<PAGE> 1
[NATIONAL ASSOCIATION OF COUNTIES LOGO]
NACo
VARIABLE
ACCOUNT
[NACo LOGO]
SEMI-ANNUAL REPORT
TO
PARTICIPANTS AND RETIRED PARTICIPANTS
JUNE 30, 1998
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-2278-N(6/98)
<PAGE> 2
[NATIONWIDE INSURANCE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[ PHOTO OF NATIONWIDE PRESIDENT JOESPH J. GASPER]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to
present the 1998 semi-annual report of the NACo Variable
Account.
The bull market continued its run in the first half of 1998.
Most of the gains came in the first quarter with more modest
returns or small losses for the second half of the period.
At this writing, a market correction that began in the
second quarter continues to provide a good deal of
day-to-day volatility. Much of the capriciousness of the
market is due to uncertainty about the economic outcome in
Asia. However, we think the correction will be of limited
magnitude and duration and will provide a healthy respite
before further market advances.
We believe that existing economic and market fundamentals
provide an ongoing favorable environment for financial
assets. Interest rates remain low; inflation is nearly
nonexistent; corporate earnings, albeit slowing, remain
positive, and U.S. economic growth appears to be on a modest
but sustainable track.
Against this backdrop, we believe our variable insurance
products continue to provide the versatile investment
vehicle you need to respond to changing market conditions.
We are committed to the continual evaluation of our products
and services to ensure that we remain responsive to your
long-term financial planning and retirement-savings needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 17, 1998
3
<PAGE> 3
CONTENTS
<TABLE>
<S> <C>
HOW TO READ THE SEMI-ANNUAL REPORT ............................................. 5
Explanation on how to read and understand
the various financial reports
FUND PERFORMANCES .............................................................. 6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY ................... 8
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY ..................................................... 10
NOTES TO FINANCIAL STATEMENTS .................................................. 19
</TABLE>
4
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HOW TO READ THE SEMI-ANNUAL REPORT
This Semi-Annual Report is sent to all customers who own a Nationwide annuity
with all or some of the funds in the NACo Variable Account (the Account). The
Account is a separate account trust which offers investment options in
thirty-four mutual funds from sixteen mutual fund houses.
The Semi-Annual Report has two major financial sections.
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
This statement, beginning on page 8, lists all the funds in the Account, the
number of shares owned, the amount paid for the shares (i.e., cost) and their
market value on June 30, 1998. The funds are presented in alphabetical order.
The market value of the assets change as the underlying mutual fund shares
change in value. As contract owners make exchanges between the funds, the number
of shares in each fund increases and decreases. When money is deposited
(withdrawn) by contract owners, shares of the mutual funds are bought (sold) by
the Account. The total market value of the funds is equal to the Total
investments.
Accounts receivable, if applicable, is an asset of the Account for money market
fund shares or reinvested dividend shares added to the contract owners'
accounts, but not yet added to Total investments. Total investments plus
Accounts receivable equals Total assets.
Accounts payable, if applicable, is a liability of the Account for money market
fund shares deducted from the contract owners' accounts, but not yet deducted
from Total investments.
Total assets minus Accounts payable equals Contract owners' equity. For a
summary of Contract owners' equity by fund series turn to page 22.
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
These statements, found on page 10, show the activity in the Account for the
periods stated herein.
The Investment activity section shows the changes in unrealized gain (loss) of
the mutual funds in the Account, realized gain (loss) as shares of the funds are
bought (sold), mortality, expense and administration charges which are assessed
through the daily unit value calculations, and dividends and capital gains
earnings from the underlying mutual funds.
The Equity transactions section illustrates the receipt of purchase payments by
the Account as new contracts are sold, existing contract owners deposit
additional funds; and deductions from the Account when money is withdrawn,
contracts are canceled, annuity benefits are paid, and annual contract
maintenance charges and contingent deferred sales charges are assessed.
Net change in contract owners' equity equals Investment activity plus Equity
transactions.
The Contract owners' equity at the beginning of the period plus the Net change
in contract owners' equity equals the Contract owners' equity at the end of the
period. Contract owners' equity at the end of the calendar year will equal the
Contract owners' equity at the beginning of the next year.
As you review the following pages of the Semi-Annual Report, the Notes to
Financial Statements, beginning on page 19, will also help explain and clarify
the various statements and schedules.
5
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<TABLE>
<CAPTION>
FUND PERFORMANCES
- --------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN: NON-STANDARDIZED++
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
- --------------------------------------------------------------------------------------------------------------
6 MONTHS YEAR 3 YEARS 5 YEARS 10 YEARS
1/1/98- 1997 7/1/95- 7/1/93- 7/1/88-
FUNDS+ 6/30/98 6/30/98 6/30/98 6/30/98
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
Mass. Investors Growth Stock Fund* 23.49% 46.75% 34.08% 23.39% 18.75%
Putnam Voyager Fund 16.25% 24.79% 24.52% 20.64% 18.44%
GROWTH FUNDS
American Century: Twentieth Century Growth Fund* 22.79% 28.06% 21.78% 17.09% 15.82%
American Century: Twentieth Century Ultra Fund 23.41% 21.97% 24.51% 18.66% 20.95%
Dreyfus Third Century Fund 17.62% 28.15% 28.40% 19.14% 15.46%
Fidelity Contrafund 16.73% 21.84% 24.50% 19.23% 21.83%
Fidelity Magellan(R)Fund 17.52% 25.40% 20.93% 18.19% 17.64%
Fidelity OTC Portfolio 18.16% 8.87% 20.05% 17.59% 16.39%
MFS(R)Growth Opportunities Fund* 19.82% 22.12% 25.38% 18.75% 14.93%
Nationwide(R)Growth Fund* 18.41% 25.04% 22.68% 18.36% 14.09%
Putnam Investors Fund 22.29% 33.22% 30.38% 22.27% 17.78%
Seligman Growth Fund, Inc. 19.83% 16.99% 24.17% 17.52% 14.80%
GROWTH AND INCOME FUNDS
Evergreen Income and Growth Fund* 1.50% 24.40% 15.54% 10.72% 9.97%
Fidelity Equity-Income Fund 10.73% 28.76% 24.63% 19.03% 14.75%
Fidelity Puritan(R)Fund 10.31% 21.19% 18.56% 14.55% 13.57%
Investment Company of America(R)** 12.58% 28.58% 24.17% 18.45% 15.56%
Nationwide(R)Fund 21.44% 38.31% 33.78% 23.10% 17.48%
Neuberger & Berman Guardian Fund 12.10% 16.82% 18.02% 16.55% 15.22%
INCOME FUNDS
Bond Fund of America(SM), Inc.** 3.34% 8.20% 7.88% 6.18% 8.36%
Fidelity Capital & Income Fund* 7.62% 13.62% 12.11% 9.42% 10.88%
MAS Funds - Fixed Income Portfolio 2.89% 8.57% 8.29% 6.49% 8.69%
MFS(R)High Income Fund 5.41% 11.78% 11.64% 9.20% 9.47%
INDEX
SEI Index Funds S&P 500 Index Portfolio 17.03% 31.82% 28.71% 21.61% 17.17%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(R) 13.18% 1.73% 12.27% 12.12% 10.13%
Templeton Foreign Fund 2.13% 5.64% 9.35% 10.72% 11.30%
GOVERNMENT BOND FUND
Federated U.S. Government Securities Fund 2.52% 6.12% 5.16% 4.37% 6.46%
MONEY MARKET FUND
Nationwide(R)Money Market Fund 2.05% 4.12% 4.13% 3.65% 4.38%
U.S. TREASURY MONEY MARKET FUND
AIM STIT - Treasury Portfolio 2.27% 4.54% 4.57% 4.08% 4.83%
S&P 500 *** 17.71% 33.36% 30.24% 23.08% 18.56%
- --------------------------------------------------------------------------------------------------------------
<FN>
* These funds are not open to new participation.
** These funds are closed to entities adopting the NACo Public Employees Deferred Compensation Program on
or after July 1, 1994.
*** The S & P 500 is a stock market index which assumes investment in the 500 largest available stocks. This
unmanaged index is normally used as a comparison or benchmark against equity mutual funds.
+ Funds are neither insured nor guaranteed by the U.S. Government. For the Money Market Fund, there can be
no assurance that this fund will be able to maintain a stable net asset value of $1 per share.
++ SEC and NASD regulations require that any reporting of product performance be accompanied by
standardized data and the disclosures are on the following page. Please review this information and a
product prospectus before investing.
NOTE: The above illustration represents past performance based on a $1,000 hypothetical Investment and
reflects the deduction of an actuarial risk fee which is equivalent to 0.95% on an annualized basis. The
results shown represent past performance and should not be considered a representation of performance or
investor experience of the funds in the future. Investment returns and principal are not guaranteed under
these variable options. The unit values at the time of redemption may be worth more or less than their
original cost.
For complete information about the options available to you through your deferred compensation program,
including charges and expenses, consult your prospectus(es) which are available from your local deferred
compensation representative. Please read the prospectus(es) carefully before investing or sending money.
Sources: Nationwide Advisory Services Computer Directions Advisors, Inc.
</FN>
</TABLE>
6
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<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURN: STANDARDIZED
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
- --------------------------------------------------------------------------------------------------------------
6 MONTHS YEAR 3 YEARS 5 YEARS 10 YEARS
1/1/98- 1997 7/1/95- 7/1/93- 7/1/88-
FUNDS+ 6/30/98 6/30/98 6/30/98 6/30/98
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
Mass. Investors Growth Stock Fund* 21.49% 44.75% 33.71% 23.22% 18.71%
Putnam Voyager Fund 14.25% 22.79% 24.09% 20.45% 18.39%
GROWTH FUNDS
American Century: Twentieth Century Growth Fund* 20.79% 26.06% 21.33% 16.87% 15.77%
American Century: Twentieth Century Ultra Fund 21.41% 19.97% 24.08% 18.46% 20.91%
Dreyfus Third Century Fund 15.62% 26.15% 27.99% 18.95% 15.40%
Fidelity Contrafund 14.73% 19.84% 24.07% 19.03% 21.80%
Fidelity Magellan(R)Fund 15.52% 23.40% 20.47% 17.99% 17.59%
Fidelity OTC Portfolio 16.16% 6.87% 19.59% 17.38% 16.34%
MFS(R)Growth Opportunities Fund* 17.82% 20.12% 24.95% 18.55% 14.88%
Nationwide(R)Growth Fund* 16.41% 23.04% 22.24% 18.15% 14.03%
Putnam Investors Fund 20.29% 31.22% 29.98% 22.09% 17.73%
Seligman Growth Fund, Inc. 17.83% 14.99% 23.74% 17.31% 14.74%
GROWTH AND INCOME FUNDS
Evergreen Income and Growth Fund* -0.50% 22.40% 15.04% 10.45% 9.89%
Fidelity Equity-Income Fund 8.73% 26.76% 24.20% 18.83% 14.69%
Fidelity Puritan(R)Fund 8.31% 19.19% 18.09% 14.32% 13.51%
Investment Company of America(R)** 10.58% 26.58% 23.73% 18.25% 15.50%
Nationwide(R)Fund 19.44% 36.31% 33.40% 22.92% 17.43%
Neuberger & Berman Fund Guardian Fund 10.10% 14.82% 17.54% 16.33% 15.17%
INCOME FUNDS
Bond Fund of America(SM), Inc.** 1.34% 6.20% 7.30% 5.87% 8.26%
Fidelity Capital & Income Fund* 5.62% 11.62% 11.58% 9.14% 10.80%
MAS Funds - Fixed Income Portfolio 0.89% 6.57% 7.72% 6.17% 8.59%
MFS(R)High Income Fund 3.41% 9.78% 11.10% 8.92% 9.38%
INDEX FUND
SEI Index Funds S&P 500 Index Portfolio 15.03% 29.82% 28.30% 21.43% 17.12%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(R) 11.18% -0.27% 11.74% 11.87% 10.04%
Templeton Foreign Fund 0.13% 1.64% 8.79% 10.46% 11.22%
GOVERNMENT BOND FUND
Federated U.S. Government Securities Fund 0.52% 4.12% 4.55% 4.03% 6.34%
MONEY MARKET FUND
Nationwide(R)Money Market Fund 0.05% 2.12% 3.51% 3.30% 4.24%
U.S. TREASURY MONEY MARKET FUND
AIM STIT - Treasury Portfolio 0.27% 2.54% 3.95% 3.74% 4.70%
- --------------------------------------------------------------------------------------------------------------
<FN>
* These funds are not open to new participation.
** These funds are closed to entities adopting the NACo Public Employees Deferred Compensation Program on or
after July 1, 1994.
+ Funds are neither insured nor guaranteed by the U.S. Government. For the Money Market Fund, there can be
no assurance that this fund will be able to maintain a stable net asset value of $1 per share.
NOTE: The above illustration represents past fund performance based on a $1,000 hypothetical Investment. The
performance figures reflect the deduction of a 0.95% annual asset fee and the maximum contingent deferred
sales charge that would apply only in the event that this Variable Annuity contract is terminated by your
employer.
Investment principal and investment returns are not guaranteed under these variable options. Unit values at
the time of redemption may be worth more or less than their original cost. The results shown above should not
be considered a representation of performance or investor experience of the funds in the future.
For complete information about the options available to you through your deferred compensation program,
including charges and expenses, consult your prospectus(es) which are available from your local deferred
compensation representative. Please read the prospectus(es) carefully before investing or sending money.
</FN>
</TABLE>
7
<PAGE> 7
================================================================================
NACo VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century: Twentieth Century Growth Fund (ACTCGro)
4,032,561 shares (cost $82,969,100) ................................... $ 119,444,464
American Century: Twentieth Century Ultra Fund (ACTCUltra)
8,215,422 shares (cost $230,347,399) .................................. 278,092,037
The Bond Fund of America(SM), Inc. (BdFdAm)
1,155,299 shares (cost $16,020,330) ................................... 16,127,975
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
5,096,650 shares (cost $47,134,852) ................................... 63,300,391
Evergreen Income and Growth Fund - Class Y (EvIncGro)
149,613 shares (cost $2,986,572) ...................................... 3,571,264
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional shares (FedUSGvt)
486,951 shares (cost $5,193,282) ...................................... 5,190,898
Fidelity Capital & Income Fund (FidCapInc)
261,616 shares (cost $2,249,457) ...................................... 2,710,342
Fidelity Contrafund (FidContr)
7,101,221 shares (cost $285,481,961) .................................. 387,797,657
Fidelity Equity-Income Fund (FidEqInc)
7,023,793 shares (cost $259,481,865) .................................. 401,760,944
Fidelity Magellan(R) Fund (FidMgln)
1,367,701 shares (cost $112,603,658) .................................. 149,941,023
Fidelity OTC Portfolio (FidOTC)
964,605 shares (cost $33,825,016) ..................................... 38,304,482
Fidelity Puritan(R) Fund (FidPurtn)
1,830,323 shares (cost $32,655,451) ................................... 38,693,023
The Investment Company of America(R) (InvCoAm)
2,659,057 shares (cost $62,261,211) ................................... 83,388,014
MAS Funds - Fixed Income Portfolio (MASFIP)
331,853 shares (cost $3,984,878) ...................................... 4,028,700
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
1,119,599 shares (cost $13,280,696) ................................... 18,562,957
MFS(R) High Income Fund - Class A (MFSHiInc)
3,087,921 shares (cost $17,254,927) ................................... 17,354,115
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
1,000,916 shares (cost $11,311,151) ................................... 15,424,114
NAAT - The Aggressive Portfolio (NAATAggr)
103,579 shares (cost $1,179,646) ...................................... 1,191,161
</TABLE>
8
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<TABLE>
<S> <C>
NAAT - The Conservative Portfolio (NAATCons)
9,684 shares (cost $101,794) .................................................. 103,042
NAAT - The Moderate Portfolio (NAATMod)
60,261 shares (cost $661,364) ................................................. 671,915
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
94,690 shares (cost $1,030,127) ............................................... 1,066,206
NAAT - The Moderately Conservative Portfolio (NAATModCon)
32,036 shares (cost $345,584) ................................................. 349,508
Nationwide(R) Fund (NWFund)
4,661,140 shares (cost $108,902,524) .......................................... 144,262,296
Nationwide(R) Growth Fund (NWGroFd)
512,581 shares (cost $6,232,465) .............................................. 8,611,357
Nationwide(R) Money Market Fund (NWMyMkt)
51,199,125 shares (cost $51,199,125) .......................................... 51,199,125
Nationwide(R) Separate Account Trust - Small Company Fund (NSATSmCo)
110,476 shares (cost $1,899,245) .............................................. 1,858,209
Neuberger & Berman Guardian Fund (NBGuard)
1,549,734 shares (cost $41,137,933) ........................................... 45,097,247
Putnam Investors Fund - Class A (PutInvFd)
6,544,740 shares (cost $67,318,368) ........................................... 90,382,853
Putnam Voyager Fund - Class A (PutVoyFd)
11,102,540 shares (cost $176,406,040) ......................................... 247,031,521
SEI Index Funds - S&P 500 Index Portfolio (SEI500lx)
2,640,746 shares (cost $77,703,719) ........................................... 94,538,698
Seligman Growth Fund, Inc. - Class A (SelGroFd)
1,595,183 shares (cost $9,410,093) ............................................ 11,676,736
Short-Term Investments Trust - Treasury Portfolio - Institutional Class (AIMTreas)
3,637,603 shares (cost $3,637,603) ............................................ 3,637,603
T. Rowe Price International Funds, Inc. - International Stock Fund(R)(TRIntStk)
2,096,272 shares (cost $30,818,660) ........................................... 31,989,113
Templeton Foreign Fund - Class I (TemForFd)
4,706,446 shares (cost $49,272,168) ........................................... 48,052,816
-------------
Total investments .......................................................... 2,425,411,806
Accounts receivable ................................................................. -
-------------
Total assets ............................................................... $ 2,425,411,806
ACCOUNTS PAYABLE ....................................................................... 1,194,218
-------------
CONTRACT OWNERS' EQUITY (NOTE 4) ....................................................... $ 2,424,217,588
=============
</TABLE>
See accompanying notes to financial statements.
================================================================================
9
<PAGE> 9
================================================================================
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACTCGRO
----------------------------------- -----------------------------------
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 8,861,527 8,521,504 - -
Mortality and expense charges (note 2) (5,501,699) (3,928,317) (275,063) (331,683)
Administration charges (note 2) ....... (3,949,172) (2,758,548) (194,457) (232,573)
--------------- --------------- --------------- ---------------
Net investment activity ............. (589,344) 1,834,639 (469,520) (564,256)
Proceeds from mutual fund shares sold . 201,640,596 148,777,534 7,185,431 65,613,736
Cost of mutual fund shares sold ....... (166,087,596) (143,091,400) (5,935,062) (68,069,453)
--------------- --------------- --------------- ---------------
Realized gain (loss) on investments ... 35,553,000 5,686,134 1,250,369 (2,455,717)
Unrealized gain (loss) on investments . 274,522,723 194,485,796 22,041,433 19,758,622
--------------- --------------- --------------- ---------------
Net gain (loss) on investments ...... 310,075,723 200,171,930 23,291,802 17,302,905
--------------- --------------- --------------- ---------------
Reinvested capital gains .............. 14,551,216 8,287,025 - -
--------------- --------------- --------------- ---------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 324,037,595 210,293,594 22,822,282 16,738,649
--------------- --------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................... 250,515,370 206,770,431 (236,967) (56,747,694)
Redemptions .......................... (119,976,040) (60,545,571) (6,179,317) (7,395,091)
Annual contract maintenance charges .. (81) - - -
Adjustments to maintain reserves ..... (1,153,503) (50,866) 884 2,463
--------------- --------------- --------------- ---------------
Net equity transactions ............ 129,385,746 146,173,994 (6,415,400) (64,140,322)
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 453,423,341 356,467,588 16,406,882 (47,401,673)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................ 1,970,794,247 1,406,533,645 103,038,301 150,619,441
--------------- --------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD .. 2,424,217,588 1,763,001,233 119,445,183 103,217,768
=============== =============== =============== ===============
<CAPTION>
ACTCULTRA BDFDAM
----------------------------------- -----------------------------------
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - 564,198 492,847
Mortality and expense charges (note 2) (610,986) (423,190) (39,385) (34,958)
Administration charges (note 2) ....... (431,303) (294,149) (28,940) (25,056)
--------------- --------------- --------------- ---------------
Net investment activity ............. (1,042,289) (717,339) 495,873 432,833
Proceeds from mutual fund shares sold . 19,594,744 8,885,205 3,259,784 1,931,351
Cost of mutual fund shares sold ....... (12,860,331) (6,607,023) (3,165,089) (1,851,996)
--------------- --------------- --------------- ---------------
Realized gain (loss) on investments ... 6,734,413 2,278,182 94,695 79,355
Unrealized gain (loss) on investments . 46,157,788 24,092,305 (145,677) (20,974)
--------------- --------------- --------------- ---------------
Net gain (loss) on investments ...... 52,892,201 26,370,487 (50,982) 58,381
--------------- --------------- --------------- ---------------
Reinvested capital gains .............. - - 79,564 -
--------------- --------------- --------------- ---------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 51,849,912 25,653,148 524,455 491,214
--------------- --------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................... 20,180,418 23,934,245 1,883,853 298,748
Redemptions .......................... (12,430,191) (7,685,227) (1,134,692) (513,512)
Annual contract maintenance charges .. - - - -
Adjustments to maintain reserves ..... 4,128 (15,444) (637) (129)
--------------- --------------- --------------- ---------------
Net equity transactions ............ 7,754,355 16,233,574 748,524 (214,893)
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 59,604,267 41,886,722 1,272,979 276,321
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................ 218,492,461 149,650,009 14,869,833 13,981,906
--------------- --------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD .. 278,096,728 191,536,731 16,142,812 14,258,227
=============== =============== =============== ===============
</TABLE>
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10
<PAGE> 10
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRY3DCEN EVINCGRO
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 84,325 103,071
Mortality and expense charges (note 2) (144,281) (94,641) (9,596) (10,775)
Administration charges (note 2) ....... (103,982) (66,204) (6,779) (7,226)
------------ ------------ ------------ ------------
Net investment activity ............. (248,263) (160,845) 67,950 85,070
Proceeds from mutual fund shares sold . 3,596,174 820,855 652,088 613,927
Cost of mutual fund shares sold ....... (2,502,021) (701,417) (548,412) (581,697)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 1,094,153 119,438 103,676 32,230
Unrealized gain (loss) on investments . 8,646,546 6,258,403 (90,212) 285,350
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 9,740,699 6,377,841 13,464 317,580
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 9,492,436 6,216,996 81,414 402,650
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 4,957,975 10,820,817 (140,301) (349,417)
Redemptions ........................... (3,722,716) (1,185,411) (412,740) (185,881)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 376 (747) (3) (216)
------------ ------------ ------------ ------------
Net equity transactions ........... 1,235,635 9,634,659 (553,044) (535,514)
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 10,728,071 15,851,655 (471,630) (132,864)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 52,572,713 30,274,825 4,042,905 4,420,173
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 63,300,784 46,126,480 3,571,275 4,287,309
============ ============ ============ ============
<CAPTION>
FEDUSGVT FIDCAPINC
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 126,965 100,041 119,062 115,828
Mortality and expense charges (note 2) (11,644) (9,051) (6,890) (7,307)
Administration charges (note 2) ....... (8,272) (6,035) (4,470) (4,833)
------------ ------------ ------------ ------------
Net investment activity ............. 107,049 84,955 107,702 103,688
Proceeds from mutual fund shares sold . 3,685,841 736,119 161,820 271,022
Cost of mutual fund shares sold ....... (3,639,927) (731,544) (106,887) (201,584)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 45,914 4,575 54,933 69,438
Unrealized gain (loss) on investments . (35,344) (18,074) 39,887 (22,397)
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 10,570 (13,499) 94,820 47,041
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 117,619 71,456 202,522 150,729
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 1,137,638 260,915 (104,622) (160,412)
Redemptions ........................... (362,265) (180,959) (45,576) (98,195)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 51 38 (51) (23)
------------ ------------ ------------ ------------
Net equity transactions ........... 775,424 79,994 (150,249) (258,630)
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 893,043 151,450 52,273 (107,901)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 4,297,707 3,483,920 2,658,020 2,976,924
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 5,190,750 3,635,370 2,710,293 2,869,023
============ ============ ============ ============
</TABLE>
================================================================================
11
<PAGE> 11
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDCONTR FIDEQINC
------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 3,180,895 3,276,338
Mortality and expense charges (note 2) (876,017) (592,163) (961,343) (713,633)
Administration charges (note 2) ....... (639,369) (419,899) (668,100) (490,905)
------------- ------------- ------------- -------------
Net investment activity ............. (1,515,386) (1,012,062) 1,551,452 2,071,800
Proceeds from mutual fund shares sold . 10,934,922 532,205 7,820,696 2,570,367
Cost of mutual fund shares sold ....... (6,624,043) (411,280) (3,352,630) (1,390,698)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ... 4,310,879 120,925 4,468,066 1,179,669
Unrealized gain (loss) on investments . 52,583,146 23,370,642 28,499,976 39,211,076
------------- ------------- ------------- -------------
Net gain (loss) on investments ...... 56,894,025 23,491,567 32,968,042 40,390,745
------------- ------------- ------------- -------------
Reinvested capital gains .............. 485,601 3,576,229 4,242,353 2,983,969
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 55,864,240 26,055,734 38,761,847 45,446,514
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 29,687,377 57,607,805 23,718,523 35,349,056
Redemptions ........................... (17,720,488) (7,425,375) (14,128,421) (8,608,887)
Annual contract maintenance charges ... (81) - - -
Adjustments to maintain reserves ...... (1,021,022) (17,713) 1,226 (3,095)
------------- ------------- ------------- -------------
Net equity transactions ........... 10,945,786 50,164,717 9,591,328 26,737,074
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 66,810,026 76,220,451 48,353,175 72,183,588
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 320,987,870 202,139,639 353,408,823 252,903,435
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 387,797,896 278,360,090 401,761,998 325,087,023
============= ============= ============= =============
<CAPTION>
FIDMGIN FIDOTC
------------------------------- -------------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 266,931 887,068 - -
Mortality and expense charges (note 2) (344,039) (254,515) (86,646) (51,137)
Administration charges (note 2) ....... (254,457) (185,593) (60,761) (35,096)
------------- ------------- ------------- -------------
Net investment activity ............. (331,565) 446,960 (147,407) (86,233)
Proceeds from mutual fund shares sold . 5,787,371 4,087,385 6,903,777 1,567,135
Cost of mutual fund shares sold ....... (3,915,333) (3,578,760) (6,024,634) (1,410,503)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ... 1,872,038 508,625 879,143 156,632
Unrealized gain (loss) on investments . 17,052,524 12,080,439 4,962,341 1,856,000
------------- ------------- ------------- -------------
Net gain (loss) on investments ...... 18,924,562 12,589,064 5,841,484 2,012,632
------------- ------------- ------------- -------------
Reinvested capital gains .............. 3,496,797 1,726,827 - -
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 22,089,794 14,762,851 5,694,077 1,926,399
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 11,208,164 5,252,830 3,282,520 12,106,280
Redemptions ........................... (7,891,274) (4,080,718) (2,111,561) (871,308)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 16,520 452 (65,270) (1,388)
------------- ------------- ------------- -------------
Net equity transactions ........... 3,333,410 1,172,564 1,105,689 11,233,584
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 25,423,204 15,935,415 6,799,766 13,159,983
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 124,447,078 96,022,426 31,504,325 14,122,665
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 149,870,282 111,957,841 38,304,091 27,282,648
============= ============= ============= =============
</TABLE>
================================================================================
12
<PAGE> 12
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDPURTN INVCOAM
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 577,275 446,477 621,007 513,868
Mortality and expense charges (note 2) (88,500) (62,424) (196,125) (137,856)
Administration charges (note 2) ....... (65,785) (45,229) (147,663) (102,679)
------------ ------------ ------------ ------------
Net investment activity ............. 422,990 338,824 277,219 273,333
Proceeds from mutual fund shares sold . 1,002,201 814,338 4,174,436 447,709
Cost of mutual fund shares sold ....... (736,972) (684,522) (2,508,333) (312,271)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 265,229 129,816 1,666,103 135,438
Unrealized gain (loss) on investments . 2,751,594 2,752,077 6,471,724 8,662,376
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 3,016,823 2,881,893 8,137,827 8,797,814
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - 840,003 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 3,439,813 3,220,717 9,255,049 9,071,147
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 4,939,486 4,546,283 7,639,869 9,116,425
Redemptions ........................... (1,358,768) (726,234) (5,658,965) (1,771,273)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 180 90 298 1,016
------------ ------------ ------------ ------------
Net equity transactions ........... 3,580,898 3,820,139 1,981,202 7,346,168
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 7,020,711 7,040,856 11,236,251 16,417,315
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 31,672,502 21,589,381 72,152,047 47,716,024
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 38,693,213 28,630,237 83,388,298 64,133,339
============ ============ ============ ============
<CAPTION>
MASFIP MFSGROPP
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 48,577 28,745 - -
Mortality and expense charges (note 2) (8,287) (4,490) (43,858) (39,467)
Administration charges (note 2) ....... (6,243) (3,214) (31,542) (27,786)
------------ ------------ ------------ ------------
Net investment activity ............. 34,047 21,041 (75,400) (67,253)
Proceeds from mutual fund shares sold . 583,411 720,110 691,534 1,092,617
Cost of mutual fund shares sold ....... (573,360) (718,408) (463,329) (840,448)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 10,051 1,702 228,205 252,169
Unrealized gain (loss) on investments . 49,245 38,374 2,875,767 2,007,758
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 59,296 40,076 3,103,972 2,259,927
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - 197,644 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 93,343 61,117 3,226,216 2,192,674
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 1,386,796 506,339 28,786 (476,894)
Redemptions ........................... (147,121) (95,593) (560,863) (454,230)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... (1) 1,846 (90,451) (13,391)
------------ ------------ ------------ ------------
Net equity transactions ........... 1,239,674 412,592 (622,528) (944,515)
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 1,333,017 473,709 2,603,688 1,248,159
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 2,695,678 1,559,535 15,959,245 15,338,362
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 4,028,695 2,033,244 18,562,933 16,586,521
============ ============ ============ ============
</TABLE>
================================================================================
13
<PAGE> 13
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MFSHIINC MFSGRSTK
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 696,255 530,400 - -
Mortality and expense charges (note 2) (41,462) (30,533) (35,735) (29,157)
Administration charges (note 2) ....... (28,998) (20,986) (25,288) (20,158)
------------ ------------ ------------ ------------
Net investment activity ............. 625,795 478,881 (61,023) (49,315)
Proceeds from mutual fund shares sold . 6,295,734 3,835,668 868,954 3,942,610
Cost of mutual fund shares sold ....... (5,973,347) (3,591,928) (691,232) (4,232,530)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 322,387 243,740 177,722 (289,920)
Unrealized gain (loss) on investments . (93,216) (72,879) 2,874,464 2,790,280
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 229,171 170,861 3,052,186 2,500,360
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 854,966 649,742 2,991,163 2,451,045
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 3,238,984 1,605,127 369,204 (1,620,023)
Redemptions ........................... (1,127,215) (476,935) (751,845) (565,608)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... (4,501) (1,282) 106 1,095
------------ ------------ ------------ ------------
Net equity transactions ........... 2,107,268 1,126,910 (382,535) (2,184,536)
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 2,962,234 1,776,652 2,608,628 266,509
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 14,387,298 11,049,325 12,815,513 11,230,813
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 17,349,532 12,825,977 15,424,141 11,497,322
============ ============ ============ ============
<CAPTION>
NAATAGGR NAATCONS
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 205 - 13 -
Mortality and expense charges (note 2) (1,338) - (126) -
Administration charges (note 2) ....... (882) - (76) -
------------ ------------ ------------ ------------
Net investment activity ............. (2,015) - (189) -
Proceeds from mutual fund shares sold . 225,247 - 174,248 -
Cost of mutual fund shares sold ....... (213,137) - (173,748) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 12,110 - 500 -
Unrealized gain (loss) on investments . 11,515 - 1,247 -
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 23,625 - 1,747 -
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 21,610 - 1,558 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 1,173,689 - 101,484 -
Redemptions ........................... (7,486) - - -
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 3,400 - 1 -
------------ ------------ ------------ ------------
Net equity transactions ........... 1,169,603 - 101,485 -
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 1,191,213 - 103,043 -
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. - - - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 1,191,213 - 103,043 -
============ ============ ============ ============
</TABLE>
================================================================================
14
<PAGE> 14
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NAATMOD NAATMODAGG
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 292 - 884 -
Mortality and expense charges (note 2) (574) - (1,251) -
Administration charges (note 2) ....... (457) - (985) -
------------ ------------ ------------ ------------
Net investment activity ............. (739) - (1,352) -
Proceeds from mutual fund shares sold . 18,549 - 22,264 -
Cost of mutual fund shares sold ....... (17,287) - (20,202) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 1,262 - 2,062 -
Unrealized gain (loss) on investments . 10,551 - 36,079 -
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 11,813 - 38,141 -
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 11,074 - 36,789 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 687,622 - 1,034,673 -
Redemptions ........................... (26,781) - (5,257) -
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... (50) - (8) -
------------ ------------ ------------ ------------
Net equity transactions ........... 660,791 - 1,029,408 -
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 671,865 - 1,066,197 -
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. - - - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 671,865 - 1,066,197 -
============ ============ ============ ============
<CAPTION>
NAATMODCON NWFUND
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 199 - 642,116 391,657
Mortality and expense charges (note 2) (280) - (292,559) (134,628)
Administration charges (note 2) ....... (213) - (213,043) (95,433)
------------ ------------ ------------ ------------
Net investment activity ............. (294) - 136,514 161,596
Proceeds from mutual fund shares sold . 79,479 - 5,851,107 463,376
Cost of mutual fund shares sold ....... (77,847) - (3,043,284) (317,660)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 1,632 - 2,807,823 145,716
Unrealized gain (loss) on investments . 3,924 - 14,303,918 11,208,743
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 5,556 - 17,111,741 11,354,459
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - 4,917,925 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 5,262 - 22,166,180 11,516,055
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 350,769 - 41,398,864 12,861,126
Redemptions ........................... (6,522) - (8,408,977) (1,915,548)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... - - 966 (297)
------------ ------------ ------------ ------------
Net equity transactions ........... 344,247 - 32,990,853 10,945,281
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 349,509 - 55,157,033 22,461,336
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. - - 89,106,304 44,457,575
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 349,509 - 144,263,337 66,918,911
============ ============ ============ ============
</TABLE>
================================================================================
15
<PAGE> 15
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NWGROFD NWMYMKT
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 10,180 36,526 1,234,959 1,285,365
Mortality and expense charges (note 2) (20,662) (18,751) (121,726) (132,444)
Administration charges (note 2) ....... (15,009) (13,398) (81,624) (85,163)
------------ ------------ ------------ ------------
Net investment activity ............. (25,491) 4,377 1,031,609 1,067,758
Proceeds from mutual fund shares sold . 554,888 458,787 28,904,007 27,822,416
Cost of mutual fund shares sold ....... (354,644) (331,745) (28,904,007) (27,822,416)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 200,244 127,042 - -
Unrealized gain (loss) on investments . 918,162 1,123,363 - -
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 1,118,406 1,250,405 - -
------------ ------------ ------------ ------------
Reinvested capital gains .............. 291,329 - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 1,384,244 1,254,782 1,031,609 1,067,758
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... (85,411) (163,482) 10,809,264 3,974,271
Redemptions ........................... (356,603) (163,907) (6,407,716) (3,746,518)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 32 (18) 1,087 257
------------ ------------ ------------ ------------
Net equity transactions ........... (441,982) (327,407) 4,402,635 228,010
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 942,262 927,375 5,434,244 1,295,768
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 7,669,126 7,196,235 44,623,765 50,815,017
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 8,611,388 8,123,610 50,058,009 52,110,785
============ ============ ============ ============
<CAPTION>
NSATSMCO NBGUARD
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - 107,684 74,402
Mortality and expense charges (note 2) (2,540) - (108,372) (71,430)
Administration charges (note 2) ....... (1,851) - (75,967) (48,997)
------------ ------------ ------------ ------------
Net investment activity ............. (4,391) - (76,655) (46,025)
Proceeds from mutual fund shares sold . 2,786,575 - 3,608,524 1,088,005
Cost of mutual fund shares sold ....... (2,742,100) - (2,996,599) (856,213)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 44,475 - 611,925 231,792
Unrealized gain (loss) on investments . (41,036) - 4,365,873 3,215,283
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 3,439 - 4,977,798 3,447,075
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... (952) - 4,901,143 3,401,050
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 1,901,627 - 2,865,418 10,526,570
Redemptions ........................... (42,465) - (2,728,254) (1,111,061)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... 53 - 352 (3,228)
------------ ------------ ------------ ------------
Net equity transactions ........... 1,859,215 - 137,516 9,412,281
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 1,858,263 - 5,038,659 12,813,331
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. - - 40,059,033 21,909,962
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 1,858,263 - 45,097,692 34,723,293
============ ============ ============ ============
</TABLE>
================================================================================
16
<PAGE> 16
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
PUTINVFD PUTVOYFD
------------------------------ ------------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - - -
Mortality and expense charges (note 2) (186,317) (105,733) (556,639) (373,376)
Administration charges (note 2) ....... (137,570) (77,601) (406,933) (267,259)
------------ ------------ ------------ ------------
Net investment activity ............. (323,887) (183,334) (963,572) (640,635)
Proceeds from mutual fund shares sold . 4,530,581 1,164,187 6,427,577 2,056,638
Cost of mutual fund shares sold ....... (2,994,709) (1,028,827) (3,090,190) (1,218,328)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 1,535,872 135,360 3,337,387 838,310
Unrealized gain (loss) on investments . 13,596,693 7,460,464 31,238,182 16,339,677
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 15,132,565 7,595,824 34,575,569 17,177,987
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 14,808,678 7,412,490 33,611,997 16,537,352
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 19,138,850 8,512,659 24,262,617 22,596,211
Redemptions ........................... (3,487,916) (1,548,901) (11,233,807) (5,546,604)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... (807) 386 (492) 4,484
------------ ------------ ------------ ------------
Net equity transactions ........... 15,650,127 6,964,144 13,028,318 17,054,091
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 30,458,805 14,376,634 46,640,315 33,591,443
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 59,923,257 35,803,162 200,390,725 137,145,381
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 90,382,062 50,179,796 247,031,040 170,736,824
============ ============ ============ ============
<CAPTION>
SEI500IX SELGROFD
------------------------------ ------------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 458,878 148,745 - --
Mortality and expense charges (note 2) (191,999) (58,724) (27,214) (23,196)
Administration charges (note 2) ....... (139,292) (40,688) (19,486) (15,862)
------------ ------------ ------------ ------------
Net investment activity ............. 127,587 49,333 (46,700) (39,058)
Proceeds from mutual fund shares sold . 5,889,475 256,727 1,526,073 750,304
Cost of mutual fund shares sold ....... (4,045,787) (201,940) (1,114,190) (701,943)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... 1,843,688 54,787 411,883 48,361
Unrealized gain (loss) on investments . 9,787,189 4,538,562 1,580,524 1,043,205
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... 11,630,877 4,593,349 1,992,407 1,091,566
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 11,758,464 4,642,682 1,945,707 1,052,508
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 30,342,073 24,716,948 638,129 929,648
Redemptions ........................... (5,516,740) (1,409,295) (614,067) (387,786)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... (11) (2,562) 51 (407)
------------ ------------ ------------ ------------
Net equity transactions ........... 24,825,322 23,305,091 24,113 541,455
NET CHANGE IN CONTRACT OWNERS' EQUITY ... 36,583,786 27,947,773 1,969,820 1,593,963
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 57,955,034 10,582,236 9,706,959 8,433,505
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 94,538,820 38,530,009 11,676,779 10,027,468
============ ============ ============ ============
</TABLE>
<PAGE> 17
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
AIMTreas TRIntStk
------------------------------ ------------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 120,627 90,126 - -
Mortality and expense charges (note 2) (10,391) (8,847) (75,293) (72,592)
Administration charges (note 2) ....... (7,247) (5,594) (51,964) (48,304)
------------ ------------ ------------ ------------
Net investment activity ............. 102,989 75,685 (127,257) (120,896)
Proceeds from mutual fund shares sold . 23,011,970 6,179,448 27,718,910 7,588,473
Cost of mutual fund shares sold ....... (23,011,970) (6,179,448) (27,349,019) (6,430,207)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ... - - 369,891 1,158,266
Unrealized gain (loss) on investments . - - 3,545,044 2,391,991
------------ ------------ ------------ ------------
Net gain (loss) on investments ...... - - 3,914,935 3,550,257
------------ ------------ ------------ ------------
Reinvested capital gains .............. - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 102,989 75,685 3,787,678 3,429,361
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 717,512 1,805,822 1,185,815 6,077,634
Redemptions ........................... (1,345,517) (369,513) (1,659,493) (1,065,254)
Annual contract maintenance charges ... - - - -
Adjustments to maintain reserves ...... (885) 2,955 282 (5,667)
------------ ------------ ------------ ------------
Net equity transactions ........... (628,890) 1,439,264 (473,396) 5,006,713
NET CHANGE IN CONTRACT OWNERS' EQUITY ... (525,901) 1,514,949 3,314,282 8,436,074
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 4,162,607 2,686,515 28,674,990 25,426,682
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... $ 3,636,706 4,201,464 31,989,272 33,862,756
============ ============ ============ ============
<CAPTION>
TemForFd
------------------------------
1998 1997
------------ ------------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - -
Mortality and expense charges (note 2) (124,561) (101,616)
Administration charges (note 2) ....... (90,164) (72,628)
------------ ------------
Net investment activity ............. (214,725) (174,244)
Proceeds from mutual fund shares sold . 7,112,204 2,466,814
Cost of mutual fund shares sold ....... (6,317,934) (2,086,611)
------------ ------------
Realized gain (loss) on investments ... 794,270 380,203
Unrealized gain (loss) on investments . 522,872 4,135,130
------------ ------------
Net gain (loss) on investments ...... 1,317,142 4,515,333
------------ ------------
Reinvested capital gains .............. - -
------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ...................... 1,102,417 4,341,089
------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ..................... 814,672 12,882,594
Redemptions ........................... (2,384,421) (960,747)
Annual contract maintenance charges ... - -
Adjustments to maintain reserves ...... 693 (341)
------------ ------------
Net equity transactions ........... (1,569,056) 11,921,506
NET CHANGE IN CONTRACT OWNERS' EQUITY ... (466,639) 16,262,595
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................. 48,520,128 32,998,572
------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ... 48,053,489 49,261,167
============ ============
</TABLE>
See accompanying notes to financial statements.
<PAGE> 18
NACo VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 and 1997
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
NACo Variable Account (NACoVA) was established pursuant to a resolution
of the Board of Directors of Nationwide Life Insurance Company (the
Company) on September 7, 1988, and has been registered as a unit
investment trust under the Investment Company Act of 1940. The NACoVA
was introduced for exclusive use by Member Counties for deferred
compensation Plans adopted under the National Association of Counties
(NACo) Program.
The Company offers group flexible fund retirement contracts through the
NACoVA. The primary distribution for the contracts is through an
affiliated sales organization.
(b) The Contracts
The Group Flexible Retirement Contracts (the Contract) are offered for
purchase in connection with deferred compensation Plans adopted by
Member Counties under the NACo Program. Participants in the contracts
may invest in any of the following fund sub-accounts:
American Century: Twentieth Century Growth Fund (ACTCGro)
American Century: Twentieth Century Ultra Fund (ACTCUltra)
The Bond Fund of America(SM), Inc. (BdFdAm)
(only available for certain contracts issued beginning January
1, 1994)
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
Evergreen Income and Growth Fund - Class Y (EvIncGro) (formerly
The Evergreen Total Return Fund - Class Y) (not available for
contracts issued on or after October 1, 1993)
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
Fidelity Capital & Income Fund (FidCapInc)
(not available for contracts issued on or after January 1, 1987)
Fidelity Contrafund (FidContr)
Fidelity Equity-Income Fund (FidEqInc)
Fidelity Magellan(R) Fund (FidMgln)
Fidelity OTC Portfolio (FidOTC)
Fidelity Puritan(R) Fund (FidPurtn)
The Investment Company of America(R) (InvCoAm)
(only available for certain contracts issued beginning July 1,
1994)
MAS Funds - Fixed Income Portfolio (MASFIP)
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp) (not
available for contracts issued on or after October 1, 1993)
MFS(R) High Income Fund - Class A (MFSHiInc)
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
19
<PAGE> 19
NAAT - The Aggressive Portfolio (NAATAggr)
NAAT - The Conservative Portfolio (NAATCons)
NAAT - The Moderate Portfolio (NAATMod)
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
NAAT - The Moderately Conservative Portfolio (NAATModCon)
Nationwide(R) Fund (NWFund) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Growth Fund (NWGroFd) (managed for a fee by an
affiliated investment advisor) (not available for contracts
issued on or after October 1, 1993)
Nationwide(R) Money Market Fund (NWMyMkt) (managed for a fee by
an affiliated investment advisor)
Nationwide(R) Separate Account Trust - Small Company Fund
(NSATSmCo)
Neuberger & Berman Guardian Fund (NBGuard)
Putnam Investors Fund - Class A (PutInvFd)
Putnam Voyager Fund - Class A (PutVoyFd)
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
Seligman Growth Fund, Inc. - Class A (SelGroFd)
Short-Term Investments Trust - Treasury Portfolio - Institutional
Class (AIMTreas)
T. Rowe Price International Funds, Inc. - International Stock
Fund(R) (TRIntStk)
Templeton Foreign Fund - Class I (TemForFd)
All of the above funds were being utilized as of June 30, 1998.
The contract owners' equity is affected by the investment results of
each fund, equity transactions by contract owners and certain expenses
(see note 2). The accompanying financial statements include only
contract owners' purchase payments pertaining to the variable portions
of their contracts and exclude any purchase payments for fixed dollar
benefits, the latter being included in the accounts of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1998. 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 NACoVA 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 assets in this account are held pursuant to
contracts with entities which are exempt from federal income tax.
Because of this exemption, no taxes need be provided for investment
income or realized and unrealized capital gains. Annuity payouts and
withdrawal payments are taxable as wages when received by the
participants.
(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.
20
<PAGE> 20
(2) EXPENSES
No deduction for a sales charge is made from the purchase payments for
these contracts. However, if an owner terminates the contract and directs
the Company to withdraw all or part of the contract value held in the
Account for less than sixteen (16) years, the Company will, with certain
exceptions, assess a contingent deferred sales charge by deducting an
amount from each participant's account. This charge will be equal to not
more than 4% in the first year, declining to 1% in the fifteenth year, of
the lesser of all purchase payments made on behalf of a participant prior
to the date of withdrawal, or the amount withdrawn. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company. Sales charges may be reduced or eliminated upon
negotiated conversion of the contracts to other investment programs offered
by the Company or its affiliates.
Prior to May 1, 1998 the following charges were deducted by the Company: a
mortality risk charge, an expense risk charge and an administration charge
which are assessed through the daily unit value calculation. The morality
risk charge and the expense risk charge are equal to an annual rate of
0.10% and 0.40% respectively; and the administration charge prior to May 1,
1996 was 0.45%. Beginning May 1, 1996, the administration charge is based
upon the aggregate balance of assets held under the Contract by each Member
County and ranged from .15% to .45%.
Beginning May 1, 1998 under the terms of the Contracts, the Company assumes
various risks and incurs administrative expenses associated with the
issuance of the Contracts. For the Company's contractual promise to accept
these risks and expenses, the Contracts provide for the deduction of a
Variable Account Fee, which is calculated as a percentage of assets and is
deducted on each valuation date from amounts held in the Account. On an
annual basis, the maximum Variable Account Fee is 0.95% of the average
account value.
As with all other charges, this fee is subject to negotiation and may vary
from one contract to another reflecting the unique characteristics of
different contracts when considered as a whole. In negotiating the amount
of the fee, the Company may consider factors which may reduce expenses
incurred by the Company. These factors might include, but are not limited
to: (1) the size of the contract; (2) the number of eligible employees; (3)
the number of contract participants; (4) demographics of contract
participants; (5) general economic conditions; (6) the varying costs
associated with the inclusion of underlying mutual fund options; (7) the
type of contract issued (for example, whether the contract is issued as an
allocated contract or unallocated contract); (8) costs associated with
distribution of the contract; and (9) any other factors which the Company
deems relevant.
Contract owners may negotiate an exchange privilege with the Company. The
exchange privilege provides for transfers of units among the various
investment options for each participant's account. The number of transfers
allowed, and any administrative charges associated therewith, are subject
to negotiation between the contract owner and the Company.
(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.
21
<PAGE> 21
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1998.
<TABLE>
<CAPTION>
AVERAGE
UNITS UNIT VALUE*
--------- -----------
<S> <C> <C> <C>
American Century: Twentieth Century Growth Fund 16,619,787 $ 7.186926 $ 119,445,183
American Century: Twentieth Century Ultra Fund 129,436,420 2.148520 278,096,728
The Bond Fund of America(SM), Inc. 6,686,766 2.414143 16,142,812
The Dreyfus Third Century Fund, Inc. 15,210,333 4.161696 63,300,784
Evergreen Income and Growth Fund - Class Y 1,449,627 2.463582 3,571,275
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares 3,882,074 1.337107 5,190,750
Fidelity Capital & Income Fund 539,948 5.019544 2,710,293
Fidelity Contrafund 171,335,551 2.263383 387,797,896
Fidelity Equity-Income Fund 52,479,306 7.655627 401,761,998
Fidelity Magellan(R)Fund 70,549,683 2.124323 149,870,282
Fidelity OTC Portfolio 17,683,905 2.166043 38,304,091
Fidelity Puritan(R) Fund 21,940,402 1.763560 38,693,213
The Investment Company of America(R) 32,482,203 2.567200 83,388,298
MAS Funds - Fixed Income Portfolio 2,928,643 1.375618 4,028,695
MFS(R) Growth Opportunities Fund - Class A 1,716,108 10.816879 18,562,933
MFS(R) High Income Fund - Class A 2,663,457 6.513915 17,349,532
Massachusetts Investors Growth
Stock Fund - Class A 780,807 19.754102 15,424,141
NAAT - The Aggressive Portfolio 1,055,748 1.128312 1,191,213
NAAT - The Conservative Portfolio 97,145 1.060713 103,043
NAAT - The Moderate Portfolio 610,422 1.100657 671,865
NAAT - The Moderately Aggressive Portfolio 961,150 1.109293 1,066,197
NAAT - The Moderately Conservative Portfolio 323,266 1.081181 349,509
Nationwide(R) Fund - Class D 5,730,338 25.175363 144,263,337
Nationwide(R) Growth Fund - Class D 1,883,767 4.571366 8,611,388
Nationwide(R) Money Market Fund 16,293,189 3.072327 50,058,009
Nationwide(R) SAT - Small Company Fund 1,829,135 1.015924 1,858,263
Neuberger & Berman Equity Fund -
Guardian Fund 23,537,609 1.915984 45,097,692
Putnam Investors Fund - Class A 4,075,004 22.179625 90,382,062
Putnam Voyager Fund - Class A 55,295,492 4.467472 247,031,040
SEI Index Funds - S&P 500 Index Portfolio 53,699,412 1.760519 94,538,820
Seligman Growth Fund, Inc. - Class A. 775,603 15.055098 11,676,779
Short-Term Investments Trust -
Treasury Portfolio - Institutional Class 2,905,039 1.251861 3,636,706
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) 23,527,891 1.359632 31,989,272
Templeton Foreign Fund - Class I 36,581,831 1.313589 48,053,489
========== ======== ---------------
Total Contract Owners' Equity $ 2,424,217,588
===============
<FN>
* This is a blended unit value and will not match individual contract owners' unit values as contract owners receive different
contract charges determined by their employee benefit plan's negotiated rate. As these charges vary by contract and reduce the
contract owners' unit value, the unit value for each contract owner varies accordingly.
</TABLE>
22
<PAGE> 22
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<PAGE> 23
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
