
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 3,329,931 1,857,116 120,346 102,002 142,453
Transfers between funds........................ (2,505,346) (396,562) (85,855) 33,119 (58,864)
Redemptions.................................... (1,480,695) (1,340,322) (21,503) (3,498) (39,680)
Annuity benefits............................... (377) (947) - - -
Annual contract maintenance charge (note 2) ... (5,379) (4,571) (196) (85) (271)
Contingent deferred sales charges (note 2) .... (39,548) (31,573) (193) (23) (793)
Adjustments to maintain reserves............... (15,442) 406 (17) 6 318
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................... (716,855) 83,547 12,582 131,521 43,163
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity............ (546,818) 237,879 (1,874) 136,509 64,800
Contract owners' equity beginning of period ..... 11,504,938 7,765,550 517,836 75,160 625,721
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period............ $ 10,958,120 8,003,429 515,962 211,669 690,521
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
NBGenesTr NBGuardTr
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - 24,150 20,579
Mortality, expense and administration
charges (note 2)............................. (1,463) (48,298) (54,913)
-------------- -------------- --------------
Net investment activity...................... (1,463) (24,148) (34,334)
-------------- -------------- --------------
Proceeds from mutual fund shares sold.......... 7,905 1,440,182 774,277
Cost of mutual fund shares sold................ (7,457) (1,451,840) (643,648)
-------------- -------------- --------------
Realized gain (loss) on investments.......... 448 (11,658) 130,629
Change in unrealized gain (loss) on investments (17,611) 1,031,074 838,830
-------------- -------------- --------------
Net gain (loss) on investments............... (17,163) 1,019,416 969,459
-------------- -------------- --------------
Reinvested capital gains....................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... (18,626) 995,268 935,125
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 192,859 595,130 948,462
Transfers between funds........................ 276,754 (1,243,768) (586,492)
Redemptions.................................... (2,460) (188,576) (303,030)
Annuity benefits............................... - - -
Annual contract maintenance charge (note 2) ... (7) (3,100) (2,618)
Contingent deferred sales charges (note 2) .... - (2,196) (5,408)
Adjustments to maintain reserves............... (361,477) 96 21
-------------- -------------- --------------
Net equity transactions.................... 105,669 (842,414) 50,935
-------------- -------------- --------------
Net change in contract owners' equity............ 87,043 152,854 986,060
Contract owners' equity beginning of period ..... - 7,499,816 7,634,575
-------------- -------------- --------------
Contract owners' equity end of period............ 87,043 7,652,670 8,620,635
============== ============== ==============
</TABLE>
16
<PAGE> 16
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NBLtdMat NBPartFd OppGlob
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ 35,262 24,146 - - -
Mortality, expense and administration
charges (note 2)............................ (7,792) (5,204) (58,958) (55,708) (49,189)
-------------- -------------- -------------- -------------- -------------
Net investment activity..................... 27,470 18,942 (58,958) (55,708) (49,189)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold......... 197,131 106,606 1,592,623 651,741 1,279,030
Cost of mutual fund shares sold............... (202,120) (105,877) (1,450,085) (523,950) (1,146,095)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments......... (4,989) 729 142,538 127,791 132,935
Change in unrealized gain (loss) on investments (27,751) (3,833) 966,907 387,808 872,874
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments.............. (32,740) (3,104) 1,109,445 515,599 1,005,809
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains...................... - - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations........ (5,270) 15,838 1,050,487 459,891 956,620
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 644,631 110,110 765,461 1,989,855 551,439
Transfers between funds....................... (108,836) (72,694) (1,762,703) 137 (456,002)
Redemptions................................... (20,192) (18,587) (190,795) (621,295) (235,361)
Annuity benefits.............................. - - - - -
Annual contract maintenance charge (note 2) .. (442) (265) (5,517) (2,549) (3,131)
Contingent deferred sales charges (note 2) ... (31) (159) (3,016) (12,289) (3,967)
Adjustments to maintain reserves.............. 146 72 95 (50) 48
-------------- -------------- -------------- -------------- -------------
Net equity transactions................... 515,276 18,477 (1,196,474) 1,353,809 (146,975)
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity........... 510,006 34,315 (145,987) 1,813,700 809,645
Contract owners' equity beginning of period .... 981,318 785,148 9,328,976 7,426,836 7,265,693
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period........... $ 1,491,324 819,463 9,182,989 9,240,536 8,075,338
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
OppGlob PhxBalFd
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... - 8,082 8,127
Mortality, expense and administration
charges (note 2)............................ (41,245) (5,439) (4,749)
-------------- -------------- --------------
Net investment activity..................... (41,245) 2,643 3,378
-------------- -------------- --------------
Proceeds from mutual fund shares sold......... 1,289,476 29,956 28,884
Cost of mutual fund shares sold............... (1,025,513) (27,820) (29,576)
-------------- -------------- --------------
Realized gain (loss) on investments......... 263,963 2,136 (692)
Change in unrealized gain (loss) on investments 484,046 24,121 63,343
-------------- -------------- --------------
Net gain (loss) on investments.............. 748,009 26,257 62,651
-------------- -------------- --------------
Reinvested capital gains...................... - - 2,075
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations........ 706,764 28,900 68,104
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................. 813,616 111,727 84,398
Transfers between funds....................... 36,819 49,992 113
Redemptions................................... (289,537) (19,719) (25,662)
Annuity benefits.............................. - - -
Annual contract maintenance charge (note 2) .. (2,540) (529) (308)
Contingent deferred sales charges (note 2) ... (7,283) (493) (732)
Adjustments to maintain reserves.............. 26 21 2
-------------- -------------- --------------
Net equity transactions................... 551,101 140,999 57,811
-------------- -------------- --------------
Net change in contract owners' equity........... 1,257,865 169,899 125,915
Contract owners' equity beginning of period .... 5,695,782 795,875 663,764
-------------- -------------- --------------
Contract owners' equity end of period........... 6,953,647 965,774 789,679
============== ============== ==============
(Continued)
</TABLE>
17
<PAGE> 17
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PrBal Print PrSmCap
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 17 - 1
Mortality, expense and administration
charges (note 2)............................. - - (16) - (4)
-------------- -------------- -------------- -------------- -------------
Net investment activity...................... - - 1 - (3)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold.......... - - 3,183 - 780
Cost of mutual fund shares sold................ - - (3,139) - (784)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments.......... - - 44 - (4)
Change in unrealized gain (loss) on investments 15 - (24) - 52
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............... 15 - 20 - 48
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains....................... - - - - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 15 - 21 - 45
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 636 - 2,495 - 705
Transfers between funds........................ - - (1,811) - (247)
Redemptions.................................... - - - - -
Annuity benefits............................... - - - - -
Annual contract maintenance charge (note 2) ... - - - - -
Contingent deferred sales charges (note 2) .... - - - - -
Adjustments to maintain reserves............... 5 - (33) - 12
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................... 641 - 651 - 470
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity............ 656 - 672 - 515
Contract owners' equity beginning of period ..... - - 1,816 - 466
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period............ $ 656 - 2,488 - 981
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
PrSmCap StComStk
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - -
Mortality, expense and administration
charges (note 2)............................. - (610) -
-------------- -------------- --------------
Net investment activity...................... - (610) -
-------------- -------------- --------------
Proceeds from mutual fund shares sold.......... - 1,024 -
Cost of mutual fund shares sold................ - (992) -
-------------- -------------- --------------
Realized gain (loss) on investments.......... - 32 -
Change in unrealized gain (loss) on investments - 17,932 -
-------------- -------------- --------------
Net gain (loss) on investments............... - 17,964 -
-------------- -------------- --------------
Reinvested capital gains....................... - 493 -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... - 17,847 -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. - 19,696 -
Transfers between funds........................ - 203,649 -
Redemptions.................................... - - -
Annuity benefits............................... - - -
Annual contract maintenance charge (note 2) ... - (17) -
Contingent deferred sales charges (note 2) .... - - -
Adjustments to maintain reserves............... - 45 -
-------------- -------------- --------------
Net equity transactions.................... - 223,372 -
-------------- -------------- --------------
Net change in contract owners' equity............ - 241,219 -
Contract owners' equity beginning of period ..... - - -
-------------- -------------- --------------
Contract owners' equity end of period............ - 241,219 -
============== ============== ==============
</TABLE>
18
<PAGE> 18
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
StTotRet TemForFD WPEmGro
------------------------------ ------------------------------ -------------
1999 1998 1999 1998 1999
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ $ - 2,892 (1) - -
Mortality, expense and administration
charges (note 2)........................... (15,981) (10,884) (26,756) (32,191) (28,593)
-------------- -------------- -------------- -------------- -------------
Net investment activity.................... (15,981) (7,992) (26,757) (32,191) (28,593)
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund shares sold........ 76,413 231,676 1,180,288 699,805 1,122,607
Cost of mutual fund shares sold.............. (58,483) (247,061) (1,279,897) (634,450) (957,319)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on investments........ 17,930 (15,385) (99,609) 65,355 165,288
Change in unrealized gain (loss) on investments 335,152 269,048 939,059 65,375 34,316
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments............. 353,082 253,663 839,450 130,730 199,604
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains..................... - - (4) - -
-------------- -------------- -------------- -------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations....... 337,101 245,671 812,689 98,539 171,011
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 584,068 173,006 276,461 473,208 411,043
Transfers between funds...................... 108,365 (143,012) (407,174) (467,869) (857,904)
Redemptions.................................. (145,015) (83,276) (153,850) (263,203) (297,964)
Annuity benefits............................. - - - - -
Annual contract maintenance charge (note 2) . (939) (435) (2,065) (1,802) (2,570)
Contingent deferred sales charges (note 2) .. (1,076) (1,224) (2,063) (3,358) (2,362)
Adjustments to maintain reserves............. 27 25 113 (4) 11
-------------- -------------- -------------- -------------- -------------
Net equity transactions.................. 545,430 (54,916) (288,578) (263,028) (749,746)
-------------- -------------- -------------- -------------- -------------
Net change in contract owners' equity.......... 882,531 190,755 524,111 (164,489) (578,735)
Contract owners' equity beginning of period ... 2,024,780 1,613,016 4,069,618 4,826,284 4,992,592
-------------- -------------- -------------- -------------- -------------
Contract owners' equity end of period.......... $ 2,907,311 1,803,771 4,593,729 4,661,795 4,413,857
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
WPEmGro WPGIFxinc
-------------- ------------------------------
1998 1999 1998
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................ - 374 1,493
Mortality, expense and administration
charges (note 2)........................... (31,260) (614) (343)
-------------- -------------- --------------
Net investment activity.................... (31,260) (240) 1,150
-------------- -------------- --------------
Proceeds from mutual fund shares sold........ 504,010 247,105 7,486
Cost of mutual fund shares sold.............. (369,635) (247,746) (7,479)
-------------- -------------- --------------
Realized gain (loss) on investments........ 134,375 (641) 7
Change in unrealized gain (loss) on investments 371,651 (2,549) (244)
-------------- -------------- --------------
Net gain (loss) on investments............. 506,026 (3,190) (237)
-------------- -------------- --------------
Reinvested capital gains..................... - - -
-------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations....... 474,766 (3,430) 913
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............................ 643,534 22,086 52,660
Transfers between funds...................... (79,215) (130,278) -
Redemptions.................................. (363,937) (5) (400)
Annuity benefits............................. - - -
Annual contract maintenance charge (note 2) . (1,663) (58) (3)
Contingent deferred sales charges (note 2) .. (10,213) (0) (25)
Adjustments to maintain reserves............. (14) 45 30
-------------- -------------- --------------
Net equity transactions.................. 188,492 (108,210) 52,262
-------------- -------------- --------------
Net change in contract owners' equity.......... 663,258 (111,640) 53,175
Contract owners' equity beginning of period ... 4,480,173 149,963 -
-------------- -------------- --------------
Contract owners' equity end of period.......... 5,143,431 38,323 53,175
============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
19
<PAGE> 19
- --------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1999 and 1998
(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)
American Century: Income & Growth Fund (ACIncGro)
American Century: Twentieth Century Growth Fund (ACTCGro)
American Century: Twentieth Century International Growth Fund
(ACTCIntlGr)
American Century: Twentieth Century Ultra Fund (ACTCUltra)
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)
Federated High Yield Trust (FedHiYld)
Federated Investment Series Funds, Inc. - Federated Bond Fund -
Class F (FedBdFd)
Fidelity Advisor Balanced Fund - Class T (FABal)
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)
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)
20
<PAGE> 20
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)
INVESCO Dynamics Fund (InvDynam)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd)
Janus Worldwide Fund (JanWrldwde)
Lazard Small Cap Portfolio - Open Shares (LazSmCap)
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 Bond Fund - Class D
(NWUSGvt) (formerly Nationwide U.S. Government Income Fund)
(managed for a fee by an affiliated investment advisor)
Nationwide S&P 500(R) Index Fund - Class R (NWIndxFd)
(managed for a fee by an affiliated investment advisor)
Neuberger & Berman Genesis Trust (NBGenesTr)
(available only for contracts established prior to
March 6, 1998)
Neuberger & Berman Guardian Trust (NBGuardTr)
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)
Prestige Balanced Fund - Class A (PrBal) (managed for a fee by an
affiliated investment advisor)
Prestige International Fund - Class A (PrInt) (managed for a fee
by an affiliated investment advisor)
Prestige Large Cap Growth Fund - Class A (PrLgCapGro)
(managed for a fee by an affiliated investment advisor)
Prestige Large Cap Value Fund - Class A (PrLgCapVal)
(managed for a fee by an affiliated investment advisor)
Prestige Small Cap Fund - Class A (PrSmCap) (managed for a fee by
an affiliated investment advisor)
Strong Common Stock Fund, Inc. (StComStk)
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, 1999, contract owners have not invested in all of the above
funds except for Prestige Large Cap Growth Fund - Class A and Prestige
Large Cap Value Fund - Class A. 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.
21
<PAGE> 21
(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, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code. The Company does not provide for
income taxes within the Account. Taxes are the responsibility of the
contract owner upon termination or withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(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 up to $30, dependent upon contract type and
issue date, 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.
22
<PAGE> 22
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1999, for
each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
------- ---------- ---------
Contracts in accumulation phase:
<S> <C> <C> <C> <C>
American Century: Benham
Short-Term Government Fund:
Tax qualified 130,118 $ 22.847248 $ 2,972,838 (1)%
American Century: Income & Growth Fund:
Tax qualified 475,929 19.225391 9,149,921 9%
American Century: Twentieth Century
Growth Fund:
Tax qualified 155,439 97.434015 15,145,046 10%
American Century: Twentieth Century
International Growth Fund:
Tax qualified 59,371 19.597953 1,163,550 6%
American Century: Twentieth Century
Ultra Fund:
Tax qualified 906,171 24.897565 22,561,451 12%
Delaware Group Delchester High-Yield
Bond Fund, Inc. - Delchester Fund
Institutional Class:
Tax qualified 78,498 14.852338 1,165,879 0%
Dreyfus A Bonds Plus, Inc.:
Tax qualified 181,364 11.929092 2,163,508 (1)%
Dreyfus Appreciation Fund, Inc.:
Tax qualified 128,536 13.511983 1,736,776 6%
Dreyfus Balanced Fund, Inc.:
Tax qualified 23,096 11.328795 261,650 5%
Dreyfus S&P 500 Index Fund:
Tax qualified 579,969 32.238837 18,697,526 11%
The Dreyfus Third Century Fund, Inc.:
Tax qualified 49,827 28.667606 1,428,421 11%
Evergreen Income and Growth
Fund - Class Y:
Tax qualified 73,386 19.342098 1,419,439 14%
Federated High Yield Trust:
Tax qualified 43,484 10.189133 443,064 2%
Federated Investment Series Funds, Inc. -
Federated Bond Fund - Class F:
Tax qualified 114,206 11.262503 1,286,245 (2)%
Fidelity Advisor Balanced Fund - Class T:
Tax qualified 50,914 15.634927 796,037 4%
Fidelity Advisor Equity Income
Fund - Class T:
Tax qualified 110,388 17.707462 1,954,691 8%
(Continued)
</TABLE>
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Fidelity Advisor Growth Opportunities
Fund - Class T:
Tax qualified 442,011 19.733051 8,722,226 6%
Fidelity Advisor High Yield Fund - Class T:
Tax qualified 227,894 13.342184 3,040,604 6%
Fidelity Asset Manager(TM):
Tax qualified 265,367 18.069819 4,795,134 5%
Fidelity Capital & Income Fund:
Tax qualified 20,691 54.266408 1,122,826 12%
Fidelity Equity-Income Fund:
Tax qualified 199,197 88.625012 17,653,837 13%
Fidelity Magellan(R) Fund:
Tax qualified 942,065 33.172884 31,251,013 13%
Fidelity Puritan(R) Fund:
Tax qualified 640,246 23.682462 15,162,602 4%
Fidelity VIP - High Income Portfolio:
Tax qualified 5,049 25.636308 129,438 7%
Franklin Mutual Series Fund Inc. -
Mutual Shares Fund - Class I:
Tax qualified 25,638 11.440419 293,309 16%
INVESCO Dynamics Fund, Inc.:
Tax qualified 39,944 13.066822 521,941 24%
Janus Fund:
Tax qualified 429,851 23.822006 10,239,913 19%
Janus Twenty Fund:
Tax qualified 797,334 37.855385 30,183,386 17%
Janus Worldwide Fund:
Tax qualified 618,608 17.084199 10,568,422 12%
Lazard Small Cap Portfolio - Open Shares:
Tax qualified 3,898 11.506235 44,851 10%
MFS(R) World Governments Fund - Class A:
Tax qualified 17,076 36.048902 615,571 (4)%
Nationwide(R) Bond Fund - Class D:
Tax qualified 36,518 42.327448 1,545,714 (3)%
Non-tax qualified 148 42.145990 6,238 (3)%
Nationwide(R) Fund - Class D:
Tax qualified 67,407 133.844588 9,022,062 7%
Non-tax qualified 162 139.412740 22,585 7%
Nationwide(R) Growth Fund - Class D:
Tax qualified 28,252 125.445692 3,544,092 9%
Non-tax qualified 213 132.454854 28,213 9%
Nationwide(R) S&P 500 Index Fund - Class R:
Tax qualified 8,846 11.100593 98,196 11%
</TABLE>
24
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<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Nationwide(R) Money Market Fund:
Tax qualified - Pre 12/25/82 29,397 26.941180 791,990 2%
Tax qualified 474,051 21.395533 10,142,574 2%
Non-tax qualified 840 27.111446 22,774 2%
Nationwide(R) Intermediate U.S.
Government Bond Fund - Class D:
Tax qualified 44,454 11.606645 515,962 (3)%
Neuberger & Berman Genesis Trust
Tax qualified 72,611 9.509874 690,521 3%
Neuberger & Berman Guardian Trust:
Tax qualified 389,105 19.667366 7,652,670 14%
Neuberger & Berman Limited Maturity
Bond Fund:
Tax qualified 123,902 12.036319 1,491,324 0%
Neuberger & Berman Partners Fund:
Tax qualified 328,051 27.992566 9,182,989 12%
Oppenheimer Global Fund - Class A:
Tax qualified 295,850 27.295378 8,075,338 13%
Phoenix Balanced Fund Series - Class A:
Tax qualified 56,185 17.189187 965,774 3%
Prestige Balanced Fund - Class A:
Tax qualified 62 10.577813 656 5%
Prestige International Fund - Class A:
Tax qualified 239 10.411831 2,488 4%
Prestige Small Cap Fund - Class A:
Tax qualified 90 10.905418 981 5%
Strong Common Stock Fund, Inc.
Tax qualified 19,464 12.393104 241,219 19%
Strong Total Return Fund, Inc.:
Tax qualified 94,465 30.776598 2,907,311 15%
Templeton Foreign Fund - Class I:
Tax qualified 294,907 15.576874 4,593,729 22%
Warburg Pincus Emerging Growth
Fund - Common Shares:
Tax qualified 285,237 15.474349 4,413,857 5%
Warburg Pincus Global Fixed-Income
Fund - Common Shares:
Tax qualified 3,663 10.462246 38,323 (2)%
======= =========
Reserves for annuity contracts in payout phase:
Tax qualified 206,070
-------------
$ 282,894,765
=============
</TABLE>
* The period return does not include contract charges satisfied by surrendering
units.
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--------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
