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[NACO LOGO]
NACo
VARIABLE
ACCOUNT
SEMI-ANNUAL REPORT
TO
PARTICIPANTS AND RETIRED PARTICIPANTS
JUNE 30,1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE:COLUMBUS, OHIO
APO-2278-Q(6/99) 2 [LOGO]
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[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to present the
1999 semi-annual report of the NACo Variable Account.
Equity investments performed well during the first half of 1999 with the major
market indices showing double-digit gains. Fixed income investments did not fare
as well during this period in the face of the Federal Reserve's inflation
cautiousness. The Fed is mindful of the resilient U.S. economy and the
increasingly tight labor pool that portends future wage inflation. Accordingly,
we have seen a ratcheting-up of short-term interest rates to dampen the momentum
of the current expansion. How aggressively the Fed may react to the perceived
inflation threat only adds uncertainty to the already jittery equity markets.
Over the long term, however, a slower but sustainable rate of growth, with low
inflation, provides a favorable environment for further advances in financial
assets.
At mid-year, we are pleased to report that all the mission-critical systems used
to service our variable annuity and variable life business have been internally
inventoried, assessed and tested as being Year 2000 compliant. We are currently
contacting our critical business partners to determine if they will be Year 2000
compliant. Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure that
Nationwide Financial will be able to continue to serve your financial needs into
the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve your financial
planning and retirement savings goals. You have our commitment to provide the
consistent, high quality service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
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Contents
HOW TO READ THE SEMI-ANNUAL REPORT .................................. 4
Explanation on how to read and understand
the various financial reports
FUND PERFORMANCES ................................................... 5
STATEMENT OF ASSETS,LIABILITIES AND CONTRACT OWNERS' EQUITY ......... 9
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY ..........................................12
NOTES TO FINANCIAL STATEMENTS .......................................26
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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
fifty-five mutual funds from twenty-two mutual fund houses.
The Semi-AnnualReport has two major financial sections.
Statement of Assets, Liabilities and Contract Owners' Equity
This statement, beginning on page 9, 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, 1999.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 30.
Statements of Operations and Changes in Contract Owners' Equity
These statements, found on page 12, 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 and the variable
account fee 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 26, will also help explain and clarify
the various statements and schedules.
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NACo Fund Performances
Average Annual Total Return: Non-Standardized++
Percent Change in Net Assets with Capital Gains and Income Dividends Reinvested
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
7/1/98- Year 7/1/96- 7/1/94- 7/1/89-
FUNDS+ 6/30/99 1998 6/30/99 6/30/99 6/30/99
- ----- ------- ---- ------- ------- --------
<S> <C> <C> <C> <C> <C>
LIFE DESIGN SERIES
Aggressive Portfolio 10.29% N/A% N/A% N/A% N/A%
Moderately Aggressive Portfolio 9.80% N/A% N/A% N/A% N/A%
Moderate Portfolio 9.96% N/A% N/A% N/A% N/A%
Moderately Conservative Portfolio 8.89% N/A% N/A% N/A% N/A%
Conservative Portfolio 6.88% N/A% N/A% N/A% N/A%
VERY HIGH
American Century:Twentieth Century Growth Fund(*) 21.67% 35.48% 26.83% 21.71% 16.07%
American Century:
Twentieth Century International Discovery Fund 10.94% 16.76% 20.65% 18.06% N/A%
American Century:Twentieth Century Ultra Fund, Inc. 20.87% 33.27% 23.78% 24.41% 20.88%
INVESCO Dynamics Fund 31.50% 22.47% 25.97% 25.44% 19.90%
Mass.Investors Growth Stock Fund(*) 25.40% 38.68% 34.75% 30.39% 19.28%
NSAT Small Company Fund 1.47% 0.05% 9.01% N/A% N/A%
Prestige Small Capital Fund N/A% N/A% N/A% N/A% N/A%
Putnam Voyager Fund 20.14% 22.88% 20.50% 24.44% 18.42%
Warburg Pincus Emerging Growth Fund -0.35% 4.82% 9.50% 17.91% 13.82%
HIGH
Dreyfus Appreciation Fund 14.54% 29.61% 24.54% 25.76% 16.03%
Dreyfus Third Century Fund 21.90% 28.94% 27.07% 25.03% 16.11%
Fidelity Advisor Growth Opportunities Fund 10.87% 23.03% N/A% N/A% N/A%
Fidelity Contrafund(*) 24.01% 30.28% 25.20% 24.36% 21.57%
Fidelity Magellan((R))Fund(*) 27.52% 32.36% 26.65% 23.98% 18.12%
Fidelity OTC Portfolio 38.53% 39.05% 25.87% 26.09% 18.09%
MFS((R))Growth Opportunities Fund(*) 15.22% 27.95% 21.95% 23.25% 14.65%
Morgan Stanley Institutional Fund 12.62% 17.66% 23.06% 26.59% N/A%
Nationwide((R))Growth Fund(*) 13.37% 22.58% 21.97% 20.85% 13.89%
Neuberger & Berman Partners Trust 11.05% 5.14% 19.93% 21.22% 15.02%
Oppenheimer Global Fund 12.77% 11.35% 17.45% 15.03% 12.68%
Prestige International Fund N/A% N/A% N/A% N/A% N/A%
Prestige Large Capital Growth Fund N/A% N/A% N/A% N/A% N/A%
Putnam Investors Fund 19.88% 34.24% 28.74% 26.95% 18.27%
Seligman Growth Fund, Inc. 22.22% 33.96% 22.61% 22.37% 15.53%
T.Rowe Price International Stock Fund((R)) 5.42% 15.04% 8.43% 9.08% 9.50%
Templeton Foreign Fund 12.72% -5.79% 9.41% 9.42% 10.98%
</TABLE>
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NACO FUND PERFORMANCES
AVERAGE ANNUAL TOTAL RETURN: NON-STANDARDIZED
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
7/1/98- Year 7/1/96- 7/1/94- 7/1/89-
FUNDS+ 6/30/99 1998 6/30/99 6/30/99 6/30/99
------ ------- ---- ------- -------- --------
MODERATE
<S> <C> <C> <C> <C> <C>
American Century: Income & Growth Fund 2.82% 26.49% 21.32% 21.97% N/A
Dreyfus Premier Midcap Stock Fund -7.39% 7.61% N/A N/A N/A
Evergreen Income and Growth Fund* 10.14% -1.73% 13.94% 13.94% 9.67%
Fidelity Equity-Income Fund* 13.44% 11.46% 21.37% 20.65% 14.47%
Nationwide(R) Fund 13.62% 29.11% 28.82% 25.83% 16.94%
Nationwide(R) S&P 500 Index Fund N/A N/A N/A N/A N/A
Neuberger & Berman Guardian Fund 3.61% 1.38% 15.04% 16.08% 13.93%
Prestige Large Capital Value Fund N/A N/A N/A N/A N/A
SEI Index Funds S&P 500 Index Portfolio 21.36% 27.13% 27.57% 26.38% 17.38%
LOW
Fidelity Advisor High Yield Fund 0.15% -1.66% 8.28% 9.07% N/A
Fidelity Capital & Income Fund* 8.45% 3.76% 12.02% 10.42% 10.87%
Fidelity Puritan(R) Fund 9.13% 15.49% 16.55% 15.10% 12.80%
INVESCO Total Return Fund 10.00% 12.24% 16.41% 16.55% 12.33%
Investment Company of America(R)** 20.89% 21.77% 24.42% 22.33% 15.78%
MFS(R) High Income Fund -0.51% 0.07% 8.08% 8.78% 8.43%
Prestige Balanced Fund N/A N/A N/A N/A N/A
VERY LOW
Bond Fund of America(SM), Inc.** 1.21% 4.17% 6.11% 6.88% 7.48%
Federated Bond Fund N/A 4.62% N/A N/A N/A
Federated U.S. Government Securities Fund 2.79% 7.08% 4.95% 5.17% 5.91%
MAS Funds - Fixed Income Portfolio 1.09% 5.90% 6.12% 7.14% 7.73%
STABLE VALUE
AIM STIT - Treasury Portfolio 4.08% 4.46% 4.37% 4.43% 4.47%
Nationwide(R) Money Market Fund 3.74% 4.08% 3.98% 4.04% 4.01%
S&P 500 *** 22.80% 28.58% 29.10% 27.90% 18.80%
</TABLE>
* 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.
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NACO FUND PERFORMANCES
AVERAGE ANNUAL TOTAL RETURN: STANDARDIZED
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
7/1/98- Year 7/1/96- 7/1/94- 7/1/89-
FUNDS+ 6/30/99 1998 6/30/99 6/30/99 6/30/99
------ ------- ---- ------- -------- --------
<S> <C> <C> <C> <C> <C>
LIFE DESIGN SERIES
Aggressive Portfolio N/A N/A N/A N/A N/A
Moderately Aggressive Portfolio N/A N/A N/A N/A N/A
Moderate Portfolio N/A N/A N/A N/A N/A
Moderately Conservative Portfolio N/A N/A N/A N/A N/A
Conservative Portfolio N/A N/A N/A N/A N/A
VERY HIGH
American Century: Twentieth Century Growth Fund* 19.67% 33.48% 26.41% 21.53% N/A
American Century:
Twentieth Century International Discovery Fund 8.94% N/A N/A N/A N/A
American Century: Twentieth Century Ultra Fund, Inc. 18.87% 31.27% 23.34% 20.17% N/A
INVESCO Dynamics Fund 29.50% N/A N/A N/A N/A
Mass. Investors Growth Stock Fund* 23.40% 36.68% 34.38% 30.25% N/A
NSAT Small Company Fund -0.53% -1.95% N/A N/A N/A
Prestige Small Capital Fund N/A N/A N/A N/A N/A
Putnam Voyager Fund 18.14% 20.88% 20.04% 24.27% N/A
Warburg Pincus Emerging Growth Fund N/A N/A N/A N/A N/A
HIGH
Dreyfus Appreciation Fund N/A N/A N/A N/A N/A
Dreyfus Third Century Fund 19.90% 26.94% 26.66% 24.86% N/A
Fidelity Advisor Growth Opportunities Fund N/A N/A N/A N/A N/A
Fidelity Contrafund* 22.01% 28.28% 24.77% 24.20% N/A
Fidelity Magellan(R) Fund* 25.52% 30.36% 26.24% 23.81% N/A
Fidelity OTC Portfolio 36.53% 37.05% 25.44% N/A N/A
MFS(R) Growth Opportunities Fund* 13.22% 25.95% 21.50% 23.08% N/A
Morgan Stanley Institutional Fund N/A N/A N/A N/A N/A
Nationwide(R) Growth Fund* 11.37% 20.58% 21.52% 20.66% N/A
Neuberger & Berman Partners Trust N/A N/A N/A N/A N/A
Oppenheimer Global Fund N/A N/A N/A N/A N/A
Prestige International Fund N/A N/A N/A N/A N/A
Prestige Large Capital Growth Fund N/A N/A N/A N/A N/A
Putnam Investors Fund 17.88% 32.24% 28.34% 26.79% N/A
Seligman Growth Fund, Inc. 20.22% 31.96% 22.16% 22.19% N/A
T. Rowe Price International Stock Fund(R) 3.42% 13.04% 7.86% N/A N/A
Templeton Foreign Fund 10.72% -7.67% 8.85% N/A N/A
</TABLE>
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NACO FUND PERFORMANCES
AVERAGE ANNUAL TOTAL RETURN: STANDARDIZED
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
<TABLE>
<CAPTION>
1 Year 3 Years 5 Years 10 Years
7/1/98- Year 7/1/96- 7/1/94- 7/1/89-
FUNDS+ 6/30/99 1998 6/30/99 6/30/99 6/30/99
------ ------- ---- ------- -------- --------
<S> <C> <C> <C> <C> <C>
MODERATE
American Century: Income & Growth Fund N/A N/A N/A N/A N/A
Dreyfus Premier Midcap Stock Fund N/A N/A N/A N/A N/A
Evergreen Income and Growth Fund* 8.14% -3.70% 13.42% 13.71% N/A
Fidelity Equity-Income Fund* 11.44% 9.46% 20.91% 20.46% N/A
Nationwide(R) Fund 11.62% 27.11% 28.42% 25.67% N/A
Nationwide(R) S&P 500 Index Fund N/A N/A N/A N/A N/A
Neuberger & Berman Guardian Fund 1.61% -0.62% 14.53% N/A N/A
Prestige Large Capital Value Fund N/A N/A N/A N/A N/A
SEI Index Funds S&P 500 Index Portfolio 19.36% 25.13% 27.16% N/A N/A
LOW
Fidelity Advisor High Yield Fund N/A N/A N/A N/A N/A
Fidelity Capital & Income Fund* 6.45% 1.76% 11.48% 10.15% N/A
Fidelity Puritan(R) Fund 7.13% 13.49% 16.06% N/A N/A
INVESCO Total Return Fund N/A N/A N/A N/A N/A
Investment Company of America(R)** 18.89% 19.77% 23.98% 22.15% N/A
MFS(R) High Income Fund -2.50% -1.93% 7.50% 8.49% N/A
Prestige Balanced Fund N/A N/A N/A N/A N/A
VERY LOW
Bond Fund of America(SM), Inc.** -0.79% 2.17% 5.51% 6.57% N/A
Federated Bond Fund N/A N/A N/A N/A N/A
Federated U.S. Government Securities Fund 0.79% 5.08% 4.34% 4.84% N/A
MAS Funds - Fixed Income Portfolio -0.91% 3.90% 5.52% N/A N/A
STABLE VALUE
AIM STIT - Treasury Portfolio 2.08% 2.46% 3.76% 4.09% N/A
Nationwide(R) Money Market Fund 1.74% 2.08% 3.36% 3.69% N/A
</TABLE>
* 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 a 2% 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.
8
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NACo VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century: Income & Growth Fund (ACIncGro)
217,762 shares (cost $6,536,068) ............................................ $ 6,931,380
American Century: Twentieth Century Growth Fund (ACTCGro)
4,697,419 shares (cost $101,075,462) ........................................ 141,345,324
American Century: Twentieth Century International Discovery Fund (ACTCIntDis)
307,400 shares (cost $3,428,743) ............................................ 3,535,094
American Century: Twentieth Century Ultra Fund, Inc. (ACTCUltra)
10,931,561 shares (cost $330,326,978) ....................................... 410,698,761
The Bond Fund of AmericaSM, Inc. (BdFdAm)
1,350,124 shares (cost $18,653,152) ......................................... 17,889,142
Dreyfus Appreciation Fund, Inc. (DryApp)
90,611 shares (cost $3,910,475) ............................................. 4,073,891
Dreyfus Premier Midcap Stock - Class A (DryPreMCap)
22,094 shares (cost $355,747) ............................................... 380,011
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
6,026,945 shares (cost $59,537,842) ......................................... 82,689,690
Evergreen Income and Growth Fund - Class Y (EvIncGro)
143,663 shares (cost $2,902,526) ............................................ 3,297,073
Federated Investment Series Fund, Inc. - Federated Bond Fund - Class F (FedBdFd)
66,075 shares (cost $639,896) ............................................... 621,763
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional shares (FedUSGvt)
1,114,800 shares (cost $12,116,181) ......................................... 11,772,286
Fidelity Advisor Growth Opportunities Fund - Class A (FAGrOppA)
28,646 shares (cost $1,435,499) ............................................. 1,521,662
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
53,792 shares (cost $638,395) ............................................... 629,363
Fidelity Capital & Income Fund (FidCapInc)
264,910 shares (cost $2,369,961) ............................................ 2,643,804
Fidelity Contrafund (FidContr)
8,488,333 shares (cost $369,467,254) ........................................ 533,321,986
Fidelity Equity-Income Fund (FidEqInc)
6,746,124 shares (cost $270,070,200) ........................................ 415,763,596
Fidelity Magellan(R) Fund (FidMgln)
1,648,069 shares (cost $150,171,732) ........................................ 213,869,925
Fidelity OTC Portfolio (FidOTC)
1,390,656 shares (cost $55,440,726) ......................................... 71,757,826
</TABLE>
(Continued)
9
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<TABLE>
<S> <C>
Fidelity Puritan(R) Fund (FidPurtn)
2,339,299 shares (cost $43,168,300) ................................................ 48,353,303
INVESCO Dynamics Fund, Inc. (InvDynam)
207,694 shares (cost $3,861,737) ................................................... 4,095,717
INVESCO Total Return Fund (InvTotRet)
29,123 shares (cost $930,164) ...................................................... 961,657
The Investment Company of America(R) (InvCoAm)
3,178,522 shares (cost $79,613,095) ................................................ 109,055,076
MAS Funds - Fixed Income Portfolio (MASFIP)
551,279 shares (cost $6,581,021) ................................................... 6,279,065
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
1,071,386 shares (cost $12,699,491) ................................................ 19,124,240
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
1,158,553 shares (cost $14,400,951) ................................................ 19,521,612
MFS(R) High Income Fund - Class A (MFSHiInc)
3,467,498 shares (cost $18,447,677) ................................................ 17,857,617
Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio - Class B (MSIEqGroB)
22,683 shares (cost $465,940) ...................................................... 496,532
NAAT - The Aggressive Portfolio (NAATAggr)
282,543 shares (cost $3,127,065) ................................................... 3,469,625
NAAT - The Conservative Portfolio (NAATCons)
161,249 shares (cost $1,750,819) ................................................... 1,776,961
NAAT - The Moderate Portfolio (NAATMod)
275,606 shares (cost $3,047,736) ................................................... 3,304,520
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
283,384 shares (cost $3,139,651) ................................................... 3,406,270
NAAT - The Moderately Conservative Portfolio (NAATModCon)
123,949 shares (cost $1,384,541) ................................................... 1,435,334
Nationwide(R) Fund - Class D (NWFund)
6,282,796 shares (cost $165,379,346) ............................................... 217,824,529
Nationwide(R) Growth Fund - Class D (NWGroFd)
474,277 shares (cost $5,947,388) ................................................... 8,944,871
Nationwide(R) Money Market Fund (NWMyMkt)
68,642,118 shares (cost $68,642,118) ............................................... 68,642,118
Nationwide(R) S&P 500 Index Fund - Class Y (NWIndxFdY)
393,365 shares (cost $4,500,685) ................................................... 4,732,179
Nationwide(R) Separate Account Trust - Small Company Fund (NSATSmCo)
220,702 shares (cost $3,394,909) ................................................... 3,802,703
Neuberger & Berman Equity Funds(R) - Guardian Fund (NBGuard)
1,527,504 shares (cost $40,366,705) ................................................ 39,287,403
Neuberger & Berman Equity Trust(R) - Partners Trust (NBPartTr)
9,241 shares (cost $184,896) ....................................................... 188,789
NIF III - Prestige Balanced Fund - Class Y (PrBalY)
43,714 shares (cost $475,187) ...................................................... 491,784
NIF III - Prestige International Fund - Class Y (PrIntY)
20,592 shares (cost $218,366) ...................................................... 225,684
NIF III - Prestige Large Cap Growth Fund - Class Y (PrLgCapGrY)
71,692 shares (cost $884,237) ...................................................... 937,017
</TABLE>
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<TABLE>
<S> <C>
NIF III - Prestige Large Cap Value Fund - Class Y (PrLgCpValY)
29,345 shares (cost $337,682) ................................................. 337,757
NIF III - Prestige Small Cap Fund - Class Y (PrSmCapY)
43,734 shares (cost $468,677) ................................................. 502,504
Oppenheimer Global Fund - Class A (OppGlob)
14,053 shares (cost $651,826) ................................................. 682,282
Putnam Investors Fund - Class A (PutInvFd)
9,021,230 shares (cost $107,802,619) .......................................... 146,685,195
Putnam Voyager Fund - Class A (PutVoyFd)
12,865,767 shares (cost $217,900,353) ......................................... 322,030,150
SEI Index Funds - S&P 500 Index Portfolio (SEI500lx)
3,844,647 shares (cost $125,535,278) .......................................... 165,012,231
Seligman Growth Fund, Inc. - Class A (SelGroFd)
1,966,061 shares (cost $12,675,371) ........................................... 16,023,399
Short-Term Investments Trust - Treasury Portfolio - Institutional Class (AIMTreas)
7,301,782 shares (cost $7,301,782) ............................................ 7,301,782
T. Rowe Price International Funds, Inc. - International Stock Fund(R)(TRIntStk)
2,228,464 shares (cost $33,451,185) ........................................... 34,808,603
Templeton Foreign Fund - Class I (TemForFd)
4,752,862 shares (cost $47,690,172) ........................................... 48,954,482
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
13,681 shares (cost $546,516) ................................................. 576,660
--------------
Total investments .......................................................... 3,249,872,228
Accounts receivable ................................................................. 41,721
--------------
Total assets ............................................................... 3,249,913,949
ACCOUNTS PAYABLE ....................................................................... 258,971
--------------
CONTRACT OWNERS' EQUITY (NOTE 4) ....................................................... $3,249,654,978
==============
</TABLE>
See accompanying notes to financial statements.
11
<PAGE> 12
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACINCGRO
----------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 9,839,618 8,861,527 31,398 --
Mortality and expense charges (note 2) . -- (3,554,254) -- --
Administration charges (note 2):
Tier I ............................ -- (1,559,810) -- --
Tier II ........................... -- (515,929) -- --
Tier III .......................... -- (265,349) -- --
Tier IV ........................... -- (97,218) -- --
Tier V ............................ -- (147,275) -- --
Variable account fee (notes 2 and 5) .... (11,614,492) (3,311,036) (12,708) --
--------------- --------------- --------------- ------
Net investment activity ............... (1,774,874) (589,344) 18,690 --
Proceeds from mutual fund shares sold ... 261,827,584 201,640,596 286,267 --
Cost of mutual fund shares sold ......... (210,863,120) (166,087,596) (276,510) --
--------------- --------------- --------------- ------
Realized gain (loss) on investments ..... 50,964,464 35,553,000 9,757 --
Change in unrealized gain (loss)
on investments ........................ 248,079,013 274,522,723 393,336 --
--------------- --------------- --------------- ------
Net gain (loss) on investments ........ 299,043,477 310,075,723 403,093 --
--------------- --------------- --------------- ------
Reinvested capital gains ................ 22,353,723 14,551,216 8,847 --
--------------- --------------- --------------- ------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 319,622,326 324,037,595 430,630 --
--------------- --------------- --------------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 271,070,091 250,515,370 1,966,198 --
Transfers between funds ................. -- -- 4,521,112 --
Redemptions ............................. (126,046,881) (119,976,040) (210,826) --
Contingent deferred sales charge (note 2) (4,169) (81) -- --
Adjustments to maintain reserves ........ 113,580 (1,153,503) 908 --
--------------- --------------- --------------- ------
Net equity transactions ............. 145,132,621 129,385,746 6,277,392 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 464,754,947 453,423,341 6,708,022 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 2,784,900,031 1,970,794,247 224,270 --
--------------- --------------- --------------- ------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 3,249,654,978 2,424,217,588 6,932,292 --
=============== =============== =============== ======
</TABLE>
<TABLE>
<CAPTION>
ACTCGRO ACTCINTDIS
----------------------------- ---------------------------
1999 1998 1999 1998
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... -- -- -- --
Mortality and expense charges (note 2) . -- (179,957) -- --
Administration charges (note 2):
Tier I ............................ -- (70,783) -- --
Tier II ........................... -- (32,079) -- --
Tier III .......................... -- (13,379) -- --
Tier IV ........................... -- (6,026) -- --
Tier V ............................ -- (7,154) -- --
Variable account fee (notes 2 and 5) .... (537,051) (160,142) (3,257) --
------------ ------------ ------------ ------------
Net investment activity ............... (537,051) (469,520) (3,257) --
Proceeds from mutual fund shares sold ... 4,180,998 7,185,431 7,694,690 --
Cost of mutual fund shares sold ......... (3,246,594) (5,935,062) (7,517,409) --
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 934,404 1,250,369 177,281 --
Change in unrealized gain (loss)
on investments ........................ 12,969,237 22,041,433 99,661 --
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 13,903,641 23,291,802 276,942 --
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 13,366,590 22,822,282 273,685 --
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 2,804,066 3,066,959 286,316 --
Transfers between funds ................. (973,030) (3,303,926) 2,296,138
Redemptions ............................. (4,742,374) (6,179,317) (10,082) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 4,334 884 (226) --
------------ ------------ ------------ ------------
Net equity transactions ............. (2,907,004) (6,415,400) 2,572,146 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 10,459,586 16,406,882 2,845,831 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 130,887,729 103,038,301 689,272 --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 141,347,315 119,445,183 3,535,103 --
============ ============ ============ ============
</TABLE>
12
<PAGE> 13
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
ACTCULTRA BDFDAM
-------------------------------- ------------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ -- -- 649,167 564,198
Mortality and expense charges (note 2) . -- (392,873) -- (26,239)
Administration charges (note 2):
Tier I ............................ -- (166,590) -- (11,627)
Tier II ........................... -- (57,840) -- (4,000)
Tier III .......................... -- (26,042) -- (2,008)
Tier IV ........................... -- (11,622) -- (734)
Tier V ............................ -- (18,904) -- (941)
Variable account fee (notes 2 and 5) .... (1,485,429) (368,418) (73,745) (22,776)
------------- ------------- ------------- -------------
Net investment activity ............... (1,485,429) (1,042,289) 575,422 495,873
Proceeds from mutual fund shares sold ... 13,754,375 19,594,744 2,375,511 3,259,784
Cost of mutual fund shares sold ......... (7,584,000) (12,860,331) (2,415,903) (3,165,089)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ..... 6,170,375 6,734,413 (40,392) 94,695
Change in unrealized gain (loss)
on investments ........................ 36,929,991 46,157,788 (447,439) (145,677)
------------- ------------- ------------- -------------
Net gain (loss) on investments ........ 43,100,366 52,892,201 (487,831) (50,982)
------------- ------------- ------------- -------------
Reinvested capital gains ................ -- -- -- 79,564
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 41,614,937 51,849,912 87,591 524,455
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 37,130,642 28,723,323 1,162,546 1,390,858
Transfers between funds ................. 11,651,322 (8,542,905) (1,150,730) 492,995
Redemptions ............................. (14,138,356) (12,430,191) (638,942) (1,134,692)
Contingent deferred sales charge (note 2) (1,122) -- -- --
Adjustments to maintain reserves ........ 8,472 4,128 1,223 (637)
------------- ------------- ------------- -------------
Net equity transactions ............. 34,650,958 7,754,355 (625,903) 748,524
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 76,265,895 59,604,267 (538,312) 1,272,979
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 334,432,418 218,492,461 18,447,060 14,869,833
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 410,698,313 278,096,728 17,908,748 16,142,812
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
DRYAPP DRYPREMCAP
------------------------ ------------------------
1999 1998 1999 1998
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................... -- -- -- --
Mortality and expense charges (note 2) -- -- -- --
Administration charges (note 2):
Tier I ........................... -- -- -- --
Tier II .......................... -- -- -- --
Tier III ......................... -- -- -- --
Tier IV .......................... -- -- -- --
Tier V ........................... -- -- -- --
Variable account fee (notes 2 and 5) ... (7,093) -- (602) --
---------- ---------- ---------- ----------
Net investment activity .............. (7,093) -- (602) --
Proceeds from mutual fund shares sold .. 208,930 -- 433,015 --
Cost of mutual fund shares sold ........ (197,960) -- (433,462) --
---------- ---------- ---------- ----------
Realized gain (loss) on investments .... 10,970 -- (447) --
Change in unrealized gain (loss)
on investments ....................... 158,198 -- 23,748 --
---------- ---------- ---------- ----------
Net gain (loss) on investments ....... 169,168 -- 23,301 --
---------- ---------- ---------- ----------
Reinvested capital gains ............... 193 -- -- --
---------- ---------- ---------- ----------
Net increase (decrease) in contract
owners' equity resulting from
operations ....................... 162,268 -- 22,699 --
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ...................... 1,533,514 -- 109,291 --
Transfers between funds ................ 2,368,069 -- 215,534 --
Redemptions ............................ (235,831) -- (6,238) --
Contingent deferred sales charge (note 2 -- -- -- --
Adjustments to maintain reserves ....... (3) -- (6) --
---------- ---------- ---------- ----------
Net equity transactions ............ 3,665,749 -- 318,581 --
NET CHANGE IN CONTRACT OWNERS' EQUITY .... 3,828,017 -- 341,280 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .............................. 245,984 -- 38,725 --
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD .... 4,074,001 -- 380,005 --
========== ========== ========== ==========
</TABLE>
(Continued)
13
<PAGE> 14
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DRY3DCEN EVINCGRO
---------------------------- ----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ -- -- 79,431 84,325
Mortality and expense charges (note 2) .. -- (94,256) -- (6,617)
Administration charges (note 2):
Tier I ............................ -- (40,950) -- (2,761)
Tier II ........................... -- (14,527) -- (830)
Tier III .......................... -- (5,212) -- (380)
Tier IV ........................... -- (3,161) -- (272)
Tier V ............................ -- (4,202) -- (359)
Variable account fee (notes 2 and 5) .... (233,603) (85,955) (12,583) (5,156)
------------ ------------ ------------ ------------
Net investment activity ............... (233,603) (248,263) 66,848 67,950
Proceeds from mutual fund shares sold ... 2,444,260 3,596,174 420,568 652,088
Cost of mutual fund shares sold ......... (1,583,274) (2,502,021) (385,753) (548,412)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 860,986 1,094,153 34,815 103,676
Change in unrealized gain (loss)
on investments ........................ 7,760,639 8,646,546 316,203 (90,212)
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 8,621,625 9,740,699 351,018 13,464
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 8,388,022 9,492,436 417,866 81,414
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 6,043,847 6,166,263 48,032 88,176
Transfers between funds ................. (630,245) (1,208,288) (378,138) (228,477)
Redemptions ............................. (3,272,275) (3,722,716) (62,891) (412,740)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 6,939 376 80 (3)
------------ ------------ ------------ ------------
Net equity transactions ............. 2,148,266 1,235,635 (392,917) (553,044)
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 10,536,288 10,728,071 24,949 (471,630)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 72,154,189 52,572,713 3,272,145 4,042,905
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 82,690,477 63,300,784 3,297,094 3,571,275
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FEDBDFD FEDUSGVT
---------------------------- --------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 18,903 -- 263,398 126,965
Mortality and expense charges (note 2) .. -- -- -- (7,646)
Administration charges (note 2):
Tier I ............................ -- -- -- (3,257)
Tier II ........................... -- -- -- (1,064)
Tier III .......................... -- -- -- (399)
Tier IV ........................... -- -- -- (291)
Tier V ............................ -- -- -- (392)
Variable account fee (notes 2 and 5) .... (1,489) -- (46,996 (6,867)
------------ ------------ ------------ ------------
Net investment activity ............... 17,414 -- 216,402 107,049
Proceeds from mutual fund shares sold ... 2,130,973 -- 4,782,059 3,685,841
Cost of mutual fund shares sold ......... (2,140,974) -- (4,779,245 (3,639,927)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... (10,001) -- 2,814 45,914
Change in unrealized gain (loss)
on investments ........................ (19,931) -- (380,681 (35,344)
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ (29,932) -- (377,867 10,570
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ (12,518) -- (161,465 117,619
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 132,331 -- 1,429,103 534,013
Transfers between funds ................. 246,380 -- 442,755 603,625
Redemptions ............................. (13,444) -- (574,617 (362,265)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 44 -- (694 51
------------ ------------ ------------ ------------
Net equity transactions ............. 365,311 -- 1,297,935 775,424
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 352,793 -- 1,136,470 893,043
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 272,837 -- 10,635,768 4,297,707
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 625,630 -- 11,772,238 5,190,750
============ ============ ============ ============
</TABLE>
14
<PAGE> 15
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FAGROPPA FAHIYLD
--------------------------- ----------------------
1999 1998 1999 1998
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ -- -- 19,525 --
Mortality and expense charges (note 2) . -- -- -- --
Administration charges (note 2):
Tier I ............................ -- -- -- --
Tier II ........................... -- -- -- --
Tier III .......................... -- -- -- --
Tier IV ........................... -- -- -- --
Tier V ............................ -- -- -- --
Variable account fee (notes 2 and 5) .... (2,876) -- (1,570) --
------------ ---------- ---------- ----------
Net investment activity ............... (2,876) -- 17,955 --
Proceeds from mutual fund shares sold ... 156,102 -- 4,944,291 --
Cost of mutual fund shares sold ......... (148,019) -- (4,919,686) --
------------ ---------- ---------- ----------
Realized gain (loss) on investments ..... 8,083 -- 24,605 --
Change in unrealized gain (loss)
on investments ........................ 84,740 -- (8,329) --
------------ ---------- ---------- ----------
Net gain (loss) on investments ........ 92,823 -- 16,276 --
------------ ---------- ---------- ----------
Reinvested capital gains ................ 54 -- -- --
------------ ---------- ---------- ----------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 90,001 -- 34,231 --
------------ ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 626,526 -- 101,138 --
Transfers between funds ................. 732,751 -- 450,585 --
Redemptions ............................. (15,248) -- (19,102) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ (7) -- (51) --
------------ ---------- ---------- ----------
Net equity transactions ............. 1,344,022 -- 532,570 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 1,434,023 -- 566,801 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 87,633 -- 62,514 --
------------ ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 1,521,656 -- 629,315 --
============ ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
FIDCAPINC FIDCONTR
---------------------- ----------------------------
1999 1998 1999 1998
---------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 107,296 119,062 -- --
Mortality and expense charges (note 2) . -- (4,504) -- (567,716)
Administration charges (note 2):
Tier I ............................ -- (1,630) -- (257,062)
Tier II ........................... -- (466) -- (84,899)
Tier III .......................... -- (651) -- (40,425)
Tier IV ........................... -- (216) -- (16,521)
Tier V ............................ -- (146) -- (20,187)
Variable account fee (notes 2 and 5) .... (9,851) (3,747) (2,011,429) (528,576)
---------- ---------- ------------ ------------
Net investment activity ............... 97,445 107,702 (2,011,429) (1,515,386)
Proceeds from mutual fund shares sold ... 213,439 161,820 7,440,467 10,934,922
Cost of mutual fund shares sold ......... (153,943) (106,887) (3,942,766) (6,624,043)
---------- ---------- ------------ ------------
Realized gain (loss) on investments ..... 59,496 54,933 3,497,701 4,310,879
Change in unrealized gain (loss)
on investments ........................ 124,215 39,887 46,622,489 52,583,146
---------- ---------- ------------ ------------
Net gain (loss) on investments ........ 183,711 94,820 50,120,190 56,894,025
---------- ---------- ------------ ------------
Reinvested capital gains ................ 23,505 -- 4,238,225 485,601
---------- ---------- ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 304,661 202,522 52,346,986 55,864,240
---------- ---------- ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... (229) -- 41,398,347 40,669,128
Transfers between funds ................. (115,130) (104,622) 573,177 (10,981,751)
Redemptions ............................. (61,902) (45,576) (17,638,652) (17,720,488)
Contingent deferred sales charge (note 2) -- -- (472) (81)
Adjustments to maintain reserves ........ (2,057) (51) 10,813 (1,021,022)
---------- ---------- ------------ ------------
Net equity transactions ............. (179,318) (150,249) 24,343,213 10,945,786
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 125,343 52,273 76,690,199 66,810,026
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 2,516,385 2,658,020 456,635,655 320,987,870
---------- ---------- ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 2,641,728 2,710,293 533,325,854 387,797,896
========== ========== ============ ============
</TABLE>
(Continued)
15
<PAGE> 16
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FIDEQINC FIDMGIN
------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 2,571,869 3,180,895 354,694 266,931
Mortality and expense charges (note 2) .. -- (623,980) -- (222,583)
Administration charges (note 2):
Tier I ............................ -- (255,098) -- (105,291)
Tier II ........................... -- (88,544) -- (32,343)
Tier III .......................... -- (58,706) -- (16,644)
Tier IV ........................... -- (13,364) -- (5,847)
Tier V ............................ -- (29,581) -- (6,842)
Variable account fee (notes 2 and 5) .... (1,561,177) (560,170) (796,114) (208,946)
------------- ------------- ------------- -------------
Net investment activity ............... 1,010,692 1,551,452 (441,420) (331,565)
Proceeds from mutual fund shares sold ... 28,529,915 7,820,696 4,539,146 5,787,371
Cost of mutual fund shares sold ......... (12,120,569) (3,352,630) (2,403,322) (3,915,333)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ..... 16,409,346 4,468,066 2,135,824 1,872,038
Change in unrealized gain (loss)
on investments ........................ 24,994,455 28,499,976 11,496,633 17,052,524
------------- ------------- ------------- -------------
Net gain (loss) on investments ........ 41,403,801 32,968,042 13,632,457 18,924,562
------------- ------------- ------------- -------------
Reinvested capital gains ................ 5,331,198 4,242,353 11,088,055 3,496,797
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 47,745,691 38,761,847 24,279,092 22,089,794
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 20,260,499 29,048,951 15,217,670 13,753,593
Transfers between funds ................. (26,540,268) (5,330,428) 5,226,413 (2,545,429)
Redemptions ............................. (17,186,637) (14,128,421) (6,897,952) (7,891,274)
Contingent deferred sales charge (note 2) (421) -- (108) --
Adjustments to maintain reserves ........ 10,953 1,226 6,027 16,520
------------- ------------- ------------- -------------
Net equity transactions ............. (23,455,874) 9,591,328 13,552,050 3,333,410
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 24,289,817 48,353,175 37,831,142 25,423,204
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 391,476,242 353,408,823 176,040,685 124,447,078
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 415,766,059 401,761,998 213,871,827 149,870,282
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
FIDOTC FIDPURTN
------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... -- -- 776,915 577,275
Mortality and expense charges (note 2) .. -- (56,312) -- (56,845)
Administration charges (note 2):
Tier I ............................ -- (23,953) -- (27,997)
Tier II ........................... -- (7,847) -- (8,254)
Tier III .......................... -- (3,832) -- (3,757)
Tier IV ........................... -- (1,682) -- (1,311)
Tier V ............................ -- (2,788) -- (1,765)
Variable account fee (notes 2 and 5) .... (233,358) (50,993) (191,545) (54,356)
------------- ------------- ------------- -------------
Net investment activity ............... (233,358) (147,407) 585,370 422,990
Proceeds from mutual fund shares sold ... 5,766,658 6,903,777 2,121,455 1,002,201
Cost of mutual fund shares sold ......... (3,696,747) (6,024,634) (1,621,282) (736,972)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ..... 2,069,911 879,143 500,173 265,229
Change in unrealized gain (loss)
on investments ........................ 7,889,062 4,962,341 868,512 2,751,594
------------- ------------- ------------- -------------
Net gain (loss) on investments ........ 9,958,973 5,841,484 1,368,685 3,016,823
------------- ------------- ------------- -------------
Reinvested capital gains ................ -- -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 9,725,615 5,694,077 1,954,055 3,439,813
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 7,123,396 5,378,266 4,608,888 4,982,878
Transfers between funds ................. 10,389,835 (2,095,746) 123,413 (43,392)
Redemptions ............................. (2,769,717) (2,111,561) (2,163,031) (1,358,768)
Contingent deferred sales charge (note 2) (1) -- -- --
Adjustments to maintain reserves ........ 1,847 (65,270) 871 180
------------- ------------- ------------- -------------
Net equity transactions ............. 14,745,360 1,105,689 2,570,141 3,580,898
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 24,470,975 6,799,766 4,524,196 7,020,711
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 47,287,448 31,504,325 43,829,300 31,672,502
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 71,758,423 38,304,091 48,353,496 38,693,213
============= ============= ============= =============
</TABLE>
16
<PAGE> 17
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
INVDYNAM INVTOTRET
--------------------------- ----------------------------
1999 1998 1999 1998
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ -- -- 7,979 --
Mortality and expense charges (note 2) . -- -- -- --
Administration charges (note 2):
Tier I ............................ -- -- -- --
Tier II ........................... -- -- -- --
Tier III .......................... -- -- -- --
Tier IV ........................... -- -- -- --
Tier V ............................ -- -- -- --
Variable account fee (notes 2 and 5) .... (4,482) -- (1,809) --
------------ ---------- ------------ ----------
Net investment activity ............... (4,482) -- 6,170 --
Proceeds from mutual fund shares sold ... 5,974,525 -- 262,748 --
Cost of mutual fund shares sold ......... (5,737,903) -- (253,795) --
------------ ---------- ------------ ----------
Realized gain (loss) on investments ..... 236,622 -- 8,953 --
Change in unrealized gain (loss)
on investments ........................ 216,978 -- 31,121 --
------------ ---------- ------------ ----------
Net gain (loss) on investments ........ 453,600 -- 40,074 --
------------ ---------- ------------ ----------
Reinvested capital gains ................ -- -- -- --
------------ ---------- ------------ ----------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 449,118 -- 46,244 --
------------ ---------- ------------ ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 755,725 -- 222,950 --
Transfers between funds ................. 2,539,165 -- 674,308 --
Redemptions ............................. (34,049) -- (8,502) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ (10) -- (6) --
------------ ---------- ------------ ----------
Net equity transactions ............. 3,260,831 -- 888,750 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 3,709,949 -- 934,994 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 385,760 -- 26,659 --
------------ ---------- ------------ ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 4,095,709 -- 961,653 --
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
INVCOAM MASFIP
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 749,076 621,007 94,368 48,577
Mortality and expense charges (note 2) . -- (127,492) -- (5,072)
Administration charges (note 2):
Tier I ............................ -- (61,970) -- (2,754)
Tier II ........................... -- (20,869) -- (559)
Tier III .......................... -- (8,660) -- (163)
Tier IV ........................... -- (2,452) -- (129)
Tier V ............................ -- (3,596) -- (216)
Variable account fee (notes 2 and 5) .... (418,634) (118,749) (25,186) (5,637)
------------ ------------ ------------ ------------
Net investment activity ............... 330,442 277,219 69,182 34,047
Proceeds from mutual fund shares sold ... 2,348,402 4,174,436 1,087,579 583,411
Cost of mutual fund shares sold ......... (1,358,009) (2,508,333) (1,126,190) (573,360)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 990,393 1,666,103 (38,611) 10,051
Change in unrealized gain (loss)
on investments ........................ 9,152,798 6,471,724 (133,592) 49,245
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 10,143,191 8,137,827 (172,203) 59,296
------------ ------------ ------------ ------------
Reinvested capital gains ................ 926,774 840,003 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 11,400,407 9,255,049 (103,021) 93,343
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 7,119,942 7,529,270 610,373 478,859
Transfers between funds ................. 162,925 110,599 92,454 907,937
Redemptions ............................. (4,133,825) (5,658,965) (327,072) (147,121)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 3,311 298 415 (1)
------------ ------------ ------------ ------------
Net equity transactions ............. 3,152,353 1,981,202 376,170 1,239,674
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 14,552,760 11,236,251 273,149 1,333,017
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 94,504,873 72,152,047 6,005,900 2,695,678
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 109,057,633 83,388,298 6,279,049 4,028,695
============ ============ ============ ============
</TABLE>
(Continued)
17
<PAGE> 18
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
MFSGRSTK MFSGROPP
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ -- -- -- --
Mortality and expense charges (note 2) . -- (23,366) -- (28,712)
Administration charges (note 2):
Tier I ............................ -- (9,627) -- (12,308)
Tier II ........................... -- (3,392) -- (4,337)
Tier III .......................... -- (2,067) -- (2,562)
Tier IV ........................... -- (592) -- (769)
Tier V ............................ -- (1,051) -- (1,026)
Variable account fee (notes 2 and 5) .... (71,378) (20,928) (76,048) (25,686)
------------ ------------ ------------ ------------
Net investment activity ............... (71,378) (61,023) (76,048) (75,400)
Proceeds from mutual fund shares sold ... 774,172 868,954 1,281,255 691,534
Cost of mutual fund shares sold ......... (490,154) (691,232) (862,007) (463,329)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 284,018 177,722 419,248 228,205
Change in unrealized gain (loss)
on investments ........................ 1,814,817 2,874,464 630,081 2,875,767
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 2,098,835 3,052,186 1,049,329 3,103,972
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- 481,649 197,644
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 2,027,457 2,991,163 1,454,930 3,226,216
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 594,356 653,982 128,341 131,682
Transfers between funds ................. (337,915) (284,778) (311,345) (102,896)
Redemptions ............................. (644,459) (751,845) (974,833) (560,863)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 516 106 1,165 (90,451)
------------ ------------ ------------ ------------
Net equity transactions ............. (387,502) (382,535) (1,156,672) (622,528)
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 1,639,955 2,608,628 298,258 2,603,688
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 17,484,415 12,815,513 19,223,547 15,959,245
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 19,124,370 15,424,141 19,521,805 18,562,933
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MFSHIINC MSIEQGROB
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 850,513 696,255 -- --
Mortality and expense charges (note 2) . -- (27,020) -- --
Administration charges (note 2):
Tier I ............................ -- (11,010) -- --
Tier II ........................... -- (3,623) -- --
Tier III .......................... -- (2,066) -- --
Tier IV ........................... -- (722) -- --
Tier V ............................ -- (1,503) -- --
Variable account fee (notes 2 and 5) .... (73,987) (24,516) (826) --
------------ ------------ ------------ ------------
Net investment activity ............... 776,526 625,795 (826) --
Proceeds from mutual fund shares sold ... 7,706,200 6,295,734 136,282 --
Cost of mutual fund shares sold ......... (8,246,177) (5,973,347) (126,660) --
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... (539,977) 322,387 9,622 --
Change in unrealized gain (loss)
on investments ........................ 666,938 (93,216) 30,280 --
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 126,961 229,171 39,902 --
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 903,487 854,966 39,076 --
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 1,193,245 1,946,586 253,892 --
Transfers between funds ................. (2,195,326) 1,292,398 186,374 --
Redemptions ............................. (931,448) (1,127,215) (9,935) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ (283) (4,501) (150) --
------------ ------------ ------------ ------------
Net equity transactions ............. (1,933,812) 2,107,268 430,181 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... (1,030,325) 2,962,234 469,257 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 18,888,749 14,387,298 27,125 --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 17,858,424 17,349,532 496,382 --
============ ============ ============ ============
</TABLE>
18
<PAGE> 19
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NAATAGGR NAATCONS
--------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 1,828 205 16,531 13
Mortality and expense charges (note 2) . -- (473) -- (21)
Administration charges (note 2):
Tier I ............................ -- (175) -- (2)
Tier II ........................... -- (97) -- (1)
Tier III .......................... -- (7) -- --
Tier IV ........................... -- (6) -- --
Tier V ............................ -- (39) -- (5)
Variable account fee (notes 2 and 5) .... (6,076) (1,423) (3,348) (173)
----------- ----------- ----------- -----------
Net investment activity ............... (4,248) (2,015) 13,183 (189)
Proceeds from mutual fund shares sold ... 369,529 225,247 724,426 174,248
Cost of mutual fund shares sold ......... (364,908) (213,137) (685,707) (173,748)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ..... 4,621 12,110 38,719 500
Change in unrealized gain (loss)
on investments ........................ 164,614 11,515 (19,365) 1,247
----------- ----------- ----------- -----------
Net gain (loss) on investments ........ 169,235 23,625 19,354 1,747
----------- ----------- ----------- -----------
Reinvested capital gains ................ 102,825 -- 13,965 --
----------- ----------- ----------- -----------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 267,812 21,610 46,502 1,558
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 1,115,725 634,653 369,368 53,497
Transfers between funds ................. (289,321) 539,036 409,940 47,987
Redemptions ............................. (125,968) (7,486) (38,806) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 304 3,400 104 1
----------- ----------- ----------- -----------
Net equity transactions ............. 700,740 1,169,603 740,606 101,485
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 968,552 1,191,213 787,108 103,043
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 2,501,100 -- 989,837 --
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 3,469,652 1,191,213 1,776,945 103,043
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NAATMOD NAATMODAGG
--------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 14,846 292 11,008 884
Mortality and expense charges (note 2) . -- (144) -- (519)
Administration charges (note 2):
Tier I ............................ -- (89) -- (353)
Tier II ........................... -- (22) -- (42)
Tier III .......................... -- (2) -- (31)
Tier IV ........................... -- (1) -- (1)
Tier V ............................ -- (3) -- (6)
Variable account fee (notes 2 and 5) .... (7,612) (770) (7,071) (1,284)
----------- ----------- ----------- -----------
Net investment activity ............... 7,234 (739) 3,937 (1,352)
Proceeds from mutual fund shares sold ... 381,104 18,549 302,909 22,264
Cost of mutual fund shares sold ......... (364,919) (17,287) (285,972) (20,202)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ..... 16,185 1,262 16,937 2,062
Change in unrealized gain (loss)
on investments ........................ 109,494 10,551 126,752 36,079
----------- ----------- ----------- -----------
Net gain (loss) on investments ........ 125,679 11,813 143,689 38,141
----------- ----------- ----------- -----------
Reinvested capital gains ................ 45,894 -- 74,776 --
----------- ----------- ----------- -----------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 178,807 11,074 222,402 36,789
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 1,073,717 350,282 1,003,200 606,199
Transfers between funds ................. (62,321) 337,340 (54,721) 428,474
Redemptions ............................. (71,161) (26,781) (70,803) (5,257)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 74 (50) 228 (8)
----------- ----------- ----------- -----------
Net equity transactions ............. 940,309 660,791 877,904 1,029,408
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 1,119,116 671,865 1,100,306 1,066,197
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 2,185,401 -- 2,305,950 --
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 3,304,517 671,865 3,406,256 1,066,197
=========== =========== =========== ===========
</TABLE>
(Continued)
19
<PAGE> 20
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NAATMODCON NWFUND
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 11,489 199 760,012 642,116
Mortality and expense charges (note 2) . -- (80) -- (181,761)
Administration charges (note 2):
Tier I ............................ -- (32) -- (81,359)
Tier II ........................... -- (22) -- (24,501)
Tier III .......................... -- (7) -- (13,841)
Tier IV ........................... -- -- -- (5,294)
Tier V ............................ -- (1) -- (7,330)
Variable account fee (notes 2 and 5) .... (3,520) (351) (618,773) (191,516)
------------ ------------ ------------ ------------
Net investment activity ............... 7,969 (294) 141,239 136,514
Proceeds from mutual fund shares sold ... 639,586 79,479 11,154,686 5,851,107
Cost of mutual fund shares sold ......... (598,801) (77,847) (5,478,320) (3,043,284)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 40,785 1,632 5,676,366 2,807,823
Change in unrealized gain (loss)
on investments ........................ (5,184) 3,924 8,739,767 14,303,918
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 35,601 5,556 14,416,133 17,111,741
------------ ------------ ------------ ------------
Reinvested capital gains ................ 17,005 -- -- 4,917,925
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 60,575 5,262 14,557,372 22,166,180
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 348,424 116,851 31,476,927 23,334,970
Transfers between funds ................. 152,998 233,918 (12,432,465) 18,063,894
Redemptions ............................. (106,530) (6,522) (10,284,791) (8,408,977)
Contingent deferred sales charge (note 2) -- -- (583) --
Adjustments to maintain reserves ........ 127 -- 14,250 966
------------ ------------ ------------ ------------
Net equity transactions ............. 395,019 344,247 8,773,338 32,990,853
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 455,594 349,509 23,330,710 55,157,033
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 979,753 -- 194,495,092 89,106,304
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 1,435,347 349,509 217,825,802 144,263,337
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NWGROFD NWMYMKT
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... -- 10,180 1,424,900 1,234,959
Mortality and expense charges (note 2) . -- (13,561) -- (81,562)
Administration charges (note 2):
Tier I ............................ -- (5,900) -- (30,154)
Tier II ........................... -- (2,556) -- (9,901)
Tier III .......................... -- (869) -- (5,455)
Tier IV ........................... -- (216) -- (3,463)
Tier V ............................ -- (547) -- (5,380)
Variable account fee (notes 2 and 5) .... (34,899) (12,022) (182,780) (67,435)
------------ ------------ ------------ ------------
Net investment activity ............... (34,899) (25,491) 1,242,120 1,031,609
Proceeds from mutual fund shares sold ... 578,924 554,888 40,707,377 28,904,007
Cost of mutual fund shares sold ......... (331,332) (354,644) (40,707,377) (28,904,007)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 247,592 200,244 -- --
Change in unrealized gain (loss)
on investments ........................ 594,310 918,162 -- --
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 841,902 1,118,406 -- --
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- 291,329 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 807,003 1,384,244 1,242,120 1,031,609
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 159,821 178,340 3,640,004 3,392,800
Transfers between funds ................. (67,346) (263,751) 6,714,129 7,416,464
Redemptions ............................. (558,638) (356,603) (4,628,029) (6,407,716)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 242 32 17,989 1,087
------------ ------------ ------------ ------------
Net equity transactions ............. (465,921) (441,982) 5,744,093 4,402,635
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 341,082 942,262 6,986,213 5,434,244
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 8,603,832 7,669,126 61,394,874 44,623,765
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 8,944,914 8,611,388 68,381,087 50,058,009
============ ============ ============ ============
</TABLE>
20
<PAGE> 21
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NWINDXFDY NSATSMCO
-------------------------- ---------------------------
1999 1998 1999 1998
----------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 14,841 -- -- --
Mortality and expense charges (note 2) . -- -- -- (1,123)
Administration charges (note 2):
Tier I ............................ -- -- -- (449)
Tier II ........................... -- -- -- (280)
Tier III .......................... -- -- -- (45)
Tier IV ........................... -- -- -- (26)
Tier V ............................ -- -- -- (41)
Variable account fee (notes 2 and 5) .... (8,133) -- (10,206) (2,427)
----------- ---------- ----------- -----------
Net investment activity ............... 6,708 -- (10,206) (4,391)
Proceeds from mutual fund shares sold ... 1,516,556 -- 1,739,882 2,786,575
Cost of mutual fund shares sold ......... (1,420,076) -- (1,611,791) (2,742,100)
----------- ---------- ----------- -----------
Realized gain (loss) on investments ..... 96,480 -- 128,091 44,475
Change in unrealized gain (loss)
on investments ........................ 222,681 -- 136,516 (41,036)
----------- ---------- ----------- -----------
Net gain (loss) on investments ........ 319,161 -- 264,607 3,439
----------- ---------- ----------- -----------
Reinvested capital gains ................ -- -- -- --
----------- ---------- ----------- -----------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 325,869 -- 254,401 (952)
----------- ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 1,956,337 -- 846,721 1,026,173
Transfers between funds ................. 2,277,778 -- (315,978) 875,454
Redemptions ............................. (142,296) -- (162,340) (42,465)
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 1 -- 1,007 53
----------- ---------- ----------- -----------
Net equity transactions ............. 4,091,820 -- 369,410 1,859,215
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 4,417,689 -- 623,811 1,858,263
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 314,488 -- 3,178,896 --
----------- ---------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 4,732,177 -- 3,802,707 1,858,263
=========== ========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NBGUARD NBPARTTR
--------------------------- ----------------------------
1999 1998 1999 1998
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 124,179 107,684 -- --
Mortality and expense charges (note 2) . -- (71,447) -- --
Administration charges (note 2):
Tier I ............................ -- (30,092) -- --
Tier II ........................... -- (10,176) -- --
Tier III .......................... -- (4,330) -- --
Tier IV ........................... -- (2,006) -- --
Tier V ............................ -- (3,918) -- --
Variable account fee (notes 2 and 5) .... (149,848) (62,370) (478) --
----------- ----------- ----------- ------------
Net investment activity ............... (25,669) (76,655) (478) --
Proceeds from mutual fund shares sold ... 6,080,665 3,608,524 195,708 --
Cost of mutual fund shares sold ......... (6,163,875) (2,996,599) (177,522) --
----------- ----------- ----------- ------------
Realized gain (loss) on investments ..... (83,210) 611,925 18,186 --
Change in unrealized gain (loss)
on investments ........................ 5,335,070 4,365,873 4,197 --
----------- ----------- ----------- ------------
Net gain (loss) on investments ........ 5,251,860 4,977,798 22,383 --
----------- ----------- ----------- ------------
Reinvested capital gains ................ -- -- -- --
----------- ----------- ----------- ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 5,226,191 4,901,143 21,905 --
----------- ----------- ----------- ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 4,042,799 7,218,308 34,782 --
Transfers between funds ................. (7,137,355) (4,352,890) 82,994 --
Redemptions ............................. (1,896,901) (2,728,254) (620) --
Contingent deferred sales charge (note 2) (55) -- -- --
Adjustments to maintain reserves ........ 1,321 352 (2) --
----------- ----------- ----------- ------------
Net equity transactions ............. (4,990,191) 137,516 117,154 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 236,000 5,038,659 139,059 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 39,051,746 40,059,033 49,728 --
----------- ----------- ----------- ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 39,287,746 45,097,692 188,787 --
=========== =========== =========== ============
</TABLE>
21
<PAGE> 22
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRBALY PRINTY
----------------------- -----------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 4,215 -- 1,377 --
Mortality and expense charges (note 2) . -- -- -- --
Administration charges (note 2):
Tier I ............................ -- -- -- --
Tier II ........................... -- -- -- --
Tier III .......................... -- -- -- --
Tier IV ........................... -- -- -- --
Tier V ............................ -- -- -- --
Variable account fee (notes 2 and 5) .... (882) -- (432) --
--------- --------- --------- ---------
Net investment activity ............... 3,333 -- 945 --
Proceeds from mutual fund shares sold ... 30,732 -- 44,724 --
Cost of mutual fund shares sold ......... (29,169) -- (45,117) --
--------- --------- --------- ---------
Realized gain (loss) on investments ..... 1,563 -- (393) --
Change in unrealized gain (loss)
on investments ........................ 15,035 -- 7,267 --
--------- --------- --------- ---------
Net gain (loss) on investments ........ 16,598 -- 6,874 --
--------- --------- --------- ---------
Reinvested capital gains ................ -- -- -- --
--------- --------- --------- ---------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 19,931 -- 7,819 --
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 168,260 -- 78,728 --
Transfers between funds ................. 239,742 -- 115,163 --
Redemptions ............................. (8,002) -- (876) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ (4) -- (3) --
--------- --------- --------- ---------
Net equity transactions ............. 399,996 -- 193,012 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 419,927 -- 200,831 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 71,853 -- 24,850 --
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 491,780 -- 225,681 --
========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
PRLGCAPGRY PRLGCPVALY
----------------------- -----------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... -- -- 666 --
Mortality and expense charges (note 2) . -- -- -- --
Administration charges (note 2):
Tier I ............................ -- -- -- --
Tier II ........................... -- -- -- --
Tier III .......................... -- -- -- --
Tier IV ........................... -- -- -- --
Tier V ............................ -- -- -- --
Variable account fee (notes 2 and 5) .... (1,079) -- (500) --
--------- --------- --------- ---------
Net investment activity ............... (1,079) -- 166 --
Proceeds from mutual fund shares sold ... 113,386 -- 270,247 --
Cost of mutual fund shares sold ......... (100,687) -- (247,534) --
--------- --------- --------- ---------
Realized gain (loss) on investments ..... 12,699 -- 22,713 --
Change in unrealized gain (loss)
on investments ........................ 49,982 -- (261) --
--------- --------- --------- ---------
Net gain (loss) on investments ........ 62,681 -- 22,452 --
--------- --------- --------- ---------
Reinvested capital gains ................ -- -- -- --
--------- --------- --------- ---------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 61,602 -- 22,618 --
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 368,275 -- 105,178 --
Transfers between funds ................. 432,792 -- 173,159 --
Redemptions ............................. (8,035) -- (1,485) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ 286 -- (3) --
--------- --------- --------- ---------
Net equity transactions ............. 793,318 -- 276,849 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 854,920 -- 299,467 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 82,384 -- 38,285 --
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 937,304 -- 337,752 --
========= ========= ========= =========
</TABLE>
22
<PAGE> 23
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
PRSMCAPY OPPGLOB
--------------------------- ----------------------------
1999 1998 1999 1998
------------ ---------- ------------ ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 682 -- -- --
Mortality and expense charges (note 2) . -- -- -- --
Administration charges (note 2):
Tier I ............................ -- -- -- --
Tier II ........................... -- -- -- --
Tier III .......................... -- -- -- --
Tier IV ........................... -- -- -- --
Tier V ............................ -- -- -- --
Variable account fee (notes 2 and 5) .... (746) -- (885) --
------------ ---------- ------------ ----------
Net investment activity ............... (64) -- (885) --
Proceeds from mutual fund shares sold ... 167,636 -- 343,497 --
Cost of mutual fund shares sold ......... (165,455) -- (319,097) --
------------ ---------- ------------ ----------
Realized gain (loss) on investments ..... 2,181 -- 24,400 --
Change in unrealized gain (loss)
on investments ........................ 32,114 -- 30,216 --
------------ ---------- ------------ ----------
Net gain (loss) on investments ........ 34,295 -- 54,616 --
------------ ---------- ------------ ----------
Reinvested capital gains ................ -- -- -- --
------------ ---------- ------------ ----------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 34,231 -- 53,731 --
------------ ---------- ------------ ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 162,625 -- 156,756 --
Transfers between funds ................. 235,211 -- 472,926 --
Redemptions ............................. (5,339) -- (14,016) --
Contingent deferred sales charge (note 2) -- -- -- --
Adjustments to maintain reserves ........ (105) -- 77 --
------------ ---------- ------------ ----------
Net equity transactions ............. 392,392 -- 615,743 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 426,623 -- 669,474 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 75,762 -- 12,885 --
------------ ---------- ------------ ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 502,385 -- 682,359 --
============ ========== ============ ==========
</TABLE>
<TABLE>
<CAPTION>
PUTINVFD PUTVOYFD
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... -- -- -- --
Mortality and expense charges (note 2) . -- (115,931) -- (360,379)
Administration charges (note 2):
Tier I ............................ -- (58,129) -- (166,907)
Tier II ........................... -- (13,427) -- (51,949)
Tier III .......................... -- (8,862) -- (23,873)
Tier IV ........................... -- (2,260) -- (10,379)
Tier V ............................ -- (4,242) -- (13,276)
Variable account fee (notes 2 and 5) .... (546,656) (121,036) (1,198,863) (336,809)
------------ ------------ ------------ ------------
Net investment activity ............... (546,656) (323,887) (1,198,863) (963,572)
Proceeds from mutual fund shares sold ... 7,751,366 4,530,581 7,466,900 6,427,577
Cost of mutual fund shares sold ......... (4,037,191) (2,994,709) (3,653,005) (3,090,190)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... 3,714,175 1,535,872 3,813,895 3,337,387
Change in unrealized gain (loss)
on investments ........................ 9,012,934 13,596,693 35,901,921 31,238,182
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 12,727,109 15,132,565 39,715,816 34,575,569
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 12,180,453 14,808,678 38,516,953 33,611,997
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 14,731,478 10,107,090 24,884,411 26,393,477
Transfers between funds ................. 3,654,573 9,031,760 (7,944,893) (2,130,860)
Redemptions ............................. (7,052,633) (3,487,916) (11,843,111) (11,233,807)
Contingent deferred sales charge (note 2) (442) -- (218) --
Adjustments to maintain reserves ........ 3,013 (807) 8,424 (492)
------------ ------------ ------------ ------------
Net equity transactions ............. 11,335,989 15,650,127 5,104,613 13,028,318
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 23,516,442 30,458,805 43,621,566 46,640,315
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 123,169,328 59,923,257 278,412,506 200,390,725
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 146,685,770 90,382,062 322,034,072 247,031,040
============ ============ ============ ============
</TABLE>
(Continued)
23
<PAGE> 24
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
SEI500IX SELGROFD
------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 721,374 458,878 -- --
Mortality and expense charges (note 2) . -- (118,601) -- (17,703)
Administration charges (note 2):
Tier I ............................ -- (54,008) -- (7,977)
Tier II ........................... -- (14,709) -- (2,228)
Tier III .......................... -- (9,909) -- (1,141)
Tier IV ........................... -- (3,207) -- (500)
Tier V ............................ -- (4,702) -- (871)
Variable account fee (notes 2 and 5) .... (586,535) (126,155) (59,566) (16,280)
------------- ------------- ------------- -------------
Net investment activity ............... 134,839 127,587 (59,566) (46,700)
Proceeds from mutual fund shares sold ... 4,605,106 5,889,475 1,043,975 1,526,073
Cost of mutual fund shares sold ......... (2,780,161) (4,045,787) (734,180) (1,114,190)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ..... 1,824,945 1,843,688 309,795 411,883
Change in unrealized gain (loss)
on investments ........................ 14,495,422 9,787,189 1,122,894 1,580,524
------------- ------------- ------------- -------------
Net gain (loss) on investments ........ 16,320,367 11,630,877 1,432,689 1,992,407
------------- ------------- ------------- -------------
Reinvested capital gains ................ -- -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 16,455,206 11,758,464 1,373,123 1,945,707
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 23,049,930 21,261,107 1,197,894 810,629
Transfers between funds ................. 6,573,016 9,080,966 (120,915) (172,500)
Redemptions ............................. (6,777,718) (5,516,740) (567,680) (614,067)
Contingent deferred sales charge (note 2) (582) -- -- --
Adjustments to maintain reserves ........ 4,753 (11) 112 51
------------- ------------- ------------- -------------
Net equity transactions ............. 22,849,399 24,825,322 509,411 24,113
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 39,304,605 36,583,786 1,882,534 1,969,820
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 125,708,542 57,955,034 14,140,971 9,706,959
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 165,013,147 94,538,820 16,023,505 11,676,779
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
AIMTREAS TRINTSTK
------------------------------- -------------------------------
1999 1998 1999 1998
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... 157,138 120,627 -- --
Mortality and expense charges (note 2) . -- (7,334) -- (49,478)
Administration charges (note 2):
Tier I ............................ -- (2,250) -- (20,181)
Tier II ........................... -- (591) -- (6,757)
Tier III .......................... -- (618) -- (3,664)
Tier IV ........................... -- (880) -- (1,371)
Tier V ............................ -- (260) -- (2,722)
Variable account fee (notes 2 and 5) .... (26,340) (5,705) (129,394) (43,084)
------------- ------------- ------------- -------------
Net investment activity ............... 130,798 102,989 (129,394) (127,257)
Proceeds from mutual fund shares sold ... 19,876,541 23,011,970 28,647,168 27,718,910
Cost of mutual fund shares sold ......... (19,876,542) (23,011,970) (26,646,562) (27,349,019)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ..... (1) -- 2,000,606 369,891
Change in unrealized gain (loss)
on investments ........................ -- -- (434,460) 3,545,044
------------- ------------- ------------- -------------
Net gain (loss) on investments ........ (1) -- 1,566,146 3,914,935
------------- ------------- ------------- -------------
Reinvested capital gains ................ 758 -- -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 131,555 102,989 1,436,752 3,787,678
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 341,133 311,409 3,032,840 3,644,205
Transfers between funds ................. 1,291,247 406,103 (1,637,670) (2,458,390)
Redemptions ............................. (684,737) (1,345,517) (1,463,377) (1,659,493)
Contingent deferred sales charge (note 2) -- -- (82) --
Adjustments to maintain reserves ........ (465) (885) 563 282
------------- ------------- ------------- -------------
Net equity transactions ............. 947,178 (628,890) (67,726) (473,396)
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 1,078,733 (525,901) 1,369,026 3,314,282
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 6,222,259 4,162,607 33,439,363 28,674,990
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... 7,300,992 3,636,706 34,808,389 31,989,272
============= ============= ============= =============
</TABLE>
24
<PAGE> 25
NACO VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
TEMFORFD WPEMGRO
----------------------------- -----------------------------
1999 1998 1999 1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ -- -- -- --
Mortality and expense charges (note 2) . -- (82,947) -- --
Administration charges (note 2):
Tier I ............................ -- (37,085) -- --
Tier II ........................... -- (13,197) -- --
Tier III .......................... -- (5,742) -- --
Tier IV ........................... -- (1,897) -- --
Tier V ............................ -- (3,279) -- --
Variable account fee (notes 2 and 5) .... (134,246) (70,578) (798) --
------------ ------------ ------------ ------------
Net investment activity ............... (134,246) (214,725) (798) --
Proceeds from mutual fund shares sold ... 14,551,539 7,112,204 529,133 --
Cost of mutual fund shares sold ......... (15,753,171) (6,317,934) (516,336) --
------------ ------------ ------------ ------------
Realized gain (loss) on investments ..... (1,201,632) 794,270 12,797 --
Change in unrealized gain (loss)
on investments ........................ 10,123,926 522,872 29,011 --
------------ ------------ ------------ ------------
Net gain (loss) on investments ........ 8,922,294 1,317,142 41,808 --
------------ ------------ ------------ ------------
Reinvested capital gains ................ -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract
owners' equity resulting from
operations ........................ 8,788,048 1,102,417 41,010 --
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ....................... 3,744,424 6,532,593 119,389 --
Transfers between funds ................. (3,439,534) (5,717,921) 416,268 --
Redemptions ............................. (1,789,175) (2,384,421) (21,574) --
Contingent deferred sales charge (note 2) (83) -- -- --
Adjustments to maintain reserves ........ 5,504 693 (30) --
------------ ------------ ------------ ------------
Net equity transactions ............. (1,478,864) (1,569,056) 514,053 --
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 7,309,184 (466,639) 555,063 --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 41,645,492 48,520,128 21,567 --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ..... $ 48,954,676 48,053,489 576,630 --
============ ============ ============ ============
</TABLE>
See accompanying notes to financial statements.
25
<PAGE> 26
NACo VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999 AND 1998
(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:Income & Growth Fund (ACIncGro)
American Century:Twentieth Century Growth Fund (ACTCGro) (not
available for contracts issued on or after May 1, 1997)
American Century:Twentieth Century International Discovery Fund
(ACTCIntDis)
American Century:Twentieth Century Ultra Fund, Inc.(ACTCUltra)
The Bond Fund of America(SM), Inc.(BdFdAm)
(only available for certain contracts issued beginning
July 1, 1994)
Brown Capital Management - Small Company Fund
Dreyfus Appreciation Fund, Inc.(DryApp)
Dreyfus Premier Midcap Stock - Class A (DryPreMCap)
The Dreyfus Third Century Fund, Inc.(Dry3dCen)
Evergreen Income and Growth Fund - Class Y (EvIncGro)
(not available for contracts issued on or after October 1, 1993)
Federated Investment Series Fund, Inc.- Federated Bond Fund -
Class F (FedBdFd)
Federated U.S.Government Securities Fund:2-5 Years - Institutional
Shares (FedUSGvt)
Fidelity Advisor Growth Opportunities Fund - Class A (FAGrOppA)
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
Fidelity Capital & Income Fund (FidCapInc) (formerly Fidelity High
Income Fund) (not available for contracts issued on or after
January 1, 1987)
Fidelity Contrafund (FidContr) (not available for contracts issued
on or after June 30, 1998)
Fidelity Equity-Income Fund (FidEqInc)
Fidelity Magellan((R)) Fund (FidMgln) (not available for contracts
issued on or after October 1, 1997)
Fidelity OTC Portfolio (FidOTC)
Fidelity Puritan((R)) Fund (FidPurtn)
INVESCO Dynamics Fund, Inc.(InvDynam)
INVESCO Total Return Fund (InvTotRet)
26
<PAGE> 27
The Investment Company of America(R) (InvCoAm)
(only available for certain contracts issued beginning July 1, 1994)
MAS Funds - Fixed Income Portfolio (MASFIP)
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk) (not
available for contracts issued on or after May 1, 1997)
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)
Morgan Stanley Institutional Fund, Inc.- Equity Growth Portfolio - Class B
(MSIEqGroB)
Portfolios of the Nationwide Asset Allocation Trust (NAAT)
(managed for a fee by an affiliated investment advisor)
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)
Funds of the Nationwide Investing Foundation II
(managed for a fee by an affiliated investment advisor)
Nationwide(R) Fund - Class D (NWFund)
Nationwide(R) Growth Fund - Class D (NWGroFd)
(not available for contracts issued on or after October 1, 1993)
Nationwide(R) Money Market Fund (NWMyMkt)
Nationwide(R) S&P 500 Index Fund - Class Y (NWIndxFdY)
Nationwide(R) Separate Account Trust - Income Fund (NSATInc) (managed for
a fee by an affiliated investment advisor)
Nationwide(R) Separate Account Trust - Small Company Fund (NSATSmCo)
(managed for a fee by an affiliated investment advisor)
Funds of the Nationwide Investing Foundation III (NIFIII)
(managed for a fee by an affiliated investment advisor)
NIF III - Prestige Balanced Fund - Class Y (PrBalY)
NIF III - Prestige International Fund - Class Y (PrIntY)
NIF III - Prestige Large Cap Growth Fund - Class Y (PrLgCapGrY)
NIF III - Prestige Large Cap Value Fund - Class Y (PrLgCpValY)
NIF III - Prestige Small Cap Fund - Class Y (PrSmCapY)
Neuberger & Berman Equity Funds(R) - Guardian Fund (NBGuard)
Neuberger & Berman Equity Trust(R) - Partners Trust (NBPartTr)
Oppenheimer Global Fund - Class A (OppGlob)
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)
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
All of the above funds were being utilized as of June 30, 1999, except the Brown
Capital Management Small Company Fund (BRSC) and Nationwide(R) Separate
Account Trust - Income Fund (NSATInc).
27
<PAGE> 28
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, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the 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.
(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, as follows:
<TABLE>
<CAPTION>
Expense Administration
Tier Assets (Millions) Charge
--------- -------------- ------------
<S> <C> <C>
I Up to $10 .45%
II Over $10 to $25 .40%
III Over $25 to $50 .30%
IV Over $50 to $150 .20%
V Over $150 .15%
</TABLE>
The administration charge is determined using the December 31 asset balance
and is effective at the next expense tier on the following May 1.
28
<PAGE> 29
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 (see summary of variable account fees at Note 5).
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.
29
<PAGE> 30
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1999.
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
American Century: Income &
Growth Fund ........................ 0.80% 2,283,381 $ 1.199221 $ 2,738,278 9%
0.70% 1,248,747 1.199973 1,498,463 9%
0.55% 1,031,771 1.201101 1,239,261 9%
0.40% 312,738 1.202230 375,983 9%
0.30% 15,191 1.202983 18,275 10%
0.25% 149,293 1.203360 179,653 10%
0.15% 732,804 1.204113 882,379 10%
American Century:
Twentieth Century Growth Fund ...... 0.95% 5,798,265 8.728775 50,611,751 10%
0.90% 3,372,803 8.742590 29,487,034 10%
0.80% 2,996,503 8.770283 26,280,179 10%
0.65% 1,355,267 8.807591 11,936,637 10%
0.50% 357,197 8.755025 3,127,269 11%
0.40% 2,233,595 8.831538 19,726,079 11%
0.30% 20,183 8.837434 178,366 11%
American Century: Twentieth Century
International Discovery Fund ....... 0.80% 452,199 1.297779 586,854 20%
0.70% 337,468 1.298592 438,233 20%
0.55% 363,245 1.299812 472,150 20%
0.40% 981,695 1.301033 1,277,218 20%
0.25% 97,909 1.302256 127,503 20%
0.15% 485,887 1.303071 633,145 20%
American Century:
Twentieth Century Ultra Fund ....... 0.95% 63,170,030 2.592255 163,752,826 12%
0.90% 29,505,750 2.596358 76,607,490 12%
0.80% 24,234,011 2.604582 63,119,469 12%
0.65% 10,948,283 2.615661 28,636,997 12%
0.50% 3,663,547 2.600048 9,525,398 12%
0.40% 26,009,335 2.622772 68,216,556 12%
0.30% 319,897 2.624522 839,577 12%
The Bond Fund of AmericaSM, Inc. ...... 0.95% 2,938,822 2.439648 7,169,691 0%
0.90% 1,709,636 2.443566 4,177,608 0%
0.80% 919,556 2.451413 2,254,212 0%
0.65% 626,610 2.461979 1,542,701 1%
0.50% 146,571 2.447235 358,694 1%
0.40% 974,484 2.468837 2,405,842 1%
Dreyfus Appreciation Fund, Inc. ....... 0.80% 1,148,768 1.149847 1,320,907 6%
0.70% 837,073 1.150568 963,109 7%
0.55% 440,012 1.151650 506,740 7%
0.40% 274,100 1.152733 315,964 7%
0.30% 10,001 1.153455 11,536 7%
0.25% 60,472 1.153816 69,774 7%
0.15% 767,380 1.154540 885,971 7%
</TABLE>
30
<PAGE> 31
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
Dreyfus Premier Midcap Stock -
Class A ............................. 0.80% 149,924 1.168193 175,140 3%
0.70% 45,230 1.168925 52,870 3%
0.55% 14,660 1.170024 17,153 3%
0.40% 7,469 1.171124 8,747 3%
0.30% 198 1.171857 232 3%
0.15% 107,304 1.172959 125,863 3%
The Dreyfus Third Century Fund, Inc. ... 0.80% 6,560,645 5.088727 33,385,331 11%
0.70% 3,436,877 5.104844 17,544,721 11%
0.55% 2,404,921 5.078178 12,212,617 11%
0.40% 1,119,188 5.083262 5,689,126 12%
0.30% 25,586 5.086655 130,147 12%
0.25% 313,745 5.088352 1,596,445 12%
0.15% 2,361,157 5.138197 12,132,090 12%
Evergreen Income and Growth
Fund - Class Y ...................... 0.95% 475,808 2.708417 1,288,686 14%
0.90% 260,053 2.712704 705,447 14%
0.80% 130,911 2.721300 356,248 14%
0.65% 107,945 2.732879 295,001 14%
0.50% 24,176 2.716565 65,676 14%
0.40% 213,857 2.740315 586,036 14%
Federated Investments Series
Funds, Inc. - Federated Bond
Fund - Class F ...................... 0.80% 400,244 0.996056 398,665 2%
0.70% 24,239 0.996681 24,159 2%
0.55% 121,755 0.997620 121,465 2%
0.40% 4,178 0.998559 4,172 2%
0.25% 14,133 0.999499 14,126 2%
0.15% 63,035 1.000127 63,043 2%
Federated U.S. Government
Securities Fund: 2-5 Years -
Institutional Shares ................ 0.95% 3,508,041 1.373316 4,817,649 1%
0.90% 1,773,007 1.375512 2,438,792 1%
0.80% 1,036,795 1.379910 1,430,684 1%
0.65% 664,942 1.385829 921,496 1%
0.50% 204,483 1.377980 281,773 1%
0.40% 1,354,213 1.389622 1,881,844 1%
Fidelity Advisor Growth Opportunities
Fund - Class A ...................... 0.80% 575,860 1.157776 666,717 6%
0.70% 256,263 1.158501 296,881 6%
0.55% 315,665 1.159591 366,042 6%
0.40% 109,392 1.160681 126,969 6%
0.30% 2,481 1.161409 2,881 7%
0.25% 2,694 1.161773 3,130 7%
0.15% 50,784 1.162501 59,036 7%
</TABLE>
(Continued)
31
<PAGE> 32
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
Fidelity Advisor High Yield Fund -
Class T .............................. 0.80% 144,819 1.135208 164,400 7%
0.70% 157,445 1.135970 178,853 7%
0.55% 173,975 1.137112 197,829 7%
0.40% 165 1.138253 188 7%
0.25% 156 1.139394 178 7%
0.15% 77,066 1.140155 87,867 7%
Fidelity Capital & Income Fund .......... 0.95% 162,411 5.431983 882,214 12%
0.90% 65,782 5.440667 357,898 13%
0.80% 54,621 5.458063 298,125 13%
0.65% 132,968 5.481475 728,861 13%
0.50% 15,723 5.450430 85,697 13%
0.40% 52,567 5.496479 288,933 13%
Fidelity Contrafund ..................... 0.95% 81,028,754 2.802442 227,078,383 11%
0.90% 38,956,164 2.806878 109,345,200 11%
0.80% 28,969,663 2.815769 81,571,879 11%
0.65% 12,617,937 2.827747 35,680,333 11%
0.50% 5,128,470 2.810867 14,415,447 11%
0.40% 23,006,915 2.835435 65,234,612 11%
Fidelity Equity-Income Fund ............. 0.95% 18,083,472 8.669016 156,765,908 13%
0.90% 10,527,735 8.682736 91,409,544 13%
0.80% 6,686,587 8.710240 58,241,778 13%
0.65% 4,159,500 8.747295 36,384,374 13%
0.50% 1,240,389 8.695097 10,785,303 13%
0.40% 7,089,098 8.771095 62,179,152 13%
Fidelity Magellan(R)Fund ................ 0.95% 34,213,283 2.705075 92,549,497 13%
0.90% 15,921,230 2.709355 43,136,264 13%
0.80% 12,637,230 2.717936 34,347,182 13%
0.65% 5,423,136 2.729496 14,802,428 13%
0.50% 1,998,390 2.713207 5,422,046 13%
0.40% 8,628,109 2.736916 23,614,410 14%
Fidelity OTC Portfolio .................. 0.95% 9,085,104 2.995211 27,211,803 18%
0.90% 4,398,943 2.999952 13,196,618 18%
0.80% 3,571,270 3.009454 10,747,573 18%
0.65% 1,812,671 3.022255 5,478,354 18%
0.50% 447,882 3.004209 1,345,531 18%
0.40% 4,546,672 3.030468 13,778,544 18%
Fidelity Puritan(R)Fund ................. 0.95% 11,389,674 1.921981 21,890,737 4%
0.90% 5,586,154 1.925023 10,753,475 4%
0.80% 3,910,038 1.931122 7,550,760 4%
0.65% 1,292,233 1.939338 2,506,077 4%
0.50% 583,906 1.927766 1,125,634 4%
0.40% 2,327,871 1.944615 4,526,813 5%
INVESCO Dynamics Fund, Inc. ............. 0.80% 817,868 1.462158 1,195,852 25%
0.70% 591,448 1.463073 865,332 25%
0.55% 345,990 1.464447 506,684 25%
0.40% 234,030 1.465822 343,046 25%
0.30% 2,054 1.466740 3,013 25%
0.25% 21,918 1.467199 32,158 25%
0.15% 783,060 1.468117 1,149,624 25%
</TABLE>
32
<PAGE> 33
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
INVESCO Total Return Fund .............. 0.80% 440,039 1.086833 478,249 6%
0.70% 75,918 1.087514 82,562 6%
0.55% 99,591 1.088537 108,408 6%
0.40% 154,799 1.089561 168,663 6%
0.15% 113,419 1.091270 123,771 7%
The Investment Company of America(R) ... 0.95% 16,038,870 3.099457 49,711,788 12%
0.90% 7,629,423 3.104361 23,684,483 12%
0.80% 5,107,617 3.114194 15,906,110 12%
0.65% 2,042,065 3.127440 6,386,436 12%
0.50% 843,625 3.108779 2,622,644 12%
0.40% 3,426,772 3.135946 10,746,172 12%
MAS Funds - Fixed Income Portfolio ..... 0.95% 1,985,573 1.388677 2,757,320 2%
0.90% 1,079,650 1.390876 1,501,659 2%
0.80% 429,398 1.395285 599,133 2%
0.65% 313,288 1.401225 438,987 2%
0.50% 37,064 1.392861 51,625 2%
0.40% 662,134 1.405040 930,325 2%
Massachusetts Investors Growth
Stock Fund - Class A ................ 0.95% 289,272 24.727266 7,152,906 12%
0.90% 150,735 24.766394 3,733,162 12%
0.80% 130,975 24.844835 3,254,052 12%
0.65% 65,664 24.950504 1,638,350 12%
0.50% 16,984 24.801612 421,231 12%
0.40% 116,901 25.018337 2,924,669 12%
MFS(R) Growth Opportunities Fund -
Class A ............................. 0.95% 619,045 12.442378 7,702,392 8%
0.90% 349,901 12.462075 4,360,493 8%
0.80% 200,812 12.501562 2,510,464 8%
0.65% 179,088 12.554756 2,248,406 8%
0.50% 30,857 12.479798 385,089 8%
0.40% 183,889 12.588902 2,314,961 8%
MFS(R)High Income Fund - Class A ....... 0.95% 1,214,667 6.468788 7,857,423 5%
0.90% 565,536 6.479120 3,664,176 5%
0.80% 286,557 6.499837 1,862,574 5%
0.65% 235,741 6.527717 1,538,851 5%
0.50% 45,230 6.490747 293,576 5%
0.40% 403,604 6.545585 2,641,824 5%
Morgan Stanley Institutional
Fund, Inc. - Equity Growth
Portfolio - Class B ................. 0.80% 195,845 1.271311 248,980 15%
0.70% 27,329 1.272107 34,765 15%
0.55% 39,125 1.273302 49,818 15%
0.40% 43,687 1.274499 55,679 15%
0.15% 83,933 1.276496 107,140 15%
NAAT - The Aggressive Portfolio ........ 0.70% 1,135,421 1.248176 1,417,205 8%
0.60% 436,596 1.246600 544,261 8%
0.45% 243,656 1.247848 304,046 8%
0.25% 188,043 1.249515 234,963 9%
0.15% 168 1.250350 210 9%
0.00% 770,286 1.257931 968,967 9%
</TABLE>
33
<PAGE> 34
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
NAAT - The Conservative Portfolio ......... 0.70% 444,672 1.137440 505,788 2%
0.60% 196,339 1.136005 223,042 2%
0.45% 610,789 1.137144 694,555 3%
0.25% 107,449 1.138665 122,348 3%
0.10% 6,106 1.139806 6,960 3%
0.00% 195,626 1.146331 224,252 3%
NAAT - The Moderate Portfolio ............. 0.70% 1,685,331 1.214120 2,046,194 6%
0.60% 366,868 1.212587 444,859 6%
0.45% 230,540 1.213802 279,830 6%
0.25% 39,477 1.215424 47,981 6%
0.15% 170 1.216236 207 6%
0.10% 29,005 1.216642 35,289 6%
0.00% 367,893 1.223608 450,157 6%
NAAT - The Moderately Aggressive
Portfolio .............................. 0.70% 1,384,816 1.221979 1,692,216 7%
0.60% 438,230 1.220436 534,832 7%
0.45% 193,947 1.221659 236,937 7%
0.25% 339,926 1.223292 415,829 7%
0.10% 25,102 1.224517 30,738 7%
0.00% 402,511 1.231529 495,704 7%
NAAT - The Moderately Conservative
Portfolio .............................. 0.70% 705,660 1.181056 833,424 4%
0.60% 154,279 1.179565 181,982 4%
0.45% 149,105 1.180748 176,055 4%
0.25% 17,730 1.182326 20,963 5%
0.15% 967 1.183511 1,144 5%
0.00% 186,324 1.190287 221,779 5%
Nationwide(R)Fund - Class D ............... 0.95% 1,458 28.557835 41,637 7%
0.80% 3,471,217 28.693619 99,601,778 7%
0.70% 1,466,098 28.784496 42,200,892 7%
0.55% 1,003,019 28.634249 28,720,696 7%
0.40% 504,609 28.662955 14,463,585 7%
0.30% 23,839 28.682108 683,753 7%
0.25% 107,449 28.691689 3,082,893 7%
0.15% 1,001,998 28.972681 29,030,568 7%
Nationwide(R)Growth Fund - Class D ........ 0.95% 650,259 5.174981 3,365,078 10%
0.90% 424,100 5.183171 2,198,183 10%
0.80% 276,757 5.199590 1,439,023 10%
0.65% 86,210 5.221710 450,164 10%
0.50% 31,528 5.190545 163,648 10%
0.40% 252,169 5.235912 1,320,335 10%
0.30% 1,619 5.239407 8,483 10%
Nationwide(R)Money Market Fund ............ 0.80% 7,289,018 3.195439 23,291,612 2%
0.70% 3,820,078 3.205646 12,245,818 2%
0.55% 3,143,466 3.189770 10,026,934 2%
0.40% 2,700,969 3.217929 8,691,526 2%
0.30% 101,482 3.195766 324,313 2%
0.25% 728,286 3.196965 2,328,305 2%
0.15% 3,585,897 3.199361 11,472,579 2%
</TABLE>
34
<PAGE> 35
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
Nationwide(R)S&P 500 Index Fund -
Class Y .............................. 0.80% 1,483,187 1.217120 1,805,217 11%
0.70% 1,023,525 1.217883 1,246,534 11%
0.55% 400,861 1.219028 488,661 11%
0.40% 193,851 1.220173 236,532 12%
0.25% 37,613 1.221320 45,938 12%
0.15% 744,052 1.222085 909,295 12%
Nationwide(R) SAT -
Small Company Fund ................... 0.80% 1,514,784 1.032840 1,564,530 7%
0.70% 682,956 1.034551 706,553 7%
0.55% 613,281 1.033035 633,541 7%
0.40% 506,429 1.038225 525,787 7%
0.30% 2,694 1.034760 2,788 7%
0.25% 13,784 1.035106 14,268 7%
0.15% 342,963 1.035797 355,240 8%
Neuberger & Berman Equity Funds(R) -
Guardian Fund ........................ 0.95% 7,934,492 1.981549 15,722,585 15%
0.90% 3,924,184 1.984686 7,788,273 15%
0.80% 2,709,186 1.990974 5,393,919 15%
0.65% 1,321,286 1.999446 2,641,840 15%
0.50% 269,256 1.987507 535,148 15%
0.40% 3,594,208 2.004887 7,205,981 15%
Neuberger & Berman Equity Trust(R) -
Partners Trust ....................... 0.80% 44,495 1.173242 52,203 13%
0.70% 16,010 1.173977 18,795 13%
0.55% 91,928 1.175081 108,023 13%
0.40% 6,570 1.176186 7,728 13%
0.25% 34 1.177292 40 13%
0.15% 1,696 1.178029 1,998 13%
NIF III - Prestige Balanced Fund -
Class Y .............................. 0.70% 217,476 1.123065 244,240 6%
0.60% 99,953 1.123769 112,324 6%
0.45% 44,148 1.124826 49,659 6%
0.25% 63,869 1.126237 71,932 6%
0.00% 12,079 1.128003 13,625 6%
NIF III - Prestige International Fund -
Class Y .............................. 0.70% 85,408 1.136820 97,094 4%
0.60% 49,651 1.137532 56,480 4%
0.45% 51,573 1.138602 58,721 4%
0.25% 8,266 1.140030 9,423 4%
0.00% 3,471 1.141817 3,963 4%
NIF III - Prestige Large Cap Growth
Fund - Class Y ....................... 0.70% 234,516 1.279533 300,071 12%
0.60% 169,868 1.280334 217,488 12%
0.45% 36,665 1.281537 46,988 12%
0.25% 43,753 1.283142 56,141 13%
0.00% 246,365 1.285152 316,616 13%
</TABLE>
35
<PAGE> 36
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
NIF III - Prestige Large Cap Value
Fund - Class Y ....................... 0.70% 96,259 1.142937 110,018 9%
0.60% 63,473 1.143654 72,591 9%
0.45% 19,272 1.144729 22,061 9%
0.25% 24,660 1.146165 28,264 9%
0.00% 91,308 1.147962 104,818 9%
NIF III - Prestige Small Cap Fund -
Class Y .............................. 0.70% 263,069 1.151053 302,806 6%
0.60% 66,664 1.151775 76,782 6%
0.45% 32,680 1.152858 37,675 6%
0.25% 14,544 1.154304 16,788 6%
0.00% 59,107 1.156115 68,334 6%
Oppenheimer Global Fund - Class A ....... 0.80% 139,984 1.256002 175,820 14%
0.70% 169,309 1.256789 212,786 14%
0.55% 100,789 1.257970 126,790 14%
0.40% 27,364 1.259153 34,455 14%
0.30% 1,037 1.259941 1,307 14%
0.25% 732 1.260336 923 14%
0.15% 103,303 1.261125 130,278 14%
Putnam Investors Fund - Class A ......... 0.95% 2,574,795 26.548840 68,357,820 9%
0.90% 1,091,988 26.590852 29,036,891 9%
0.80% 610,337 26.675073 16,280,784 9%
0.65% 355,521 26.788534 9,523,886 9%
0.50% 65,893 26.628675 1,754,643 9%
0.40% 790,494 26.861371 21,233,753 9%
0.30% 18,527 26.879300 497,993 10%
Putnam Voyager Fund - Class A ........... 0.95% 26,685,052 5.358891 143,002,285 14%
0.90% 12,071,160 5.367374 64,790,430 14%
0.80% 8,281,073 5.384380 44,588,444 14%
0.65% 4,306,976 5.407289 23,289,064 14%
0.50% 1,144,944 5.375000 6,154,074 14%
0.40% 7,325,549 5.421991 39,719,061 14%
0.30% 90,444 5.425609 490,714 14%
SEI Index Funds -
S&P 500 Index Portfolio .............. 0.95% 32,844,584 2.133081 70,060,158 12%
0.90% 15,098,854 2.136453 32,257,992 12%
0.80% 10,780,677 2.143213 23,105,287 12%
0.65% 5,971,577 2.152321 12,852,751 12%
0.50% 1,150,162 2.139496 2,460,767 12%
0.40% 11,248,487 2.158174 24,276,192 12%
Seligman Growth Fund, Inc. - Class A. ... 0.95% 345,828 18.367764 6,352,087 9%
0.90% 194,622 18.396831 3,580,428 9%
0.80% 101,922 18.455104 1,880,981 9%
0.65% 64,855 18.533606 1,201,997 9%
0.50% 14,395 18.423008 265,199 10%
0.40% 147,590 18.584004 2,742,813 10%
</TABLE>
36
<PAGE> 37
<TABLE>
<CAPTION>
ASSET PERIOD
CHARGE UNITS UNIT VALUE AMOUNT RETURN*
------- ---------- ---------- ----------- -------
<S> <C> <C> <C> <C> <C>
Short-Term Investments Trust -
Treasury Portfolio -
Institutional Class .................... 0.95% 2,172,000 1.300661 2,825,036 2%
0.90% 963,700 1.302741 1,255,452 2%
0.80% 652,181 1.306906 852,339 2%
0.65% 889,361 1.312512 1,167,297 2%
0.50% 59,828 1.305079 78,080 2%
0.40% 853,114 1.316105 1,122,788 2%
T. Rowe Price International Funds,
Inc. - International Stock Fund(R) ..... 0.95% 9,266,667 1.430518 13,256,134 4%
0.90% 4,437,410 1.432782 6,357,841 4%
0.80% 3,408,447 1.437322 4,899,036 4%
0.65% 1,644,077 1.443439 2,373,125 4%
0.50% 773,926 1.434822 1,110,446 4%
0.40% 4,706,344 1.447367 6,811,807 4%
Templeton Foreign Fund - Class I .......... 0.80% 13,249,761 1.485323 19,680,175 22%
0.70% 7,643,523 1.490030 11,389,079 22%
0.55% 5,595,255 1.482242 8,293,522 22%
0.40% 1,691,823 1.483726 2,510,202 23%
0.30% 49,321 1.484717 73,228 23%
0.25% 603,386 1.485212 896,156 23%
0.15% 4,075,487 1.499775 6,112,314 23%
Warburg Pincus Emerging Growth
Fund - Common Shares ................... 0.80% 217,054 1.197579 259,939 5%
0.70% 134,916 1.198329 161,674 5%
0.55% 56,894 1.199457 68,242 5%
0.40% 37,846 1.200585 45,437 5%
0.25% 730 1.201714 877 5%
0.15% 33,648 1.202467 40,461 5%
========== ========= ===
$3,249,654,978
Total Contract Owners' Equity ==============
</TABLE>
*The period return does not include contract charges satisfied by
surrendering units.
37
<PAGE> 38
(5) VARIABLE ACCOUNT FEES
The following is a summary of variable account fees for the period January
1, 1999 to June 30, 1999.
<TABLE>
<CAPTION>
PERCENTAGE TOTAL ACINCGRO ACTCGRO ACTCINTDIS ACTCULTRA
---------- ----- -------- --------- ---------- -----------
<S> <C> <C> <C> <C> <C>
0.95%............. $ 5,230,121 63 240,330 2 731,388
0.90% ............ 2,231,422 -- 120,449 -- 303,819
0.80% ............ 2,121,932 7,021 94,982 1,267 219,752
0.70% ............ 292,257 2,684 -- 828 --
0.65% ............ 610,846 -- 36,814 -- 84,706
0.60% ............ 5,435 -- -- -- --
0.55% ............ 150,250 1,991 -- 412 --
0.50% ............ 145,094 -- 7,366 -- 21,913
0.45% ............ 3,398 -- -- -- --
0.40% ............ 765,382 398 36,861 542 122,700
0.30% ............ 4,503 16 249 -- 1,151
0.25% ............ 10,547 135 -- 26 --
0.15% ............ 43,273 400 -- 180 --
0.10% ............ 32 -- -- -- --
---------- ---------- ---------- ---------- ----------
Total variable account fees 11,614,492 12,708 537,051 3,257 1,485,429
========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE BDFDAM DRYAPP DRYPREMCAP DRY3DCEN EVINCGRO
---------- ------ ------ ---------- -------- --------
<S> <C> <C> <C> <C> <C>
0.95%...................... $35,911 76 2 743 6,143
0.90% ..................... 18,032 -- -- -- 3,104
0.80% ..................... 9,019 3,300 356 127,967 1,148
0.70% ..................... -- 2,057 134 53,955 --
0.65% ..................... 5,201 -- -- -- 899
0.60% ..................... -- -- -- -- --
0.55% ..................... -- 826 43 29,573 --
0.50% ..................... 1,032 -- -- -- 150
0.45% ..................... -- -- -- -- --
0.40% ..................... 4,550 362 12 10,716 1,139
0.30% ..................... -- 11 -- 177 --
0.25% ..................... -- 54 -- 1,985 --
0.15% ..................... -- 407 55 8,487 --
0.10% ..................... -- -- -- -- --
------- ------- ------- ------- -------
Total variable account fees ........ 73,745 7,093 602 233,603 12,583
======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE FEDBDFD FEDUSGVT FAGROPPA FAHIYLD FIDCAPINC FIDCONTR FIDEQINC FIDMGIN
---------- ------- -------- -------- ------- --------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
0.95% ............ $ -- 23,450 1 1 4,234 1,028,680 738,341 412,710
0.90% ............ -- 10,672 -- -- 1,442 435,701 362,050 166,379
0.80% ............ 1,030 5,872 1,441 512 1,161 289,242 207,459 120,095
0.70% ............ 63 -- 593 391 -- -- -- --
0.65% ............ -- 2,687 -- -- 2,262 105,921 111,960 43,125
0.60% ............ -- -- -- -- -- -- -- --
0.55% ............ 224 -- 648 601 -- -- -- --
0.50% ............ -- 733 -- -- 203 33,339 25,046 12,380
0.45% ............ -- -- -- -- -- -- -- --
0.40% ............ 122 3,582 149 2 549 118,546 116,321 41,425
0.30% ............ -- -- 2 -- -- -- -- --
0.25% ............ 13 -- 4 -- -- -- -- --
0.15% ............ 37 -- 38 63 -- -- -- --
0.10% ............ -- -- -- -- -- -- -- --
------- ------- --------- --------- --------- --------- --------- ---------
Total variable account fees $ 1,489 46,996 2,876 1,570 9,851 2,011,429 1,561,177 796,114
======= ======= ========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE FIDOTC FIDPURTN
---------- ------ --------
<S> <C> <C>
0.95% ............ 112,841 100,510
0.90% ............ 46,433 45,101
0.80% ............ 34,193 26,439
0.70% ............ -- --
0.65% ............ 14,973 7,791
0.60% ............ -- --
0.55% ............ -- --
0.50% ............ 2,785 2,739
0.45% ............ -- --
0.40% ............ 22,133 8,965
0.30% ............ -- --
0.25% ............ -- --
0.15% ............ -- --
0.10% ............ -- --
--------- ---------
Total variable account fees 233,358 191,545
========= =========
</TABLE>
38
<PAGE> 39
<TABLE>
<CAPTION>
Percentage InvDynam InvTotRet InvCoAm MASFIP MFSGrStk MFSGrOpp MFSHiInc MSIEqGroB NAATAggr NAATCons
- ------------------- --------- ------- ------ -------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95%..$ 1 -- 222,852 13,615 33,363 36,407 39,855 -- 2 --
0.90%.. -- -- 93,639 6,319 15,076 18,355 14,970 -- -- --
0.80%.. 1,805 1,367 57,771 1,965 11,542 8,951 7,813 571 -- --
0.70%.. 1,153 111 -- -- -- -- -- 68 4,061 1,493
0.65%.. -- -- 18,823 1,392 4,912 6,862 4,849 -- -- --
0.60%.. -- -- -- -- -- -- -- -- 1,204 421
0.55%.. 551 159 -- -- -- -- -- 85 -- --
0.50%.. -- -- 5,967 122 971 909 766 -- -- --
0.45%.. -- -- -- -- -- -- -- -- 579 1,292
0.40%.. 722 136 19,582 1,773 5,514 4,564 5,734 60 -- --
0.30%.. 2 -- -- -- -- -- -- -- -- --
0.25%.. 14 -- -- -- -- -- -- 1 229 139
0.15%.. 234 36 -- -- -- -- -- 41 -- --
0.10%.. -- -- -- -- -- -- -- -- 1 3
------- ------- -------- ------- ------- ------- ------- ------- ------- -------
Total
variable..
account...
fees .....$ 4,482 1,809 418,634 25,186 71,378 76,048 73,987 826 6,076 3,348
======= ======= ======== ======= ======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Percentage NAATMod NAATModAgg NAATModCon NWFund NWGroFd NWMyMkt NWIndxFdY NSATSmCo NBGuard NBPartTr
- ------------------ ---------- ---------- ------ ------- ------- --------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95%.. -- $ 4 1 4,912 16,017 1,257 46 29 74,078 --
0.90%.. -- -- -- -- 9,138 -- -- -- 32,862 --
0.80%.. -- -- -- 364,195 5,424 88,572 3,874 5,387 19,787 96
0.70%.. 6,058 5,126 2,555 129,108 -- 39,787 2,557 2,055 -- 176
0.65%.. -- -- -- -- 1,409 -- -- -- 8,048 --
0.60%.. 1,035 1,067 492 -- -- -- -- -- -- --
0.55%.. -- -- -- 69,119 -- 24,278 890 1,456 -- 201
0.50%.. -- -- -- -- 386 -- -- -- 1,234 --
0.45%.. 464 456 373 -- -- -- -- -- -- --
0.40%.. -- -- -- 26,507 2,513 17,511 318 1,017 13,839 4
0.30%.. -- -- -- 929 12 481 -- 3 -- --
0.25%.. 41 404 99 3,502 -- 2,678 74 58 -- --
0.15%.. -- -- -- 20,501 -- 8,216 374 201 -- 1
0.10%.. 14 14 -- -- -- -- -- -- -- --
----- ----- ----- ------- ------ ------ ----- ----- ------ ---
Total
variable
account
fees ...$ 7 ,612 7,071 3,520 618,773 34,899 182,780 8,133 10,206 149,848 478
======= ======= ======= ======= ======= ======= ======= ======= ======= =======
(Continued)
</TABLE>
39
<PAGE> 40
<TABLE>
<CAPTION>
Percentage PrBalY PrIntY PrLgCapGrY PrLgCpValY PrSmCapY OppGlob PutInvFd PutVoyFd SEI500Ix SelGroFd
- ---------- ------ ------ --------------------- -------- ------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95%.. $ 1 1 -- -- -- 4 305,584 640,442 301,204 29,130
0.90%.. -- -- -- -- -- -- 110,885 247,168 124,066 14,063
0.80%.. -- -- -- -- -- 357 59,269 156,320 77,588 6,949
0.70%.. 543 238 548 234 493 246 -- -- -- --
0.65%.. -- -- -- -- -- -- 27,615 68,605 36,813 3,436
0.60%.. 218 162 454 209 173 -- -- -- -- --
0.55%.. -- -- -- -- -- 167 -- -- -- --
0.50%.. -- -- -- -- -- -- 4,007 14,222 5,358 707
0.45%.. 64 24 36 42 68 -- -- -- -- --
0.40%.. -- -- -- -- -- 57 38,609 71,422 41,506 5,281
0.30%.. -- -- -- -- -- 1 687 684 -- --
0.25%.. 56 7 41 15 12 -- -- -- -- --
0.15%.. -- -- -- -- -- 53 -- -- -- --
0.10%.. -- -- -- -- -- -- -- -- -- --
------- ------- -------- ------- ------- ------- ------- --------- ------- -------
Total
variable
account
fees........ $ 882 432 1,079 500 746 885 546,656 1,198,863 586,535 59,566
======= ======= ======== ======= ======= ======= ======= ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Percentage AIMTreas TRIntStk TemForFd WPEmGro
- ------------------- -------- -------- -------
<S> <C> <C> <C> <C>
0.95%..$11,725 63,357 807 1
0.90%.. 6,135 25,564 -- --
0.80%.. 2,126 17,506 70,063 378
0.70%.. -- -- 34,713 229
0.65%.. 4,064 7,679 -- --
0.60%.. -- -- -- --
0.55%.. -- -- 18,906 120
0.50%.. 270 2,489 -- --
0.45%.. -- -- -- --
0.40%.. 2,020 12,799 4,767 53
0.30%.. -- -- 98 --
0.25%.. -- -- 960 --
0.15%.. -- -- 3,932 17
0.10%.. -- -- -- --
------- ------- -------- -------
Total
variable
account
fees ... $26,340 129,394 134,246 798
======= ======= ======== =======
</TABLE>
40
<PAGE> 41
(5) Variable Account Fees
The following is a summary of variable account fees for the period May 1,
1998 to June 30, 1998.
<TABLE>
<CAPTION>
ACT
Percentage TOTAL ACIncGro ACTCGro CIntDis ACTCUltra BdFdAm DryApp DryPreMCap Dry3dCen EvIncGro
---------------- -------- ------------------------- ------ ------ ------------------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL 0.95%..$1,657,202 -- 72,377 - 179,849 11,509 -- -- 43,832 2,607
0.90%.. 659,928 -- 34,741 - 71,836 5,461 -- -- 17,951 1,085
0.80%.. 470,641 -- 26,763 - 52,265 2,499 -- -- 10,441 436
0.70%.. 195,556 -- 10,939 - 21,969 1,381 -- -- 5,073 358
0.65%.. 327,709 -- 15,322 - 42,499 1,926 -- -- 8,658 670
0.60%.. -- -- -- - -- -- -- -- -- --
0.55%.. -- -- -- - -- -- -- -- -- --
0.50%.. -- -- -- - -- -- -- -- -- --
0.45%.. -- -- -- - -- -- -- -- -- --
0.40%.. -- -- -- - -- -- -- -- -- --
0.30%.. -- -- -- - -- -- -- -- -- --
0.25%.. -- -- -- - -- -- -- -- -- --
0.15%.. -- -- -- - -- -- -- -- -- --
0.10%.. -- -- -- - -- -- -- -- -- --
------------ ------- -------- ------- ------- ------- ------- ------- ------- -------
Total
variable
account
fees ........ $3,311,036 -- 160,142 - 368,418 22,776 -- -- 85,955 5,156
============ ======= ======== ======= ======= ======= ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
Percentage FedBdFd FedUSGvt FAGrOppA FAHiYld FidCapInc FidContr FidEqInc FidMgIn FidOTC FidPurtn
---------- ------- -------- ---------------- --------- -------- -------- ------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95%.. $ -- 3,381 -- - 1,566 273,248 258,331 111,265 25,002 27,889
0.90%.. -- 1,389 -- - 478 107,506 110,757 39,558 9,272 12,494
0.80%.. -- 955 -- - 599 72,343 86,243 31,904 7,258 7,588
0.70%.. -- 315 -- - 802 31,365 40,526 10,762 3,222 2,570
0.65%.. -- 827 -- - 302 44,114 64,313 15,457 6,239 3,815
0.60%.. -- -- -- - -- -- -- -- -- --
0.55%.. -- -- -- - -- -- -- -- -- --
0.50%.. -- -- -- - -- -- -- -- -- --
0.45%.. -- -- -- - -- -- -- -- -- --
0.40%.. -- -- -- - -- -- -- -- -- --
0.30%.. -- -- -- - -- -- -- -- -- --
0.25%.. -- -- -- - -- -- -- -- -- --
0.15%.. -- -- -- - -- -- -- -- -- --
0.10%.. -- -- -- - -- -- -- -- -- --
------------ ------- -------- ------- ------- ------- ------- ------- ------- -------
Total
variable
account
fees ... $ -- 6,867 -- - 3,747 528,576 560,170 208,946 50,993 54,356
============ ======= ======== ======= ======= ======= ======= ======= ======= =======
</TABLE>
41
<PAGE> 42
<TABLE>
<CAPTION>
Percentage InvDynam InvTotRet InvCoAm MASFIP MFSGrStk MFSGrOpp MFSHiInc MSIEqGroB NAATAggr NAATCons
- ----------------------------- ------- ------ -------- -------- -------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95%..$ -- -- 64,725 3,272 9,624 11,886 11,878 -- 615 90
0.90%.. -- -- 25,230 1,220 4,291 6,017 4,794 -- 309 29
0.80%.. -- -- 15,679 466 3,656 3,877 3,414 -- 126 5
0.70%.. -- -- 5,313 174 934 1,592 1,247 -- 34 --
0.65%.. -- -- 7,802 505 2,423 2,314 3,183 -- 339 49
0.60%.. -- -- -- -- -- -- -- -- -- --
0.55%.. -- -- -- -- -- -- -- -- -- --
0.50%.. -- -- -- -- -- -- -- -- -- --
0.45%.. -- -- -- -- -- -- -- -- -- --
0.40%.. -- -- -- -- -- -- -- -- -- --
0.30%.. -- -- -- -- -- -- -- -- -- --
0.25%.. -- -- -- -- -- -- -- -- -- --
0.15%.. -- -- -- -- -- -- -- -- -- --
0.10%.. -- -- -- -- -- -- -- -- -- --
------- ----- ------- ----- ------ ------ ------ ----- ----- ---
Total
variable
account
fees ... $ -- -- 118,749 5,637 20,928 25,686 24,516 -- 1,423 173
======= ===== ======= ===== ====== ====== ====== ===== ===== ===
</TABLE>
<TABLE>
<CAPTION>
Percentage NAATMod NAATModAgg NAATModCon NWFund NWGroFd NWMyMkt NWIndxFdY NSATSmCo NBGuard NBPartTr
- ------------------ --------------------- ------ ------- ------- --------- -------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95%..$ 544 882 172 99,532 5,681 28,507 -- 1,051 30,492 --
0.90%.. 88 106 74 38,638 3,002 14,267 -- 749 11,756 --
0.80%.. 70 140 79 25,921 1,744 8,132 -- 259 8,779 --
0.70%.. 10 31 2 9,966 462 4,447 -- 149 2,961 --
0.65%.. 58 125 24 17,459 1,133 12,082 -- 219 8,382 --
0.60%.. -- -- -- -- -- -- -- -- -- --
0.55%.. -- -- -- -- -- -- -- -- -- --
0.50%.. -- -- -- -- -- -- -- -- -- --
0.45%.. -- -- -- -- -- -- -- -- -- --
0.40%.. -- -- -- -- -- -- -- -- -- --
0.30%.. -- -- -- -- -- -- -- -- -- --
0.25%.. -- -- -- -- -- -- -- -- -- --
0.15%.. -- -- -- -- -- -- -- -- -- --
0.10%.. -- -- -- -- -- -- -- -- -- --
------- ----- --- ------- ------ ------ ----- ----- ------ ---
Total
variable
account
fees ... $ 770 1,284 351 191,516 12,022 67,435 -- 2,427 62,370 --
======= ===== === ======= ====== ====== ===== ===== ====== ===
</TABLE>
42
<PAGE> 43
<TABLE>
<CAPTION>
Percentage PrBalY PrIntY PrLgCapGrY PrLgCpValY PrSmCapY OppGlob PutInvFd PutVoyFd SEI500Ix SelGroFd
- ---------- ------ ------ -------------------------------------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
0.95% ...$ -- -- -- -- -- -- 66,483 179,635 64,862 8,200
0.90% ... -- -- -- -- -- -- 21,590 63,975 24,275 3,379
0.80% ... -- -- -- -- -- -- 16,513 43,915 19,002 1,979
0.70% ... -- -- -- -- -- -- 5,202 19,444 6,390 765
0.65% ... -- -- -- -- -- -- 11,248 29,840 11,626 1,957
0.60% ... -- -- -- -- -- -- -- -- -- --
0.55% ... -- -- -- -- -- -- -- -- -- --
0.50% ... -- -- -- -- -- -- -- -- -- --
0.45% ... -- -- -- -- -- -- -- -- -- --
0.40% ... -- -- -- -- -- -- -- -- -- --
0.30% ... -- -- -- -- -- -- -- -- -- --
0.25% ... -- -- -- -- -- -- -- -- -- --
0.15% ... -- -- -- -- -- -- -- -- -- --
0.10% ... -- -- -- -- -- -- -- -- -- --
----- ------ ------ ----- ----- ----- ------ ------ ----- -----
Total
variable
account
fees ... $ -- -- -- -- -- -- 121,036 336,809 126,155 16,280
===== ====== ====== ===== ===== ===== ======= ======= ======= ======
</TABLE>
<TABLE>
<CAPTION>
Percentage AIMTreas TRIntStk TemForFd WPEmGro
- ---------- -------- -------- -------- -------
<S> <C> <C> <C> <C>
0.95%... $ 2,460 20,498 35,257 --
0.90%... 1,168 7,832 14,611 --
0.80%... 388 5,948 11,255 --
0.70%... 1,003 2,733 3,415 --
0.65%... 686 6,073 6,040 --
0.60%... -- -- -- --
0.55%... -- -- -- --
0.50%... -- -- -- --
0.45%... -- -- -- --
0.40%... -- -- -- --
0.30%... -- -- -- --
0.25%... -- -- -- --
0.15%... -- -- -- --
0.10%... -- -- -- --
----- ------ ------ -----
Total
variable
account
fees ... $ 5,705 43,084 70,578 --
......... ====== ====== ====== =====
</TABLE>
43
<PAGE> 44
<TABLE>
<S> <C>
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
P A I D
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
</TABLE>
