<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 2000
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-717-AC (06/00)
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[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[JOSEPH J. GASPER PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 2000
semi-annual report of the Nationwide Variable Account.
During the first half of 2000 fixed income and equity markets took a hiatus from
their recent advances. It appears the Federal Reserve's interest rate hikers are
accomplishing the intended purpose. Recent economic statistics show some
moderation in the areas of home and vehicles sales because of the higher
interest costs. And, there are other favorable indications that the Fed may yet
"glide" the economy to a soft landing. Inflation remains low. Sustained
increases in worker productivity continue to dampen pricing pressures of an
increasingly tight labor pool. Corporate profitability growth remains viable. An
improving global economy bodes well for U.S. exporting businesses. While all
this provides a positive backdrop, we expect the markets will continue jittery
and volatile during the second half of the year as uncertainty over further Fed
actions persists. However, we believe patient investors in financial assets will
be amply rewarded when we move beyond this temporary respite.
Nationwide Life was a forerunner in the variable annuity and variable life
insurance business. We continue to develop new and innovative investment
products to better meet your financial planning and retirement needs. And, we
are equally committed to providing you, our valued customer, the exceptional
level of customer service you expect and deserve.
/s/ JOSEPH J. GASPER
------------------------------
Joseph J. Gasper, President
August 16, 2000
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[THIS PAGE LEFT BLANK INTENTIONALLY]
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HOW TO READ THE SEMI-ANNUAL REPORT
This semi-annual report is a presentation of the variable account as a whole and
only describes the underlying contracts and products of the variable account in
general terms. Please note the variable account may have more than one variable
product available. Such products may have different under- lying mutual funds
available than those available in your contract. Therefore, not all funds listed
in this report may be available in your contract. Please refer to your most
recent account statement for specific information about your investment in the
Nationwide Variable Account. Rules and regulations of the United States
Securities and Exchange Commission and recognized conventions of Generally
Accepted Accounting Principals prescribe the format and content of this report.
We also invite you to call our service center at 1-800-848-6331 if you have
questions about your account, or you may access your account using our voice
response unit. And, please visit our web-site at www.nwservicecenter.com for
additional information about your contract and to learn more about other
products and services offered by Nationwide Financial.
THE ANNUAL REPORT HAS FOUR MAJOR FINANCIAL SECTIONS:
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNER'S EQUITY
This statement begins on page 6 and lists all of the underlying mutual funds of
the variable account, the number of shares owned, the amount paid for the shares
and their market value as of the close of business on June 30, 2000. The mutual
funds are listed in alphabetical order. The market value of the assets changes
as the underlying mutual funds change in value. As contract owners make exchange
transactions between the funds, the number of shares increases or decreases
accordingly. When money is deposited or withdrawn by a contract owner, shares
are correspondingly purchased or redeemed. The total market value of the funds
is equal to the Total investments of the variable account.
Accounts receivable, if applicable, represents an asset of the variable account
for money market fund shares purchased by contract owners and reinvested
dividend shares added to contract owners' accounts, but not yet added to Total
investments. Total investments plus Accounts receivable equal Total assets of
the variable account.
Accounts payable, if applicable, is a liability of the variable account for
money market fund shares redeemed by contract owners' but not yet deducted from
Total investments.
Total assets minus Accounts payable equals Contract owners' equity. A summary of
Contract owners' equity by funds series may be found on page 27. This summary
also includes investment return for the reporting period for each fund series.
STATEMENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
These statements begin on page 9 and present the financial activity of each
underlying mutual fund sub-account of the variable account, for the periods
indicated.
The Investment activity section shows income to the variable account for
reinvested dividends and capital gain distributions paid by the underlying
mutual funds. Also shown are the mortality, expense and administration charges
which are assessed through the daily unit value calculation and which represent
an expense to the variable account and its contract owners. This section also
shows the realized gain or loss as mutual fund shares are sold, and the change
in unrealized gain or loss, which represents the changes in market value of the
underlying fund shares.
The Equity transactions section illustrates the receipt of purchase payments, as
new contracts are sold or additional payments made to existing contracts. Also
presented are deductions from the variable account when the contract owners
withdraw money.
The sum of the above two sections represents the Net change in contract owners'
equity which when added to the beginning Contract owners' equity equals Contract
owners' equity at the end of the reporting period.
NOTES TO FINANCIAL STATEMENTS, beginning on page 23, provide further disclosures
about the variable account and its underlying contract provisions.
5
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--------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century: Short-Term Government Fund (ACSTGvt)
219,691 shares (cost $2,070,822) ................................................................. $ 2,021,157
American Century: Income & Growth Fund (ACIncGro)
340,292 shares (cost $10,049,436) ................................................................ 11,127,556
American Century: Growth Fund (ACGro)
558,296 shares (cost $14,669,510) ................................................................ 19,265,445
American Century: International Growth Fund (ACIntlGr)
220,737 shares (cost $3,027,367) ................................................................. 3,138,884
American Century: Ultra Fund (ACUltra)
695,591 shares (cost $23,619,064) ................................................................ 30,619,927
Delaware Group Delchester High-Yield Bond Fund, Inc. -
Delchester Fund Institutional Class (DeHYBd)
225,211 shares (cost $1,362,113) ................................................................. 1,004,443
Dreyfus A Bonds Plus, Inc. (DryABds)
140,504 shares (cost $1,982,302) ................................................................. 1,909,450
Dreyfus Appreciation Fund, Inc. (DryApp)
43,175 shares (cost $1,915,260) .................................................................. 2,026,620
Dreyfus Balanced Fund, Inc. (DryBal)
29,533 shares (cost $477,714) .................................................................... 466,029
Dreyfus S&P 500 Index Fund (Dry500Ix)
574,144 shares (cost $21,376,763) ................................................................ 24,458,520
The Dreyfus Premier Third Century Fund, Inc. - Class Z (Dry3dCen)
157,713 shares (cost $2,032,057) ................................................................. 2,334,155
Evergreen Income and Growth Fund - Class Y (EvIncGro)
62,725 shares (cost $1,361,211) .................................................................. 1,324,123
Federated High Yield Trust (FedHiYld)
75,829 shares (cost $621,341) .................................................................... 581,611
Federated Investment Series Funds, Inc. - Federated Bond Fund - Class F (FedBdFd)
180,973 shares (cost $1,731,204) ................................................................. 1,588,947
Fidelity Advisor Balanced Fund - Class T (FABal)
65,250 shares (cost $1,207,746) .................................................................. 1,166,009
Fidelity Advisor Equity Income Fund - Class T (FAEqInc)
77,052 shares (cost $2,083,799) .................................................................. 1,907,048
Fidelity Advisor Growth Opportunities Fund - Class T (FAGrOpp)
199,932 shares (cost $9,222,848) ................................................................. 8,894,973
</TABLE>
6
<PAGE> 6
<TABLE>
<S> <C>
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
317,524 shares (cost $3,731,135) ................................................................. 3,318,123
Fidelity Asset Manager(TM)(FidAsMgr)
307,025 shares (cost $5,480,903) ................................................................. 5,772,071
Fidelity Capital & Income Fund (FidCapInc)
96,632 shares (cost $903,758) .................................................................... 858,095
Fidelity Equity-Income Fund (FidEqInc)
260,547 shares (cost $12,657,553) ................................................................ 13,123,743
Fidelity Magellan(R)Fund (FidMgln)
307,414 shares (cost $33,699,543) ................................................................ 41,387,103
Fidelity Puritan(R)Fund (FidPurtn)
681,366 shares (cost $13,099,162) ................................................................ 12,836,927
Fidelity VIP - High Income Portfolio (FidVIPHI)
10,028 shares (cost $115,491) .................................................................... 100,681
Franklin Mutual Series Fund Inc. - Mutual Shares Fund - Class A (FranMutSer)
21,702 shares (cost $449,620) .................................................................... 411,478
Franklin Small Cap Growth Fund (FrSmCapGr)
255 shares (cost $12,183) ........................................................................ 12,499
INVESCO Dynamics Fund, Inc. (InvDynam)
316,818 shares (cost $8,440,396) ................................................................. 9,152,867
INVESCO Small Company Growth Fund (InvSmCoGr)
1,230 shares (cost $22,525) ...................................................................... 24,603
Janus Fund (JanFund)
508,983 shares (cost $19,972,745) ................................................................ 23,102,736
Janus Twenty Fund (Jan20Fd)
741,971 shares (cost $44,560,916) ................................................................ 57,294,980
Janus Worldwide Fund (JanWrldwde)
330,138 shares (cost $19,106,557) ................................................................ 25,829,980
Lazard Small Cap Portfolio - Open Shares (LazSmCap)
14,963 shares (cost $252,946) .................................................................... 256,911
MFS(R) Global Governments Fund - Class A (MFSGloGvt)
48,263 shares (cost $501,010) .................................................................... 456,571
Nationwide(R) Bond Fund - Class D (NWBdFd)
166,586 shares (cost $1,567,952) ................................................................. 1,475,949
Nationwide(R) Fund - Class D (NWFund)
245,309 shares (cost $7,529,352) ................................................................. 7,562,885
Nationwide(R) Growth Fund - Class D (NWGroFd)
182,402 shares (cost 2,933,762) .................................................................. 3,029,690
Nationwide(R) S&P 500 Index Fund - Service Class (NWIndxFd)
31,406 shares (cost $378,360) .................................................................... 397,918
Nationwide(R) Money Market Fund - Prime Shares (NWMyMkt)
13,509,143 shares (cost $13,509,143) ............................................................. 13,509,143
Nationwide(R) Intermediate U.S. Government Bond Fund - Class D(NWUSGvt)
37,207 shares (cost $366,551) .................................................................... 365,370
</TABLE>
(Continued)
7
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NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C>
Neuberger Berman Genesis Trust (NBGenesTr)
34,500 shares (cost $701,743) .................................................................... 833,176
Neuberger Berman Guardian Trust (NBGuardTr)
339,272 shares (cost $7,667,044) ................................................................. 6,368,143
Neuberger Berman Limited Maturity Bond Fund (NBLtdMat)
83,302 shares (cost $798,802) .................................................................... 774,712
Neuberger Berman Partners Fund (NBPartFd)
295,310 shares (cost $7,747,996) ................................................................. 7,037,226
Oppenheimer Global Fund - Class A (OppGlob)
219,635 shares (cost $10,890,859) ................................................................ 15,077,952
Phoenix - Oakhurst Balanced Fund Series - Class A (PhxBalFd)
51,595 shares (cost $873,407) .................................................................... 906,518
Prestige Balanced Fund - Class A (PrBal)
475 shares (cost $5,235) ......................................................................... 5,334
Prestige International Fund - Class A (PrInt)
4,858 shares (cost $57,272) ...................................................................... 58,099
Prestige Large Cap Growth Fund - Class A (PrLgCpGro)
7,333 shares (cost $112,700) ..................................................................... 115,488
Prestige Large Cap Value Fund - Class A (PrLgCpVal)
7,840 shares (cost $76,625) ...................................................................... 76,128
Prestige Small Cap Fund - Class A (PrSmCap)
22,163 shares (cost $281,987) .................................................................... 290,776
Strong Common Stock Fund, Inc. (StComStk)
59,094 shares (cost $1,448,376) .................................................................. 1,496,253
Strong Large Cap Growth Fund, Inc. (StTotRet)
130,913 shares (cost $5,119,155) ................................................................. 6,223,626
Templeton Foreign Fund - Class A (TemForFd)
518,293 shares (cost $5,365,028) ................................................................. 5,519,815
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
140,163 shares (cost $6,008,427) ................................................................. 7,261,843
Warburg Pincus Global Fixed - Income Fund - Common Shares (WPGlFxInc)
5,966 shares (cost $61,536) ...................................................................... 58,286
----------
Total investments ............................................................................. 386,218,595
Accounts receivable 54,538
----------
Total assets 386,273,133
ACCOUNTS PAYABLE 45,915
----------
CONTRACT OWNERS' EQUITY (NOTE 4) $ 386,227,218
===========
</TABLE>
See accompanying notes to financial statements.
--------------------------------------------------------------------------------
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NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACSTGVT ACINCGRO ACGRO
--------------------------- ----------------------- ------------------------ -------------------------
2000 1999 2000 1999 2000 1999 2000 1999
------------- ------------- ----------- ----------- ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ 1,470,897 1,403,793 59,651 74,419 48,054 47,124 -- --
Mortality, expense and
administration
charges (note 2)...... (2,436,178) (1,648,158) (13,194) (19,333) (70,399) (51,320) (124,781) (93,312)
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Net investment
activity............ (965,281) (244,365) 46,457 55,086 (22,345) (4,196) (124,781) (93,312)
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Proceeds from mutual
fund shares sold ..... 51,167,144 32,701,634 251,310 303,134 1,212,877 1,488,052 1,921,221 869,749
Cost of mutual fund
shares sold .......... (42,539,530) (28,477,576) (257,940) (305,879) (1,019,105) (1,292,642) (1,264,147) (560,410)
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Realized gain (loss)
on investments...... 8,627,614 4,224,058 (6,630) (2,745) 193,772 195,410 657,074 309,339
Change in unrealized
gain (loss) on
investments .......... (13,876,264) 18,506,589 1,914 (73,896) (626,775) 494,871 541,222 1,161,886
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Net gain (loss) on
investments......... (5,248,650) 22,730,647 (4,716) (76,641) (433,003) 690,281 1,198,296 1,471,225
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Reinvested capital
gains................. 1,263,429 1,843,360 -- -- -- 18,019 -- --
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. (4,950,502) 24,329,642 41,741 (21,555) (455,348) 704,104 1,073,515 1,377,913
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... 54,373,432 42,799,248 42,508 102,145 1,538,557 1,584,257 704,407 877,500
Transfers between funds. -- -- 6,147 (33,159) (378,020) (23,274) 978,536 255,772
Redemptions............. (22,991,765) (11,111,149) (98,243) (100,652) (541,025) (114,527) (1,812,852) (659,730)
Annuity benefits........ (13,399) (13,966) 310 (474) -- -- (10,074) (7,784)
Annual contract
maintenance charge
(note 2) ............. (184,838) (129,609) (921) (966) (5,198) (3,537) (12,815) (11,047)
Contingent deferred
sales charges
(note 2).............. (340,026) (157,441) (1,265) (2,154) (12,543) (2,150) (9,771) (4,114)
Adjustments to maintain
reserves.............. 58,534 (47,913) 454 (790) 233 1,306 10,143 5,455
Net equity ------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
transactions...... 30,901,938 31,339,170 (51,010) (36,050) 602,004 1,442,075 (152,426) 456,052
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Net change in contract
owners' equity......... 25,951,436 55,668,812 (9,269) (57,605) 146,656 2,146,179 921,089 1,833,965
Contract owners' equity
beginning of period.... 360,275,782 227,225,953 2,030,888 3,037,422 10,981,114 7,003,742 18,304,406 13,480,704
------------ ------------ ---------- ---------- ----------- ---------- ----------- -----------
Contract owners' equity
end of period.......... $386,227,218 282,894,765 2,021,619 2,979,817 11,127,770 9,149,921 19,225,495 15,314,669
============ ============ ========== ========== =========== ========== =========== ===========
</TABLE>
(Continued)
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<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ACINTLGR ACULTRA DEHYBD DRYABDS
--------------------- ------------------------- ------------------------ ------------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- ---------- ------------ ------------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ -- -- -- -- 58,365 61,674 48,324 53,456
Mortality, expense and
administration
charges (note 2)...... (18,271) (6,546) (199,101) (131,435) (6,906) (7,826) (12,197) (14,101)
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Net investment
activity............ (18,271) (6,546) (199,101) (131,435) 51,459 53,848 36,127 39,355
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Proceeds from mutual
fund shares sold ..... 824,647 166,677 1,691,383 1,190,278 46,754 143,280 333,859 378,283
Cost of mutual fund
shares sold .......... (554,567) (154,166) (1,041,250) (876,891) (59,923) (153,421) (366,501) (389,166)
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Realized gain (loss)
on investments...... 270,080 12,511 650,133 313,387 (13,169) (10,141) (32,642) (10,883)
Change in unrealized
gain (loss) on
investments .......... (481,039) 57,004 (1,835,361) 2,040,643 (132,319) (47,802) 57,932 (41,880)
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Net gain (loss) on
investments......... (210,959) 69,515 (1,185,228) 2,354,030 (145,488) (57,943) 25,290 (52,763)
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Reinvested capital
gains................. 4,595 59 -- -- -- -- -- --
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. (224,635) 63,028 (1,384,329) 2,222,595 (94,029) (4,095) 61,417 (13,408)
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... 612,797 184,143 4,088,059 3,623,692 11,443 215,490 207,445 311,482
Transfers between funds. 796,749 59,204 (105,109) (110,001) (8,543) (106,988) (185,117) (101,699)
Redemptions............. (52,562) (29,111) (1,758,569) (640,731) (35,122) (33,336) (105,093) (121,205)
Annuity benefits........ -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............. (1,668) (810) (13,611) (10,012) (282) (319) (627) (775)
Contingent deferred
sales charges
(note 2).............. (946) (832) (30,764) (10,559) (367) (736) (1,767) (3,778)
Adjustments to maintain
reserves.............. 23 12 669 243 286 1 57 390
Net equity ---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
transactions...... 1,354,393 212,606 2,180,675 2,852,632 (32,585) 74,112 (85,102) 84,415
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity......... 1,129,758 275,634 796,346 5,075,227 (126,614) 70,017 (23,685) 71,007
Contract owners' equity
beginning of period.... 2,009,150 887,916 29,824,155 17,486,224 1,133,963 1,095,862 1,933,180 2,092,501
---------- --------- ----------- ----------- ---------- ---------- ---------- ----------
Contract owners' equity
end of period.......... $3,138,908 1,163,550 30,620,501 22,561,451 1,007,349 1,165,879 1,909,495 2,163,508
========== ========= =========== =========== ========== ========== ========== ==========
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
DRYAPP DRYBAL DRY500IX DRY3DCEN
------------------------- -------------------- -------------------------- -------------------------
2000 1999 2000 1999 2000 1999 2000 1999
------------ ------------ --------- --------- ------------ ------------ ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ 254 -- 5,197 2,924 -- -- -- --
Mortality, expense and
administration
charges (note 2)...... (13,926) (8,483) (2,933) (1,399) (151,797) (98,999) (13,616) (8,121)
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Net investment
activity............ (13,672) (8,483) 2,264 1,525 (151,797) (98,999) (13,616) (8,121)
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Proceeds from mutual
fund shares sold ..... 517,662 171,326 47,372 63,485 3,227,367 695,135 113,801 191,463
Cost of mutual fund
shares sold .......... (444,034) (160,395) (48,216) (66,036) (2,187,759) (421,953) (90,859) (142,060)
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Realized gain (loss)
on investments...... 73,628 10,931 (844) (2,551) 1,039,608 273,182 22,942 49,403
Change in unrealized
gain (loss) on
investments .......... (28,345) 60,594 (1,291) 14,610 (1,193,492) 1,458,874 27,105 85,976
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Net gain (loss) on
investments......... 45,283 71,525 (2,135) 12,059 (153,884) 1,732,056 50,047 135,379
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Reinvested capital
gains................. 17,750 89 -- -- -- -- -- --
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. 49,361 63,131 129 13,584 (305,681) 1,633,057 36,431 127,258
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... 271,824 655,607 127,842 123,403 3,778,644 3,892,627 286,901 229,603
Transfers between funds. (399,965) 344,703 2,639 (33,208) (601,153) 1,220,568 158,840 34,507
Redemptions............. (49,909) (43,594) (11,289) (1,908) (2,165,183) (478,122) (108,427) (38,962)
Annuity benefits........ -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............. (1,339) (332) (296) (97) (15,987) (9,762) (1,342) (1,005)
Contingent deferred
sales charges
(note 2).............. (1,007) (658) (468) (43) (45,337) (6,831) (2,645) (143)
Adjustments to maintain
reserves.............. 1,302 623 246 103 549 173 63 32
Net equity ---------- ---------- -------- -------- ----------- ----------- ---------- ----------
transactions...... (179,094) 956,349 118,674 88,250 951,533 4,618,653 333,390 224,032
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Net change in contract
owners' equity......... (129,733) 1,019,480 118,803 101,834 645,852 6,251,710 369,821 351,290
Contract owners' equity
beginning of period.... 2,157,476 717,296 347,446 159,816 23,813,192 12,445,816 1,964,378 1,077,131
---------- ---------- -------- -------- ----------- ----------- ---------- ----------
Contract owners' equity
end of period.......... $2,027,743 1,736,776 466,249 261,650 24,459,044 18,697,526 2,334,199 1,428,421
========== ========== ======== ======== =========== =========== ========== ==========
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
EVINCGRO FEDHIYLD FEDBDFD FABAL
------------------------- -------------------- ------------------------ ----------------------
2000 1999 2000 1999 2000 1999 2000 1999
------------ ----------- --------- --------- ----------- ----------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ 32,995 33,415 27,513 19,187 62,298 46,769 13,786 9,239
Mortality, expense and
administration
charges (note 2)...... (8,904) (8,534) (3,567) (2,924) (10,195) (8,512) (7,372) (4,400)
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Net investment
activity............ 24,091 24,881 23,946 16,263 52,103 38,257 6,414 4,839
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Proceeds from mutual
fund shares sold ..... 112,542 148,370 209,915 349,778 142,709 291,381 342,388 85,849
Cost of mutual fund
shares sold .......... (92,394) (135,285) (237,972) (349,336) (163,256) (296,303) (362,300) (88,753)
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Realized gain (loss)
on investments...... 20,148 13,085 (28,057) 442 (20,547) (4,922) (19,912) (2,904)
Change in unrealized
gain (loss) on
investments .......... (100,953) 135,817 (7,436) (11,327) (20,833) (67,303) (7,628) 28,139
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Net gain (loss) on
investments......... (80,805) 148,902 (35,493) (10,885) (41,380) (72,225) (27,540) 25,235
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Reinvested capital
gains................. -- -- -- -- -- -- 3,657 1,248
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. (56,714) 173,783 (11,547) 5,378 10,723 (33,968) (17,469) 31,322
----------- ---------- -------- -------- ---------- ---------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... 39,317 112,581 174,691 46,713 167,218 151,684 244,887 267,544
Transfers between funds. (47,299) (123,121) (67,729) (95,703) (75,873) 8,212 (377,444) 51,630
Redemptions............. (28,824) (24,330) (11,951) (2,783) (50,129) (44,611) (13,261) (18,838)
Annuity benefits........ -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............. (364) (368) (170) (70) (466) (322) (916) (605)
Contingent deferred
sales charges
(note 2).............. (83) (619) (130) (57) (1,056) (298) (296) (397)
Adjustments to maintain
reserves.............. 11 7 231 208 107 84 22 11
Net equity ----------- ---------- -------- -------- ---------- ---------- ---------- --------
transactions...... (37,242) (35,850) 94,942 (51,692) 39,801 114,749 (147,008) 299,345
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Net change in contract
owners' equity......... (93,956) 137,933 83,395 (46,314) 50,524 80,781 (164,477) 330,667
Contract owners' equity
beginning of period.... 1,418,098 1,281,506 498,493 489,378 1,549,200 1,205,464 1,330,505 465,370
----------- ---------- -------- -------- ---------- ---------- ---------- --------
Contract owners' equity
end of period.......... $ 1,324,142 1,419,439 581,888 443,064 1,599,724 1,286,245 1,166,028 796,037
=========== ========== ======== ======== ========== ========== ========== ========
</TABLE>
12
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FAEQINC FAGROPP FAHIYLD FIDASMGR
------------------------ ------------------------ ------------------------ ------------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ 11,272 5,675 -- -- 126,577 105,957 88,769 72,908
Mortality, expense and
administration
charges (note 2)...... (12,290) (11,577) (56,136) (51,509) (19,554) (18,748) (36,946) (28,715)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net investment
activity............ (1,018) (5,902) (56,136) (51,509) 107,023 87,209 51,823 44,193
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Proceeds from mutual
fund shares sold ..... 301,674 215,431 1,400,257 400,119 303,305 378,947 539,709 231,765
Cost of mutual fund
shares sold .......... (300,119) (160,539) (1,184,879) (286,848) (348,850) (406,050) (470,247) (203,173)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Realized gain (loss)
on investments...... 1,555 54,892 215,378 113,271 (45,545) (27,103) 69,462 28,592
Change in unrealized
gain (loss) on
investments .......... (107,996) 72,927 (638,649) 424,150 (200,888) 115,741 60,229 149,294
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on
investments......... (106,441) 127,819 (423,271) 537,421 (246,433) 88,638 129,691 177,886
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Reinvested capital
gains................. 783 11,723 17,925 4,369 -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. (106,676) 133,640 (461,482) 490,281 (139,410) 175,847 181,514 222,079
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... 145,081 228,052 1,532,104 1,311,991 605,331 242,338 479,134 585,834
Transfers between funds. (121,894) (78,893) (907,419) (133,213) (40,695) (11,182) (273,050) (20,693)
Redemptions............. (52,204) (34,250) (583,792) (225,760) (45,863) (162,549) (216,311) (131,116)
Annuity benefits........ -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............. (1,437) (1,235) (5,315) (4,459) (1,238) (1,120) (2,255) (1,997)
Contingent deferred
sales charges
(note 2).............. (1,103) (959) (10,495) (2,569) (977) (775) (2,398) (3,131)
Adjustments to maintain
reserves.............. 23 17 123 67 134 (2,700) 117 20
Net equity ---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
transactions...... (31,534) 112,732 25,206 946,057 516,692 64,012 (14,763) 428,917
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity......... (138,210) 246,372 (436,276) 1,436,338 377,282 239,859 166,751 650,996
Contract owners' equity
beginning of period.... 2,045,287 1,708,319 9,331,374 7,285,888 2,940,818 2,800,745 5,605,426 4,144,138
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Contract owners' equity
end of period.......... $1,907,077 1,954,691 8,895,098 8,722,226 3,318,100 3,040,604 5,772,177 4,795,134
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FIDCAPINC FIDEQINC FIDMGIN FIDPURTN
----------------------- ------------------------- ------------------------- --------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------- ----------- ----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ 37,944 47,484 114,571 111,183 20,799 49,825 193,343 247,570
Mortality, expense and
administration
charges (note 2)...... (5,981) (7,425) (91,520) (110,200) (259,511) (173,807) (86,052) (96,154)
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Net investment
activity............ 31,963 40,059 23,051 983 (238,712) (123,982) 107,291 151,416
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Proceeds from mutual
fund shares sold ..... 114,072 218,262 3,073,710 2,053,039 2,506,008 334,245 2,594,570 1,502,440
Cost of mutual fund
shares sold .......... (122,948) (194,759) (2,099,579) (1,167,475) (1,605,264) (249,024) (2,322,734) (1,250,994)
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Realized gain (loss)
on investments...... (8,876) 23,503 974,131 885,564 900,744 85,221 271,836 251,446
Change in unrealized
gain (loss) on
investments........... (32,038) 60,510 (1,889,205) 882,904 (1,415,476) 1,777,213 (448,289) 183,032
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Net gain (loss) on
investments......... (40,914) 84,013 (915,074) 1,768,468 (514,732) 1,862,434 (176,453) 434,478
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Reinvested capital
gains................. -- 10,037 354,217 235,009 840,869 1,557,582 -- --
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. (8,951) 134,109 (537,806) 2,004,460 87,425 3,296,034 (69,162) 585,894
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... -- -- 458,946 696,818 5,626,485 4,350,473 1,175,078 1,686,657
Transfers between funds. (1,317) (123,064) (1,117,694) (668,130) (1,341,022) 1,535,091 (2,084,621) (988,853)
Redemptions............. (104,374) (85,510) (1,795,932) (1,419,823) (1,786,370) (659,296) (892,800) (485,929)
Annuity benefits........ 6 (999) (2,324) (2,765) -- -- -- --
Annual contract
maintenance charge
(note 2) ............. (1,075) (1,309) (10,896) (12,432) (15,144) (11,080) (4,795) (4,976)
Contingent deferred
sales charges
(note 2).............. (102) (138) (5,570) (7,716) (30,044) (13,050) (9,985) (7,639)
Adjustments to maintain
reserves.............. 325 (988) 89 197 764 317 211 57
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Net equity
transactions...... (106,537) (212,008) (2,473,381) (1,413,851) 2,454,669 5,202,455 (1,816,912) 199,317
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Net change in contract
owners' equity......... (115,488) (77,899) (3,011,187) 590,609 2,542,094 8,498,489 (1,886,074) 785,211
Contract owners' equity
beginning of period.... 973,878 1,211,457 16,135,005 17,076,425 38,844,976 22,752,524 14,723,211 14,377,391
--------- ---------- ---------- ----------- ----------- ---------- ----------- -----------
Contract owners' equity
end of period.......... $ 858,390 1,133,558 13,123,818 17,667,034 41,387,070 31,251,013 12,837,137 15,162,602
========= ========== ========== =========== =========== ========== =========== ===========
</TABLE>
14
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPHI FRANMUTSER FRSMCAPGR INVDYNAM
----------------------- ----------------------- ----------------------- -----------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ 7,055 11,245 7,426 425 -- -- -- --
Mortality, expense and
administration
charges (note 2) ..... (670) (824) (2,337) (1,572) (5) -- (44,715) (1,348)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net investment
activity ........... 6,385 10,421 5,089 (1,147) (5) -- (44,715) (1,348)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Proceeds from mutual
fund shares sold ..... 702 1,523 4,816 52,508 5 -- 1,822,921 48,778
Cost of mutual fund
shares sold .......... (687) (1,406) (4,634) (55,928) (5) -- (1,259,901) (42,593)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Realized gain (loss)
on investments ..... 15 117 182 (3,420) -- -- 563,020 6,185
Change in unrealized
gain (loss) on
investments........... (12,218) (2,178) (30,729) 34,422 316 -- (25,522) 37,999
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on
investments ........ (12,203) (2,061) (30,547) 31,002 316 -- 537,498 44,184
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Reinvested capital
gains................. -- 420 23,633 4,316 -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. (5,818) 8,780 (1,825) 34,171 311 -- 492,783 42,836
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ...... -- -- 123,282 43,270 12,188 -- 2,259,224 9,348
Transfers between funds. -- (641) 534 55,332 -- -- 3,294,346 471,056
Redemptions ............ -- -- (1,214) (25,128) -- -- (430,244) (1,379)
Annuity benefits ....... -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............. (25) (55) (230) (197) -- -- (1,225) (20)
Contingent deferred
sales charges
(note 2).............. -- -- -- (251) -- -- (6,727) --
Adjustments to maintain
reserves ............. 9 15 207 119 -- -- 4,626 100
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net equity
transactions ..... (16) (681) 122,579 73,145 12,188 -- 5,120,000 479,105
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity ......... (5,834) 8,099 120,754 107,316 12,499 -- 5,612,783 521,941
Contract owners' equity
beginning of period .... 106,516 121,339 290,896 185,993 -- -- 3,543,551 --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Contract owners' equity
end of period .......... $ 100,682 129,438 411,650 293,309 12,499 -- 9,156,334 521,941
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
INSMCOGR JANFUND JAN20FD JANWRLDWDE
----------------------- ------------------------- ------------------------- --------------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------- ----------- ----------- ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ... $ -- -- -- -- -- -- -- --
Mortality, expense and
administration
charges (note 2)...... (7) -- (136,864) (51,053) (366,310) (158,983) (154,396) (57,130)
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Net investment
activity............ (7) -- (136,864) (51,053) (366,310) (158,983) (154,396) (57,130)
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Proceeds from mutual
fund shares sold ..... 7 -- 1,864,956 369,425 2,315,246 1,506,844 1,145,895 327,649
Cost of mutual fund
shares sold .......... (7) -- (1,069,555) (273,063) (960,481) (763,583) (567,706) (228,166)
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Realized gain (loss)
on investments...... -- -- 795,401 96,362 1,354,765 743,261 578,189 99,483
Change in unrealized
gain (loss) on
investments........... 2,078 -- (285,666) 1,263,026 (5,799,051) 2,572,942 (288,344) 969,327
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on
investments......... 2,078 -- 509,735 1,359,388 (4,444,286) 3,316,203 289,845 1,068,810
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Reinvested capital
gains................. -- -- -- -- -- -- -- --
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .. 2,071 -- 372,871 1,308,335 (4,810,596) 3,157,220 135,449 1,011,680
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners....... 11,125 -- 3,813,448 1,614,853 10,457,668 7,526,570 4,259,877 2,180,225
Transfers between funds. -- -- 2,613,669 1,523,345 1,391,232 4,105,340 3,306,460 632,596
Redemptions............. -- -- (1,038,860) (296,468) (2,093,700) (995,102) (880,179) (246,311)
Annuity benefits........ -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............. -- -- (9,150) (3,807) (27,945) (9,460) (10,187) (4,678)
Contingent deferred
sales charges
(note 2).............. -- -- (18,244) (4,352) (44,497) (17,878) (14,341) (2,764)
Adjustments to maintain
reserves.............. (898) -- 445 127 984 385 429 96
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Net equity
transactions...... 10,227 -- 5,361,308 2,833,698 9,683,742 10,609,855 6,662,059 2,559,164
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity......... 12,298 -- 5,734,179 4,142,033 4,873,146 13,767,075 6,797,508 3,570,844
Contract owners' equity
beginning of period.... -- -- 17,368,953 6,097,880 52,422,689 16,416,311 19,032,832 6,997,578
-------- ------- ----------- ----------- ----------- ----------- ----------- -----------
Contract owners' equity
end of period.......... $ 12,298 -- 23,103,132 10,239,913 57,295,835 30,183,386 25,830,340 10,568,422
======== ======= =========== =========== =========== =========== =========== ===========
</TABLE>
16
<PAGE> 16
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
LAZSMCAP MFSGLOGVT NWBDFD NWFUND
----------------------- ----------------------- ------------------------ ---------------------
2000 1999 2000 1999 2000 1999 2000 1999
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..... $ -- -- -- -- 50,531 48,070 31,675 31,376
Mortality, expense and
administration
charges (note 2) ....... (1,469) (172) (3,108) (4,439) (10,038) (10,745) (51,224) (52,710)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net investment
activity ............. (1,469) (172) (3,108) (4,439) 40,493 37,325 (19,549) (21,334)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Proceeds from mutual
fund shares sold ....... 8,501 67,458 131,289 169,504 223,177 413,628 1,843,594 609,937
Cost of mutual fund
shares sold ............ (9,990) (64,794) (154,986) (183,145) (236,201) (410,023) (1,650,385) (344,267)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Realized gain (loss)
on investments ....... (1,489) 2,664 (23,697) (13,641) (13,024) 3,605 193,209 265,670
Change in unrealized
gain (loss) on
investments. ........... 10,169 1,230 25,655 (8,548) (261) (93,043) 2,143 348,038
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on
investments .......... 8,680 3,894 1,958 (22,189) (13,285) (89,438) 195,352 613,708
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Reinvested capital
gains.. ................ -- -- -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .... 7,211 3,722 (1,150) (26,628) 27,208 (52,113) 175,803 592,374
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ........ 48,220 873 9,982 49,439 24,108 214,006 888,148 1,774,689
Transfers between funds... 20,835 40,118 (26,263) (60,571) (35,483) (94,023) (1,087,066) (291,938)
Redemptions .............. (1,306) -- (37,872) (95,095) (111,782) (113,282) (957,287) (466,227)
Annuity benefits ......... -- -- (1,070) (1,255) -- (18) -- (152)
Annual contract
maintenance charge
(note 2) ............... (14) -- (532) (568) (772) (610) (6,747) (4,928)
Contingent deferred
sales charges
(note 2)................ (30) -- (112) (1,097) (657) (1,076) (8,982) (2,673)
Adjustments to maintain
reserves ............... 118 (332) (734) (301) (570) (2,001) 2,398 (18,975)
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net equity
transactions ....... 67,823 40,659 (56,601) (109,448) (125,156) 2,996 (1,169,536) 989,796
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity .......... 75,034 44,381 (57,751) (136,076) (97,948) (49,117) (993,733) 1,582,170
Contract owners' equity
beginning of period ..... 181,986 470 517,994 756,404 1,573,323 1,601,069 8,556,283 7,462,477
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
Contract owners' equity
end of period ........... $ 257,020 44,851 460,243 620,328 1,475,375 1,551,952 7,562,550 9,044,647
========== ========== ========== ========== ========== ========== ========== ==========
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NWGROFD NWINDXFD NWMYMKT NWUSGVT
------------------------- ------------------- ------------------------- ---------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- ----------- --------- ------- ----------- ----------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..... $ -- -- 873 323 355,455 241,981 11,753 13,679
Mortality, expense and
administration
charges (note 2) ....... (20,066) (23,265) (1,916) (434) (85,136) (71,944) (2,534) (3,402)
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Net investment
activity ............. (20,066) (23,265) (1,043) (111) 270,319 170,037 9,219 10,277
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Proceeds from mutual
fund shares sold ....... 639,187 555,632 11,057 424 10,725,678 9,156,260 216,922 155,670
Cost of mutual fund
shares sold ............ (540,321) (385,961) (9,520) (397) (10,725,678) (9,156,260) (231,249) (160,869)
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Realized gain (loss)
on investments ....... 98,866 169,671 1,537 27 -- -- (14,327) (5,199)
Change in unrealized
gain (loss) on
investments ............ (273,546) 171,460 (1,572) 8,490 -- -- 19,160 (19,534)
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Net gain (loss) on
investments .......... (174,680) 341,131 (35) 8,517 -- -- 4,833 (24,733)
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Reinvested capital
gains .................. -- -- -- -- -- -- -- --
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .... (194,746) 317,866 (1,078) 8,406 270,319 170,037 14,052 (14,456)
----------- ----------- --------- ------- ----------- ----------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ........ 278,482 247,760 159,135 79,272 4,061,264 3,329,931 15,027 120,346
Transfers between funds .. (343,707) 7,182 33,861 10,481 (2,952,378) (2,505,346) (81,496) (85,855)
Redemptions .............. (254,822) (522,128) (4,761) -- (2,130,512) (1,480,695) (21,021) (21,503)
Annuity benefits ......... -- (141) -- -- (247) (377) -- --
Annual contract
maintenance charge
(note 2) ............... (2,517) (2,435) (16) -- (6,241) (5,379) (288) (196)
Contingent deferred
sales charges
(note 2)................ (1,647) (2,265) (183) -- (32,659) (39,548) (631) (193)
Adjustments to maintain
reserves ............... (1,275) (17,523) 148 37 19,042 (15,441) (1) (17)
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Net equity
transactions ....... (325,486) (289,550) 188,184 89,790 (1,041,731) (716,855) (88,410) 12,582
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Net change in contract
owners' equity .......... (520,232) 28,316 187,106 98,196 (771,412) (546,818) (74,358) (1,874)
Contract owners' equity
beginning of period ..... 3,549,974 3,543,989 210,947 -- 14,299,585 11,504,938 439,725 517,836
----------- ----------- --------- ------- ----------- ----------- --------- ---------
Contract owners' equity
end of period ........... $ 3,029,742 3,572,305 398,053 98,196 13,528,173 10,958,120 365,367 515,962
=========== =========== ========= ======= =========== =========== ========= =========
</TABLE>
18
<PAGE> 18
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NBGENESTR NBGUARDTR NBLTDMAT NBPARTFD
----------------------- ------------------------ --------------------- -----------------------
2000 1999 2000 1999 2000 1999 2000 1999
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..... $ -- -- 13,874 24,150 34,484 35,262 -- --
Mortality, expense and
administration
charges (note 2) ....... (4,870) (4,507) (43,466) (48,298) (7,094) (7,792) (48,276) (58,958)
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Net investment
activity ............. (4,870) (4,507) (29,592) (24,148) 27,390 27,470 (48,276) (58,958)
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Proceeds from mutual
fund shares sold ....... 121,923 225,584 1,398,346 1,440,182 726,080 197,131 1,573,674 1,592,623
Cost of mutual fund
shares sold ............ (124,466) (269,243) (2,029,349) (1,451,840) (773,488) (202,120) (1,954,655) (1,450,085)
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Realized gain (loss)
on investments ....... (2,543) (43,659) (631,003) (11,658) (47,408) (4,989) (380,981) 142,538
Change in unrealized
gain (loss) on
investments............. 97,143 69,803 708,414 1,031,074 25,157 (27,751) 293,381 966,907
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Net gain (loss) on
investments .......... 94,600 26,144 77,411 1,019,416 (22,251) (32,740) (87,600) 1,109,445
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Reinvested capital
gains................... -- -- -- -- -- -- -- --
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .... 89,730 21,637 47,819 995,268 5,139 (5,270) (135,876) 1,050,487
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ........ 62,982 142,453 806,436 595,130 12,075 644,631 678,312 765,461
Transfers between funds .. 28,278 (58,864) (1,128,597) (1,243,768) (645,399) (108,836) (1,432,752) (1,762,703)
Redemptions .............. (24,769) (39,680) (342,219) (188,576) (46,591) (20,192) (319,217) (190,795)
Annuity benefits ......... -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............... (427) (271) (2,595) (3,100) (404) (442) (4,438) (5,517)
Contingent deferred
sales charges
(note 2)................ (741) (793) (6,460) (2,196) (492) (31) (6,296) (3,016)
Adjustments to maintain
reserves ............... 832 318 6,324 96 5,025 146 131 96
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Net equity
transactions ....... 66,155 43,163 (667,111) (842,414) (675,786) 515,276 (1,084,260) (1,196,474)
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Net change in contract
owners' equity .......... 155,885 64,800 (619,292) 152,854 (670,647) 510,006 (1,220,136) (145,987)
Contract owners' equity
beginning of period...... 677,694 625,721 6,991,351 7,499,816 1,450,390 981,318 8,257,499 9,328,976
--------- ----------- ---------- ----------- --------- --------- ---------- ----------
Contract owners' equity
end of period ........... $ 833,579 690,521 6,372,059 7,652,670 779,743 1,491,324 7,037,363 9,182,989
========= =========== ========== =========== ========= ========= ========== ==========
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
OPPGLOB PHXBALFD PRBAL PRINT
------------------------- ------------------------- ----------------- ---------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- ----------- ----------- ----------- ------- ------- ----------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..... $ -- -- 5,117 8,082 55 -- 268 17
Mortality, expense and
administration
charges (note 2) ....... (90,498) (49,189) (6,568) (5,439) (29) -- (370) (16)
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Net investment
activity ............. (90,498) (49,189) (1,451) 2,643 26 -- (102) 1
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Proceeds from mutual
fund shares sold ....... 694,710 1,279,030 316,282 29,956 273 -- 3,864 3,183
Cost of mutual fund
shares sold ............ (450,227) (1,146,095) (303,427) (27,820) (273) -- (3,674) (3,139)
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Realized gain (loss)
on investments ....... 244,483 132,935 12,855 2,136 -- -- 190 44
Change in unrealized
gain (loss) on
investments ............ 975,311 872,874 (21,235) 24,121 3 15 (2,578) (24)
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Net gain (loss) on
investments .......... 1,219,794 1,005,809 (8,380) 26,257 3 15 (2,388) 20
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Reinvested capital
gains .................. -- -- -- -- -- -- -- --
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .... 1,129,296 956,620 (9,831) 28,900 29 15 (2,490) 21
----------- ----------- ----------- ----------- ------- ------- ----------- -------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ........ 1,479,494 551,439 92,589 111,727 1,470 636 3,126 2,495
Transfers between funds .. 1,406,230 (456,002) (79,209) 49,992 -- -- 5,189 (1,811)
Redemptions .............. (805,531) (235,361) (156,632) (19,719) -- -- -- --
Annuity benefits ......... -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............... (4,635) (3,131) (692) (529) (7) -- (16) --
Contingent deferred
sales charges
(note 2)................ (12,544) (3,967) (947) (493) -- -- -- --
Adjustments to maintain
reserves ............... (1,664) 47 5,549 21 5 5 30 (33)
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Net equity
transactions ....... 2,061,350 (146,975) (139,342) 140,999 1,468 641 8,329 651
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Net change in contract
owners' equity .......... 3,190,646 809,645 (149,173) 169,899 1,497 656 5,839 672
Contract owners' equity
beginning of period...... 11,886,726 7,265,693 1,061,196 795,875 3,837 -- 52,287 1,816
----------- ----------- ----------- ----------- ------- ------- ----------- -------
Contract owners' equity
end of period ........... $15,077,372 8,075,338 912,023 965,774 5,334 656 58,126 2,488
=========== =========== =========== =========== ======= ======= =========== =======
</TABLE>
20
<PAGE> 20
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRLGCPGRO PRLGCPVAL PRSMCAP STCOMSTK
--------------------- -------------------- ------------------------- -------------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..... $ -- -- 453 -- -- 1 -- --
Mortality, expense and
administration
charges (note 2) ....... (579) -- (321) -- (1,542) (4) (8,999) (610)
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Net investment
activity ............. (579) -- 132 -- (1,542) (3) (8,999) (610)
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Proceeds from mutual
fund shares sold ....... 14,251 -- 186 -- 45,462 780 133,615 1,024
Cost of mutual fund
shares sold ............ (11,012) -- (207) -- (36,558) (784) (118,434) (992)
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Realized gain (loss)
on investments ....... 3,239 -- (21) -- 8,904 (4) 15,181 32
Change in unrealized
gain (loss) on
investments ............ 85 -- (438) -- (985) 52 (12,825) 17,932
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Net gain (loss) on
investments .......... 3,324 -- (459) -- 7,919 48 2,356 17,964
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Reinvested capital
gains .................. -- -- -- -- -- -- -- 493
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .... 2,745 -- (327) -- 6,377 45 (6,643) 17,847
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ........ 68,350 -- 16,119 -- 83,799 705 366,845 19,696
Transfers between funds .. 24,677 -- 59,294 -- 103,592 (247) 139,739 203,649
Redemptions .............. -- -- -- -- (1,647) -- (7,467) --
Annuity benefits ......... -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............... (11) -- (2) -- (15) -- (144) (17)
Contingent deferred
sales charges
(note 2) ............... -- -- -- -- -- -- (26) --
Adjustments to maintain
reserves ............... 30 -- 22 -- 118 12 730 44
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Net equity
transactions ....... 93,046 -- 75,433 -- 185,847 470 499,677 223,372
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Net change in contract
owners' equity........... 95,791 -- 75,106 -- 192,224 515 493,034 241,219
Contract owners' equity
beginning of period ..... 19,721 -- 1,047 -- 98,664 466 1,003,874 --
----------- ------- ----------- ------ ----------- ----------- ----------- -----------
Contract owners' equity
end of period ........... $ 115,512 -- 76,153 -- 290,888 981 1,496,908 241,219
=========== ======= =========== ====== =========== =========== =========== ===========
</TABLE>
(Continued)
21
<PAGE> 21
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
STTOTRET TEMFORFD WPEMGRO WPGIFXINC
----------------------- ------------------------- ------------------------- ------------------
2000 1999 2000 1999 2000 1999 2000 1999
----------- --------- ----------- ----------- ----------- ----------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ..... $ -- -- -- (1) -- -- 2,166 374
Mortality, expense and
administration
charges (note 2) ....... (37,517) (15,981) (35,926) (26,756) (43,798) (28,593) (381) (614)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Net investment
activity ............. (37,517) (15,981) (35,926) (26,757) (43,798) (28,593) 1,785 (240)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Proceeds from mutual
fund shares sold ....... 526,453 76,413 2,134,769 1,180,288 682,030 1,122,607 12,161 247,105
Cost of mutual fund
shares sold ............ (305,883) (58,483) (1,925,508) (1,279,897) (423,169) (957,319) (13,051) (247,746)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Realized gain (loss)
on investments ....... 220,570 17,930 209,261 (99,609) 258,861 165,288 (890) (641)
Change in unrealized
gain (loss) on
investments ............ (176,773) 335,152 (511,414) 939,059 (112,360) 34,316 (151) (2,549)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Net gain (loss) on
investments .......... 43,797 353,082 (302,153) 839,450 146,501 199,604 (1,041) (3,190)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Reinvested capital
gains .................. -- -- -- (4) -- -- -- --
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Net increase
(decrease) in
contract owners'
equity resulting
from operations .... 6,280 337,101 (338,079) 812,689 102,703 171,011 744 (3,430)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
EQUITY TRANSACTIONS:
Purchase payments
received from
contract owners ........ 757,425 584,068 642,071 276,461 551,188 411,043 11,274 22,086
Transfers between funds .. 1,018,452 108,365 (375,043) (407,174) 942,887 (857,904) (10,829) (130,278)
Redemptions .............. (440,713) (145,015) (267,866) (153,850) (295,460) (297,964) (8) (5)
Annuity benefits ......... -- -- -- -- -- -- -- --
Annual contract
maintenance charge
(note 2) ............... (2,042) (939) (2,294) (2,065) (2,980) (2,570) (90) (58)
Contingent deferred
sales charges
(note 2) ............... (5,483) (1,076) (3,817) (2,063) (5,391) (2,362) -- --
Adjustments to maintain
reserves ............... 139 27 37 113 94 11 22 45
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Net equity
transactions ....... 1,327,778 545,430 (6,912) (288,578) 1,190,338 (749,746) 369 (108,210)
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Net change in contract
owners' equity .......... 1,334,058 882,531 (344,991) 524,111 1,293,041 (578,735) 1,113 (111,640)
Contract owners' equity
beginning of period ..... 4,889,682 2,024,780 5,864,856 4,069,618 5,968,882 4,992,592 57,203 149,963
----------- --------- ----------- ----------- ----------- ----------- ------- --------
Contract owners' equity
end of period ........... $ 6,223,740 2,907,311 5,519,865 4,593,729 7,261,923 4,413,857 58,316 38,323
=========== ========= =========== =========== =========== =========== ======= ========
</TABLE>
22
<PAGE> 22
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
(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: Short-Term Government Fund (ACSTGvt)
American Century: Income & Growth Fund (ACIncGro)
American Century: Growth Fund (ACGro)
American Century: International Growth Fund (ACIntlGr)
American Century: Ultra Fund (ACUltra)
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 Emerging Leaders Fund (DryEmL)
Dreyfus S&P 500 Index Fund (Dry500Ix)
The Dreyfus Premier Third Century Fund, Inc. - Class Z (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)
(Continued)
23
<PAGE> 23
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
Fidelity Puritan(R) Fund (FidPurtn)
Portfolio of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - High Income Portfolio (FidVIPHI)
(not available for additional purchase payments or exchanges
after December 1, 1993)
Franklin Mutual Series Fund Inc. - Mutual Shares Fund -
Class A (FranMutSer)
Franklin Small Cap Growth Fund (FrSmCapGr)
INVESCO Dynamics Fund (InvDynam)
INVESCO Small Company Growth Fund (InvSmCoGr)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd)
Janus Worldwide Fund (JanWrldwde)
Lazard Small Cap Portfolio - Open Shares (LazSmCap)
MFS(R) Global Governments Fund - Class A (MFSGloGvt)
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 - Prime Shares (NWMyMkt)
(managed for a fee by an affiliated investment advisor)
Nationwide(R)Intermediate U.S. Government Bond Fund - Class D
(NWUSGvt) (managed for a fee by an affiliated investment
advisor)
Nationwide S&P 500(R)Index Fund - Service Class (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 - Oakhurst 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 (PrLgCpGro)
(managed for a fee by an affiliated investment advisor)
Prestige Large Cap Value Fund - Class A (PrLgCpVal)
(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 Large Cap Growth Fund, Inc. (StTotRet) (formerly Strong
Total Return Fund, Inc.)
Templeton Foreign Fund - Class A (TemForFd)
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
Warburg Pincus Global Fixed-Income Fund - Common Shares
(WPGlFxInc)
24
<PAGE> 24
The contract owners' equity is affected by the investment results of
each fund, equity transactions by contract owners and certain contract
expenses (see note 2). The accompanying financial statements include
only contract owners' purchase payments pertaining to the variable
portions of their contracts and exclude any purchase payments for fixed
dollar benefits, the latter being included in the accounts of the
Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 2000. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(2) EXPENSES
(a) Sales Charges
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 Soloist 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 Soloist 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.
For Successor contracts, the standard contract does not include a
contingent deferred sales charge. However, a contingent deferred sales
charge schedule may be elected in return for a reduction in the annual
mortality and expense risk charge.
No sales charges are deducted on redemptions used to purchase units in
the fixed investment options of the Company.
(Continued)
25
<PAGE> 25
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(b) Mortality and Expense Risk Charges
The following contract charges are deducted by the Company on Soloist
contracts: (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.
For Successor contracts, the charge ranges from an annual rate of .95%
to a maximum of 2.05% if all permissible rider options are utilized.
For these contracts, the rider options include: (a) five or seven year
CDSC; (b) reduced purchase payment; (c) death benefit and (d)
guaranteed minimum income benefit. This charge is assessed through the
daily unit value calculation.
(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.
26
<PAGE> 26
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 2000, for
each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
------- ---------- ---------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
Asset fee @ 1.30% rate:
American Century: Benham
Short-Term Government Fund:
Tax qualified ............................... 85,255 $ 23.618873 $ 2,013,627 2%
American Century: Income & Growth Fund:
Tax qualified ............................... 565,417 19.680629 11,127,762 (4)%
American Century: Growth Fund:
Tax qualified ............................... 152,608 124.655635 19,023,447 6%
American Century:
International Growth Fund:
Tax qualified ............................... 111,105 28.251655 3,138,900 (5)%
American Century: Ultra Fund:
Tax qualified ............................... 1,028,912 29.724903 30,584,309 (4)%
Delaware Group Delchester High-Yield
Bond Fund, Inc. - Delchester Fund
Institutional Class:
Tax qualified ............................... 77,244 13.002337 1,004,353 (9)%
Dreyfus A Bonds Plus, Inc.:
Tax qualified ............................... 153,087 12.473228 1,909,489 3%
Dreyfus Appreciation Fund, Inc.:
Tax qualified ............................... 142,625 14.217274 2,027,739 3%
Dreyfus Balanced Fund, Inc.:
Tax qualified ............................... 39,670 11.753253 466,252 0%
Dreyfus S&P 500 Index Fund:
Tax qualified ............................... 721,021 33.922791 24,459,045 (1)%
The Dreyfus Premier Third
Century Fund, Inc. - Class Z:
Tax qualified ............................... 69,600 33.529470 2,333,651 1%
Evergreen Income and Growth
Fund - Class Y:
Tax qualified ............................... 70,511 18.779167 1,324,138 (4)%
Federated High Yield Trust:
Tax qualified ............................... 55,703 9.784493 545,026 (3)%
Federated Investment Series Funds, Inc. -
Federated Bond Fund - Class F:
Tax qualified ............................... 139,546 11.200672 1,563,009 1%
Fidelity Advisor Balanced Fund - Class T:
Tax qualified ............................... 76,378 15.266515 1,166,026 (1)%
Fidelity Advisor Equity Income
Fund - Class T:
Tax qualified ............................... 119,884 15.907705 1,907,079 (5)%
Fidelity Advisor Growth Opportunities
Fund - Class T:
Tax qualified ............................... 490,625 18.130132 8,895,096 (5)%
</TABLE>
(Continued)
27
<PAGE> 27
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
------- ---------- ---------
<S> <C> <C> <C> <C>
Fidelity Advisor High Yield Fund - Class T:
Tax qualified ............................... 259,547 12.784176 3,318,095 (5)%
Fidelity Asset Manager(TM):
Tax qualified ............................... 289,898 19.911056 5,772,175 3%
Fidelity Capital & Income Fund:
Tax qualified ............................... 15,863 53.434977 847,639 (1)%
Fidelity Equity-Income Fund:
Tax qualified ............................... 162,411 80.761121 13,116,494 (3)%
Fidelity Magellan(R)Fund:
Tax qualified ............................... 1,151,139 35.953151 41,387,074 0%
Fidelity Puritan(R)Fund:
Tax qualified ............................... 556,362 23.073371 12,837,147 0%
Fidelity VIP - High Income Portfolio:
Tax qualified ............................... 4,174 24.119107 100,673 (5)%
Franklin Mutual Series Fund Inc. -
Mutual Shares Fund - Class I:
Tax qualified ............................... 36,905 11.154471 411,656 0%
INVESCO Dynamics Fund, Inc.:
Tax qualified ............................... 462,524 19.769168 9,143,715 11%
INVESCO Small Company Growth Fund:
Tax qualified
Janus Fund:
Tax qualified ............................... 772,313 29.837487 23,043,879 2%
Janus Twenty Fund:
Tax qualified ............................... 1,182,148 48.407384 57,224,692 (8)%
Janus Worldwide Fund:
Tax qualified ............................... 1,025,409 25.149169 25,788,184 2%
Lazard Small Cap Portfolio - Open Shares:
Tax qualified ............................... 23,772 10.812075 257,025 3%
MFS(R)World Governments Fund - Class A:
Tax qualified ............................... 12,846 35.698635 458,585 0%
Nationwide(R)Bond Fund - Class D:
Tax qualified ............................... 34,472 42.709596 1,472,285 2%
Non-tax qualified ........................... 73 42.526499 3,104 2%
Nationwide(R)Fund - Class D:
Tax qualified ............................... 59,522 126.670132 7,539,660 3%
Non-tax qualified ........................... 135 131.939823 17,812 3%
Nationwide(R)Growth Fund - Class D:
Tax qualified ............................... 23,996 125.139694 3,002,852 (5)%
Non-tax qualified ........................... 203 132.131758 26,823 (5)%
Nationwide(R) S&P 500 Index Fund - Class R:
Tax qualified ............................... 27,648 11.650692 322,118 (1)%
Nationwide(R)Money Market Fund:
Tax qualified - Pre 12/25/82 ................ 573,117 22.224904 12,737,470 2%
Tax qualified ............................... 26,701 27.985522 747,241 2%
Non-tax qualified ........................... 837 28.162387 23,572 2%
</TABLE>
28
<PAGE> 28
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
------- ---------- ---------
<S> <C> <C> <C> <C>
Nationwide(R)Intermediate U.S.
Government Bond Fund - Class D:
Tax qualified ............................... 30,599 11.940428 365,365 4%
Neuberger & Berman Genesis Trust
Tax qualified ............................... 76,840 10.848298 833,583 14%
Neuberger & Berman Guardian Trust:
Tax qualified ............................... 342,621 18.597963 6,372,053 1%
Neuberger & Berman Limited Maturity
Bond Fund:
Tax qualified ............................... 63,725 12.236142 779,748 1%
Neuberger & Berman Partners Fund:
Tax qualified ............................... 268,958 26.165264 7,037,357 (1)%
Oppenheimer Global Fund - Class A:
Tax qualified ............................... 365,240 41.115350 15,016,970 9%
Phoenix - Oakhurst Balanced
Fund Series - Class A:
Tax qualified ............................... 50,120 18.196837 912,025 0%
Prestige Balanced Fund - Class A:
Tax qualified ............................... 491 10.861743 5,333 0%
Prestige International Fund - Class A:
Tax qualified ............................... 5,112 11.369714 58,122 (5)%
Prestige Large Cap Growth Fund - Class A:
Tax qualified ............................... 8,487 13.609711 115,506 2%
Prestige Large Cap Value Fund - Class A:
Tax qualified ............................... 8,107 9.393935 76,157 (2)%
Prestige Small Cap Fund - Class A:
Tax qualified ............................... 23,479 12.389559 290,894 2%
Strong Common Stock Fund, Inc.
Tax qualified ............................... 103,944 14.401071 1,496,905 0%
Strong Large Cap Growth Fund, Inc.:
Tax qualified ............................... 146,972 42.346323 6,223,724 0%
Templeton Foreign Fund - Class A:
Tax qualified ............................... 331,370 16.547867 5,483,467 (6)%
Warburg Pincus Emerging Growth
Fund - Common Shares:
Tax qualified ............................... 340,275 21.341306 7,261,913 3%
Warburg Pincus Global Fixed-Income
Fund - Common Shares:
Tax qualified ............................... 5,451 10.697513 58,312 1%
Asset fee @ .95% rate:
American Century: Income & Growth Fund:
Tax qualified ............................... 109 9.694740 1,057 (3)%
The Dreyfus Third Century Fund, Inc.:
Tax qualified ............................... 54 10.155963 548 2%
INVESCO Dynamics Fund, Inc.:
Tax qualified ............................... 1,202 10.489083 12,608 5%
</TABLE>
(Continued)
29
<PAGE> 29
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
------- ---------- ---------
<S> <C> <C> <C> <C>
INVESCO Small Company Growth Fund:
Tax qualified ............................... 1,132 10.863965 12,298 9%
Janus Fund:
Tax qualified ............................... 2,424 9.712634 23,543 (3)%
Janus Twenty Fund:
Tax qualified ............................... 2,499 9.465867 23,655 (5)%
Janus Worldwide Fund:
Tax qualified ............................... 1,267 9.741581 12,343 (3)%
Nationwide S&P 500 Index Fund -
Service Class:
Tax qualified ............................... 2,224 9.903084 22,024 (1)%
Oppenheimer Global Fund - Class A:
Tax qualified ............................... 1,175 10.094680 11,861 1%
Asset fee @ 1.05% rate:
American Century: Income & Growth Fund:
Tax qualified ............................... 4,902 9.693139 47,516 (3)%
American Century: Ultra Fund:
Tax qualified ............................... 3,746 9.664400 36,203 (3)%
Federated High Yield Trust:
Tax qualified ............................... 3,659 10.075157 36,865 1%
Federated Investment Series Funds, Inc. -
Federated Bond Fund - Class F:
Tax qualified ............................... 3,620 10.142482 36,716 1%
Franklin Small Cap Growth Fund:
Tax qualified ............................... 1,182 10.577737 12,503 6%
Janus Fund:
Tax qualified ............................... 3,676 9.711024 35,698 (3)%
Janus Twenty Fund:
Tax qualified ............................... 5,015 9.464296 47,463 (5)%
Janus Worldwide Fund:
Tax qualified ............................... 3,061 9.739970 29,814 (3)%
Nationwide S&P 500 Index Fund -
Service Class:
Tax qualified ............................... 5,444 9.901448 53,903 (1)%
Oppenheimer Global Fund - Class A:
Tax qualified ............................... 4,807 10.093011 48,517 1%
Templeton Foreign Fund - Class A:
Tax qualified ............................... 3,509 10.372304 36,396 4%
========= =========
Reserves for annuity contracts in payout phase:
Tax qualified ............................... 209,335
------------
$386,227,218
============
</TABLE>
================================================================================
* The period return does not include contract charges satisfied by surrendering
units.
30
<PAGE> 30
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31
<PAGE> 31
--------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA o 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
