<PAGE> 1
[NATIONWIDE(R) LOGO]
NATIONWIDE
VARIABLE
ACCOUNT ANNUAL REPORT
TO
CONTRACT OWNERS
DECEMBER 31, 1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-717-AB (12/99)
<PAGE> 2
[NATIONWIDE(R) LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 1999 annual
report of the Nationwide Variable Account.
During 1999 equity investments extended their spirited advance to a fifth
consecutive year. The S&P 500 was the laggard of the major indices with a
year-over-year change of a respectable 19.53%. The NASDAQ topped the list at
over 85% with the other indices falling into line nearer the lower end of the
range. Fixed earnings investments did not fare as well in the current
environment of rising interest rates.
The U.S. economy remains strong, inflation remains docile and the available
labor pool is incessantly tight. Against this good-news-bad-news backdrop, the
Federal Reserve is increasingly concerned that recent productivity gains will
subside and ignite wage inflation. To date, the Fed has hiked short-term
interest rates a quarter percentage point on four occasions since last June.
Prospectively, they may well become more aggressive in their preemptive efforts
to dampen economic growth and avoid a new round of inflation.
We believe some caution may be warranted at this juncture. Certain market
sectors are well extended and may inevitably retreat to less lofty valuation
levels. However, we remain bullish for the long-term prospects of financial
assets. Your variable insurance contract provides an excellent resource to help
you achieve your long-term retirement savings and financial planning objectives.
We appreciate your trust in our company and in our investment products, and we
welcome and encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 10, 2000
3
<PAGE> 3
================================================================================
NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
December 31, 1999
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
American Century: Benham Short-Term Government Fund (ACBenSTGvt)
220,320 shares (cost $2,082,934) .........................................$ 2,031,355
American Century: Income & Growth Fund (ACIncGro)
322,498 shares (cost $9,276,159) ......................................... 10,981,053
American Century: Twentieth Century Growth Fund (ACTCGro)
566,913 shares (cost $14,294,132) ........................................ 18,299,951
American Century: Twentieth Century International Growth Fund (ACTCIntlGr)
134,208 shares (cost $1,416,537) ......................................... 2,009,092
American Century: Twentieth Century Ultra Fund (ACTCUltra)
651,457 shares (cost $20,987,488) ........................................ 29,823,713
Delaware Group Delchester High-Yield Bond Fund, Inc. -
Delchester Fund Institutional Class (DeHYBd)
220,882 shares (cost $1,356,266) ......................................... 1,130,915
Dreyfus A Bonds Plus, Inc. (DryABds)
144,237 shares (cost $2,063,566) ......................................... 1,932,781
Dreyfus Appreciation Fund, Inc. (DryApp)
47,141 shares (cost $2,016,065) .......................................... 2,155,770
Dreyfus Balanced Fund, Inc. (DryBal)
21,988 shares (cost $357,585) ............................................ 347,190
Dreyfus S&P 500 Index Fund (Dry500Ix)
554,953 shares (cost $19,537,791) ........................................ 23,813,040
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
135,008 shares (cost $1,689,367) ......................................... 1,964,361
Evergreen Income and Growth Fund - Class Y (EvIncGro)
63,364 shares (cost $1,354,222) .......................................... 1,418,087
Federated High Yield Trust (FedHiYld)
60,295 shares (cost $530,333) ............................................ 498,039
Federated Investment Series Funds, Inc. - Federated Bond Fund - Class F
(FedBdFd) 171,757 shares (cost $1,670,670) ............................... 1,549,246
Fidelity Advisor Balanced Fund - Class T (FABal)
72,905 shares (cost $1,364,625) .......................................... 1,330,516
Fidelity Advisor Equity Income Fund - Class T (FAEqInc)
78,424 shares (cost $2,114,044) .......................................... 2,045,289
Fidelity Advisor Growth Opportunities Fund - Class T (FAGrOpp)
199,987 shares (cost $9,020,612) ......................................... 9,331,386
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C> <C>
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
258,869 shares (cost $3,155,462) ....................................... $ 2,943,338
Fidelity Asset Manager(TM) (FidAsMgr)
304,964 shares (cost $5,374,309) ....................................... 5,605,247
Fidelity Capital & Income Fund (FidCapInc)
104,874 shares (cost $987,905) ......................................... 974,281
Fidelity Equity-Income Fund (FidEqInc)
301,699 shares (cost $13,779,479) ...................................... 16,134,874
Fidelity Magellan(R) Fund (FidMgln)
284,272 shares (cost $29,737,067) ...................................... 38,840,103
Fidelity Puritan(R) Fund (FidPurtn)
773,684 shares (cost $14,537,156) ...................................... 14,723,211
Fidelity VIP - High Income Portfolio (FidVIPHI)
9,418 shares (cost $109,105) ........................................... 106,512
Franklin Mutual Series Fund Inc. - Mutual Shares Fund - Class I (FranMutSer)
14,260 shares (cost $298,039) .......................................... 290,626
INVESCO Dynamics Fund, Inc. (InvDynam)
136,971 shares (cost $2,804,087) ....................................... 3,542,081
Janus Fund (JanFund)
394,296 shares (cost $13,953,091) ...................................... 17,368,748
Janus Twenty Fund (Jan20Fd)
628,329 shares (cost $33,888,409) ...................................... 52,421,524
Janus Worldwide Fund (JanWrldwde)
249,016 shares (cost $12,020,545) ...................................... 19,032,313
Lazard Small Cap Portfolio - Open Shares (LazSmCap)
11,020 shares (cost $188,153) .......................................... 181,948
MFS - World Governments Fund - Class A (MFSWdGvt)
53,856 shares (cost $576,880) .......................................... 506,786
Nationwide(R) Bond Fund - Class D (NWBdFd)
176,603 shares (cost $1,667,041) ....................................... 1,575,299
Nationwide(R) Fund - Class D (NWFund)
285,936 shares (cost $8,546,699) ....................................... 8,578,089
Nationwide(R) Growth Fund - Class D (NWGroFd)
204,855 shares (cost $3,199,103) ....................................... 3,568,578
Nationwide(R) S&P 500 Index Fund - Class R (NWIndxFdR)
16,472 shares (cost $189,713) .......................................... 210,844
Nationwide(R) Money Market Fund (NWMyMkt)
14,322,801 shares (cost $14,322,801) ................................... 14,322,801
Nationwide(R) Intermediate U.S. Government Bond Fund - Class D(NWUSGvt)
45,286 shares (cost $460,063) .......................................... 439,722
Neuberger & Berman Genesis Trust (NBGenesTr)
32,117 shares (cost $641,458) .......................................... 675,749
Neuberger & Berman Guardian Trust (NBGuardTr)
377,257 shares (cost $8,986,571) ....................................... 6,979,255
</TABLE>
(Continued)
5
<PAGE> 5
NATIONWIDE VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C> <C>
Neuberger & Berman Limited Maturity Bond Fund (NBLtdMat)
153,772 shares (cost $1,499,320) ...................................... $ 1,450,073
Neuberger & Berman Partners Fund (NBPartFd)
344,061 shares (cost $9,261,625) ...................................... 8,257,474
Oppenheimer Global Fund - Class A (OppGlob)
190,157 shares (cost $8,682,529) ...................................... 11,894,310
Phoenix Balanced Fund Series - Class A (PhxBalFd)
60,096 shares (cost $1,006,346) ....................................... 1,060,693
Prestige Balanced Fund - Class A (PrBal)
342 shares (cost $3,745) .............................................. 3,841
Prestige International Fund - Class A (PrInt)
4,153 shares (cost $48,885) ........................................... 52,290
Prestige Large Cap Growth Fund - Class A (PrLgCpGro)
1,279 shares (cost $16,998) ........................................... 19,700
Prestige Large Cap Value Fund - Class A (PrLgCpVal)
105 shares (cost $1,104) .............................................. 1,046
Prestige Small Cap Fund - Class A (PrSmCap)
7,732 shares (cost $88,891) ........................................... 98,664
Strong Common Stock Fund, Inc. (StComStk)
39,803 shares (cost $942,721) ......................................... 1,003,424
Strong Total Return Fund, Inc. (StTotRet)
103,813 shares (cost $3,608,348) ...................................... 4,889,592
Templeton Foreign Fund - Class I (TemForFd)
522,700 shares (cost $5,198,492) ...................................... 5,864,693
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
119,711 shares (cost $4,603,033) ...................................... 5,968,809
Warburg Pincus Global Fixed - Income Fund - Common Shares (WPGlFxInc)
5,731 shares (cost $60,232) ........................................... 57,133
-----------
Total investments ................................................. 360,305,455
Accounts receivable ............................................................... 1,397
-----------
Total assets ...................................................... 360,306,852
Accounts payable .................................................................. 31,070
-----------
Contract owners' equity (note 4) .................................................. $360,275,782
===========
</TABLE>
See accompanying notes to financial statements.
================================================================================
6
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
Total ACBenSTGvt
------------------------------ --------------------------
1999 1998 1999 1998
------------- ----------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 3,745,866 3,196,414 151,561 162,608
Mortality, expense and administration
charges (note 2) ............................. (3,667,684) (2,533,959) (37,774) (40,633)
------------- ----------- --------- ---------
Net investment activity ...................... 78,182 662,455 113,787 121,975
------------- ----------- --------- ---------
Proceeds from mutual fund shares sold ........... 65,558,218 56,416,999 1,382,393 723,023
Cost of mutual fund shares sold ................. (55,831,639) (48,174,169) (1,416,408) (721,176)
------------- ----------- --------- ---------
Realized gain (loss) on investments .......... 9,726,579 8,242,830 (34,015) 1,847
Change in unrealized gain (loss) on investments . 37,877,938 14,063,893 (64,989) 17,698
------------- ----------- --------- ---------
Net gain (loss) on investments ............... 47,604,517 22,306,723 (99,004) 19,545
------------- ----------- --------- ---------
Reinvested capital gains ........................ 20,213,428 11,574,852 - -
------------- ----------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 67,896,127 34,544,030 14,783 141,520
------------- ----------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 89,714,200 53,270,516 167,093 668,275
Transfers between funds ......................... - - (97,603) 7,071
Redemptions ..................................... (23,847,262) (23,621,452) (1,053,119) (835,080)
Annuity benefits ................................ (26,949) (27,891) (940) (952)
Annual contract maintenance charge (note 2) ..... (261,269) (169,891) (1,463) (1,748)
Contingent deferred sales charges (note 2) ...... (391,816) (324,873) (34,837) (1,752)
Adjustments to maintain reserves ................ (33,202) 788 (448) 290
------------- ----------- --------- ---------
Net equity transactions .................... 65,153,702 29,127,197 (1,021,317) (163,896)
------------- ----------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 133,049,829 63,671,227 (1,006,534) (22,376)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 227,225,953 163,554,726 3,037,422 3,059,798
------------- ----------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 360,275,782 227,225,953 2,030,888 3,037,422
============= =========== ========= =========
<CAPTION>
ACIncGro ACTCGro
--------------------------- ---------------------------
1999 1998 1999 1998
---------- --------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 99,016 64,541 - -
Mortality, expense and administration
charges (note 2) ............................. (116,439) (61,634) (198,570) (152,386)
---------- --------- ---------- ----------
Net investment activity ...................... (17,423) 2,907 (198,570) (152,386)
---------- --------- ---------- ----------
Proceeds from mutual fund shares sold ........... 1,896,243 2,702,912 2,520,566 1,724,411
Cost of mutual fund shares sold ................. (1,646,395) (2,527,718) (1,546,812) (1,226,965)
---------- --------- ---------- ----------
Realized gain (loss) on investments .......... 249,848 175,194 973,754 497,446
Change in unrealized gain (loss) on investments . 1,166,622 627,403 1,707,076 968,585
---------- --------- ---------- ----------
Net gain (loss) on investments ............... 1,416,470 802,597 2,680,830 1,466,031
---------- --------- ---------- ----------
Reinvested capital gains ........................ 18,019 275,147 2,063,722 2,228,156
---------- --------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,417,066 1,080,651 4,545,982 3,541,801
---------- --------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,978,474 2,774,469 1,590,054 646,577
Transfers between funds ......................... (53,752) 1,481,828 189,443 (134,689)
Redemptions ..................................... (351,090) (220,883) (1,465,483) (1,058,730)
Annuity benefits ................................ - - (15,993) (12,964)
Annual contract maintenance charge (note 2) ..... (7,497) (2,588) (15,697) (14,839)
Contingent deferred sales charges (note 2) ...... (5,905) (5,005) (9,269) (6,993)
Adjustments to maintain reserves ................ 76 (981) 4,665 3,397
---------- --------- ---------- ----------
Net equity transactions .................... 2,560,306 4,026,840 277,720 (578,241)
---------- --------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 3,977,372 5,107,491 4,823,702 2,963,560
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 7,003,742 1,896,251 13,480,704 10,517,144
---------- --------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $10,981,114 7,003,742 18,304,406 13,480,704
========== ========= ========== ==========
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
ACTCIntlGr ACTCUltra
-------------------------- -------------------------
1999 1998 1999 1998
----------- ------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 792 1,491 - -
Mortality, expense and administration
charges (note 2) ............................. (16,275) (10,515) (289,122) (183,975)
----------- ------- ---------- ----------
Net investment activity ...................... (15,483) (9,024) (289,122) (183,975)
----------- ------- ---------- ----------
Proceeds from mutual fund shares sold ........... 724,215 622,576 2,707,592 1,479,795
Cost of mutual fund shares sold ................. (581,513) (562,613) (1,932,118) (1,263,460)
----------- ------- ---------- ----------
Realized gain (loss) on investments .......... 142,702 59,963 775,474 216,335
Change in unrealized gain (loss) on investments . 593,121 35,468 6,814,122 2,426,265
----------- ------- ---------- ----------
Net gain (loss) on investments ............... 735,823 95,431 7,589,596 2,642,600
----------- ------- ---------- ----------
Reinvested capital gains ........................ 103,146 12,976 864,560 1,488,048
----------- ------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 823,486 99,383 8,165,034 3,946,673
----------- ------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 428,105 282,424 6,583,564 3,883,377
Transfers between funds ......................... (38,930) 47,185 (1,139,291) (311,089)
Redemptions ..................................... (87,756) (38,282) (1,224,869) (1,084,444)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (1,654) (677) (20,319) (14,129)
Contingent deferred sales charges (note 2) ...... (2,075) (699) (26,644) (23,446)
Adjustments to maintain reserves ................ 58 14 456 172
----------- ------- ---------- ----------
Net equity transactions .................... 297,748 289,965 4,172,897 2,450,441
----------- ------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 1,121,234 389,348 12,337,931 6,397,114
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 887,916 498,568 17,486,224 11,089,110
----------- ------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 2,009,150 887,916 29,824,155 17,486,224
=========== ======= ========== ==========
<CAPTION>
DeHYBd DryABds
------------------------ ------------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 123,348 123,276 125,940 115,918
Mortality, expense and administration
charges (note 2) ............................. (15,346) (16,341) (27,148) (25,437)
--------- --------- --------- ---------
Net investment activity ...................... 108,002 106,935 98,792 90,481
--------- --------- --------- ---------
Proceeds from mutual fund shares sold ........... 219,274 341,656 755,271 1,243,229
Cost of mutual fund shares sold ................. (242,560) (327,084) (797,023) (1,219,521)
--------- --------- --------- ---------
Realized gain (loss) on investments .......... (23,286) 14,572 (41,752) 23,708
Change in unrealized gain (loss) on investments . (134,705) (151,204) (49,034) (120,982)
--------- --------- --------- ---------
Net gain (loss) on investments ............... (157,991) (136,632) (90,786) (97,274)
--------- --------- --------- ---------
Reinvested capital gains ........................ - - - 32,247
--------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (49,989) (29,697) 8,006 25,454
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 305,176 156,659 416,301 545,761
Transfers between funds ......................... (144,207) (127,468) (396,674) (80,789)
Redemptions ..................................... (71,301) (241,587) (181,145) (241,342)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (559) (495) (1,599) (1,451)
Contingent deferred sales charges (note 2) ...... (1,009) (1,713) (4,613) (3,165)
Adjustments to maintain reserves ................ (10) (83) 403 (408)
--------- --------- --------- ---------
Net equity transactions .................... 88,090 (214,687) (167,327) 218,606
--------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 38,101 (244,384) (159,321) 244,060
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,095,862 1,340,246 2,092,501 1,848,441
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $1,133,963 1,095,862 1,933,180 2,092,501
========= ========= ========= =========
</TABLE>
8
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
DryApp DryBal
-------------------------- ----------------------
1999 1998 1999 1998
----------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 10,805 3,740 7,004 3,036
Mortality, expense and administration
charges (note 2) ............................. (22,685) (3,370) (3,386) (1,249)
----------- ------- ------- -------
Net investment activity ...................... (11,880) 370 3,618 1,787
----------- ------- ------- -------
Proceeds from mutual fund shares sold ........... 334,760 108,365 105,989 38,449
Cost of mutual fund shares sold ................. (302,057) (104,926) (111,064) (38,148)
----------- ------- ------- -------
Realized gain (loss) on investments .......... 32,703 3,439 (5,075) 301
Change in unrealized gain (loss) on investments . 77,744 61,961 (4,500) (5,894)
----------- ------- ------- -------
Net gain (loss) on investments ............... 110,447 65,400 (9,575) (5,593)
----------- ------- ------- -------
Reinvested capital gains ........................ 14,262 1,147 30,801 8,351
----------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 112,829 66,917 24,844 4,545
----------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,120,026 301,616 167,111 123,154
Transfers between funds ......................... 268,875 367,247 12,770 63,401
Redemptions ..................................... (61,137) (18,608) (16,459) (31,225)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (1,336) (113) (285) (9)
Contingent deferred sales charges (note 2) ...... (776) (36) (608) -
Adjustments to maintain reserves ................ 1,699 273 257 (50)
----------- ------- ------- -------
Net equity transactions .................... 1,327,351 650,379 162,786 155,271
----------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 1,440,180 717,296 187,630 159,816
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 717,296 - 159,816 -
----------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 2,157,476 717,296 347,446 159,816
=========== ======= ======= =======
<CAPTION>
Dry500Ix Dry3dCen
------------------------- ------------------------
1999 1998 1999 1998
---------- ---------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 173,479 120,795 - -
Mortality, expense and administration
charges (note 2) ............................. (233,441) (129,044) (18,115) (11,355)
---------- ---------- --------- ---------
Net investment activity ...................... (59,962) (8,249) (18,115) (11,355)
---------- ---------- --------- ---------
Proceeds from mutual fund shares sold ........... 2,358,016 2,847,389 375,085 277,680
Cost of mutual fund shares sold ................. (1,459,171) (2,101,605) (296,561) (215,841)
---------- ---------- --------- ---------
Realized gain (loss) on investments .......... 898,845 745,784 78,524 61,839
Change in unrealized gain (loss) on investments . 2,071,050 1,493,487 172,373 68,617
---------- ---------- --------- ---------
Net gain (loss) on investments ............... 2,969,895 2,239,271 250,897 130,456
---------- ---------- --------- ---------
Reinvested capital gains ........................ 277,023 2,453 160,139 106,354
---------- ---------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,186,956 2,233,475 392,921 225,455
---------- ---------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 7,439,433 3,936,518 689,809 195,911
Transfers between funds ......................... 1,823,273 1,528 (117,085) 7,991
Redemptions ..................................... (1,042,505) (1,319,672) (75,336) (70,148)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (19,905) (8,663) (1,871) (1,341)
Contingent deferred sales charges (note 2) ...... (20,042) (28,571) (1,220) (2,211)
Adjustments to maintain reserves ................ 166 51 29 1
---------- ---------- --------- ---------
Net equity transactions .................... 8,180,420 2,581,191 494,326 130,203
---------- ---------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 11,367,376 4,814,666 887,247 355,658
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 12,445,816 7,631,150 1,077,131 721,473
---------- ---------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $23,813,192 12,445,816 1,964,378 1,077,131
========== ========== ========= =========
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
EvIncGro FedHiYld
-------------------------- ----------------------
1999 1998 1999 1998
----------- --------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 66,966 53,014 43,451 10,742
Mortality, expense and administration
charges (note 2) ............................. (17,674) (15,523) (6,405) (1,643)
----------- --------- ------- -------
Net investment activity ...................... 49,292 37,491 37,046 9,099
----------- --------- ------- -------
Proceeds from mutual fund shares sold ........... 242,571 141,082 454,839 6,112
Cost of mutual fund shares sold ................. (214,601) (121,276) (459,193) (6,420)
----------- --------- ------- -------
Realized gain (loss) on investments .......... 27,970 19,806 (4,354) (308)
Change in unrealized gain (loss) on investments . 85,128 (202,823) (34,463) 2,169
----------- --------- ------- -------
Net gain (loss) on investments ............... 113,098 (183,017) (38,817) 1,861
----------- --------- ------- -------
Reinvested capital gains ........................ 25,558 119,607 - -
----------- --------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 187,948 (25,919) (1,771) 10,960
----------- --------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 181,434 529,511 155,180 52,736
Transfers between funds ......................... (160,727) (1,596) (131,704) 427,826
Redemptions ..................................... (70,401) (329,204) (12,620) (2,247)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (1,050) (584) (242) (13)
Contingent deferred sales charges (note 2) ...... (619) (286) (184) (46)
Adjustments to maintain reserves ................ 7 3 456 162
----------- --------- ------- -------
Net equity transactions .................... (51,356) 197,844 10,886 478,418
----------- --------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 136,592 171,925 9,115 489,378
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,281,506 1,109,581 489,378 -
----------- --------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 1,418,098 1,281,506 498,493 489,378
=========== ========= ======= =======
<CAPTION>
FedBdFd FABal
------------------------ -------------------------
1999 1998 1999 1998
--------- --------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 102,995 63,263 22,784 11,502
Mortality, expense and administration
charges (note 2) ............................. (18,422) (11,793) (11,737) (4,942)
--------- --------- --------- -------
Net investment activity ...................... 84,573 51,470 11,047 6,560
--------- --------- --------- -------
Proceeds from mutual fund shares sold ........... 458,722 87,912 239,744 463,667
Cost of mutual fund shares sold ................. (482,630) (85,985) (254,691) (435,638)
--------- --------- --------- -------
Realized gain (loss) on investments .......... (23,908) 1,927 (14,947) 28,029
Change in unrealized gain (loss) on investments . (109,895) (22,462) (15,270) (21,984)
--------- --------- --------- -------
Net gain (loss) on investments ............... (133,803) (20,535) (30,217) 6,045
--------- --------- --------- -------
Reinvested capital gains ........................ - - 49,976 35,081
--------- --------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (49,230) 30,935 30,806 47,686
--------- --------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 519,407 217,429 973,573 285,138
Transfers between funds ......................... (25,840) 627,230 (70,703) (26,713)
Redemptions ..................................... (98,914) (41,428) (66,271) (15,263)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (719) (198) (1,130) (415)
Contingent deferred sales charges (note 2) ...... (1,002) (1) (1,134) (539)
Adjustments to maintain reserves ................ 34 (3) (6) (12)
--------- --------- --------- -------
Net equity transactions .................... 392,966 803,029 834,329 242,196
--------- --------- --------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 343,736 833,964 865,135 289,882
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,205,464 371,500 465,370 175,488
--------- --------- --------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $1,549,200 1,205,464 1,330,505 465,370
========= ========= ========= =======
</TABLE>
10
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FAEqInc FAGrOpp
-------------------------- ------------------------
1999 1998 1999 1998
----------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 11,115 10,023 66,016 48,032
Mortality, expense and administration
charges (note 2) ............................. (24,189) (18,599) (110,141) (78,505)
----------- --------- --------- ---------
Net investment activity ...................... (13,074) (8,576) (44,125) (30,473)
----------- --------- --------- ---------
Proceeds from mutual fund shares sold ........... 470,946 319,587 750,181 1,353,752
Cost of mutual fund shares sold ................. (369,273) (238,766) (555,496) (1,094,861)
----------- --------- --------- ---------
Realized gain (loss) on investments .......... 101,673 80,821 194,685 258,891
Change in unrealized gain (loss) on investments . (264,494) 55,249 (845,688) 732,635
----------- --------- --------- ---------
Net gain (loss) on investments ............... (162,821) 136,070 (651,003) 991,526
----------- --------- --------- ---------
Reinvested capital gains ........................ 211,430 71,848 900,042 251,548
----------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 35,535 199,342 204,914 1,212,601
----------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 582,052 451,869 2,517,631 1,711,707
Transfers between funds ......................... (215,278) 35,389 (189,059) (64,906)
Redemptions ..................................... (61,176) (185,723) (470,392) (359,563)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (2,401) (1,384) (9,262) (5,519)
Contingent deferred sales charges (note 2) ...... (1,758) (1,588) (8,286) (6,868)
Adjustments to maintain reserves ................ (6) (6) (60) 44
----------- --------- --------- ---------
Net equity transactions .................... 301,433 298,557 1,840,572 1,274,895
----------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 336,968 497,899 2,045,486 2,487,496
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,708,319 1,210,420 7,285,888 4,798,392
----------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 2,045,287 1,708,319 9,331,374 7,285,888
=========== ========= ========= =========
<CAPTION>
FAHiYld FidAsMgr
------------------------ ------------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 221,385 255,735 153,886 117,170
Mortality, expense and administration
charges (note 2) ............................. (37,448) (38,336) (62,792) (49,446)
--------- --------- --------- ---------
Net investment activity ...................... 183,937 217,399 91,094 67,724
--------- --------- --------- ---------
Proceeds from mutual fund shares sold ........... 1,055,487 1,050,322 547,891 896,828
Cost of mutual fund shares sold ................. (1,168,248) (1,032,112) (486,585) (671,236)
--------- --------- --------- ---------
Realized gain (loss) on investments .......... (112,761) 18,210 61,306 225,592
Change in unrealized gain (loss) on investments . 125,442 (349,860) 212,814 (393,169)
--------- --------- --------- ---------
Net gain (loss) on investments ............... 12,681 (331,650) 274,120 (167,577)
--------- --------- --------- ---------
Reinvested capital gains ........................ - 31,024 212,824 626,712
--------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 196,618 (83,227) 578,038 526,859
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 591,358 814,267 1,304,975 740,021
Transfers between funds ......................... (367,666) (223,421) (138,610) (76,681)
Redemptions ..................................... (273,085) (195,080) (274,660) (694,794)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (2,284) (1,287) (3,895) (2,816)
Contingent deferred sales charges (note 2) ...... (2,121) (3,651) (4,736) (16,506)
Adjustments to maintain reserves ................ (2,747) 446 176 21
--------- --------- --------- ---------
Net equity transactions .................... (56,545) 391,274 883,250 (50,755)
--------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 140,073 308,047 1,461,288 476,104
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 2,800,745 2,492,698 4,144,138 3,668,034
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $2,940,818 2,800,745 5,605,426 4,144,138
========= ========= ========= =========
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FidCapInc FidEqInc
-------------------------- -------------------------
1999 1998 1999 1998
----------- --------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 92,610 117,272 233,896 269,798
Mortality, expense and administration
charges (note 2) ............................. (14,582) (16,266) (218,755) (229,390)
----------- --------- ---------- ----------
Net investment activity ...................... 78,028 101,006 15,141 40,408
----------- --------- ---------- ----------
Proceeds from mutual fund shares sold ........... 379,568 139,878 3,397,056 3,943,497
Cost of mutual fund shares sold ................. (355,475) (116,142) (1,867,367) (2,379,246)
----------- --------- ---------- ----------
Realized gain (loss) on investments .......... 24,093 23,736 1,529,689 1,564,251
Change in unrealized gain (loss) on investments . (14,514) (112,592) (2,022,662) (528,172)
----------- --------- ---------- ----------
Net gain (loss) on investments ............... 9,579 (88,856) (492,973) 1,036,079
----------- --------- ---------- ----------
Reinvested capital gains ........................ 40,370 32,589 1,446,910 735,781
----------- --------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 127,977 44,739 969,078 1,812,268
----------- --------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. - 1,897 1,545,727 1,203,569
Transfers between funds ......................... (123,285) (8,199) (1,091,107) (1,030,099)
Redemptions ..................................... (238,589) (112,832) (2,329,777) (2,317,284)
Annuity benefits ................................ (1,625) (1,566) (5,247) (4,684)
Annual contract maintenance charge (note 2) ..... (1,525) (1,764) (18,301) (17,633)
Contingent deferred sales charges (note 2) ...... (146) (290) (11,982) (13,552)
Adjustments to maintain reserves ................ (386) 144 189 (186)
----------- --------- ---------- ----------
Net equity transactions .................... (365,556) (122,610) (1,910,498) (2,179,869)
----------- --------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (237,579) (77,871) (941,420) (367,601)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,211,457 1,289,328 17,076,425 17,444,026
----------- --------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 973,878 1,211,457 16,135,005 17,076,425
=========== ========= ========== ==========
<CAPTION>
FidMgIn FidPurtn
------------------------- -------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 186,247 117,953 473,978 443,211
Mortality, expense and administration
charges (note 2) ............................. (396,210) (234,858) (193,771) (173,935)
---------- ---------- ---------- ----------
Net investment activity ...................... (209,963) (116,905) 280,207 269,276
---------- ---------- ---------- ----------
Proceeds from mutual fund shares sold ........... 1,663,128 1,944,713 2,724,132 1,884,862
Cost of mutual fund shares sold ................. (1,134,531) (1,734,936) (2,380,613) (1,482,526)
---------- ---------- ---------- ----------
Realized gain (loss) on investments .......... 528,597 209,777 343,519 402,336
Change in unrealized gain (loss) on investments . 3,321,891 4,084,520 (1,141,665) 177,749
---------- ---------- ---------- ----------
Net gain (loss) on investments ............... 3,850,488 4,294,297 (798,146) 580,085
---------- ---------- ---------- ----------
Reinvested capital gains ........................ 2,703,524 884,756 726,332 1,012,923
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 6,344,049 5,062,148 208,393 1,862,284
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 10,193,949 4,957,504 3,005,029 2,895,054
Transfers between funds ......................... 1,114,670 (286,839) (2,047,732) (942,420)
Redemptions ..................................... (1,510,513) (1,512,760) (794,957) (1,263,833)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (23,202) (16,887) (10,523) (9,022)
Contingent deferred sales charges (note 2) ...... (31,378) (31,705) (14,389) (23,520)
Adjustments to maintain reserves ................ 4,877 251 (1) 89
---------- ---------- ---------- ----------
Net equity transactions .................... 9,748,403 3,109,564 137,427 656,348
---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 16,092,452 8,171,712 345,820 2,518,632
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 22,752,524 14,580,812 14,377,391 11,858,759
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $38,844,976 22,752,524 14,723,211 14,377,391
========== ========== ========== ==========
</TABLE>
12
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
FidVIPHI FranMutSer
-------------------------- ----------------------
1999 1998 1999 1998
----------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 11,245 19,285 4,394 3,923
Mortality, expense and administration
charges (note 2) ............................. (1,576) (2,858) (3,723) (1,297)
----------- ------- ------- -------
Net investment activity ...................... 9,669 16,427 671 2,626
----------- ------- ------- -------
Proceeds from mutual fund shares sold ........... 24,023 146,537 158,518 34,211
Cost of mutual fund shares sold ................. (22,141) (137,310) (161,602) (39,523)
----------- ------- ------- -------
Realized gain (loss) on investments .......... 1,882 9,227 (3,084) (5,312)
Change in unrealized gain (loss) on investments . (4,341) (46,265) 9,018 (16,432)
----------- ------- ------- -------
Net gain (loss) on investments ............... (2,459) (37,038) 5,934 (21,744)
----------- ------- ------- -------
Reinvested capital gains ........................ 420 12,254 20,109 10,640
----------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 7,630 (8,357) 26,714 (8,478)
----------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. - - 89,498 151,888
Transfers between funds ......................... (22,367) (132,120) 27,444 43,975
Redemptions ..................................... - (11,242) (37,866) (1,472)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (77) (110) (623) (16)
Contingent deferred sales charges (note 2) ...... - - (531) -
Adjustments to maintain reserves ................ (9) (4) 267 96
----------- ------- ------- -------
Net equity transactions .................... (22,453) (143,476) 78,189 194,471
----------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (14,823) (151,833) 104,903 185,993
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 121,339 273,172 185,993 -
----------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 106,516 121,339 290,896 185,993
=========== ======= ======= =======
<CAPTION>
InvDynam JanFund
------------------------ -------------------------
1999 1998 1999 1998
--------- --------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - - 13,196
Mortality, expense and administration
charges (note 2) ............................. (14,436) - (136,357) (59,083)
--------- --------- ---------- ---------
Net investment activity ...................... (14,436) - (136,357) (45,887)
--------- --------- ---------- ---------
Proceeds from mutual fund shares sold ........... 177,186 - 1,467,695 630,648
Cost of mutual fund shares sold ................. (145,218) - (948,993) (554,019)
--------- --------- ---------- ---------
Realized gain (loss) on investments .......... 31,968 - 518,702 76,629
Change in unrealized gain (loss) on investments . 737,993 - 2,229,356 1,321,824
--------- --------- ---------- ---------
Net gain (loss) on investments ............... 769,961 - 2,748,058 1,398,453
--------- --------- ---------- ---------
Reinvested capital gains ........................ 127,810 - 1,754,780 144,449
--------- --------- ---------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 883,335 - 4,366,481 1,497,015
--------- --------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 751,995 - 4,413,201 1,312,739
Transfers between funds ......................... 2,002,769 - 3,096,905 123,452
Redemptions ..................................... (92,753) - (585,095) (273,851)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (384) - (9,108) (3,757)
Contingent deferred sales charges (note 2) ...... (2,881) - (11,511) (5,439)
Adjustments to maintain reserves ................ 1,470 - 200 87
--------- --------- ---------- ---------
Net equity transactions .................... 2,660,216 - 6,904,592 1,153,231
--------- --------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 3,543,551 - 11,271,073 2,650,246
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... - - 6,097,880 3,447,634
--------- --------- ---------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $3,543,551 - 17,368,953 6,097,880
========= ========= ========== =========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
Jan20Fd JanWrldwde
---------------------------- --------------------------
1999 1998 1999 1998
------------ ---------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 110,311 42,176 6,195 27,824
Mortality, expense and administration
charges (note 2) ............................. (409,436) (127,040) (144,113) (73,506)
------------ ---------- ---------- ---------
Net investment activity ...................... (299,125) (84,864) (137,918) (45,682)
------------ ---------- ---------- ---------
Proceeds from mutual fund shares sold ........... 3,443,884 2,274,301 805,632 1,326,534
Cost of mutual fund shares sold ................. (1,567,343) (1,711,517) (502,006) (1,091,427)
------------ ---------- ---------- ---------
Realized gain (loss) on investments .......... 1,876,541 562,784 303,626 235,107
Change in unrealized gain (loss) on investments . 13,558,639 5,023,354 6,168,659 896,338
------------ ---------- ---------- ---------
Net gain (loss) on investments ............... 15,435,180 5,586,138 6,472,285 1,131,445
------------ ---------- ---------- ---------
Reinvested capital gains ........................ 2,382,851 91,123 300,343 -
------------ ---------- ---------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 17,518,906 5,592,397 6,634,710 1,085,763
------------ ---------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 15,989,396 3,053,816 4,872,858 2,138,597
Transfers between funds ......................... 4,959,838 2,754,222 1,138,194 111,111
Redemptions ..................................... (2,382,467) (867,882) (590,624) (301,152)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (25,581) (8,378) (11,238) (5,392)
Contingent deferred sales charges (note 2) ...... (54,887) (17,610) (9,166) (6,090)
Adjustments to maintain reserves ................ 1,173 447 520 70
------------ ---------- ---------- ---------
Net equity transactions .................... 18,487,472 4,914,615 5,400,544 1,937,144
------------ ---------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 36,006,378 10,507,012 12,035,254 3,022,907
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 16,416,311 5,909,299 6,997,578 3,974,671
------------ ---------- ---------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 52,422,689 16,416,311 19,032,832 6,997,578
============ ========== ========== =========
<CAPTION>
LazSmCap MFSWdGvt
----------------------- -----------------------
1999 1998 1999 1998
------- -------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 188 - 38,704 46,268
Mortality, expense and administration
charges (note 2) ............................. (634) - (8,112) (9,446)
------- -------- ------- -------
Net investment activity ...................... (446) - 30,592 36,822
------- -------- ------- -------
Proceeds from mutual fund shares sold ........... 72,252 - 306,136 254,224
Cost of mutual fund shares sold ................. (70,119) - (330,879) (271,092)
------- -------- ------- -------
Realized gain (loss) on investments .......... 2,133 - (24,743) (16,868)
Change in unrealized gain (loss) on investments . (6,204) - (36,873) (1,563)
------- -------- ------- -------
Net gain (loss) on investments ............... (4,071) - (61,616) (18,431)
------- -------- ------- -------
Reinvested capital gains ........................ 6,007 - - -
------- -------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,490 - (31,024) 18,391
------- -------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 95,307 - 58,963 53,676
Transfers between funds ......................... 85,026 454 (138,762) 10,990
Redemptions ..................................... - - (122,666) (84,094)
Annuity benefits ................................ - - (2,456) (2,578)
Annual contract maintenance charge (note 2) ..... (9) - (910) (1,081)
Contingent deferred sales charges (note 2) ...... - - (1,236) (962)
Adjustments to maintain reserves ................ (298) 16 (319) 273
------- -------- ------- -------
Net equity transactions .................... 180,026 470 (207,386) (23,776)
------- -------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 181,516 470 (238,410) (5,385)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 470 - 756,404 761,789
------- -------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $181,986 470 517,994 756,404
======= ======== ======= =======
</TABLE>
14
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NWBdFd NWFund
-------------------------- ------------------------
1999 1998 1999 1998
----------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 95,233 93,677 65,302 58,065
Mortality, expense and administration
charges (note 2) ............................. (20,947) (20,893) (109,757) (79,929)
----------- --------- --------- ---------
Net investment activity ...................... 74,286 72,784 (44,455) (21,864)
----------- --------- --------- ---------
Proceeds from mutual fund shares sold ........... 630,227 536,549 1,690,158 2,006,814
Cost of mutual fund shares sold ................. (628,048) (509,194) (1,037,842) (1,061,945)
----------- --------- --------- ---------
Realized gain (loss) on investments .......... 2,179 27,355 652,316 944,869
Change in unrealized gain (loss) on investments . (143,935) 2,462 (1,224,488) 168,811
----------- --------- --------- ---------
Net gain (loss) on investments ............... (141,756) 29,817 (572,172) 1,113,680
----------- --------- --------- ---------
Reinvested capital gains ........................ - - 523,109 351,018
----------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (67,470) 102,601 (93,518) 1,442,834
----------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 464,741 373,966 3,211,265 2,518,633
Transfers between funds ......................... (177,367) (106,283) (778,608) 286,664
Redemptions ..................................... (241,981) (479,980) (1,208,864) (1,272,428)
Annuity benefits ................................ (18) (214) (152) (1,645)
Annual contract maintenance charge (note 2) ..... (1,330) (1,293) (12,189) (5,526)
Contingent deferred sales charges (note 2) ...... (2,347) (972) (6,961) (5,815)
Adjustments to maintain reserves ................ (1,974) 59 (17,167) (970)
----------- --------- --------- ---------
Net equity transactions .................... 39,724 (214,717) 1,187,324 1,518,913
----------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (27,746) (112,116) 1,093,806 2,961,747
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 1,601,069 1,713,185 7,462,477 4,500,730
----------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 1,573,323 1,601,069 8,556,283 7,462,477
=========== ========= ========= =========
<CAPTION>
NWGroFd NWIndxFdR
------------------------ ----------------------
1999 1998 1999 1998
--------- --------- ------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 6,354 5,977 777 -
Mortality, expense and administration
charges (note 2) ............................. (46,039) (53,844) (1,327) -
--------- --------- ------- ---------
Net investment activity ...................... (39,685) (47,867) (550) -
--------- --------- ------- ---------
Proceeds from mutual fund shares sold ........... 980,126 2,457,885 4,536 -
Cost of mutual fund shares sold ................. (686,099) (1,632,831) (4,303) -
--------- --------- ------- ---------
Realized gain (loss) on investments .......... 294,027 825,054 233 -
Change in unrealized gain (loss) on investments . (202,135) (146,456) 21,131 -
--------- --------- ------- ---------
Net gain (loss) on investments ............... 91,892 678,598 21,364 -
--------- --------- ------- ---------
Reinvested capital gains ........................ 442,086 224,429 341 -
--------- --------- ------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 494,293 855,160 21,155 -
--------- --------- ------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 496,793 390,995 175,404 -
Transfers between funds ......................... (71,634) (150,263) 15,317 -
Redemptions ..................................... (886,886) (1,950,035) (1,003) -
Annuity benefits ................................ (141) (1,563) - -
Annual contract maintenance charge (note 2) ..... (4,494) (3,472) (10) -
Contingent deferred sales charges (note 2) ...... (3,288) (4,096) (19) -
Adjustments to maintain reserves ................ (18,658) 524 103 -
--------- --------- ------- ---------
Net equity transactions .................... (488,308) (1,717,910) 189,792 -
--------- --------- ------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 5,985 (862,750) 210,947 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 3,543,989 4,406,739 - -
--------- --------- ------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $3,549,974 3,543,989 210,947 -
========= ========= ======= =========
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NWMyMkt NWUSGvt
---------------------------- -----------------------
1999 1998 1999 1998
------------ ---------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 542,690 461,473 27,163 14,221
Mortality, expense and administration
charges (note 2) ............................. (154,492) (122,488) (6,715) (3,754)
------------ ---------- ------- -------
Net investment activity ...................... 388,198 338,985 20,448 10,467
------------ ---------- ------- -------
Proceeds from mutual fund shares sold ........... 16,488,282 13,390,890 758,992 370,513
Cost of mutual fund shares sold ................. (16,488,282) (13,390,890) (788,734) (365,796)
------------ ---------- ------- -------
Realized gain (loss) on investments .......... - - (29,742) 4,717
Change in unrealized gain (loss) on investments . - - (13,433) (8,808)
------------ ---------- ------- -------
Net gain (loss) on investments ............... - - (43,175) (4,091)
------------ ---------- ------- -------
Reinvested capital gains ........................ - - 1,715 3,694
------------ ---------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 388,198 338,985 (21,012) 10,070
------------ ---------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 6,833,790 6,108,738 612,619 292,897
Transfers between funds ......................... (1,084,885) 188,506 (477,996) 147,064
Redemptions ..................................... (3,242,473) (2,839,314) (191,094) (7,884)
Annuity benefits ................................ (377) (1,725) - -
Annual contract maintenance charge (note 2) ..... (10,508) (8,599) (431) (162)
Contingent deferred sales charges (note 2) ...... (73,053) (48,336) (193) (105)
Adjustments to maintain reserves ................ (16,045) 1,133 (4) 796
------------ ---------- ------- -------
Net equity transactions .................... 2,406,449 3,400,403 (57,099) 432,606
------------ ---------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 2,794,647 3,739,388 (78,111) 442,676
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 11,504,938 7,765,550 517,836 75,160
------------ ---------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 14,299,585 11,504,938 439,725 517,836
============ ========== ======= =======
<CAPTION>
NBGenesTr NBGuardTr
----------------------- -------------------------
1999 1998 1999 1998
------- ------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 3,514 3,629 56,088 43,561
Mortality, expense and administration
charges (note 2) ............................. (9,160) (5,221) (93,699) (102,643)
------- ------- --------- ---------
Net investment activity ...................... (5,646) (1,592) (37,611) (59,082)
------- ------- --------- ---------
Proceeds from mutual fund shares sold ........... 325,288 46,166 2,233,501 1,421,419
Cost of mutual fund shares sold ................. (380,896) (51,966) (2,271,244) (1,295,137)
------- ------- --------- ---------
Realized gain (loss) on investments .......... (55,608) (5,800) (37,743) 126,282
Change in unrealized gain (loss) on investments . 81,946 (47,655) (1,012,384) (1,131,594)
------- ------- --------- ---------
Net gain (loss) on investments ............... 26,338 (53,455) (1,050,127) (1,005,312)
------- ------- --------- ---------
Reinvested capital gains ........................ - 6,048 1,578,197 1,110,714
------- ------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 20,692 (48,999) 490,459 46,320
------- ------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 203,802 361,520 1,262,107 1,484,830
Transfers between funds ......................... (115,862) 323,146 (1,868,774) (1,057,014)
Redemptions ..................................... (56,722) (10,080) (389,152) (595,129)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (598) (57) (5,549) (5,098)
Contingent deferred sales charges (note 2) ...... (1,250) (76) (9,654) (8,659)
Adjustments to maintain reserves ................ 1,911 267 12,098 (9)
------- ------- --------- ---------
Net equity transactions .................... 31,281 674,720 (998,924) (181,079)
------- ------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 51,973 625,721 (508,465) (134,759)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 625,721 - 7,499,816 7,634,575
------- ------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $677,694 625,721 6,991,351 7,499,816
======= ======= ========= =========
</TABLE>
16
<PAGE> 16
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
NBLtdMat NBPartFd
-------------------------- ------------------------
1999 1998 1999 1998
----------- ------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 79,478 50,742 89,413 -
Mortality, expense and administration
charges (note 2) ............................. (16,850) (11,240) (114,287) (112,673)
----------- ------- --------- ---------
Net investment activity ...................... 62,628 39,502 (24,874) (112,673)
----------- ------- --------- ---------
Proceeds from mutual fund shares sold ........... 589,165 212,801 2,342,834 1,369,375
Cost of mutual fund shares sold ................. (612,091) (213,183) (2,220,647) (1,169,514)
----------- ------- --------- ---------
Realized gain (loss) on investments .......... (22,926) (382) 122,187 199,861
Change in unrealized gain (loss) on investments . (39,222) (12,717) (502,155) (542,191)
----------- ------- --------- ---------
Net gain (loss) on investments ............... (62,148) (13,099) (379,968) (342,330)
----------- ------- --------- ---------
Reinvested capital gains ........................ - - 955,799 808,960
----------- ------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 480 26,403 550,957 353,957
----------- ------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 761,986 348,091 1,159,627 3,047,800
Transfers between funds ......................... (234,865) (146,743) (2,302,271) (551,497)
Redemptions ..................................... (57,835) (31,227) (459,594) (922,110)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (701) (396) (10,544) (7,349)
Contingent deferred sales charges (note 2) ...... (314) (183) (9,682) (18,634)
Adjustments to maintain reserves ................ 321 225 30 (27)
----------- ------- --------- ---------
Net equity transactions .................... 468,592 169,767 (1,622,434) 1,548,183
----------- ------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 469,072 196,170 (1,071,477) 1,902,140
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 981,318 785,148 9,328,976 7,426,836
----------- ------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 1,450,390 981,318 8,257,499 9,328,976
=========== ======= ========= =========
<CAPTION>
OppGlob PhxBalFd
------------------------- ------------------------
1999 1998 1999 1998
---------- --------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 61,855 61,774 21,606 18,333
Mortality, expense and administration
charges (note 2) ............................. (108,929) (85,201) (11,945) (9,786)
---------- --------- --------- -------
Net investment activity ...................... (47,074) (23,427) 9,661 8,547
---------- --------- --------- -------
Proceeds from mutual fund shares sold ........... 2,303,088 2,675,792 78,572 143,908
Cost of mutual fund shares sold ................. (2,056,611) (2,232,654) (72,900) (144,310)
---------- --------- --------- -------
Realized gain (loss) on investments .......... 246,477 443,138 5,672 (402)
Change in unrealized gain (loss) on investments . 3,280,514 (210,371) 13,459 80,132
---------- --------- --------- -------
Net gain (loss) on investments ............... 3,526,991 232,767 19,131 79,730
---------- --------- --------- -------
Reinvested capital gains ........................ 715,136 475,445 60,704 29,498
---------- --------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,195,053 684,785 89,496 117,775
---------- --------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,227,953 1,551,016 202,683 143,962
Transfers between funds ......................... (348,998) (79,722) 8,440 (31,417)
Redemptions ..................................... (430,714) (562,042) (33,653) (95,632)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (7,116) (5,709) (1,030) (749)
Contingent deferred sales charges (note 2) ...... (7,553) (12,575) (665) (1,821)
Adjustments to maintain reserves ................ (7,592) (5,842) 50 (7)
---------- --------- --------- -------
Net equity transactions .................... 425,980 885,126 175,825 14,336
---------- --------- --------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 4,621,033 1,569,911 265,321 132,111
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 7,265,693 5,695,782 795,875 663,764
---------- --------- --------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $11,886,726 7,265,693 1,061,196 795,875
========== ========= ========= =======
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
PrBal PrInt PrLgCpGro
-------------------- ------------------ ------------------
1999 1998 1999 1998 1999 1998
-------- ------- ------ ----- ------ ------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 42 - 17 - - -
Mortality, expense and administration
charges (note 2) ............................. (18) - (116) - (57) -
-------- ------- ------ ----- ------ ------
Net investment activity ...................... 24 - (99) - (57) -
-------- ------- ------ ----- ------ ------
Proceeds from mutual fund shares sold ........... 746 - 3,276 - 1,499 -
Cost of mutual fund shares sold ................. (753) - (3,226) - (1,519) -
-------- ------- ------ ----- ------ ------
Realized gain (loss) on investments .......... (7) - 50 - (20) -
Change in unrealized gain (loss) on investments . 96 - 3,405 - 2,702 -
-------- ------- ------ ----- ------ ------
Net gain (loss) on investments ............... 89 - 3,455 - 2,682 -
-------- ------- ------ ----- ------ ------
Reinvested capital gains ........................ 65 - 422 - 204 -
-------- ------- ------ ----- ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 178 - 3,778 - 2,829 -
-------- ------- ------ ----- ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 4,356 - 7,086 - 13,026 -
Transfers between funds ......................... - - 39,644 1,815 5,224 -
Redemptions ..................................... (692) - - - (1,378) -
Annuity benefits ................................ - - - - - -
Annual contract maintenance charge (note 2) ..... - - (2) - - -
Contingent deferred sales charges (note 2) ...... - - - - - -
Adjustments to maintain reserves ................ (5) - (35) 1 20 -
-------- ------- ------ ----- ------ ------
Net equity transactions .................... 3,659 - 46,693 1,816 16,892 -
-------- ------- ------ ----- ------ ------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 3,837 - 50,471 1,816 19,721 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... - - 1,816 - - -
-------- ------- ------ ----- ------ ------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 3,837 - 52,287 1,816 19,721 -
======== ======= ====== ===== ====== ======
<CAPTION>
PrLgCpVal
-----------------
1999 1998
----- -------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 4 -
Mortality, expense and administration
charges (note 2) ............................. (3) -
----- -------
Net investment activity ...................... 1 -
----- -------
Proceeds from mutual fund shares sold ........... 3 -
Cost of mutual fund shares sold ................. (3) -
----- -------
Realized gain (loss) on investments .......... - -
Change in unrealized gain (loss) on investments . (58) -
----- -------
Net gain (loss) on investments ............... (58) -
----- -------
Reinvested capital gains ........................ 4 -
----- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (53) -
----- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,100 -
Transfers between funds ......................... - -
Redemptions ..................................... - -
Annuity benefits ................................ - -
Annual contract maintenance charge (note 2) ..... - -
Contingent deferred sales charges (note 2) ...... - -
Adjustments to maintain reserves ................ - -
----- -------
Net equity transactions .................... 1,100 -
----- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 1,047 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... - -
----- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $1,047 -
===== =======
</TABLE>
18
<PAGE> 18
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
PrSmCap STComStk StTotRet
---------------------- ----------------------- -----------------------
1999 1998 1999 1998 1999 1998
---------- ------- --------- -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 4 - - - - 4,227
Mortality, expense and administration
charges (note 2) ............................. (226) - (5,395) - (38,412) (22,635)
---------- ------- --------- -------- --------- ---------
Net investment activity ...................... (222) - (5,395) - (38,412) (18,408)
---------- ------- --------- -------- --------- ---------
Proceeds from mutual fund shares sold ........... 1,495 - 60,427 - 213,377 377,041
Cost of mutual fund shares sold ................. (1,454) - (57,029) - (158,861) (384,883)
---------- ------- --------- -------- --------- ---------
Realized gain (loss) on investments .......... 41 - 3,398 - 54,516 (7,842)
Change in unrealized gain (loss) on investments . 9,774 - 60,703 - 941,083 473,589
---------- ------- --------- -------- --------- ---------
Net gain (loss) on investments ............... 9,815 - 64,101 - 995,599 465,747
---------- ------- --------- -------- --------- ---------
Reinvested capital gains ........................ 769 - 114,677 - 694,656 21,813
---------- ------- --------- -------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 10,362 - 173,383 - 1,651,843 469,152
---------- ------- --------- -------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 45,455 - 403,570 - 1,173,612 307,761
Transfers between funds ......................... 42,914 454 431,123 - 335,991 (207,357)
Redemptions ..................................... (544) - (4,495) - (291,607) (154,396)
Annuity benefits ................................ - - - - - -
Annual contract maintenance charge (note 2) ..... 0 - (114) - (2,266) (1,357)
Contingent deferred sales charges (note 2) ...... - - (44) - (2,761) (2,073)
Adjustments to maintain reserves ................ 11 12 451 - 90 34
---------- ------- --------- -------- --------- ---------
Net equity transactions .................... 87,836 466 830,491 - 1,213,059 (57,388)
---------- ------- --------- -------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 98,198 466 1,003,874 - 2,864,902 411,764
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 466 - - - 2,024,780 1,613,016
---------- ------- --------- -------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 98,664 466 1,003,874 - 4,889,682 2,024,780
========== ======= ========= ======== ========= =========
<CAPTION>
TemForFd
-----------------------
1999 1998
--------- ---------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 154,634 111,484
Mortality, expense and administration
charges (note 2) ............................. (60,463) (59,378)
--------- ---------
Net investment activity ...................... 94,171 52,106
--------- ---------
Proceeds from mutual fund shares sold ........... 2,870,259 1,293,020
Cost of mutual fund shares sold ................. (3,044,788) (1,287,738)
--------- ---------
Realized gain (loss) on investments .......... (174,529) 5,282
Change in unrealized gain (loss) on investments . 1,497,360 (678,199)
--------- ---------
Net gain (loss) on investments ............... 1,322,831 (672,917)
--------- ---------
Reinvested capital gains ........................ 46,781 328,019
--------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,463,783 (292,792)
--------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 818,678 917,664
Transfers between funds ......................... (235,418) (948,243)
Redemptions ..................................... (244,205) (423,401)
Annuity benefits ................................ - -
Annual contract maintenance charge (note 2) ..... (4,517) (3,898)
Contingent deferred sales charges (note 2) ...... (3,244) (5,931)
Adjustments to maintain reserves ................ 161 (65)
--------- ---------
Net equity transactions .................... 331,455 (463,874)
--------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 1,795,238 (756,666)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 4,069,618 4,826,284
--------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $5,864,856 4,069,618
========= =========
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31, 1999 AND 1998
<TABLE>
<CAPTION>
WPEmGro WPGIFxInc
-------------------------- ------------------------
1999 1998 1999 1998
----------- --------- -------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ......................... $ - - 3,381 3,459
Mortality, expense and administration
charges (note 2) ............................. (59,051) (61,048) (982) (821)
----------- --------- -------- -------
Net investment activity ...................... (59,051) (61,048) 2,399 2,638
----------- --------- -------- -------
Proceeds from mutual fund shares sold ........... 1,515,362 1,097,855 248,010 8,819
Cost of mutual fund shares sold ................. (1,258,934) (912,250) (248,689) (8,789)
----------- --------- -------- -------
Realized gain (loss) on investments .......... 256,428 185,605 (679) 30
Change in unrealized gain (loss) on investments . 806,488 95,404 (4,664) 1,566
----------- --------- -------- -------
Net gain (loss) on investments ............... 1,062,916 281,009 (5,343) 1,596
----------- --------- -------- -------
Reinvested capital gains ........................ 637,805 - - -
----------- --------- -------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,641,670 219,961 (2,944) 4,234
----------- --------- -------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 873,907 1,272,369 33,961 64,115
Transfers between funds ......................... (1,067,817) (414,970) (122,983) 81,989
Redemptions ..................................... (460,638) (547,689) (706) (400)
Annuity benefits ................................ - - - -
Annual contract maintenance charge (note 2) ..... (5,091) (3,914) (130) (3)
Contingent deferred sales charges (note 2) ...... (5,813) (13,328) (30) (25)
Adjustments to maintain reserves ................ 72 (10) 72 53
----------- --------- -------- -------
Net equity transactions .................... (665,380) 292,458 (89,816) 145,729
----------- --------- -------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. 976,290 512,419 (92,760) 149,963
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 4,992,592 4,480,173 149,963 -
----------- --------- -------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 5,968,882 4,992,592 57,203 149,963
=========== ========= ======== =======
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 20
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(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)
(Continued)
21
<PAGE> 21
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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) (managed for a fee by an affiliated investment advisor)
Nationwide(R) S&P 500 Index Fund - Class R (NWIndxFdR)
(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 (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 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)
22
<PAGE> 22
At December 31, 1999, contract owners have invested in all of the above
funds. The contract owners equity is affected by the investment results
of each fund, equity transactions by contract owners and certain
contract expenses (see note 2). The accompanying financial statements
include only contract owners purchase payments pertaining to the
variable portions of their contracts and exclude any purchase payments
for fixed dollar benefits, the latter being included in the accounts of
the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 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.
(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
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 owners 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.
(Continued)
23
<PAGE> 23
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1999,
for each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
Annual
Contract owners' equity represented by: Units Unit Value Return*
--------- ------------ -----------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
American Century: Benham
Short-Term Government Fund:
Tax qualified ........................ 87,493 $ 23.132624 $ 2,023,943 1%
American Century: Income & Growth Fund:
Tax qualified ........................ 534,684 20.537578 10,981,114 16%
American Century: Twentieth Century
Growth Fund:
Tax qualified ........................ 153,919 117.667874 18,111,321 33%
American Century: Twentieth Century
International Growth Fund:
Tax qualified ........................ 67,212 29.892733 2,009,150 62%
American Century: Twentieth Century
Ultra Fund:
Tax qualified ........................ 958,510 31.115121 29,824,155 40%
Delaware Group Delchester High-Yield
Bond Fund, Inc.- Delchester Fund
Institutional Class:
Tax qualified ........................ 79,605 14.244875 1,133,963 (4)%
Dreyfus A Bonds Plus, Inc.:
Tax qualified ........................ 160,276 12.061566 1,933,180 0%
Dreyfus Appreciation Fund, Inc.:
Tax qualified ........................ 156,211 13.811292 2,157,476 9%
Dreyfus Balanced Fund, Inc.:
Tax qualified ........................ 29,698 11.699291 347,446 9%
Dreyfus S&P 500 Index Fund:
Tax qualified ........................ 692,394 34.392545 23,813,192 19%
The Dreyfus Third Century Fund, Inc.:
Tax qualified ........................ 59,207 33.178138 1,964,378 28%
Evergreen Income and Growth
Fund - Class Y:
Tax qualified ........................ 72,494 19.561585 1,418,098 15%
Federated High Yield Trust:
Tax qualified ........................ 49,637 10.042770 498,493 1%
Federated Investment Series Funds, Inc.-
Federated Bond Fund - Class F:
Tax qualified ........................ 139,182 11.130751 1,549,200 (4)%
Fidelity Advisor Balanced Fund - Class T:
Tax qualified ........................ 86,087 15.455350 1,330,505 3%
Fidelity Advisor Equity Income
Fund - Class T:
Tax qualified ........................ 122,013 16.762859 2,045,287 2%
</TABLE>
24
<PAGE> 24
<TABLE>
<CAPTION>
Annual
Units Unit Value Return*
---------- ------------ ---------
<S> <C> <C> <C> <C>
Fidelity Advisor Growth Opportunities
Fund - Class T:
Tax qualified ............................ 488,519 19.101353 9,331,374 3%
Fidelity Advisor High Yield Fund - Class T:
Tax qualified ............................ 219,180 13.417364 2,940,818 7%
Fidelity Asset Manager(TM):
Tax qualified ............................ 290,579 19.290540 5,605,426 12%
Fidelity Capital & Income Fund:
Tax qualified ............................ 17,840 54.000183 963,363 12%
Fidelity Equity-Income Fund:
Tax qualified ............................ 193,545 83.313397 16,124,891 6%
Fidelity Magellan(R) Fund:
Tax qualified ............................ 1,080,953 35.935860 38,844,976 22%
Fidelity Puritan(R) Fund:
Tax qualified ............................ 637,179 23.106868 14,723,211 2%
Fidelity VIP - High Income Portfolio:
Tax qualified ............................ 4,175 25.512888 106,516 7%
Franklin Mutual Series Fund Inc.-
Mutual Shares Fund - Class I:
Tax qualified ............................ 26,055 11.164707 290,896 13%
INVESCO Dynamics Fund, Inc.:
Tax qualified ............................ 198,949 17.811356 3,543,551 70%
Janus Fund:
Tax qualified ............................ 595,937 29.145619 17,368,953 45%
Janus Twenty Fund:
Tax qualified ............................ 995,837 52.641837 52,422,689 63%
Janus Worldwide Fund:
Tax qualified ............................ 769,694 24.727791 19,032,832 62%
Lazard Small Cap Portfolio - Open Shares:
Tax qualified ............................ 17,391 10.464373 181,986 0%
MFS(R) World Governments Fund - Class A:
Tax qualified ............................ 14,393 35.741694 514,430 (5)%
Nationwide(R) Bond Fund - Class D:
Tax qualified ............................ 37,478 41.898652 1,570,278 (4)%
Non-tax qualified ........................ 73 41.719031 3,045 (4)%
Nationwide(R) Fund - Class D:
Tax qualified ............................ 69,097 123.552516 8,537,108 (2)%
Non-tax qualified ........................ 149 128.692505 19,175 (2)%
Nationwide(R) Growth Fund - Class D:
Tax qualified ............................ 26,654 132.098827 3,520,962 15%
Non-tax qualified ........................ 208 139.479726 29,012 15%
Nationwide(R) S&P 500 Index Fund - Class R:
Tax qualified ............................ 17,851 11.817107 210,947 18%
Nationwide(R) Money Market Fund:
Tax qualified - Pre 12/25/82 ............. 621,449 21.769674 13,528,742 3%
Tax qualified ............................ 27,248 27.412298 746,930 3%
Non-tax qualified ........................ 838 27.585541 23,117 3%
</TABLE>
(Continued)
25
<PAGE> 25
NATIONWIDE VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, Continued
<TABLE>
<CAPTION>
Annual
Units Unit Value Return*
-------- ---------- ---------
<S> <C> <C> <C> <C>
Nationwide(R) Intermediate U.S.
Government Bond Fund - Class D:
Tax qualified ........................... 38,138 11.529833 439,725 (3)%
Neuberger & Berman Genesis Trust
Tax qualified ........................... 71,239 9.512964 677,694 3%
Neuberger & Berman Guardian Trust:
Tax qualified ........................... 379,737 18.411034 6,991,351 7%
Neuberger & Berman Limited Maturity
Bond Fund:
Tax qualified ........................... 119,912 12.095451 1,450,390 0%
Neuberger & Berman Partners Fund:
Tax qualified ........................... 311,323 26.523895 8,257,499 6%
Oppenheimer Global Fund - Class A:
Tax qualified ........................... 315,244 37.706431 11,886,726 56%
Phoenix Balanced Fund Series - Class A:
Tax qualified ........................... 58,295 18.203902 1,061,196 9%
Prestige Balanced Fund - Class A:
Tax qualified ........................... 355 10.809720 3,837 8%
Prestige International Fund - Class A:
Tax qualified ........................... 4,361 11.989686 52,287 19%
Prestige Large Cap Growth Fund - Class A:
Tax qualified ........................... 1,471 13.394083 19,703 33%
Prestige Large Cap Value Fund - Class A:
Tax qualified ........................... 109 9.619068 1,048 (6)%
Prestige Small Cap Fund - Class A:
Tax qualified ........................... 8,135 12.128362 98,664 17%
Strong Common Stock Fund, Inc.
Tax qualified ........................... 69,558 14.432187 1,003,874 39%
Strong Total Return Fund, Inc.:
Tax qualified ........................... 115,792 42.228152 4,889,682 58%
Templeton Foreign Fund - Class I:
Tax qualified ........................... 334,228 17.547470 5,864,856 37%
Warburg Pincus Emerging Growth
Fund - Common Shares:
Tax qualified ........................... 288,739 20.672241 5,968,882 40%
Warburg Pincus Global Fixed-Income
Fund - Common Shares:
Tax qualified ........................... 5,420 10.554122 57,203 (1)%
========== =========
Reserves for annuity contracts in payout phase:
Tax qualified ........................... 225,036
-------------
$ 360,275,782
=============
</TABLE>
* The annual return does not include contract charges satisfied by
surrendering units.
26
<PAGE> 26
Independent Auditors Report
---------------------------
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide Variable Account:
We have audited the accompanying statement of assets, liabilities and
contract owners equity of Nationwide Variable Account (comprised of the
sub-accounts listed in note 1(b)) (collectively, the Account) as of December 31,
1999, and the related statements of operations and changes in contract owners
equity for each of the years in the two year period then ended. These financial
statements are the responsibility of the Accounts management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1999, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of the Account as of December
31, 1999, and the results of its operations and its changes in contract owners
equity for each of the years in the two year period then ended in conformity
with generally accepted accounting principles.
KPMG LLP
Columbus, Ohio
February 18, 2000
27
<PAGE> 27
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA * COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
