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NATIONWIDE SEPARATE ACCOUNT TRUST
ANNUAL REPORT
DECEMBER 31, 1996
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NATIONWIDE SEPARATE ACCOUNT TRUST
ANNUAL REPORT
DECEMBER 31, 1996
TABLE OF CONTENTS
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Independent Auditors' Report............................................................ 1
Statements of Investments:
Small Company Fund................................................................. 2
Capital Appreciation Fund.......................................................... 13
Total Return Fund.................................................................. 15
Government Bond Fund............................................................... 17
Money Market Fund.................................................................. 18
Statements of Assets and Liabilities.................................................... 21
Statements of Operations................................................................ 22
Statements of Changes in Net Assets..................................................... 23
Financial Highlights.................................................................... 28
Notes to Financial Statements........................................................... 33
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INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Trustees of
Nationwide Separate Account Trust:
We have audited the accompanying statements of assets and liabilities, including
the statements of investments, of Nationwide Separate Account Trust (comprised
of the Small Company Fund, Capital Appreciation Fund, Total Return Fund,
Government Bond Fund, and Money Market Fund), as of December 31, 1996, and the
related statements of operations, statements of changes in net assets and the
financial highlights for each of the periods indicated herein. These financial
statements and the financial highlights are the responsibility of Nationwide
Separate Account Trust's management. Our responsibility is to express an opinion
on these financial statements and financial highlights 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 and financial
highlights 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 verification of securities owned as of
December 31, 1996 by confirmation with the custodian and other appropriate audit
procedures. 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 and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the aforementioned funds comprising Nationwide Separate Account Trust as of
December 31, 1996, the results of their operations, the changes in their net
assets and the financial highlights for each of the periods indicated herein, in
conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 21, 1997
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 1
<PAGE> 4
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996
<TABLE>
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COMMON STOCK (87.6%)
AEROSPACE/DEFENSE (2.7%)
20,400 AAR Corp. $ 617,100
10,000 Atlas Converting Equipment ORD
(British Pounds) 112,100
45,300 Aviall, Inc.* 419,025
40,100 B E Aerospace, Inc.* 1,087,712
14,500 Ducommun, Inc.* 313,563
13,500 Gulfstream Aerospace Corp.* 327,375
18,000 Orbital Sciences Corp.* 310,500
29,300 Thiokol Corp, DE 1,311,175
16,000 Tracor, Inc.* 340,000
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4,838,550
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AUTO & AUTO PARTS (0.6%)
7,600 Donaldson, Inc. 254,600
9,820 Garphyttan Industrier (Swedish
Krona) 127,999
5,000 Meiwa Industry Co. (Japanese
Yen) 23,347
30,000 Miller Industries, Inc.* 600,000
20,900 Trinity Holdings ORD (British
Pounds) 100,870
-----------
1,106,816
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BANK/SAVINGS & LOAN (4.0%)
6,000 Banco Latinoamericano de Export
SA Class E 304,500
7,300 Bancorp of Hawaii, Inc. 306,600
2,000 Bank of Iwate (Japanese Yen) 101,146
37,700 Bank United Corp. 1,008,475
1,785 Charter One Financial, Inc. 74,970
29,000 Cullen Frost Bankers, Inc. 964,250
9,600 First Commerce Corp. 373,200
9,500 First Security Corp. DE 320,625
44,600 Glendale Federal Bank Fed.
Savings Commission* 1,036,950
144,000 International Bank of Asia (Hong
Kong Dollars) 95,877
20,000 Reliance Bancorp, Inc. 390,000
13,000 St. Paul Bancorp, Inc. 381,875
10,000 TCF Financial Corp. 435,000
17,000 Texas Regal Bancshares Class A 578,000
19,000 Tokushima Bank ORD (Japanese
Yen) 150,599
10,400 Webster Financial Corp. 382,200
5,500 Zagrebacka Banka GDR* 106,739
1,700 Zions Bancorporation 176,800
-----------
7,187,806
-----------
BASIC MATERIALS (0.2%)
3,000 Denkyosha Co. (Japanese Yen) 20,729
410 Compagnie of Fives-Lille (French
Francs) 38,644
62,500 Futuris Corp. (Australian
Dollars) 85,385
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BASIC MATERIALS (CONTINUED)
30,000 Harrisons Crosfield (British
Pounds) $ 67,773
25,000 Herald Resources (Australian
Dollars) 18,467
2,000 Nihon Decoluxe (Japanese Yen) 24,640
400 Reesink & Co. CVA (Netherland
Guilders) 32,607
4,000 Uehara Sei Shoji (Japanese Yen) 20,987
-----------
309,232
-----------
BUILDING MATERIALS (0.7%)
60,000 AMEC PLC (British Pounds) 94,472
7,000 BE Semiconductor Industries
(Netherland Guilders)* 89,842
5,820 Catena (Swedish Krona) 73,304
863 Deceuninck Plastics Industries
SA (Belgian Francs) 148,885
20,000 Dylex Ltd. (Canadian Dollars)* 53,699
39,000 Hardie (James) Industries
(Australian Dollars) 122,669
24,470 Keller Group ORD (British
Pounds) 76,430
8,900 Lindab AB Class B (Swedish
Krona) 110,142
7,000 Max Co. (Japanese Yen) 116,998
8,000 Nissei Build Kogyo (Japanese
Yen) 58,585
4,000 P S Corp. (Japanese Yen) 66,856
5,000 TOC (Japanese Yen) 44,370
3,000 Toyo Exterior Co. Ltd. (Japanese
Yen) 44,456
22,500 Unicem SPA (Italian Lira)* 146,498
-----------
1,247,206
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BUSINESS SERVICES (2.9%)
14,500 ADT, Ltd.* 331,688
12,000 American Management Systems,
Inc.* 294,000
1,200 Assystem (French Francs) 91,407
13,000 BISYS Group, Inc.* 481,813
10,500 CDI Corp.* 297,938
5,900 Catalina Marketing Corp.* 325,238
6,300 Chodai Co. (Japanese Yen) 154,148
34,900 Christies International PLC
(British Pounds) 138,573
1,000 Content Beheer (Netherland
Guilders) 38,157
4,200 Dainippon Shigyo (Japanese Yen) 26,777
10,000 Daiseki Co. (Japanese Yen) 237,787
7,400 Daisytek International Corp.* 303,400
8,000 Decisionone Holdings Corp.* 132,000
5,000 Iberica of Autopistas SA
(Spanish Pesetas) 106,669
7,000 Kanto Biomedical Laboratory
(Japanese Yen) 108,555
25,300 Leigh Interest (British Pounds) 46,764
</TABLE>
2 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
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NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
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BUSINESS SERVICES (CONTINUED)
12,000 Meitec (Japanese Yen) $ 228,483
11,400 Outdoor Systems, Inc.* 320,625
4,410 Prosegur Comp Seguredad (Spanish
Pesetas) 40,684
9,700 Quick Response Services, Inc.* 276,450
40,100 RCO Holdings (British Pounds) 150,984
35,000 Ricardo Group (British Pounds) 67,089
22,000 Sitel Corp. 310,750
60,130 Shanks & McEwan Group (British
Pounds) 135,840
10,300 Universal Outdoor Holdings, Inc. 242,050
7,500 WPP Group PLC ADR* 322,031
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5,209,900
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CHEMICAL & FERTILIZER (1.4%)
27,170 Amberley Group (British Pounds) 44,175
350 Andreae Noris Zahn (German
Marks) 129,453
12,000 BTP PLC (British Pounds) 62,844
3,000 Borsodchem GDR 75,162
240 Cheminova (Danish Krone) 63,876
6,349 Delta & Pine Land Co. 203,168
56,200 Giovanni Crespi (Italian Lira) 202,180
40 Gurit - Heberlein AG Bearer
(Swiss Francs) 79,839
3,000 Kaigen (Japanese Yen) 22,486
27,100 Lawter International, Inc. 342,138
22,000 Lilly Industries, Inc. 401,500
3,000 Maezawa Kaisei Industries
(Japanese Yen) 84,001
10,300 McWhorter Technologies, Inc.* 235,613
25,500 Nylex (Malaysian Ringgit) 57,553
10,000 Osaka Organic Chemical (Japanese
Yen) 120,617
100 Siegfried AG (Swiss Francs) 93,022
60,000 Snia BPD SPA (Italian Lira) 61,953
5,000 Teikoku Hormone (Japanese Yen) 56,001
290 Tessenderlo Chemical (Belgian
Francs) 124,392
4,000 Tsurumi Soda Co. (Japanese Yen) 20,677
3,000 Werner Soderstom Class B
(Finnish Marks) 74,853
-----------
2,555,503
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COMMERCIAL SERVICES (1.9%)
14,000 Amresco, Inc.* 374,500
14,060 Accustaff, Inc.* 297,018
12,000 Corestaff, Inc.* 284,250
14,000 Danka Business Systems PLC ADR 495,250
8,900 Memco Software Ltd.* 156,862
9,000 Metris Companies, Inc.* 216,000
17,000 Robert Half International, Inc.* 584,375
15,000 Romac International* 330,000
15,000 SOS Staffing Services, Inc.* 157,500
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COMMERCIAL SERVICES (CONTINUED)
11,000 Source Services Corp.* $ 199,375
9,600 Sungard Data Systems, Inc.* 379,200
-----------
3,474,330
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COMMUNICATIONS & MEDIA (1.7%)
70 Affichage Genuss (Swiss Francs) 29,873
420 Bantex (Danish Krone) 26,344
35,000 Blagden Industries ORD (British
Pounds) 129,984
2,000 Broadcasting System of Niigata
(Japanese Yen) 19,988
3,700 Central Newspapers, Inc. 162,800
13,900 Central European Media
Enterprises Ltd.* 441,325
25,700 Chancellor Broadcasting Corp.
Class A* 610,375
26,150 Harte-Hanks Communications, Inc. 725,662
7,000 Independent Newspaper (New
Zealand Dollars) 35,116
6,300 Metro Networks, Inc.* 159,075
105 Orell Fuessli Graph (Swiss
Francs) 86,021
2,500 Schibsted A/S (Norwegian Krone) 46,004
10,000 Snyder Communications, Inc.* 270,000
1,100 UBI Soft Entertainment (French
Francs) 75,115
4,000 Univision Communications, Inc.* 148,000
1,620 Wegener NV (Netherland Guilders) 150,040
-----------
3,115,722
-----------
COMPUTER EQUIPMENT (1.5%)
48,600 Auspex Systems, Inc.* 564,975
40,200 Borland International, Inc.* 218,587
12,100 Casino Data Systems* 83,188
10,500 Citrix Systems, Inc.* 410,156
18,500 D H Technology, Inc.* 444,000
11,000 Fusion Systems Corp.* 233,750
9,100 National Instruments Corp.* 291,200
2,000 Network Appliance, Inc. 101,750
29,100 Peak Technologies Group* 349,200
-----------
2,696,806
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COMPUTER SERVICES (1.2%)
13,000 Computer Data Systems, Inc.* 393,250
11,400 Computer Horizons 438,900
14,300 Keane, Inc. 454,025
15,000 National Techteam, Inc.* 300,000
14,100 Sykes Enterprises* 528,750
-----------
2,114,925
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COMPUTER SOFTWARE (2.2%)
15,200 BMC Software, Inc.* 628,900
10,500 Baan Co. NV* 364,875
6,000 CBT Group PLC ADR* 325,500
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 3
<PAGE> 6
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
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COMPUTER SOFTWARE (CONTINUED)
8,000 Clarify, Inc.* $ 384,000
10,600 Mcafee Associates* 466,400
18,000 Puma Technology, Inc.* 310,500
12,000 Pure Atria Corp.* 297,000
10,200 Rational Software Corp.* 403,538
7,000 Scopus Technology, Inc.* 325,500
7,000 Visio Corp.* 346,500
4,000 Wind River Systems* 189,500
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4,042,213
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CONGLOMERATES (2.7%)
1,000 Aeon Credit Service (Japanese
Yen) 62,032
10,040 Ark ASA (Norwegian Krone) 70,756
800 Azkoyen SA (Spanish Pesetas) 98,282
6,000 Banco De Valencia (Spanish
Pesetas) 116,933
41,571 Breakwater Resources (Canadian
Dollars)* 79,160
22,000 Bunka Shutter Co. Ltd. (Japanese
Yen) 125,097
4,400 CTI Engineering (Japanese Yen) 92,875
500 Cewe Color Holdings (German
Marks) 113,555
2,000 Co-Cos Nobuoka Co. (Japanese
Yen) 22,400
37,920 Crest Packaging PLC (British
Pounds) 53,216
20 Daetwyler Holding (Swiss Francs) 32,323
60 Disetronic Holding (Swiss
Francs)* 132,271
31,000 Elec & Eltek International Co.
Ltd. (Singapore Dollars) 117,800
1,400 Esselte AB (Swedish Krona) 30,961
1,800 Euro D'Extincteurs (French
Francs) 111,489
6,800 Fag Kugelfischer (German Marks) 92,440
31,310 Frontline (Swedish Krona)* 108,219
3,000 Fujix Ltd. (Japanese Yen) 23,546
830 GTI Holding (Netherland
Guilders) 104,848
380 Galencia Holding AG (Swiss
Francs) 135,280
5,700 Gerresheimer Glas AG ORD (German
Marks) 123,905
160,000 Goodwill Investment Holding
(Hong Kong Dollars) 69,813
130 Huber Suhner AG (Swiss Francs) 130,707
1,200 Huhtamaki OY (Finnish Marks) 55,717
4,000 Industria Macchine Automatic
(Italian Lira) 15,653
140 Jamo A/S (Danish Krone)* 10,917
740 Jyske Bank (Danish Krone) 55,573
630 Kansas Erhvervbeklaed Odense A/S
(Danish Krone) 44,322
11,000 Low and Bonar ORD (British
Pounds) 76,622
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CONGLOMERATES (CONTINUED)
50,700 McPhersons Ltd. (Australian
Dollars)* $ 140,945
3,000 Morito Co. (Japanese Yen) 24,787
3,000 Nokian Tyres Ltd. (Finnish
Marks) 65,090
2,200 Oyo Corp. (Japanese Yen) 95,339
30,000 Perseverence Corp. (Australian
Dollars) 19,301
230 Phoenix Meccano (Swiss Francs) 119,908
10,000 Premdor, Inc. (Canadian
Dollars)* 94,119
1,000 Puleva Union (Spanish Pesetas)* 21,526
260 Saurer AG Arbon (Swiss Francs) 112,311
52,000 Savage Resources (Australian
Dollars) 56,998
12,000 Scandia Consult AB (Swedish
Krona) 82,601
4,120 Scandinavian Mobility
International (Danish Krone)* 67,748
4,000 Shaw Industries Ltd. Class A
(Canadian Dollars) 80,840
8,000 Shinki Comp. Ltd. (Japanese Yen) 184,716
65 Sig Schw Sirx (Swiss Francs) 164,110
2,310 Sol Melia SA (Spanish Pesetas)* 82,579
1,280 Synthelabo (French Francs) 138,127
6,000 Takara Standard Co. (Japanese
Yen) 49,884
60 Tecan (Swiss Francs)* 84,233
26,000 Tecnost SPA (Italian Lira) 69,766
7,350 Toolex Alpha NV (Netherland
Guilders)* 76,487
4,000 Tsutsumi Jewelry Co. (Japanese
Yen) 98,906
2,000 Van Ommeren (KON) CVA
(Netherland Guilders) 90,189
38,000 Varitronix International (Hong
Kong Dollars) 68,779
2,250 Vidrala PTA (Spanish Pesetas) 155,333
33,400 Weir Group (British Pounds) 148,622
12,300 Westburne, Inc. (Canadian
Dollars)* 110,382
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4,810,338
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CONSTRUCTION & HOUSING (1.8%)
2,400 Alinco (Japanese Yen) 21,091
350 Bien-Haus AG (German Marks) 93,115
58,000 Bryant Group (British Pounds) 134,999
20,400 Coachmen Industries, Inc. 578,850
200 Dyckerhoff & Widmann (German
Marks) 28,421
7,000 Gleeson (MJ) ORD (British
Pounds) 101,831
79,600 Heiton Holdings PLC (Irish
Punts) 129,343
400 Hollandsche Beton (Netherland
Guilders) 82,766
950 IHC Caland (Netherland Guilders) 54,209
5,000 Japan Airport Terminal Co.
(Japanese Yen) 61,170
</TABLE>
4 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 7
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
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CONSTRUCTION & HOUSING (CONTINUED)
10,000 Matsuo Bridge (Japanese Yen) $ 44,801
69,930 McCarthy & Stone (British
Pounds) 113,698
8,000 Nippon Denwa Shisetsu (Japanese
Yen) 73,749
15,000 Nissei Industries (Japanese Yen) 107,263
13,500 Oakwood Homes Corp. 308,813
16,000 SXL Corp. (Japanese Yen) 114,414
1,600 Svedala Industries (Swedish
Krona) 27,065
3,000 Tanabe Industries (Japanese Yen) 28,431
18,100 Texas Industries, Inc. 916,312
39,150 Wilson (Connolly) (British
Pounds) 111,560
14,600 Wilson Bowden (British Pounds) 117,939
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3,249,840
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CONSUMER GOODS & SERVICES (3.7%)
12,000 Alberto Culver Co. Class A 495,000
19,500 Arbor Drugs, Inc. 338,812
10,000 Bush Industries Class A 192,500
4,400 Chofu Seisakusho (Japanese Yen) 82,640
14,200 Devry, Inc.* 333,700
3,000 Enix Corp. (Japanese Yen) 67,718
34,000 Fisher Paykel Industries (New
Zealand Dollars) 133,329
11,000 Fuji Denki Reinki ORD (Japanese
Yen) 103,300
19,000 Helen of Troy* 418,000
14,500 ITT Educational Services, Inc.* 335,312
2,640 Leica Camera (German Marks)* 82,227
15,000 Osmonics, Inc.* 330,000
8,000 Rinnai (Japanese Yen) 160,593
1,000 Sangetsu Co. (Japanese Yen) 20,849
16,000 Sola International* 608,000
12,500 TCA Cable TV, Inc. 376,562
12,000 USA Detergents, Inc.* 499,500
12,500 Warnaco Group Class A 370,312
18,000 Watts Industries, Inc 429,750
12,500 Westpoint Stevens, Inc.* 373,438
16,500 Westwood One, Inc.* 274,313
10,500 Wolverine World Wide, Inc. 304,500
14,500 York Group, Inc. 282,750
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6,613,105
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CONTAINERS (0.6%)
13,000 Alltrista Corp.* 334,750
6,900 Aptargroup, Inc. 243,225
11,200 Libbey, Inc. 312,200
13,800 Sealright Co., Inc. 144,900
-----------
1,035,075
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DATA PROCESSING & REPRODUCTION (0.4%)
9,120 Array Printers AB Class B*
(Swedish Krona) 86,819
4,600 Enator AB (Swedish Krona)* 117,560
7,200 Frontec AB (Swedish Krona)* 124,429
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DATA PROCESSING & REPRODUCTION (CONTINUED)
1,900 Hummingbird Communications, Inc.
(Canadian Dollars)* $ 54,757
9,000 Intec, Inc. (Japanese Yen) 126,389
1,460 Tietithededas OY Class B
(Finnish Marks) 123,193
1,500 WM-Data AB Class B (Swedish
Krona) 129,613
-----------
762,760
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ELECTRICAL EQUIPMENT (0.6%)
7,000 Chicago Miniature Lamp, Inc.* 290,500
16,100 Continental Circuits Corp.* 173,075
14,550 Holophane Corp.* 276,450
20,700 Nu Horizons Electronics Corp.* 164,306
5,000 Seiwa Electric Manufacturing Co.
(Japanese Yen) 59,447
7,100 Teradyne, Inc.* 173,063
-----------
1,136,841
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ELECTRONICS (4.3%)
1,750 Allgon AB (Swedish Krona) 42,161
270 Batenburg Beheer (Netherland
Guilders) 39,024
20,500 Black Box Corp. DE* 845,625
436,000 Champion Technology (Hong Kong
Dollars) 82,861
5,150 Chemring Group PLC ORD (British
Pounds) 24,855
300 Cubic Modulsystem Class B
(Danish Krone) 24,411
1,550 Eff Eff Fritz Fuss Gmbh & Co.
(German Marks) 64,872
1,500 Electricas Reunidas de Zaragoza
SA (Spanish Pesetas) 59,965
400 Eriks Holdings NV (Netherland
Guilders) 34,572
5,000 Geomatec Co. (Japanese Yen) 128,802
17,850 Glenayre Technologies, Inc.* 384,891
11,000 Iwatsu Electric (Japanese Yen) 41,604
4,000 Jostac (Japanese Yen) 44,111
18,000 Jeol (Japanese Yen)* 104,678
15,000 KLA Instruments Corp.* 532,500
15,200 Kent Electronics* 391,400
14,200 Macro 4 PLC (British Pounds) 117,868
14,400 Marshall Industries* 441,000
14,400 Methode Electronics, Inc. Class
A 291,600
6,000 Nihon Dempa Kogyo (Japanese Yen) 97,183
6,800 Nitto Electric Works (Japanese
Yen) 114,827
28,300 Pioneer Standard Electronics,
Inc. 371,438
980 Radiall (French Francs) 92,558
2,000 Riso Kagaku Corp. (Japanese Yen) 128,198
3,000 Ryoyo Electric (Japanese Yen) 54,278
8,100 SCI Systems, Inc.* 361,463
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 5
<PAGE> 8
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
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ELECTRONICS (CONTINUED)
1,600 Saes Getters SPA (Italian Lira) $ 24,729
45,100 Sanderson Electronic PLC
(British Pounds) 114,236
4,500 Securitas AB (Swedish Krona) 130,822
15,900 Synopsys, Inc.* 735,375
786,000 Techtronic (Hong Kong Dollars) 116,860
29,000 Tencor Instruments* 764,875
910 Twentsche Kabel Holdings
(Netherland Guilders) 47,349
8,000 Uniphase Corp.* 420,000
62,000 Venture Manufacturing (Singapore
Dollars) 154,246
1,500 Vossloh (German Marks) 53,533
8,000 Xilinx, Inc.* 294,500
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7,773,270
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ELECTRONICS-SEMICONDUCTOR (4.6%)
6,300 ASM Lithography Holding NV* 313,819
5,000 Actel Corp. 118,750
8,200 Altera Corp.* 596,037
32,800 Dallas Semiconductor Corp. 754,400
8,000 Dupont Photomasks, Inc.* 363,000
12,200 FSI International, Inc.* 183,000
21,100 Maxim Integrated Products, Inc.* 912,575
16,700 Microchip Technology, Inc.* 849,612
19,000 Novellus Systems, Inc.* 1,029,563
15,000 Sanmina Corp.* 847,500
46,000 Sierra Semiconductor Corp.* 690,000
14,000 Sipex Corp.* 451,500
25,000 Vitesse Semiconductor Corp.* 1,137,500
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8,247,256
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ENVIRONMENTAL SERVICES (0.5%)
38,500 Allied Waste Industries, Inc.* 356,125
18,000 USA Waste Services, Inc.* 573,750
-----------
929,875
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FINANCIAL SERVICES (5.1%)
9,000 Aames Financial Corp. 322,875
22,000 Amerin Corp.* 566,500
3,000 Cap Volmac Group (Netherland
Guilders) 87,067
10,000 Capital RE Corp. 466,250
12,000 Capmac Holdings, Inc. 397,500
15,200 City National Corp. 328,700
25,000 D&N Financial Corp.* 418,750
11,000 Enhance Financial Services Group 401,500
8,500 Executive Risk, Inc. 314,500
8,000 First Financial Caribbean Corp. 222,000
22,500 Hibernia Corp. Class A 298,125
7,000 Ichiyoshi Securities (Japanese
Yen) 28,888
10,000 Jameson Inns, Inc. 132,500
11,000 Liberty Corp. SC 431,750
40,000 Life USA Holding, Inc.* 480,000
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FINANCIAL SERVICES (CONTINUED)
25,040 London Forfaiting Co. (British
Pounds) $ 128,564
42,500 Moneygram Payment Systems, Inc.* 563,125
10,000 Nac Re Corp. 338,750
4,650 OM Gruppen AB (Swedish Krona) 139,609
12,000 Patriot American Hospitality,
Inc. 517,500
3,000 Promise Co. Ltd. (Japanese Yen) 147,325
17,500 R & G Financial Corp. 415,625
22,900 Recordati SPA (Italian Lira) 167,175
700 Shohkoh Fund (Japanese Yen) 151,977
9,100 Starwood Lodging Trust 501,638
17,500 Terra Nova (Bermuda) Holdings 376,250
24,000 Titan Holdings, Inc. 396,000
14,000 Transaction System Architects
Class A* 465,500
870 Union Financiere-France Banque
(French Francs) 93,716
-----------
9,299,659
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FOOD & BEVERAGE (0.8%)
3,000 B-R 31 Ice Cream (Japanese Yen) 26,622
8,000 Bush Boake Allen, Inc.* 213,000
48,400 Email ORD Ltd. (Australian
Dollars) 156,464
8,000 Hokkaido Coca-Cola Bottling
(Japanese Yen) 98,561
71,400 Illovo Sugar Ltd. (South African
Rand) 129,751
40,100 La Doria SPA (Italian Lira) 155,600
2,520 Louis Dreifus Citrus (French
Francs) 82,405
19,000 Marudai Food Co. (Japanese Yen) 101,327
250 Nordstern Lebensmittel AG
(German Marks) 39,095
19,000 Shoei Foods Corp. (Japanese Yen) 102,473
20,000 Soken Co. Ltd. (Japanese Yen) 75,816
48,000 Thorntons PLC (British Pounds) 166,764
5,000 Yokohama Reito (Japanese Yen) 52,124
-----------
1,400,002
-----------
FOREST PRODUCTS (0.3%)
5,000 Hokuetsu Paper Mills (Japanese
Yen) 28,905
1,700 Mayr-Melnhof Karton (Austrian
Schillings)* 83,122
23,800 Meyer International (British
Pounds) 147,452
2,560 Miquel Y Costas (Spanish
Pesetas)* 84,235
10,000 Munksjoe AB (Swedish Krona) 101,054
29,000 Nippon Hi-Pack Co. (Japanese
Yen) 169,897
-----------
614,665
-----------
</TABLE>
6 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 9
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
FURNISHINGS & APPLIANCES (0.3%)
5,300 Kimball International, Inc.
Class B $ 219,288
10,400 Rival Co. 258,700
-----------
477,988
-----------
GOLDMINES (0.2%)
150,000 Black Hawk Mining (Canadian
Dollars)* 71,126
52,000 Deelkral Gold Mines (South
African Rand)* 36,131
7,700 Free State Consold. Gold Mines
Ltd. (South African Rand) 56,383
8,200 Harmony Gold Mining (South
African Rand) 67,933
4,000 Hullas Del Coto Cortes (Spanish
Pesetas) 78,724
-----------
310,297
-----------
HEALTHCARE (5.2%)
26,900 Adac Labs 642,238
15,000 Amerisource Health Corp. Class
A* 723,750
7,600 Amersham International (British
Pounds) 149,581
12,000 Bio-Rad Labs Class A* 360,000
8,000 Biofermin Pharmaceuticals
(Japanese Yen) 74,438
8,137 Block Drug, Inc. Class A 374,302
26,000 Cardiac Pathways Corp.* 308,750
20,000 Cohr, Inc.* 540,000
14,500 Corvel Corp.* 420,500
2,900 Elekta Class B (Swedish Krona) 102,995
35,900 Esaote Biomedica SPA (Italian
Lira)* 113,331
2,000 Fesil ASA (Norwegian Krone) 25,841
25,500 Healthsource, Inc.* 334,688
19,900 Incontrol, Inc.* 159,200
18,200 Kinetic Concepts, Inc. 222,950
77,200 Life Sciences International
(British Pounds) 116,269
7,100 Lincare Holdings, Inc.* 291,100
45,600 London International Group PLC
(British Pounds) 128,769
5,950 Mayborn Group PLC ORD (British
Pounds) 20,163
25,000 Mentor Corp. Minnesota 737,500
20,000 Nacional De Drogas (Mexican
Pesos) 59,705
12,200 National Surgery Centers, Inc.* 463,600
18,500 Nellcor Puritan Bennet, Inc.* 404,687
1,100 Neurosearch (Danish Krone)* 48,970
25,000 Nitinol Medical Technologies,
Inc.* 312,500
12,500 Occusystems, Inc.* 337,500
9,400 Parexel International Corp.* 485,275
15,000 Physician Sales & Service, Inc.* 215,625
15,000 Physio-Control International
Corp.* 337,500
8,000 SRL (Japanese Yen) 121,306
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
HEALTHCARE (CONTINUED)
290 Superfos (Danish Krone) $ 36,625
8,700 Sybron International Corp.* 287,100
8,000 Toa Medical Electronics
(Japanese Yen) 130,266
18,000 VWR Scientific Products, Inc.* 301,500
-----------
9,388,524
-----------
INDUSTRIAL MFG. & PROCESSING (0.2%)
13,700 Waters Corp.* 416,138
-----------
INDUSTRIAL MISC. (1.6%)
156,000 ASM Pacific Technology (Hong
Kong Dollars) 121,010
11,400 Apogee Enterprises 453,150
32,000 BMC Industries, Inc. Minnesota 1,008,000
11,900 Brady WH Co. 293,038
48,600 Carraro SPA (Italian Lira) 223,742
810 Ecia (French Francs) 124,958
9,000 Pentair, Inc. 290,250
1,485 Semperit AG Holdings (Austrian
Schillings) 73,979
800 Sylea (French Francs) 87,560
1,000 Tenryu Saw Manufacturing Co.
(Japanese Yen) 19,643
6,490 Varlen Corp. 133,451
-----------
2,828,781
-----------
INSURANCE (1.8%)
9,000 CMAC Investment Corp. 330,750
7,000 Conseco, Inc. 446,250
1,100 E.W. Blanch Holdings Co. 22,138
14,000 Everest Reinsurance Holdings,
Inc. 402,500
4,300 FBL Financial Group, Inc. 106,962
10,000 Frontier Insurance Group 382,500
22,000 Heath (C.E.) PLC (British
Pounds) 32,004
12,000 IBEX Technologies (Canadian
Dollars)* 49,904
38,390 Lloyds Thomson PLC 124,835
9,100 MMI Companies, Inc. 293,475
31,000 New Cap Reinsurance Corp.
(Australian Dollars)* 71,406
40,000 Presidential Life Corp. 482,500
11,700 W.R. Berkley Corp. 593,775
-----------
3,338,999
-----------
LEISURE/ENTERTAINMENT (0.7%)
13,000 First Capital Corp. (Singapore
Dollars) 39,219
3,100 H I S Co. Ltd. (Japanese Yen) 149,565
816 Infogrames Entertainment (French
Francs)* 94,177
64,110 Kunick PLC (British Pounds) 28,528
10,000 Premier Parks, Inc.* 321,250
14,000 Regal Cinemas, Inc.* 430,500
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 7
<PAGE> 10
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
LEISURE/ENTERTAINMENT (CONTINUED)
7,000 Shingakukai Co. Ltd. (Japanese
Yen) $ 45,231
6,000 VBH Holding AG (German Marks) 133,541
110,000 Yue Yuen Industrial Holdings Co.
(Hong Kong Dollars) 41,953
-----------
1,283,964
-----------
LODGING (1.0%)
10,900 Doubletree Corp.* 490,500
6,000 Marcus Corp. 127,500
46,700 Prime Hospitality Corp.* 753,038
18,000 Wyndham Hotel Corp.* 443,250
-----------
1,814,288
-----------
MACHINERY & CAPITAL GOODS (1.5%)
12,100 Alamo Group, Inc. 207,213
10,000 Daiwa House Industry Co. Ltd.
(Japanese Yen) 79,176
10,600 Dionex Corp.* 371,000
7,000 IDEX Corp. 279,125
11,000 Kaydon Corp. 518,375
7,500 Lincoln Electric Co. Class A 226,875
13,600 Stewart & Stevenson Services,
Inc. 396,100
17,100 Wolverine Tube Co.* 602,775
-----------
2,680,639
-----------
MACHINERY & ENGINEERING (1.1%)
6,000 Asahi Diamond Industrial
(Japanese Yen) 54,277
6,090 Carclo Engineering Group ORD
(British Pounds) 21,366
3,500 Cardo AB (Swedish Krona) 96,880
122,000 Chen Hsong ORD (Hong Kong
Dollars) 74,131
400 DMW Corp. (Japanese Yen) 21,022
1,000 Duerr Beteiligungs AG (German
Marks) 31,601
18,000 FKI PLC (British Pounds) 62,536
2,000 Glory (Japanese Yen) 46,696
550 Hoek's Machine (Netherland
Guilders) 52,148
1,200 Hoganas AB (Swedish Krona) 42,004
3,000 Koito Industries (Japanese Yen) 25,330
1,500 KCI Konecranes International
(Finnish Marks)* 47,190
6,400 Laird Group ORD (British Pounds) 43,484
360 Le Carbone Lorraine (French
Francs) 68,002
114,000 MacMahon Holdings (Australian
Dollars) 101,414
820 Manitou (French Francs) 89,907
11,700 McKechnie ORD (British Pounds) 110,632
11,000 Nippon Cable System (Japanese
Yen) 97,614
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
MACHINERY & ENGINEERING (CONTINUED)
10,000 Odawara Engineering (Japanese
Yen) $ 104,247
5,600 Oiles Corp. (Japanese Yen) 167,899
7,000 Ricoh Elemex (Japanese Yen) 97,700
31,000 Scapa Group (British Pounds) 130,250
96,200 Senior Engineering Group
(British Pounds) 177,813
7,000 Siddons Ramset (Australian
Dollars) 37,252
20,000 Sodick (Japanese Yen)* 165,417
600 Va Technologie AG (Austrian
Schillings) 94,073
-----------
2,060,885
-----------
MATERIALS & PROCESSING (2.6%)
15,000 Applied Extrusion Technologies,
Inc.* 157,500
22,000 CFC International, Inc.* 247,500
11,000 Cambrex Corp. 360,250
25,000 Chirex, Inc.* 300,000
22,000 Crompton & Knowles Corp.* 423,500
10,500 Culligan Water Technologies,
Inc.* 425,250
19,500 Geon Corp. 382,688
20,000 Hexcel Corp.* 325,000
35,000 International Specialty
Products, Inc.* 428,750
14,800 OM Group, Inc. 399,600
22,000 Rock-Tenn Co. Class A 434,500
55,000 Strategic Distribution, Inc.* 433,125
25,000 Synthetic Industries* 406,250
-----------
4,723,913
-----------
METALS/MINING (0.2%)
14,500 Pittston Brink's Group 391,500
-----------
METAL PRODUCT & FABRICATION (0.7%)
13,600 Cook (William) PLC ORD (British
Pounds) 82,629
30,000 Croesus Mining (Australian
Dollars) 19,539
13,860 Falck Acciaierie Ferriere Lomb
(Italian Lira) 55,376
11,000 Itoki Crebio Corp. (Japanese
Yen) 73,163
15,000 Oregon Metallurgical Corp.* 483,750
3,000 Osaka Steel Co. Ltd. (Japanese
Yen) 40,062
69,600 Portman Mining Ltd. (Australian
Dollars) 130,465
4,800 Titanium Metals Corp.* 157,800
62,580 Tubacex SA (Spanish Pesetas) 106,325
2,200 Von Roll (Swiss Francs)* 37,522
-----------
1,186,631
-----------
</TABLE>
8 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 11
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
OFFICE EQUIPMENT (0.4%)
9,000 Miller (Herman), Inc.* $ 509,625
10,700 Viking Office Products, Inc.* 285,556
-----------
795,181
-----------
OIL & GAS/ENERGY (9.6%)
16,414 Avgold Ltd. (South African
Rand)* 38,601
6,700 Barrett Resources Corp.* 285,587
1,300 Blom ASA (Norwegian Krone) 36,545
14,900 Brown (Tom), Inc.* 311,037
4,000 Cairn Energy USA, Inc.* 40,000
7,000 Caltex Australia Ltd.
(Australian Dollars) 25,798
6,500 Camco International, Inc. 299,812
13,800 Chieftain International, Inc.* 358,800
4,400 Cliffs Drilling Co.* 278,300
7,000 Cooper Cameron Corp.* 535,500
22,500 Dailey Petroleum Services, Inc.* 236,250
24,700 Dawson Production Services,
Inc.* 382,850
14,300 Dreco Energy Service Ltd. Class
A* 523,738
11,500 Drilex International, Inc.* 138,000
7,000 Energy Ventures, Inc.* 356,125
4,000 Ensco International, Inc.* 194,000
11,900 Falcon Drilling, Inc.* 467,075
19,000 Flores & Rucks, Inc.* 1,011,750
7,600 Forcenergy, Inc.* 275,500
43,000 Global Industries, Ltd.* 800,875
7,600 Global Marine, Inc.* 156,750
52,500 Gulf Canada Resources Ltd. ORD* 387,188
5,000 Lukoil Holdings ADR 224,626
16,500 Marine Drilling Companies, Inc.* 324,844
6,300 Mosenergo ADR 144A** 190,890
59,200 Nabors Industries, Inc.* 1,139,600
12,700 National-Oilwell, Inc.* 390,525
5,000 Noble Affiliates, Inc. 239,375
12,500 Nuevo Energy Co.* 650,000
28,300 Oceaneering International, Inc.* 449,263
23,200 Offshore Logistics, Inc.* 449,500
14,800 Petroleum Geo Services ADR* 577,200
64,400 Pride Petroleum Services, Inc.* 1,497,300
16,100 Production Operators Corp. 748,650
10,000 Saipem (Italian Lira) 45,906
12,000 Seitel, Inc.* 480,000
15,900 Smith International, Inc.* 713,513
12,000 Stone Energy Corp.* 358,500
42,400 Texas Meridian Resources Corp.* 726,100
55,200 Titan Exploration, Inc.* 662,400
15,000 Tuboscope Vetco International
Corp.* 232,500
5,000 Veritas DGC, Inc. 92,500
-----------
17,333,273
-----------
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
PHARMACEUTICALS (1.0%)
5,500 Agouron Pharmaceuticals, Inc.* $ 372,625
11,000 Dura Pharmaceuticals, Inc.* 525,250
11,100 Gilead Sciences, Inc.* 277,500
14,800 Ligand Pharmaceuticals, Inc.
Class B* 220,150
18,000 Regeneron Pharmaceuticals, Inc.* 290,250
6,200 United Drug (Irish Punts) 34,106
16,000 Yoshitomi Pharmaceutical
Industries (Japanese Yen) 126,544
-----------
1,846,425
-----------
PRODUCER DURABLES (1.8%)
48,000 Accent Color Sciences, Inc.* 408,000
20,000 Allied Products Corp. DE 595,000
20,000 Avondale Industries, Inc.* 430,000
40,000 Aztec Manufacturing Co.* 335,000
21,000 Halter Marine Group, Inc.* 288,750
23,000 Rohr, Inc.* 520,375
24,000 Special Devices, Inc.* 426,000
24,500 Titan Wheel International, Inc. 312,375
-----------
3,315,500
-----------
PUBLISHING (0.5%)
7,100 Houghton Mifflin Co. 402,037
9,333 Pulitzer Publishing Co. 432,818
-----------
834,855
-----------
REAL ESTATE (0.6%)
13,600 Bradford Property Trust PLC ORD
(British Pounds) 61,681
18,000 Cesar Co. (Japanese Yen) 93,823
100,000 Grand Hotel Holdings Class A
(Hong Kong Dollars) 42,017
39,200 Great Portland Estates (British
Pounds) 140,886
18,600 NHP, Inc.* 288,300
44,820 Regalian Properties New ORD
(British Pounds)*** 24,930
235,940 Regalian Properties (British
Pounds) 135,273
99,000 TBI PLC (British Pounds) 127,075
14,500 United Dominion Realty Trust 224,750
-----------
1,138,735
-----------
RESTAURANTS (0.6%)
5,000 Boston Chicken, Inc.* 179,375
25,000 PJ America, Inc.* 450,000
14,300 Planet Hollywood International,
Inc. Class A* 282,425
5,400 Starbucks Corp.* 154,575
-----------
1,066,375
-----------
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 9
<PAGE> 12
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
RETAIL STORES (2.5%)
14,400 99 Cents Only Stores* $ 235,800
13,600 Borders Group, Inc.* 487,900
165,000 Budgens PLC (British Pounds) 124,251
11,250 Consolidated Products Co.* 144,844
7,875 Consolidated Stores Corp.* 253,969
2,000 Daiichi Corp. (Japanese Yen) 40,320
3,000 Dennys Japan Co. Ltd. (Japanese
Yen) 91,497
12,000 Dollar Tree Stores, Inc.* 459,000
6,300 Fast Retailing Co. (Japanese
Yen) 161,204
5,100 Groupe Zannier (French Francs) 114,975
4,000 Jeans Mate Corp. (Japanese Yen) 103,386
12,000 Just For Feet, Inc. 315,000
5,200 Kohls Corp.* 204,100
6,000 Matsuyadenki Co. (Japanese Yen) 56,345
11,550 Monro Muffler Brake, Inc.* 187,688
10,600 Payless Shoesource, Inc.* 397,500
15,200 Petsmart, Inc.* 332,500
13,000 Schultz Sav-o Stores, Inc. 182,000
12,000 Stage Stores, Inc.* 219,000
13,500 Steinmart, Inc.* 273,375
10,000 Wild Oats Markets, Inc.* 185,000
-----------
4,569,654
-----------
RETAILING & DISTRIBUTORS (0.3%)
37,200 ISA International PLC (British
Pounds) 151,525
14,050 Richfood Holdings, Inc. 340,712
-----------
492,237
-----------
TECHNOLOGY (2.4%)
5,200 Analysis International Corp. 146,900
22,700 CACI International, Inc. Class
A* 476,700
10,500 Inacom Corp.* 420,000
29,200 Reynolds & Reynolds Co. Class A 759,200
40,000 Simulation Sciences, Inc.* 595,000
18,000 VLSI Technology* 429,750
20,000 Vanstar Corp.* 490,000
10,000 Viasoft, Inc.* 472,500
7,000 Viisage Technology, Inc.* 101,500
20,000 Xircom, Inc.* 435,000
-----------
4,326,550
-----------
TELECOMMUNICATIONS (0.4%)
8,000 Brooks Fiber Properties, Inc.* 204,000
12,500 Intermedia Communications of
Florida, Inc.* 321,875
9,300 McLeod, Inc.* 237,150
-----------
763,025
-----------
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
TELECOMMUNICATION EQUIPMENT (1.2%)
6,300 Advanced Fibre Communications* $ 350,440
8,000 Aspect Telecommunications Corp.* 508,000
5,000 Digital Microwave Corp. 139,375
12,000 MFS Communications Co., Inc.* 654,000
15,900 Paging Network, Inc.* 242,475
3,000 Tonichi Cable Ltd. (Japanese
Yen) 25,071
13,100 West Technologies Corp. 298,025
-----------
2,217,386
-----------
TEXTILE/APPAREL (0.8%)
420 Bazar de l'Hotel de Ville
(French Francs) 35,862
1,000 Carli Gry International (Danish
Krone)* 47,806
2,000 Charle Co. (Japanese Yen) 22,400
429 Devanlay SA (French Francs) 40,848
100 Etienne Aigner AG (German Marks) 47,693
36 Gerry Weber AG (German Marks) 1,425
33,000 Gunze (Japanese Yen) 170,871
4,000 Isamu Paint Co., Ltd. (Japanese
Yen) 24,123
85,900 Just Jeans Holdings Ltd.
(Australian Dollars) 126,223
11,600 Nautica Enterprises, Inc.* 292,900
6,550 Pagnossin SPA (Italian Lira) 24,210
3,000 Sotoh Co. Ltd. (Japanese Yen) 28,690
11,200 St. John Knits, Inc. 487,200
9,000 Tokyo Style (Japanese Yen) 125,614
-----------
1,475,865
-----------
TOBACCO & GROCERY (0.3%)
16,100 First Brands Corp. 456,837
19,300 Hardys & Hanson PLC (British
Pounds) 92,487
-----------
549,324
-----------
TRANSPORTATION (0.6%)
102,000 Aerodata Holdings (Australian
Dollars) 86,688
4,540 Business Post PLC (British
Pounds) 36,907
6,000 FCC Co. Ltd. (Japanese Yen) 162,833
5,000 Isewan Terminal Services
(Japanese Yen) 26,406
200 Leonische Drahtwerke (German
Marks) 60,606
15,000 Midwest Express Holdings, Inc.* 540,000
8,280 Tamro-Yhtyma OY (Finnish Marks) 55,152
4,000 Tokyo Kisen (Japanese Yen) 24,123
-----------
992,715
-----------
</TABLE>
10 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 13
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
UTILITIES (0.3%)
20,000 Calpine Corp.* $ 400,000
11,680 Grupo Duro-Felguer SA (Spanish
Pesetas) 118,978
1,650 Nera ASA (Norwegian Krone) 71,320
-----------
590,298
-----------
WHOLESALE & INTERNATIONAL TRADE (0.8%)
51,000 Alexon Group ORD (British
Pounds) 154,493
1,600 Bioblock Scientific (French
Francs) 104,642
65,000 Burns Philip Co. (Australian
Dollars) 115,647
1,280 But SA (French Francs) 75,096
4,000 Circle K Japan Co. (Japanese
Yen) 172,310
350 D'ieteren Trading (Belgian
Francs) 72,062
8,300 Dahl International (Swedish
Krona)* 174,436
49,000 Dickson Concept International
(Hong Kong Dollars) 183,713
4,000 Econosto (Netherland Guilders) 75,389
8,200 Joyfull Co. (Japanese Yen) 115,155
5,000 Marukyo Corp. (Japanese Yen) 65,909
29,700 The Body Shop International
(British Pounds) 101,660
-----------
1,410,512
-----------
TOTAL COMMON STOCK 158,392,152
-----------
(cost $144,041,456)
PREFERRED STOCK (0.2%)
CONSTRUCTION & HOUSING (0.0%)
250 Hans Einhell NV (German Marks) 32,444
-----------
FOOD & BEVERAGE (0.1%)
1,800 Berentzen Gruppe AG (German
Marks) 67,744
250 WMF (Wuertt Metallw) AG (German
Marks) 42,015
-----------
109,759
-----------
TEXTILE & APPAREL (0.1%)
2,556 Gerry Weber International AG
(German Marks) 104,489
-----------
TOTAL PREFERRED STOCK 246,692
-----------
(cost $267,722)
<CAPTION>
------------------------------------------------------
SHARES SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
RIGHTS (0.0%)
6,200 United Drugs Rights (Irish
Punts) $ 3,147
-----------
(cost $2,762)
WARRANTS (0.0%)
3,000 Haw Par Brothers (Singapore
Dollars) 2,981
-----------
(cost $3,341)
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL ---------
---------
<S> <C> <C>
SHORT-TERM DEBT (3.9%)
$5,291,000 Merrill Lynch & Co., Inc.
6.60%, due 01/02/97 $ 5,288,968
1,830,000 J.P. Morgan & Co., Inc.
5.35%, due 01/02/97 1,829,297
------------
TOTAL SHORT-TERM DEBT 7,118,265
------------
(cost $7,119,758)
U.S. GOVERNMENT OBLIGATIONS (1.5%)
2,796,000 U.S. Treasury Bills, 4.87%
through 5.01%, due 01/09/97
through 03/13/97 2,773,164
------------
(cost $2,772,648)
REPURCHASE AGREEMENTS (9.4%)
14,212,000 Fifth Third Bank,
5.00%, due 01/02/97,
Collateralized by $14,448,000
FHLMC Pool #G10452, 7.00%, due
02/01/11, market value
$14,497,672 14,212,000
------------
2,831,000 Goldman Sachs,
6.05% due 01/02/97,
Collateralized by $2,720,000
U.S. Treasury Note, 8.875%, due
11/15/98, market value
$2,890,000 2,831,000
------------
TOTAL REPURCHASE AGREEMENTS 17,043,000
------------
(cost $17,043,000)
TOTAL INVESTMENTS $185,579,401
============
(cost $171,250,687)
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 11
<PAGE> 14
NATIONWIDE SEPARATE ACCOUNT TRUST
SMALL COMPANY FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
- --------------------------------------------------------------------------------
FORWARD CURRENCY CONTRACTS
<TABLE>
<CAPTION>
Contract Value Market Value
Currency Sold: (U.S. $) (U.S. $) (Depreciation) Delivery Date
- -------------- -------------- ------------ -------------- -------------
<S> <C> <C> <C> <C>
French Francs $217,436 $219,582 ($2,146) 1/2/97
Italian Lira 33,209 33,395 (186) 1/2/97
-------- -------- ------
Total currency sold $250,645 $252,977 ($2,332)
======== ======== ======
Payable for currency contracts sold ($2,332)
======
</TABLE>
SUMMARY OF INVESTMENTS BY CURRENCY
<TABLE>
<CAPTION>
% OF PORTFOLIO
<S> <C>
United States Dollars 84.64
Japanese Yen 4.55
British Pounds 2.72
Swedish Krona 1.00
French Francs 0.84
German Marks 0.72
Australian Dollars 0.71
Italian Lira 0.69
Swiss Francs 0.67
Spanish Pesetas 0.58
Netherland Guilders 0.57
Hong Kong Dollars 0.48
<CAPTION>
% OF PORTFOLIO
<S> <C>
Canadian Dollars 0.32
Danish Krone 0.23
Finnish Marks 0.23
Belgian Francs 0.19
South African Rand 0.18
Singapore Dollars 0.17
Austrian Schillings 0.14
Norwegian Krone 0.13
Irish Punts 0.09
New Zealand Dollars 0.09
Mexican Pesos 0.03
Malaysian Ringgit 0.03
</TABLE>
- ------------------------------------------------------
* Denotes a non-income producing security.
** Represents a security registered uner Rule 144-A, which limits the resale to
certain qualified buyers.
*** Security is subject to contractual or legal restrictions on its resale.
Securities denominated in foreign currencies are shown at their U.S. dollar cost
and value.
Cost of investments for Federal income tax purposes: $171,909,218.
The abbreviations in the above statement stand for the following:
<TABLE>
<S> <C>
AB Aktiebolag (Swedish stock company)
ADR American Depository Receipt
AG Aktiengesellschaft (West German stock company)
A/S Limited
ASA Limited
CVA Class A Convertible
FHLMC Federal Home Loan Mortgage Corporation
GDR Global Depository Receipt
KON Koninklijke
NV Naamloze Vennootschap (Dutch corporation)
ORD Ordinary Depository Receipt
OY Limited
PLC (British) Public Limited Company
PTA Pesetas
SA Societe Anonyme (French corporation)
SA Sociedad Anonima (Spanish corporation)
SPA Societa per Azioni (Italian corporation)
</TABLE>
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
12 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 15
NATIONWIDE SEPARATE ACCOUNT TRUST
CAPITAL APPRECIATION FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
COMMON STOCK (94.3%)
BROADCASTING (0.2%)
1,980 TCI Satellite Entertainment,
Inc.* $ 19,552
4,125 Tele-Communications Liberty
Media Group A* 117,820
19,800 Tele-Communications, Inc.,
Class A* 258,638
-----------
396,010
-----------
BUILDING (3.0%)
66,800 Martin Marietta Materials,
Inc. 1,553,100
39,100 Masco Corp. 1,407,600
24,100 Pulte Corp. 741,075
44,200 Vulcan Materials Company 2,690,675
-----------
6,392,450
-----------
CHEMICALS (12.1%)
63,600 Georgia Gulf Corp. 1,709,250
26,100 Gelman Sciences, Inc.* 848,250
245,400 Millipore Corp. 10,153,425
62,100 Morton International, Inc. 2,530,575
107,400 OM Group, Inc. 2,899,800
157,300 Pall Corp. 4,011,150
43,610 Raychem Corp. 3,494,251
-----------
25,646,701
-----------
COMPUTER EQUIPMENT (3.9%)
54,300 International Business
Machines 8,199,300
-----------
CONGLOMERATES (5.3%)
244,300 Corning, Inc. 11,298,875
-----------
DRUGS (13.8%)
244,900 Allergan, Inc. 8,724,563
19,400 American Home Products Corp. 1,137,325
20,000 Pfizer, Inc. 1,657,500
141,100 Schering-Plough Corp. 9,136,225
113,800 Warner-Lambert Company 8,535,000
-----------
29,190,613
-----------
ELECTRICAL EQUIPMENT (1.5%)
103,400 Black & Decker Corp. 3,114,925
-----------
ELECTRONICS (1.6%)
87,800 AMP, Inc. 3,369,325
-----------
ENTERTAINMENT (1.4%)
42,177 Walt Disney Company 2,936,574
-----------
FINANCIAL--BANKS (5.7%)
10,000 Bancorp Hawaii, Inc. 420,000
10,000 Bank of NY Company, Inc. 337,500
36,000 Barnett Banks, Inc. 1,480,500
30,240 Charter One Financial, Inc. 1,270,080
7,300 CoreStates Financial Corp. 378,687
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
FINANCIAL--BANKS (CONTINUED)
55,100 Mellon Bank Corp. $ 3,912,100
92,834 U.S. Bank Corp. 4,171,728
-----------
11,970,595
-----------
FINANCIAL--INSURANCE (4.9%)
62,600 Chubb Corp. 3,364,750
173,200 Horace Mann Educators Corp. 6,992,950
-----------
10,357,700
-----------
FINANCIAL--MISCELLANEOUS (3.4%)
205,400 First USA, Inc. 7,111,975
-----------
FOOD & BEVERAGE (11.3%)
40,800 Anheuser-Busch Companies, Inc. 1,632,000
273,500 Morningstar Group Inc.* 5,367,437
253,500 PepsiCo, Inc. 7,414,875
108,333 Ralcorp Holdings, Inc.* 2,288,535
97,600 Ralston-Ralston Purina Group 7,161,400
-----------
23,864,247
-----------
FURNITURE/HOME APPLIANCE (0.6%)
61,500 Singer Co. N.V., The 1,376,063
-----------
HOSPITAL SUPPLY (4.2%)
40,000 Nellcor Puritan* 875,000
187,400 St. Jude Medical* 7,987,925
-----------
8,862,925
-----------
HOUSEHOLD--PRODUCTS (1.7%)
55,400 Avon Products, Inc. 3,164,725
5,600 Gillette Company 435,400
-----------
3,600,125
-----------
MACHINERY & CAPITAL GOODS (0.1%)
33,800 Johnstown America Industries,
Inc.* 147,875
-----------
OIL & GAS (6.2%)
93,800 Texaco, Inc. 9,204,125
96,800 Unocal Corp. 3,932,500
-----------
13,136,625
-----------
PAPER & FOREST PRODUCTS (0.4%)
24,600 Bowater, Inc. 925,575
-----------
PRINTING & PUBLISHING (9.1%)
19,799 A.C. Nielsen Corp. 299,460
127,200 American Greetings Corp.
Class A 3,609,300
274,400 Cognizant Corp. 9,055,200
59,400 Dun & Bradstreet Corp. 1,410,750
3,900 Gannett Company, Inc. 292,012
65,900 Gibson Greetings, Inc.* 1,293,287
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 13
<PAGE> 16
NATIONWIDE SEPARATE ACCOUNT TRUST
CAPITAL APPRECIATION FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
PRINTING & PUBLISHING (CONTINUED)
27,100 Tribune Company $ 2,137,513
3,400 Washington Post Co. Class B 1,139,425
-----------
19,236,947
-----------
RETAIL (1.2%)
20,000 Albertson's, Inc. 712,500
80,900 Wal-Mart Stores, Inc. 1,850,588
-----------
2,563,088
-----------
TELECOMMUNICATIONS (1.9%)
12,000 Airtouch Communications, Inc. 303,000
111,800 MCI Communications Corp. 3,654,463
-----------
3,957,463
-----------
TOYS (0.8%)
61,835 Mattel, Inc. 1,715,921
-----------
TOTAL COMMON STOCK 199,371,897
-----------
(cost $159,563,921)
- ---------
PRINCIPAL
- ---------
CONVERTIBLE DEBT (0.3%)
MACHINERY (0.3%)
$1,029,000 Consorcio G Grupo Dina, 8.00%,
08/08/04 (cost $956,985) 649,556
-----------
COMMERCIAL PAPER (3.2%)
BANKS (0.4%)
827,000 Banc One Corp., 6.15%, due
01/09/97 825,678
-----------
BROKER--DEALERS (1.8%)
604,000 Dean Witter Discover & Co.,
5.32%, due 01/06/97 603,334
3,109,000 Goldman Sachs Group, 5.58%,
due 01/07/97 3,105,045
-----------
3,708,379
-----------
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
ELECTRIC UTILITIES (0.2%)
$ 374,000 National Rural Utilities,
5.31%, due 01/03/97 $ 373,787
-----------
FINANCIAL--BANKS (0.8%)
1,330,000 Bear Stearns Co., Inc., 5.55%,
due 01/06/97 1,328,534
418,000 Merrill Lynch & Co., 5.62%,
due 01/21/97 416,580
-----------
1,745,114
-----------
TOTAL COMMERCIAL PAPER 6,652,958
-----------
(cost $6,655,091)
REPURCHASE AGREEMENT (2.2%)
4,710,036 MBS Tri Party, 6.60%, due
01/02/97, Collateralized by
$4,805,000 GNMA 2 M008911AR,
5.50%, due 07/20/26, market
value $4,783,099 4,710,036
-----------
(cost $4,710,036)
TOTAL INVESTMENTS $211,384,447
============
(cost $171,886,033)
</TABLE>
- ------------------------------------------------------
* Denotes a non-income producing security.
Cost also represents cost for Federal income tax purposes.
The abbreviation in the above statement stands for the following:
GNMA Government National Mortgage Association
Portfolio holding percentages represent market value as a percent of net assets.
See accompanying notes to financial statements.
14 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 17
NATIONWIDE SEPARATE ACCOUNT TRUST
TOTAL RETURN FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
COMMON STOCK (92.5%)
AEROSPACE/DEFENSE (1.0%)
108,400 The Boeing Co. $ 11,531,050
AUTO & AUTO PARTS (5.9%)
350,000 Chrysler Corp. 11,550,000
490,000 Ford Motor Co. 15,618,750
622,600 Genuine Parts Co. 27,705,700
266,400 Magna International, Inc. 14,851,800
------------
69,726,250
------------
BUSINESS SERVICES (1.8%)
1,039,250 (The) Olsten Corp. 15,718,656
153,200 Cognizant Corp. 5,055,600
------------
20,774,256
------------
CABLE (1.6%)
1,052,000 Comcast Corp. Class A 18,738,750
------------
CHEMICALS (5.4%)
110,000 Air Products & Chemicals 7,603,750
400,500 Crompton & Knowles Corp. 7,709,625
236,200 Du Pont (E.I.) De Nemours &
Co. 22,291,375
99,000 Eastman Chemical Co. 5,469,750
268,400 Lawter International, Inc. 3,388,550
446,000 Monsanto Co. 17,338,250
------------
63,801,300
------------
COMPUTER EQUIPMENT (5.1%)
200,000 Hewlett-Packard Co. 10,050,000
250,000 International Business
Machines 37,750,000
257,419 Lucent Technologies, Inc. 11,905,629
------------
59,705,629
------------
COMPUTER SOFTWARE & SERVICES (1.2%)
340,000 Electronic Data Systems 14,705,000
------------
CONGLOMERATE (5.9%)
200,000 EG&G, Inc. 4,025,000
100,000 Eastman Kodak Co. 8,025,000
305,300 Honeywell, Inc. 20,073,475
556,000 Philips Electronics N.V. 22,240,000
153,900 Premark International, Inc. 3,424,275
200,000 Rockwell International Corp. 12,175,000
------------
69,962,750
------------
CONSUMER GOODS (0.7%)
153,900 Tupperware Corp. 8,252,888
------------
DRUGS (8.0%)
400,000 Allergan, Inc. 14,250,000
90,000 Bristol-Meyers Squibb Co. 9,787,500
400,000 Glaxo Wellcome PLC ADR 12,700,000
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
DRUGS (CONTINUED)
80,000 Schering-Plough Corp. $ 5,180,000
700,000 Warner-Lambert Co. 52,500,000
------------
94,417,500
------------
ELECTRONICS (0.2%)
177,000 Woodhead Industries, Inc. 2,433,750
FINANCIAL (14.7%)
600,000 Allstate Corp. 34,725,000
130,000 Bankers Trust NY 11,212,500
607,752 Bear Stearns Company, Inc. 16,941,087
325,000 Chubb Corp. 17,468,750
1,478,100 Equitable Companies, Inc. 36,398,212
132,400 Mellon Bank Corp. 9,400,400
350,000 Merrill Lynch & Co., Inc. 28,525,000
140,000 Morgan J.P. & Co., Inc 13,667,500
100,000 Morgan Stanley Group, Inc. 5,712,500
------------
174,050,949
------------
FOOD & BEVERAGE (7.4%)
176,700 Grand Metropolitan ADR 5,588,138
2,000,000 Grand Metropolitan PLC 15,709,600
283,500 Heinz (H.J) Co. 10,135,125
100,100 International Flavor &
Fragrance, Inc. 4,504,500
500,000 PepsiCo, Inc. 14,625,000
303,000 Ralston-Ralston Purina 22,232,625
335,000 Seagram Co., Ltd. 12,981,250
54,100 Universal Foods Corp. 1,907,025
------------
87,683,263
------------
FOOD--GRAIN & AGRICULTURE (1.7%)
891,984 Archer-Daniels-Midland Co. 19,623,648
HEALTHCARE SERVICES (2.4%)
683,400 Columbia/HCA Healthcare
Corp. 27,848,550
MACHINERY & CAPITAL GOODS (1.5%)
155,000 Cooper Industries, Inc. 6,529,375
50,000 Deere & Company 2,031,250
60,000 Emerson Electric Co. 5,805,000
50,000 Nordson Corp. 3,187,500
------------
17,553,125
------------
OIL & GAS (15.2%)
370,000 Amoco Corp. 29,785,000
230,000 Exxon Corp. 22,540,000
458,900 Mobil Corp. 56,100,525
110,000 Royal Dutch Petroleum Co. 18,782,500
225,000 Texaco, Inc. 22,078,125
600,000 The Williams Companies, Inc. 22,500,000
263,460 Union Pacific Resources
Group, Inc. 7,706,205
------------
179,492,355
------------
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 15
<PAGE> 18
NATIONWIDE SEPARATE ACCOUNT TRUST
TOTAL RETURN FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
SHARES SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
PAPER AND FOREST PRODUCTS (0.1%)
62,400 Glatfelter (P.H.) Co. $ 1,123,200
--------------
POLLUTION CONTROL (1.0%)
350,000 WMX Technologies, Inc. 11,418,750
--------------
PRINTING & PUBLISHING (1.0%)
153,200 Dun & Bradstreet Corp. 3,638,500
217,600 Reader's Digest Assoc.,
Inc., Class B 7,888,000
--------------
11,526,500
--------------
RETAIL (0.1%)
56,800 Supervalu, Inc. 1,611,700
--------------
TELECOMMUNICATIONS (9.6%)
692,100 360 Communications Co.* 16,004,812
794,300 AT & T Corp. 34,552,050
700,000 MCI Communications Corp. 22,881,250
1,004,300 Sprint Corp. 40,046,462
--------------
113,484,574
--------------
TRANSPORTATION (1.0%)
193,000 Union Pacific Corp. 11,604,125
--------------
TOTAL COMMON STOCK 1,091,069,862
--------------
(cost $791,645,511)
<CAPTION>
---------
PRINCIPAL
---------
<S> <C> <C>
U.S. GOVERNMENT AGENCY (6.3%)
$22,760,000 Federal Home Loan Mortgage
Corp., Discount Notes, 5.21%
through 5.36%, due 2/03/97
through 4/01/97 22,559,490
52,220,000 Federal National Mortgage
Association, Discount Notes,
5.20% through 5.46%, due
1/23/97 through 4/29/97 51,597,866
------------
TOTAL U.S. GOVERNMENT AGENCY 74,157,356
------------
(cost $74,161,880)
<CAPTION>
------------------------------------------------------
PRINCIPAL SECURITY VALUE
------------------------------------------------------
<S> <C> <C>
U.S. TREASURY BILLS (0.7%)
$ 8,375,000 5.04% through 5.31%, due
3/06/97 through 8/21/97
(cost $8,191,817) $ 8,192,415
--------------
REPURCHASE AGREEMENT (0.4%)
5,231,951 MBS Tri Party, 6.60%, due
1/02/97, Collateralized by
$5,390,000 GNMA 2 M008911AR,
5.50%, due 07/20/26, market
value $5,339,372 5,231,951
--------------
(cost $5,231,951)
TOTAL INVESTMENTS $1,178,651,584
==============
(cost $879,231,159)
</TABLE>
- ------------------------------------------------------
* Denotes a non-income producing security.
Cost also represents cost for Federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
The abbreviations in the above statement stand for the following:
ADR American Depository Receipt
PLC Public Limited Company
GNMA Government National Mortgage Association
See accompanying notes to financial statements.
16 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 19
NATIONWIDE SEPARATE ACCOUNT TRUST
GOVERNMENT BOND FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
MORTGAGE-BACKED SECURITIES (34.4%)
FEDERAL HOME LOAN MORTGAGE CORP., REMIC
$ 9,036,000 Series 1132-J, 8.00%,
due 08/15/06 $ 9,388,522
13,000,000 Series 1344-D, 6.00%,
due 08/15/07 12,110,280
20,000,000 Series 1415-N, 6.75%,
due 11/15/07 19,867,800
9,454,271 Series 31-E, 7.55%,
due 05/15/20 9,536,334
10,000,000 Series 94-E, 8.95%,
due 11/15/20 10,029,140
10,000,000 Series 1102-H, 8.875%,
due 06/15/21 10,734,930
14,715,163 Series 1143-Z, 7.50%,
due 10/15/21 14,616,380
3,022,412 Series 190-D, 9.20%,
due 10/15/21 3,126,994
FEDERAL NATIONAL MORTGAGE ASSOCIATION,
REMIC
3,034,320 Series 68-E, 8.35%,
due 10/25/03 3,049,128
7,849,998 Series 100-M, 5.50%,
due 09/25/01 7,689,623
5,000,000 Series 34-E, 9.85%,
due 08/25/14 5,110,215
2,002,678 Series 25-B, 9.25%,
due 10/25/18 2,102,038
14,000,000 Series 16-D, 9.00%,
due 03/25/20 14,540,260
8,846,037 Series 81-Z, 8.50%,
due 04/25/20 9,386,812
6,204,751 Series 67-Z, 9.00%,
due 06/25/22 6,507,902
3,729,426 Series 73-A, 8.00%,
due 07/25/21 3,806,413
17,000,000 Series 203- PJ, 6.50%,
due 10/25/23 16,601,860
-----------
TOTAL MORTGAGE-BACKED
SECURITIES 158,204,631
-----------
(cost $155,462,837)
U. S. GOVERNMENT AND AGENCY
LONG-TERM OBLIGATIONS (52.4%)
FEDERAL HOME LOAN BANKS
12,000,000 6.36%, due 03/21/01 12,003,900
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORPORATION
$38,000,000 6.81%, due 03/11/04 $ 37,721,954
26,000,000 7.445%, due 04/14/04 26,354,926
10,000,000 7.54%, due 05/03/04 10,209,850
FEDERAL NATIONAL MORTGAGE ASSOCIATION
22,000,000 8.25%, due 10/12/04 22,927,850
21,000,000 7.26%, due 10/05/05 20,938,155
12,310,000 7.58%, due 04/26/06 12,454,557
PRIVATE EXPORT FUNDING CORPORATION
30,000,000 6.86%, due 04/30/04 30,521,880
RESOLUTION FUNDING CORPORATION, STRIPS
54,000,000 0.00%, due 04/15/06 29,403,486
25,000,000 0.00%, due 04/15/08 11,811,975
58,000,000 0.00%, due 07/15/13 18,592,422
40,000,000 0.00%, due 07/15/20 7,735,160
------------
TOTAL U.S. GOVERNMENT AND
AGENCY LONG-TERM OBLIGATIONS 240,676,115
------------
(cost $235,133,219)
REPURCHASE AGREEMENT (12.3%)
56,674,000 UBS Securities,
6.25%, due 01/02/97,
Collateralized by $45,207,000
U.S. Treasury Notes, 8.875%,
due 02/15/19,
market value $57,808,451 56,674,000
------------
(cost $56,674,000)
TOTAL INVESTMENTS $455,554,746
============
(cost $447,270,056)
</TABLE>
- ------------------------------------------------------
The abbreviations in the above statement stand for the following:
REMIC Real Estate Mortgage Investment Conduit
Cost also represents cost for Federal income tax purposes.
Portfolio holding percentages represent market value as a percentage of net
assets.
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 17
<PAGE> 20
NATIONWIDE SEPARATE ACCOUNT TRUST
MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
CANADIAN GOVERNMENT OBLIGATIONS (5.6%)
$ 1,200,000 British Columbia, Providence
of, 5.80%, due 01/22/97 $ 1,195,940
3,000,000 British Columbia, Providence
of, 5.60%, due 02/11/97 2,980,867
2,968,000 British Columbia, Providence
of, 5.28%, due 02/03/97 2,953,635
3,000,000 British Columbia, Providence
of, 5.38%, due 01/30/97 2,986,998
7,000,000 British Columbia, Providence
of, 5.50%, due 02/10/97 6,957,222
12,000,000 Canadian Wheat Board, 5.32%,
due 02/18/97 11,914,880
9,850,000 Canadian Wheat Board, 5.26%,
due 02/18/97 9,780,919
6,000,000 Canadian Wheat Board, 5.40%,
due 03/19/97 5,930,700
7,834,000 Export Development, 5.58%,
due 01/03/97 7,831,572
2,200,000 Export Development, 5.70%,
due 01/03/97 2,199,303
------------
TOTAL CANADIAN GOVERNMENT
OBLIGATIONS 54,732,036
------------
(cost $54,732,036)
COMMERCIAL PAPER (91.8%)
AGRICULTURE/FINANCE (3.0%)
9,688,000 John Deere Capital, 5.38%,
due 01/21/97 9,659,044
12,000,000 John Deere Capital, 5.32%,
due 02/07/97 11,934,387
8,000,000 John Deere Capital, 5.42%,
due 01/16/97 7,981,933
------------
29,575,364
------------
AUTO/FINANCE (1.5%)
6,112,000 Ford Motor Credit Co., 5.34%,
due 01/10/97 6,103,840
1,863,000 Ford Motor Credit Co., 5.32%,
due 01/10/97 1,860,522
7,000,000 Ford Motor Credit Co., 5.31%,
due 01/22/97 6,978,318
------------
14,942,680
------------
BANKS (11.8%)
10,000,000 Banc One Corp., 5.32%, due
02/14/97 9,934,978
9,000,000 Banc One Corp., 5.30%, due
01/14/97 8,982,775
10,000,000 Banc One Corp., 5.30%, due
01/10/97 9,986,750
10,000,000 CoreStates Capital Corp.,
5.32%, due 01/28/97 9,960,100
15,000,000 Morgan (J.P.) & Co., 5.39%,
due 01/13/97 14,973,050
8,000,000 Morgan (J.P.) & Co., 5.40%,
due 03/25/97 7,900,400
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
BANKS (CONTINUED)
$ 7,000,000 Morgan (J.P.) & Co., 5.34%,
due 02/11/97 $ 6,957,428
12,000,000 National City Credit Corp.,
5.29%, due 03/14/97 11,873,040
14,000,000 National City Credit Corp.,
5.39%, due 01/24/97 13,951,789
2,000,000 National City Credit Corp.,
5.30%, due 01/10/97 1,997,350
19,915,000 Norwest Corp., 5.35%, due
02/06/97 19,808,455
------------
116,326,115
------------
BROKER-DEALERS (15.4%)
5,000,000 Bear Stearns Company, 5.43%,
due 01/17/97 4,987,934
10,000,000 Bear Stearns Company, 5.33%,
due 02/06/97 9,946,700
10,000,000 Bear Stearns Company, 5.30%,
due 04/01/97 9,867,500
5,000,000 Bear Stearns Company, 5.33%,
due 03/14/97 4,946,700
2,670,000 Dean Witter Discover, 5.31%,
due 01/31/97 2,658,185
5,000,000 Dean Witter Discover, 5.31%,
due 01/08/97 4,994,838
7,850,000 Dean Witter Discover, 5.28%,
due 02/28/97 7,783,223
15,000,000 Dean Witter Discover, 5.40%,
due 01/15/97 14,968,500
10,000,000 Goldman Sachs Group, 5.43%,
due 01/14/97 9,980,392
3,800,000 Goldman Sachs Group, 5.65%,
due 01/02/97 3,799,404
10,000,000 Goldman Sachs Group, 5.31%,
due 03/21/97 9,883,475
6,000,000 Goldman Sachs Group, 5.43%,
due 01/13/97 5,989,140
5,000,000 Goldman Sachs Group, 5.42%,
due 01/24/97 4,982,686
10,000,000 Merrill Lynch & Co., 5.33%,
due 01/24/97 9,965,947
8,000,000 Merrill Lynch & Co., 5.44%,
due 01/21/97 7,975,822
5,000,000 Merrill Lynch & Co., 5.33%,
due 02/14/97 4,967,428
10,000,000 Morgan Stanley Group, 5.34%,
due 03/20/97 9,884,300
4,000,000 Morgan Stanley Group, 5.45%,
due 03/20/97 3,952,766
10,000,000 Smith Barney, Inc., 5.32%,
due 01/09/97 9,988,178
10,000,000 Smith Barney, Inc., 5.45%,
due 01/09/97 9,987,889
------------
151,511,007
------------
</TABLE>
18 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 21
NATIONWIDE SEPARATE ACCOUNT TRUST
MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
CHEMICALS (7.4%)
$ 5,000,000 Great Lakes Chemical, 5.45%,
due 03/31/97 $ 4,932,632
5,000,000 Great Lakes Chemical, 5.37%,
due 01/17/97 4,988,067
1,857,000 Great Lakes Chemical, 5.40%,
due 01/10/97 1,854,493
6,000,000 Great Lakes Chemical, 5.42%,
due 02/28/97 5,947,607
5,000,000 Great Lakes Chemical, 5.50%,
due 01/27/97 4,980,139
11,405,000 Great Lakes Chemical, 5.40%,
due 01/22/97 11,369,074
7,500,000 Monsanto Co., 5.32%,
due 01/13/97 7,486,700
4,000,000 PPG Industries, 5.50%,
due 02/24/97 3,967,000
9,000,000 PPG Industries, 5.40%,
due 02/20/97 8,932,500
10,854,000 PPG Industries, 5.35%,
due 01/13/97 10,834,644
7,385,000 PPG Industries, 5.35%,
due 02/20/97 7,330,125
------------
72,622,981
------------
CONSUMER SALES FINANCE (12.3%)
14,000,000 American Express Credit Corp,
5.33%, due 01/23/97 13,954,400
10,000,000 American Express Credit Corp,
5.45%, due 02/24/97 9,918,250
15,000,000 Associates Corp. of N.A.,
5.43%,
due 01/17/97 14,963,800
5,000,000 Avco Financial Services,
Inc., 5.34%, due 01/09/97 4,994,067
7,000,000 Avco Financial Services,
Inc., 5.29%, due 02/25/97 6,943,426
4,854,000 Avco Financial Services,
Inc., 5.40%, due 01/17/97 4,842,350
10,000,000 Avco Financial Services,
Inc., 5.47%, due 02/12/97 9,936,183
3,000,000 Avco Financial Services,
Inc., 5.30%, due 01/28/97 2,988,075
10,675,000 Beneficial Corp., 5.42%,
due 02/21/97 10,593,034
5,000,000 Beneficial Corp., 5.38%,
due 01/24/97 4,982,814
5,000,000 Beneficial Corp., 5.47%,
due 02/24/97 4,958,975
10,000,000 Beneficial Corp., 5.31%,
due 01/14/97 9,980,825
12,000,000 Commercial Credit Co., 5.35%,
due 02/03/97 11,941,150
3,000,000 Norwest Financial, Inc.,
5.31%,
due 01/27/97 2,988,495
7,000,000 Norwest Financial, Inc.,
5.40%,
due 01/23/97 6,976,900
------------
120,962,744
------------
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
CORPORATE CREDIT UNIONS (1.6%)
$15,252,000 U.S. Central Credit Union,
5.30%, due 01/16/97 $ 15,218,318
------------
DIVERSIFIED FINANCE (3.0%)
1,700,000 GE Capital Corp., 5.30%, due
01/16/97 1,696,246
1,900,000 GE Capital Corp., 5.30%, due
03/03/97 1,882,937
5,000,000 GE Capital Corp., 5.31%, due
05/08/97 4,906,338
5,000,000 GE Capital Corp., 5.35%, due
05/12/97 4,902,660
5,000,000 GE Capital Corp., 5.30%, due
01/13/97 4,991,166
6,000,000 GE Capital Corp., 5.37%, due
04/24/97 5,898,865
5,000,000 GE Capital Corp., 5.46%, due
03/24/97 4,937,816
------------
29,216,028
------------
ENTERTAINMENT (0.5%)
5,000,000 Walt Disney Company, 5.45%,
due 03/10/97 4,948,527
------------
FINANCIAL SERVICES/ELECTRIC UTILITY (3.0%)
10,000,000 Natural Rural Utilities,
5.31%,
due 01/06/97 9,992,625
5,000,000 Natural Rural Utilities,
5.31%,
due 01/07/97 4,995,575
5,000,000 Natural Rural Utilities,
5.30%,
due 01/24/97 4,983,069
10,000,000 Natural Rural Utilities,
5.32%,
due 03/04/97 9,908,378
------------
29,879,647
------------
FOOD & BEVERAGE (4.8%)
7,220,000 CPC International, Inc.,
5.31%,
due 01/17/97 7,202,961
8,000,000 Campbell Soup Co., 5.39%,
due 02/26/97 7,932,924
12,000,000 Heinz ("HJ") Company, 5.37%,
due 01/24/97 11,958,830
6,500,000 Heinz ("HJ") Company, 5.42%,
due 01/29/97 6,472,599
5,890,000 Heinz ("HJ") Company, 5.40%,
due 03/03/97 5,836,107
5,000,000 Heinz ("HJ") Company, 5.65%,
due 02/07/97 4,970,965
3,000,000 Heinz ("HJ") Company, 5.40%,
due 01/28/97 2,987,850
------------
47,362,236
------------
HEAVY EQUIPMENT FINANCE (2.5%)
16,000,000 Caterpillar Financial
Services, 5.35%, due 01/02/97 15,997,622
9,000,000 Caterpillar Financial
Services, 5.30%, due 01/28/97 8,964,225
------------
24,961,847
------------
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 19
<PAGE> 22
NATIONWIDE SEPARATE ACCOUNT TRUST
MONEY MARKET FUND
STATEMENT OF INVESTMENTS -- DECEMBER 31, 1996 (CONTINUED)
<TABLE>
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
HOUSEWARES (2.3%)
$ 1,000,000 Rubbermaid, Inc., 5.32%,
due 01/03/97 $ 999,705
12,000,000 Rubbermaid, Inc., 6.58%,
due 01/06/97 11,989,032
10,000,000 Rubbermaid, Inc., 5.35%,
due 03/18/97 9,887,056
------------
22,875,793
------------
INSURANCE (6.8%)
273,000 AIG Funding, Inc., 5.35%,
due 01/31/97 271,783
4,985,000 AIG Funding, Inc., 5.53%,
due 01/31/97 4,962,027
3,415,000 AIG Funding, Inc., 5.45%,
due 01/31/97 3,399,490
7,000,000 MetLife Funding, Inc., 5.32%,
due 02/04/97 6,964,829
4,000,000 MetLife Funding, Inc., 5.37%,
due 01/21/97 3,988,067
12,000,000 MetLife Funding, Inc., 5.32%,
due 02/12/97 11,925,520
5,201,000 MetLife Funding, Inc., 5.30%,
due 01/17/97 5,188,749
10,000,000 Old Republic Capital Corp.,
5.32%, due 03/06/97 9,905,421
8,128,000 Old Republic Capital Corp.,
5.33%, due 03/06/97 8,050,983
8,700,000 Old Republic Capital Corp.,
5.55%, due 01/07/97 8,691,953
3,000,000 Old Republic Capital Corp.,
5.33%, due 04/09/97 2,956,472
------------
66,305,294
------------
OFFICE EQUIPMENT AND SUPPLIES (1.3%)
5,910,000 Pitney Bowes Credit, 5.58%,
due 02/18/97 5,866,030
7,000,000 Pitney Bowes Credit Corp.,
5.42%, due 02/24/97 6,943,090
------------
12,809,120
------------
OIL & GAS (0.6%)
6,000,000 Koch Industries, Inc., 6.55%,
due 01/02/97 5,998,908
------------
OIL & GAS: EQUIPMENT & SERVICES (2.8%)
10,000,000 Chevron Transport Corp.,
5.32%,
due 01/15/97 9,979,310
5,000,000 Chevron Transport Corp.,
5.43%,
due 01/10/97 4,993,213
12,000,000 Chevron Transport, Corp.,
5.32%,
due 01/08/97 11,987,587
------------
26,960,110
------------
<CAPTION>
- ------------------------------------------------------
PRINCIPAL SECURITY VALUE
- ------------------------------------------------------
<S> <C> <C>
PACKAGING/CONTAINERS (2.2%)
$ 4,500,000 Bemis Co., Inc, 5.43%,
due 02/13/97 $ 4,470,814
7,375,000 Bemis Co., Inc, 5.40%,
due 01/14/97 7,360,619
10,000,000 Bemis Co., Inc, 5.45%,
due 01/23/97 9,966,694
------------
21,798,127
------------
PAPER AND FOREST PRODUCTS (3.0%)
10,000,000 Sonoco Products Co., 5.30%,
due 01/07/97 9,991,166
9,770,000 Sonoco Products Co., 5.35%,
due 01/14/97 9,751,125
10,000,000 Sonoco Products Co., 5.42%,
due 01/14/97 9,980,428
------------
29,722,719
------------
PHARMACEUTICALS/PERSONAL CARE (4.0%)
10,000,000 Glaxo Wellcome, 5.31%,
due 01/22/97 9,969,025
15,000,000 Pfizer Inc., 5.40%, due
04/02/97 14,795,250
15,000,000 Pfizer Inc., 5.30%, due
03/12/97 14,845,417
------------
39,609,692
------------
PREMIUM FINANCE (1.0%)
10,000,000 A.I. Credit Corp., 5.30%,
due 01/16/97 9,977,917
------------
PRINTING & PUBLISHING (1.0%)
9,740,000 Donnelley (RR) & Sons, 6.85%,
due 01/02/97 9,738,147
------------
TOTAL COMMERCIAL PAPER 903,323,321
------------
(cost $903,323,321)
U.S. GOVERNMENT AND AGENCY OBLIGATIONS
(2.6%)
6,000,000 U.S. Treasury Bill, 5.26%,
due 04/03/97 5,919,347
20,000,000 FNMA Floating Note, 5.13%*,
due 06/20/97 19,992,362
------------
TOTAL U.S. GOVERNMENT AND
AGENCY OBLIGATIONS 25,911,709
------------
(cost $25,911,709)
TOTAL INVESTMENTS $983,967,066
============
(cost $983,967,066)
</TABLE>
- ------------------------------------------------------
Cost also represents cost for Federal income tax purposes.
The abbreviation in the above statement stands for the following:
FNMA Federal National Mortgage Association.
Portfolio holding percentages represent value as a percentage of net assets.
*Variable rate security. The rate reflected in the Statement of Investments is
the rate in effect on December 31, 1996.
See accompanying notes to financial statements.
20 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 23
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF ASSETS AND LIABILITIES
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAPITAL
COMPANY APPRECIATION TOTAL RETURN GOVERNMENT MONEY MARKET
FUND FUND FUND BOND FUND FUND
------------ ------------ -------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
ASSETS
Investments in securities, at value
(cost $154,207,687, $167,175,997,
$873,999,208, $390,596,056, and
$983,967,066, respectively) $168,536,401 $206,674,411 $1,173,419,633 $398,880,746 $ 983,967,066
Repurchase agreements (cost $17,043,000,
$4,710,036, $5,231,951, and $56,674,000,
respectively) 17,043,000 4,710,036 5,231,951 56,674,000 --
------------ ------------ -------------- ------------ --------------
Total investments 185,579,401 211,384,447 1,178,651,584 455,554,746 983,967,066
Cash 249,665 -- 30,322 719 18,617
Accrued interest and dividends receivable 94,696 180,742 1,671,546 3,818,073 32,317
Withholding tax reclaim receivable 13,809 -- 27,872 -- --
Receivable for investment securities sold 878,803 -- -- 76,130 --
Deferred organization expenses 6,950 -- -- -- --
------------ ------------ -------------- ------------ --------------
Total assets 186,823,324 211,565,189 1,180,381,324 459,449,668 984,018,000
------------ ------------ -------------- ------------ --------------
LIABILITIES
Cash overdraft -- 433 -- -- --
Payable for foreign currency contracts 2,332 -- -- -- --
Payable for investment securities
purchased 5,792,005 -- -- -- --
Accrued management fees 145,247 86,707 492,287 194,536 410,454
Other accrued expenses 44,031 4,226 13,252 8,282 78,868
------------ ------------ -------------- ------------ --------------
Total liabilities 5,983,615 91,366 505,539 202,818 489,322
------------ ------------ -------------- ------------ --------------
NET ASSETS $180,839,709 $211,473,823 $1,179,875,785 $459,246,850 $ 983,528,678
============ ============ ============== ============ ==============
REPRESENTED BY:
Capital $167,495,493 $171,959,795 $ 880,403,344 $455,280,050 $ 983,535,282
Net unrealized appreciation on investments
and translation of assets and
liabilities in foreign currencies 14,323,871 39,498,414 299,420,425 8,284,690 --
Undistributed net realized loss from
investments and foreign currency
transactions -- -- -- (4,334,590) (6,604)
Distributions in excess of net realized
gains from investments and foreign
currency transactions (963,415) -- -- -- --
Undistributed (distributions in excess of)
net investment income (16,240) 15,614 52,016 16,700 --
------------ ------------ -------------- ------------ --------------
NET ASSETS $180,839,709 $211,473,823 $1,179,875,785 $459,246,850 $ 983,528,678
============ ============ ============== ============ ==============
Shares outstanding (unlimited number of
shares authorized) 13,017,812 12,986,552 88,894,070 41,581,018 983,538,556
============ ============ ============== ============ ==============
NET ASSET VALUE, offering and redemption
price per share $ 13.89 $ 16.28 $ 13.27 $ 11.04 $ 1.00
============ ============ ============== ============ ==============
</TABLE>
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 21
<PAGE> 24
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL CAPITAL
COMPANY APPRECIATION TOTAL RETURN GOVERNMENT MONEY MARKET
FUND FUND FUND BOND FUND FUND
----------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest $ 739,901 $ 561,758 $ 4,885,900 $ 29,989,045 $49,804,088
Dividends 827,293 2,250,264 19,471,950 -- --
Less foreign tax withheld (35,499) -- (149,119) -- --
----------- ----------- ------------ ------------ -----------
Total income 1,531,695 2,812,022 24,208,731 29,989,045 49,804,088
----------- ----------- ------------ ------------ -----------
EXPENSES:
Investment management fees 851,352 684,932 4,851,676 2,225,962 4,518,925
Custodian fees 107,000 22,000 27,000 16,500 55,812
Professional services 7,683 4,419 34,697 14,739 36,394
Trustees fees and expenses 103 194 1,436 685 1,328
Other 52,016 7,322 26,241 8,590 24,019
----------- ----------- ------------ ------------ -----------
Total expenses 1,018,154 718,867 4,941,050 2,266,476 4,636,478
----------- ----------- ------------ ------------ -----------
NET INVESTMENT INCOME $ 513,541 $ 2,093,155 $ 19,267,681 $ 27,722,569 $45,167,610
=========== =========== ============ ============ ===========
NET REALIZED AND UNREALIZED
GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY:
Net realized gain (loss) on
investments and foreign
currency transactions $ (10,875) $ 6,083,507 $ 44,581,276 $ 4,438,322 $ (740)
Net change in unrealized
appreciation
(depreciation) on
investments and
translation of assets
and liabilities in
foreign currencies 12,814,687 24,469,916 132,964,864 (17,097,130) --
----------- ----------- ------------ ------------ -----------
Net realized and
unrealized gain (loss)
on investments and
translation of assets
and liabilities in
foreign currencies 12,803,812 30,553,423 177,546,140 (12,658,808) (740)
----------- ----------- ------------ ------------ -----------
NET INCREASE IN NET ASSETS
RESULTING FROM OPERATIONS $13,317,353 $ 32,646,578 $196,813,821 $ 15,063,761 $45,166,870
=========== =========== ============ ============ ===========
</TABLE>
See accompanying notes to financial statements.
22 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 25
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY FUND
---------------------------------
PERIOD FROM
OCTOBER 23, 1995
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) THROUGH
DECEMBER 31, DECEMBER 31,
1996 1995
------------ -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 513,541 $ 28,283
Net realized loss on investments and foreign currencies (10,875) (103,052)
Net change in unrealized appreciation on investments and
translation of assets and liabilities in foreign
currencies 12,814,687 1,509,184
------------ -----------
Net increase in net assets resulting from operations 13,317,353 1,434,415
------------ -----------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (467,602) (25,860)
In excess of net realized gain from investment
transactions and foreign currency transactions (914,090) --
Tax return of capital (58,538)
------------ -----------
Decrease in net assets from distributions to
shareholders (1,440,230) (25,860)
------------ -----------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 233,069,667 18,935,596
Net asset value of shares issued to shareholders from
reinvestment of distributions 1,440,231 25,860
Cost of shares redeemed (82,702,784) (3,214,539)
------------ -----------
Net increase in net assets derived from capital share
transactions 151,807,114 15,746,917
------------ -----------
NET INCREASE IN NET ASSETS 163,684,237 17,155,472
NET ASSETS -- BEGINNING OF PERIOD 17,155,472 --
------------ -----------
NET ASSETS -- END OF PERIOD $180,839,709 $17,155,472
============ ===========
Undistributed net realized loss on investments and foreign
currency transactions included in net assets at end of
period $ -- $ (103,052)
============ ===========
Distributions in excess of net realized gain on investments
and foreign currency transactions included in net assets
at end of period $ (963,415) $ --
============ ===========
Undistributed (distributions in excess of) net investment
income included in net assets at end of period $ (16,240) $ 2,423
============ ===========
SHARE ACTIVITY:
Shares sold 17,796,626 1,796,171
Reinvestment of distributions 104,562 2,265
Shares redeemed (6,385,454) (296,358)
------------ -----------
Net increase in number of shares 11,515,734 1,502,078
============ ===========
</TABLE>
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 23
<PAGE> 26
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL APPRECIATION FUND
---------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
------------ ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 2,093,155 $ 1,232,936
Net realized gain on investments 6,083,507 2,523,674
Net change in unrealized appreciation on investments 24,469,916 13,171,765
------------ ------------
Net increase in net assets resulting from operations 32,646,578 16,928,375
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (2,097,320) (1,213,046)
Net realized gain on investments (6,083,507) (2,302,021)
In excess of net realized gain on investments -- (1,329)
------------ ------------
Decrease in net assets from distributions to shareholders (8,180,827) (3,516,396)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 188,489,438 26,980,755
Net asset value of shares issued to shareholders from
reinvestment of distributions 8,180,827 3,863,870
Cost of shares redeemed (90,899,204) (23,461,693)
------------ ------------
Net increase in net assets derived from capital share
transactions 105,771,061 7,382,932
------------ ------------
NET INCREASE IN NET ASSETS 130,236,812 20,794,911
NET ASSETS -- BEGINNING OF PERIOD 81,237,011 60,442,100
------------ ------------
NET ASSETS -- END OF PERIOD $211,473,823 $ 81,237,011
============ ============
Undistributed net realized gain on investments included in net
assets at end of period $ -- $ --
============ ============
Distributions in excess of net realized gains on investments
included in net assets at end of period $ -- $ --
============ ============
Undistributed net investment income included in net assets at end
of period $ 15,614 $ 19,779
============ ============
SHARE ACTIVITY:
Shares sold 12,564,846 2,172,400
Reinvestment of distributions 511,125 299,746
Shares redeemed (6,117,513) (1,977,044)
------------ ------------
Net increase in number of shares 6,958,458 495,102
============ ============
</TABLE>
See accompanying notes to financial statements.
24 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 27
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN FUND
-----------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
-------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 19,267,681 $ 19,348,385
Net realized gain on investments 44,581,276 42,991,075
Net change in unrealized appreciation on investments 132,964,864 108,350,477
-------------- ------------
Net increase in net assets resulting from operations 196,813,821 170,689,937
-------------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (19,350,083) (19,011,213)
Net realized gain on investments (44,581,276) (42,991,075)
In excess of net realized gain on investments - (227,335)
-------------- ------------
Decrease in net assets from distributions to
shareholders (63,931,359) (62,229,623)
-------------- ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 234,350,587 145,723,309
Net asset value of shares issued to shareholders from
reinvestment of distributions 63,931,358 79,264,509
Cost of shares redeemed (66,253,094) (53,304,608)
-------------- ------------
Net increase in net assets derived from capital share
transactions 232,028,851 171,683,210
-------------- ------------
NET INCREASE IN NET ASSETS 364,911,313 280,143,524
NET ASSETS -- BEGINNING OF PERIOD 814,964,472 534,820,948
-------------- ------------
NET ASSETS -- END OF PERIOD $1,179,875,785 $814,964,472
============== ============
Undistributed net realized loss on investments included in
net assets at end of period $ -- $ --
============== ============
Undistributed net investment income included in net assets
at end of period $ 52,016 $ 134,418
============== ============
SHARE ACTIVITY:
Shares sold 18,641,347 13,111,420
Reinvestment of distributions 4,890,401 7,198,362
Shares redeemed (5,275,955) (4,821,628)
-------------- ------------
Net increase in number of shares 18,255,793 15,488,154
============== ============
</TABLE>
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 25
<PAGE> 28
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND FUND
----------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
------------ -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 27,722,569 $ 26,950,345
Net realized gain on investments 4,438,322 813,537
Net change in unrealized appreciation (depreciation) on
investments (17,097,130) 43,487,386
------------ -------------
Net increase in net assets resulting from operations 15,063,761 71,251,268
------------ -------------
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME (27,750,527) (26,924,228)
------------ -------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 80,750,210 90,606,931
Net asset value of shares issued to shareholders from
reinvestment of distributions 27,750,527 33,834,038
Cost of shares redeemed (90,583,178) (106,004,873)
------------ -------------
Net increase in net assets derived from capital share
transactions 17,917,559 18,436,096
------------ -------------
NET INCREASE IN NET ASSETS 5,230,793 62,763,136
NET ASSETS -- BEGINNING OF PERIOD 454,016,057 391,252,921
------------ -------------
NET ASSETS -- END OF PERIOD $459,246,850 $ 454,016,057
============ =============
Undistributed net realized loss on investments included in
net assets at end of period $ (4,334,590) $ (8,772,912)
============ =============
Undistributed net investment income included in net assets
at end of period $ 16,700 $ 44,658
============ =============
SHARE ACTIVITY:
Shares sold 7,317,309 8,275,783
Reinvestment of distributions 2,540,180 3,126,554
Shares redeemed (8,244,830) (9,801,205)
------------ -------------
Net increase in number of shares 1,612,659 1,601,132
============ =============
</TABLE>
See accompanying notes to financial statements.
26 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 29
NATIONWIDE SEPARATE ACCOUNT TRUST
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND
---------------------------------
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
--------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income $ 45,167,610 $ 39,361,888
Net realized loss on investments (740) (5,864)
--------------- ---------------
Net increase in net assets resulting from operations 45,166,870 39,356,024
--------------- ---------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (45,170,024) (39,360,095)
Tax return of capital (3,388) --
--------------- ---------------
Decrease in net assets from distributions to shareholders (45,173,412) (39,360,095)
--------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sale of shares 2,044,373,614 971,797,511
Net asset value of shares issued to shareholders from
reinvestment of distributions 45,202,840 43,287,489
Cost of shares redeemed (1,843,449,040) (1,105,699,769)
--------------- ---------------
Net increase (decrease) in net assets derived from
capital share transactions 246,127,414 (90,614,769)
--------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS 246,120,872 (90,618,840)
NET ASSETS -- BEGINNING OF PERIOD 737,407,806 828,026,646
--------------- ---------------
NET ASSETS -- END OF PERIOD $ 983,528,678 $ 737,407,806
=============== ===============
Undistributed net realized loss on investments included in
net assets at end of period $ (6,604) $ (5,864)
=============== ===============
Undistributed net investment income included in net assets at
end of period $ -- $ 2,414
=============== ===============
SHARE ACTIVITY:
Shares sold 2,044,373,614 971,797,397
Reinvestment of distributions 45,202,840 43,287,489
Shares redeemed (1,843,449,040) (1,105,699,769)
--------------- ---------------
Net increase (decrease) in number of shares 246,127,414 (90,614,883)
=============== ===============
</TABLE>
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 27
<PAGE> 30
NATIONWIDE SEPARATE ACCOUNT TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SMALL COMPANY FUND
-------------------------------
PERIOD FROM
OCTOBER 23, 1995
(COMMENCEMENT OF
YEAR ENDED OPERATIONS) THROUGH
DECEMBER 31, DECEMBER 31,
1996 1995
----------- -----------------
<S> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 11.42 $ 10.00
Net investment income 0.06 0.02
Net realized gain and unrealized appreciation on
investments and translation of assets and liabilities in
foreign currencies 2.55 1.42
-------- -------
Total from investment operations 2.61 1.44
-------- -------
Distributions from net investment income (0.06) (0.02)
Distributions in excess of net realized gain from
investment transactions and foreign currencies (0.08) --
-------- -------
Total distributions (0.14) (0.02)
-------- -------
Net increase in net asset value 2.47 1.42
-------- -------
NET ASSET VALUE -- END OF PERIOD $ 13.89 $ 11.42
======== =======
Total Return 22.83% 14.38%
Ratios and supplemental data:
Net Assets, end of period (000) $180,840 $17,155
Ratio of expenses to average net assets 1.20% 1.25%*
Ratio of expenses to average net assets** 1.20% 1.74%*
Ratio of net investment income to average net assets 0.60% 1.32%*
Ratio of net investment income to average net assets** 0.60% 0.83%*
Portfolio turnover 136.74% 9.03%
Average commission rate paid*** 2.8802c --
</TABLE>
- ------------------------------------------------------
* Ratios are annualized for periods less than one year.
** Ratios calculated as if no fees were waived or expenses reimbursed.
*** Represents the total amount of commissions paid in portfolio equity
transactions divided by the total number of shares purchased and sold by the
Fund for which commissions were charged.
See accompanying notes to financial statements.
28 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 31
NATIONWIDE SEPARATE ACCOUNT TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CAPITAL APPRECIATION FUND
-------------------------------------------------------------------
PERIOD FROM
APRIL 15, 1992
(COMMENCEMENT OF
YEARS ENDED DECEMBER 31, OPERATIONS) THROUGH
--------------------------------------------- DECEMBER 31,
1996 1995 1994 1993 1992
-------- -------- ------------ -------- -------------------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF
PERIOD $ 13.48 $ 10.92 $ 11.20 $ 10.46 $ 10.00
Net investment income 0.21 0.23 0.18 0.26 0.10
Net realized gain (loss) and
unrealized appreciation
(depreciation) on investments 3.29 2.96 (0.28) 0.74 0.48
-------- -------- -------- -------- -------
Total from investment
operations 3.50 3.19 (0.10) 1.00 0.58
-------- -------- -------- -------- -------
Distributions from net
investment income (0.22) (0.23) (0.18) (0.26) (0.10)
Distributions from net realized
gain from investment
transactions (0.48) (0.40) -- -- (0.02)
-------- -------- -------- -------- -------
Total distributions (0.70) (0.63) (0.18) (0.26) (0.12)
-------- -------- -------- -------- -------
Net increase (decrease) in
net asset value 2.80 2.56 (0.28) 0.74 0.46
-------- -------- -------- -------- -------
NET ASSET VALUE -- END OF PERIOD $ 16.28 $ 13.48 $ 10.92 $ 11.20 $ 10.46
======== ======== ======== ======== =======
Total Return 26.14% 29.35% (0.90%) 9.61% 10.92%*
Ratios and supplemental data:
Net Assets, end of period (000) $211,474 $ 81,237 $ 60,442 $ 38,926 $18,800
Ratio of expenses to average net
assets 0.52% 0.54% 0.56% 0.59% 0.69%*
Ratio of net investment income
to average net assets 1.53% 1.89% 1.76% 2.82% 1.95%*
Portfolio turnover 22.19% 20.28% 11.21% 16.87% 5.01%
Average commission rate paid** 5.8677c -- -- -- --
</TABLE>
- ------------------------------------------------------
* Ratios and total return are annualized for periods of less than one year.
** Represents the total amount of commissions paid in portfolio equity
transactions divided by the total number of shares purchased and sold by
the Fund for which commissions were charged.
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 29
<PAGE> 32
NATIONWIDE SEPARATE ACCOUNT TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TOTAL RETURN FUND
------------------------------------------------------
YEARS ENDED DECEMBER 31,
------------------------------------------------------
1996 1995 1994 1993 1992
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 11.54 $ 9.70 $ 10.10 $ 9.46 $ 9.07
Net investment income 0.24 0.31 0.21 0.23 0.25
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments 2.26 2.49 (0.10) 0.79 0.48
---------- -------- -------- -------- --------
Total from investment operations 2.50 2.80 0.11 1.02 0.73
---------- -------- -------- -------- --------
Distributions from net investment income (0.25) (0.31) (0.28) (0.24) (0.25)
Distributions from net realized gain from
investment transactions (0.52) (0.65) (0.23) (0.14) (0.09)
---------- -------- -------- -------- --------
Total distributions (0.77) (0.96) (0.51) (0.38) (0.34)
---------- -------- -------- -------- --------
Net increase (decrease) in net asset
value 1.73 1.84 (0.40) 0.64 0.39
---------- -------- -------- -------- --------
NET ASSET VALUE -- END OF PERIOD $ 13.27 $ 11.54 $ 9.70 $ 10.10 $ 9.46
========== ======== ======== ======== ========
Total Return 21.84% 29.09% 1.07% 10.92% 8.18%
Ratios and supplemental data:
Net Assets, end of period (000) $1,179,876 $814,964 $534,821 $456,243 $334,917
Ratio of expenses to average net assets 0.51% 0.51% 0.52% 0.53% 0.53%
Ratio of net investment income to average
net assets 1.99% 2.84% 2.76% 2.51% 2.69%
Portfolio turnover 16.18% 16.12% 12.06% 9.79% 12.48%
Average commission rate paid* 4.7577c -- -- -- --
</TABLE>
- ------------------------------------------------------
* Represents the total amount of commissions paid in portfolio equity
transactions divided by the total number of shares purchased and sold by the
Fund for which commissions were charged.
See accompanying notes to financial statements.
30 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 33
NATIONWIDE SEPARATE ACCOUNT TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
GOVERNMENT BOND FUND
----------------------------------------------------
YEARS ENDED DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 11.36 $ 10.20 $ 11.26 $ 10.92 $ 11.24
Net investment income 0.69 0.71 0.69 0.71 0.98
Net realized gain (loss) and unrealized
appreciation (depreciation) on
investments (0.32) 1.16 (1.06) 0.32 (0.14)
-------- -------- -------- -------- --------
Total from investment operations 0.37 1.87 (0.37) 1.03 0.84
-------- -------- -------- -------- --------
Distributions from net investment income (0.69) (0.71) (0.69) (0.66) (0.93)
Distributions from net realized gain from
investment transactions -- -- -- (0.03) (0.23)
-------- -------- -------- -------- --------
Total distributions (0.69) (0.71) (0.69) (0.69) (1.16)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset
value (0.32) 1.16 (1.06) 0.34 (0.32)
-------- -------- -------- -------- --------
NET ASSET VALUE -- END OF PERIOD $ 11.04 $ 11.36 $ 10.20 $ 11.26 $ 10.92
======== ======== ======== ======== ========
Total return 3.49% 18.74% (3.23)% 9.52% 7.87%
Ratios and supplemental data:
Net Assets, end of period (000) $459,247 $454,016 $391,253 $433,584 $301,841
Ratio of expenses to average net assets 0.51% 0.51% 0.51% 0.53% 0.53%
Ratio of net investment income to average
net assets 6.23% 6.45% 6.46% 5.91% 8.75%
Portfolio turnover 33.75% 97.05% 111.40% 175.37% 73.75%
</TABLE>
- ------------------------------------------------------
See accompanying notes to financial statements.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 31
<PAGE> 34
NATIONWIDE SEPARATE ACCOUNT TRUST
FINANCIAL HIGHLIGHTS
SELECTED DATA FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MONEY MARKET FUND
----------------------------------------------------
YEARS ENDED DECEMBER 31,
----------------------------------------------------
1996 1995 1994 1993 1992
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
NET ASSET VALUE -- BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
Net investment income 0.05 0.06 0.04 0.03 0.03
Distributions from net investment income (0.05) (0.06) (0.04) (0.03) (0.03)
-------- -------- -------- -------- --------
Net increase (decrease) in net asset value -- -- -- -- --
-------- -------- -------- -------- --------
NET ASSET VALUE -- END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return 5.12% 5.66% 3.88% 2.76% 3.40%
Ratios and supplemental data:
Net Assets, end of period (000) $983,529 $737,408 $828,027 $351,798 $330,011
Ratio of expenses to average net assets 0.51% 0.52% 0.54% 0.53% 0.53%
Ratio of net investment income to average 5.00% 5.51% 4.00% 2.72% 3.36%
net assets
</TABLE>
- ------------------------------------------------------
See accompanying notes to financial statements.
32 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 35
NATIONWIDE SEPARATE ACCOUNT TRUST
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nationwide Separate Account Trust (Trust) is a diversified, open-end investment
company registered under the Investment Company Act of 1940, as amended. The
Trust offers shares only to life insurance company separate accounts to fund the
benefits under variable insurance or annuity policies issued by life insurance
companies. The Trust was organized as a Massachusetts Trust effective June 30,
1981. To date, only separate accounts of Nationwide Life Insurance Company and
Nationwide Life and Annuity Insurance Company (formerly Financial Horizons Life
Insurance Company), which are affiliated companies, have purchased shares.
The Trust offers shares in five series: Small Company Fund, Capital Appreciation
Fund, Total Return Fund, Government Bond Fund and Money Market Fund. The Trust
was amended in 1995 to create the Small Company Fund. On October 23, 1995, the
Small Company Fund was capitalized through the sale of shares to Nationwide Life
Insurance Company in the amount of $5,000,000, at which time the Small Company
Fund became effective and sales of shares commenced.
On January 4, 1997, the Nationwide Separate Account Trust Income Fund became
effective. The Fund has not commenced operations.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities 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.
SECURITY VALUATION
A) SMALL COMPANY, CAPITAL APPRECIATION, TOTAL RETURN AND GOVERNMENT BOND
Securities are valued at the closing price of the securities exchange on which
such securities are primarily traded. Listed securities for which no sale was
reported on the valuation date are valued at quoted bid prices. Securities not
listed on an exchange or for which there were no transactions are valued at
their most recent bid price, or where no prices are available, at fair market
value, using procedures authorized by the Board of Trustees. Investments
denominated in foreign currencies are translated to U.S. dollars at prevailing
exchange rates. Forward currency exchange contracts are also valued at the
prevailing exchange rates.
The value of a repurchase agreement generally equals the purchase price paid
by the Fund (cost) plus the interest accrued to date. The seller, under the
repurchase agreement, is required to maintain the market value of the
underlying collateral at not less than the value of the repurchase agreement.
Securities subject to repurchase agreements are held by the Federal
Reserve/Treasury book-entry system or by the Fund's custodian or an approved
sub-custodian.
B) MONEY MARKET
Securities are valued at amortized cost, which approximates market value, in
accordance with Rule 2a-7 of the Investment Company Act of 1940.
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 33
<PAGE> 36
NATIONWIDE SEPARATE ACCOUNT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
FOREIGN CURRENCY TRANSACTIONS (SMALL COMPANY FUND)
Fluctuation in the value of investments resulting from changes in foreign
exchange rates are included with net realized and unrealized gain or loss from
investments.
Net realized foreign exchange gains or losses arise from sales of foreign
currencies, currency gains or losses realized on security transactions and the
difference between the amounts of dividends, interest and foreign withholding
taxes recorded on the Fund's books, and the U.S. dollar equivalent of amounts
actually received or paid. Net unrealized foreign exchange gains or losses arise
from changes in the value of assets and liabilities resulting from changes in
exchange rates.
The Fund enters into forward currency exchange contracts which are obligations
to purchase or sell a foreign currency at a specified rate on a certain date in
the future. A net realized gain or loss would be incurred if the value of the
contract increases or decreases between the date the contract is opened and the
date it is closed. Forward currency contracts are marked to market daily and
this change in value is reflected in the Statement of Assets and Liabilities as
a net receivable or payable for foreign currency contracts purchased.
At or before the closing of a forward contract, the Small Company Fund may
either sell a portfolio security and make delivery of the currency, or retain
the security and fully or partially offset its contractual obligation to deliver
the currency by purchasing a second contract. If the Fund retains the portfolio
security and engages in an offsetting transaction, the Fund, at the time of
execution of the offsetting transaction, will incur a gain or loss to the extent
that movement has occurred in forward contract prices.
Forward exchange contracts are used in hedging the risks associated with
commitments to purchase securities denominated in foreign currencies for agreed
amounts. The precise matching of forward currency contract amounts and the value
of the securities involved generally will not be possible because the value of
such securities, measured in the foreign currency, will change after the foreign
currency contract has been established. Thus, the Fund might need to purchase or
sell foreign currencies in the spot (cash) market to the extent such foreign
currencies are not covered by forward contracts. The Fund could be exposed to
risk if a counter party is unable to meet the terms of a forward or if the value
of the currency changes unfavorably. The projection of short-term currency
market movements is difficult, and the successful execution of a short-term
hedging strategy is highly uncertain.
FEDERAL INCOME TAXES
The Trust's policy is to comply with the requirements of the Internal Revenue
Code that are applicable to regulated investment companies and to distribute all
its taxable income to its shareholders. Therefore, no federal income tax
provision is required. To the extent net realized gains are offset through the
application of a capital loss carryover, they will not be distributed to
shareholders but will be retained by the Trust. Each Fund is treated as a
separate taxable entity.
As of December 31, 1996, the Government Bond and Money Market Funds had net
capital loss carry forwards in the amounts of $4,334,590 and $6,604,
respectively, The Government Bond Fund carry forward will expire within 6 years
and the Money Market Fund carry forward will expire within 7 to 8 years.
The Small Company Fund intends to elect for Federal income tax purposes to treat
approximately $296,817 of net capital losses that arose during the period ended
December 31, 1996, as if such losses arose on January 1, 1997.
34 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
<PAGE> 37
NATIONWIDE SEPARATE ACCOUNT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
ORGANIZATION EXPENSES
Initial organization expenses of the Small Company Fund were paid by the advisor
and will be reimbursed by the Fund. Such organization costs have been deferred
and will be amortized ratably over a period of sixty months from the
commencement of operations. If any of the initial shares are redeemed before the
end of the amortization period, the proceeds of the redemption will be reduced
by the pro-rata share of the unamortized organization costs.
SECURITY TRANSACTIONS AND INVESTMENT INCOME
Security transactions are recorded on the trade date. Dividend income is
recorded on the ex-dividend date or for foreign securities, it is recorded as
soon as the information becomes available. Interest income is recorded on an
accrual basis and includes, where applicable, the pro-rata amortization of
premium or discount.
EXPENSES
Expenses directly attributed to each Fund are charged to that Fund. Expenses
applicable to all funds in the Trust are allocated based on average net assets.
DIVIDENDS TO SHAREHOLDERS
A) SMALL COMPANY, CAPITAL APPRECIATION, TOTAL RETURN AND GOVERNMENT BOND
Dividend income is recorded on the ex-dividend date. Dividends from net
investment income are paid quarterly.
B) MONEY MARKET
Dividends from net investment income are declared daily and paid monthly.
C) ALL FUNDS
Net realized gains, if any, are declared and distributed at least annually.
Dividends and distributions to shareholders are determined in accordance with
Federal income tax regulations which may differ from generally accepted
accounting principles. These "book/tax" differences are considered either
permanent or temporary in nature. In accordance with AICPA Statement of
Position 93-2, permanent differences are reclassified within the capital
accounts based on their nature for Federal income tax purposes; temporary
differences do not require reclassification. Dividends and distributions that
exceed net investment income and net realized gains for financial reporting
purposes, but not for tax purposes, are reported as distributions in excess of
net investment income and net realized gains. To the extent distributions
exceed current and accumulated earnings and profits for Federal income tax
purposes, they are reported as distributions of capital.
Accordingly, the undistributed (distributions in excess of) net investment
income, distributions in excess of net realized gain and capital have been
adjusted as of October 31, 1995 and October 31, 1996 by the following amounts:
<TABLE>
<CAPTION>
Undistributed
(distributions in excess of) Distributions in excess of
net investment net realized
10/31/95 income gain Capital
----------------------------------------------------------------- ---------------------------- ---------
<S> <C> <C> <C>
Capital Appreciation Fund $ (1,329) $ 1,329 --
Total Return Fund (227,335) 227,335 --
</TABLE>
<TABLE>
<CAPTION>
10/31/96
-------------------------------------
<S> <C> <C> <C>
Small Company Fund (64,602) 64,602 --
Small Company Fund -- 58,538 $ (58,538)
Money Market Fund 3,388 -- (3,388)
</TABLE>
NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT 35
<PAGE> 38
NATIONWIDE SEPARATE ACCOUNT TRUST
NOTES TO FINANCIAL STATEMENTS -- CONTINUED
DECEMBER 31, 1996
- --------------------------------------------------------------------------------
NOTE 2 - TRANSACTIONS WITH AFFILIATES
As investment manager for the Trust, Nationwide Advisory Services, Inc. (NAS),
an affiliated company, earns an annual management fee of .5% based on the
average daily net assets of the Capital Appreciation Fund, Total Return Fund,
Government Bond Fund and Money Market Fund; this fee would not be payable in
full if the effect of such payment would increase total expense (excluding taxes
other than payroll taxes and brokerage commissions on portfolio transactions) to
an amount exceeding 1% of average daily net assets for any fiscal year. Such
limitations on total expenses did not affect management fees during the periods
covered by the financial statements.
As investment manager for the Small Company Fund, NAS earns an annual management
fee of 1.00% of average daily net assets. From such fees pursuant to
sub-investment advisory agreements, NAS pays subadvisory fees to The Dreyfus
Corporation, Neuberger and Berman, L.P., Pictet International Management
Limited, Strong Capital Management, Inc., Van Eck Associates Corporation and
Warburg, Pincus Consellors, Inc. based on average daily net assets of the
portion of the Small Company Fund under their management. For the year ended
December 31, 1996, NAS collected $851,352 in fees from the Small Company Fund,
and paid $483,572 in fees to the sub-investment advisors.
A subsidiary of NAS (Nationwide Investors Services, Inc.) acts as Transfer and
Dividend Disbursing Agent for the Trust.
NOTE 3 - BANK LOANS
The Trust has an unsecured bank line of credit of $25,000,000. Borrowing under
this arrangement bears interest at the Federal Funds rate plus .50%. No
compensating balances are required. There were no outstanding balances at
December 31, 1996.
NOTE 4 - INVESTMENT TRANSACTIONS
Purchases and sales of securities (excluding U.S. government obligations,
short-term securities and forward currency exchange contracts) and U.S.
government obligations for the year ended December 31, 1996 are summarized as
follows:
<TABLE>
<CAPTION>
LONG-TERM SECURITIES U.S. GOVERNMENT OBLIGATIONS
--------------------------- ---------------------------
PURCHASES SALES PURCHASES SALES
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Small Company Fund $231,307,931 $ 99,827,411 $ 37,166,169 $ 35,055,079
Capital Appreciation Fund 123,666,540 28,546,220 -- --
Total Return Fund 345,941,418 142,341,368 241,988,061 262,126,878
Govt. Bond Fund 22,663,696 15,420,295 134,663,481 122,169,245
Money Market Fund -- -- 26,803,774 --
</TABLE>
Realized gains and losses have been computed on the first-in, first-out basis.
Included in net unrealized appreciation at December 31, 1996, based on cost for
Federal income tax purposes, excluding forward currency contracts for the Small
Company Fund, are the following components:
<TABLE>
<CAPTION>
GROSS GROSS NET
UNREALIZED UNREALIZED UNREALIZED
GAINS LOSSES APPRECIATION
------------ ----------- ------------
<S> <C> <C> <C>
Small Company Fund $ 19,084,551 $(5,414,368) $ 13,670,183
Capital Appreciation Fund 41,832,820 (2,334,406) 39,498,414
Total Return Fund 304,921,518 (5,501,093) 299,420,425
Government Bond Fund 11,452,611 (3,167,921) 8,284,690
</TABLE>
36 NATIONWIDE SEPARATE ACCOUNT TRUST ANNUAL REPORT
