<PAGE> 1
2000
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Nationwide(R) Variable Account - II
June 30, 2000
[THE BEST OF AMERICA LOGO]
SEMI-ANNUAL REPORT
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[NATIONWIDE LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
APO-725-AC (06/00)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTOGRAPH OF THE PRESIDENT]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 2000
semi-annual report of the Nationwide Variable Account-II.
During the first half of 2000 fixed income and equity markets took a hiatus from
their recent advances. It appears the Federal Reserve's interest rate hikers are
accomplishing the intended purpose. Recent economic statistics show some
moderation in the areas of home and vehicles sales because of the higher
interest costs. And, there are other favorable indications that the Fed may yet
"glide" the economy to a soft landing. Inflation remains low. Sustained
increases in worker productivity continue to dampen pricing pressures of an
increasingly tight labor pool. Corporate profitability growth remains viable. An
improving global economy bodes well for U.S. exporting businesses. While all
this provides a positive backdrop, we expect the markets will continue jittery
and volatile during the second half of the year as uncertainty over further Fed
actions persists. However, we believe patient investors in financial assets will
be amply rewarded when we move beyond this temporary respite.
Nationwide Life was a forerunner in the variable annuity and variable life
insurance business. We continue to develop new and innovative investment
products to better meet your financial planning and retirement needs. And, we
are equally committed to providing you, our valued customer, the exceptional
level of customer service you expect and deserve.
/s/ Joseph J. Gasper, President
Joseph J. Gasper, President
August 16, 2000
2
<PAGE> 3
HOW TO READ THE SEMI-ANNUAL REPORT
This semi-annual report is a presentation of the variable account as a whole and
only describes the underlying contracts and products of the variable account in
general terms. Please note the variable account may have more than one variable
product available. Such products may have different underlying mutual funds
available than those available in your contract. Therefore, not all funds listed
in this report may be available in your contract. Please refer to your most
recent account statement for specific information about your investment in the
Nationwide Variable Account-II. Rules and regulations of the United States
Securities and Exchange Commission and recognized conventions of Generally
Accepted Accounting Principals prescribe the format and content of this report.
We also invite you to call our service center at 1-800-848-6331 if you have
questions about your account, or you may access your account using our voice
response unit. And, please visit our web-site at www.bestofamerica.com for
additional information about your contract and to learn more about other
products and services offered by Nationwide Financial.
THE ANNUAL REPORT HAS FOUR MAJOR FINANCIAL SECTIONS:
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNER'S EQUITY
This statement begins on page 4 and lists all of the underlying mutual funds of
the variable account, the number of shares owned, the amount paid for the shares
and their market value as of the close of business on June 30, 2000. The mutual
funds are listed in alphabetical order. The market value of the assets changes
as the underlying mutual funds change in value. As contract owners make exchange
transactions between the funds, the number of shares increases or decreases
accordingly. When money is deposited or withdrawn by a contract owner, shares
are correspondingly purchased or redeemed. The total market value of the funds
is equal to the TOTAL INVESTMENTS of the variable account.
ACCOUNTS RECEIVABLE, if applicable, represents an asset of the variable account
for money market fund shares purchased by contract owners and reinvested
dividend shares added to contract owners' accounts, but not yet added to Total
investments. Total investments plus Accounts receivable equal TOTAL ASSETS of
the variable account.
ACCOUNTS PAYABLE, if applicable, is a liability of the variable account for
money market fund shares redeemed by contract owners' but not yet deducted from
Total investments.
Total assets minus Accounts payable equals CONTRACT OWNERS' EQUITY. A summary of
Contract owners' equity by funds series may be found on page 25. This summary
also includes investment return for the reporting period for each fund series.
STATEMENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
These statements begin on page 7 and present the financial activity of each
underlying mutual fund sub-account of the variable account, for the periods
indicated.
The INVESTMENT ACTIVITY section shows income to the variable account for
reinvested dividends and capital gain distributions paid by the underlying
mutual funds. Also shown are the mortality, expense and administration charges
which are assessed through the daily unit value calculation and which represent
an expense to the variable account and its contract owners. This section also
shows the realized gain or loss as mutual fund shares are sold, and the change
in unrealized gain or loss, which represents the changes in market value of the
underlying fund shares.
The EQUITY TRANSACTIONS section illustrates the receipt of purchase payments, as
new contracts are sold or additional payments made to existing contracts. Also
presented are deductions from the variable account when the contract owners
withdraw money.
The sum of the above two sections represents the NET CHANGE IN CONTRACT OWNERS'
EQUITY which when added to the beginning Contract owners' equity equals Contract
owners' equity at the end of the reporting period.
NOTES TO FINANCIAL STATEMENTS, beginning on page 21, provide further disclosures
about the variable account and its underlying contract provisions.
3
<PAGE> 4
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
Investments at market value:
<S> <C>
American Century VP - American Century VP Balanced (ACVPBal)
25,011,539 shares (cost $191,941,363) ................................... $ 189,087,236
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
28,665,170 shares (cost $352,894,041) ................................... 487,021,230
American Century VP - American Century VP Income & Growth (ACVPIncGr)
11,923,283 shares (cost $87,470,506) .................................... 91,451,580
American Century VP - American Century VP International (ACVPInt)
39,465,558 shares (cost $448,059,981) ................................... 456,221,855
American Century VP - American Century VP Value (ACVPValue)
10,099,766 shares (cost $56,116,875) .................................... 54,740,733
American VI Series - Growth Fund (AVISGro)
554,155 shares (cost $27,901,926) ....................................... 44,975,181
American VI Series - High-Yield Bond Fund (AVISHiYld)
155,295 shares (cost $2,130,233) ........................................ 1,962,925
American VI Series - U.S. Government/AAA-Rated Securities Fund (AVISGvt)
292,856 shares (cost $3,242,631) ........................................ 3,192,131
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
10,637,179 shares (cost $352,463,587) ................................... 426,125,401
Dreyfus Stock Index Fund (DryStkIx)
50,595,162 shares (cost $1,571,744,475) ................................. 1,923,628,067
Dreyfus VIF - Appreciation Portfolio (DryAp)
4,079,105 shares (cost $154,948,867) .................................... 167,161,733
Dreyfus IP - European Equity Portfolio (DryEuroEq)
52,583 shares (cost $839,087) ........................................... 835,015
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
3,915,144 shares (cost $89,639,541) ..................................... 98,583,333
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
85,889,996 shares (cost $1,858,075,994) ................................. 1,967,739,806
Fidelity VIP - Growth Portfolio (FidVIPGr)
75,319,028 shares (cost $3,131,392,984) ................................. 3,881,942,699
Fidelity VIP - High Income Portfolio (FidVIPHI)
50,893,549 shares (cost $556,716,727) ................................... 510,971,232
Fidelity VIP - Overseas Portfolio (FidVIPOv)
26,456,717 shares (cost $641,946,514) ................................... 620,674,579
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
55,981,889 shares (cost $863,510,359) ................................... 925,940,438
</TABLE>
4
<PAGE> 5
<TABLE>
<S> <C>
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
56,438,919 shares (cost $1,205,450,408) .................................... 1,416,052,479
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
7,310,955 shares (cost $159,599,588) ....................................... 150,678,787
Janus Aspen Series - Capital Appreciation Portfolio - Service Shares (JanCapAp)
1,094,154 shares (cost $34,649,015) ........................................ 34,378,312
Janus Aspen Series - Global Technology Portfolio - Service Shares (JanGlobTech)
2,990,213 shares (cost $28,696,678) ........................................ 29,363,889
Janus Aspen Series - International Growth Portfolio - Service Shares (JanInGro)
521,177 shares (cost $20,586,020) .......................................... 20,508,302
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
1,283,202 shares (cost $9,346,531) ......................................... 9,444,366
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
16,233,062 shares (cost $412,657,247) ...................................... 419,786,977
Nationwide SAT - Government Bond Fund (NSATGvtBd)
27,674,472 shares (cost $320,117,413) ...................................... 301,374,995
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
154,064 shares (cost $2,074,833) ........................................... 2,047,508
Nationwide SAT - Money Market Fund (NSATMyMkt)
931,352,747 shares (cost $931,352,747) ..................................... 931,352,747
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
163,695 shares (cost $1,522,066) ........................................... 1,520,731
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
130,542 shares (cost $2,575,483) ........................................... 2,703,515
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
6,239,371 shares (cost $64,822,334) ........................................ 67,322,813
Nationwide SAT - Small Company Fund (NSATSmCo)
15,770,810 shares (cost $331,590,718) ...................................... 375,345,286
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
395,042 shares (cost $7,981,138) ........................................... 8,481,544
Nationwide SAT - Total Return Fund (NSATTotRe)
52,737,177 shares (cost $831,120,387) ...................................... 1,022,573,865
Neuberger Berman AMT - Growth Portfolio (NBAMTGro)
20,432,734 shares (cost $683,695,457) ...................................... 809,953,569
Neuberger Berman AMT - Guardian Portfolio (NBAMTGuard)
2,338,438 shares (cost $36,892,911) ........................................ 38,210,083
Neuberger Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
9,288,555 shares (cost $124,866,680) ....................................... 116,942,909
Neuberger Berman AMT - Partners Portfolio (NBAMTPart)
26,442,146 shares (cost $481,568,398) ...................................... 422,281,075
Oppenheimer Aggressive Growth Fund/VA (OppAggGro)
266,132 shares (cost $24,359,487) .......................................... 25,719,019
Oppenheimer Bond Fund/VA (OppBdFd)
23,386,852 shares (cost $275,571,762) ...................................... 252,811,866
</TABLE>
(Continued)
5
<PAGE> 6
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C>
Oppenheimer Capital Appreciation Fund/VA (OppCapAp)
6,795,958 shares (cost $311,940,961) ................................. 347,545,279
Oppenheimer Global Securities Fund/VA (OppGlSec)
28,334,373 shares (cost $731,351,241) ................................ 905,283,228
Oppenheimer Main Street Growth & Income Fund/VA (OppGrInc)
163,808 shares (cost $3,838,032) ..................................... 3,824,926
Oppenheimer - Multiple Strategies Fund/VA (OppMult)
17,614,328 shares (cost $278,740,886) ................................ 292,221,699
Strong Opportunity Fund II, Inc. (StOpp2)
33,258,644 shares (cost $694,034,734) ................................ 899,646,314
Strong VIF - Strong Discovery Fund II (StDisc2)
10,814,452 shares (cost $121,339,585) ................................ 137,559,832
Strong VIF - Strong International Stock Fund II (StIntStk2)
6,213,260 shares (cost $89,813,631) .................................. 89,595,210
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
6,133,849 shares (cost $63,956,350) .................................. 62,319,902
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
7,811,208 shares (cost $107,247,239) ................................. 97,561,989
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
5,175,478 shares (cost $56,229,462) .................................. 58,275,883
Van Kampen LIT -
Morgan Stanley Real Estate Securities Portfolio (MSRESec)
8,429,697 shares (cost $113,055,148) ................................. 113,463,715
Warburg Pincus Trust - Global Post Venture Capital Portfolio (WPGPVenCp)
2,471,018 shares (cost $51,503,913) .................................. 49,963,983
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
15,433,871 shares (cost $211,939,455) ................................ 235,212,201
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
19,486,682 shares (cost $455,923,716) ................................ 522,827,675
---------------
Total investments ................................................. 22,126,411,647
Accounts receivable ........................................................ 169,088
---------------
Total assets ...................................................... 22,126,580,735
ACCOUNTS PAYABLE .............................................................. 24,465
---------------
CONTRACT OWNERS' EQUITY (NOTE 4) .............................................. $22,126,556,270
===============
See accompanying notes to financial statements.
-------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 7
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Total ACVPBal
------------------------------------ -----------------------------------
2000 1999 2000 1999
---------------- ----------- --------- ---------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 249,366,453 290,718,940 4,946,562 3,991,181
Mortality, expense and administration
charges (note 2):
BOA ....................................... (68,894,698) (78,571,751) (663,088) (716,902)
BOA Vision ................................ (83,682,036) (63,528,916) (648,189) (682,055)
BOA Enterprise ............................ (155,038) (128,643) (1,266) (1,372)
---------------- ----------- --------- ---------
Net investment activity ..................... 96,634,681 148,489,630 3,634,019 2,590,852
---------------- ----------- --------- ---------
Proceeds from mutual fund shares sold ......... 8,062,060,520 5,882,828,507 21,471,087 14,154,195
Cost of mutual fund shares sold ............... (6,973,518,738) (5,354,333,786) (20,940,938) (13,036,483)
---------------- ----------- --------- ---------
Realized gain (loss) on investments ......... 1,088,541,782 528,494,721 530,149 1,117,712
Change in unrealized gain (loss) on investments (2,188,627,945) 482,864,663 (6,412,641) (24,243,869)
---------------- ----------- --------- ---------
Net gain (loss) on investments .............. (1,100,086,163) 1,011,359,384 (5,882,492) (23,126,157)
---------------- ----------- --------- ---------
Reinvested capital gains ...................... 1,243,524,384 744,263,367 3,115,066 27,539,149
---------------- ----------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 240,072,902 1,904,112,381 866,593 7,003,844
---------------- ----------- --------- ---------
Equity transactions:
Purchase payments received from
contract owners ............................. 624,931,650 798,937,993 4,995,177 9,412,618
Transfers between funds ....................... -- -- (7,029,308) (4,498,643)
Redemptions ................................... (2,120,517,505) (1,308,989,155) (16,074,240) (9,831,682)
Annuity benefits .............................. (2,158,127) (1,449,973) (18,786) (9,440)
Annual contract maintenance charge (note 2) ... (4,511,343) (4,542,049) (37,813) (41,847)
Contingent deferred sales charges (note 2) .... (26,028,788) (16,253,266) (185,048) (131,274)
Adjustments to maintain reserves .............. (577,435) (349,774) (1,611) --
---------------- ----------- --------- ---------
Net equity transactions ................... (1,528,861,548) (532,646,223) (18,351,629) (5,100,268)
---------------- ----------- --------- ---------
Net change in contract owners' equity ........... (1,288,788,646) 1,371,466,158 (17,485,036) 1,903,576
Contract owners' equity beginning of period ..... 23,415,344,916 20,672,674,408 206,570,508 208,373,013
---------------- ----------- --------- ---------
Contract owners' equity end of period ........... $ 22,126,556,270 22,044,140,566 189,085,472 210,276,589
================ ============== =========== ===========
ACVPCapAp ACVPIncGr
------------------------------- --------------------------------
2000 1999 2000 1999
------- ------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... -- -- 507,320 11,166
Mortality, expense and administration
charges (note 2):
BOA ....................................... (949,539) (1,235,092) (311,041) (201,915)
BOA Vision ................................ (2,074,378) (419,291) (298,128) (163,350)
BOA Enterprise ............................ (2,301) (689) (352) (144)
----------- ----------- ---------- ----------
Net investment activity ..................... (3,026,218) (1,655,072) (102,201) (354,243)
----------- ----------- ---------- ----------
Proceeds from mutual fund shares sold ......... 105,065,419 91,458,174 19,830,967 11,187,828
Cost of mutual fund shares sold ............... (67,690,341) (103,431,218) (16,513,431) (9,782,112)
----------- ----------- ---------- ----------
Realized gain (loss) on investments ......... 37,375,078 (11,973,044) 3,317,536 1,405,716
Change in unrealized gain (loss) on investments 13,026,386 48,820,862 (7,036,685) 3,962,843
----------- ----------- ---------- ----------
Net gain (loss) on investments .............. 50,401,464 36,847,818 (3,719,149) 5,368,559
----------- ----------- ---------- ----------
Reinvested capital gains ...................... 13,797,979 -- -- --
----------- ----------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 61,173,225 35,192,746 (3,821,350) 5,014,316
----------- ----------- ---------- ----------
Equity transactions:
Purchase payments received from
contract owners ............................. 8,785,215 8,354,679 4,338,712 6,006,267
Transfers between funds ....................... 81,367,721 (18,413,937) 14,115,541 22,851,548
Redemptions ................................... (42,546,931) (19,086,761) (6,929,663) (2,549,800)
Annuity benefits .............................. (37,449) (28,306) -- --
Annual contract maintenance charge (note 2) ... (122,570) (105,114) (14,992) (7,137)
Contingent deferred sales charges (note 2) .... (521,572) (208,688) (78,860) (42,340)
Adjustments to maintain reserves .............. 38,271 1,068 878 (6,396)
----------- ----------- ---------- ----------
Net equity transactions ................... 46,962,685 (29,487,059) 11,431,616 26,252,142
----------- ----------- ---------- ----------
Net change in contract owners' equity ........... 108,135,910 5,705,687 7,610,266 31,266,458
Contract owners' equity beginning of period ..... 378,916,485 251,055,304 83,843,064 38,714,070
----------- ----------- ---------- ----------
Contract owners' equity end of period ........... 487,052,395 256,760,991 91,453,330 69,980,528
=========== =========== ========== ==========
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY,CONTINUED
STATEMENTS OF OPERATIONS,CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPInt ACVPValue
------------------------------- -------------------------------
2000 1999 2000 1999
------------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 599,493 -- 675,725 591,931
Mortality, expense and administration
charges (note 2):
BOA ....................................... (1,735,302) (962,253) (231,930) (199,110)
BOA Vision ................................ (1,646,985) (1,076,236) (164,123) (274,143)
BOA Enterprise ............................ (2,731) (1,082) (452) (564)
------------- ----------- ---------- ----------
Net investment activity ..................... (2,785,525) (2,039,571) 279,220 118,114
------------- ----------- ---------- ----------
Proceeds from mutual fund shares sold ......... 272,677,492 193,891,495 51,496,418 39,328,817
Cost of mutual fund shares sold ............... (176,993,812) (189,829,255) (62,048,025) (42,275,018)
------------- ----------- ---------- ----------
Realized gain (loss) on investments ......... 95,683,680 4,062,240 (10,551,607) (2,946,201)
Change in unrealized gain (loss) on investments (136,055,877) 16,750,075 5,531,003 4,665,167
------------- ----------- ---------- ----------
Net gain (loss) on investments .............. (40,372,197) 20,812,315 (5,020,604) 1,718,966
------------- ----------- ---------- ----------
Reinvested capital gains ...................... 8,963,259 -- 1,729,062 5,607,994
------------- ----------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (34,194,463) 18,772,744 (3,012,322) 7,445,074
------------- ----------- ---------- ----------
Equity transactions:
Purchase payments received from
contract owners ............................. 14,708,889 9,105,639 2,131,362 2,901,332
Transfers between funds ....................... 74,653,521 2,219,442 2,452,592 18,884,051
Redemptions ................................... (42,799,667) (15,677,181) (5,019,602) (3,454,811)
Annuity benefits .............................. (84,274) (16,654) (6,983) (4,154)
Annual contract maintenance charge (note 2) ... (64,279) (43,524) (9,817) (12,084)
Contingent deferred sales charges (note 2) .... (495,347) (212,580) (89,690) (55,715)
Adjustments to maintain reserves .............. (5,445) 10,468 (7,458) 2,254
------------- ----------- ---------- ----------
Net equity transactions ................... 45,913,398 (4,614,390) (549,596) 18,260,873
------------- ----------- ---------- ----------
Net change in contract owners' equity ........... 11,718,935 14,158,354 (3,561,918) 25,705,947
Contract owners' equity beginning of period ..... 444,496,938 291,977,777 58,294,950 68,785,191
------------- ----------- ---------- ----------
Contract owners' equity end of period ........... $ 456,215,873 306,136,131 54,733,032 94,491,138
============= =========== ========== ==========
AVISGro AVISHiYld
---------------------------- -------------------------------
2000 1999 2000 1999
---------- ---------- --------- ---------
<S> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 1,140 32,521 15,997 123,208
Mortality, expense and administration
charges (note 2):
BOA ....................................... -- (214,319) -- (16,389)
BOA Vision ................................ (287,955) -- (12,688) --
BOA Enterprise ............................ -- -- -- --
---------- ---------- --------- ---------
Net investment activity ..................... (286,815) (181,798) 3,309 106,819
---------- ---------- --------- ---------
Proceeds from mutual fund shares sold ......... 4,045,159 4,481,051 464,022 500,551
Cost of mutual fund shares sold ............... (1,768,314) (2,317,262) (535,102) (521,057)
---------- ---------- --------- ---------
Realized gain (loss) on investments ......... 2,276,845 2,163,789 (71,080) (20,506)
Change in unrealized gain (loss) on investments 3,753,663 4,971,008 56,360 (4,814)
---------- ---------- --------- ---------
Net gain (loss) on investments .............. 6,030,508 7,134,797 (14,720) (25,320)
---------- ---------- --------- ---------
Reinvested capital gains ...................... 279,311 -- -- --
---------- ---------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 6,023,004 6,952,999 (11,411) 81,499
---------- ---------- --------- ---------
Equity transactions:
Purchase payments received from
contract owners ............................. 271,244 249,677 21,343 27,276
Transfers between funds ....................... 222,668 267,046 (54,979) (19,444)
Redemptions ................................... (3,118,817) (3,360,979) (128,024) (292,124)
Annuity benefits .............................. (430) (284) (3,247) (3,287)
Annual contract maintenance charge (note 2) ... (5,842) (6,434) (558) (821)
Contingent deferred sales charges (note 2) .... (3,450) (10,885) (566) (818)
Adjustments to maintain reserves .............. 1,516 569 (113) (83)
---------- ---------- --------- ---------
Net equity transactions ................... (2,633,111) (2,861,290) (166,144) (289,301)
---------- ---------- --------- ---------
Net change in contract owners' equity ........... 3,389,893 4,091,709 (177,555) (207,802)
Contract owners' equity beginning of period ..... 41,586,375 31,133,189 2,140,325 2,626,505
---------- ---------- --------- ---------
Contract owners' equity end of period ........... 44,976,268 35,224,898 1,962,770 2,418,703
========== ========== ========= =========
</TABLE>
8
<PAGE> 9
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
AVISGvt DrySRGro
------------------------- ---------------------------
2000 1999 2000 1999
----------- --------- ----------- -----------
<S> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 18,356 126,968 63,366 --
Mortality, expense and administration
charges (note 2):
BOA ......................................... -- (28,030) (1,301,978) (1,071,515)
BOA Vision .................................. (21,856) -- (1,453,669) (966,459)
BOA Enterprise .............................. -- -- (4,951) (1,871)
----------- --------- ----------- -----------
Net investment activity ....................... (3,500) 98,938 (2,697,232) (2,039,845)
----------- --------- ----------- -----------
Proceeds from mutual fund shares sold ........... 623,895 504,249 34,920,669 57,634,136
Cost of mutual fund shares sold ................. (649,217) (521,334) (26,314,459) (44,997,330)
----------- --------- ----------- -----------
Realized gain (loss) on investments ........... (25,322) (17,085) 8,606,210 12,636,806
Change in unrealized gain (loss) on investments . 129,983 (161,279) 2,141,298 22,930,018
----------- --------- ----------- -----------
Net gain (loss) on investments ................ 104,661 (178,364) 10,747,508 35,566,824
----------- --------- ----------- -----------
Reinvested capital gains ........................ -- -- -- --
----------- --------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 101,161 (79,426) 8,050,276 33,526,979
----------- --------- ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................... 35,788 82,878 19,209,234 18,444,034
Transfers between funds ......................... (133,431) (56,511) 36,806,319 35,564,212
Redemptions ..................................... (336,210) (415,675) (30,668,791) (14,886,982)
Annuity benefits ................................ (2,433) (2,533) (44,904) (3,391)
Annual contract maintenance charge (note 2) ..... (1,276) (1,665) (101,660) (79,820)
Contingent deferred sales charges (note 2) ...... (266) (2,358) (503,978) (201,683)
Adjustments to maintain reserves ................ 85 (6) 191,333 1,724
----------- --------- ----------- -----------
Net equity transactions ..................... (437,743) (395,870) 24,887,553 38,838,094
----------- --------- ----------- -----------
Net change in contract owners' equity ............. (336,582) (475,296) 32,937,829 72,365,073
Contract owners' equity beginning of period ....... 3,528,760 4,480,028 393,191,060 265,379,214
----------- --------- ----------- -----------
Contract owners' equity end of period ............. $ 3,192,178 4,004,732 426,128,889 337,744,287
=========== ========= =========== ===========
DryStkIx DryEuroEq
------------------------------- ------------------
2000 1999 2000 1999
------------- ------------- ------- ------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ 9,280,966 10,564,367 -- --
Mortality, expense and administration
charges (note 2):
BOA ......................................... (7,537,349) (5,525,756) (514) --
BOA Vision .................................. (5,862,489) (7,153,018) (526) --
BOA Enterprise .............................. (15,075) (12,535) (18) --
------------- ------------- ------- -----
Net investment activity ....................... (4,133,947) (2,126,942) (1,058) --
------------- ------------- ------- -----
Proceeds from mutual fund shares sold ........... 309,514,492 246,701,792 7,213,815 --
Cost of mutual fund shares sold ................. (210,488,659) (158,053,527) (7,196,753) --
------------- ------------- ------- -----
Realized gain (loss) on investments ........... 99,025,833 88,648,265 17,062 --
Change in unrealized gain (loss) on investments . (126,813,087) 104,558,685 (4,072) --
------------- ------------- ------- -----
Net gain (loss) on investments ................ (27,787,254) 193,206,950 12,990 --
------------- ------------- ------- -----
Reinvested capital gains ........................ 2,210,838 8,315,567 -- --
------------- ------------- ------- -----
Net increase (decrease) in contract owners'
equity resulting from operations .......... (29,710,363) 199,395,575 11,932 --
------------- ------------- ------- -----
Equity transactions:
Purchase payments received from
contract owners ............................... 65,282,725 88,810,790 9,584 --
Transfers between funds ......................... (36,699,010) 111,626,321 813,355 --
Redemptions ..................................... (158,559,763) (86,530,953) 148 --
Annuity benefits ................................ (307,760) (164,315) -- --
Annual contract maintenance charge (note 2) ..... (365,116) (333,878) (4) --
Contingent deferred sales charges (note 2) ...... (2,385,263) (1,325,777) -- --
Adjustments to maintain reserves ................ (235,081) 18,808 -- --
------------- ------------- ------- -----
Net equity transactions ..................... (133,269,268) 112,100,996 823,083 --
------------- ------------- ------- -----
Net change in contract owners' equity ............. (162,979,631) 311,496,571 835,015 --
Contract owners' equity beginning of period ....... 2,086,553,420 1,722,772,232 -- --
------------- ------------- ------- -----
Contract owners' equity end of period ............. 1,923,573,789 2,034,268,803 835,015 --
============= ============= ======= ======
</TABLE>
(Continued)
9
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
DryAp DryGrInc
----------------------------- --------------------------
2000 1999 2000 1999
------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 8,483 10,752 267,051 339,287
Mortality, expense and administration
charges (note 2):
BOA ....................................... (605,371) (643,195) (385,452) (203,776)
BOA Vision ................................ (572,282) (668,534) (252,541) (324,224)
BOA Enterprise ............................ (1,526) (1,319) (1,885) (1,570)
------------- ------------ ----------- -----------
Net investment activity ..................... (1,170,696) (1,302,296) (372,827) (190,283)
------------- ------------ ----------- -----------
Proceeds from mutual fund shares sold ......... 75,723,583 37,600,675 10,580,759 10,076,485
Cost of mutual fund shares sold ............... (62,317,554) (33,966,852) (8,670,296) (9,693,078)
------------- ------------ ----------- -----------
Realized gain (loss) on investments ......... 13,406,029 3,633,823 1,910,463 383,407
Change in unrealized gain (loss) on investments (10,036,670) 9,721,852 (3,097,553) 7,529,142
------------- ------------ ----------- -----------
Net gain (loss) on investments .............. 3,369,359 13,355,675 (1,187,090) 7,912,549
------------- ------------ ----------- -----------
Reinvested capital gains ...................... -- -- 22,955 --
------------- ------------ ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,198,663 12,053,379 (1,536,962) 7,722,266
------------- ------------ ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 6,794,184 12,303,541 4,565,039 5,727,218
Transfers between funds ....................... (23,735,245) 33,873,192 13,049,993 (7,493,393)
Redemptions ................................... (18,928,623) (12,314,741) (4,939,451) (3,966,232)
Annuity benefits .............................. (33,539) (2,294) (306) (283)
Annual contract maintenance charge (note 2) ... (32,489) (28,658) (21,598) (18,840)
Contingent deferred sales charges (note 2) .... (261,534) (142,181) (86,819) (85,050)
Adjustments to maintain reserves .............. (158,895) 4,040 1,866 178
------------- ------------ ----------- -----------
Net equity transactions ................... (36,356,141) 33,692,899 12,568,724 (5,836,402)
------------- ------------ ----------- -----------
Net change in contract owners' equity ........... (34,157,478) 45,746,278 11,031,762 1,885,864
Contract owners' equity beginning of period ..... 201,392,760 167,200,842 87,553,377 80,471,309
------------- ------------ ----------- -----------
Contract owners' equity end of period ........... $ 167,235,282 212,947,120 98,585,139 82,357,173
============= ============ =========== ===========
FidVIPEI FidVIPGr
-------------------------------- --------------------------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 38,829,214 39,615,425 4,266,552 5,073,051
Mortality, expense and administration
charges (note 2):
BOA ....................................... (6,527,626) (10,099,054) (9,583,967) (13,336,326)
BOA Vision ................................ (7,666,687) (8,069,370) (16,391,745) (7,153,251)
BOA Enterprise ............................ (6,243) (7,591) (18,033) (11,717)
-------------- -------------- -------------- --------------
Net investment activity ..................... 24,628,658 21,439,410 (21,727,193) (15,428,243)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ......... 424,931,753 306,411,842 425,480,641 350,791,984
Cost of mutual fund shares sold ............... (328,621,261) (187,834,294) (251,040,325) (232,684,424)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments ......... 96,310,492 118,577,548 174,440,316 118,107,560
Change in unrealized gain (loss) on investments (356,261,105) 76,655,761 (409,586,355) (38,669,597)
-------------- -------------- -------------- --------------
Net gain (loss) on investments .............. (259,950,613) 195,233,309 (235,146,039) 79,437,963
-------------- -------------- -------------- --------------
Reinvested capital gains ...................... 146,286,807 87,570,939 424,521,957 318,968,052
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (89,035,148) 304,243,658 167,648,725 382,977,772
-------------- -------------- -------------- --------------
Equity transactions:
Purchase payments received from
contract owners ............................. 43,627,533 73,175,952 95,922,842 97,040,068
Transfers between funds ....................... (225,413,438) (140,048,349) 116,213,625 241,185,441
Redemptions ................................... (191,129,623) (143,976,169) (346,546,083) (188,033,525)
Annuity benefits .............................. (181,977) (185,496) (435,920) (272,830)
Annual contract maintenance charge (note 2) ... (426,352) (559,844) (808,399) (731,590)
Contingent deferred sales charges (note 2) .... (2,218,672) (1,660,850) (3,865,533) (1,880,001)
Adjustments to maintain reserves .............. 130,785 (157,701) 115,472 103,288
-------------- -------------- -------------- --------------
Net equity transactions ................... (375,611,744) (213,412,457) (139,403,996) 147,410,851
-------------- -------------- -------------- --------------
Net change in contract owners' equity ........... (464,646,892) 90,831,201 28,244,729 530,388,623
Contract owners' equity beginning of period ..... 2,432,567,707 2,718,198,740 3,853,864,375 2,774,103,603
-------------- -------------- -------------- --------------
Contract owners' equity end of period ........... 1,967,920,815 2,809,029,941 3,882,109,104 3,304,492,226
============== ============== ============== ==============
</TABLE>
10
<PAGE> 11
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPHI FidVIPOv
----------------------------- ----------------------------
2000 1999 2000 1999
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 38,902,379 69,916,879 9,681,807 8,607,336
Mortality, expense and administration
charges (note 2):
BOA ....................................... (2,036,203) (2,328,860) (1,340,536) (2,647,999)
BOA Vision ................................ (1,622,563) (2,723,143) (3,017,653) (1,101,760)
BOA Enterprise ............................ (1,909) (2,179) (1,021) (304)
------------- ------------ ------------ ------------
Net investment activity ..................... 35,241,704 64,862,697 5,322,597 4,857,273
------------- ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 166,063,988 279,781,744 462,849,888 438,195,889
Cost of mutual fund shares sold ............... (179,135,726) (314,489,226) (410,908,038) (430,655,378)
------------- ------------ ------------ ------------
Realized gain (loss) on investments ......... (13,071,738) (34,707,482) 51,941,850 7,540,511
Change in unrealized gain (loss) on investments (53,024,531) 21,019,693 (154,063,243) 16,711,526
------------- ------------ ------------ ------------
Net gain (loss) on investments .............. (66,096,269) (13,687,789) (102,121,393) 24,252,037
------------- ------------ ------------ ------------
Reinvested capital gains ...................... - 2,613,715 60,969,217 13,882,800
------------- ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (30,854,565) 53,788,623 (35,829,579) 42,992,110
------------- ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 10,392,183 19,693,435 13,631,818 12,725,800
Transfers between funds ....................... (39,465,177) (66,617,513) (5,789,255) (5,504,157)
Redemptions ................................... (49,764,657) (46,242,231) (53,303,442) (33,835,069)
Annuity benefits .............................. (35,912) (35,062) (78,695) (72,706)
Annual contract maintenance charge (note 2) ... (85,352) (116,092) (137,222) (144,148)
Contingent deferred sales charges (note 2) .... (607,904) (594,658) (474,579) (343,719)
Adjustments to maintain reserves .............. 32,508 27,149 5,288 3,192
------------- ------------ ------------ ------------
Net equity transactions ................... (79,534,311) (93,884,972) (46,146,087) (27,170,807)
------------- ------------ ------------ ------------
Net change in contract owners' equity ........... (110,388,876) (40,096,349) (81,975,666) 15,821,303
Contract owners' equity beginning of period ..... 621,394,463 729,750,831 702,663,598 578,773,393
------------- ------------ ------------ ------------
Contract owners' equity end of period ........... $ 511,005,587 689,654,482 620,687,932 594,594,696
============= ============ ============ ============
FidVIPAM FidVIPCon
-------------------------------- --------------------------------
2000 1999 2000 1999
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 32,748,330 37,279,047 5,252,803 6,098,599
Mortality, expense and administration
charges (note 2):
BOA ....................................... (2,028,286) (5,215,844) (5,423,812) (4,029,642)
BOA Vision ................................ (4,520,806) (2,207,137) (4,584,990) (4,906,306)
BOA Enterprise ............................ (1,791) (1,715) (5,622) (3,878)
-------------- -------------- -------------- --------------
Net investment activity ..................... 26,197,447 29,854,351 (4,761,621) (2,841,227)
-------------- -------------- -------------- --------------
Proceeds from mutual fund shares sold ......... 129,882,209 94,367,216 149,041,045 117,999,214
Cost of mutual fund shares sold ............... (118,137,751) (77,934,816) (91,937,081) (69,404,448)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments ......... 11,744,458 16,432,400 57,103,964 48,594,766
Change in unrealized gain (loss) on investments (129,570,240) (43,739,964) (273,096,393) 40,498,343
-------------- -------------- -------------- --------------
Net gain (loss) on investments .............. (117,825,782) (27,307,564) (215,992,429) 89,093,109
-------------- -------------- -------------- --------------
Reinvested capital gains ...................... 77,152,846 47,220,126 190,676,735 44,723,057
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (14,475,489) 49,766,913 (30,077,315) 130,974,939
-------------- -------------- -------------- --------------
Equity transactions:
Purchase payments received from
contract owners ............................. 20,286,693 29,679,952 41,930,777 53,986,917
Transfers between funds ....................... (45,846,614) (34,689,864) 1,972,063 60,140,404
Redemptions ................................... (95,965,068) (74,926,291) (123,325,108) (56,384,796)
Annuity benefits .............................. (103,851) (114,798) (79,218) (51,867)
Annual contract maintenance charge (note 2) ... (252,278) (300,063) (260,053) (242,795)
Contingent deferred sales charges (note 2) .... (847,147) (699,172) (1,870,917) (843,083)
Adjustments to maintain reserves .............. (28,002) 3,984 (29,077) 20,872
-------------- -------------- -------------- --------------
Net equity transactions ................... (122,756,267) (81,046,252) (81,661,533) 56,625,652
-------------- -------------- -------------- --------------
Net change in contract owners' equity ........... (137,231,756) (31,279,339) (111,738,848) 187,600,591
Contract owners' equity beginning of period ..... 1,063,152,296 1,138,558,288 1,527,826,708 1,224,548,927
-------------- -------------- -------------- --------------
Contract owners' equity end of period ........... 925,920,540 1,107,278,949 1,416,087,860 1,412,149,518
============== ============== ============== ==============
</TABLE>
(Continued)
11
<PAGE> 12
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
FidVIPGrOp JanCapApp JanGlTech
----------------------------- ------------------- -------------------
2000 1999 2000 1999 2000 1999
------------- ------------ ----------- ---- ----------- ----
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 2,124,444 1,703,363 14,597 -- -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (625,730) (502,280) (26,453) -- (16,730) --
BOA Vision ................................ (431,885) (711,815) (13,467) -- (16,258) --
BOA Enterprise ............................ (913) (812) (75) -- (50) --
------------- ------------ ----------- ---- ----------- ----
Net investment activity ..................... 1,065,916 488,456 (25,398) -- (33,038) --
------------- ------------ ----------- ---- ----------- ----
Proceeds from mutual fund shares sold ......... 75,973,789 31,255,780 8,845,658 -- 5,236,453 --
Cost of mutual fund shares sold ............... (73,792,164) (26,948,490) (9,027,828) -- (5,462,563) --
------------- ------------ ----------- ---- ----------- ----
Realized gain (loss) on investments ......... 2,181,625 4,307,290 (182,170) -- (226,110) --
Change in unrealized gain (loss) on investments (21,992,762) 2,876,763 (270,703) -- 667,210 --
------------- ------------ ----------- ---- ----------- ----
Net gain (loss) on investments .............. (19,811,137) 7,184,053 (452,873) -- 441,100 --
------------- ------------ ----------- ---- ----------- ----
Reinvested capital gains ...................... 10,773,968 3,184,549 -- -- -- --
------------- ------------ ----------- ---- ----------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ (7,971,253) 10,857,058 (478,271) -- 408,062 --
------------- ------------ ----------- ---- ----------- ----
Equity transactions:
Purchase payments received from
contract owners ............................. 7,237,891 13,967,012 701,023 -- 594,370 --
Transfers between funds ....................... (16,178,095) 22,663,816 35,065,848 -- 29,821,594 --
Redemptions ................................... (15,679,005) (7,891,022) (913,389) -- (1,445,050) --
Annuity benefits .............................. (1,623) (40) -- -- -- --
Annual contract maintenance charge (note 2) ... (31,082) (27,699) (609) -- (566) --
Contingent deferred sales charges (note 2) .... (239,021) (108,764) (11,683) -- (19,484) --
Adjustments to maintain reserves .............. (14,018) 622 (70,228) -- (95,097) --
------------- ------------ ----------- ---- ----------- ----
Net equity transactions ................... (24,904,953) 28,603,925 34,770,962 -- 28,855,767 --
------------- ------------ ----------- ---- ----------- ----
Net change in contract owners' equity ........... (32,876,206) 39,460,983 34,292,691 -- 29,263,829 --
Contract owners' equity beginning of period ..... 183,537,138 158,829,125 -- -- -- --
------------- ------------ ----------- ---- ----------- ----
Contract owners' equity end of period ........... $ 150,660,932 198,290,108 34,292,691 -- 29,263,829 --
============= ============ =========== ==== =========== ====
JanIntGro
------------------
2000 1999
----------- ----
<S> <C> <C>
Investment activity:
Reinvested dividends .......................... -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (13,616) --
BOA Vision ................................ (13,964) --
BOA Enterprise ............................ (110) --
----------- ----
Net investment activity ..................... (27,690) --
----------- ----
Proceeds from mutual fund shares sold ......... 14,129,318 --
Cost of mutual fund shares sold ............... (13,717,596) --
----------- ----
Realized gain (loss) on investments ......... 411,722 --
Change in unrealized gain (loss) on investments (77,717) --
----------- ----
Net gain (loss) on investments .............. 334,005 --
----------- ----
Reinvested capital gains ...................... -- --
----------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ 306,315 --
----------- ----
Equity transactions:
Purchase payments received from
contract owners ............................. 412,525 --
Transfers between funds ....................... 21,332,787 --
Redemptions ................................... (1,530,787) --
Annuity benefits .............................. -- --
Annual contract maintenance charge (note 2) ... (543) --
Contingent deferred sales charges (note 2) .... (17,846) --
Adjustments to maintain reserves .............. (31,157) --
----------- ----
Net equity transactions ................... 20,164,979 --
----------- ----
Net change in contract owners' equity ........... 20,471,294 --
Contract owners' equity beginning of period ..... -- --
----------- ----
Contract owners' equity end of period ........... 20,471,294 --
=========== ====
</TABLE>
12
<PAGE> 13
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MSEmMkt NSATCapAp
--------------------------- ----------------------------
2000 1999 2000 1999
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ -- -- 741,998 1,862,260
Mortality, expense and administration
charges (note 2):
BOA ....................................... (37,368) (32,325) (1,354,806) (2,390,158)
BOA Vision ................................ (36,112) (31,455) (1,611,024) (2,058,027)
BOA Enterprise ............................ (78) (6) (16,027) (17,451)
------------ ----------- ------------ ------------
Net investment activity ..................... (73,558) (63,786) (2,239,859) (2,603,376)
------------ ----------- ------------ ------------
Proceeds from mutual fund shares sold ......... 22,436,355 26,228,043 153,858,062 117,848,687
Cost of mutual fund shares sold ............... (22,409,619) (26,038,987) (137,885,109) (78,307,505)
------------ ----------- ------------ ------------
Realized gain (loss) on investments ......... 26,736 189,056 15,972,953 39,541,182
Change in unrealized gain (loss) on investments 444,322 762,187 (21,515,964) 33,550,274
------------ ----------- ------------ ------------
Net gain (loss) on investments .............. 471,058 951,243 (5,543,011) 73,091,456
------------ ----------- ------------ ------------
Reinvested capital gains ...................... -- -- -- --
------------ ----------- ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 397,500 887,457 (7,782,870) 70,488,080
------------ ----------- ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 408,238 429,421 14,948,745 32,237,189
Transfers between funds ....................... (277,000) (1,344,897) (108,048,613) (63,379,305)
Redemptions ................................... (610,726) (520,403) (40,464,449) (33,537,659)
Annuity benefits .............................. -- -- (69,752) (14,635)
Annual contract maintenance charge (note 2) ... (1,869) (1,703) (124,821) (144,421)
Contingent deferred sales charges (note 2) .... (8,510) (8,325) (607,993) (469,398)
Adjustments to maintain reserves .............. 186 54 (87,704) 7,012
------------ ----------- ------------ ------------
Net equity transactions ................... (489,681) (1,445,853) (134,454,587) (65,301,217)
------------ ----------- ------------ ------------
Net change in contract owners' equity .......... (92,181) (558,396) (142,237,457) 5,186,863
Contract owners' equity beginning of period ..... 9,536,723 8,731,806 561,997,538 698,327,731
------------ ----------- ------------ ------------
Contract owners' equity end of period ........... $ 9,444,542 8,173,410 419,760,081 703,514,594
============ =========== ============ ============
NSATGvtBd NSATMidCap
---------------------------- ------------------
2000 1999 2000 1999
------------ ------------ ---------- ----
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 9,313,829 11,189,173 2,076 --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (958,645) (1,648,068) (1,530) --
BOA Vision ................................ (1,213,497) (1,200,500) (1,046) --
BOA Enterprise ............................ (2,049) (4,050) (15) --
------------ ------------ ---------- ----
Net investment activity ..................... 7,139,638 8,336,555 (515) --
------------ ------------ ---------- ----
Proceeds from mutual fund shares sold ......... 103,779,892 69,669,932 201,210 --
Cost of mutual fund shares sold ............... (111,177,846) (67,953,586) (202,059) --
------------ ------------ ---------- ----
Realized gain (loss) on investments ......... (7,397,954) 1,716,346 (849) --
Change in unrealized gain (loss) on investments 10,406,099 (22,283,958) (27,325) --
------------ ------------ ---------- ----
Net gain (loss) on investments .............. 3,008,145 (20,567,612) (28,174) --
------------ ------------ ---------- ----
Reinvested capital gains ...................... -- -- -- --
------------ ------------ ---------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ 10,147,783 (12,231,057) (28,689) --
------------ ------------ ---------- ----
Equity transactions:
Purchase payments received from
contract owners ............................. 7,099,655 25,796,170 51,259 --
Transfers between funds ....................... (40,349,562) (28,741,507) 2,044,471 --
Redemptions ................................... (34,434,134) (29,852,228) (19,353) --
Annuity benefits .............................. (32,893) (42,130) -- --
Annual contract maintenance charge (note 2) ... (67,300) (85,486) (49) --
Contingent deferred sales charges (note 2) .... (350,803) (274,135) (133) --
Adjustments to maintain reserves .............. 138,368 (7,727) (925) --
------------ ------------ ---------- ----
Net equity transactions ................... (67,996,669) (33,207,043) 2,075,270 --
------------ ------------ ---------- ----
Net change in contract owners' equity .......... (57,848,886) (45,438,100) 2,046,581 --
Contract owners' equity beginning of period ..... 359,219,855 441,874,130 -- --
------------ ------------ ---------- ----
Contract owners' equity end of period ........... 301,370,969 396,436,030 2,046,581 --
============ ============ ========== ====
</TABLE>
(Continued)
13
<PAGE> 14
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMyMkt NSATMSecBd NSATSmCapG
--------------------------------- ------------------ ------------------
2000 1999 2000 1999 2000 1999
--------------- -------------- ---------- ---- ---------- ----
<S> <C> <C> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 30,086,542 25,103,584 21,927 -- -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (3,354,783) (3,910,962) (862) -- (1,679) --
BOA Vision ................................ (3,946,005) (3,349,749) (909) -- (957) --
BOA Enterprise ............................ (8,141) (7,238) (2) -- -- --
--------------- -------------- ---------- ---- ---------- ----
Net investment activity ..................... 22,777,613 17,835,635 20,154 -- (2,636) --
--------------- -------------- ---------- ---- ---------- ----
Proceeds from mutual fund shares sold ......... 2,742,721,517 1,809,935,555 2,244,074 -- 1,202,601 --
Cost of mutual fund shares sold ............... (2,742,721,517) (1,809,935,556) (2,222,882) -- (1,267,117) --
--------------- -------------- ---------- ---- ---------- ----
Realized gain (loss) on investments ......... -- (1) 21,192 -- (64,516) --
Change in unrealized gain (loss) on investments -- -- (1,335) -- 128,032 --
--------------- -------------- ---------- ---- ---------- ----
Net gain (loss) on investments .............. -- (1) 19,857 -- 63,516 --
--------------- -------------- ---------- ---- ---------- ----
Reinvested capital gains ...................... -- -- -- -- -- --
--------------- -------------- ---------- ---- ---------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ 22,777,613 17,835,634 40,011 -- 60,880 --
--------------- -------------- ---------- ---- ---------- ----
Equity transactions:
Purchase payments received from
contract owners ............................. 66,663,844 85,172,299 (135) -- 79,867 --
Transfers between funds ....................... (220,467,601) 181,689,852 1,485,185 -- 2,596,365 --
Redemptions ................................... (233,373,978) (203,591,460) (4,302) -- (33,192) --
Annuity benefits .............................. (14,948) (12,916) -- -- -- --
Annual contract maintenance charge (note 2) ... (183,204) (192,420) (9) -- (35) --
Contingent deferred sales charges (note 2) .... (2,973,494) (2,896,906) (21) -- (371) --
Adjustments to maintain reserves .............. (46,440) (524,261) 15 -- (16,451) --
--------------- -------------- ---------- ---- ---------- ----
Net equity transactions ................... (390,395,821) 59,644,188 1,480,733 -- 2,626,183 --
--------------- -------------- ---------- ---- ---------- ----
Net change in contract owners' equity ........... (367,618,208) 77,479,822 1,520,744 -- 2,687,063 --
Contract owners' equity beginning of period ..... 1,299,061,462 971,315,955 -- -- -- --
--------------- -------------- ---------- ---- ---------- ----
Contract owners' equity end of period ........... $ 931,443,254 1,048,795,777 1,520,744 -- 2,687,063 --
=============== ============== ========== ==== ========== ====
NSATSmCapV
--------------------------
2000 1999
----------- -----------
<S> <C> <C>
Investment activity:
Reinvested dividends .......................... -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (203,252) (74,401)
BOA Vision ................................ (199,431) (61,887)
BOA Enterprise ............................ (567) (227)
----------- -----------
Net investment activity ..................... (403,250) (136,515)
----------- -----------
Proceeds from mutual fund shares sold ......... 50,016,546 54,359,039
Cost of mutual fund shares sold ............... (50,353,905) (50,983,250)
----------- -----------
Realized gain (loss) on investments ......... (337,359) 3,375,789
Change in unrealized gain (loss) on investments 5,085,191 2,704,788
----------- -----------
Net gain (loss) on investments .............. 4,747,832 6,080,577
----------- -----------
Reinvested capital gains ...................... -- 573,405
----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,344,582 6,517,467
----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 2,239,325 785,438
Transfers between funds ....................... 13,639,976 28,006,868
Redemptions ................................... (4,516,502) (1,112,890)
Annuity benefits .............................. (1,932) --
Annual contract maintenance charge (note 2) ... (8,000) (2,507)
Contingent deferred sales charges (note 2) .... (56,263) (16,786)
Adjustments to maintain reserves .............. (43,921) 313
----------- -----------
Net equity transactions ................... 11,252,683 27,660,436
----------- -----------
Net change in contract owners' equity ........... 15,597,265 34,177,903
Contract owners' equity beginning of period ..... 51,722,822 13,630,519
----------- -----------
Contract owners' equity end of period ........... 67,320,087 47,808,422
=========== ===========
</TABLE>
14
<PAGE> 15
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSmCo NSATStrGro
----------------------------- ------------------
2000 1999 2000 1999
------------- ------------ ---------- ----
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ $ 97,333 -- -- --
Mortality, expense and administration
charges (note 2):
BOA ......................................... (1,381,992) (728,783) (8,371) --
BOA Vision .................................. (1,172,292) (905,710) (3,758) --
BOA Enterprise .............................. (7,087) (3,388) (28) --
------------- ------------ ---------- ----
Net investment activity ....................... (2,464,038) (1,637,881) (12,157) --
------------- ------------ ---------- ----
Proceeds from mutual fund shares sold ........... 149,643,867 140,035,545 1,094,411 --
Cost of mutual fund shares sold ................. (94,942,685) (147,128,945) (1,086,765) --
------------- ------------ ---------- ----
Realized gain (loss) on investments ........... 54,701,182 (7,093,400) 7,646 --
Change in unrealized gain (loss) on investments . (31,527,774) 22,245,869 500,406 --
------------- ------------ ---------- ----
Net gain (loss) on investments ................ 23,173,408 15,152,469 508,052 --
------------- ------------ ---------- ----
Reinvested capital gains ........................ -- -- -- --
------------- ------------ ---------- ----
Net increase (decrease) in contract owners'
equity resulting from operations .......... 20,709,370 13,514,588 495,895 --
------------- ------------ ---------- ----
Equity transactions:
Purchase payments received from
contract owners ............................... 10,785,675 9,574,468 38,948 --
Transfers between funds ......................... 54,019,373 (46,291,578) 8,735,781 --
Redemptions ..................................... (31,995,104) (12,400,824) (776,393) --
Annuity benefits ................................ (43,175) (13,433) -- --
Annual contract maintenance charge (note 2) ..... (66,971) (53,127) (213) --
Contingent deferred sales charges (note 2) ...... (436,880) (185,520) (12,474) --
Adjustments to maintain reserves ................ 20,884 (5,219) (2,473) --
------------- ------------ ---------- ----
Net equity transactions ..................... 32,283,802 (49,375,233) 7,983,176 --
------------- ------------ ---------- ----
Net change in contract owners' equity ............. 52,993,172 (35,860,645) 8,479,071 --
Contract owners' equity beginning of period ....... 322,560,567 281,418,074 -- --
------------- ------------ ---------- ----
Contract owners' equity end of period ............. $ 375,553,739 245,557,429 8,479,071 --
============= ============ ========== ====
NSATTotRe NBAMTGro
-------------------------------- ----------------------------
2000 1999 2000 1999
-------------- -------------- ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ............................ 2,763,740 4,852,023 -- --
Mortality, expense and administration
charges (note 2):
BOA ......................................... (3,110,533) (4,696,052) (1,475,993) (2,080,416)
BOA Vision .................................. (3,909,036) (3,619,090) (3,358,903) (713,865)
BOA Enterprise .............................. (26,598) (28,088) (3,791) (1,321)
-------------- -------------- ------------ ------------
Net investment activity ....................... (4,282,427) (3,491,207) (4,838,687) (2,795,602)
-------------- -------------- ------------ ------------
Proceeds from mutual fund shares sold ........... 202,162,812 119,901,944 220,254,205 160,735,413
Cost of mutual fund shares sold ................. (127,815,218) (64,023,117) (138,362,613) (179,838,075)
-------------- -------------- ------------ ------------
Realized gain (loss) on investments ........... 74,347,594 55,878,827 81,891,592 (19,102,662)
Change in unrealized gain (loss) on investments . (48,067,431) 66,876,780 (60,704,310) 4,904,592
-------------- -------------- ------------ ------------
Net gain (loss) on investments ................ 26,280,163 122,755,607 21,187,282 (14,198,070)
-------------- -------------- ------------ ------------
Reinvested capital gains ........................ -- 565,910 58,133,678 23,683,476
-------------- -------------- ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 21,997,736 119,830,310 74,482,273 6,689,804
-------------- -------------- ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................... 26,247,553 47,187,871 14,454,702 9,718,976
Transfers between funds ......................... (99,368,001) (44,877,569) 196,001,381 (60,488,788)
Redemptions ..................................... (88,527,708) (59,307,507) (65,078,584) (28,060,950)
Annuity benefits ................................ (145,940) (127,900) (70,782) (48,771)
Annual contract maintenance charge (note 2) ..... (277,054) (315,656) (150,658) (124,733)
Contingent deferred sales charges (note 2) ...... (1,240,758) (782,293) (523,860) (255,901)
Adjustments to maintain reserves ................ (134,600) 15,176 58,922 51
-------------- -------------- ------------ ------------
Net equity transactions ..................... (163,446,508) (58,207,878) 144,691,121 (79,260,116)
-------------- -------------- ------------ ------------
Net change in contract owners' equity ............. (141,448,772) 61,622,432 219,173,394 (72,570,312)
Contract owners' equity beginning of period ....... 1,163,975,494 1,231,708,938 590,827,594 484,441,048
-------------- -------------- ------------ ------------
Contract owners' equity end of period ............. 1,022,526,722 1,293,331,370 810,000,988 411,870,736
============== ============== ============ ============
</TABLE>
(Continued)
15
<PAGE> 16
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTGuard NBAMTLMat
--------------------------- ---------------------------
2000 1999 2000 1999
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 236,166 165,509 8,603,739 9,460,320
Mortality, expense and administration
charges (note 2):
BOA ....................................... (148,661) (150,721) (355,232) (653,426)
BOA Vision ................................ (130,748) (203,775) (491,084) (457,330)
BOA Enterprise ............................ (294) (538) (251) (432)
------------ ----------- ------------ ------------
Net investment activity ..................... (43,537) (189,525) 7,757,172 8,349,132
------------ ----------- ------------ ------------
Proceeds from mutual fund shares sold ......... 29,320,020 8,953,790 27,487,169 26,481,089
Cost of mutual fund shares sold ............... (27,238,493) (8,935,283) (29,821,829) (27,747,217)
------------ ----------- ------------ ------------
Realized gain (loss) on investments ......... 2,081,527 18,507 (2,334,660) (1,266,128)
Change in unrealized gain (loss) on investments (1,463,639) 8,160,327 (3,973,380) (7,625,457)
------------ ----------- ------------ ------------
Net gain (loss) on investments .............. 617,888 8,178,834 (6,308,040) (8,891,585)
------------ ----------- ------------ ------------
Reinvested capital gains ...................... -- -- -- --
------------ ----------- ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 574,351 7,989,309 1,449,132 (542,453)
------------ ----------- ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 1,525,895 3,433,741 2,148,175 5,425,255
Transfers between funds ....................... (8,258,594) 22,060,365 (11,480,923) (15,768,567)
Redemptions ................................... (3,312,267) (4,502,438) (15,441,391) (11,751,298)
Annuity benefits .............................. -- -- (30,403) (35,307)
Annual contract maintenance charge (note 2) ... (7,562) (7,669) (22,223) (29,664)
Contingent deferred sales charges (note 2) .... (49,972) (58,520) (113,524) (106,558)
Adjustments to maintain reserves .............. 955 670 2,101 (5,658)
------------ ----------- ------------ ------------
Net equity transactions ................... (10,101,545) 20,926,149 (24,938,188) (22,271,797)
------------ ----------- ------------ ------------
Net change in contract owners' equity ........... (9,527,194) 28,915,458 (23,489,056) (22,814,250)
Contract owners' equity beginning of period ..... 47,738,194 37,860,012 140,433,092 178,684,975
------------ ----------- ------------ ------------
Contract owners' equity end of period ........... $ 38,211,000 66,775,470 116,944,036 155,870,725
============ =========== ============ ============
NBAMTPart OppAggGro
---------------------------- -------------------
2000 1999 2000 1999
------------ ------------ ----------- ----
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 3,642,418 7,337,748 -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (1,822,689) (1,772,050) (9,991) --
BOA Vision ................................ (1,277,039) (2,435,162) (10,195) --
BOA Enterprise ............................ (3,228) (3,901) (32) --
------------ ------------ ----------- ----
Net investment activity ..................... 539,462 3,126,635 (20,218) --
------------ ------------ ----------- ----
Proceeds from mutual fund shares sold ......... 124,400,652 163,207,305 5,248,363 --
Cost of mutual fund shares sold ............... (150,557,851) (143,715,540) (4,830,336) --
------------ ------------ ----------- ----
Realized gain (loss) on investments ......... (26,157,199) 19,491,765 418,027 --
Change in unrealized gain (loss) on investments (59,574,701) 36,172,211 1,359,532 --
------------ ------------ ----------- ----
Net gain (loss) on investments .............. (85,731,900) 55,663,976 1,777,559 --
------------ ------------ ----------- ----
Reinvested capital gains ...................... 77,462,093 12,761,301 -- --
------------ ------------ ----------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ (7,730,345) 71,551,912 1,757,341 --
------------ ------------ ----------- ----
Equity transactions:
Purchase payments received from
contract owners ............................. 11,335,160 20,294,009 530,944 --
Transfers between funds ....................... (67,432,557) (111,373,575) 23,896,978 --
Redemptions ................................... (34,071,515) (27,063,676) (463,624) --
Annuity benefits .............................. (18,353) (13,475) -- --
Annual contract maintenance charge (note 2) ... (87,602) (122,587) (389) --
Contingent deferred sales charges (note 2) .... (542,388) (403,470) (7,235) --
Adjustments to maintain reserves .............. 15,547 (838) (388,063) --
------------ ------------ ----------- ----
Net equity transactions ................... (90,801,708) (118,683,612) 23,568,611 --
------------ ------------ ----------- ----
Net change in contract owners' equity ........... (98,532,053) (47,131,700) 25,325,952 --
Contract owners' equity beginning of period ..... 520,826,478 665,008,012 -- --
------------ ------------ ----------- ----
Contract owners' equity end of period ........... 422,294,425 617,876,312 25,325,952 --
============ ============ =========== ====
</TABLE>
16
<PAGE> 17
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
OppBdFd OppGlSec
----------------------------- ----------------------------
2000 1999 2000 1999
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 21,310,736 15,414,869 2,311,484 6,228,265
Mortality, expense and administration
charges (note 2):
BOA ....................................... (1,011,222) (1,005,445) (3,088,826) (1,780,015)
BOA Vision ................................ (794,247) (1,222,849) (3,014,536) (1,876,325)
BOA Enterprise ............................ (1,237) (2,036) (2,509) (856)
------------- ------------ ------------ ------------
Net investment activity ..................... 19,504,030 13,184,539 (3,794,387) 2,571,069
------------- ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 41,932,700 37,034,630 123,571,963 90,318,858
Cost of mutual fund shares sold ............... (43,890,687) (36,607,143) (71,627,782) (62,592,628)
------------- ------------ ------------ ------------
Realized gain (loss) on investments ......... (1,957,987) 427,487 51,944,181 27,726,230
Change in unrealized gain (loss) on investments (14,438,210) (22,803,852) (96,293,920) 19,056,359
------------- ------------ ------------ ------------
Net gain (loss) on investments .............. (16,396,197) (22,376,365) (44,349,739) 46,782,589
------------- ------------ ------------ ------------
Reinvested capital gains ...................... -- 1,480,371 129,198,733 17,453,216
------------- ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,107,833 (7,711,455) 81,054,607 66,806,874
------------- ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 6,332,579 13,590,018 20,481,302 15,396,326
Transfers between funds ....................... (21,302,925) (9,180,722) 66,736,600 (21,136,977)
Redemptions ................................... (23,413,543) (18,633,460) (75,609,968) (25,301,098)
Annuity benefits .............................. (31,554) (46,798) (65,501) (22,916)
Annual contract maintenance charge (note 2) ... (41,843) (51,953) (139,298) (103,880)
Contingent deferred sales charges (note 2) .... (294,039) (242,562) (867,011) (352,947)
Adjustments to maintain reserves .............. 2,990 (865) (8,685) 37,050
------------- ------------ ------------ ------------
Net equity transactions ................... (38,748,335) (14,566,342) 10,527,439 (31,484,442)
------------- ------------ ------------ ------------
Net change in contract owners' equity ........... (35,640,502) (22,277,797) 91,582,046 35,322,432
Contract owners' equity beginning of period ..... 288,448,288 338,486,831 813,704,548 542,142,739
------------- ------------ ------------ ------------
Contract owners' equity end of period ........... $ 252,807,786 316,209,034 905,286,594 577,465,171
============= ============ ============ ============
OppCapAp OppGroInc
---------------------------- ------------------
2000 1999 2000 1999
------------ ------------ ---------- ----
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 353,922 374,223 -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (1,031,529) (397,379) (2,795) --
BOA Vision ................................ (985,184) (325,811) (1,612) --
BOA Enterprise ............................ (3,197) (833) (12) --
------------ ------------ ---------- ----
Net investment activity ..................... (1,665,988) (349,800) (4,419) --
------------ ------------ ---------- ----
Proceeds from mutual fund shares sold ......... 41,391,571 12,835,213 1,892,134 --
Cost of mutual fund shares sold ............... (30,981,653) (11,436,143) (1,934,947) --
------------ ------------ ---------- ----
Realized gain (loss) on investments ......... 10,409,918 1,399,070 (42,813) --
Change in unrealized gain (loss) on investments (3,978,880) 9,949,243 (13,106) --
------------ ------------ ---------- ----
Net gain (loss) on investments .............. 6,431,038 11,348,313 (55,919) --
------------ ------------ ---------- ----
Reinvested capital gains ...................... 18,886,990 4,110,735 -- --
------------ ------------ ---------- ----
Net increase (decrease) in contract owners'
equity resulting from operations ........ 23,652,040 15,109,248 (60,338) --
------------ ------------ ---------- ----
Equity transactions:
Purchase payments received from
contract owners ............................. 16,503,307 8,807,987 57,280 --
Transfers between funds ....................... 134,864,637 67,029,236 4,088,926 --
Redemptions ................................... (35,637,301) (7,892,931) (258,678) --
Annuity benefits .............................. (7,764) (4,506) -- --
Annual contract maintenance charge (note 2) ... (54,823) (24,809) (89) --
Contingent deferred sales charges (note 2) .... (531,286) (83,804) (2,175) --
Adjustments to maintain reserves .............. 37,967 (1,608) (15,994) --
------------ ------------ ---------- ----
Net equity transactions ................... 115,174,737 67,829,565 3,869,270 --
------------ ------------ ---------- ----
Net change in contract owners' equity ........... 138,826,777 82,938,813 3,808,932 --
Contract owners' equity beginning of period ..... 208,753,472 63,555,624 -- --
------------ ------------ ---------- ----
Contract owners' equity end of period ........... 347,580,249 146,494,437 3,808,932 --
============ ============ ========== ====
</TABLE>
(Continued)
17
<PAGE> 18
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
OppMult StOpp2
----------------------------- ----------------------------
2000 1999 2000 1999
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 13,317,855 10,981,914 -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (973,617) (1,120,044) (2,293,880) (3,406,897)
BOA Vision ................................ (1,003,006) (1,038,263) (3,905,225) (1,930,702)
BOA Enterprise ............................ (1,433) (1,526) (3,748) (2,697)
------------- ------------ ------------ ------------
Net investment activity ..................... 11,339,799 8,822,081 (6,202,853) (5,340,296)
------------- ------------ ------------ ------------
Proceeds from mutual fund shares sold ......... 35,066,329 42,151,571 95,472,211 135,864,498
Cost of mutual fund shares sold ............... (28,116,559) (34,463,695) (64,177,753) (105,908,928)
------------- ------------ ------------ ------------
Realized gain (loss) on investments ......... 6,949,770 7,687,876 31,294,458 29,955,570
Change in unrealized gain (loss) on investments (20,874,814) (8,574,969) 5,529,403 28,042,158
------------- ------------ ------------ ------------
Net gain (loss) on investments .............. (13,925,044) (887,093) 36,823,861 57,997,728
------------- ------------ ------------ ------------
Reinvested capital gains ...................... 19,342,890 15,885,380 -- 85,940,550
------------- ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 16,757,645 23,820,368 30,621,008 138,597,982
------------- ------------ ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 6,297,934 8,608,673 19,193,400 19,130,921
Transfers between funds ....................... (6,266,142) (29,388,163) 7,296,178 (53,470,047)
Redemptions ................................... (23,823,856) (17,905,934) (77,270,619) (42,924,449)
Annuity benefits .............................. (38,251) (27,135) (52,778) (31,553)
Annual contract maintenance charge (note 2) ... (60,615) (69,697) (178,490) (182,804)
Contingent deferred sales charges (note 2) .... (274,028) (202,428) (829,907) (493,291)
Adjustments to maintain reserves .............. 6,595 2,718 54,855 53,446
------------- ------------ ------------ ------------
Net equity transactions ................... (24,158,363) (38,981,966) (51,787,361) (77,917,777)
------------- ------------ ------------ ------------
Net change in contract owners' equity ........... (7,400,718) (15,161,598) (21,166,353) 60,680,205
Contract owners' equity beginning of period ..... 299,629,072 332,525,906 920,864,039 786,368,057
------------- ------------ ------------ ------------
Contract owners' equity end of period ........... $ 292,228,354 317,364,308 899,697,686 847,048,262
============= ============ ============ ============
StDisc2 StIntStk2
---------------------------- ---------------------------
2000 1999 2000 1999
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... -- -- -- 138,546
Mortality, expense and administration
charges (note 2):
BOA ....................................... (370,179) (611,285) (342,809) (103,970)
BOA Vision ................................ (553,084) (388,469) (348,108) (138,460)
BOA Enterprise ............................ (246) (182) (640) (151)
------------ ------------ ------------ -----------
Net investment activity ..................... (923,509) (999,936) (691,557) (104,035)
------------ ------------ ------------ -----------
Proceeds from mutual fund shares sold ......... 31,610,730 50,743,895 377,153,913 47,745,347
Cost of mutual fund shares sold ............... (31,512,668) (48,639,945) (361,401,882) (48,520,139)
------------ ------------ ------------ -----------
Realized gain (loss) on investments ......... 98,062 2,103,950 15,752,031 (774,792)
Change in unrealized gain (loss) on investments 15,877,707 (32,691,129) (22,364,047) 4,759,409
------------ ------------ ------------ -----------
Net gain (loss) on investments .............. 15,975,769 (30,587,179) (6,612,016) 3,984,617
------------ ------------ ------------ -----------
Reinvested capital gains ...................... -- 20,481,549 -- --
------------ ------------ ------------ -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 15,052,260 (11,105,566) (7,303,573) 3,880,582
------------ ------------ ------------ -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 2,234,061 4,475,650 2,442,594 1,256,708
Transfers between funds ....................... (3,677,518) (23,567,558) 3,842,683 (1,603,998)
Redemptions ................................... (10,872,795) (8,400,824) (9,462,648) (2,076,278)
Annuity benefits .............................. (6,924) (5,976) (4,913) (2,151)
Annual contract maintenance charge (note 2) ... (34,067) (41,321) (15,894) (7,526)
Contingent deferred sales charges (note 2) .... (117,303) (124,100) (114,985) (32,809)
Adjustments to maintain reserves .............. 3,976 147 6,074 451
------------ ------------ ------------ -----------
Net equity transactions ................... (12,470,570) (27,663,982) (3,307,089) (2,465,603)
------------ ------------ ------------ -----------
Net change in contract owners' equity ........... 2,581,690 (38,769,548) (10,610,662) 1,414,979
Contract owners' equity beginning of period ..... 134,982,097 174,894,389 100,212,169 37,277,231
------------ ------------ ------------ -----------
Contract owners' equity end of period ........... 137,563,787 136,124,841 89,601,507 38,692,210
============ ============ ============ ===========
</TABLE>
18
<PAGE> 19
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
VEWrldBd VEWrldEMkt
--------------------------- ----------------------------
2000 1999 2000 1999
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ 3,243,259 3,808,176 -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (197,778) (340,763) (407,633) (197,909)
BOA Vision ................................ (223,122) (250,624) (520,353) (173,485)
BOA Enterprise ............................ (8) (116) (1,089) (562)
------------ ----------- ------------ ------------
Net investment activity ..................... 2,822,351 3,216,673 (929,075) (371,956)
------------ ----------- ------------ ------------
Proceeds from mutual fund shares sold ......... 40,201,236 39,631,979 208,047,599 74,941,359
Cost of mutual fund shares sold ............... (46,310,621) (38,412,771) (181,022,584) (60,225,112)
------------ ----------- ------------ ------------
Realized gain (loss) on investments ......... (6,109,385) 1,219,208 27,025,015 14,716,247
Change in unrealized gain (loss) on investments 2,375,606 (13,351,943) (44,112,587) 8,049,873
------------ ----------- ------------ ------------
Net gain (loss) on investments .............. (3,733,779) (12,132,735) (17,087,572) 22,766,120
------------ ----------- ------------ ------------
Reinvested capital gains ...................... -- 1,701,526 -- --
------------ ----------- ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (911,428) (7,214,536) (18,016,647) 22,394,164
------------ ----------- ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 1,030,739 2,275,770 4,017,492 2,113,307
Transfers between funds ....................... 684,981 (8,903,821) (27,019,784) 52,252,887
Redemptions ................................... (5,298,599) (6,883,134) (13,452,872) (4,739,094)
Annuity benefits .............................. (9,337) (11,642) (7,469) (734)
Annual contract maintenance charge (note 2) ... (12,010) (18,526) (24,939) (11,977)
Contingent deferred sales charges (note 2) .... (53,155) (79,050) (157,934) (46,085)
Adjustments to maintain reserves .............. (5,563) (1,874) 3,859 45,902
------------ ----------- ------------ ------------
Net equity transactions ................... (3,662,944) (13,622,277) (36,641,647) 49,614,206
------------ ----------- ------------ ------------
Net change in contract owners' equity ........... (4,574,372) (20,836,813) (54,658,294) 72,008,370
Contract owners' equity beginning of period ..... 66,888,573 99,446,008 152,225,564 35,036,893
------------ ----------- ------------ ------------
Contract owners' equity end of period ........... $ 62,314,201 78,609,195 97,567,270 107,045,263
============ =========== ============ ============
VEWrldHAs MSRESec
-------------------------- ----------------------------
2000 1999 2000 1999
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... 725,801 987,982 4,389,043 8,729,269
Mortality, expense and administration
charges (note 2):
BOA ....................................... (147,296) (299,495) (375,643) (429,478)
BOA Vision ................................ (244,318) (169,755) (311,070) (509,583)
BOA Enterprise ............................ (436) (384) (846) (957)
----------- ----------- ------------ ------------
Net investment activity ..................... 333,751 518,348 3,701,484 7,789,251
----------- ----------- ------------ ------------
Proceeds from mutual fund shares sold ......... 48,279,793 76,026,743 35,084,217 55,028,999
Cost of mutual fund shares sold ............... (47,702,530) (81,003,083) (43,978,040) (62,729,612)
----------- ----------- ------------ ------------
Realized gain (loss) on investments ......... 577,263 (4,976,340) (8,893,823) (7,700,613)
Change in unrealized gain (loss) on investments 61,623 15,354,058 17,801,367 9,189,183
----------- ----------- ------------ ------------
Net gain (loss) on investments .............. 638,886 10,377,718 8,907,544 1,488,570
----------- ----------- ------------ ------------
Reinvested capital gains ...................... -- -- -- --
----------- ----------- ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 972,637 10,896,066 12,609,028 9,277,821
----------- ----------- ------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 1,191,556 1,707,742 2,072,011 3,640,188
Transfers between funds ....................... (1,583,257) 4,882,677 5,204,825 (29,139,471)
Redemptions ................................... (5,425,472) (5,572,635) (7,275,087) (8,534,716)
Annuity benefits .............................. (2,810) (1,521) (3,190) (2,929)
Annual contract maintenance charge (note 2) ... (16,148) (20,979) (18,079) (26,618)
Contingent deferred sales charges (note 2) .... (60,456) (71,579) (94,825) (123,252)
Adjustments to maintain reserves .............. (10,585) 3,754 (4,454) (3,023)
----------- ----------- ------------ ------------
Net equity transactions ................... (5,907,172) 927,459 (118,799) (34,189,821)
----------- ----------- ------------ ------------
Net change in contract owners' equity ........... (4,934,535) 11,823,525 12,490,229 (24,912,000)
Contract owners' equity beginning of period ..... 63,199,514 63,818,047 100,969,182 159,566,073
----------- ----------- ------------ ------------
Contract owners' equity end of period ........... 58,264,979 75,641,572 113,459,411 134,654,073
=========== =========== ============ ============
</TABLE>
(Continued)
19
<PAGE> 20
NATIONWIDE VARIABLE ACCOUNT-II
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS,CONTINUED
SIX MONTH PERIODS ENDED JUNE 30,2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
WPIntEq WPGPVenCp
----------------------------- --------------------------
2000 1999 2000 1999
------------- ------------ ----------- -----------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends .......................... $ -- -- -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (1,013,491) (589,525) (193,310) (70,868)
BOA Vision ................................ (745,197) (815,651) (215,197) (79,826)
BOA Enterprise ............................ (555) (299) (317) (157)
------------- ------------ ----------- -----------
Net investment activity ..................... (1,759,243) (1,405,475) (408,824) (150,851)
------------- ------------ ----------- -----------
Proceeds from mutual fund shares sold ......... 96,400,138 79,903,842 63,643,266 20,740,495
Cost of mutual fund shares sold ............... (65,715,537) (87,305,761) (48,554,763) (20,107,157)
------------- ------------ ----------- -----------
Realized gain (loss) on investments ......... 30,684,601 (7,401,919) 15,088,503 633,338
Change in unrealized gain (loss) on investments (53,156,148) 20,941,836 (13,858,668) 1,630,224
------------- ------------ ----------- -----------
Net gain (loss) on investments .............. (22,471,547) 13,539,917 1,229,835 2,263,562
------------- ------------ ----------- -----------
Reinvested capital gains ...................... -- -- -- --
------------- ------------ ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (24,230,790) 12,134,442 821,011 2,112,711
------------- ------------ ----------- -----------
Equity transactions:
Purchase payments received from
contract owners ............................. 4,769,884 6,176,378 1,305,079 624,500
Transfers between funds ....................... (15,198,914) (29,827,089) (1,123,809) 2,875,879
Redemptions ................................... (15,798,479) (9,959,687) (9,260,010) (980,425)
Annuity benefits .............................. (28,163) (10,876) -- --
Annual contract maintenance charge (note 2) ... (37,254) (36,678) (9,387) (3,769)
Contingent deferred sales charges (note 2) .... (232,945) (159,499) (117,677) (12,254)
Adjustments to maintain reserves .............. (6,388) 255 457 50
------------- ------------ ----------- -----------
Net equity transactions ................... (26,532,259) (33,817,196) (9,205,347) 2,503,981
------------- ------------ ----------- -----------
Net change in contract owners' equity ........... (50,763,049) (21,682,754) (8,384,336) 4,616,692
Contract owners' equity beginning of period ..... 285,966,630 227,695,750 58,348,689 22,185,686
------------- ------------ ----------- -----------
Contract owners' equity end of period ........... $ 235,203,581 206,012,996 49,964,353 26,802,378
============= ============ =========== ===========
WPSmCoGr
----------------------------
2000 1999
------------ ------------
<S> <C> <C>
Investment activity:
Reinvested dividends .......................... -- --
Mortality, expense and administration
charges (note 2):
BOA ....................................... (1,873,780) (903,059)
BOA Vision ................................ (1,879,914) (972,471)
BOA Enterprise ............................ (4,253) (1,906)
------------ ------------
Net investment activity ..................... (3,757,947) (1,877,436)
------------ ------------
Proceeds from mutual fund shares sold ......... 210,178,445 96,181,619
Cost of mutual fund shares sold ............... (119,787,654) (103,399,006)
------------ ------------
Realized gain (loss) on investments ......... 90,390,791 (7,217,387)
Change in unrealized gain (loss) on investments (90,157,263) 22,994,385
------------ ------------
Net gain (loss) on investments .............. 233,528 15,776,998
------------ ------------
Reinvested capital gains ...................... -- --
------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (3,524,419) 13,899,562
------------ ------------
Equity transactions:
Purchase payments received from
contract owners ............................. 12,558,431 9,383,903
Transfers between funds ....................... 79,173,785 (52,247,794)
Redemptions ................................... (44,882,510) (13,826,135)
Annuity benefits .............................. (13,988) (4,927)
Annual contract maintenance charge (note 2) ... (89,978) (59,488)
Contingent deferred sales charges (note 2) .... (571,204) (222,196)
Adjustments to maintain reserves .............. (760) 220
------------ ------------
Net equity transactions ................... 46,173,776 (56,976,417)
------------ ------------
Net change in contract owners' equity ........... 42,649,357 (43,076,855)
Contract owners' equity beginning of period ..... 480,178,953 320,942,393
------------ ------------
Contract owners' equity end of period ........... 522,828,310 277,865,538
============ ============
</TABLE>
See accompanying notes to financial statements.
20
<PAGE> 21
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide Variable Account-II (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on October 7, 1981. The Account has
been registered as a unit investment trust under the Investment Company
Act of 1940.
The Company offers tax qualified and non-tax qualified Individual
Deferred Variable Annuity Contracts, and Individual Modified Single
Premium Deferred Variable Annuity Contracts through the Account. The
primary distribution for the contracts is through the brokerage
community; however, other distributors are utilized.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees are offered for purchase.
See note 2 for a discussion of contract expenses.
With certain exceptions, contract owners in either the accumulation or
the payout phase may invest in the following:
Portfolios of the American Century Variable Portfolios, Inc.
(American Century VP);
American Century VP - American Century VP Balanced (ACVPBal)
American Century VP - American Century VP Capital
Appreciation (ACVPCapAp)
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International
(ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
Funds of the American Variable Insurance Series (American VI
Series) (available only for contracts issued on or after May 1,
1987 and before September 1, 1989);
American VI Series - Growth Fund (AVISGro)
American VI Series - High-Yield Bond Fund (AVISHiYld)
American VI Series - U.S. Government/AAA-Rated Securities
Fund (AVISGvt)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Investment Portfolios (Dreyfus IP);
Dreyfus IP - European Equity Portfolio (DryEuroEq)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Appreciation Portfolio (DryAp)
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
(Continued)
21
<PAGE> 22
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio
(FidVIPGrOp)
Portfolios of the Janus Aspen Series;
Janus Aspen Series - Capital Appreciation Portfolio - Service
Shares (JanCapAp)
Janus Aspen Series - Global Technology Portfolio - Service
Shares (JanGlobTech)
Janus Aspen Series - International Growth Portfolio - Service
Shares (JanIntGro)
Portfolio of the Morgan Stanley - Universal Institutional Funds,
Inc. (Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger Berman Advisers Management Trust
(Neuberger Berman AMT);
Neuberger Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger Berman AMT - Limited Maturity Bond Portfolio
(NBAMTLMat)
Neuberger Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds;
Oppenheimer Aggressive Growth Fund/VA (OppAggGr)
Oppenheimer Bond Fund/VA (OppBdFd)
Oppenheimer Global Securities Fund/VA (OppGlSec)
Oppenheimer Capital Appreciation Fund/VA (OppCapAp)
Oppenheimer Main Street Growth & Income Fund/VA (OppGroInc)
Oppenheimer Multiple Strategies Fund/VA (OppMult)
Strong Opportunity Fund II, Inc. (StOpp2)
Funds of the Strong Variable Insurance Funds, Inc. (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen Life Investment Trust (Van Kampen
LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities
Portfolio (MSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - Global Post Venture Capital Portfolio
(WPGPVenCap)
Warburg Pincus Trust - International Equity Portfolio
(WPIntEq)
Warburg Pincus Trust - Small Company Growth Portfolio
(WPSmCoGr)
At June 30, 2000, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see note 2).
22
<PAGE> 23
The accompanying financial statements include only contract owners'
purchase payments pertaining to the variable portions of their
contracts and exclude any purchase payments for fixed dollar benefits,
the latter being included in the accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 2000. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge. For contracts issued prior to December 15, 1988, the contingent
deferred sales charge will be equal to 5% of the lesser of the total of all
purchase payments made within 96 months prior to the date of the request
for surrender or the amount surrendered. For contracts issued on or after
December 15, 1988, the Company will deduct a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
(Continued)
23
<PAGE> 24
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
The following contract charges are deducted by the Company: (a) for The
BEST OF AMERICA(R) contracts, an annual contract maintenance charge of up
to $30, dependent on contract type and issue date, which is satisfied by
surrendering units; and (b) for The BEST OF AMERICA(R) contracts issued
prior to December 15, 1988, a charge for mortality and expense risk
assessed through the daily unit value calculation equal to an annual rate
of 0.80% and 0.50%, respectively; for The BEST OF AMERICA(R) contracts
issued on or after December 15, 1988, a mortality risk charge, an expense
risk charge and an administration charge assessed through the daily unit
value calculation equal to an annual rate of 0.80%, 0.45% and 0.05%,
respectively; for The BEST OF AMERICA(R) America's Vision Annuity(SM)
contracts, a mortality risk charge, an expense risk charge and an
administration charge assessed through the daily unit value calculation
equal to an annual rate of 0.80%, 0.45% and 0.15%, respectively; and for
The BEST OF AMERICA(R) Nationwide Insurance Enterprise Annuity contracts, a
mortality risk charge assessed through the daily unit value calculation
equal to an annual rate of 0.80%.
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
24
<PAGE> 25
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 2000, for
each series, in both the accumulation and payout phases.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Contracts in accumulation phase:
The BEST OF AMERICA(R) contracts:
American Century VP -
American Century VP Balanced:
Tax qualified ............................. 2,746,183 $ 20.405704 $ 56,037,797 1%
Non-tax qualified ......................... 1,991,482 20.405704 40,637,592 1%
American Century VP -
American Century VP Capital Appreciation:
Tax qualified ............................. 5,141,180 41.351376 212,594,867 17%
Non-tax qualified ......................... 3,025,665 41.351376 125,115,411 17%
American Century VP -
American Century VP Income & Growth:
Tax qualified ............................. 2,065,800 12.080906 24,956,736 (4)%
Non-tax qualified ......................... 1,718,123 12.080906 20,756,482 (4)%
American Century VP -
American Century VP International:
Tax qualified ............................. 5,361,602 24.374034 130,683,869 (7)%
Non-tax qualified ......................... 3,993,000 24.374034 97,325,518 (7)%
American Century VP -
American Century VP Value:
Tax qualified ............................. 1,203,241 12.187369 14,664,342 (5)%
Non-tax qualified ......................... 801,154 12.187369 9,763,959 (5)%
American VI Series - Growth Fund:
Tax qualified ............................. 310,854 75.152459 23,361,442 15%
Non-tax qualified ......................... 287,497 75.152459 21,606,107 15%
American VI Series -
High-Yield Bond Fund:
Tax qualified ............................. 52,262 26.426479 1,381,101 (1)%
Non-tax qualified ......................... 20,258 26.426479 535,348 (1)%
American VI Series - U.S. Government/
AAA-Rated Securities Fund:
Tax qualified ............................. 100,714 21.287214 2,143,920 3%
Non-tax qualified ......................... 47,631 21.287214 1,013,931 3%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified ............................. 4,450,713 36.077453 160,570,389 2%
Non-tax qualified ......................... 2,043,797 36.077453 73,734,990 2%
Dreyfus IP - European Equity Portfolio:
Tax qualified ............................. 19,098 9.757360 186,346 (2)%
Non-tax qualified ......................... 8,309 9.757360 81,074 (2)%
Dreyfus Stock Index Fund:
Tax qualified ............................. 16,929,692 32.170212 544,631,781 (1)%
Non-tax qualified ......................... 10,247,039 32.170212 329,649,417 (1)%
Dreyfus VIF - Appreciation Portfolio:
Tax qualified ............................. 3,281,188 14.716341 48,287,081 2%
Non-tax qualified ......................... 2,499,006 14.716341 36,776,224 2%
</TABLE>
(Continued)
25
<PAGE> 26
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Dreyfus VIF -
Growth and Income Portfolio:
Tax qualified ............................. 1,837,918 14.361089 26,394,504 (2)%
Non-tax qualified ......................... 1,061,037 14.361089 15,237,647 (2)%
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ............................. 16,459,014 39.647782 652,563,399 (3)%
Non-tax qualified ......................... 11,114,765 39.647782 440,675,780 (3)%
Fidelity VIP - Growth Portfolio:
Tax qualified ............................. 17,217,325 91.508230 1,575,526,936 4%
Non-tax qualified ......................... 10,201,493 91.508230 933,520,568 4%
Fidelity VIP - High Income Portfolio:
Tax qualified ............................. 4,309,397 27.173990 117,103,511 (5)%
Non-tax qualified ......................... 4,454,965 27.173990 121,059,174 (5)%
Fidelity VIP - Overseas Portfolio:
Tax qualified ............................. 9,264,806 26.963663 249,813,107 (6)%
Non-tax qualified ......................... 6,937,537 26.963663 187,061,410 (6)%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified ............................. 14,134,230 29.878236 422,305,860 (1)%
Non-tax qualified ......................... 7,631,191 29.878236 228,006,526 (1)%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified ............................. 16,803,686 25.054328 421,005,061 (2)%
Non-tax qualified ......................... 10,345,053 25.054328 259,188,351 (2)%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified ............................. 3,021,306 13.246582 40,021,978 (4)%
Non-tax qualified ......................... 1,758,760 13.246582 23,297,559 (4)%
Janus Aspen Series -
Capital Appreciation Portfolio:
Tax qualified ............................. 987,940 9.301806 9,189,626 (7)%
Non-tax qualified ......................... 458,508 9.301806 4,264,952 (7)%
Janus Aspen Series -
Global Technology Portfolio:
Tax qualified ............................. 922,402 10.081279 9,298,992 1%
Non-tax qualified ......................... 704,856 10.081279 7,105,850 1%
Janus Aspen Series -
International Growth Portfolio:
Tax qualified ............................. 834,758 9.724049 8,117,228 (3)%
Non-tax qualified ......................... 364,942 9.724049 3,548,714 (3)%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified ............................. 271,471 9.371074 2,543,975 6%
Non-tax qualified ......................... 239,249 9.371074 2,242,020 6%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified ............................. 4,494,923 31.543238 141,784,426 0%
Non-tax qualified ......................... 2,839,235 31.543238 89,558,665 0%
Nationwide SAT -
Government Bond Fund:
Tax qualified ............................. 2,803,674 35.116438 98,455,044 3%
Non-tax qualified ......................... 2,164,286 35.023680 75,801,260 3%
Nationwide SAT - Mid Cap Index Fund:
Tax qualified ............................. 48,614 9.857813 479,228 (1)%
Non-tax qualified ......................... 47,244 9.857813 465,723 (1)%
</TABLE>
26
<PAGE> 27
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Nationwide SAT - Money Market Fund:
Tax qualified ............................. 10,309,854 25.256212 260,387,858 2%
Non-tax qualified ......................... 10,773,706 25.256212 272,103,003 2%
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified ............................. 31,710 10.156482 322,062 2%
Non-tax qualified ......................... 46,594 10.156482 473,231 2%
Nationwide SAT - Small Cap Growth Fund:
Tax qualified ............................. 57,350 10.165123 582,970 2%
Non-tax qualified ......................... 54,436 10.165123 553,349 2%
Nationwide SAT - Small Cap Value Fund:
Tax qualified ............................. 1,541,110 11.868461 18,290,604 10%
Non-tax qualified ......................... 1,341,668 11.868461 15,923,534 10%
Nationwide SAT - Small Company Fund:
Tax qualified ............................. 4,601,001 24.276205 111,694,843 7%
Non-tax qualified ......................... 2,744,307 24.276205 66,621,359 7%
Nationwide SAT - Strategic Growth Fund:
Tax qualified ............................. 230,168 10.096192 2,323,820 1%
Non-tax qualified ......................... 84,273 10.096192 850,836 1%
Nationwide SAT - Total Return Fund:
Tax qualified ............................. 3,488,827 101.194601 353,050,456 3%
Non-tax qualified ......................... 2,343,855 98.588771 231,077,784 3%
Neuberger Berman AMT -
Growth Portfolio:
Tax qualified ............................. 4,538,605 72.800868 330,414,384 14%
Non-tax qualified ......................... 3,036,760 72.800868 221,078,764 14%
Neuberger Berman AMT -
Guardian Portfolio:
Tax qualified ............................. 1,168,601 10.852262 12,681,964 3%
Non-tax qualified ......................... 607,735 10.852262 6,595,299 3%
Neuberger Berman AMT -
Limited Maturity Bond Portfolio:
Tax qualified ............................. 2,011,055 18.487240 37,178,856 1%
Non-tax qualified ......................... 1,724,903 18.487240 31,888,696 1%
Neuberger Berman AMT -
Partners Portfolio:
Tax qualified ............................. 4,862,719 24.076663 117,078,047 (1)%
Non-tax qualified ......................... 2,663,805 24.076663 64,135,535 (1)%
Oppenheimer
Aggressive Growth Fund/VA:
Tax qualified ............................. 1,118,847 10.661572 11,928,668 7%
Non-tax qualified ......................... 473,235 10.661572 5,045,429 7%
Oppenheimer Bond Fund/VA:
Tax qualified ............................. 3,299,819 19.423550 64,094,199 1%
Non-tax qualified ......................... 2,629,918 19.423550 51,082,344 1%
Oppenheimer
Capital Appreciation Fund/VA:
Tax qualified ............................. 5,483,574 19.398313 106,372,085 9%
Non-tax qualified ......................... 3,578,668 19.398313 69,420,122 9%
Oppenheimer Global Securities Fund/VA:
Tax qualified ............................. 9,543,704 31.060968 296,436,685 10%
Non-tax qualified ......................... 5,351,937 31.060968 166,236,344 10%
Oppenheimer
Main Street Growth & Income/VA:
Tax qualified ............................. 110,252 9.923361 1,094,070 (1)%
Non-tax qualified ......................... 44,601 9.923361 442,592 (1)%
</TABLE>
(Continued)
27
<PAGE> 28
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Oppenheimer
Multiple Strategies Fund/VA:
Tax qualified ............................. 3,563,175 25.707679 91,600,959 6%
Non-tax qualified ......................... 2,348,035 25.707679 60,362,530 6%
Strong Opportunity Fund II, Inc.:
Tax qualified ............................. 9,026,533 40.262027 363,426,515 3%
Non-tax qualified ......................... 5,393,345 40.262027 217,147,002 3%
Strong VIF - Strong Discovery Fund II:
Tax qualified ............................. 2,281,908 21.623998 49,343,974 11%
Non-tax qualified ......................... 1,630,542 21.623998 35,258,837 11%
Strong VIF -
Strong International Stock Fund II:
Tax qualified ............................. 1,762,697 14.451975 25,474,453 (12)%
Non-tax qualified ......................... 1,667,540 14.451975 24,099,246 (12)%
Van Eck WIT - Worldwide Bond Fund:
Tax qualified ............................. 1,150,922 14.816897 17,053,093 (1)%
Non-tax qualified ......................... 1,032,647 14.816897 15,300,624 (1)%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ............................. 3,421,699 9.833099 33,645,905 (13)%
Non-tax qualified ......................... 2,382,282 9.833099 23,425,215 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified ............................. 1,512,978 13.247472 20,043,134 3%
Non-tax qualified ......................... 1,313,705 13.247472 17,403,270 3%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax qualified ............................. 1,584,243 16.908684 26,787,464 14%
Non-tax qualified ......................... 1,674,210 16.908684 28,308,688 14%
Warburg Pincus Trust -
Global Post Venture Capital Portfolio:
Tax qualified ............................. 818,774 20.118199 16,472,258 4%
Non-tax qualified ......................... 576,333 20.118199 11,594,782 4%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified ............................. 3,842,668 15.938401 61,245,983 (9)%
Non-tax qualified ......................... 2,598,950 15.938401 41,423,107 (9)%
Warburg Pincus Trust -
Small Company Growth Portfolio:
Tax qualified ............................. 6,252,795 25.967528 162,369,629 2%
Non-tax qualified ......................... 4,299,720 25.967528 111,653,099 2%
The BEST OF AMERICA(R) Nationwide Insurance
Enterprise Annuity contracts:
American Century VP -
American Century VP Balanced:
Tax qualified ............................. 11,677 16.516041 192,858 1%
Non-tax qualified ......................... 6,408 16.516041 105,835 1%
American Century VP -
American Century VP Capital Appreciation:
Tax qualified ............................. 24,636 16.668721 410,651 17%
Non-tax qualified ......................... 17,507 16.668721 291,819 17%
</TABLE>
28
<PAGE> 29
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Income & Growth:
Tax qualified ............................. 2,161 12.213742 26,394 (4)%
Non-tax qualified ......................... 4,570 12.213742 55,817 (4)%
American Century VP -
American Century VP International:
Tax qualified ............................. 11,580 24.822829 287,448 (6)%
Non-tax qualified ......................... 18,167 24.822829 450,956 (6)%
American Century VP -
American Century VP Value:
Tax qualified ............................. 592 12.405982 7,344 (4)%
Non-tax qualified ......................... 7,050 12.405982 87,462 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified ............................. 24,440 26.775319 654,389 2%
Non-tax qualified ......................... 25,629 26.775319 686,225 2%
Dreyfus IP - European Equity Portfolio:
Tax qualified ............................. 1,228 9.765449 11,992 (2)%
Non-tax qualified ......................... 273 9.765449 2,666 (2)%
Dreyfus Stock Index Fund:
Tax qualified ............................. 80,003 25.555483 2,044,515 (1)%
Non-tax qualified ......................... 64,343 25.555483 1,644,316 (1)%
Dreyfus VIF - Appreciation Portfolio:
Tax qualified ............................. 9,012 14.938109 134,622 2%
Non-tax qualified ......................... 13,265 14.938109 198,154 2%
Dreyfus VIF - Growth and Income Portfolio:
Tax qualified ............................. 17,513 14.618595 256,015 (1)%
Non-tax qualified ......................... 15,625 14.618595 228,416 (1)%
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ............................. 41,720 17.503429 730,243 (3)%
Non-tax qualified ......................... 45,064 17.503429 788,775 (3)%
Fidelity VIP - Growth Portfolio:
Tax qualified ............................. 91,879 26.546272 2,439,045 5%
Non-tax qualified ......................... 85,198 26.546272 2,261,689 5%
Fidelity VIP - High Income Portfolio:
Tax qualified ............................. 18,229 12.939924 235,882 (5)%
Non-tax qualified ......................... 28,356 12.939924 366,924 (5)%
Fidelity VIP - Overseas Portfolio:
Tax qualified ............................. 3,373 19.498542 65,769 (5)%
Non-tax qualified ......................... 10,240 19.498542 199,665 (5)%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified ............................. 12,724 17.831841 226,892 (1)%
Non-tax qualified ......................... 14,114 17.831841 251,679 (1)%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified ............................. 24,164 23.630360 571,004 (2)%
Non-tax qualified ......................... 35,585 23.630360 840,886 (2)%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified ............................. 7,438 13.446289 100,013 (4)%
Non-tax qualified ......................... 9,699 13.446289 130,416 (4)%
Janus Aspen Series -
Capital Appreciation Portfolio:
Tax qualified ............................. 9,141 9.309508 85,098 (7)%
Non-tax qualified ......................... 3,558 9.309508 33,123 (7)%
</TABLE>
(Continued)
29
<PAGE> 30
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Janus Aspen Series -
Global Technology Portfolio:
Tax qualified ............................. 2,836 10.089612 28,614 1%
Non-tax qualified ......................... 1,979 10.089612 19,967 1%
Janus Aspen Series -
International Growth Portfolio:
Tax qualified ............................. 7,258 9.732106 70,636 (3)%
Non-tax qualified ......................... 1,725 9.732106 16,788 (3)%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified ............................. 50 9.512475 476 6%
Non-tax qualified ......................... 2,938 9.512475 27,948 6%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified ............................. 88,788 24.047543 2,135,133 0%
Non-tax qualified ......................... 80,206 24.047543 1,928,757 0%
Nationwide SAT -
Government Bond Fund:
Tax qualified ............................. 31,527 12.428456 391,832 4%
Non-tax qualified ......................... 10,227 12.428456 127,106 4%
Nationwide SAT - Mid Cap Index Fund:
Tax qualified ............................. 814 9.865974 8,031 (1)%
Non-tax qualified ......................... 727 9.865974 7,173 (1)%
Nationwide SAT - Money Market Fund:
Tax qualified ............................. 57,645 12.203914 703,495 2%
Non-tax qualified ......................... 93,250 12.203914 1,138,015 2%
Nationwide SAT - Multi Sector Bond Fund:
Non-tax qualified ......................... 221 10.164899 2,246 2%
Nationwide SAT - Small Cap Growth Fund:
Tax qualified ............................. 3,448 10.173536 35,078 2%
Non-tax qualified ......................... 6 10.173536 61 2%
Nationwide SAT - Small Cap Value Fund:
Tax qualified ............................. 5,276 11.999041 63,307 11%
Non-tax qualified ......................... 9,624 11.999041 115,479 11%
Nationwide SAT - Small Company Fund:
Tax qualified ............................. 29,012 24.836628 720,560 7%
Non-tax qualified ......................... 44,745 24.836628 1,111,315 7%
Nationwide SAT - Strategic Growth Fund:
Tax qualified ............................. 3,609 10.104538 36,467 1%
Non-tax qualified ......................... 412 10.104538 4,163 1%
Nationwide SAT - Total Return Fund:
Tax qualified ............................. 155,247 20.845599 3,236,217 3%
Non-tax qualified ......................... 180,246 20.845599 3,757,336 3%
Neuberger Berman AMT -
Growth Portfolio:
Tax qualified ............................. 19,751 26.881028 530,927 14%
Non-tax qualified ......................... 22,330 26.881028 600,253 14%
Neuberger Berman AMT -
Guardian Portfolio:
Tax qualified ............................. 3,741 10.971639 41,045 3%
Non-tax qualified ......................... 3,365 10.971639 36,920 3%
</TABLE>
30
<PAGE> 31
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Neuberger Berman AMT -
Limited Maturity Bond Portfolio:
Tax qualified ............................. 2,372 11.804081 27,999 2%
Non-tax qualified ......................... 3,011 11.804081 35,542 2%
Neuberger Berman AMT -
Partners Portfolio:
Tax qualified ............................. 19,909 19.293039 384,105 (1)%
Non-tax qualified ......................... 20,476 19.293039 395,044 (1)%
Oppenheimer
Aggressive Growth Fund/VA:
Tax qualified ............................. 2,841 10.670360 30,314 7%
Non-tax qualified ......................... 642 10.670360 6,850 7%
Oppenheimer Bond Fund/VA:
Tax qualified ............................. 9,571 12.180874 116,583 2%
Non-tax qualified ......................... 6,013 12.180874 73,244 2%
Oppenheimer
Capital Appreciation Fund/VA:
Tax qualified ............................. 34,982 19.690663 688,819 9%
Non-tax qualified ......................... 13,814 19.690663 272,007 9%
Oppenheimer Global Securities Fund/VA:
Tax qualified ............................. 15,623 28.089728 438,846 10%
Non-tax qualified ......................... 12,472 28.089728 350,335 10%
Oppenheimer
Main Street Growth & Income/VA:
Tax qualified ............................. 1,188 9.931570 11,799 (1)%
Non-tax qualified ......................... 29 9.931570 288 (1)%
Oppenheimer
Multiple Strategies Fund/VA:
Tax qualified ............................. 12,491 17.115018 213,784 6%
Non-tax qualified ......................... 11,348 17.115018 194,221 6%
Strong Opportunity Fund II, Inc.:
Tax qualified ............................. 20,947 24.131412 505,481 4%
Non-tax qualified ......................... 21,520 24.131412 519,308 4%
Strong VIF - Strong Discovery Fund II:
Tax qualified ............................. 1,102 14.283885 15,741 11%
Non-tax qualified ......................... 3,208 14.283885 45,823 11%
Strong VIF -
Strong International Stock Fund II:
Tax qualified ............................. 5,815 14.712216 85,552 (12)%
Non-tax qualified ......................... 2,367 14.712216 34,824 (12)%
Van Eck WIT - Worldwide Bond Fund:
Tax qualified ............................. 11 10.621632 117 (1)%
Non-tax qualified ......................... 74 10.621632 786 (1)%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ............................. 15,228 10.009535 152,425 (13)%
Non-tax qualified ......................... 9,309 10.009535 93,179 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified ............................. 4,411 10.749783 47,417 4%
Non-tax qualified ......................... 8,477 10.749783 91,126 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax qualified ............................. 3,668 17.028434 62,460 14%
Non-tax qualified ......................... 10,199 17.028434 173,673 14%
</TABLE>
(Continued)
31
<PAGE> 32
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
Global Post Venture Capital Portfolio:
Tax qualified ............................. 1,147 20.478950 23,489 5%
Non-tax qualified ......................... 3,077 20.478950 63,014 5%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified ............................. 5,119 15.849478 81,133 (9)%
Non-tax qualified ......................... 3,356 15.849478 53,191 (9)%
Warburg Pincus Trust -
Small Company Growth Portfolio:
Tax qualified ............................. 10,888 23.839836 259,568 2%
Non-tax qualified ......................... 34,494 23.839836 822,331 2%
The BEST OF AMERICA(R) America's Vision
Annuity(SM) contracts:
American Century VP -
American Century VP Balanced:
Tax qualified ............................. 2,021,702 18.741812 37,890,359 1%
Non-tax qualified ......................... 2,885,544 18.741812 54,080,323 1%
American Century VP -
American Century VP Capital Appreciation:
Tax qualified ............................. 2,923,985 21.000935 61,406,419 17%
Non-tax qualified ......................... 4,138,156 21.000935 86,905,145 17%
American Century VP -
American Century VP Income & Growth:
Tax qualified ............................. 1,834,513 12.054402 22,113,957 (4)%
Non-tax qualified ......................... 1,953,142 12.054402 23,543,959 (4)%
American Century VP -
American Century VP International:
Tax qualified ............................. 3,775,254 24.228458 91,468,583 (7)%
Non-tax qualified ......................... 5,592,465 24.228458 135,496,803 (7)%
American Century VP -
American Century VP Value:
Tax qualified ............................. 1,096,906 12.143992 13,320,818 (5)%
Non-tax qualified ......................... 1,385,890 12.143992 16,830,237 (5)%
The Dreyfus Socially Responsible
Growth Fund, Inc.:
Tax qualified ............................. 2,432,794 33.953909 82,602,866 2%
Non-tax qualified ......................... 3,169,631 33.953909 107,621,363 2%
Dreyfus IP - European Equity Portfolio:
Tax qualified ............................. 15,300 9.755741 149,263 (2)%
Non-tax qualified ......................... 41,378 9.755741 403,673 (2)%
Dreyfus Stock Index Fund:
Tax qualified ............................. 13,712,604 31.859291 436,873,841 (1)%
Non-tax qualified ......................... 19,029,686 31.859291 606,272,304 (1)%
Dreyfus VIF -
Capital Appreciation Portfolio:
Tax qualified ............................. 2,107,000 14.672237 30,914,403 2%
Non-tax qualified ......................... 3,461,886 14.672237 50,793,612 2%
Dreyfus VIF - Growth and Income Portfolio:
Tax qualified ............................. 1,665,684 14.309962 23,835,875 (2)%
Non-tax qualified ......................... 2,279,946 14.309962 32,625,941 (2)%
</TABLE>
32
<PAGE> 33
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Fidelity VIP - Equity-Income Portfolio:
Tax qualified ............................. 15,850,071 22.752605 360,630,405 (3)%
Non-tax qualified ......................... 22,440,988 22.752605 510,590,936 (3)%
Fidelity VIP - Growth Portfolio:
Tax qualified ............................. 15,439,956 36.050957 556,625,190 4%
Non-tax qualified ......................... 22,375,458 36.050957 806,656,674 4%
Fidelity VIP - High Income Portfolio:
Tax qualified ............................. 6,955,188 14.515289 100,956,564 (6)%
Non-tax qualified ......................... 11,775,709 14.515289 170,927,819 (6)%
Fidelity VIP - Overseas Portfolio:
Tax qualified ............................. 3,474,154 20.619195 71,634,259 (6)%
Non-tax qualified ......................... 5,400,070 20.619195 111,345,096 (6)%
Fidelity VIP-II - Asset Manager Portfolio:
Tax qualified ............................. 6,554,937 18.183010 119,188,485 (1)%
Non-tax qualified ......................... 8,537,751 18.183010 155,242,012 (1)%
Fidelity VIP-II - Contrafund Portfolio:
Tax qualified ............................. 12,240,811 24.927906 305,137,786 (2)%
Non-tax qualified ......................... 17,193,541 24.927906 428,598,974 (2)%
Fidelity VIP-III -
Growth Opportunities Portfolio:
Tax qualified ............................. 2,460,993 13.206874 32,502,024 (4)%
Non-tax qualified ......................... 4,120,039 13.206874 54,412,836 (4)%
Janus Aspen Series -
Capital Appreciation Portfolio:
Tax qualified ............................. 948,685 9.300258 8,823,015 (7)%
Non-tax qualified ......................... 1,279,199 9.300258 11,896,881 (7)%
Janus Aspen Series -
Global Technology Portfolio:
Tax qualified ............................. 557,130 10.079608 5,615,652 1%
Non-tax qualified ......................... 713,794 10.079608 7,194,764 1%
Janus Aspen Series -
International Growth Portfolio:
Tax qualified ............................. 374,718 9.722433 3,643,171 (3)%
Non-tax qualified ......................... 521,964 9.722433 5,074,760 (3)%
Morgan Stanley -
Emerging Markets Debt Portfolio:
Tax qualified ............................. 143,643 9.342969 1,342,052 6%
Non-tax qualified ......................... 351,930 9.342969 3,288,071 6%
Nationwide SAT -
Capital Appreciation Fund:
Tax qualified ............................. 2,831,706 27.852888 78,871,190 0%
Non-tax qualified ......................... 3,768,227 27.852888 104,956,005 0%
Nationwide SAT -
Government Bond Fund:
Tax qualified ............................. 4,031,633 13.193657 53,191,983 3%
Non-tax qualified ......................... 5,545,143 13.193657 73,160,715 3%
Nationwide SAT - Mid Cap Index Fund:
Tax qualified ............................. 71,289 9.856176 702,637 (1)%
Non-tax qualified ......................... 38,938 9.856176 383,780 (1)%
Nationwide SAT - Money Market Fund:
Tax qualified ............................. 12,114,206 12.590003 152,517,890 2%
Non-tax qualified ......................... 19,415,014 12.590003 244,435,085 2%
</TABLE>
(Continued)
33
<PAGE> 34
NATIONWIDE VARIABLE ACCOUNT-II
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Nationwide SAT - Multi Sector Bond Fund:
Tax qualified ............................. 22,061 10.154798 224,025 2%
Non-tax qualified ......................... 49,157 10.154798 499,179 2%
Nationwide SAT - Small Cap Growth Fund:
Tax qualified ............................. 96,534 10.163439 981,117 2%
Non-tax qualified ......................... 52,590 10.163439 534,495 2%
Nationwide SAT - Small Cap Value Fund:
Tax qualified ............................. 1,152,123 11.842442 13,643,950 10%
Non-tax qualified ......................... 1,627,069 11.842442 19,268,470 10%
Nationwide SAT - Small Company Fund:
Tax qualified ............................. 3,481,965 24.161192 84,128,425 7%
Non-tax qualified ......................... 4,587,459 24.161192 110,838,478 7%
Nationwide SAT - Strategic Growth Fund:
Tax qualified ............................. 228,696 10.094526 2,308,578 1%
Non-tax qualified ......................... 292,754 10.094526 2,955,213 1%
Nationwide SAT - Total Return Fund:
Tax qualified ............................. 7,734,127 24.729489 191,261,009 3%
Non-tax qualified ......................... 9,641,338 24.729489 238,425,362 3%
Neuberger Berman AMT -
Growth Portfolio:
Tax qualified ............................. 3,134,600 32.229193 101,025,628 13%
Non-tax qualified ......................... 4,836,159 32.229193 155,865,502 13%
Neuberger Berman AMT -
Guardian Portfolio:
Tax qualified ............................. 812,316 10.828462 8,796,133 3%
Non-tax qualified ......................... 929,000 10.828462 10,059,641 3%
Neuberger Berman AMT -
Limited Maturity Bond Portfolio:
Tax qualified ............................. 1,453,295 12.169310 17,685,597 1%
Non-tax qualified ......................... 2,464,278 12.169310 29,988,563 1%
Neuberger Berman AMT -
Partners Portfolio:
Tax qualified ............................. 4,026,424 23.932839 96,363,757 (1)%
Non-tax qualified ......................... 6,005,329 23.932839 143,724,572 (1)%
Oppenheimer
Aggressive Growth Fund/VA:
Tax qualified ............................. 476,979 10.659808 5,084,505 7%
Non-tax qualified ......................... 303,025 10.659808 3,230,188 7%
Oppenheimer Bond Fund/VA:
Tax qualified ............................. 4,293,262 12.937700 55,544,936 1%
Non-tax qualified ......................... 6,322,981 12.937700 81,804,831 1%
Oppenheimer
Capital Appreciation Fund/VA:
Tax qualified ............................. 3,937,323 19.340192 76,148,583 9%
Non-tax qualified ......................... 4,884,080 19.340192 94,459,045 9%
Oppenheimer Global Securities Fund/VA:
Tax qualified ............................. 6,476,376 28.394800 183,895,401 10%
Non-tax qualified ......................... 9,059,290 28.394800 257,236,728 10%
Oppenheimer Main Street Growth & Income/VA:
Tax qualified ............................. 119,682 9.921720 1,187,451 (1)%
Non-tax qualified ......................... 108,120 9.921720 1,072,736 (1)%
</TABLE>
34
<PAGE> 35
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN*
--------- ----------- -------
<S> <C> <C> <C> <C>
Oppenheimer
Multiple Strategies Fund/VA:
Tax qualified ............................. 3,264,138 19.015970 62,070,750 6%
Non-tax qualified ......................... 4,075,959 19.015970 77,508,314 6%
Strong Opportunity Fund II, Inc.:
Tax qualified ............................. 4,577,722 29.468069 134,896,628 3%
Non-tax qualified ......................... 6,193,513 29.468069 182,510,868 3%
Strong VIF - Strong Discovery Fund II:
Tax qualified ............................. 1,175,422 17.834847 20,963,472 11%
Non-tax qualified ......................... 1,784,803 17.834847 31,831,688 11%
Strong VIF -
Strong International Stock Fund II:
Tax qualified ............................. 1,074,139 14.383485 15,449,862 (13)%
Non-tax qualified ......................... 1,696,254 14.383485 24,398,044 (13)%
Van Eck WIT - Worldwide Bond Fund:
Tax qualified ............................. 944,722 11.724586 11,076,474 (1)%
Non-tax qualified ......................... 1,605,386 11.724586 18,822,486 (1)%
Van Eck WIT -
Worldwide Emerging Markets Fund:
Tax qualified ............................. 1,534,828 9.798071 15,038,354 (13)%
Non-tax qualified ......................... 2,567,959 9.798071 25,161,045 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund:
Tax qualified ............................. 636,644 10.831181 6,895,606 3%
Non-tax qualified ......................... 1,268,287 10.831181 13,737,046 3%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio:
Tax qualified ............................. 2,138,426 16.823342 35,975,472 13%
Non-tax qualified ......................... 1,314,859 16.823342 22,120,323 13%
Warburg Pincus Trust -
Global Post Venture Capital Portfolio:
Tax qualified ............................. 482,400 20.046584 9,670,472 4%
Non-tax qualified ......................... 605,607 20.046584 12,140,352 4%
Warburg Pincus Trust -
International Equity Portfolio:
Tax qualified ............................. 2,901,591 15.857994 46,013,413 (9)%
Non-tax qualified ......................... 5,427,698 15.857994 86,072,402 (9)%
Warburg Pincus Trust -
Small Company Growth Portfolio:
Tax qualified ............................. 3,676,562 25.836430 94,989,237 2%
Non-tax qualified ......................... 5,905,756 25.836430 152,583,651 2%
========= =========
Reserves for annuity contracts in payout phase:
Tax qualified ............................. 4,892,704
Non-tax qualified ......................... 15,395,937
----------------
$ 22,126,556,270
================
</TABLE>
* The period return does not include contract charges satisfied by surrendering
units.
35
<PAGE> 36
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
