<PAGE> 1
NATIONWIDE LIFE INSURANCE COMPANY
Deferred Variable Annuity Contracts
Issued by Nationwide Life Insurance Company through its NACo Variable Account
The date of this prospectus is May 1, 2000.
- --------------------------------------------------------------------------------
Variable annuities are complex investment products with unique benefits and
advantages that may be particularly useful to many investors in meeting
long-term savings and retirement needs. There are, however, costs and charges
associated with some of these unique benefits - costs and charges that do not
exist or are not present with other investment products. With help from
financial consultants or advisers, investors are encouraged to compare and
contrast the costs and benefits of the variable annuity described in this
prospectus with those of other investment products, including other variable
annuity or variable life insurance products offered by Nationwide Life Insurance
Company and its affiliates. This process will aid in determining whether the
purchase of the contract described in this prospectus is consistent with an
individual's goals, risk tolerance, time horizon, marital status, tax situation,
and other personal characteristics and needs.
THIS PROSPECTUS CONTAINS BASIC INFORMATION YOU SHOULD KNOW ABOUT THE CONTRACTS
BEFORE INVESTING. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE
REFERENCE.
- --------------------------------------------------------------------------------
The following underlying mutual funds are available under the contracts:
o American Century: Income & Growth - Investor Class
o American Century: Ultra - Investor Class
o American Century: Value - Investor Class
o The Brown Capital Management - Small Company Fund
o Dreyfus Appreciation Fund, Inc.
o Dreyfus Premier Midcap Stock Fund - Class A
o The Dreyfus Premier Third Century Fund, Inc. - Class Z
o Federated Bond Fund - Class F
o Federated U.S. Government Securities Fund: 2-5 Years - Institutional Shares
o Fidelity Advisor Growth Opportunities Fund - Class A
o Fidelity Advisor High Yield Fund - Class T
o Fidelity Equity - Income Fund
o Fidelity OTC Portfolio
o Fidelity Puritan Fund
o INVESCO Dynamics Fund
o INVESCO Total Return Fund
o LifeDesigns Series
- The Aggressive Portfolio
- The Moderately Aggressive Portfolio
- The Moderate Portfolio
- The Moderately Conservative Portfolio
- The Conservative Portfolio
o MAS Funds Fixed Income Portfolio
o MFS(R)High Income Fund - Class A
o Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio - Class B
o Nationwide(R)Fund - Class D
o Nationwide(R)Money Market Fund - Prime Shares
o Nationwide S&P 500(R)Index Fund - Institutional Service Class (formerly,
Class Y)
o Nationwide Separate Account Trust - Nationwide Income Fund
o Nationwide Separate Account Trust - Nationwide Small Company Fund
(subadvisers: The Dreyfus Corporation, Neuberger Berman, L.P., Lazard Asset
Management, Strong Capital Management, Inc. and Credit Suisse Asset
Management, LLC)
o Neuberger Berman Guardian Fund, Inc.
o Neuberger Berman Partners Trust
o Oppenheimer Global Fund - Class A
1
<PAGE> 2
o Prestige Balanced Fund - Institutional Service Class (formerly, Class Y)
o Prestige International Fund - Institutional Service Class (formerly,
Class Y)
o Prestige Large Cap Growth Fund - Institutional Service Class (formerly,
Class Y)
o Prestige Large Cap Value Fund - Institutional Service Class (formerly,
Class Y)
o Prestige Small Cap Fund - Institutional Service Class (formerly, Class Y)
o Putnam International Growth Fund - Class A
o Putnam Investors Fund - Class A
o Putnam Voyager Fund - Class A
o SEI Index Funds - S&P 500 Index Portfolio
o Seligman Growth Fund, Inc. - Class A
o Short-Term Investments Trust - Treasury Portfolio - Institutional Class
o T. Rowe Price International Stock Fund(R)
o Templeton Foreign Fund - Class A
NOT AVAILABLE FOR NEW CONTRACTS ISSUED ON OR AFTER MAY 1, 2000:
o American Century: International Discovery - Investor Class
o Warburg Pincus Emerging Growth Fund - Common Class
NOT AVAILABLE FOR NEW PLANS ESTABLISHED ON OR AFTER JUNE 30, 1998
o Fidelity Contrafund(R)
NOT AVAILABLE FOR NEW CONTRACTS ISSUED ON OR AFTER OCTOBER 1, 1997
o Fidelity Magellan(R) Fund
NOT AVAILABLE FOR NEW CONTRACTS ISSUED ON OR AFTER MAY 1, 1997
o American Century: Growth - Investor Class
o Massachusetts Investors Growth Stock Fund - Class A
NOT AVAILABLE FOR ALL CONTRACTS ISSUED ON OR AFTER JULY 1, 1994
o The Bond Fund of America(SM), Inc.
o The Investment Company of America(R), Inc.
NOT AVAILABLE FOR NEW CONTRACTS ISSUED ON OR AFTER OCTOBER 1, 1993
o Evergreen Income and Growth Fund - Class Y
o MFS(R) Growth Opportunities Fund - Class A
o Nationwide(R) Growth Fund - Class D
NOT AVAILABLE FOR OWNERS WHOSE PREDECESSOR NATIONWIDE DC VARIABLE ACCOUNT
CONTRACT WAS ISSUED ON OR AFTER JANUARY 1, 1987
o Fidelity Capital & Income Fund
The Statement of Additional Information ( dated May 1, 2000) which contains
additional information about the contracts and the NACo Variable Account has
been filed with the U.S. Securities and Exchange Commission ("SEC") and is
incorporated herein by reference. The table of contents for the Statement of
Additional Information is on page 34.
For general information or to obtain FREE copies of the:
o Statement of Additional Information;
o prospectus, annual report or semi-annual report for any underlying mutual
fund; and
o required Nationwide forms,
call: 1-800-545-4730
TDD 1-800-238-3035
or write:
NATIONWIDE LIFE INSURANCE COMPANY
P.O. BOX 16766
COLUMBUS, OHIO 43216
The Statement of Additional Information and other material incorporated by
reference can be found on the SEC website at:
www.sec.gov
THIS ANNUITY IS NOT:
o A BANK DEPOSIT o FEDERALLY INSURED
o ENDORSED BY A BANK o AVAILABLE IN
OR GOVERNMENT AGENCY EVERY STATE
Investors assume certain risks when investing in the contracts, including the
possibility of losing money.
2
<PAGE> 3
Guarantees under the contracts are the sole responsibility of Nationwide.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS THE
SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
3
<PAGE> 4
GLOSSARY OF SPECIAL TERMS
ACCUMULATION UNIT- An accounting unit of measure used to calculate the contract
value allocated to the variable account before the annuitization date.
ALLOCATED CONTRACT- Contract under which Nationwide maintains individual
accounts on behalf of each participant.
ANNUITIZATION DATE- The date on which annuity payments begin.
ANNUITY COMMENCEMENT DATE- The date on which annuity payments are scheduled to
begin. This date may be changed by the contract owner with Nationwide's consent.
ANNUITY UNIT- An accounting unit of measure used to calculate the variable
annuity payments.
CONTRACT VALUE- The total value of all accumulation units in a contract.
CONTRACT YEAR- Each year the contract is in force beginning with the date the
contract is issued.
GENERAL ACCOUNT- All assets of Nationwide other than those of the variable
account or in other separate accounts that have been or may be established by
Nationwide.
MEMBER COUNTY- A county which is a member of the National Association of
Counties ("NACo") or an entity approved by the President of NACo for
participation under the NACo program.
NACO PROGRAM- The deferred compensation program established and administered
pursuant to Section 457 of the Internal Revenue Code for the benefit of member
counties.
NATIONWIDE- Nationwide Life Insurance Company.
PARTICIPANT ACCOUNT YEAR- For each participant, the participant account year is
each one-year period starting with either the date accumulation units were first
credited to the participant's account, or an anniversary of that date.
SUB-ACCOUNTS- Divisions of the variable account which accumulation units and
annuity units are separately maintained - each sub-account corresponds to a
single underlying mutual fund.
UNALLOCATED CONTRACT- A contract where Nationwide maintains one single plan
contract, as opposed to maintaining individual participant accounts.
VALUATION PERIOD- Each day the New York Stock Exchange is open.
VARIABLE ACCOUNT- NACo Variable Account, a separate account of Nationwide that
contains variable account allocations. The variable account is divided into
sub-accounts, each of which invests in shares of a separate underlying mutual
fund.
4
<PAGE> 5
TABLE OF CONTENTS
GLOSSARY OF SPECIAL TERMS.....................................................4
SUMMARY OF STANDARD CONTRACT EXPENSES.........................................6
UNDERLYING MUTUAL FUND ANNUAL EXPENSES........................................7
EXAMPLE......................................................................10
CONDENSED FINANCIAL INFORMATION..............................................13
FINANCIAL STATEMENTS.........................................................13
SYNOPSIS OF THE CONTRACTS....................................................13
NATIONWIDE LIFE INSURANCE COMPANY............................................14
NATIONWIDE INVESTMENT SERVICES CORPORATION...................................14
INVESTING IN THE CONTRACT....................................................14
The Variable Account and Underlying Mutual Funds
CHARGES AND DEDUCTIONS.......................................................15
Participant Account Maintenance Charge
Variable Account Annual Expense Fee
Contingent Deferred Sales Charge
Premium Taxes
CONTRACT RIGHTS..............................................................18
OPERATION OF THE CONTRACT....................................................18
Minimum Purchase Payments
Application of Purchase Payments
Allocation of Purchase Payments
Determining Variable Account Value - Valuing an Accumulation Unit
Determining the Participant Account Value
Exchange Privilege
Experience Credits
MODIFICATION OF THE CONTRACT.................................................21
CONTRACT SUSPENSION AND TERMINATION..........................................21
REDEMPTION OF PARTICIPANT ACCOUNTS...........................................21
RETIREMENT PERIOD............................................................22
Additional Purchase Payment Before Beginning Retirement Income Payments
Retirement Income Payments
Election of Retirement Income Form and Date
Retirement Income Forms
Determination of Life Income Payments
Alternate Assumed Investment Rate
DEATH OF PARTICIPANT.........................................................25
Participant Death Before Retirement
Death of Retired Participant
FEDERAL TAX CONSIDERATIONS...................................................26
Contracts Issued under the New York Model Plan
STATEMENTS AND REPORTS.......................................................27
LEGAL PROCEEDINGS............................................................27
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY..............................28
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION.....................34
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS...........................35
APPENDIX B: CONDENSED FINANCIAL INFORMATION..................................45
5
<PAGE> 6
SUMMARY OF CONTRACT EXPENSES
All charges are subject to negotiation therefore the expenses described below
vary from contract to contract. Please refer to the appropriate prospectus
provision for more details.
PARTICIPANT TRANSACTION EXPENSES
Maximum Contingent Deferred Sales
Charge ("CDSC") (as a percentage of the daily net assets
of the variable account).............................5%
MAXIMUM PARTICIPANT ACCOUNT
MAINTENANCE CHARGE.................................$50
MAXIMUM VARIABLE ACCOUNT ANNUAL
EXPENSE FEE(1)
(as a percentage of average
account value).........................0.95% per annum
(1) The maximum Variable Account Annual Expense Fee does not include:
o premium taxes that may be imposed by the state in which the contract was
issued; or
o deductions for management fees and other expenses made by the underlying
mutual funds.
6
<PAGE> 7
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND NET ASSETS, AFTER EXPENSE REIMBURSEMENT)
--------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century: Growth - Investor Class 1.00% 0.00% 0.00% 1.00%
--------------------------------------------------------------------------------------------------------------------
American Century: Income & Growth - Investor Class 0.68% 0.00% 0.00% 0.68%
--------------------------------------------------------------------------------------------------------------------
American Century: International Discovery - Investor 1.59% 0.00% 0.00% 1.59%
Class
--------------------------------------------------------------------------------------------------------------------
American Century: Ultra - Investor Class 1.00% 0.00% 0.00% 1.00%
--------------------------------------------------------------------------------------------------------------------
American Century: Value - Investor Class 1.00% 0.00% 0.00% 1.00%
--------------------------------------------------------------------------------------------------------------------
The Bond Fund of America(SM), Inc. 0.32% 0.12% 0.25% 0.69%
--------------------------------------------------------------------------------------------------------------------
The Brown Capital Management - Small Company Fund 0.65% 0.85% 0.00% 1.50%
--------------------------------------------------------------------------------------------------------------------
Dreyfus Appreciation Fund, Inc. 0.28% 0.36% 0.25% 0.89%
--------------------------------------------------------------------------------------------------------------------
Dreyfus Premier Midcap Stock Fund - Class A 1.10% 0.00% 0.25% 1.35%
--------------------------------------------------------------------------------------------------------------------
The Dreyfus Premier Third Century Fund, Inc.- Class Z 0.75% 0.10% 0.11% 0.96%
--------------------------------------------------------------------------------------------------------------------
Evergreen Income and Growth Fund - Class Y 0.99% 0.22% 0.00% 1.21%
--------------------------------------------------------------------------------------------------------------------
Federated Bond Fund - Class F 0.64% 0.45% 0.00% 1.09%
--------------------------------------------------------------------------------------------------------------------
Federated U.S. Government Securities Fund: 2-5 Years - 0.40% 0.00% 0.15% 0.55%
Institutional Shares
--------------------------------------------------------------------------------------------------------------------
Fidelity Advisor Growth Opportunities Fund - Class A 0.43% 0.24% 0.25% 0.92%
--------------------------------------------------------------------------------------------------------------------
Fidelity Advisor High Yield Fund - Class T 0.58% 0.21% 0.25% 1.04%
--------------------------------------------------------------------------------------------------------------------
Fidelity Capital & Income Fund 0.58% 0.24% 0.00% 0.82%
--------------------------------------------------------------------------------------------------------------------
Fidelity Contrafund(R) 0.45% 0.20% 0.00% 0.65%
--------------------------------------------------------------------------------------------------------------------
Fidelity Equity-Income Fund 0.47% 0.20% 0.00% 0.67%
--------------------------------------------------------------------------------------------------------------------
Fidelity Magellan(R) Fund 0.43% 0.19% 0.00% 0.62%
--------------------------------------------------------------------------------------------------------------------
Fidelity OTC Portfolio 0.50% 0.25% 0.00% 0.75%
--------------------------------------------------------------------------------------------------------------------
Fidelity Puritan Fund 0.44% 0.20% 0.00% 0.64%
--------------------------------------------------------------------------------------------------------------------
INVESCO Dynamics Fund 0.52% 0.27% 0.25% 1.04%
--------------------------------------------------------------------------------------------------------------------
INVESCO Total Return Fund 0.56% 0.23% 0.25% 1.04%
--------------------------------------------------------------------------------------------------------------------
The Investment Company of America(R), Inc. 0.24% 0.08% 0.23% 0.55%
--------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Aggressive Portfolio 0.50% 0.00% 0.00% 0.50%
--------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderately Aggressive 0.50% 0.00% 0.00% 0.50%
Portfolio
--------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderate Portfolio 0.50% 0.00% 0.00% 0.50%
--------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderately Conservative 0.50% 0.00% 0.00% 0.50%
Portfolio
--------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Conservative Portfolio 0.50% 0.00% 0.00% 0.50%
--------------------------------------------------------------------------------------------------------------------
MAS Funds Fixed Income Portfolio 0.38% 0.11% 0.00% 0.49%
--------------------------------------------------------------------------------------------------------------------
Massachusetts Investors Growth Stock Fund - Class A 0.33% 0.00% 0.35% 0.68%
--------------------------------------------------------------------------------------------------------------------
MFS(R) Growth Opportunities Fund - Class A 0.42% 0.00% 0.19% 0.61%
--------------------------------------------------------------------------------------------------------------------
MFS(R) High Income Fund - Class A 0.44% 0.00% 0.30% 0.74%
--------------------------------------------------------------------------------------------------------------------
Morgan Stanley Institutional Fund, Inc. - Equity 0.60% 0.20% 0.25% 1.05%
Growth Portfolio - Class B
--------------------------------------------------------------------------------------------------------------------
Nationwide(R) Fund - Class D 0.50% 0.33% 0.00% 0.83%
--------------------------------------------------------------------------------------------------------------------
Nationwide(R) Growth Fund - Class D 0.58% 0.22% 0.00% 0.80%
--------------------------------------------------------------------------------------------------------------------
Nationwide Money Market Fund - Prime Shares 0.40% 0.21% 0.00% 0.61%
--------------------------------------------------------------------------------------------------------------------
Nationwide S&P 500(R) Index Fund - Institutional Service 0.13% 0.35% 0.00% 0.48%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Nationwide Income 0.45% 0.30% 0.00% 0.75%
Fund
--------------------------------------------------------------------------------------------------------------------
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
UNDERLYING MUTUAL FUND ANNUAL EXPENSES (CONTINUED)
--------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nationwide Separate Account Trust - Nationwide Small 0.98% 0.17% 0.00% 1.15%
Company Fund
--------------------------------------------------------------------------------------------------------------------
Neuberger Berman Guardian Fund, Inc. 0.70% 0.12% 0.00% 0.82%
--------------------------------------------------------------------------------------------------------------------
Neuberger Berman Partners Trust 0.85% 0.06% 0.00% 0.91%
--------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Fund - Class A 0.69% 0.26% 0.21% 1.16%
--------------------------------------------------------------------------------------------------------------------
Prestige Balanced Fund - Institutional Service Class 0.75% 0.20% 0.00% 0.95%
(formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige International Fund - Institutional Service 0.85% 0.40% 0.00% 1.25%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Growth Fund - Institutional Service 0.80% 0.25% 0.00% 1.05%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Value Fund - Institutional Service 0.75% 0.25% 0.00% 1.00%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige Small Cap Fund - Institutional Service Class 0.95% 0.25% 0.00% 1.20%
(formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Putnam International Growth Fund - Class A 0.64% 0.38% 0.25% 1.27%
--------------------------------------------------------------------------------------------------------------------
Putnam Investors Fund - Class A 0.47% 0.17% 0.25% 0.89%
--------------------------------------------------------------------------------------------------------------------
Putnam Voyager Fund - Class A 0.47% 0.18% 0.25% 0.90%
--------------------------------------------------------------------------------------------------------------------
SEI Index Funds - S&P 500 Index Portfolio 0.00% 0.40% 0.00% 0.40%
--------------------------------------------------------------------------------------------------------------------
Seligman Growth Fund, Inc. - Class A 0.70% 0.22% 0.24% 1.16%
--------------------------------------------------------------------------------------------------------------------
Short-Term Investments Trust - Treasury Portfolio - 0.06% 0.03% 0.00% 0.09%
Institutional Class
--------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock Fund(R) 0.67% 0.15% 0.00% 0.82%
--------------------------------------------------------------------------------------------------------------------
Templeton Foreign Fund - Class A 0.61% 0.27% 0.25% 1.13%
--------------------------------------------------------------------------------------------------------------------
Warburg Pincus Emerging Growth Fund - Common Class 0.90% 0.33% 0.00% 1.23%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value in calculating the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
8
<PAGE> 9
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
--------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
The Brown Company Management - Small Company Fund 1.00% 0.85% 0.00% 1.85%
--------------------------------------------------------------------------------------------------------------------
Federated Bond Fund - Class F 0.75% 0.47% 0.00% 1.22%
--------------------------------------------------------------------------------------------------------------------
Federated U.S. Government Securities Fund: 2-5 Years - 0.40% 0.39% 0.00% 0.79%
Institutional Shares
--------------------------------------------------------------------------------------------------------------------
Nationwide S&P 500(R) Index Fund - Institutional Service 0.13% 0.54% 0.00% 0.67%
Class (formerly, "Class Y")
--------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Nationwide Income 0.45% 0.44% 0.00% 0.89%
Fund
--------------------------------------------------------------------------------------------------------------------
Prestige Balanced Fund - Institutional Service Class 0.75% 2.56% 0.00% 3.31%
(formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige International Fund - Institutional Service 0.85% 5.45% 0.00% 6.30%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Growth Fund - Institutional Service 0.80% 2.66% 0.00% 3.46%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Value Fund - Institutional Service 0.75% 3.46% 0.00% 4.21%
Class (formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
Prestige Small Cap Fund - Institutional Service Class 0.95% 3.92% 0.00% 4.87%
(formerly, Class Y)
--------------------------------------------------------------------------------------------------------------------
SEI Index Funds - S&P 500 Index Portfolio 0.03% 0.41% 0.00% 0.44%
--------------------------------------------------------------------------------------------------------------------
</TABLE>
9
<PAGE> 10
EXAMPLE
The following chart shows the expenses (in dollars) that would be incurred under
the contracts assuming a $1,000 investment, 5% annual return, and no change in
expenses. These dollar figures are illustrative only and should not be
considered a representation of past or future expenses. Actual expenses may be
greater or less than those shown below.
The chart reflects expenses of both the variable account and the underlying
mutual funds. A CDSC of 5% of total purchase payments and the maximum Variable
Account Annual Expense Fee of 0.95% are assumed. In addition, the chart reflects
a Participant Account Maintenance Charge, expressed as a percentage of average
account value. Since the average contract value is greater than $1,000, the
expense effect of the Participant Account Maintenance Charge is reduced
accordingly. Deductions for premium taxes are not reflected but may apply.
For those contracts that have a different CDSC schedule, a lower Variable
Account Annual Expense Fee, and/or a lower or no Participant Account Charge, the
actual expenses are reduced.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American Century: Income & 70 113 159 284 20 63 109 234 20 63 109 234
Growth - Investor Class
- --------------------------------------------------------------------------------------------------------------------------
American Century: Growth - 67 103 141 249 17 53 91 199 17 53 91 199
Investor Class
- --------------------------------------------------------------------------------------------------------------------------
American Century: 77 132 190 347 27 82 140 297 27 82 140 297
International Discovery -
Investor Class
- --------------------------------------------------------------------------------------------------------------------------
American Century: Ultra - 70 113 159 284 20 63 109 234 20 63 109 234
Investor Class
- --------------------------------------------------------------------------------------------------------------------------
American Century: Value - 70 113 159 284 20 63 109 234 20 63 109 234
Investor Class
- --------------------------------------------------------------------------------------------------------------------------
The Brown Capital Management 76 129 185 337 26 79 135 287 26 79 135 287
- - Small Company Fund
- --------------------------------------------------------------------------------------------------------------------------
The Bond Fund of America(SM), 67 103 142 250 17 53 92 200 17 53 92 200
Inc.
- --------------------------------------------------------------------------------------------------------------------------
Dreyfus Appreciation Fund, 69 110 153 272 19 60 103 222 19 60 103 222
Inc.
- --------------------------------------------------------------------------------------------------------------------------
Dreyfus Premier Midcap Stock 74 124 177 322 244 74 127 272 24 74 127 272
Fund - Class A
- --------------------------------------------------------------------------------------------------------------------------
The Dreyfus Premier Third 70 112 156 280 20 62 106 230 20 62 106 230
Century Fund, Inc. - Class Z
- --------------------------------------------------------------------------------------------------------------------------
Evergreen Income and Growth 73 120 170 307 23 70 120 257 23 70 120 257
Fund - Class Y
- --------------------------------------------------------------------------------------------------------------------------
Federated Bond Fund - Class F 71 116 163 294 21 66 113 244 21 66 113 244
- --------------------------------------------------------------------------------------------------------------------------
Federated U.S. Government 66 99 134 234 16 49 84 184 16 49 84 184
Securities Fund: 2-5 Years -
Institutional Shares
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Advisor Growth 70 111 154 275 20 61 104 225 20 61 104 225
Opportunities Fund - Class A
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Advisor High Yield 71 115 161 289 21 65 111 239 21 65 111 239
Fund - Class T
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 11
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fidelity Capital & Income Fund 69 108 149 264 19 58 99 214 19 58 99 214
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Contrafund(R) 67 102 140 245 17 52 90 195 17 52 90 195
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Equity - Income Fund 67 103 141 248 17 53 91 198 17 53 91 198
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Magellan(R) Fund 66 101 138 242 16 51 88 192 16 51 88 192
- --------------------------------------------------------------------------------------------------------------------------
Fidelity OTC Portfolio 68 105 145 257 18 55 95 207 18 55 95 207
- --------------------------------------------------------------------------------------------------------------------------
Fidelity Puritan Fund 67 102 139 244 17 52 89 194 17 52 89 194
- --------------------------------------------------------------------------------------------------------------------------
INVESCO Dynamics Fund 71 115 161 289 21 65 111 239 21 65 111 239
- --------------------------------------------------------------------------------------------------------------------------
INVESCO Total Return Fund 71 115 161 289 21 65 111 239 21 65 111 239
- --------------------------------------------------------------------------------------------------------------------------
The Investment Company of 66 99 134 234 16 49 84 184 16 49 84 184
America(R), Inc.
- --------------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Aggressive Portfolio
- --------------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Moderately Aggressive
Portfolio
- --------------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Moderate Portfolio
- --------------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Moderately Conservative
Portfolio
- --------------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Conservative Portfolio
- --------------------------------------------------------------------------------------------------------------------------
MAS Funds Fixed Income 65 97 131 227 15 47 81 177 15 47 81 177
Portfolio
- --------------------------------------------------------------------------------------------------------------------------
Massachusetts Investors 67 103 141 249 17 53 91 199 17 53 91 199
Growth Stock Fund - Class A
- --------------------------------------------------------------------------------------------------------------------------
MFS(R) Growth Opportunities 66 101 138 241 16 51 88 191 16 51 88 191
Fund - Class A
- --------------------------------------------------------------------------------------------------------------------------
MFS(R) High Income Fund - Class 68 105 145 256 18 55 95 206 18 55 95 206
A
- --------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Institutional 71 115 161 290 21 65 111 240 21 65 111 240
Fund, Inc. - Equity Growth
Portfolio - Class B
- --------------------------------------------------------------------------------------------------------------------------
Nationwide(R) Fund - Class D 69 108 149 266 19 58 99 216 19 58 99 216
- --------------------------------------------------------------------------------------------------------------------------
Nationwide(R) Growth Fund - 68 107 148 262 18 57 98 212 18 57 98 212
Class D
- --------------------------------------------------------------------------------------------------------------------------
Nationwide Money Market Fund 66 101 138 241 16 51 88 191 16 51 88 191
- -Prime Shares
- --------------------------------------------------------------------------------------------------------------------------
Nationwide S&P 500(R) Index 65 97 131 226 15 47 81 176 15 47 81 176
Fund - Institutional Service
Class (formerly, "Class Y")
- --------------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account 68 105 145 257 18 55 95 207 18 55 95 207
Trust - Nationwide Income
Fund
- --------------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account 72 118 167 300 22 68 117 250 22 68 117 250
Trust - Nationwide Small
Company Fund
- --------------------------------------------------------------------------------------------------------------------------
Neuberger Berman Guardian 69 108 149 264 19 58 99 214 19 58 99 214
Fund, Inc.
- --------------------------------------------------------------------------------------------------------------------------
Neuberger Berman Partners 70 110 154 274 20 60 104 224 20 60 104 224
Trust
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
11
<PAGE> 12
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------------------------
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
- --------------------------------------------------------------------------------------------------------------------------
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Oppenheimer Global Fund - 72 118 167 301 22 68 117 251 22 68 117 251
Class A
- --------------------------------------------------------------------------------------------------------------------------
Prestige Balanced Fund - 70 112 156 279 20 62 106 229 20 62 106 229
Institutional Service Class
(formerly, Class Y)
- --------------------------------------------------------------------------------------------------------------------------
Prestige International Fund - 73 121 172 311 23 71 122 261 23 71 122 261
Institutional Service Class
(formerly, Class Y)
- --------------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Growth 71 115 161 290 21 65 111 240 21 65 111 240
Fund - Institutional Service
Class (formerly, Class Y)
- --------------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Value Fund 70 113 159 284 20 63 109 234 20 63 109 234
- - Institutional Service Class
(formerly, Class Y)
- --------------------------------------------------------------------------------------------------------------------------
Prestige Small Cap Fund - 73 120 169 306 23 70 119 256 23 70 119 256
Institutional Service Class
(formerly, Class Y)
- --------------------------------------------------------------------------------------------------------------------------
Putnam International Growth 73 122 173 313 23 72 123 263 23 72 123 263
Fund - Class A
- --------------------------------------------------------------------------------------------------------------------------
Putnam Investors Fund - 69 110 153 272 19 60 103 222 19 60 103 222
Class A
- --------------------------------------------------------------------------------------------------------------------------
Putnam Voyager Fund - Class A 69 110 153 273 19 60 103 223 19 60 103 223
- --------------------------------------------------------------------------------------------------------------------------
SEI Index Funds - S&P 500 64 94 126 217 14 44 76 167 14 44 76 167
Index Portfolio
- --------------------------------------------------------------------------------------------------------------------------
Seligman Growth Fund, Inc. - 72 118 167 301 22 68 117 251 22 68 117 251
Class A
- --------------------------------------------------------------------------------------------------------------------------
Short-Term Investments Trust 61 84 109 181 11 34 59 131 11 34 59 131
- - Treasury Portfolio -
Institutional Class
- --------------------------------------------------------------------------------------------------------------------------
T. Rowe Price International 69 108 149 264 19 58 99 214 19 58 99 214
Stock Fund(R)
- --------------------------------------------------------------------------------------------------------------------------
Templeton Foreign Fund - 72 117 166 298 22 67 116 248 22 67 116 248
Class A
- --------------------------------------------------------------------------------------------------------------------------
Warburg Pincus Emerging 73 121 171 309 23 71 121 259 23 71 121 259
Growth Fund - Common Class
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
12
<PAGE> 13
CONDENSED FINANCIAL INFORMATION
The accumulation unit value for each underlying mutual fund reflects changes in
the value of the underlying mutual fund and the deduction of the Variable
Account Annual Expense Fee. For specific accumulation unit value information for
each class of the underlying mutual funds, please refer to Appendix B.
FINANCIAL STATEMENTS
Financial Statements for the variable account and Nationwide are located in the
Statement of Additional Information. A current Statement of Additional
Information may be obtained without charge by contacting Nationwide's home
office at the telephone number located on page 2 of this prospectus.
SYNOPSIS OF THE CONTRACTS
The contracts are group flexible fund retirement contracts. The contracts are
designed for use in deferred compensation plans adopted by member counties under
the NACo program. The plans generally will qualify for favorable tax treatment
under Sections 401 or 457 of the Internal Revenue Code.
Nationwide issues a single group contract to the contract owner, which covers
all present and future participating employees. Nationwide will provide a
certificate to the contract owner to deliver to each retired participant or
other person for whom a Retirement Income Form is purchased. The certificate
will set forth the benefits to which the recipient is entitled. Additionally, if
legally required, Nationwide will provide a certificate to the contract owner
for delivery to any other person required by law to receive a certificate.
Nationwide establishes an account for each participant under the contract. The
account contains values and reflects activity for each participant. Plan
participants generally receive tax deferral on amounts deposited into the plan
and are taxed when amounts are distributed from the plan.
Plans established for the benefit of any organization that is exempt from
federal income tax under Section 457 of the Internal Revenue Code with the
exception of government plans, remain the sole property of the contract owner,
subject to the claims of the contract owner's general creditors. Consequently,
all amounts deferred to the plan, all income and property attributable to such
amounts remain the property of the contract owner until such amounts are made
available to participants in the plan or to the participants' beneficiaries.
Purchase payments are normally submitted monthly, but the schedule may be
adjusted to fit the contract owner's payroll practices. Purchase payments made
by or on behalf of each participant must be at least $20 per month.
The contract strives to provide each participant with:
o an initial Retirement Income Payment, which will reflect cost of living
changes during pre-retirement years (without requiring increased purchase
payments to keep pace with cost of living increases during those years);
and
o subsequent Retirement Income Payments which will vary with the cost of
living changes during his or her retired lifetime.
Although the contract strives to achieve its goals, there can be no assurance
that the contracts will achieve them.
Nationwide will apply purchase rates set forth in the contract to accumulated
amounts in participant accounts. These accumulated amounts will reflect the
investment performance of the underlying mutual funds selected by the
participant. Consequently, a participant's Retirement Income Payments will be
directly affected by his or her investment choices under the contract.
Historically, the value of a diversified portfolio of common stocks held for an
extended period of time has tended to rise during periods of inflation. However,
there is no exact correlation and for some periods, the prices of securities
have declined while the cost of living was rising.
13
<PAGE> 14
MINIMUM PURCHASE PAYMENTS
Purchase payments for each participant must be at least $20 per month.
CHARGES AND EXPENSES
Nationwide does not deduct a sales charge from purchase payments upon deposit
into the contract. However, Nationwide may deduct a CDSC if any amount is
withdrawn from the contract. This CDSC reimburses Nationwide for sales expenses.
The amount of the CDSC will not exceed 5% of purchase payments surrendered.
Nationwide may assess a Participant Account Maintenance Charge. This charge
varies from contract to contract and will not be assessed unless specifically
agreed upon by the contract owner and Nationwide. The maximum Participant
Account Maintenance Charge is $50 (see "Participant Account Maintenance
Charge").
Nationwide can deduct a Variable Account Annual Expense Fee at a maximum rate of
0.95% of average account value. Nationwide can assess this fee in return for
bearing certain risks and administrative expenses. The Variable Account Annual
Expense Fee is negotiable and varies from contract to contract to reflect unique
plan characteristics. This fee does not reflect deductions made by the
underlying mutual funds (see "Variable Account Annual Expense Fee").
The CDSC, Participant Account Maintenance Charge, and Variable Account Annual
Expense Fee, when negotiated, may be decreased upon notice to the contract owner
(see "Modification of the Contract").
RETIREMENT INCOME PAYMENTS
Retirement income payments begin on the annuitization date. Payments are based
on the retirement income form chosen (see "Retirement Income Payments" and
"Retirement Income Forms").
TAXATION
How the contracts are taxed depends on the type of contract issued and the
purpose for which the contract is issued. Nationwide will charge against the
contract any premium taxes levied by any governmental authority (see "Federal
Tax Considerations" and "Premium Taxes").
NATIONWIDE LIFE INSURANCE COMPANY
Nationwide is a stock life insurance company organized under Ohio law in March,
1929. Nationwide is a member of the Nationwide group of companies with its home
office at One Nationwide Plaza, Columbus, Ohio 43215. Nationwide is a provider
of life insurance, annuities and retirement products. It is admitted to do
business in all states, the District of Columbia and Puerto Rico.
NATIONWIDE INVESTMENT SERVICES CORPORATION
The contracts are underwritten and distributed by Nationwide Investment Services
Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215. (For contracts
issued in the State of Michigan, all references to NISC shall mean Nationwide
Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of Nationwide.
INVESTING IN THE CONTRACT
THE VARIABLE ACCOUNT AND UNDERLYING MUTUAL FUNDS
The variable account is a separate account that invests in the underlying mutual
funds listed in Appendix A. Nationwide established the variable account on
September 7, 1988, pursuant to Ohio law. Although the variable account is
registered with the SEC as a unit investment trust pursuant to the Investment
Company Act of 1940 ("1940 Act"), the SEC does not supervise it or the
management of Nationwide.
Income, gains, and losses credited to, or charged against, the variable account
reflect the variable account's own investment experience and not the investment
experience of Nationwide's other
14
<PAGE> 15
assets. The variable account's assets are held separately from Nationwide's
assets and are not chargeable with liabilities incurred in any other business of
Nationwide. Nationwide is obligated to pay all amounts promised to contract
owners under the contracts.
The variable account is divided into sub-accounts, each corresponding to a
single underlying mutual fund. Nationwide uses the assets of each sub-account to
buy shares of the underlying mutual funds based on contract owner instructions.
Each underlying mutual fund's prospectus contains more detailed information
about that fund. Prospectuses for the underlying mutual funds should be read in
conjunction with this prospectus.
Voting Rights
Contract owners who have allocated assets to the underlying mutual funds are
entitled to certain voting rights. Nationwide will vote contract owner shares at
special shareholder meetings based on contract owner instructions. However, if
the law changes and Nationwide is allowed to vote in its own right, it may elect
to do so.
Contract owners with voting interests in an underlying mutual fund will be
notified of issues requiring the shareholders' vote as soon as possible before
the shareholder meeting. Notification will contain proxy materials and a form
with which to give Nationwide voting instructions. Nationwide will vote shares
for which no instructions are received in the same proportion as those that are
received.
The number of shares which a contract owner may vote is determined by dividing
the cash value of the amount they have allocated to an underlying mutual fund by
the net asset value of that underlying mutual fund. Nationwide will designate a
date for this determination not more than 90 days before the shareholder
meeting.
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other
insurance companies, as well as through other separate accounts of Nationwide.
Nationwide does not anticipate any disadvantages to this. However, it is
possible that a conflict may arise between the interests of the variable account
and one or more of the other separate accounts in which these underlying mutual
funds participate.
Material conflicts may occur due to a change in law affecting the operations of
variable life insurance policies and variable annuity contracts, or differences
in the voting instructions of the contract owners and those of other companies.
If a material conflict occurs, Nationwide will take whatever steps are necessary
to protect contract owners and variable annuity payees, including withdrawal of
the variable account from participation in the underlying mutual fund(s)
involved in the conflict.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying
mutual fund for shares already purchased or to be purchased in the future if
either of the following occurs:
1) shares of a current underlying mutual fund are no longer available for
investment; or
2) further investment in an underlying mutual fund is inappropriate.
No substitution, elimination, or combination of shares may take place without
the prior approval of the SEC.
CHARGES AND DEDUCTIONS
The charges and fees described in this section vary from contract to contract,
depending on plan characteristics and the particular needs and preferences of
contract owners. Generally, the charges and fees are negotiable. This
flexibility allows Nationwide and the contract owner to custom design a charge
structure that meets the financial goals of both the contract owners and
Nationwide.
While a contract is in effect, a circumstance may arise that would require a
renegotiation of the
15
<PAGE> 16
contract terms. In this situation, charges and fees will not be higher than
those in effect before the re-negotiation. In other words, the charges and fees
of a renegotiated contract may decrease, but under no circumstances will they
increase.
PARTICIPANT ACCOUNT MAINTENANCE CHARGE
Nationwide may assess a Participant Account Maintenance Charge to reimburse it
for administrative expenses involved in issuing and maintaining the contracts.
The maximum Participant Account Maintenance Charge is $50. Nationwide will not
assess this charge unless it is negotiated and contractually agreed upon by
Nationwide and the contract owner.
Generally, by negotiating a higher Participant Account Maintenance Charge, a
contract owner can expect to lower other charges that are assessed in connection
with the contract. Conversely, a contract owner that negotiates a lower
Participant Account Maintenance Charge can expect to incur higher charges
elsewhere in the expense structure.
If a Participant Account Maintenance Charge is negotiated, it will be assessed
against each applicable participant in the plan. Nationwide will deduct the
charge from each participant's account on the participant anniversary, which is
the anniversary of the date accumulation units were first credited to the
participant's account. Each year's deduction will compensate Nationwide for
expenses incurred during the previous year. The deduction will occur during both
the accumulation and annuity payment periods.
The Participant Account Maintenance Charge is made by canceling a number of
accumulation units during both the accumulation and annuity periods, equal in
value to the applicable charge. If a participant account includes more than one
sub-account, the deduction will be allocated among sub-accounts on the basis of
relative values at the time the deduction is made.
On the date that a full withdrawal is taken from a participant's account,
Nationwide will deduct a pro-rated Participant Account Maintenance Charge. The
amount of the charge will be 1/12 of the applicable Participant Account
Maintenance Charge, multiplied by the number of whole or partial months between
the last participant anniversary (or participant effective date during the first
year of a participant account) and the withdrawal date.
The deduction for the Participant Account Maintenance Charge will be taken
proportionately from each sub-account based on relative value at the time the
deduction is made.
This contract may be used by a plan in conjunction with other investment
options, such as Nationwide's Group Fixed Fund Retirement Contract. In this
case, the deduction for the Participant Account Maintenance Charge may be
reduced so that the combined total of the Participant Account Maintenance Charge
and any similar charges imposed under other investment options does not exceed
the Participant Account Maintenance Charge negotiated for this contract. The
charge will be deducted proportionately from the sub-accounts and amounts held
in the other investment options based on the relative values at the time the
deduction is made.
THE PARTICIPANT ACCOUNT MAINTENANCE CHARGE WILL NOT BE ASSESSED UNLESS
NEGOTIATED BETWEEN NATIONWIDE AND THE CONTRACT OWNER.
VARIABLE ACCOUNT ANNUAL EXPENSE FEE
Nationwide can deduct a Variable Account Annual Expense Fee up to a maximum rate
of 0.95% of average account value in exchange for assuming various risks and
administrative expenses associated with the contracts. This fee is subject to
negotiation and can vary for each contract to reflect unique plan
characteristics.
The following factors may be considered in negotiating the amount of this fee:
1) plan size;
2) the number of eligible employees;
3) the number of plan participants;
4) demographics of the plan participants;
5) general economic conditions;
16
<PAGE> 17
6) the varying costs associated with the underlying mutual funds that are
offered in the contract;
7) the type of contract (e.g. allocated vs. unallocated);
8) distribution costs;
9) any recovery of credits on initial transfers; and
10) other factors Nationwide deems relevant.
CONTINGENT DEFERRED SALES CHARGE
No sales charge is deducted from purchase payments when amounts are deposited
into the contracts. However, if any part of the contract is surrendered,
Nationwide will deduct a CDSC when applicable. The CDSC is used to cover sales
expenses, including commissions, production of sales material, and other
promotional expenses. If expenses are greater than the CDSC, Nationwide will
make up any shortfall from its general account.
Regardless of the CDSC schedule chosen, no CDSC will be assessed against
distributions paid as:
o a life income payment option;
o a designated period payment option of 5 or more years for a participant
who has a minimum of 5 participant account years before the beginning of
the benefit payments; and
o a single-sum or periodic payment resulting from a participant's death.
Contracts Issued Beginning July 1, 1985 and Before May 1, 1998
If the contract owner terminates the contract in accordance with the section
entitled "Suspension and Termination" and directs Nationwide to withdraw all or
part of the contract value, Nationwide will assess a CDSC from each
participant's account as indicated below. For purposes of calculating the CDSC,
withdrawals are considered to come first from the oldest purchase payment made
to the contract, then the next oldest purchase payment, and so forth. Earnings
are not subject to the CDSC, however, earnings may not be distributed prior to
the distribution of all purchase payments.
The following CDSC schedule applies to contracts issued beginning July 1, 1985
and before the later of May 1, 1998 or the date on which state insurance
authorities approve contract modifications.
------------------------- -------------------------
Number of Completed
Years of Participation
CDSC Percentage (Beginning July 1,
1985)*
------------------------- -------------------------
4% 1 through 12
------------------------- -------------------------
3% 13
------------------------- -------------------------
2% 14
------------------------- -------------------------
1% 15
------------------------- -------------------------
0% 16 and after
------------------------- -------------------------
* The "Number of Completed Years of Participation" is determined beginning with
the participant's first deferral into the contract.
In any event, no CDSC will be assessed against withdrawals taken on or after
January 1, 2001 for contracts issued beginning July 1, 1985 and before the later
of May 1, 1998 or the date on which state insurance authorities approve contract
modifications.
When a CDSC of less than 4% is negotiated and assessed, the reduced charge may
reflect actual variations in expenses, usually resulting from reduced expenses
to Nationwide in connection with case acquisition costs, plan start-up expenses,
commissions and marketing expenses. Nationwide will not apply any deductions in
a discriminatory manner.
Contracts Issued On or After May 1, 1998
For contracts issued on or after the later of May 1, 1998 or the date on which
state insurance authorities approve contract modifications, a CDSC may be
negotiated and assessed.
The total CDSC assessed to any participant will never exceed 5% (or a lesser
percentage, if applicable) of the total purchase payments made on behalf of the
participant for the 16 years before the surrender date.
When a CDSC of less than 5% is negotiated and assessed, the reduced charge may
reflect actual
17
<PAGE> 18
variations in expenses, usually resulting from reduced expenses to Nationwide in
connection with case acquisition costs, plan start-up expenses, commissions and
marketing expenses. Nationwide will not apply any deductions in a discriminatory
manner.
PREMIUM TAXES
Nationwide may charge against the contract value any premium taxes levied by a
state or other government entity. Premium tax rates currently range from 0% to
5.0%. This range is subject to change. The method used to assess premium tax
will be determined by Nationwide at its sole discretion in compliance with state
law.
If applicable, Nationwide will deduct premium taxes from the contract either at:
(1) the time the contract is surrendered;
(2) annuitization; or
(3) such earlier date as Nationwide becomes subject to premium taxes.
Premium taxes may be deducted from death benefit proceeds.
CONTRACT RIGHTS
The contract owner owns the contract for the exclusive benefit of the plan's
participants and beneficiaries. Contractual rights may be exercised by the
contract owner subject to those rights specifically reserved in the plan
documents for participants, either as a group or as individuals. The contract
owner may not take any action inconsistent with the rights of the plan's
participants. The contract may not be assigned.
OPERATION OF THE CONTRACT
MINIMUM PURCHASE PAYMENTS
Purchase payments for each participant must be at least $20 per month. Payments
must be made no less frequently than monthly, unless Nationwide agrees
otherwise.
APPLICATION OF PURCHASE PAYMENTS
Initial purchase payments allocated to sub-accounts will be priced at the
accumulation unit value determined no later than 2 business days after receipt
of an order to purchase if the application and all necessary information are
complete. If the application is not complete, Nationwide may retain a purchase
payment for up to 5 business days while attempting to complete it. If the
application is not completed within 5 business days, the participant will be
informed of the reason for the delay. The purchase payment will be returned
unless the participant specifically allows Nationwide to hold the purchase
payment until the application is completed.
Subsequent purchase payments will be priced based on the next available
accumulation unit value after the payment is received.
Purchase payments will not be priced when the New York Stock Exchange is closed
or on the following nationally recognized holidays:
o New Year's Day o Independence Day
o Martin Luther King, Jr. Day o Labor Day
o Presidents' Day o Thanksgiving
o Good Friday o Christmas
o Memorial Day
Nationwide also will not price purchase payments if:
(1) trading on the New York Stock Exchange is restricted;
(2) an emergency exists making disposal or valuation of securities held in
the variable account impracticable; or
(3) the SEC, by order, permits a suspension or postponement for the
protection of security holders.
Rules and regulations of the SEC will govern as to when the conditions described
in (2) and (3) exist. If Nationwide is closed on days when the New York Stock
Exchange is open, account value may be affected since the contract owner will
not have access to their account.
18
<PAGE> 19
When permissible under state insurance law, Nationwide may credit up to 8% of an
initial transfer into the contract. An initial transfer is the amount
transferred into the contract from a non-Nationwide investment product. It
serves as the initial purchase payment under the contract. This credit will
reimburse the contract owner for any exit penalty assessed by the previous
provider. Nationwide will recover this credit by reducing service agent and/or
broker compensation or through the negotiation of an increased Participant
Account Maintenance Charge or Variable Account Annual Expense Fee.
ALLOCATION OF PURCHASE PAYMENTS
Nationwide allocates purchase payments to each participant's account as
instructed by the contract owner. Shares of the underlying mutual funds
allocated to the sub-accounts are purchased at net asset value, then converted
into accumulation units. The contract owner, or the participant if the plan so
permits, may change allocations among sub-accounts for future purchase payments.
However, no change may be made that would result in an amount less than 1% of
the purchase payments being allocated to any sub-account for any participant.
Nationwide will accept these changes as frequently as permitted by the plan. An
allocation change will not affect the allocation of purchase payments before the
change.
DETERMINING VARIABLE ACCOUNT VALUE - VALUING AN ACCUMULATION UNIT
Purchase payments or transfers allocated to sub-accounts are accounted for in
accumulation units. Accumulation unit values (for each sub-account) are
determined by calculating the net investment factor for the underlying mutual
funds for the current valuation period and multiplying that result with the
accumulation unit values determined on the previous valuation period.
Nationwide uses the net investment factor as a way to calculate the investment
performance of a sub-account from valuation period to valuation period. For each
sub-account, the net investment factor shows the investment performance of the
underlying mutual fund in which a particular sub-account invests, including the
charges assessed against that sub-account for a valuation period.
The net investment factor for any particular sub-account is determined by
dividing (a) by (b), and then subtracting (c) from the result, where:
(a) is:
(1) the net asset value of the underlying mutual fund as of the end of
the current valuation period; and
(2) the per share amount of any dividend or income distributions made by
the underlying mutual fund (if the ex-dividend date occurs during
the current valuation period);
(b) is the net asset value of the underlying mutual fund determined as of the
end of the preceding valuation period; and
(c) is a factor representing the daily variable account charges, which may
include charges for contract options chosen by the contract owner. The
factor is equal to an annual rate ranging from 0.00% to 0.95% of the
daily net assets of the variable account, depending on unique plan
characteristics.
Based on the change in the net investment factor, the value of an accumulation
unit may increase or decrease. Changes in the net investment factor may not be
directly proportional to changes in the net asset value of the underlying mutual
fund shares because of the deduction of variable account charges.
Though the number of accumulation units will not change as a result of
investment experience, the value of an accumulation unit may increase or
decrease from valuation period to valuation period.
DETERMINING THE PARTICIPANT ACCOUNT VALUE
A participant's account value is equal to the sum of the value of all
accumulation units credited to the participant's account. The number of
accumulation units credited to each participant
19
<PAGE> 20
account for each sub-account is determined by dividing the amount allocated to
that sub-account for that participant by the accumulation unit value for that
sub-account for the valuation period the purchase payment was received.
The value of a participant's account on any day can be determined by multiplying
the total number of accumulation units credited to the participant's account for
each sub-account by the current accumulation unit value for that sub-account.
Each participant and the contract owner will be advised periodically of the
number of accumulation units credited to his or her account for each
sub-account, the current accumulation unit values, and the total value of his or
her account. These reports are for informational purposes only and do not mean
that a participant has any rights in his or her account beyond those provided
for in the plan.
EXCHANGE PRIVILEGE
The contract owner, or the participant if the plan so provides, may exchange
amounts among the sub-accounts as frequently as permitted by the plan, subject
to the limits and rules set by each underlying mutual fund. Certain plans may
impose limitations on participant exchange privileges as a consequence of
agreements entered into to purchase mutual funds or other investments unrelated
to the contract.
For those plans funded by this contract and Nationwide's Group Fixed Fund
Retirement Contract, the contract owner, or the participant if the plan so
provides, may exchange values between any sub-account and the Group Fixed Fund
Retirement Contract. Exchanges from the Nationwide Group Fixed Fund Retirement
Contract to any sub-account will be subject to the limitations of the Nationwide
Group Fixed Fund Retirement Contract. Exchanges will be effective when received
in good order at Nationwide's home office.
If Nationwide receives the exchange request before the end of a valuation date,
the exchange will receive the accumulation unit values of that date. However, if
Nationwide receives the exchange request after the close of business on a
valuation date, the exchange will receive the next valuation date's accumulation
unit value.
Certain plans may select investment options, unrelated to the annuity contract,
that may impose limitations affecting the exchange privileges associated with
the investment options available in the annuity contract.
One such investment option that may be chosen is the Morley Stable Value
Retirement Fund. Although the Morley Stable Value Retirement Fund may be
purchased by plans as an investment option outside the variable annuity contract
described in this prospectus, the Morley Stable Value Retirement Fund may impose
restrictions on amounts that may be directly transferred to options which are
considered "competing investment options."
Competing investment options include the Nationwide Money Market Fund - Prime
Shares, the Federated U.S. Government Securities Fund: 2-5 Years: Institutional
Shares, Short-Term Investments Trust - Treasury Portfolio - Institutional Class
and the Nationwide Fixed Account Option. If the Morley Stable Value Retirement
Fund is available in your Plan, amounts withdrawn from the Morley Stable Value
Retirement Fund may not be transferred to a "competing investment option" for a
period of at least 90 days.
The Morley Stable Value Retirement Fund is operated by Morley Capital
Management, Inc. and advised by Union Bond and Trust; both entities are
wholly-owned subsidiaries of Nationwide Financial Services, Inc.
There is no charge assessed for any exchanges.
EXCHANGE REQUESTS
In addition to submitting exchange requests in writing, the participant may also
make exchanges by telephone and the internet, provided that the contract owner
executes documents agreeing to certain restrictions applicable to these
privileges. Telephone and internet exchange requests must be received by
Nationwide by the close of the New York Stock Exchange in order to receive that
day's closing sub-account price.
20
<PAGE> 21
Nationwide will use reasonable procedures to confirm that telephone and internet
instructions are genuine and will not be liable for following telephone or
internet instructions that it reasonably determined to be genuine. Nationwide
may withdraw the telephone and/or internet exchange privilege upon 30 days
written notice to contract owners and participants.
EXPERIENCE CREDITS
Depending on the state in which the contract was issued, the contracts are
either participating or non-participating. Contract owners of participating
contracts have the right to receive any surplus distributed by Nationwide. A
surplus distribution will occur if Nationwide's Board of Directors determines
that charges and fees assessed under the contracts were higher than necessary to
maintain the contracts. Nationwide will distribute any surplus by purchasing
additional accumulation units and crediting them to participant accounts. To
date, Nationwide has not made any surplus distributions to participant accounts
and Nationwide does not guarantee that there will be a surplus distribution in
the future. Non-participating contracts do not have the right to receive surplus
distributions.
MODIFICATION OF THE CONTRACT
The following charges may be decreased if negotiated, upon notice to the
contract owner:
o Contingent Deferred Sales Charge
o Participant Account Maintenance Charge
o Variable Account Annual Expense Fee
No modifications may be made prior to the first contract anniversary.
Nationwide may change any other provision of the contract by giving notice to
contract owners not less than 90 days before the change is to be effective.
CONTRACT SUSPENSION AND TERMINATION
Nationwide may suspend the contract at any time upon written notice to contract
owners if:
a) the contract owner fails to remit to Nationwide any purchase payment
specified in the plan; or
b) Nationwide rejects a plan amendment submitted by the contract owner that
Nationwide determines would adversely affect the contract's financial
experience.
The contract owner may suspend the contract at any time upon 90 days written
notice to Nationwide. Suspension will become effective on the 91st day after
Nationwide receives the notice. If a contract is suspended, Nationwide will not
accept new purchase payments, except by mutual consent. All other contract terms
will continue to apply.
Once the suspension is effective, the contract owner may, upon 30 days written
notice to Nationwide, terminate the contract. Termination will become effective
on the 31st day after Nationwide receives the notice. Upon termination,
Nationwide will pay to the contract owner:
1) the redemption value of participant accounts, less any applicable CDSC;
and
2) the balance of the annual payment amounts in Nationwide's General Account
transferred to make Retirement Income Payments under Retirement Income
Forms B1 and B2.
REDEMPTION OF PARTICIPANT ACCOUNTS
The contract owner's right to redeem participant accounts, either fully or
partially, will be governed by the terms of the plan.
If the plan so permits, the contract owner may redeem a participant account,
fully or partially, at any time before Retirement Income Payments begin under
Option B1 or B2 (see "Retirement Income Forms"). A partial redemption will not
affect requirements to make future purchase payments to that participant account
or that participant's retirement date.
For partial redemptions, Nationwide will cancel accumulation units from the
sub-accounts. The
21
<PAGE> 22
requested dollar amount cannot exceed available accumulation unit value. The
contract owner must instruct Nationwide how the redemption should be taken from
the sub-accounts. If no instruction is given, the redemption will be taken
proportionately from each sub-account based on the value of each sub-account at
the time of the redemption.
Instead of a lump sum distribution of a full or partial redemption, the contract
owner (or participant, if permitted by the plan) may elect to have the
redemption paid pursuant to Retirement Income Form A1 or A2, subject to the
minimums applicable to these options.
If the contract owner terminates the contract, all participant accounts under
that contract will be redeemed as permitted by the plan. A CDSC may apply.
However, absent contract termination, no CDSC will apply to full or partial
redemptions.
Nationwide will pay all redemption amounts to the contract owner. The contract
owner is obligated to distribute these amounts to the participant. The contract
owner and Nationwide may agree to have Nationwide pay these amounts directly to
the participant.
Nationwide will pay any redemption amounts within 7 days of receiving the
redemption request. However, Nationwide may suspend or postpone payment when:
(1) the New York Stock Exchange is closed;
(2) trading on the New York Stock Exchange is restricted;
(3) an emergency is declared by the SEC making disposal or valuation of
securities held in the variable account impracticable; or
(4) the SEC, by order, permits a suspension or postponement for the
protection of security holders.
Rules and regulations of the SEC will govern as to when the conditions described
in (2) and (3) exist. If Nationwide is closed on days when the New York Stock
Exchange is open, contract value may be affected since the contract owner and/or
participant would not have access to their account.
Participant account value upon full surrender may be more or less than the total
of all purchase payments.
RETIREMENT PERIOD
ADDITIONAL PURCHASE PAYMENT BEFORE BEGINNING RETIREMENT INCOME PAYMENTS
The contract owner may make one additional purchase payment to each
participant's account in order to increase Retirement Income Payments. The
contract owner must notify Nationwide of this election in the documentation
electing the Retirement Income Form and retirement date (see "Election of
Retirement Income Form and Date"). The purchase payment must be made by the last
business day before Retirement Income Payments begin. This purchase payment is
subject to any applicable premium taxes.
The annuity rates under the contract apply to the entire value, including any
such additional purchase payment that does not exceed 5 times the purchase
payments allocated to a participant's account before the date of notice is
given. Any amount in excess of this amount may be applied at annuity rates
currently offered to this type of contract.
RETIREMENT INCOME PAYMENTS
The distribution period is the period during which a participant account is paid
out in installments. Since the distribution period usually occurs after a
participant retires, it is also referred to as the retirement period.
Nationwide will pay all retirement distributions to the contract owner. The
contract owner is obligated to distribute these amounts to the participant. The
contract owner and Nationwide may agree to have Nationwide pay these amounts
directly to the participant.
Upon retirement, a participant's account value can be used to purchase either a
fixed dollar annuity, a variable payment annuity, or an available combination of
both.
22
<PAGE> 23
Nationwide is obligated to make payments under a variable payment annuity.
However, the amount of each payment is not guaranteed. Variable payment amounts
will reflect the investment performance of the sub-accounts, but will not be
affected by adverse mortality experience or by increased expenses.
A fixed dollar annuity provides for payments that are guaranteed as to dollar
amount during the distribution period. Upon retirement, the participant's
account value is used to purchase a contract fund by Nationwide's general
account. Once this contract has been purchased, the participant's account will
no longer vary with the investment performance of the underlying mutual funds.
To determine the amount of the first fixed dollar annuity payment, the value is
applied to the applicable annuity table based on the distribution schedule
elected. The fixed payment annuity can be distributed in any of the forms listed
under the provision "Retirement Income Forms." Specifically, they can be
distributed as:
1) payments for a designated period;
2) payments of a designated amount;
3) life income with payment certain; or
4) joint and survivor life income.
Fixed dollar annuities are available under a plan upon the contract owner's
election.
ELECTION OF RETIREMENT INCOME FORM AND DATE
The contract provides for Retirement Income Payments to begin on the date and
under the retirement options set forth in the plan. At least one month before
Retirement Income Payments are set to begin, the contract owner may elect one of
the retirement income options set forth in this prospectus. Nationwide must
receive this election in writing. The plan may restrict changes in the
retirement income option elected.
If, at retirement, the present value of a participant's account is less than
$5,000, Nationwide may make a lump sum distribution instead of periodic
payments.
RETIREMENT INCOME FORMS
Retirement distributions may take any of the following forms, as permitted by
the plan:
AMOUNT AND PERIOD CERTAIN OPTIONS
Option A1: Payments for a Designated Period
Payments will be made monthly for a set number of years not to exceed 30
years. The amount of each payment will vary with the performance of the
underlying mutual funds in which the participant account invests.
Nationwide calculates each payment by multiplying (a) by (b), where:
(a) is the accumulation unit value on the day the payment is made; and
(b) is the number of accumulation units applied under this option
divided by the number of payments selected.
Once the amount of the payment is calculated, Nationwide will cancel
available accumulation units to equal the dollar amount of that payment.
Exchanges between the investment options are permitted subject to the
limitations set forth in the Group Fixed Fund Retirement Contract.
Exchanges may cause the number of accumulation units to change,
necessitating a recalculation of the payment amount.
If the period selected under this option is less than 5 years, and the
participant has less than 5 participant account years, a CDSC will be
assessed against each payment.
Option A2: Payments of a Designated Amount
Payments will be made monthly in equal installments of a set amount (not
less than $25 per month) until no accumulation units remain in the
participant account. The participant's account is adjusted each valuation
date to reflect investment results. Nationwide will cancel accumulation
units up to the designated dollar amount of the payment.
Exchanges between the investment options are permitted subject to the
limitations set forth in the Group Fixed Fund Retirement Contract.
23
<PAGE> 24
If election of this option results in a payment period of less than 5
years, and the participant has less than 5 Participant Account Years, a
CDSC will be assessed against each payment.
LIFE INCOME OPTIONS
For the following options, payments will be determined annually and will remain
level throughout the year. Each year, on the anniversary of the beginning of
Retirement Income Payments, a new monthly payment will be determined. That new
payment will remain level for that year.
Nationwide will use the retired participant's adjusted age to determine each
year's set monthly payment. This adjusted age may not be the same as the retired
participant's actual age.
Life income options are based on:
o the mortality tables specified in the contract;
o the adjusted age of the retired participant;
o the type of Retirement Income Payment option(s) selected; and
o in the case of variable payments, the investment performance of the
specific sub-accounts elected.
Option B1: Life Income with Payment Certain
Payments will be made monthly during an individual's lifetime for a set
period of 60, 120, 180, 240, 300 or 360 months, as elected. If the
individual dies before the end of the selected period, level payments will
continue to the beneficiary during the remainder of the selected period.
Unless prohibited by the plan, the beneficiary may elect at any time to
receive the present value of the remaining number of payments in a single
payment, calculated using the same assumed investment rate used previously.
Nationwide will cancel accumulation units up to the designated dollar
amount of each payment.
Option B2: Joint and Survivor Life Income
Payments will be made monthly during the joint lifetime of the participant
and a beneficiary. Payments will be made as long as either of the two is
living. If the participant predeceases the beneficiary, payments will
continue to be paid to the beneficiary at 100%, 75%, 66 2/3% or 50% of the
original payment amount as elected until the beneficiary's death. If the
beneficiary predeceases the participant, payments will continue at 100% to
the participant.
Nationwide will cancel accumulation units up to the designated dollar
amount of each payment.
Other Options
Alternate distribution methods may be used with Nationwide's consent.
Frequency of Payment
The retired participant, with the contract owner's consent, may receive payments
under any option annually, semi-annually, or quarterly instead of monthly. Any
change in frequency of payments must be on the anniversary of the beginning of
Retirement Income Payments.
Withdrawal
If allowed by the plan, any amount remaining under option A1 or A2 may be
withdrawn. If that amount is at least $5,000, the withdrawn amount may be
applied to option B1 or B2, subject to minimum payment requirements.
DETERMINATION OF LIFE INCOME PAYMENTS
The amount of annuity payments will vary depending on the performance of the
underlying mutual funds selected.
Assumed Investment Rate
An assumed investment rate is the percentage rate of return assumed to determine
the amount of the first payment under a variable payment annuity. Nationwide
uses the assumed investment rate of 3.5% to calculate the first annuity payment
and to calculate the investment performance of an underlying mutual fund in
24
<PAGE> 25
order to determine subsequent payments under a variable payment annuity. If not
prohibited by law, a contract owner may, at contract issuance, elect an
alternated assumed investment rate of 5% per annum. The choice of assumed
investment rate affects the pattern of Retirement Income Payments. An assumed
investment rate is the percentage rate of return required to maintain level
variable annuity payments. Subsequent variable annuity payments may be more or
less than the first payment based on whether actual investment performance is
higher or lower than the assumed investment rate.
Value of an Annuity Unit
Annuity unit values for sub-accounts are determined by multiplying the net
investment factor for the valuation period for which the annuity unit is being
calculated by the immediately preceding valuation period's annuity unit value,
and multiplying the result by an interest factor to neutralize the assumed
investment rate built into the variable payment annuity purchase rate basis in
the contracts.
First Year's Payments
To determine the monthly payment that will be distributed monthly for the first
year after retirement, Nationwide first determines the participant's account
value as of the retirement date. This value is found by multiplying the number
of accumulation units in each sub-account for that participant's account by the
accumulation unit value for that sub-account on the last business day of the
second calendar week before the date the first payment will be made.
Based on the participant's account value, Nationwide then determines the amount
of each monthly payment. The monthly payment amount is found by dividing the
accumulation unit value of that sub-account in the participant's account by the
amount required to provide $1 per month (the purchase rate).
Once the monthly payment amount is found, Nationwide multiplies the payment by
12 to get the total payment for the year. Then Nationwide cancels the number of
accumulation units from the participant's account to equal the total payments
for the year. The accumulation units will be canceled from each sub-account in
the same proportion that new purchase payments are allocated. The value is then
transferred to Nationwide's general account from which monthly payments are
made.
The total annual amount is calculated so that if there are no partial
redemptions, and no underlying mutual fund dividends are taken in cash, the
monthly payments will be level as long as the net investment factor equals the
assumed investment rate plus an amount equal to the annual administrative
charge. Payments in subsequent years will vary depending on how the
sub-accounts' performance compares to the assumed investment rate.
Second and Subsequent Years' Payments
On each anniversary of the beginning of Retirement Income Payments, the second
year's monthly payment amount will be calculated. The calculation will be
performed in the same manner as the first year's payment, except that the
current participant account value will be used. Similarly, accumulation units
will be cancelled and the value will be transferred to Nationwide's general
account, from which monthly payments will be made. Subsequent years' payments
will be calculated in the same fashion on each anniversary date.
DEATH OF PARTICIPANT
PARTICIPANT DEATH BEFORE RETIREMENT
If a participant dies before beginning Retirement Income Payments, a death
benefit equal to the participant's account value is payable as set forth in the
plan. The death benefit will be paid when Nationwide:
1) receives and verifies the participant's death; and
2) verifies beneficiary designations.
25
<PAGE> 26
If the plan so provides, the beneficiary may receive the death benefit:
1) as a lump sum; or
2) in the form of a Retirement Income Form contained in the contract,
subject to applicable minimums. Retirement Income Payments may be fixed,
variable, or a combination of both.
DEATH OF RETIRED PARTICIPANT
If a retired participant dies while receiving payments, any payment due will be
determined according to the Retirement Income Form elected. The calculation of
the net present value of any remaining payments under a period certain option
will be based on the same assumed investment rated used in determining the
payments before the retired participant's death.
The participant account will be reduced by the number of accumulation units not
required to provide further payments during the remainder of a period certain,
if any, or to a contingent retired participant. Depending on Nationwide's
obligation under the contract, the accumulation units will either remain in the
variable account or be transferred to Nationwide's general account.
FEDERAL TAX CONSIDERATIONS
Tax advantages that may be associated with the contracts described in this
prospectus will depend on:
o the type of contract purchased; and
o the purposes for which the contract is purchased.
Nationwide does not guarantee the tax status of the contracts or any
transactions involving the contracts. If the contract is purchased as the
investment or funding medium for certain retirement plans, tax advantages
enjoyed by the contract owner and/or annuitant may relate to participation in
the plan rather than ownership of the annuity contract.
The contracts are treated as a trust under rules similar to Internal Revenue
Code Section 401(f).
Under existing federal income tax law, Nationwide is not required to pay taxes
on the variable account's investment income when it is credited to contract
owners. Nationwide is taxed as a life insurance company under Part One,
Subchapter L of the Internal Revenue Code.
Contract owners would normally be taxed on income and capital gains earned under
the contract, whether or not taken in cash. However, the contracts are issued
only to organizations exempt from federal income tax.
Distributions will normally contain purchase payments that were not previously
included in the participant's gross income. Upon distribution, these amounts
should be included in the gross income of the recipient.
The contract owner is responsible for ensuring that the plan is established and
administered in accordance with the provisions set forth in the Internal Revenue
Code.
CONTRACTS ISSUED UNDER THE NEW YORK MODEL PLAN
In order to sell the contracts to governmental employers in the state of New
York, the following amendments must be made to the contract:
o References to "annuity" payments throughout the prospectus are modified
to mean "benefit" payments.
o The "Suspension and Termination" provision is amended to allow a
participant to "freeze" his or her account and maintain the account on
deposit with Nationwide even though the contract was terminated. The
contract owner will continue to own the account, subject to the claims of
its general creditors.
o All references to Life Income Options B1 and B2 throughout this
prospectus are deleted.
o All references to "CDSC" and "Contingent Deferred Sales Charge"
throughout this prospectus are deleted.
26
<PAGE> 27
STATEMENTS AND REPORTS
Nationwide will mail contract owners statements and reports. Therefore, contract
owners should promptly notify Nationwide of any address change.
Participants should review these reports carefully. All errors or corrections
must be reported to Nationwide immediately to assure proper crediting to the
contract. Unless Nationwide is notified within 30 days of receipt of the report,
Nationwide will assume all transactions are correct.
Nationwide will provide contract owners with the variable account's prospectus
to make available to participants. The contract owner may, under the terms of
the plan, be required to provide additional information to participants, such as
changes in the plan, changes in the tax status of the plan, or the financial
condition of the contract owner as it relates to obligations under the plan.
LEGAL PROCEEDINGS
Nationwide is a party to litigation and arbitration proceedings in the ordinary
course of its business, none of which is expected to have a material adverse
effect on Nationwide.
In recent years, life insurance companies have been named as defendants in
lawsuits, including class action lawsuits relating to life insurance and annuity
pricing and sales practices. A number of these lawsuits have resulted in
substantial jury awards or settlements.
In November 1997, two plaintiffs, one who was the owner of a variable life
insurance contract and the other who was the owner of a variable annuity
contract, commenced a lawsuit in a federal court in Texas against Nationwide and
the American Century group of defendants (Robert Young and David D. Distad v.
Nationwide Life Insurance Company et al.). In this lawsuit, plaintiffs sought to
represent a class of variable life insurance contract owners and variable
annuity contract owners whom they claim were allegedly misled when purchasing
these variable contracts into believing that the performance of their underlying
mutual fund option managed by American Century, whose shares may only be
purchased by insurance companies, would track the performance of a mutual fund,
also managed by American Century, whose shares are publicly traded. The amended
complaint seeks unspecified compensatory and punitive damages. On April 27,
1998, the District Court denied, in part, and granted, in part, motions to
dismiss the complaint filed by Nationwide and American Century. The remaining
claims against Nationwide allege securities fraud, common law fraud, civil
conspiracy, and breach of contract. The District Court, on December 2, 1998,
issued an order denying plaintiffs' motion for class certification and the
appeals court declined to review the order denying class certification upon
interlocutory appeal. On June 11, 1999, the District Court denied the
plaintiffs' motion to amend their complaint and reconsider class certification.
In January 2000 Nationwide and American Century settled this lawsuit now limited
to the claims of the two named plaintiffs. On February 9, 2000 the court
dismissed this lawsuit with prejudice.
On October 29, 1998, Nationwide was named in a lawsuit filed in Ohio state court
related to the sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide
Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life
and Annuity Insurance Company). On May 3, 1999, the complaint was amended to,
among other things, add Marcus Shore as a second plaintiff. The amended
complaint is brought as a class action on behalf of all persons who purchased
individual deferred annuity contracts or participated in group annuity contracts
sold by Nationwide and the other named Nationwide affiliates which were used to
fund certain tax-deferred retirement plans. The amended complaint seeks
unspecified compensatory and punitive damages. No class has been certified. On
June 11, 1999, Nationwide and the other named defendants filed a motion to
dismiss the amended complaint. On March 8, 2000, the Court denied the motion to
dismiss the amended complaint filed by Nationwide and the
27
<PAGE> 28
other named defendants. Nationwide intends to defend this lawsuit vigorously.
There can be no assurance that any litigation relating to pricing or sales
practices will not have a material adverse effect on Nationwide in the future.
The general distributor, NISC, is not engaged in any litigation of any material
nature.
ADVERTISING AND SUB-ACCOUNT
PERFORMANCE SUMMARY
ADVERTISING
A "yield" and "effective yield" may be advertised for the NSAT-Money Market
Fund and the Short-Term Investments Trust - Treasury Portfolio. "Yield" is a
measure of the net dividend and interest income earned over a specific seven-day
period (which period will be stated in the advertisement) expressed as a
percentage of the offering price of the fund's units. Yield is an annualized
figure, which means that it is assumed that funds generate the same level of net
income over a 52-week period. The "effective yield" is calculated similarly but
includes the effect of assumed compounding, calculated under rules prescribed by
the SEC. The effective yield will be slightly higher than yield due to this
compounding effect.
Nationwide may advertise the performance of a sub-account in relation to the
performance of other variable annuity sub-accounts, underlying mutual fund
options with similar or different objectives, or the investment industry as a
whole. Other investments to which the sub-accounts may be compared include, but
are not limited to:
o precious metals;
o real estate;
o stocks and bonds;
o closed-end funds;
o bank money market deposit accounts and passbook savings;
o CDs; and
o the Consumer Price Index.
Market Indexes
The sub-accounts will be compared to certain market indexes, such as:
o S&P 500;
o Shearson/Lehman Intermediate Government/Corporate Bond Index;
o Shearson/Lehman Long-Term Government/Corporate Bond Index;
o Donoghue Money Fund Average;
o U.S. Treasury Note Index;
o Bank Rate Monitor National Index of 2 1/2 Year CD Rates; and
o Dow Jones Industrial Average.
Tracking & Rating Services; Publications
Nationwide's rankings and ratings are sometimes published by other services,
such as:
o Lipper Analytical Services, Inc.;
o CDA/Wiesenberger;
o Morningstar;
o Donoghue's;
o magazines such as:
=> Money;
=> Forbes;
=> Kiplinger's Personal Finance Magazine;
=> Financial World;
=> Consumer Reports;
=> Business Week;
=> Time;
=> Newsweek;
=> National Underwriter;and
=> News and World Report;
o LIMRA;
o Value;
o Best's Agent Guide;
o Western Annuity Guide;
o Comparative Annuity Reports;
o Wall Street Journal;
o Barron's;
o Investor's Daily;
o Standard & Poor's Outlook; and
o Variable Annuity Research & Data Service (The VARDS Report).
These rating services and publications rank the underlying mutual funds'
performance against other funds. These rankings may or may not include the
effects of sales charges or other fees.
28
<PAGE> 29
Financial Rating Services
Nationwide is also ranked and rated by independent financial rating services,
among which are Moody's, Standard & Poor's and A.M. Best Company. Nationwide may
advertise these ratings. These ratings reflect Nationwide's financial strength
or claims-paying ability. The ratings are not intended to reflect the investment
experience or financial strength of the variable account.
Some Nationwide advertisements and endorsements may include lists of
organizations, individuals or other parties that recommend Nationwide or the
contract. Furthermore, Nationwide may occasionally advertise comparisons of
currently taxable and tax deferred investment programs, based on selected tax
brackets, or discussions of alternative investment vehicles and general economic
conditions.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the sub-accounts. Nationwide
may advertise for the sub-account's standardized average annual total return,
calculated in a manner prescribed by the SEC, and non-standardized average
annual total return ("non-standardized return").
Standardized average annual total return shows the percentage rate of return of
a hypothetical initial investment of $1,000 for the most recent one, five and
ten year periods (or for a period covering the time the underlying mutual fund
has been available in the variable account if it has not been available for one
of the prescribed periods). Any calculation will reflect the standard 7-year
CDSC schedule and the deduction of all charges that could be made to the
contracts, except for premium taxes, which may be imposed by certain states.
Non-standardized return, calculated similar to standardized average annual total
return, shows the percentage rate of return of a hypothetical initial investment
of $10,000 for the most recent one, five and ten year periods (or for a period
covering the time the underlying mutual fund has been in existence). For those
underlying mutual funds which have not been available for one of the prescribed
periods, the non-standardized return illustrations will show the investment
performance the underlying mutual funds would have achieved (reduced by the same
charges except the CDSC) had they been available in the variable account for one
of the periods. The CDSC is not reflected because the contracts are designed for
long term investment. The CDSC, if reflected, would decrease the level of
performance shown. An initial investment of $10,000 is assumed because that
amount is closer to the size of a typical contract than $1,000, which was used
in calculating the standardized average annual total return.
If the underlying mutual fund has been available in the variable account for
less than one year (or if the underlying mutual fund has been effective for less
than one year), standardized and non-standardized performance is not annualized.
The standardized average annual total return and non-standardized total return
quotations are calculated using data for the period ended December 31, 1999.
However, Nationwide generally provides performance information more frequently.
Information relating to performance of the sub-accounts is based on historical
earnings and does not represent or guarantee future results.
29
<PAGE> 30
SUB-ACCOUNT PERFORMANCE SUMMARY
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------------------------------------------------------------------------
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century: Income & Growth - Investor Class 6.84% N/A 10.84% 11/13/98
-------------------------------------------------------------------------------------------------------------------
American Century: Growth-Investor Class 23.41% 21.41% 14.11% 06/17/91
-------------------------------------------------------------------------------------------------------------------
American Century: International Discovery - Investor 76.76% N/A 70.53% 11/13/98
Class
-------------------------------------------------------------------------------------------------------------------
American Century: Ultra-Investor Class 30.13% 24.55% 15.55% 10/01/93
-------------------------------------------------------------------------------------------------------------------
The Bond Fund of America(SM), Inc. -8.50% 1.79% 2.58% 06/17/91
-------------------------------------------------------------------------------------------------------------------
The Brown Capital Management - Small Company Fund N/A N/A 23.35% 06/25/99
-------------------------------------------------------------------------------------------------------------------
Dreyfus Appreciation Fund, Inc. -1.07% N/A 1.93% 11/13/98
-------------------------------------------------------------------------------------------------------------------
Dreyfus Premier Midcap Stock Fund - Class A -0.41% N/A 7.63% 11/13/98
-------------------------------------------------------------------------------------------------------------------
The Dreyfus Premier Third Century Fund, Inc. - Class Z 18.93% 25.18% 10.43% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Evergreen Income and Growth Fund - Class Y 5.27% 9.44% 4.62% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Federated Bond Fund - Class F -13.07% N/A -14.03% 11/13/98
-------------------------------------------------------------------------------------------------------------------
Federated U.S. Government Securities Fund: 2-5 Years -11.14% -0.47% -2.50% 07/01/92
- Institutional Shares
-------------------------------------------------------------------------------------------------------------------
Fidelity Advisor Growth Opportunities Fund - Class A -6.90% N/A -1.12% 11/13/98
-------------------------------------------------------------------------------------------------------------------
Fidelity Advisor High Yield Fund - Class T -2.67% N/A -1.69% 11/13/98
-------------------------------------------------------------------------------------------------------------------
Fidelity Capital & Income Fund 2.13% 5.92% 7.15% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Fidelity Contrafund(R) 13.89% 22.39% 15.87% 10/01/93
-------------------------------------------------------------------------------------------------------------------
Fidelity Equity - Income Fund -3.86% 14.92% 11.76% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Fidelity Magellan(R) Fund 12.87% 21.06% 13.25% 10/01/93
-------------------------------------------------------------------------------------------------------------------
Fidelity OTC Portfolio 60.90% 30.26% 26.74% 09/01/94
-------------------------------------------------------------------------------------------------------------------
Fidelity Puritan Fund -7.96% 9.78% 6.77% 09/01/94
-------------------------------------------------------------------------------------------------------------------
INVESCO Dynamics Fund 60.17% N/A 68.76% 11/13/98
-------------------------------------------------------------------------------------------------------------------
INVESCO Total Return Fund -12.15% N/A -12.81% 11/13/98
-------------------------------------------------------------------------------------------------------------------
The Investment Company of America(R), Inc. 5.45% 18.53% 12.06% 07/01/92
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Aggressive Portfolio 13.01% N/A 12.27% 01/20/98
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderately Aggressive 8.21% N/A 9.32% 01/20/98
Portfolio
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderate Portfolio 3.80% N/A 7.17% 01/20/98
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderately Conservative -1.24% N/A 3.73% 01/20/98
Portfolio
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Conservative Portfolio -7.21% N/A -0.66% 01/20/98
-------------------------------------------------------------------------------------------------------------------
MAS Funds Fixed Income Portfolio -11.45% 1.95% 0.05% 09/01/94
-------------------------------------------------------------------------------------------------------------------
Massachusetts Investors Growth Stock Fund - Class A 27.44% 30.28% 18.64% 06/17/91
-------------------------------------------------------------------------------------------------------------------
MFS(R) Growth Opportunities Fund - Class A 21.57% 23.12% 13.26% 06/17/91
-------------------------------------------------------------------------------------------------------------------
MFS(R) High Income Fund - Class A -4.02% 3.75% 0.99% 08/03/93
-------------------------------------------------------------------------------------------------------------------
Morgan Stanley Institutional Fund, Inc. - Equity 28.06% N/A 31.04% 11/13/98
Growth Portfolio - Class B
-------------------------------------------------------------------------------------------------------------------
Nationwide(R) Fund - Class D -11.09% 18.93% 10.51% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Nationwide(R) Growth Fund - Class D 5.54% 16.98% 11.81% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Nationwide Money Market Fund- Prime Shares -6.32% -2.07% -3.18% 06/17/91
-------------------------------------------------------------------------------------------------------------------
Nationwide S&P 500(R) Index Fund - Institutional 8.66% N/A 12.08% 11/13/98
Service Class (formerly, "Class Y")
-------------------------------------------------------------------------------------------------------------------
</TABLE>
30
<PAGE> 31
<TABLE>
<CAPTION>
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
------------------------------------------------------------------------------------------------------------------
10 Years
or Date Fund
Available in Date Fund
the Variable Available in
1 Year 5 Years Account the Variable
Sub-Account Option to 12/31/99 to 12/31/99 to 12/31/99 Account
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nationwide Separate Account Trust - Nationwide N/A N/A -4.53% 06/25/99
Income Fund
------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Nationwide Small 32.66% N/A 5.80% 11/03/97
Company Fund
------------------------------------------------------------------------------------------------------------------
Neuberger Berman Guardian Fund, Inc. -2.57% 9.83% 6.73% 09/01/94
------------------------------------------------------------------------------------------------------------------
Neuberger Berman Partners Trust -3.32% N/A -3.73% 11/13/98
------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Fund - Class A 46.98% N/A 47.88% 11/13/98
------------------------------------------------------------------------------------------------------------------
Prestige Balanced Fund - Institutional Service Class -1.75% N/A -0.53% 11/13/98
(formerly, Class Y)
------------------------------------------------------------------------------------------------------------------
Prestige International Fund - Institutional Service 10.23% N/A 13.33% 11/13/98
Class (formerly, Class Y)
------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Growth Fund - Institutional 23.56% N/A 30.71% 11/13/98
Service Class (formerly, Class Y)
------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Value Fund - Institutional -15.24% N/A -13.44% 11/13/98
Service Class (formerly, Class Y)
------------------------------------------------------------------------------------------------------------------
Prestige Small Cap Fund - Institutional Service 7.64% N/A 10.82% 11/13/98
Class (formerly, Class Y)
------------------------------------------------------------------------------------------------------------------
Putnam Investors Fund - Class A 18.92% 26.76% 15.99% 06/17/91
------------------------------------------------------------------------------------------------------------------
Putnam Voyager Fund - Class A 44.66% 25.84% 18.83% 06/17/91
------------------------------------------------------------------------------------------------------------------
SEI Index Funds - S&P 500 Index Portfolio 9.67% N/A 19.94% 05/01/96
------------------------------------------------------------------------------------------------------------------
Seligman Growth Fund, Inc. - Class A 19.04% 21.19% 12.85% 06/17/91
------------------------------------------------------------------------------------------------------------------
Short-Term Investments Trust - Treasury Portfolio - -5.94% -1.61% -2.72% 07/01/92
Institutional Class
------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock Fund(R) 23.33% 9.40% 5.48% 09/01/94
------------------------------------------------------------------------------------------------------------------
Templeton Foreign Fund - Class A 27.90% 6.71% 3.43% 09/01/94
------------------------------------------------------------------------------------------------------------------
Warburg Pincus Emerging Growth Fund - Common Class 30.47% N/A 37.19% 11/13/98
------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
American Century: Income & Growth - Investor Class 16.84% 26.83% 20.56% 12/17/90
-------------------------------------------------------------------------------------------------------------------
American Century: Growth-Investor Class 33.41% 25.74% 16.90% 06/30/71
-------------------------------------------------------------------------------------------------------------------
American Century: International Discovery - Investor 86.76% 29.13% 26.39% 04/04/94
Class
-------------------------------------------------------------------------------------------------------------------
American Century: Ultra-Investor Class 40.13% 28.50% 23.27% 11/02/81
-------------------------------------------------------------------------------------------------------------------
The Bond Fund of America(SM), Inc. 1.32% 7.17% 7.37% 05/28/74
-------------------------------------------------------------------------------------------------------------------
The Brown Capital Management - Small Company Fund 42.66% 24.18% 22.80% 12/31/92
-------------------------------------------------------------------------------------------------------------------
Dreyfus Appreciation Fund, Inc. 8.93% 24.92% 15.72% 01/18/84
-------------------------------------------------------------------------------------------------------------------
Dreyfus Premier Midcap Stock Fund - Class A 9.59% 22.04% 17.55% 04/06/94
-------------------------------------------------------------------------------------------------------------------
The Dreyfus Premier Third Century Fund, Inc. - Class Z 28.93% 28.69% 16.94% 03/29/72
-------------------------------------------------------------------------------------------------------------------
Evergreen Income and Growth Fund - Class Y 15.27% 14.09% 9.46% 08/31/78
-------------------------------------------------------------------------------------------------------------------
Federated Bond Fund - Class F -3.26% 6.69% 8.43% 05/20/87
-------------------------------------------------------------------------------------------------------------------
</TABLE>
31
<PAGE> 32
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Federated U.S. Government Securities Fund: 2-5 Years -1.47% 5.28% 5.54% 02/18/83
- Institutional Shares
-------------------------------------------------------------------------------------------------------------------
Fidelity Advisor Growth Opportunities Fund - Class A 3.10% 19.98% 17.01% 11/18/87
-------------------------------------------------------------------------------------------------------------------
Fidelity Advisor High Yield Fund - Class T 7.33% 9.85% 12.43% 01/05/87
-------------------------------------------------------------------------------------------------------------------
Fidelity Capital & Income Fund 12.13% 11.02% 11.84% 11/01/77
-------------------------------------------------------------------------------------------------------------------
Fidelity Contrafund(R) 22.89% 26.24% 21.22% 05/17/67
-------------------------------------------------------------------------------------------------------------------
Fidelity Equity-Income Fund 6.14% 18.98% 13.43% 05/16/66
-------------------------------------------------------------------------------------------------------------------
Fidelity Magellan(R) Fund 22.87% 25.05% 17.80% 05/02/63
-------------------------------------------------------------------------------------------------------------------
Fidelity OTC Portfolio 70.90% 34.13% 21.705 02/31/84
-------------------------------------------------------------------------------------------------------------------
Fidelity Puritan Fund 1.89% 14.37% 11.99% 04/16/47
-------------------------------------------------------------------------------------------------------------------
INVESCO Dynamics Fund 70.17% 31.86% 22.90% 09/01/67
-------------------------------------------------------------------------------------------------------------------
INVESCO Total Return Fund -2.29% 14.23% 11.32% 09/22/87
-------------------------------------------------------------------------------------------------------------------
The Investment Company of America(R), Inc. 15.45% 22.56% 14.92% 01/01/34
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Aggressive Portfolio 23.01% N/A 20.49% 01/20/98
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderately Aggressive 18.21% N/A 17.41% 01/20/98
Portfolio
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderate Portfolio 13.80% N/A 14.50% 01/20/98
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Moderately Conservative 8.76% N/A 11.67% 01/20/98
Portfolio
-------------------------------------------------------------------------------------------------------------------
LifeDesigns Series - The Conservative Portfolio 2.79% N/A 6.91% 01/20/98
-------------------------------------------------------------------------------------------------------------------
MAS Funds Fixed Income Portfolio -1.55% 7.25% 7.49% 11/14/84
-------------------------------------------------------------------------------------------------------------------
Massachusetts Investors Growth Stock Fund - Class A 37.44% 34.04% 20.77% 01/01/35
-------------------------------------------------------------------------------------------------------------------
MFS(R) Growth Opportunities Fund - Class A 31.57% 27.02% 16.04% 09/09/70
-------------------------------------------------------------------------------------------------------------------
MFS(R) High Income Fund - Class A 5.98% 8.95% 9.46% 02/17/78
-------------------------------------------------------------------------------------------------------------------
Morgan Stanley Institutional Fund, Inc. - Equity 38.06% N/A 28.50% 01/02/96
Growth Portfolio - Class B
-------------------------------------------------------------------------------------------------------------------
Nationwide(R) Fund - Class D -1.17% 22.77% 14.41% 05/11/33
-------------------------------------------------------------------------------------------------------------------
Nationwide(R) Growth Fund - Class D 15.54% 21.15% 14.15% 02/27/61
-------------------------------------------------------------------------------------------------------------------
Nationwide Money Market Fund - Prime Shares 3.68% 4.09% 3.85% 01/04/99
-------------------------------------------------------------------------------------------------------------------
Nationwide S&P 500(R) Index Fund - Institutional 18.66% N/A 27.55% 10/30/98
Service Class (formerly, Class Y)
-------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Nationwide Income -2.94% N/A 1.56% 01/20/98
Fund
-------------------------------------------------------------------------------------------------------------------
Nationwide Separate Account Trust - Nationwide Small 42.66% N/A 22.06% 10/23/95
Company Fund
-------------------------------------------------------------------------------------------------------------------
Neuberger Berman Guardian Fund, Inc. 7.43% 14.22% 12.52% 06/01/50
-------------------------------------------------------------------------------------------------------------------
Neuberger Berman Partners Trust 6.68% 19.19% 13.60% 01/20/75
-------------------------------------------------------------------------------------------------------------------
Oppenheimer Global Fund - Class A 56.98% N/A 15.42 12/22/69
-------------------------------------------------------------------------------------------------------------------
Prestige Balanced Fund - Institutional Service Class 8.25% N/A 13.57% 10/30/98
(formerly, Class Y)
-------------------------------------------------------------------------------------------------------------------
Prestige International Fund - Institutional Service 20.23% N/A 22.58% 10/30/98
Class (formerly, Class Y)
-------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Growth Fund - Institutional 33.56% N/A 45.22% 10/30/98
Service Class (formerly, Class Y)
-------------------------------------------------------------------------------------------------------------------
Prestige Large Cap Value Fund - Institutional Service -5.54% N/A -0.12% 10/30/98
Class (formerly, Class Y)
-------------------------------------------------------------------------------------------------------------------
Prestige Small Cap Fund - Institutional Service Class 17.64% N/A 23.35% 10/30/98
(formerly, Class Y)
-------------------------------------------------------------------------------------------------------------------
</TABLE>
32
<PAGE> 33
<TABLE>
<CAPTION>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
-------------------------------------------------------------------------------------------------------------------
10 Years
to 12/31/99
1 Year 5 Years or Life of Date Fund
Sub-Account Option to 12/31/99 to 12/31/99 Fund Effective
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Putnam Investors Fund - Class A 28.92% 30.45% 18.68% 12/01/25
-------------------------------------------------------------------------------------------------------------------
Putnam Voyager Fund - Class A 54.66% 29.76% 20.93% 04/01/69
-------------------------------------------------------------------------------------------------------------------
SEI Index Funds - S&P 500 Index Portfolio 19.67% 27.08% 16.83% 07/31/85
-------------------------------------------------------------------------------------------------------------------
Seligman Growth Fund, Inc. - Class A 29.04% 25.30% 16.01% 04/01/37
-------------------------------------------------------------------------------------------------------------------
Short-Term Investments Trust - Treasury Portfolio - 4.00% 4.48% 4.30% 04/12/84
Institutional Class
-------------------------------------------------------------------------------------------------------------------
T. Rowe Price International Stock Fund(R) 33.33% 14.62% 10.33% 05/09/80
-------------------------------------------------------------------------------------------------------------------
Templeton Foreign Fund - Class A 37.90% 12.05% 10.26% 10/05/82
-------------------------------------------------------------------------------------------------------------------
Warburg Pincus Emerging Growth Fund - Common Class 40.47% 22.77% 17.16% 01/21/88
-------------------------------------------------------------------------------------------------------------------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A, were added to the variable account effective May 1, 2000.
Therefore, no year-end sub-account performance is available.
33
<PAGE> 34
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
PAGE
General Information and History..............................................1
Services.....................................................................1
Purchase of Securities Being Offered.........................................2
Underwriters.................................................................2
Calculations of Performance..................................................2
Annuity Payments.............................................................3
Financial Statements.........................................................4
34
<PAGE> 35
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS
A summary of the investment objective for each underlying mutual fund is listed
below.
There is no guarantee that the investment objectives will be met.
AMERICAN CENTURY: INCOME & GROWTH - INVESTOR CLASS
The investment objective of the Fund is to seek dividend growth, current income
and capital appreciation by investing in common stocks. The Fund may buy
securities convertible into common stock, such as convertible bonds, convertible
preferred stocks or warrants. The Fund may also, for liquidity purposes, invest
in high-quality money market instruments with remaining maturities of one year
or less. The Fund may also enter into repurchase agreements, collateralized by
U.S. government securities, with banks or broker-dealers deemed to present
minimal credit risk. American Century Investment Management, Inc. serves as the
Fund's investment adviser.
AMERICAN CENTURY: ULTRA - INVESTOR CLASS
The investment objective of the Fund is capital growth by investing primarily in
common stocks that are considered by management to have better-than-average
prospects for appreciation. It is management's intention that the portfolio will
generally consist of common stocks of medium-sized and smaller companies.
American Century Investment Services, Inc. serves as the Fund's investment
adviser.
AMERICAN CENTURY: VALUE - INVESTOR CLASS
The investment objective of the Fund is to seek long-term capital growth. Income
is a secondary objective. Under normal market conditions, the Fund managers
intend to keep at least 65% of the Fund's assets invested in U.S. equity
securities of medium to large companies. American Century Investment Management,
Inc. serves as the Fund's investment adviser.
THE BROWN CAPITAL MANAGEMENT - SMALL COMPANY FUND
The investment objective of the Fund is to seek capital appreciation principally
through investment in equity securities of companies with operating revenues of
$250 million or less at the time of the initial investment. Current income is of
secondary importance.
DREYFUS APPRECIATION FUND, INC.
The primary investment objective of the Fund is to provide long-term capital
growth consistent with the preservation of capital. Current income is a
secondary investment objective. The Fund seeks to meet its objectives by
investing primarily in the common stocks of domestic and foreign issuers. The
Dreyfus Corporation serves as the Fund's investment adviser.
DREYFUS PREMIER MIDCAP STOCK FUND -
CLASS A
The investment objective of the Fund is to seek total investment returns
(including capital appreciation and income) which consistently outperform the
Standard & Poor's 400 MidCap Index. The Fund attempts to maintain a diversified
holding in common stocks of medium capitalization companies (firms with a market
value between $200 million and $5 billion). The Dreyfus Corporation serves as
the Fund's investment adviser.
THE DREYFUS PREMIER THIRD CENTURY FUND, INC. - CLASS Z
The Fund's primary goal is to provide capital growth through equity investment
in companies that, in the opinion of the Fund's management, not only to meet
traditional investment standards, but which also show evidence that they conduct
their business in a manner that contributes to the enhancement of the quality of
life of America. Current income is secondary to the primary goal. The Dreyfus
Corporation serves as the Fund's investment adviser.
35
<PAGE> 36
FEDERATED BOND FUND - CLASS F
The investment objective of the Fund is to provide as high a level of current
income as is consistent with the preservation of capital. The Fund invests
primarily in a professionally managed, diversified portfolio of bonds. Under
normal circumstances, at least 65% of the Fund's net assets will be invested in
investment grade securities, including repurchase agreements collateralized by
investment grade securities. The Fund may invest in corporate debt obligations,
U.S. Government obligations, municipal securities, asset-backed securities,
adjustable rate mortgage securities, collateralized mortgage obligations, and
other securities which are deemed to be consistent with the Fund's investment
objectives. Federated Investment Management Company serves as the Fund's
investment adviser.
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS - INSTITUTIONAL SHARES
The investment objective of the Fund is current income. The Fund pursues this
investment objective by investing in U.S. government securities with remaining
maturities of five years or less. Federated Investment Management Company serves
as the Fund's investment adviser.
FIDELITY ADVISOR GROWTH OPPORTUNITIES FUND - CLASS A
The investment objective of the Fund is to pursue capital growth that exceeds
market performance through investments in growth, cyclical, and value stocks.
Fidelity Management & Research Company serves as the Fund's investment adviser.
FIDELITY ADVISOR HIGH YIELD FUND -
CLASS T
The Fidelity Advisor High Yield Fund is a bond fund designed to meet the needs
of the long-term investor, seeking above-average monthly income and potential
capital growth by investing in lower-rated, high-yielding, fixed income
securities. Fidelity Management & Research Company serves as the Fund's
investment adviser.
FIDELITY EQUITY-INCOME FUND
The investment objective of the Fund is to obtain reasonable income from a
portfolio consisting primarily of income-producing equity securities. The Fund
seeks a yield which exceeds the composite yield on the securities comprising the
Standard & Poor's Composite Index of 500 Stocks. In pursuing this objective, the
Fund will also consider the potential for capital appreciation. Fidelity
Management & Research Company serves as the Fund's investment adviser.
FIDELITY OTC PORTFOLIO
The investment objective of the Fund is to seek capital appreciation by
investing primarily in securities traded on the over-the counter (OTC)
securities market. Securities traded on the OTC include, among others,
industrial corporations, financial services institutions, public utilities, and
transportation companies, common and preferred stocks, securities convertible
into common stock, warrants and similar rights, and debt securities, and
obligations of the federal government. The fund does not place any weight on
dividend and interest income unless it believes this income will have a
favorable influence on the market value of a security. Fidelity Management &
Research Company serves as the Fund's investment adviser.
FIDELITY PURITAN FUND
The investment objective of the Fund seeks to obtain as much income as possible,
consistent with the preservation and conservation of capital, by investing in a
broadly diversified portfolio of securities, including common stocks, preferred
stocks, and bonds. While emphasis on income is an important objective, this does
not preclude growth in capital since some securities offering a better than
average yield may also possess some growth possibilities. Fidelity Management &
Research Company serves as the Fund's investment adviser.
36
<PAGE> 37
INVESCO DYNAMICS FUND
The investment objective of the Fund is to seek appreciation of capital through
aggressive investment policies. The Fund invests primarily in common stocks of
U.S. companies traded on national securities exchanges and over-the-counter. The
Fund also has the flexibility to invest in preferred stocks and convertible or
straight issues of debentures, as well as foreign securities. INVESCO Funds
Group, Inc. serves as the Fund's investment adviser.
INVESCO TOTAL RETURN FUND
The investment objective of the Fund is to seek to achieve a high total return
on investment through capital appreciation and current income by investing in a
combination of equity securities (consisting of common stocks and, to a lesser
degree, securities convertible into common stock) and fixed income securities.
The equity securities purchased by the Fund generally will be issued by
companies which are listed on a national securities exchange and which usually
pay regular dividends. This Fund seeks reasonably consistent total returns over
a variety of market cycles. INVESCO Funds Group, Inc. serves as the Fund's
investment adviser. INVESCO Capital Management, Inc. serves as the Fund's
sub-adviser.
LIFEDESIGNS SERIES
LifeDesigns Series consists of five separate nondiversified funds, each of which
is a separately managed nondiversified portfolio with its own investment
objective and policies. The objective of each of the Portfolios which is
fundamental, is to maximize total investment return (i.e. capital growth and
income) subject to investment restrictions and asset allocation policies. The
Portfolios will maximize total investment return as is specifically detailed in
the following objectives which are non-fundamental and can be changed without
approval of a Portfolio's shareholders.
THE AGGRESSIVE PORTFOLIO
The investment objective of this Fund is to provide growth of capital by
investing in underlying funds which invest primarily in equity securities
("Equity Funds"). This Fund is generally appropriate for investors seeking
higher returns over an investment time horizon of at least 15 years and
having a higher tolerance for market fluctuations. Villanova SA Capital
Trust ("VSA") serves as the Fund's investment adviser.
THE CONSERVATIVE PORTFOLIO
The investment objective of this Fund is to provide primarily income and,
secondarily, long term growth of capital. This Fund will seek to meet its
objectives by primarily investing in a combination of the Nationwide
Contract (a fixed interest contract) and fixed income securities ("Bond
Funds"), with a similar investment in Equity Funds. This Fund is generally
appropriate for investors seeking low fluctuations in principal over an
investment time horizon of less than 5 years, as well more conservative
investors with an investment time horizon of between 5 and 10 years. VSA
serves as the Fund's investment adviser.
THE MODERATE PORTFOLIO
The investment objective of this Fund is to provide growth of capital and
income by investing primarily in Equity Funds, but will also invest a
significant percentage of its assets in the Nationwide Contract and in Bond
Funds. This Fund is generally appropriate for moderate investors seeking
moderate returns over an investment time horizon of between 10 and 15
years; conservative investors with an investment time horizon of at least
15 years or more; and more aggressive investors with an investment time
horizon of 5 to 10 years. VSA serves as the Fund's investment adviser.
THE MODERATELY AGGRESSIVE PORTFOLIO
The investment objective of this Fund is to provide growth of capital by
investing primarily in Equity Funds. However, the Fund attempts to reduce
its volatility by also
37
<PAGE> 38
investing in the Nationwide Contract and Proprietary Funds which also
invest primarily in Bond Funds. This Fund is generally appropriate for
moderate investors seeking high returns over an investment time horizon of
15 years or for more aggressive investors with an investment time horizon
of 10 to 15 years. VSA serves as the Fund's investment adviser.
THE MODERATELY CONSERVATIVE PORTFOLIO
The investment objective of this Fund is to provide primarily income and,
secondarily, long term growth of capital. This Fund will seek to meet its
objective by generally investing half of its assets in Equity Funds with
the remainder in the Nationwide Contract and Bond Funds. This Fund is
generally appropriate for moderate investors seeking lower fluctuations in
principal combined with some of the upside potential of equity investments
over an investment time horizon of between 5 and 10 years. This Fund is
also generally appropriate for conservative investors with an investment
time horizon of between 10 and 15 years and more aggressive investors with
an investment time horizon of less than 5 years. VSA serves as the Fund's
investment adviser.
MAS FUNDS FIXED INCOME PORTFOLIO
The investment objective of the Fund is to achieve above-average total return
over a market cycle of three of five years, consistent with reasonable risk, by
investing in a diversified portfolio of U.S. government securities, corporate
bonds (including bonds rated below investment grade commonly referred to as
"junk bonds"), foreign fixed-income securities and mortgage-backed securities of
domestic issuers and other fixed-income securities. The portfolio's average
weighted maturity will ordinarily be greater than five years. Miller, Anderson &
Sherrerd, LLP serves as the Fund's investment adviser.
MFS(R) HIGH INCOME FUND - CLASS A
The investment objective of the Fund is high current income by investing
primarily in a professionally managed diversified portfolio of fixed income
securities, some of which may involve equity features. Securities offering the
high current income sought by this Fund are ordinarily in the lower rating
categories of recognized rating agencies or are unrated and generally involve
greater volatility of price and risk of principal and income than securities in
the high rating categories. Capital growth, if any, is a consideration
incidental to the investment objective of high current income. Massachusetts
Financial Services Company serves as the Fund's investment adviser.
MORGAN STANLEY INSTITUTIONAL FUND, INC. - EQUITY GROWTH PORTFOLIO - CLASS B
The investment objective of the Portfolio is to seek long-term capital
appreciation by investing in growth-oriented equity securities of medium and
large capitalization companies. Equity securities include common and preferred
stocks, convertible securities and rights and warrants to purchase common
stocks. Under normal circumstances, the Portfolio will invest at least 65% of
the value of its total assets in equity securities. Morgan Stanley Asset
Management, Inc. serves as the Portfolio's investment adviser.
NATIONWIDE(R) FUND - CLASS D
The investment objective of the Fund is to seek total return through a flexible
combination of current income and capital appreciation. The Fund invests
primarily in common stocks, but also in convertible securities, other equity
securities, bonds and money market obligations. Villanova Mutual Fund Capital
Trust serves as the Fund's investment adviser.
NATIONWIDE(R) MONEY MARKET FUND - PRIME SHARES
The investment objective of the Fund is to seek as high a level of current
income as is consistent with the preservation of capital and maintenance of
liquidity. The Fund invests in high-quality money market instruments maturing in
397 days
38
<PAGE> 39
or less. Villanova Mutual Fund Capital Trust serves as the Fund's investment
adviser.
NATIONWIDE S&P 500(R) INDEX FUND -
INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is to provide investment results that
correspond to the price and yield performance of publicly traded common stocks
as represented by the Standard & Poor's 500 Composite Stock Price Index (the
"Index"). The Fund attempts to be fully invested at all times in stocks that
comprise the Index and stock index futures, and in any event, at least 80% of
the Fund's net assets will be invested in stocks comprising the Index. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and The
Dreyfus Corporation is the Fund's sub-adviser.
"S&P 500(R)" has been licensed for use by Villanova Mutual Fund Capital Trust.
The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and
Standard & Poor's makes no representation regarding the advisability of
investing in the Fund.
NATIONWIDE SEPARATE ACCOUNT TRUST - NATIONWIDE INCOME FUND
The Fund seeks to provide as high a level of income as is consistent with
reasonable concern for safety of principal. Under normal conditions, the Fund
invests primarily in investment grade corporate bonds and U.S. Government
Securities. Villanova Mutual Fund Capital Trust serves as the Funds' adviser.
The Fund is subadvised by NCM Capital Management Group, Inc. and Smith Graham &
Co. Asset Managers L.P.
NATIONWIDE SEPARATE ACCOUNT TRUST - NATIONWIDE SMALL COMPANY FUND
Subadvisers: The Dreyfus Corporation, Neuberger Berman, LLC., Lazard Asset
Management and Strong Capital Management, Inc.
Investment Objective: Under normal market conditions, the Fund will invest at
least 65% of its total assets in equity securities of companies whose equity
market capitalizations at the time of investment are similar to the market
capitalizations of companies in the Russell 2000 Small Stock Index.
NEUBERGER BERMAN GUARDIAN FUND, INC.
The Fund seeks capital appreciation through investments generally in
dividend-paying issues of established companies that its investment officers
believe are well managed. The emphasis of the Fund's investments is on common
stock. The Fund diversifies its holdings among different industries and
different companies in light of conditions prevailing at any given time. Current
income is a secondary objective. Neuberger Berman Management Incorporated serves
as the Fund's investment adviser.
NEUBERGER BERMAN PARTNERS TRUST
The investment objective of the Fund is to seek capital growth. The Fund invests
using a value-oriented approach to the selection of individual securities. The
Fund manager seeks capital growth through an investment approach that is
designed to increase capital with reasonable risk. Neuberger Berman Management
Incorporated serves as the Fund's investment adviser.
OPPENHEIMER GLOBAL FUND - CLASS A
The investment objective of the Fund is to seek capital appreciation. The Fund
emphasizes investment in foreign and domestic securities considered by the
Fund's investment manager to have appreciation possibilities, primarily common
stocks or securities having investment characteristics of common stocks (such as
convertible securities) of "growth-type" companies. As a matter of fundamental
policy, under normal market conditions, the Fund will invest its total assets in
securities of issuers traded in markets in at least three different countries
(which may include the United States). The portfolio may also emphasize
securities of cyclical industries and "special situations" when the Fund's
manager believes that they present opportunities for capital growth.
OppenheimerFunds, Inc. serves as the Fund's investment adviser.
39
<PAGE> 40
PRESTIGE BALANCED FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is to provide a high total return from a
diversified portfolio of equity and fixed income securities. The Fund seeks to
provide a total return that approaches the total return of the universe of
equity securities of large and medium sized companies and that exceeds the
return typical of a portfolio of fixed income securities. Under normal market
conditions, the Fund will invest approximately 60% of its assets in equity
securities and 40% in fixed income securities. The equity securities will
primarily be securities of large and medium sized companies included in the
Standard & Poor's 500 Composite Stock Price Index, and the fixed income
securities will cover a range of fixed income sectors and securities, including
government, corporate, asset-backed and mortgage-backed securities. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and J.P.
Morgan Investment Management Inc. is the Fund's sub-adviser.
PRESTIGE INTERNATIONAL FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is capital appreciation. The Fund seeks to
accomplish its investment objective by investing primarily in equity securities
of non-United States companies that, in the opinion of its subadviser, are
inexpensively priced relative to the return on total capital or equity. The Fund
invests primarily in equity securities of non-United States companies. Under
normal market conditions, the Fund will invest at least 80% of the value of its
total assets in the equity securities of companies within at least three
different countries (not including the United States). Villanova Mutual Fund
Capital Trust serves as the Fund's investment adviser and Lazard Asset
Management is the Fund's sub-adviser.
PRESTIGE LARGE CAP GROWTH FUND - INSTITUTIONAL SERVICE CLASS
(FORMERLY, CLASS Y)
The investment objective of the Fund is long-term capital appreciation. The Fund
seeks to achieve its investment objective from a broadly diversified portfolio
of equity securities of large capitalization companies that are expected to have
better prospects for earnings growth than the growth rate of the general
domestic economy. Dividend income is a secondary objective. A large
capitalization company is a company with a market capitalization and industry
characteristics that are similar to companies in the Russell 1000(R) Growth
Index, which currently have market capitalizations that range from $1.4 billion
to $272 billion. Villanova Mutual Fund Capital Trust serves as the Fund's
investment adviser and Goldman Sachs Asset Management is the Fund's sub-adviser.
PRESTIGE LARGE CAP VALUE FUND - INSTITUTIONAL SERVICE CLASS
(FORMERLY, CLASS Y)
The investment objective of the Fund is to maximize total return, consisting of
both capital appreciation and current income. The Fund seeks to achieve its
investment objective by investing in U.S. equity securities that are currently
undervalued as determined by its subadviser. Under normal market conditions,
substantially all, but in no event less than 65% of the Fund's total assets will
be invested in equity securities of large capitalization U.S. companies,
including foreign companies whose securities are traded in the United States and
who comply with U.S. accounting standards. A large capitalization company is a
company with a market capitalization and industry characteristics that are
similar to companies in the Russell 1000(R) Value Index, which currently have
market capitalizations that range from $1.4 billion to $272 billion. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and Brinson
Partners, Inc. is the Fund's sub-adviser.
40
<PAGE> 41
PRESTIGE SMALL CAP FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is long-term capital appreciation. The Fund
seeks to accomplish its investment objective from a broadly diversified
portfolio of equity securities issued by U.S. companies that have small market
capitalizations. Under normal market conditions, the Fund will invest at least
65% of its total assets in equity securities of companies whose market
capitalizations at the time of investment do not exceed 110% of the largest
company in the Russell 2000(R) Small Stock Index; these companies currently have
market capitalizations that range from $222 million to $1.4 billion. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and INVESCO
Management & Research, Inc. serves as the Fund's sub-adviser, providing daily
portfolio management for the Fund.
PUTNAM INTERNATIONAL GROWTH FUND - CLASS A
The investment objective of the Fund is to seek capital appreciation by
investing mostly in common stocks of companies outside the United States. The
investment adviser, Putnam Investment Management, Inc. ("Putnam Management")
first selects countries and industries that it believes are attractive. Putnam
Management then seeks stock offering opportunity for gain. Putnam Management
primarily invests in mid-size and large companies, although it may invest in
companies of any size. Although emphasis is based upon developed countries,
investments may also be made in companies located in developing markets, also
known as emerging markets.
PUTNAM INVESTORS FUND - CLASS A
The investment objective of the Fund is long-term growth of capital and any
increased income resulting from such growth. The Fund is designed for investors
seeking long-term growth of capital from a portfolio consisting primarily of
common stocks. The Fund's management emphasizes investment in quality growth
stocks. Putnam Investment Management, Inc., serves as the Fund's investment
adviser.
PUTNAM VOYAGER FUND - CLASS A
The investment objective of the Fund is capital appreciation. The Fund invests
primarily in common stocks believed to have potential for capital appreciation
significantly greater than the market average. The Fund is designed for
investors willing to assume above-average risk in return for above-average
capital growth potential. Putnam Investment Management, Inc. serves as the
Fund's investment adviser.
SEI INDEX FUNDS - S & P 500 INDEX PORTFOLIO
The S & P Index Portfolio seeks to provide investment results that correspond to
the aggregate price and dividend performance of the securities in the Standard &
Poor's 500 Composite Stock Price Index which is comprised of 500 selected common
stocks, most of which are listed on the New York Stock Exchange. The investment
objective is a fundamental policy of the Portfolio. There can be no assurance
that the Portfolio will achieve its investment objective. SEI Fund Management
serves as the Fund's investment adviser.
SELIGMAN GROWTH FUND, INC. - CLASS A
The investment objective of the Fund is longer-term growth in capital value and
an increase in future income. Fund assets have been invested primarily in common
stocks with the inherent investment risks tempered by portfolio diversification.
J & W Seligman & Co., Incorporated serves as the Fund's investment adviser.
SHORT-TERM INVESTMENTS TRUST - TREASURY PORTFOLIO - INSTITUTIONAL CLASS
The investment objective of the Portfolio is the maximization of current income
to the extent consistent with the preservation of capital and maintenance of
liquidity. The Portfolio seeks to achieve its objective by investing in a
portfolio consisting of direct obligations of the U.S. Treasury and repurchase
agreements secured by such obligations. The instruments purchased by the
Portfolio will have maturities of 397 days or
41
<PAGE> 42
less. AIM Advisers, Inc. serves as the Fund's investment adviser.
T. ROWE PRICE INTERNATIONAL STOCK FUND(R)
The Fund's objective is long-term growth of capital through investments
primarily in common stocks of established, non-U.S. Companies. T. Rowe Price
Associates, Inc. serves as the Fund's investment adviser.
TEMPLETON FOREIGN FUND - CLASS A
The investment objective of the Fund is long-term capital growth through a
flexible policy of investing in stocks and debt obligations of companies and
governments outside the United States. Any income realized will be incidental.
Templeton Investment Counsel, Inc. serves as the Fund's investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE FOR NEW PLANS ESTABLISHED
ON OR AFTER JUNE 30, 1998:
FIDELITY CONTRAFUND(R)
The investment objective of the Fund is capital appreciation by investing in
securities that its manager believes are undervalued due to an overly
pessimistic appraisal by the public. Although the Fund will usually be invested
primarily in common stocks and securities convertible into common stock, the
percentage of its assets invested in other securities may vary. Fidelity
Management & Research Company serves as the Fund's investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER OCTOBER 1, 1997:
FIDELITY MAGELLAN(R) FUND
The investment objective of the Fund is capital appreciation by investing
primarily in common stock and securities convertible into common stock. The Fund
may also invest in foreign securities, which involves additional risks. The Fund
may also invest in stock index futures and options both of which can be volatile
investments. Fidelity Management & Research Company serves as the Fund's
investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER MAY 1, 1997:
AMERICAN CENTURY: GROWTH (FORMERLY, AMERICAN CENTURY - TWENTIETH CENTURY GROWTH)
The investment objective of the Fund is capital growth through investment in
securities which the management considers to have better-than-average prospects
for appreciation. It is management's intention that the portfolio will generally
consist of common stocks of large established companies. American Century
Investment Services, Inc. serves as the Fund's investment adviser.
MASSACHUSETTS INVESTORS GROWTH STOCK FUND - CLASS A
The investment objective of the Fund is the long-term growth of capital and
future income rather than current income. Massachusetts Financial Services
Company serves as the Fund's investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUNDS MAY NOT BE AVAILABLE TO ALL ISSUED
CONTRACTS ON OR AFTER JULY 1, 1994:
THE BOND FUND OF AMERICA(SM), INC.
The Fund's investment objective is to provide as high a level of current income
as is consistent with the preservation of capital. The Fund invests
substantially all of its assets in marketable corporate debt securities, U.S.
Government securities, mortgage-related securities, other asset-backed
securities and cash or money market instruments. Normally, at least 65% of the
Fund's assets will be invested in bonds. Capital Research and Management Company
serves as the Fund's investment adviser.
42
<PAGE> 43
THE INVESTMENT COMPANY OF AMERICA(R), INC.
The investment objectives are long-term growth of capital and income. The Fund
strives to accomplish these objectives through constant supervision, careful
selection and broad diversification. In the selection of securities for
investment, the possibilities of appreciation and potential dividends are given
more weight than current yield. The Fund ordinarily invests principally in
common stocks. However, assets may also be held in securities convertible into
common stocks, straight debt securities (rated in the top three quality
categories by Standard & Poor's Corporation or Moody's Investor Service, Inc. or
determined to be of equivalent quality by Capital Research and Management
Company), cash equivalent quality by Capital Research and Management Company),
cash or cash equivalents, U.S. Government securities, or nonconvertible
preferred stocks. Massachusetts Financial Services Company serves as the Fund's
investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER OCTOBER 1, 1993:
EVERGREEN INCOME AND GROWTH FUND -
CLASS Y
The investment objective of the Fund is current income and capital appreciation.
The Fund invests primarily in common and preferred stocks, securities
convertible into or exchangeable for common stocks, and fixed income securities.
The Fund's objective is to maximize the "total return" on its portfolio of
investments. Evergreen Asset Management Corp. serves as the Fund's investment
adviser.
MFS(R) GROWTH OPPORTUNITIES FUND - CLASS A
The investment objective of the Fund is growth of capital. Dividend income, if
any, is incidental to the objective of capital growth. To achieve this
objective, a flexible approach toward types of companies as well as types of
securities is maintained by the Fund, depending upon the economic environment
and the relative attractiveness of the various securities markets. Massachusetts
Financial Services Company serves as the Fund's investment adviser.
NATIONWIDE(R) GROWTH FUND - CLASS D
The investment objective of the Fund is to seek long term capital appreciation
by investing primarily in equity securities of companies of all sizes. Major
emphasis in the selection of securities is placed on companies which have
capable management, and are in fields where social and economic trends,
technological developments, and new processes or products indicate a potential
for greater-than-average growth. Villanova Mutual Fund Capital Trust serves as
the Fund's investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE FOR OWNERS WHOSE
PREDECESSOR NATIONWIDE DCVA CONTRACT WAS ISSUED ON OR AFTER JANUARY 1, 1987:
FIDELITY CAPITAL & INCOME FUND
The investment objective of the Fund is to seek to provide a combination of
income and capital growth by investing primarily in debt instruments and common
and preferred stocks, with a focus on lower-quality debt securities and
securities of companies with uncertain financial positions. Fidelity Management
& Research Company serves as the Fund's investment adviser.
Effective on and after July 1, 1991, Nationwide will no longer permit contract
owners or participants to make additional purchase payments or to exchange
contract values into the Fidelity Capital & Income Fund. However, contract
values held in the Fidelity Capital & Income Fund as of July 1, 1991 may
continue to be invested in that sub-account. Unless Nationwide is notified
otherwise, any purchase payments or exchanges which the contract owner or
participant directs Nationwide to invest in the Fidelity Capital & Income Fund
on and after July 1, 1991 will instead be automatically invested in the
Nationwide Money Market Fund.
Nationwide has determined that further investment in the Fidelity Capital &
Income
43
<PAGE> 44
Fund is not in the best interests of the contract owners and participants in
view of the Fund's adoption, effective for shares purchased on and after
February 1, 1991, of a redemption fee equal to 1.5% of the net asset value of
any Fund shares redeemed which are held less than twelve months. Any redemption
fees which the Fund may assess against Fund shares held by Nationwide in the
NACo Variable Account which were purchased from February 1, 1991 to July 1, 1991
will be paid by Nationwide from surplus and will not be paid, directly or
indirectly, by contract owners, participants or the NACo Variable Account.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER MAY 1, 2000:
AMERICAN CENTURY - INTERNATIONAL DISCOVERY - INVESTOR CLASS
The investment objective of the Fund is capital growth by investing primarily in
an internationally diversified portfolio of equity securities of issuers that
meet certain fundamental and technical standards of selection (relating
primarily to acceleration of earnings and revenues). The Fund will invest its
assets primarily in equity securities of small foreign issuers (those issuers
having, at the time of investment, a market capitalization of less than U.S. $1
billion or a public float of less than U.S. $500 million). The "public float" of
an issuer is defined as the aggregate market value of the issuer's outstanding
securities held by non-affiliates of the issuer. The Fund may invest up to 50%
of its assets in securities of issuers in emerging market countries. DUE TO THE
SIGNIFICANT RISKS ASSOCIATED WITH THE FUND'S INVESTMENT STRATEGY, AN INVESTMENT
IN THE FUND MAY NOT BE APPROPRIATE FOR ALL INVESTORS. American Century
Investment Management, Inc. serves as the Fund's investment adviser.
WARBURG PINCUS EMERGING GROWTH FUND - COMMON CLASS
The investment objective of the Fund is to seek maximum capital appreciation by
investing in equity securities of small- to medium- sized companies in the
United States with emerging or renewed growth potential. Credit Suisse Asset
Management, LLC serves as the Fund's investment adviser.
44
<PAGE> 45
APPENDIX B: CONDENSED FINANCIAL INFORMATION
The condensed financial information shown in the following tables shows the
accumulation unit values for an accumulation unit outstanding throughout the
period.
Variable Account Annual Expense Fee of 0.95% of average net assets
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.915964 10.560508 33.41% 5,707,048 1999
Investor Class --------------------- -------------------- ------------------- ------------------------- ---------
5.842997 7.915964 35.48% 6,270,208 1998
--------------------- -------------------- ------------------- ------------------------- ---------
4.562802 5.842997 28.06% 17,611,062 1997
--------------------- -------------------- ------------------- ------------------------- ---------
4.005400 4.562802 13.92% 15,929,074 1996
--------------------- -------------------- ------------------- ------------------------- ---------
3.359891 4.005400 19.21% 37,362,979 1995
--------------------- -------------------- ------------------- ------------------------- ---------
3.443124 3.359891 -2.42% 38,748,520 1994
--------------------- -------------------- ------------------- ------------------------- ---------
3.350122 3.443124 2.78% 41,912,416 1993
--------------------- -------------------- ------------------- ------------------------- ---------
3.533694 3.350122 -5.19% 43,106,409 1992
--------------------- -------------------- ------------------- ------------------------- ---------
2.571846 3.533694 37.40% 31,955,054 1991
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
American Century: Ultra - 2.316089 3.245463 40.13% 65,151,483 1999
Investor Class --------------------- -------------------- ------------------- ------------------------- ---------
1.737833 2.316089 33.27% 59,827,396 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.424846 1.737833 21.97% 125,555,220 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.263551 1.424846 12.77% 51,280,940 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.926489 1.263551 36.38% 79,405,506 1995
--------------------- -------------------- ------------------- ------------------------- ---------
0.970411 0.926489 -4.53% 59,484,505 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.970411 -2.96% 21,036,904 1993
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
The Bond Fund of America(SM), 2.429862 2.461916 1.32% 2,893,175 1999
Inc. --------------------- -------------------- ------------------- ------------------------- ---------
2.332586 2.429862 4.17% 3,149,438 1998
--------------------- -------------------- ------------------- ------------------------- ---------
2.155739 2.332586 8.20% 6,366,974 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.039710 2.155739 5.69% 3,393,296 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.741422 2.039710 17.13% 6,578,720 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.850918 1.741422 -5.92% 5,740,929 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.637181 1.850918 13.06% 5,644,051 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.484255 1.637181 10.30% 4,185,113 1992
--------------------- -------------------- ------------------- ------------------------- ---------
1.338732 1.484255 10.87% 3,262,200 1991*
-------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
The Brown Capital Management - 1.000000 1.333508 33.35% 373,898 1999
Small Company Fund --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Dreyfus Appreciation Fund, Inc. 1.079920 1.176338 8.93% 4,345,914 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.079920 7.99% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Dreyfus Premier Midcap Stock 1.133060 1.241686 9.59% 389,835 1999
Fund - Class A --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.133060 13.31% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
45
<PAGE> 46
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION
OF PERIOD PERIOD UNIT VALUE UNITS OUTSTANDING
AT THE END OF THE
PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
The Dreyfus Premier Third 4.554448 5.872109 28.93% 16,766,182 1999
Century Fund, Inc. - Class Z --------------------- -------------------- ------------------- ------------------------- ---------
3.532278 4.554448 28.94% 172 1998
--------------------- -------------------- ------------------- ------------------------- ---------
2.756438 3.532278 28.15% 14,863,803 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.238323 2.756438 23.15% 5,449,596 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.663803 2.238323 34.53% 9,402,637 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.814915 1.663803 -8.33% 9,817,673 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.740666 1.814915 4.27% 10,291,485 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.723855 1.740666 0.98% 8,918,980 1992
--------------------- -------------------- ------------------- ------------------------- ---------
1.503652 1.723855 14.64% 4,654,790 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Evergreen Income and Growth Fund 2.380651 2.744107 15.27% 449,769 1999
- - Class Y --------------------- -------------------- ------------------- ------------------------- ---------
2.422617 2.380651 -1.73% 569,094 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.947502 2.422617 24.40% 1,666,312 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.741651 1.947502 11.82% 1,070,229 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.419467 1.741651 22.70% 2,635,928 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.531292 1.419467 -7.30% 3,343,918 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.368966 1.531292 11.86% 10,220,011 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.256090 1.368966 8.99% 8,701,160 1992
--------------------- -------------------- ------------------- ------------------------- ---------
1.146614 1.256090 9.55% 7,977,105 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Federated U.S. Government 1.394078 1.373628 -1.47% 3,148,641 1999
Securities Fund: 2-5 Years - --------------------- -------------------- ------------------- ------------------------- ---------
Institutional Shares 1.301886 1.394078 7.08% 3,088,503 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.226751 1.301886 6.12% 3,296,152 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.195751 1.226751 2.59% 1,296,431 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.062969 1.195751 12.49% 2,344,091 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.094086 1.062969 -2.84% 1,802,090 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.031362 1.094086 6.08% 1,501,568 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.031362 3.14% 359,089 1992
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Advisor Growth 1.089087 1.122853 3.10% 2,131,628 1999
Opportunities Fund - Class A --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.089087 8.91% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Advisor High Yield Fund 1.064478 1.142492 7.33% 918,451 1999
- - Class T --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.064478 6.45% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Capital & Income Fund 4.829318 5.414988 12.13% 157,277 1999
--------------------- -------------------- ------------------- ------------------------- ---------
4.654233 4.829318 3.76% 187,924 1998
--------------------- -------------------- ------------------- ------------------------- ---------
4.096488 4.654233 13.26% 570,207 1997
--------------------- -------------------- ------------------- ------------------------- ---------
3.712491 4.096488 10.34% 294,263 1996
--------------------- -------------------- ------------------- ------------------------- ---------
3.210584 3.712491 15.63% 818,785 1995
--------------------- -------------------- ------------------- ------------------------- ---------
3.397953 3.210584 -5.51% 900,127 1994
--------------------- -------------------- ------------------- ------------------------- ---------
2.746533 3.397953 23.72% 1,009,928 1993
--------------------- -------------------- ------------------- ------------------------- ---------
2.165417 2.746533 26.84% 1,100,291 1992
--------------------- -------------------- ------------------- ------------------------- ---------
1.972198 2.165417 9.80% 1,260,909 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
46
<PAGE> 47
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Fidelity Contrafund(R) 2.522162 3.124830 23.89% 84,298,429 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.935931 2.522162 30.28% 79,731,135 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.588961 1.935931 21.84% 165,606,687 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.315600 1.588961 20.78% 63,488,282 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.974545 1.315600 38.84% 86,483,728 1995
--------------------- -------------------- ------------------- ------------------------- ---------
0.994981 0.974545 -4.77% 59,048,072 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.994981 -0.50% 17,300,194 1993
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Equity-Income Fund 7.691828 8.164209 6.14% 18,191,499 1999
--------------------- -------------------- ------------------- ------------------------- ---------
6.900916 7.691828 11.46% 20,055,246 1998
--------------------- -------------------- ------------------- ------------------------- ---------
5.359692 6.900916 28.76% 51,141,002 1997
--------------------- -------------------- ------------------- ------------------------- ---------
4.471070 5.359692 19.87% 21,843,280 1996
--------------------- -------------------- ------------------- ------------------------- ---------
3.424310 4.471070 30.57% 41,090,717 1995
--------------------- -------------------- ------------------- ------------------------- ---------
3.448520 3.424310 -0.70% 37,439,255 1994
--------------------- -------------------- ------------------- ------------------------- ---------
2.869860 3.448520 20.16% 30,564,448 1993
--------------------- -------------------- ------------------- ------------------------- ---------
2.526472 2.869860 13.59% 25,417,028 1992
--------------------- -------------------- ------------------- ------------------------- ---------
2.283309 2.526472 10.65% 24,200,256 1991
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Magellan(R) Fund 2.389171 2.935682 22.87% 36,026,007 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.804998 2.389171 32.36% 33,527,719 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.439440 1.804998 25.40% 68,868,962 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.301185 1.439440 10.63% 35,450,214 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.960039 1.301185 35.53% 63,751,788 1995
--------------------- -------------------- ------------------- ------------------------- ---------
0.987051 0.960039 -2.74% 43,410,162 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.987051 -129% 9,307,585 1993
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity OTC Portfolio 2.544511 4.348555 70.90% 12,343,613 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.829868 2.544511 39.05% 7,583,243 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.680710 1.829868 8.87% 17,193,114 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.371346 1.680710 22.56% 4,002,730 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.001544 1.371346 36.92% 3,611,136 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.001544 0.15% 414,031 1994
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Puritan Fund 1.843889 1.878662 1.89% 11,531,186 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.596539 1.843889 15.49% 10,568,994 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.317344 1.596539 21.19% 19,817,717 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.154955 1.317344 14.06% 8,701,486 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.959935 1.154955 20.32% 11,375,851 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.959935 -4.01% 3,191,039 1994
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
The Investment Company of 2.773161 3.201730 15.45% 16,605,220 1999
America(R), Inc. --------------------- -------------------- ------------------- ------------------------- ---------
2.277283 2.773161 21.77% 15,826,712 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.771097 2.277283 28.58% 31,651,569 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.498194 1.771097 18.22% 14,871,400 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.157835 1.498194 29.40% 21,189,283 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.167040 1.157835 -0.79% 15,911,747 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.055548 1.167040 10.56% 9,316,764 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.055548 5.55% 1,904,764 1992
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
47
<PAGE> 48
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
INVESCO Dynamics Fund 1.172201 1.994791 70.17% 15,490,146 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.172201 17.22% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
INVESCO Total Return Fund 1.023467 1.000023 -2.29% 1,169,616 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.023467 2.35% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
MAS Funds Fixed Income Portfolio 1.413926 1.391983 -1.55% 1,710,525 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.335173 1.413926 5.90% 1,989,011 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.229760 1.335173 8.57% 2,016,658 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.156444 1.229760 6.34% 554,865 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.980782 1.156444 17.91% 461,663 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.980782 -1.92% 16,059 1994
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
MFS(R) Growth Opportunities Fund - 11.531693 15.172145 31.57% 620,939 1999
Class A --------------------- -------------------- ------------------- ------------------------- ---------
9.012670 11.531693 27.95% 657,789 1998
--------------------- -------------------- ------------------- ------------------------- ---------
7.380232 9.012670 22.12% 1,768,566 1997
--------------------- -------------------- ------------------- ------------------------- ---------
6.114190 7.380232 20.71% 1,022,657 1996
--------------------- -------------------- ------------------- ------------------------- ---------
4.589533 6.114190 33.22% 2,209,754 1995
--------------------- -------------------- ------------------- ------------------------- ---------
4.834037 4.589533 -5.06% 2,656,048 1994
--------------------- -------------------- ------------------- ------------------------- ---------
4.200054 4.834037 15.09% 6,486,767 1993
--------------------- -------------------- ------------------- ------------------------- ---------
3.936838 4.200054 6.69% 6,897,026 1992
--------------------- -------------------- ------------------- ------------------------- ---------
3.656615 3.936838 7.66% 7,710,706 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
MFS(R) High Income Fund - Class A 6.172749 6.542182 5.98% 1,154,155 1999
--------------------- -------------------- ------------------- ------------------------- ---------
6.168371 6.172749 0.07% 1,376,013 1998
--------------------- -------------------- ------------------- ------------------------- ---------
5.518160 6.168371 11.78% 2,328,945 1997
--------------------- -------------------- ------------------- ------------------------- ---------
4.949752 5.518160 11.48% 1,009,326 1996
--------------------- -------------------- ------------------- ------------------------- ---------
4.265493 4.949752 16.04% 1,898,625 1995
--------------------- -------------------- ------------------- ------------------------- ---------
4.422523 4.265493 -3.55% 1,736,718 1994
--------------------- -------------------- ------------------- ------------------------- ---------
3.739642 4.422523 18.26% 1,666,484 1993
--------------------- -------------------- ------------------- ------------------------- ---------
3.225557 3.739642 15.94% 1,036,199 1992
--------------------- -------------------- ------------------- ------------------------- ---------
2.894993 3.225557 11.42% 817,803 1991
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Massachusetts Investors Growth 22.143725 30.435351 37.44% 291,339 1999
Stock Fund - Class A --------------------- -------------------- ------------------- ------------------------- ---------
15.968069 22.143725 38.68% 310,155 1998
--------------------- -------------------- ------------------- ------------------------- ---------
10.880822 15.968069 46.75% 801,488 1997
--------------------- -------------------- ------------------- ------------------------- ---------
8.942612 10.880822 21.67% 491,538 1996
--------------------- -------------------- ------------------- ------------------------- ---------
7.034148 8.942612 27.13% 877,034 1995
--------------------- -------------------- ------------------- ------------------------- ---------
7.613442 7.034148 -7.61% 876,723 1994
--------------------- -------------------- ------------------- ------------------------- ---------
6.714892 7.613442 13.38% 837,196 1993
--------------------- -------------------- ------------------- ------------------------- ---------
6.368639 6.714892 5.44% 711,003 1992
--------------------- -------------------- ------------------- ------------------------- ---------
5.100857 6.368639 24.85% 559,059 1991
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
48
<PAGE> 49
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Nationwide(R) Fund - Class D 26.722904 26.409607 -1.17% 7,641,979 1999
--------------------- -------------------- ------------------- ------------------------- ---------
20.697282 26.722904 29.11% 36 1998
--------------------- -------------------- ------------------- ------------------------- ---------
14.964379 20.697282 38.31% 4,299,707 1997
--------------------- -------------------- ------------------- ------------------------- ---------
12.191058 14.964379 22.75% 1,456,965 1996
--------------------- -------------------- ------------------- ------------------------- ---------
9.468045 12.191058 28.76% 2,755,666 1995
--------------------- -------------------- ------------------- ------------------------- ---------
9.502760 9.468045 -0.37% 2,754,540 1994
--------------------- -------------------- ------------------- ------------------------- ---------
8.985447 9.502760 5.76% 2,950,704 1993
--------------------- -------------------- ------------------- ------------------------- ---------
8.810680 8.985447 1.98% 3,032,348 1992
--------------------- -------------------- ------------------- ------------------------- ---------
7.837093 8.810680 12.42% 2,238,323 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Nationwide(R) Growth Fund - 4.725203 5.459300 15.54% 608,149 1999
Class D --------------------- -------------------- ------------------- ------------------------- ---------
3.854877 4.725203 22.58% 679,189 1998
--------------------- -------------------- ------------------- ------------------------- ---------
3.083008 3.854877 25.04% 1,987,181 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.667201 3.083008 15.59% 1,157,824 1996
--------------------- -------------------- ------------------- ------------------------- ---------
2.092009 2.667201 27.49% 2,409,384 1995
--------------------- -------------------- ------------------- ------------------------- ---------
2.081399 2.092009 0.51% 2,602,594 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.887524 2.081399 10.27% 6,293,504 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.792687 1.887524 5.29% 5,507,203 1992
--------------------- -------------------- ------------------- ------------------------- ---------
1.498853 1.792687 19.60% 4,283,563 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Nationwide(R) Money Market Fund - 3.126448 3.241560 3.68% 28,870,336 1999
Prime Shares* --------------------- -------------------- ------------------- ------------------------- ---------
3.003821 3.126448 4.08% 0 1998
--------------------- -------------------- ------------------- ------------------------- ---------
2.884848 3.003821 4.12% 5,808,984 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.774433 2.884848 3.98% 6,821,937 1996
--------------------- -------------------- ------------------- ------------------------- ---------
2.654661 2.774433 4.51% 15,458,252 1995
--------------------- -------------------- ------------------- ------------------------- ---------
2.583387 2.654661 2.76% 14,664,113 1994
--------------------- -------------------- ------------------- ------------------------- ---------
2.542721 2.583387 1.60% 15,887,549 1993
--------------------- -------------------- ------------------- ------------------------- ---------
2.487178 2.542721 2.23% 17,431,451 1992
--------------------- -------------------- ------------------- ------------------------- ---------
2.433806 2.487178 2.19% 20,546,392 1991
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Nationwide S&P 500(R) Index Fund 1.093335 1.297364 18.66% 6,347,979 1999
- - Institutional Service Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.093335 9.33% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Prestige Balanced Fund - 1.060654 1.148147 8.25% 601,624 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.060654 6.07% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Prestige International Fund - 1.091712 1.312511 20.23% 266,519 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.091712 9.17% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Prestige Large Cap Growth Fund - 1.139190 1.521478 33.56% 1,613,687 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.139190 13.92% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
49
<PAGE> 50
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Prestige Large Cap Value Fund - 1.049084 0.990976 -5.54% 500,299 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.049084 4.91% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Prestige Small Cap Fund - 1.090028 1.282305 17.64% 639,055 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.090028 9.00% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Nationwide Separate Account 0.961847 1.372165 42.66% 4,210,485 1999
Trust - Nationwide Small Company --------------------- -------------------- ------------------- ------------------------- ---------
Fund 0.961325 0.961847 0.05% 0 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.961325 -3.87% 0 1997
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Nationwide Separate Account 1.000000 1.004737 0.47% 76,327 1999
Trust - Nationwide Income Fund
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
LifeDesigns Series - The 1.149592 1.414142 23.01% 3,343,311 1999
Aggressive Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.149592 14.96% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
LifeDesigns Series - The 1.107721 1.138660 2.79% 1,407816 1999
Conservative Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.107721 10.77% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
LifeDesigns Series - The 1.143295 1.301106 13.80% 3,402,725 1999
Moderate Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.143295 14.33% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
LifeDesigns Series - The 1.140824 1.348570 18.21% 3,687,537 1999
Moderately Aggressive Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.140824 14.08% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
LifeDesigns Series - The 1.129262 1.228184 8.76% 1,438,273 1999
Moderately Conservative Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.129262 12.93% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Neuberger Berman Guardian Fund, 1.729738 1.858329 7.43% 8,085,725 1999
Inc. --------------------- -------------------- ------------------- ------------------------- ---------
1.706116 1.729738 1.38% 9,040,807 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.460410 1.706116 16.82% 23,446,031 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.250781 1.460410 16.76% 6,973,153 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.955773 1.250781 30.87% 7,940,457 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.955773 -4.42% 907,272 1994
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Neuberger Berman Partners Trust 1.041626 1.111167 6.68% 172,552 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.041626 4.16% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Oppenheimer Global Fund - Class A 1.106231 1.736568 56.98% 2,423,388 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.106231 10.62% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
50
<PAGE> 51
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Putnam Investors Fund - Class A 24.311753 31.341504 28.92% 2,614,963 1999
--------------------- -------------------- ------------------- ------------------------- ---------
18.110411 24.311753 34.24% 2,421,935 1998
--------------------- -------------------- ------------------- ------------------------- ---------
13.594501 18.110411 33.22% 3,305,277 1997
--------------------- -------------------- ------------------- ------------------------- ---------
11.305164 13.594501 20.25% 1,545,059 1996
--------------------- -------------------- ------------------- ------------------------- ---------
8.297318 11.305164 36.25% 2,260,621 1995
--------------------- -------------------- ------------------- ------------------------- ---------
8.652501 8.297318 -4.10% 2,145,377 1994
--------------------- -------------------- ------------------- ------------------------- ---------
7.410567 8.652501 16.76% 1,975,963 1993
--------------------- -------------------- ------------------- ------------------------- ---------
6.934213 7.410567 6.87% 1,682,860 1992
--------------------- -------------------- ------------------- ------------------------- ---------
6.383603 6.934213 8.63% 1,597,104 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Putnam Voyager Fund - Class A 4.715165 7.292508 54.66% 28,160,360 1999
--------------------- -------------------- ------------------- ------------------------- ---------
3.837109 4.715165 22.88% 27,161,675 1998
--------------------- -------------------- ------------------- ------------------------- ---------
3.074879 3.837109 24.79% 52,162,678 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.752130 3.074879 11.73% 22,936,312 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.982311 2.752130 38.83% 27,203,903 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.992379 1.982311 -0.51% 19,751,850 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.698751 1.992379 17.28% 12,946,038 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.563079 1.698751 8.68% 5,917,563 1992
--------------------- -------------------- ------------------- ------------------------- ---------
1.256187 1.563079 24.43% 1,655,847 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
SEI Index Funds - S&P 500 Index 1.0909266 2.284904 19.67% 37,302,650 1999
Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.501834 1.909266 27.13% 28,576,205 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.139331 1.501834 31.82% 38,540,683 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.139331 13.93% 4,129,102 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Seligman Growth Fund, Inc. - 16.801408 21.680777 29.04% 363,615 1999
Class A --------------------- -------------------- ------------------- ------------------------- ---------
12.541848 16.801408 33.96% 352,047 1998
--------------------- -------------------- ------------------- ------------------------- ---------
10.720312 12.541848 16.99% 772,926 1997
--------------------- -------------------- ------------------- ------------------------- ---------
8.934609 10.720312 19.99% 381,977 1996
--------------------- -------------------- ------------------- ------------------------- ---------
7.020585 8.934609 27.26% 616,776 1995
--------------------- -------------------- ------------------- ------------------------- ---------
7.370495 7.020585 -4.75% 582,039 1994
--------------------- -------------------- ------------------- ------------------------- ---------
6.989639 7.370495 5.45% 538,601 1993
--------------------- -------------------- ------------------- ------------------------- ---------
6.340967 6.989639 10.23% 364,304 1992
--------------------- -------------------- ------------------- ------------------------- ---------
5.483042 6.340967 15.65% 308,224 1991*
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
51
<PAGE> 52
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Short-Term Investments Trust - 1.276562 1.327776 4.01% 3,245,4659 1999
Treasury Portfolio - --------------------- -------------------- ------------------- ------------------------- ---------
Institutional Class ** 1.222017 1.276562 4.46% 1,766,084 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.168909 1.222017 4.54% 3,399,331 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.119630 1.168909 4.40% 1,151,812 1996
--------------------- -------------------- ------------------- ------------------------- ---------
1.066889 1.119630 4.94% 1,524,715 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.034183 1.066889 3.16% 1,223,255 1994
--------------------- -------------------- ------------------- ------------------------- ---------
1.012172 1.034183 2.17% 500,957 1993
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.012172 1.22% 246,584 1992
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Templeton Foreign Fund - Class A 1.209836 1.668314 37.09% 34,231,502 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.284158 1.209836 -5.79% 0 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.215580 1.284158 5.64% 18,596,589 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.040054 1.215580 16.88% 13,461,397 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.944596 1.040054 10.11% 16,316,118 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.944596 -5.54% 6,972,585 1994
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
T. Rowe Price International 1.379298 1.839019 33.33% 9,450,213 1999
Stock Fund(R) --------------------- -------------------- ------------------- ------------------------- ---------
1.198954 1.379298 15.04% 9,434,812 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.178559 1.198954 1.73% 23,881,713 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.025854 1.178559 14.89% 9,304,599 1996
--------------------- -------------------- ------------------- ------------------------- ---------
0.929695 1.025854 10.34% 10,412,582 1995
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 0.929695 -7.03% 4,482,375 1994
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Warburg Pincus Emerging Growth 1.139928 1.601232 40.47% 615,114 1999
Fund - Common Class --------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.139928 13.99% 0 1998
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
* Period from July 1, 1991 (the date participant accounts of the NACo program
were transferred from the Nationwide DC Variable Account to the NACo Variable
Account and the NACo Variable Account began operations exclusive to the NACo
program).
** The 7-day yield on the Short-Term Investment Trust - Treasury Portfolio -
Institutional Class as of December 31, 1999 was 3.80%.
The Brown Capital Management - Small Company Fund and the NSAT - Nationwide
Income Fund were added to the variable account October 1, 1999. Therefore, the
Condensed Financial Information reflects the period from October 1, 1999 to
December 31, 1999.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A, were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
52
<PAGE> 53
Variable Account Annual Expense Fee of 0.90% of average net assets
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.926529 10.579885 33.47% 3,347,303 1999
Investor Class --------------------- -------------------- ------------------- ------------------------- ---------
5.847874 7.926529 35.55% 3,210,215 1998
--------------------- -------------------- ------------------- ------------------------- ---------
4.564331 5.847874 28.12% 2,972,496 1997
--------------------- -------------------- ------------------- ------------------------- ---------
4.258167 4.564331 7.19% 6,416,724 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
American Century: Ultra - 2.319181 3.251418 40.20% 30,085,075 1999
Investor Class --------------------- -------------------- ------------------- ------------------------- ---------
1.739283 2.319181 33.34% 25,526,505 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.425323 1.739283 22.03% 17,512,296 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.349699 1.425323 5.60% 17,364,360 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
The Bond Fund of America(SM), 2.433154 2.466496 1.37% 1,583,478 1999
Inc. --------------------- -------------------- ------------------- ------------------------- ---------
2.334569 2.433154 4.22% 1,615,501 1998
--------------------- -------------------- ------------------- ------------------------- ---------
2.156482 2.334569 8.26% 838,935 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.019231 2.156482 6.80% 1,041,402 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Evergreen Income and Growth Fund 2.383829 2.749144 15.32% 236,494 1999
- - Class Y --------------------- -------------------- ------------------- ------------------------- ---------
2.424638 2.383829 -1.68% 288,461 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.948154 2.424638 24.46% 164,209 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.797369 1.948154 8.39% 267,437 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Federated U.S. Government 1.395957 1.376174 -1.42% 1,609,939 1999
Securities Fund: 2-5 Years - --------------------- -------------------- ------------------- ------------------------- ---------
Institutional Shares 1.302984 1.395957 7.14% 1,498,243 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.227166 1.302984 6.18% 485,556 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.179520 1.227166 4.04% 431,282 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Capital & Income Fund 4.835829 5.425025 12.18% 63,602 1999
--------------------- -------------------- ------------------- ------------------------- ---------
4.658156 4.835829 3.81% 59,194 1998
--------------------- -------------------- ------------------- ------------------------- ---------
4.097872 4.658156 13.67% 50,755 1997
--------------------- -------------------- ------------------- ------------------------- ---------
3.859929 4.097872 6.16% 76,382 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Contrafund(R) 2.525528 3.130565 23.96% 40,184,712 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.937547 2.525528 30.35% 34,985,707 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.589493 1.937547 21.90% 23,258,606 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.428112 1.589493 11.30% 22,719,185 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Equity-Income Fund 7.702094 8.179193 6.19% 10,324,567 1999
--------------------- -------------------- ------------------- ------------------------- ---------
6.906673 7.702094 11.52% 10,047,811 1998
--------------------- -------------------- ------------------- ------------------------- ---------
5.361485 6.906673 28.82% 6,412,368 1997
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
4.790401 5.361485 11.92% 7,437,534 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
53
<PAGE> 54
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Fidelity Magellan(R) Fund 2.392359 2.941068 22.94% 16,600,165 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.806504 2.392359 32.43% 13,728,148 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.439922 1.806504 25.46% 9,967,418 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.327329 1.439922 8.48% 12,036,679 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity OTC Portfolio 2.547908 4.356533 70.98% 6,382,037 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.831396 2.547908 39.12% 3,156,471 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.681272 1.831396 8.93% 2,364,115 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.509365 1.681272 11.39% 1,269,335 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Fidelity Puritan Fund 1.846350 1.882110 1.94% 5,616,280 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.597871 1.846350 15.55% 5,207,051 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.317785 1.597871 21.25% 2,540,462 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.202745 1.317785 9.56% 3,037,801 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
The Investment Company of 2.776862 3.207605 15.51% 8,076,180 1999
America(R), Inc. --------------------- -------------------- ------------------- ------------------------- ---------
2.279183 2.776862 21.84% 6,890,273 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.771690 2.279183 28.64% 5,422,918 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.588880 1.771690 11.51% 5,329,249 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
MAS Funds Fixed Income Portfolio 1.415813 1.394539 -1.50% 761,207 1999
--------------------- -------------------- ------------------- ------------------------- ---------
1.336288 1.415813 5.95% 991,972 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.230172 1.336288 8.63% 274,281 1997
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
1.148924 1.230172 7.07% 236,446 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
MFS(R) Growth Opportunities Fund 11.547088 15.199990 31.63% 336,193 1999
- - Class A --------------------- -------------------- ------------------- ------------------------- ---------
9.020195 11.547088 28.01% 366,180 1998
--------------------- -------------------- ------------------- ------------------------- ---------
7.382705 9.020195 22.18% 235,276 1997
--------------------- -------------------- ------------------- ------------------------- ---------
6.921487 7.382705 6.66% 323,628 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
MFS(R) High Income Fund - Class A 6.181070 6.554308 6.04% 530,540 1999
--------------------- -------------------- ------------------- ------------------------- ---------
6.173570 6.181070 0.12% 516,943 1998
--------------------- -------------------- ------------------- ------------------------- ---------
5.520025 6.173570 11.84% 244,788 1997
--------------------- -------------------- ------------------- ------------------------- ---------
5.086868 5.520025 8.52% 244,640 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Massachusetts Investors Growth 22.173275 30.491188 37.51% 148,153 1999
Stock Fund - Class A --------------------- -------------------- ------------------- ------------------------- ---------
15.981395 22.173275 38.74% 143,669 1998
--------------------- -------------------- ------------------- ------------------------- ---------
10.884466 15.981395 46.83% 111,799 1997
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
10.146619 10.884466 7.27% 155,643 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
54
<PAGE> 55
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
<S> <C> <C> <C> <C> <C>
Nationwide(R) Growth Fund - 4.731510 5.469318 15.59% 418,385 1999
Class D --------------------- -------------------- ------------------- ------------------------- ---------
3.858094 4.731510 22.64% 408,603 1998
--------------------- -------------------- ------------------- ------------------------- ---------
3.084040 3.858094 25.10% 360,606 1997
--------------------- -------------------- ------------------- ------------------------- ---------
2.839932 3.084040 8.60% 507,782 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Neuberger Berman Guardian Fund, 1.732048 1.861741 7.49% 3,862,738 1999
Inc. --------------------- -------------------- ------------------- ------------------------- ---------
1.707540 1.732048 1.44% 4,341,380 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.460899 1.707540 16.88% 3,222,201 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.325880 1.460899 10.18% 2,513,725 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Putnam Investors Fund - Class A 24.344197 31.399010 28.98% 1,097,069 1999
--------------------- -------------------- ------------------- ------------------------- ---------
18.125525 24.344197 34.31% 897,593 1998
--------------------- -------------------- ------------------- ------------------------- ---------
13.599051 18.125525 33.29% 329,877 1997
--------------------- -------------------- ------------------- ------------------------- ---------
12.145782 13.599051 11.97% 371,840 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Putnam Voyager Fund - Class A 4.721461 7.305890 54.74% 12,707,716 1999
--------------------- -------------------- ------------------- ------------------------- ---------
3.840312 4.721461 22.94% 10,644,754 1998
--------------------- -------------------- ------------------- ------------------------- ---------
3.075909 3.840312 24.85% 7,200,296 1997
--------------------- -------------------- ------------------- ------------------------- ---------
3.068900 3.075909 0.23% 7,518,991 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
SEI Index Funds - S&P 500 Index 1.911811 2.289108 19.74% 15,887,411 1999
Portfolio --------------------- -------------------- ------------------- ------------------------- ---------
1.503085 1.911811 27.19% 12,293,095 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.139711 1.503085 31.88% 5,223,019 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.000000 1.139711 13.97% 1,547,081 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Seligman Growth Fund, Inc. - 16.823830 21.720557 29.11% 196,213 1999
Class A --------------------- -------------------- ------------------- ------------------------- ---------
12.552317 16.823830 34.03% 174,614 1998
--------------------- -------------------- ------------------- ------------------------- ---------
10.723901 12.552317 17.05% 80,990 1997
--------------------- -------------------- ------------------- ------------------------- ---------
9.776056 10.723901 9.70% 90,771 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
Short-Term Investments - Trust - 1.278283 1.330237 4.06% 1,054,742 1999
Treasury Portfolio - --------------------- -------------------- ------------------- ------------------------- ---------
Institutional Class* 1.223047 1.278283 4.52% 1,030,158 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.169304 1.223047 4.60% 203,199 1997
--------------------- -------------------- ------------------- ------------------------- ---------
1.135916 1.169304 2.94% 201,261 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
T. Rowe Price International 1.381139 1.842393 33.40% 4,231,419 1999
Stock Fund(R) --------------------- -------------------- ------------------- ------------------------- ---------
1.199955 1.381139 15.10% 3,948,203 1998
--------------------- -------------------- ------------------- ------------------------- ---------
1.178953 1.199955 1.78% 3,056,840 1997
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
1.108680 1.178953 6.34% 3,705,323 1996
- --------------------------------- --------------------- -------------------- ------------------- ------------------------- ---------
</TABLE>
* The 7-day yield on the Short-Term Investment Trust - Treasury Portfolio -
Institutional Class as of December 31, 1999 was 3.85%.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
55
<PAGE> 56
Variable Account Annual Expense Fee of 0.80% of average net assets
<TABLE>
<CAPTION>
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
American Century: Income & 1.097995 1.284360 17.02% 3,764,884 1999
Growth - Investor Class ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.097995 9.76% 76,300 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
American Century: Growth - 7.947702 10.618746 33.61% 2,936,941 1999
Investor Class ---------------------- -------------------- ------------------- ------------------------ ---------
5.857641 7.947702 35.68% 2,832,513 1998
---------------------- -------------------- ------------------- ------------------------ ---------
4.567388 5.857641 28.25% 1,491,035 1997
---------------------- -------------------- ------------------- ------------------------ ---------
4.258179 4.567388 7.26% 3,952,718 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
American Century: International 1.084264 2.028049 87.04% 2,162,693 1999
Discovery - Investor Class ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.084264 8.43% 103,189 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
American Century: Ultra - 2.325375 3.263360 40.34% 24,412,865 1999
Investor Class ---------------------- -------------------- ------------------- ------------------------ ---------
1.742188 2.325375 33.47% 20,465,127 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.426278 1.742188 22.15% 9,471,388 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.349702 1.426278 5.67% 11,724,488 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
The Bond Fund of America(SM), 2.439748 2.475675 1.47% 845,978 1999
Inc. ---------------------- -------------------- ------------------- ------------------------ ---------
2.338535 2.439748 4.33% 954,957 1998
---------------------- -------------------- ------------------- ------------------------ ---------
2.157968 2.338535 8.37% 597,695 1997
---------------------- -------------------- ------------------- ------------------------ ---------
2.019264 2.157968 6.87& 737,276 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Dreyfus Appreciation Fund, Inc. 1.080133 1.178335 9.09% 1,675,249 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.080133 8.01% 60,330 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Dreyfus Premier Midcap Stock 1.133283 1.243793 9.75% 189,449 1999
Fund - Class A ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.133283 13.33% 6,837 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
The Dreyfus Premier Third 4.572707 5.904491 29.12% 6,853,289 1999
Century Fund, Inc. - Class Z ---------------------- -------------------- ------------------- ------------------------ ---------
3.541129 4.572707 29.13% 6,657,158 1998
---------------------- -------------------- ------------------- ------------------------ ---------
2.759207 3.541129 28.34% 917,688 1997
---------------------- -------------------- ------------------- ------------------------ ---------
2.450473 2.759207 12.60% 1,075,140 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Evergreen Income and Growth Fund 2.390198 2.759246 15.44% 121,424 1999
- - Class Y ---------------------- -------------------- ------------------- ------------------------ ---------
2.428687 2.390198 -1.58% 111,941 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.949458 2.428687 24.58% 130,014 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.797374 1.949458 8.46% 303,775 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Federated Bond Fund - Class F 1.018687 0.986932 -3.12% 391,834 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.018687 1.87% 77,098 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
56
<PAGE> 57
<TABLE>
<CAPTION>
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
Federated U.S. Government 1.399720 1.381277 -1.32% 966,135 1999
Securities Fund: 2-5 Years - ---------------------- -------------------- ------------------- ------------------------ ---------
Institutional Shares 1.305179 1.399720 7.24% 1,061,815 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.227995 1.305179 6.29% 241,356 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.179523 1.227995 4.11% 184,497 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Advisor Growth 1.089301 1.124760 3.26% 1,065,003 1999
Opportunities Fund - Class A ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.089301 8.93% 32,561 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Advisor High Yield Fund 1.064751 1.144516 7.49% 288,717 1999
- - Class T ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.064751 6.48% 395 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Capital & Income Fund 4.848865 5.445140 12.30% 54,447 1999
---------------------- -------------------- ------------------- ------------------------ ---------
4.666006 4.848865 3.92% 60,278 1998
---------------------- -------------------- ------------------- ------------------------ ---------
4.100640 4.666006 13.79% 120,784 1997
---------------------- -------------------- ------------------- ------------------------ ---------
3.859939 4.100640 6.24% 203,017 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Contrafund(R) 2.532274 3.142065 24.08% 28,730,584 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.940782 2.532274 30.48% 26,018,143 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.590557 1.940782 22.02% 12,620,829 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.428116 1.590557 11.37% 13,966,075 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Equity-Income Fund 7.722666 8.209245 6.30% 6,514,414 1999
---------------------- -------------------- ------------------- ------------------------ ---------
6.918202 7.722666 11.63% 6,525,557 1998
---------------------- -------------------- ------------------- ------------------------ ---------
5.365074 6.918202 28.95% 5,904,892 1997
---------------------- -------------------- ------------------- ------------------------ ---------
4.790414 5.365074 12.00% 6,668,170 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Magellan(R) Fund 2.398748 2.951871 23.06% 12,975,760 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.809520 2.398748 32.56% 11,284,101 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.440886 1.809520 25.58% 5,726,530 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.327332 1.440886 8.56% 6,812,829 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity OTC Portfolio 2.554714 4.372532 71.16% 4,962,923 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.834455 2.554714 39.26% 2,759,385 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.682398 1.834455 9.04% 1,302,436 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.509369 1.682398 11.46% 886,668 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Puritan Fund 1.851282 1.889025 2.04% 3,553,477 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.600539 1.851282 15.67% 3,223,535 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.318667 1.600539 21.38% 1,283,945 1997
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
1.202749 1.318667 9.64% 1,390,626 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
57
<PAGE> 58
<TABLE>
<CAPTION>
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
INVESCO Dynamics Fund 1.172431 1.998173 70.43% 5,368,795 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.172431 17.24% 38,248 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
INVESCO Total Return Fund 1.023668 1.001721 -2.14% 515,739 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.023668 2.37% 9,067 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
The Investment Company of 2.784278 3.219387 15.63% 5,292,541 1999
America(R), Inc. ---------------------- -------------------- ------------------- ------------------------ ---------
2.282988 2.784278 21.96% 4,926,029 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.772876 2.282988 28.77% 2,356,594 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.588884 1.772876 11.58% 2,306,070 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
MAS Funds Fixed Income Portfolio 1.419597 1.399665 -1.40% 471,750 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.338520 1.419597 6.06% 261,209 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.230995 1.338520 8.73% 94,434 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.148928 1.230995 7.14% 116,525 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
MFS(R) Growth Opportunities Fund 11.577941 15.255834 31.77% 184,281 1999
- - Class A ---------------------- -------------------- ------------------- ------------------------ ---------
9.035263 11.577941 28.14% 190,471 1998
---------------------- -------------------- ------------------- ------------------------ ---------
7.387651 9.035263 22.30% 197,549 1997
---------------------- -------------------- ------------------- ------------------------ ---------
6.921506 7.387651 6.73% 330,931 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
MFS(R) High Income Fund - Class A 6.197734 6.578610 6.15% 274,998 1999
---------------------- -------------------- ------------------- ------------------------ ---------
6.183974 6.197734 0.22% 346,946 1998
---------------------- -------------------- ------------------- ------------------------ ---------
5.523753 6.183974 11.95% 233,869 1997
---------------------- -------------------- ------------------- ------------------------ ---------
5.086882 5.523753 8.59% 252,930 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Massachusetts Investors Growth 22.232493 30.603169 37.65% 130,090 1999
Stock Fund - Class A ---------------------- -------------------- ------------------- ------------------------ ---------
16.008079 22.232493 38.88% 125,998 1998
---------------------- -------------------- ------------------- ------------------------ ---------
10.891758 16.008079 46.97% 78,577 1997
---------------------- -------------------- ------------------- ------------------------ ---------
10.146647 10.891758 7.34% 136,164 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Morgan Stanley Institutional 1.106680 1.530130 38.26% 393,751 1999
Fund, Inc. - Equity Growth ---------------------- -------------------- ------------------- ------------------------ ---------
Portfolio - Class B 1.000000 1.106680 10.67% 11,853 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Nationwide(R) Fund - Class D 26.830004 26.555267 -1.02% 3,639,165 1999
---------------------- -------------------- ------------------- ------------------------ ---------
20.749126 26.830004 29.31% 3,247,615 1998
---------------------- -------------------- ------------------- ------------------------ ---------
14.979404 20.749126 38.52% 355,149 1997
---------------------- -------------------- ------------------- ------------------------ ---------
13.111665 14.979404 14.24% 289,479 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
58
<PAGE> 59
<TABLE>
<CAPTION>
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
Nationwide(R) Growth Fund - 4.744149 5.489411 15.71% 267,313 1999
Class D ---------------------- -------------------- ------------------- ------------------------ ---------
3.864536 4.744149 22.76% 280,426 1998
---------------------- -------------------- ------------------- ------------------------ ---------
3.086105 3.864536 25.22% 89,839 1997
---------------------- -------------------- ------------------- ------------------------ ---------
2.839940 3.086105 8.67% 133,215 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Nationwide(R) Money Market Fund - 3.139103 3.259610 3.84% 9,606,399 1999
Prime Shares* ---------------------- -------------------- ------------------- ------------------------ ---------
3.011419 3.139103 4.24% 6,949,105 1998
---------------------- -------------------- ------------------- ------------------------ ---------
2.887772 3.011419 4.28% 1,219,186 1997
---------------------- -------------------- ------------------- ------------------------ ---------
2.810841 2.887772 2.74% 1,754,115 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Nationwide S&P 500(R) Index Fund 1.093550 1.299566 18.84% 2,766,474 1999
- - Institutional Service Class ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.093550 9.36% 64,039 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Nationwide Separate Account 0.963521 1.376614 42.87% 1,760,003 1999
Trust - Nationwide Small Company ---------------------- -------------------- ------------------- ------------------------ ---------
Fund 0.961555 0.963521 -3.65% 1,340,017 1998
---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Neuberger Berman Guardian Fund, 1.736676 1.868582 7.60% 2,782,043 1999
Inc. ---------------------- -------------------- ------------------- ------------------------ ---------
1.710392 1.736676 1.54% 2,886,123 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.461877 1.710392 17.00% 1,596,621 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.325883 1.461877 10.26% 1,655,042 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Neuberger Berman Partners Trust 1.041831 1.113054 6.84% 82,850 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.041831 4.18% 6 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Oppenheimer Global Fund - Class A 1.106449 1.739511 57.22% 772,544 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.106449 10.64% 2,237 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Putnam Investors Fund - Class A 24.409212 31.514335 29.11% 574,562 1999
---------------------- -------------------- ------------------- ------------------------ ---------
18.155790 24.409212 34.44% 549,318 1998
---------------------- -------------------- ------------------- ------------------------ ---------
13.608156 18.155790 33.42% 233,708 1997
---------------------- -------------------- ------------------- ------------------------ ---------
12.145815 13.608156 12.02% 239,486 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Putnam Voyager Fund - Class A 4.734076 7.332728 54.89% 8,329,118 1999
---------------------- -------------------- ------------------- ------------------------ ---------
3.846728 4.734076 23.07% 7,755,689 1998
---------------------- -------------------- ------------------- ------------------------ ---------
3.077970 3.846728 24.98% 3,817,279 1997
---------------------- -------------------- ------------------- ------------------------ ---------
3.068905 3.077970 0.30% 4,941,310 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
59
<PAGE> 60
<TABLE>
<CAPTION>
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
SEI Index Funds - S&P 500 Index 1.916911 2.297509 19.85% 11,667,253 1999
Portfolio ---------------------- -------------------- ------------------- ------------------------ ---------
1.505589 1.916911 27.32% 8,439,537 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.140471 1.505589 32.01% 3,491,065 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.140471 14.05% 1,023,459 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Seligman Growth Fund, Inc. - 16.868765 21.800337 29.23% 95,801 1999
Class A ---------------------- -------------------- ------------------- ------------------------ ---------
12.573280 16.868765 34.16% 90,887 1998
---------------------- -------------------- ------------------- ------------------------ ---------
10.731082 12.573280 17.17% 61,083 1997
---------------------- -------------------- ------------------- ------------------------ ---------
9.776083 10.731082 9.77% 107,031 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Short-Term Investments Trust - 1.281729 1.335169 4.17% 840,048 1999
Treasury Portfolio - ---------------------- -------------------- ------------------- ------------------------ ---------
Institutional Class** 1.225108 1.281729 4.62% 320,548 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.170093 1.225108 4.70% 331,148 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.135919 1.170093 3.01% 394,386 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
T. Rowe Price International 1.384829 1.849161 33.53% 3,274,763 1999
Stock Fund(R) ---------------------- -------------------- ------------------- ------------------------ ---------
1.201960 1.384829 15.21% 3,133,125 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.179742 1.201960 1.88% 1,722,849 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.108683 1.179742 6.41% 2,213,126 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Templeton Foreign Fund - Class A 1.514689 1.677518 38.10% 13,904,517 1999
---------------------- -------------------- ------------------- ------------------------ ---------
1.287377 1.214689 -5.65% 13,917,762 1998
---------------------- -------------------- ------------------- ------------------------ ---------
1.216800 1.287377 5.80% 2,363,601 1997
---------------------- -------------------- ------------------- ------------------------ ---------
1.114642 1.216800 9.17% 2,314,772 1996
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
Warburg Pincus Emerging Growth 1.140152 1.603948 40.68% 216,315 1999
Fund - Common Class ---------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.140152 14.02% 5,986 1998
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
- --------------------------------- ---------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 4.51%.
** The 7-day yield on the Short-Term Investment Trust - Treasury Portfolio -
Institutional Class as of December 31, 1999 was 3.95%.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore no Condensed Financial
Information is available.
60
<PAGE> 61
Variable Account Annual Expense Fee of 0.70% of average net assets
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
American Century: Income & 1.097739 1.285813 17.13% 1,505,535 1999
Growth - Investor Class --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.097739 9.77% 36,320 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
American Century: International 1.084406 2.030338 87.23% 1,190,455 1999
Discovery - Investor Class --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.084406 8.44% 43,124 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
The Brown Capital Management - 1.000000 1.335232 33.52% 32,466 1999
Small Company Fund --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Dreyfus Appreciation Fund, Inc. 1.080275 1.179669 9.20% 891,896 1999
--------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.080275 8.03% 52,910 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Dreyfus Premier Midcap Stock 1.133431 1.245200 9.86% 66,860 1999
Fund - Class A --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.133431 13.34% 23,028 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
The Dreyfus Premier Third 4.584920 5.926178 29.25% 3,581,927 1999
Century Fund, Inc. - Class Z --------------------- -------------------- -------------------- ------------------------ ---------
3.547042 4.584920 29.26% 3,080,222 1998
--------------------- -------------------- -------------------- ------------------------ ---------
2.761054 3.547042 28.47% 724,635 1997
--------------------- -------------------- -------------------- ------------------------ ---------
2.450480 2.761054 12.67% 2,645,579 1996
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Federated Bond Fund - Class F 1.018821 0.988049 -3.02% 114,902 1999
--------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.018821 1.88% 1,037 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Fidelity Advisor Growth 1.089444 1.126033 3.36% 279,072 1999
Opportunities Fund - Class A --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.089444 8.94% 1,223 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Fidelity Advisor High Yield Fund 1.064934 1.145866 7.60% 218,567 1999
- - Class T --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.064934 6.49% 116 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
INVESCO Dynamics Fund 1.172584 2.000430 70.60% 2,683,126 1999
--------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.172584 17.26% 3,535 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
INVESCO Total Return Fund 1.023803 1.002855 -2.05% 139,419 1999
--------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.023803 2.38% 1,276 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
LifeDesigns Series - The 1.152311 1.421032 23.32% 1,421,322 1999
Aggressive Portfolio --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.152311 15.23% 819,842 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
LifeDesigns Series - The 1.110341 1.144210 3.05% 551,322 1999
Conservative Portfolio --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.110341 11.03% 382,730 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
</TABLE>
61
<PAGE> 62
<TABLE>
<CAPTION>
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.145999 1.307445 14.09% 2,040,355 1999
Moderate Portfolio --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.145999 14.60% 1,312,884 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
LifeDesigns Series - The 1.143522 1.355141 18.51% 1,865,891 1999
Moderately Aggressive Portfolio --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.143522 14.35% 1,127,941 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
LifeDesigns Series - The 1.131933 1.234169 9.03% 714,817 1999
Moderately Conservative Portfolio --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.131933 13.19% 455,658 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Morgan Stanley Institutional 1.106825 1.531860 38.40% 189,694 1999
Fund, Inc. - Equity Growth --------------------- -------------------- -------------------- ------------------------ ---------
Portfolio - Class B 1.000000 1.106825 10.68% 0 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Nationwide(R) Fund - Class D 26.901646 26.652820 -0.92% 1,451,429 1999
--------------------- -------------------- -------------------- ------------------------ ---------
20.783760 26.901646 29.44% 1,298,643 1998
--------------------- -------------------- -------------------- ------------------------ ---------
14.989429 20.783760 38.66% 218,220 1997
--------------------- -------------------- -------------------- ------------------------ ---------
13.111701 14.989429 14.32% 664,951 1996
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Nationwide(R) Money Market Fund - 3.147557 3.271683 3.94% 4,804,733 1999
Prime Shares* --------------------- -------------------- -------------------- ------------------------ ---------
3.016489 3.147557 4.35% 3,320,018 1998
--------------------- -------------------- -------------------- ------------------------ ---------
2.889720 3.016489 4.39% 1,244,833 1997
--------------------- -------------------- -------------------- ------------------------ ---------
2.810849 2.889720 2.81% 6,170,419 1996
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Nationwide S&P 500(R) Index Fund 1.093694 1.301036 18.96% 1,260,851 1999
- - Institutional Service Class --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.093694 9.37% 97,706 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Nationwide Separate Account 1.000000 1.006039 0.60% 35,556 1999
Trust - Nationwide Income Fund
- -------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Nationwide Separate Account 0.964638 1.379587 43.02% 885,218 1999
Trust - Nationwide Small Company --------------------- -------------------- -------------------- ------------------------ ---------
Fund 0.961707 0.964638 0.30% 589,435 1998
--------------------- -------------------- -------------------- ------------------------ ---------
1.000000 0.961707 -3.83% 0
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Neuberger Berman Partners Trust 1.041968 1.114314 6.94% 29,128 1999
--------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.041968 4.20% 46,617 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
Prestige Balanced Fund - 1.061002 1.151398 8.52% 289,882 1999
Institutional Service Class --------------------- -------------------- -------------------- ------------------------ ---------
1.000000 1.061002 6.10% 67,659 1998
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
- --------------------------------- --------------------- -------------------- -------------------- ------------------------ ---------
</TABLE>
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 4.61%.
62
<PAGE> 63
<TABLE>
<CAPTION>
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION
OF PERIOD PERIOD UNIT VALUE UNITS OUTSTANDING
AT THE END OF THE
PERIOD
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
Prestige International Fund - 1.092070 1.316225 20.53% 120,441 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.092070 9.21% 2,686 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Large Cap Growth Fund - 1.139564 1.525781 33.89% 592,875 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.139564 13.96% 39,909 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Large Cap Value Fund - 1.049429 0.993783 -5.30% 184,328 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.049429 4.94% 858 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Small Cap Fund - 1.090386 1.285935 17.93% 370,694 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.090386 9.04% 7,654 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Oppenheimer Global Fund - Class A 1.106594 1.741477 57.37% 526,744 1999
--------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.106594 10.66% 942 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Templeton Foreign Fund - 1.217936 1.683681 38.24% 7,963,049 1999
Class A --------------------- -------------------- ------------------- ------------------------ ---------
1.289527 1.217936 -5.55% 7,746,564 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.217615 1.289527 6.08% 1,164,252 1997
--------------------- -------------------- ------------------- ------------------------ ---------
1.114645 1.217615 9.06% 5,552,808 1996
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Warburg Pincus Emerging Growth 1.140301 1.605761 40.28% 92,452 1999
Fund - Common Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.140301 14.03% 882 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
63
<PAGE> 64
Variable Account Annual Expense Fee of 0.65% of average net assets
<TABLE>
<CAPTION>
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION
OF PERIOD PERIOD UNIT VALUE UNITS OUTSTANDING
AT THE END OF THE
PERIOD
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.975584 10.671975 33.81% 1,320,330 1999
Investor Class --------------------- -------------------- ------------------- ------------------------ ---------
5.869391 7.975584 35.88% 1,377,500 1998
--------------------- -------------------- ------------------- ------------------------ ---------
4.776599 5.869391 22.88% 2,322,606 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
American Century: Ultra - 2.333533 3.279718 40.55% 11,013,444 1999
Investor Class --------------------- -------------------- ------------------- ------------------------ ---------
1.745683 2.333533 33.67% 9,983,888 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.474619 1.745683 18.38% 19,969,711 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
The Bond Fund of America(SM), Inc. 2.448428 2.488240 1.63% 596,763 1999
--------------------- -------------------- ------------------- ------------------------ ---------
2.343312 2.448428 4.49% 722,007 1998
--------------------- -------------------- ------------------- ------------------------ ---------
2.185294 2.343312 7.23% 753,555 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
The Dreyfus Premier Third 4.588748 5.934089 29.32% 0 1999
Century Fund, Inc. --------------------- -------------------- ------------------- ------------------------ ---------
3.548231 4.588748 29.32% 0 1998
--------------------- -------------------- ------------------- ------------------------ ---------
2.913941 3.548231 21.77% 2,219,012 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Evergreen Income and Growth Fund 2.398586 2.773083 15.61% 103,645 1999
- - Class Y --------------------- -------------------- ------------------- ------------------------ ---------
2.433557 2.398586 -1.44% 125,423 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.949492 2.433557 24.83% 297,366 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Federated U.S. Government 1.404671 1.388259 -1.17% 605,238 1999
Securities Fund: 2-5 Years - --------------------- -------------------- ------------------- ------------------------ ---------
Institutional Shares 1.307818 1.404671 7.41% 558,667 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.238301 1.307818 5.61% 579,571 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Capital & Income Fund 4.866016 5.472662 12.47% 121,306 1999
--------------------- -------------------- ------------------- ------------------------ ---------
4.675440 4.866016 4.08% 142,236 1998
--------------------- -------------------- ------------------- ------------------------ ---------
4.139531 4.675440 21.95% 61,610 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Contrafund(R) 2.541159 3.157817 24.27% 12,905,080 1999
--------------------- -------------------- ------------------- ------------------------ ---------
1.944675 2.541159 30.67% 11,832,023 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.597582 1.944675 21.73% 19,667,377 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Equity-Income Fund 7.749762 8.250412 6.46% 4,029,550 1999
--------------------- -------------------- ------------------- ------------------------ ---------
6.932074 7.749762 11.80% 4,532,595 1998
--------------------- -------------------- ------------------- ------------------------ ---------
5.639098 6.932074 22.93% 8,086,997 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Magellan(R) Fund 2.407162 2.966668 23.24% 5,649,149 1999
--------------------- -------------------- ------------------- ------------------------ ---------
1.813149 2.407162 32.76% 5,041,523 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.494160 1.813149 21.35% 6,992,191 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
64
<PAGE> 65
<TABLE>
<CAPTION>
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION
OF PERIOD PERIOD UNIT VALUE UNITS OUTSTANDING
AT THE END OF THE
PERIOD
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
Fidelity OTC Portfolio 2.563678 4.394446 71.41% 2,949,108 1999
--------------------- -------------------- ------------------- ------------------------ ---------
1.838136 2.563678 39.47% 1,453,622 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.604136 1.838136 14.59% 2,776,451 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Fidelity Puritan Fund 1.857778 1.898498 2.19% 1,302,794 1999
--------------------- -------------------- ------------------- ------------------------ ---------
1.603749 1.857778 15.84% 1,260,820 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.388317 1.603749 15.52% 2,031,661 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
The Investment Company of 2.794045 3.235527 15.80% 2,061,483 1999
America(R), Inc. --------------------- -------------------- ------------------- ------------------------ ---------
2.287566 2.794045 22.14% 1,858,205 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.890348 2.287566 21.01% 2,872,363 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
MAS Funds Fixed Income Portfolio 1.424580 1.406687 -1.26% 302,278 1999
--------------------- -------------------- ------------------- ------------------------ ---------
1.341206 1.424580 6.22% 278,580 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.248067 1.341206 7.46% 277,396 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
MFS(R) Growth Opportunities Fund - 11.618570 15.332326 31.96% 176,097 1999
Class A --------------------- -------------------- ------------------- ------------------------ ---------
9.053391 11.618570 28.33% 180,839 1998
--------------------- -------------------- ------------------- ------------------------ ---------
7.676856 9.053391 17.90% 212,160 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
MFS(R) High Income Fund - Class A 6.219656 6.611862 6.31% 217,273 1999
--------------------- -------------------- ------------------- ------------------------ ---------
6.196477 6.219656 0.37% 253,885 1998
--------------------- -------------------- ------------------- ------------------------ ---------
5.615972 6.196477 10.34% 418,967 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Massachusetts Investors Growth 22.310477 30.756553 37.86% 65,612 1999
Stock Fund - Class A --------------------- -------------------- ------------------- ------------------------ ---------
16.040180 22.310477 39.09% 64,922 1998
--------------------- -------------------- ------------------- ------------------------ ---------
12.126811 16.040180 32.27% 117,830 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Nationwide(R) Fund - Class D 26.924106 26.688417 -0.88% 0 1999
--------------------- -------------------- ------------------- ------------------------ ---------
20.790728 26.924106 29.50% 0 1998
--------------------- -------------------- ------------------- ------------------------ ---------
16.412492 20.790728 26.68% 569,519 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Nationwide(R) Growth Fund - 4.760794 5.516934 15.88% 87,937 1999
Class D --------------------- -------------------- ------------------- ------------------------ ---------
3.872287 4.760794 22.95% 88,677 1998
--------------------- -------------------- ------------------- ------------------------ ---------
3.194767 3.872287 21.21% 269,417 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Nationwide(R) Money Market Fund - 3.150207 3.276085 4.00% 0 1999
Class D --------------------- -------------------- ------------------- ------------------------ ---------
3.017508 3.150207 4.40% 0 1998
--------------------- -------------------- ------------------- ------------------------ ---------
2.930108 3.017508 2.98% 3,269,252 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
65
<PAGE> 66
<TABLE>
<CAPTION>
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION
OF PERIOD PERIOD UNIT VALUE UNITS OUTSTANDING
AT THE END OF THE
PERIOD
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
Neuberger Berman Guardian Fund, 1.742771 1.877955 7.76% 1,247,986 1999
Inc. --------------------- -------------------- ------------------- ------------------------ ---------
1.713822 1.742771 1.69% 1,466,182 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.527855 1.713822 12.17% 4,309,283 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Putnam Investors Fund - Class A 24.494833 31.672308 29.30% 344,475 1999
--------------------- -------------------- ------------------- ------------------------ ---------
18.192202 24.494833 34.64% 297,345 1998
--------------------- -------------------- ------------------- ------------------------ ---------
14.574047 18.192202 24.83% 377,276 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Putnam Voyager Fund - Class A 4.750689 7.369487 55.12% 4,498,006 1999
--------------------- -------------------- ------------------- ------------------------ ---------
3.854445 4.750689 23.25% 4,199,459 1998
--------------------- -------------------- ------------------- ------------------------ ---------
3.048108 3.854445 26.45% 6,307,757 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
SEI Index Funds - S&P 500 Index 1.923629 2.309019 20.03% 6,630,666 1999
Portfolio --------------------- -------------------- ------------------- ------------------------ ---------
1.508603 1.923629 27.51% 5,122,867 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.234422 1.508603 22.21% 5,095,657 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Seligman Growth Fund, Inc. - 16.927940 21.909617 29.43% 64,846 1999
Class A --------------------- -------------------- ------------------- ------------------------ ---------
12.598501 16.927940 34.36% 52,182 1998
--------------------- -------------------- ------------------- ------------------------ ---------
11.006405 12.598501 14.47% 124,591 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Short-Term Investments Trust - 1.286263 1.341918 4.33% 886,018 1999
Treasury Portfolio - --------------------- -------------------- ------------------- ------------------------ ---------
Institutional Class* 1.227585 1.286263 4.78% 891,584 1998
--------------------- -------------------- ------------------- ------------------------ ---------
1.188793 1.227585 3.26% 238,580 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
T. Rowe Price International 1.38969 1.858432 33.73% 1,470,871 1999
Stock Fund(R) --------------------- -------------------- ------------------- ------------------------ ---------
1.204372 1.389689 15.39% 1,610,019 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
1.193159 1.204372 0.94% 4,374,310 1997
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
* The 7-day yield on the Short-Term Investment Trust - Treasury Portfolio -
Institutional Class as of December 31, 1999 was 4.10%.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
66
<PAGE> 67
Variable Account Annual Expense Fee of 0.60% of average net assets
<TABLE>
<CAPTION>
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION UNITS
OF PERIOD PERIOD UNIT VALUE AT END OF PERIOD
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.920734 10.603876 33.87% 78,744 1999
Investor Class -------------------- -------------------- -------------------- --------------------- ------------
6.767825 7.920734 17.04% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
American Century: Ultra - 2.317484 3.258789 40.26% 1,424,061 1999
Investor Class -------------------- -------------------- -------------------- --------------------- ------------
1.961685 2.317848 18.14% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
The Bond Fund of America(SM) 2.431483 2.472263 1.68% 28,883 1999
Inc. -------------------- -------------------- -------------------- --------------------- ------------
2.365187 2.431483 2.80% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
The Investment Company of 2.774834 3.214887 15.86% 214,097 1999
America(R), Inc. -------------------- -------------------- -------------------- --------------------- ------------
2.519405 2.774834 10.14% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Evergreen Income and Growth 2.382088 2.755385 15.67% 1,466 1999
Fund - Class Y -------------------- -------------------- -------------------- --------------------- ------------
2.262917 2.382088 5.27% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Federated U.S. Securities 1.395318 1.379708 -1.12% 69,872 1999
Fund: 2-5 Years - -------------------- -------------------- -------------------- --------------------- ------------
Institutional Shares 1.398557 1.395318 -0.23% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Fidelity Capital & Income 4.833614 5.438956 12.52% 10 1999
Fund -------------------- -------------------- -------------------- --------------------- ------------
4.467362 4.833614 8.20% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Fidelity Contrafund(R) 2.523680 3.137664 24.33% 2,269,071 1999
-------------------- -------------------- -------------------- --------------------- ------------
2.110428 2.523680 19.58% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Fidelity Equity-Income Fund 7.696470 8.197774 6.51% 292,888 1999
-------------------- -------------------- -------------------- --------------------- ------------
7.136396 7.696470 7.85% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Fidelity Magellan(R) Fund 2.390610 2.947739 23.30% 885,057 1999
-------------------- -------------------- -------------------- --------------------- ------------
2.025853 2.390610 18.01% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Fidelity OTC Portfolio 2.546041 4.366394 71.50% 267,530 1999
-------------------- -------------------- -------------------- --------------------- ------------
2.068458 2.546041 23.09% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Fidelity Puritan Fund 1.845002 1.886386 2.24% 220,190 1999
-------------------- -------------------- -------------------- --------------------- ------------
1.719035 1.845002 7.33% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
</TABLE>
67
<PAGE> 68
<TABLE>
<CAPTION>
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION UNITS
OF PERIOD PERIOD UNIT VALUE AT END OF PERIOD
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.150285 1.419952 23.44% 468,988 1999
Aggressive Portfolio -------------------- -------------------- -------------------- --------------------- ------------
1.000000 1.150285 12.61% 296,908 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
LifeDesigns Series - The 1.108390 1.143342 3.15% 158,183 1999
Conservative Portfolio -------------------- -------------------- -------------------- --------------------- ------------
1.000000 1.108390 3.28% 97,738 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
LifeDesigns Series - The 1.143985 1.306453 14.20% 501,161 1999
Moderate Portfolio -------------------- -------------------- -------------------- --------------------- ------------
1.000000 1.143985 8.54% 193,617 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
LifeDesigns Series - The 1.141512 1.354111 18.62% 542,336 1999
Moderately Aggressive -------------------- -------------------- -------------------- --------------------- ------------
Portfolio 1.000000 1.141512 10.06% 169,925 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
LifeDesigns Series - The 1.129944 1.233233 9.14% 341,251 1999
Moderately Conservative -------------------- -------------------- -------------------- --------------------- ------------
Portfolio 1.000000 1.129944 5.88% 135,133 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
MFS(R) Growth Opportunities 11.538640 15.234453 32.03% 10,104 1999
Fund - Class A -------------------- -------------------- -------------------- --------------------- ------------
9.732573 11.538640 18.56% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
MFS(R) High Income Fund 6.178240 6.571139 6.36% 13,293 1999
-------------------- -------------------- -------------------- --------------------- ------------
5.851804 6.178240 5.58% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Massachusetts Investors 22.157064 30.560318 37.93% 2,844 1999
Growth Stock Fund - Class A -------------------- -------------------- -------------------- --------------------- ------------
18.840534 22.157064 17.60% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
MAS Funds - Fixed Income 1.414780 1.397708 -1.21% 43,773 1999
Portfolio -------------------- -------------------- -------------------- --------------------- ------------
1.385468 1.414780 2.12% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Nationwide(R) Growth Fund - 4.728053 5.481731 15.94% 11,832 1999
Class D -------------------- -------------------- -------------------- --------------------- ------------
4.338826 4.728053 8.97% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Prestige Balanced Fund - 1.061142 1.152701 8.63% 120,626 1999
Institutional Service Class -------------------- -------------------- -------------------- --------------------- ------------
1.000000 1.061142 6.11% 38 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Prestige International Fund 1.092213 1.317714 20.65% 53,042 1999
- - Institutional Service Class -------------------- -------------------- -------------------- --------------------- ------------
1.000000 1.092213 9.22% 19,996 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
</TABLE>
68
<PAGE> 69
<TABLE>
<CAPTION>
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION ACCUMULATION UNITS
OF PERIOD PERIOD UNIT VALUE AT END OF PERIOD
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
<S> <C> <C> <C> <C> <C>
Prestige Large Cap Growth 1.139713 1.527506 34.03% 260,721 1999
Fund - Institutional Service -------------------- -------------------- -------------------- --------------------- ------------
Class 1.000000 1.139713 13.97% 22,783 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Prestige Large Cap Growth 1.049566 0.994908 -5.21% 72,468 1999
Fund - Institutional Service -------------------- -------------------- -------------------- --------------------- ------------
Class 1.000000 1.049566 4.96% 24,426 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Prestige Small Cap Fund - 1.090529 1.287390 18.05% 75,172 1999
Institutional Service Class -------------------- -------------------- -------------------- --------------------- ------------
1.000000 1.090529 9.05% 33,702 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Neuberger Berman Guardian 1.730781 1.865967 7.81% 84,823 1999
Fund, Inc. -------------------- -------------------- -------------------- --------------------- ------------
1.569836 1.730781 10.25% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Putnam Investors Fund - 24.326397 31.470234 29.37% 47,678 1999
Class A -------------------- -------------------- -------------------- --------------------- ------------
20.494260 24.326397 18.70% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Putnam Voyager Fund - Class A 4.718004 7.222438 55.20% 567,839 1999
-------------------- -------------------- -------------------- --------------------- ------------
3.966883 4.718004 18.93% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
SEI Index Fund - S&P 500 1.910418 2.294307 20.09% 842,011 1999
Index Portfolio -------------------- -------------------- -------------------- --------------------- ------------
1.705240 1.910418 12.03% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Seligman Growth Fund, Inc. - 16.811535 21.769825 29.49% 6,797 1999
Class A -------------------- -------------------- -------------------- --------------------- ------------
14.612994 16.811535 15.05% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
Short-Term Investments Trust 1.277858 1.333653 4.37% 38,201 1999
- - Treasury Portfolio - -------------------- -------------------- -------------------- --------------------- ------------
Institutional Class* 1.268735 1.277858 0.72% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
T. Rowe Price International 1.380129 1.846569 33.80% 175,403 1999
Stock Fund(R) -------------------- -------------------- -------------------- --------------------- ------------
1.275533 1.380129 8.20% 0 1998
- ------------------------------ -------------------- -------------------- -------------------- --------------------- ------------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
69
<PAGE> 70
Variable Account Annual Expense Fee of 0.55% of average net assets
<TABLE>
<CAPTION>
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING OF VALUE AT END OF PERIOD ACCUMULATION UNIT VALUE ACCUMULATION UNITS
PERIOD OUTSTANDING AT THE
END OF THE PERIOD
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
<S> <C> <C> <C> <C> <C>
American Century: Income & 1.097955 1.287995 17.31% 1,346,025 1999
Growth - Investor Class ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.097955 9.80% 39,351 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
American Century: 1.084619 2.033777 87.51% 989,006 1999
International Discovery - ---------------------- ----------------------- ------------------------ -------------------- --------
Investor Class 1.000000 1.084619 8.46% 7,164 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
The Brown Capital Management 1.000000 1.336268 33.63% 25,458 1999
- - Small Company Fund ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Dreyfus Appreciation Fund, 1.080487 1.181672 9.36% 490,711 1999
Inc. ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.080487 8.05% 20,457 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
The Dreyfus Premier Mid-Cap 1.133654 1.247314 10.03% 24,267 1999
Stock Fund - Class A ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.133654 13.37% 0 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
The Dreyfus Premier Third 4.557584 5.899679 29.45% 2,380,281 1999
Century Fund, Inc. - Class Z ---------------------- ----------------------- ------------------------ -------------------- --------
3.532278 4.557584 16.12% 2,140,647 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Federated Bond Fund - Class F 1.019021 0.989728 -2.87% 40,642 1999
---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.019021 1.90% 0 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Fidelity Advisor Growth 1.089659 1.127945 3.51% 445,084 1999
Opportunities Fund - Class A ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.089659 8.97% 5,256 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Fidelity Advisor High Yield 1.065207 1.147891 7.76% 222,740 1999
Fund - Class T ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.065207 6.52% 2,276 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
INVESCO Dynamics Fund 1.172815 2.003821 70.86% 2,158,406 1999
---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.172815 17.28% 5,449 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
INVESCO Total Return Fund 1.024005 1.004559 -1.90% 124,380 1999
---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.024005 2.40% 2,742 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Morgan Stanley Institutional 1.107043 1.534459 38.61% 120,451 1999
Fund, Inc. - Equity Growth ---------------------- ----------------------- ------------------------ -------------------- --------
Portfolio - Class B 1.000000 1.107043 10.70% 0 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Nationwide(R) Fund - 26.741341 26.533779 -0.78% 987,329 1999
Class D ---------------------- ----------------------- ------------------------ -------------------- --------
20.697282 26.741341 8.90% 904,019 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
</TABLE>
70
<PAGE> 71
<TABLE>
<CAPTION>
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING OF VALUE AT END OF PERIOD ACCUMULATION UNIT VALUE ACCUMULATION UNITS
PERIOD OUTSTANDING AT THE
END OF THE PERIOD
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
<S> <C> <C> <C> <C> <C>
Nationwide(R)Money Market 3.129626 3.257959 4.10% 4,615,246 1999
Fund - Prime Shares ---------------------- ----------------------- ------------------------ -------------------- --------
3.003821 3.129626 0.69% 2,277,564 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Nationwide S&P 500(R) Index 1.093909 1.303244 19.14% 990,021 1999
Fund - Institutional Service ---------------------- ----------------------- ------------------------ -------------------- --------
Class 1.000000 1.093909 9.39% 4,693 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Nationwide Separate Account 0.962506 1.378605 42.23% 599,934 1999
Trust - Nationwide Small ---------------------- ----------------------- ------------------------ -------------------- --------
Company Fund 0.961325 0.962506 13.36% 494,950 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Nationwide Separate Account 1.000000 1.006821 0.68% 27,725 1999
Trust - Nationwide Income
Fund
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Neuberger Berman Partners 1.042174 1.116206 7.10% 15,285 1999
Trust ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.042174 4.22% 1,093 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Oppenheimer Global Fund - 1.106811 1.744429 57.61% 335,264 1999
Class A ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.106811 10.68% 6,579 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Templeton Foreign Fund - 1.210671 1.676147 38.45% 5,358,056 1999
Class A ---------------------- ----------------------- ------------------------ -------------------- --------
1.284158 1.210671 1.23% 5,316,578 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
Warburg Pincus Emerging 1.140526 1.608485 41.03% 106,549 1999
Growth Fund - Common Class ---------------------- ----------------------- ------------------------ -------------------- --------
1.000000 1.140526 14.05% 8,854 1998
- ------------------------------ ---------------------- ----------------------- ------------------------ -------------------- --------
</TABLE>
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 4.71%.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
71
<PAGE> 72
Variable Account Annual Expense Fee of 0.50% of average net assets
<TABLE>
<CAPTION>
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING UNIT VALUE AT IN ACCUMULATION UNITS OUTSTANDING AT THE
OF PERIOD END OF PERIOD UNIT VALUE END OF THE PERIOD
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.922098 10.616300 34.01% 348,206 1999
Investor Class --------------------- ----------------- -------------------- ------------------------- --------
5.842997 7.922098 17.05% 359,828 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
American Century: Ultra - Investor 2.317883 3.262606 40.76% 3,817,930 1999
Class --------------------- ----------------- -------------------- ------------------------- --------
1.737833 2.317883 18.16% 3,364,116 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
The Bond Fund of America(SM), Inc. 2.431945 2.475221 1.78% 142,109 1999
--------------------- ----------------- -------------------- ------------------------- --------
2.332586 2.431945 2.82% 268,515 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Evergreen Income and Growth Fund - 2.382498 2.758615 15.79% 10,371 1999
Class Y --------------------- ----------------- -------------------- ------------------------- --------
2.262924 2.382498 5.28% 32,633 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Federated U.S. Government 1.395671 1.381446 -1.02% 268,509 1999
Securities Fund: 2-5 Years - --------------------- ----------------- -------------------- ------------------------- --------
Institutional Shares 1.301886 1.395671 -0.21% 281,752 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Fidelity Capital & Income Fund 4.834839 5.445808 12.64% 15,652 1999
--------------------- ----------------- -------------------- ------------------------- --------
4.654233 4.834839 8.22% 15,722 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Fidelity Contrafund(R) 2.524114 3.141341 24.45% 4,921,532 1999
--------------------- ----------------- -------------------- ------------------------- --------
1.935931 2.524114 19.60% 6,920,209 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Fidelity Equity-Income Fund 7.697797 8.207390 6.62% 1,097,064 1999
--------------------- ----------------- -------------------- ------------------------- --------
6.900916 7.697797 7.87% 2,032,139 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Fidelity Magellan(R) Fund 2.391021 2.951194 23.43% 1,981,615 1999
--------------------- ----------------- -------------------- ------------------------- --------
1.800499 2.391021 18.03% 2,481,152 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Fidelity OTC Portfolio 2.546479 4.371504 71.67% 551,902 1999
--------------------- ----------------- -------------------- ------------------------- --------
1.829868 2.546479 23.11% 554,256 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Fidelity Puritan(R) Fund 1.845320 1.888599 2.35% 434,568 199
--------------------- ----------------- -------------------- ------------------------- --------
1.596539 1.845320 7.35% 1,058,070 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
The Investment Company of 2.775312 3.218656 15.97% 772,247 1999
American(R), Inc. --------------------- ----------------- -------------------- ------------------------- --------
2.277283 2.775312 10.16% 1,244,473 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
MAS Funds Fixed Income Portfolio 1.415024 1.399348 -1.11% 35,380 1999
--------------------- ----------------- -------------------- ------------------------- --------
1.335173 1.415024 2.13% 100,650 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
MFS(R) Growth Opportunities Fund - 11.540626 15.252302 32.16% 17,247 1999
Class A --------------------- ----------------- -------------------- ------------------------- --------
9.012670 11.540626 18.58% 63,546 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
</TABLE>
72
<PAGE> 73
<TABLE>
<CAPTION>
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING UNIT VALUE AT IN ACCUMULATION UNITS OUTSTANDING AT THE
OF PERIOD END OF PERIOD UNIT VALUE END OF THE PERIOD
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
<S> <C> <C> <C> <C> <C>
MFS(R) High Income Fund - Class A 6.179806 6.579417 6.47% 32,140 1999
--------------------- ----------------- -------------------- ------------------------- --------
6.168371 6.179806 5.60% 106,230 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Massachusetts Investors Growth 22.160876 30.596117 38.06% 11,080 1999
Stock Fund - Class A --------------------- ----------------- -------------------- ------------------------- --------
15.968069 22.160876 17.62% 22,289 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Nationwide(R) Growth Fund - Class D 4.728868 5.488156 16.06% 22,141 1999
--------------------- ----------------- -------------------- ------------------------- --------
3.854877 4.728868 8.99% 31,217 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Neuberger Berman Guardian Fund, 1.731080 1.868155 7.92% 155,894 1999
Inc. --------------------- ----------------- -------------------- ------------------------- --------
1.706116 1.731080 10.27% 658,443 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Putnam Investors Fund - Class A 24.330583 31.507110 29.50% 63,483 1999
--------------------- ----------------- -------------------- ------------------------- --------
18.110411 24.330583 18.72% 60,549 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Putnam Voyager Fund - Class A 4.718816 7.331012 55.36% 1,195,483 1999
--------------------- ----------------- -------------------- ------------------------- --------
3.837109 4.718816 18.95% 1,141,130 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
SEI Index Funds - S&P 500 Index 1.910747 2.296996 20.21% 905,209 1999
Portfolio --------------------- ----------------- -------------------- ------------------------- --------
1.501834 1.910747 12.05% 2,027,825 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Seligman Growth Fund, Inc. - 16.814429 21.795334 29.62% 13,411 1999
Class A --------------------- ----------------- -------------------- ------------------------- --------
12.541848 16.814429 15.06% 24,055 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
Short-Term Investments Trust - 1.278181 1.335333 4.48% 97,670 1999
Treasury Portfolio - Institutional --------------------- ----------------- -------------------- ------------------------- --------
Class* 1.268839 1.278181 0.72% 86,239 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
T. Rowe Price International Stock 1.380367 1.848732 33.93% 558,351 1999
Fund(R) --------------------- ----------------- -------------------- ------------------------- --------
1.198954 1.380367 8.22% 1,224,755 1998
- ------------------------------------ --------------------- ----------------- -------------------- ------------------------- --------
</TABLE>
* The 7-day yield on the Short-Term Investment Trust - Treasury Portfolio -
Institutional Class as of December 31, 1999 was 4.25%.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
73
<PAGE> 74
Variable Account Annual Expense Fee of 0.45% of average net assets
<TABLE>
<CAPTION>
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE NUMBER OF ACCUMULATION YEAR
VALUE AT BEGINNING VALUE AT END OF IN ACCUMULATION UNITS OUTSTANDING AT
OF PERIOD PERIOD UNIT VALUE THE END OF THE PERIOD
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.150582 1.422449 23.63% 267,677 1999
Aggressive Portfolio --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.150582 12.64% 211,746 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
LifeDesigns Series - The 1.108677 1.145355 3.31% 475,616 1999
Conservative Portfolio --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.108677 3.30% 207,470 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
LifeDesigns Series - The 1.144281 1.308751 14.37% 192,070 1999
Moderate Portfolio --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.144281 8.56% 114,698 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
LifeDesigns Series - The 1.141807 1.356493 18.80% 268,877 1999
Moderately Aggressive Portfolio --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.141807 10.09% 154,400 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
LifeDesigns Series - The 1.130263 1.235402 9.30% 149,629 1999
Moderately Conservative Portfolio --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.130236 5.91% 55,915 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Balanced Fund - 1.061351 1.154658 8.79% 64,569 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.061351 6.14% 0 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige International Fund - 1.092427 1.319950 20.83% 31,972 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.092427 9.24% 0 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Large Cap Growth Fund - 1.139937 1.530097 34.23% 213,341 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.139937 13.99% 6,708 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Large Cap Value Fund - 1.049773 0.996598 -5.07% 54,869 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.049773 4.98% 7,855 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
Prestige Small Cap Fund - 1.090743 1.289575 18.23% 33,279 1999
Institutional Service Class --------------------- -------------------- ------------------- ------------------------ ---------
1.000000 1.090743 9.07% 17,596 1998
- ---------------------------------- --------------------- -------------------- ------------------- ------------------------ ---------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
74
<PAGE> 75
Variable Account Annual Expense Fee of 0.40% of average net assets
<TABLE>
<CAPTION>
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF ACCUMULATION UNIT ACCUMULATION UNITS
OF PERIOD PERIOD VALUE OUTSTANDING AT THE
END OF THE PERIOD
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
<S> <C> <C> <C> <C> <C>
American Century: Income & 1.098171 1.290181 17.48% 665,280 1999
Growth - Investor Class ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.098171 9.82% 636 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
American Century: Growth - 7.987376 10.714474 34.14% 2,202427 1999
Investor Class ---------------------- -------------------- ----------------------- ---------------------- ------------
6.822454 7.987376 17.07% 2,228,401 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
American Century: 1.084832 2.037221 87.79% 640,107 1999
International Discovery - ---------------------- -------------------- ----------------------- ---------------------- ------------
Investor Class 1.000000 1.084832 8.48% 456,421 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
American Century: Ultra - 2.336984 3.292778 40.90% 26,111,703 1999
Investor Class ---------------------- -------------------- ----------------------- ---------------------- ------------
1.977521 2.336984 18.18% 23,187,750 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
The Bond Fund of 2.452190 2.498335 1.88% 928,066 1999
America(SM), Inc. ---------------------- -------------------- ----------------------- ---------------------- ------------
2.384516 2.452190 2.84% 861,657 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
The Brown Capital 1.000000 1.337304 33.73% 15,085 1999
Management - Small Company
Fund
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Dreyfus Appreciation Fund, 1.080700 1.183678 9.53% 388,056 1999
Inc. ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.080700 8.07% 7,474 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
The Dreyfus Premier 1.133877 1.249431 10.19% 23,734 1999
Mid-Cap Stock Fund - Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.133877 13.39% 0 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
The Dreyfus Premier Third 4.558760 5.910051 29.64% 1,240,608 1999
Century Fund, Inc. - Class Z ---------------------- -------------------- ----------------------- ---------------------- ------------
3.924756 4.558760 16.15% 1,100,730 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Evergreen Income and 2.402138 2.784137 15.90% 209,219 1999
Growth Fund - Class Y ---------------------- -------------------- ----------------------- ---------------------- ------------
2.281191 2.402138 5.30% 242,926 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Federated Bond Fund - 1.019222 0.991409 -2.73% 6,385 1999
Class F ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.019222 1.92% 170,453 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Federated U.S. Government 1.406762 1.393823 -0.92% 1,337,680 1999
Securities Fund: 2-5 Years ---------------------- -------------------- ----------------------- ---------------------- ------------
- - Institutional Shares 1.409546 1.406762 -0.20% 1,119,202 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity Advisor High 1.065479 1.149917 7.92% 99,159 1999
Yield Fund - Class T ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.065479 6.55% 0 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity Advisor Growth 1.089873 1.129860 3.67% 169,301 1999
Opportunities Fund - Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.089873 8.99% 930 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity Capital & Income 4.873259 5.494599 12.75% 52,147 1999
Fund ---------------------- -------------------- ----------------------- ---------------------- ------------
4.502465 4.873259 8.24% 53,798 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity Contrafund(R) 2.544916 3.170395 24.58% 23,252,402 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
2.127466 2.544916 19.62% 21,126,009 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
</TABLE>
75
<PAGE> 76
<TABLE>
<CAPTION>
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF ACCUMULATION UNIT ACCUMULATION UNITS
OF PERIOD PERIOD VALUE OUTSTANDING AT THE
END OF THE PERIOD
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
<S> <C> <C> <C> <C> <C>
Fidelity Equity-Income Fund 7.761233 8.283304 6.73% 6,835,046 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
7.194005 7.761233 7.88% 7,558,249 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity Magellan(R) Fund 2.410721 2.978484 23.55% 8,920,260 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
2.042205 2.410721 18.05% 7,449,476 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity OTC Portfolio 2.567467 4.411934 71.84% 7,250,642 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
2.085159 2.567467 23.13% 3,023,192 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Fidelity Puritan(R) Fund 1.860527 1.906066 2.45% 2,155,469 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
1.732912 1.860527 7.36% 2,399,715 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
INVESCO Dynamics Fund 1.173045 2.007217 71.11% 1,566,514 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.173045 17.30% 278,971 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
INVESCO Total Return Fund 1.024207 1.006265 -1.75% 158,067 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.024207 2.42% 0 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
The Investment Company of 2.798178 3.248420 16.09% 3,687,311 1999
America(SM), Inc. ---------------------- -------------------- ----------------------- ---------------------- ------------
2.539739 2.798178 10.18% 3,259,397 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
MAS Funds Fixed Income 1.426689 1.412296 -1.01% 502,118 1999
Portfolio ---------------------- -------------------- ----------------------- ---------------------- ------------
1.396656 1.426689 2.15% 616,144 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
MFS(R) Growth Opportunities 11.635755 15.393394 32.29% 175,440 1999
Fund - Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
9.811163 11.635755 18.60% 203,691 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
MFS(R) High Income Fund - 6.228913 6.638365 6.57% 359,951 1999
Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
65.897786 6.228913 5.61% 451,743 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Massachusetts Investors 22.343460 30.879021 38.20% 117,408 1999
Growth Stock Fund - Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
18.992597 22.343460 17.64% 120,267 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Morgan Stanley 1.107260 1.537062 38.82% 89,552 1999
Institutional Fund, Inc. - ---------------------- -------------------- ----------------------- ---------------------- ------------
Equity Growth Portfolio - 1.000000 1.107260 10.73% 10,064 1998
Class B
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Nationwide(R)Fund - Class D 26.748259 26.580493 -0.63% 524,819 1999
---------------------- -------------------- ----------------------- ---------------------- ------------
24.556168 26.748259 8.93% 481,772 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Nationwide(R) Growth Fund - 4.767838 5.538916 16.17% 250,812 1999
Class D ---------------------- -------------------- ----------------------- ---------------------- ------------
4.373852 4.767838 9.01% 255,124 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
</TABLE>
76
<PAGE> 77
<TABLE>
<CAPTION>
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF ACCUMULATION UNIT ACCUMULATION UNITS
OF PERIOD PERIOD VALUE OUTSTANDING AT THE
END OF THE PERIOD
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
<S> <C> <C> <C> <C> <C>
Nationwide(R) Money Market 3.154895 3.289218 4.26% 3,933,354 1999
Fund - Prime Shares* ---------------------- -------------------- ----------------------- ---------------------- ------------
3.132336 3.154895 0.72% 2,708,726 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Nationwide S&P 500(R) Index 1.094125 1.305455 19.31% 337,529 1999
Fund - Institutional ---------------------- -------------------- ----------------------- ---------------------- ------------
Service Class 1.000000 1.094125 9.41% 19,071 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Nationwide Separate 0.966626 1.386578 43.45% 609,880 1999
Account Trust - Nationwide ---------------------- -------------------- ----------------------- ---------------------- ------------
Small Company Fund 0.852488 0.966626 13.39% 454,960 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Nationwide Separate 1.000000 1.007603 0.76% 342 1999
Account Trust - Nationwide
Income Fund
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Neuberger Berman Guardian 1.745353 1.885443 8.03% 3,518,487 1999
Fund, Inc. ---------------------- -------------------- ----------------------- ---------------------- ------------
1.582515 1.745353 10.29% 4,117,644 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Neuberger Berman Partners 1.042379 1.118102 7.26% 33,245 1999
Trust ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.042379 4.24% 0 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Oppenheimer Global Fund - 1.107029 1.747386 57.84% 121,171 1999
Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.107029 10.70% 0 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Putnam Investors Fund - 24.531046 31.798454 29.63% 772,650 1999
Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
20.659673 24.531046 18.74% 684,364 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Putnam Voyager Fund - 4.757715 7.398826 55.51% 7,728,408 1999
Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
3.998917 4.757715 18.98% 7,057,963 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
SEI Index Funds - S&P 500 1.926474 2.318217 20.33% 11,925,048 1999
Index Portfolio ---------------------- -------------------- ----------------------- ---------------------- ------------
1.718989 1.926474 12.07% 9,208,478 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Seligman Growth Fund, Inc. 16.952971 21.996878 29.75% 147,489 1999
- - Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
14.730941 16.952971 15.08% 145,547 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Short-Term Investments 1.288338 1.347297 4.58% 1,777,684 1999
Trust - Treasury Portfolio ---------------------- -------------------- ----------------------- ---------------------- ------------
- - Institutional Class** 1.278704 1.288338 0.75% 763,114 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
</TABLE>
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 4.92%.
** The 7-day yield on the Short-Term Investment Trust - Treasury Portfolio -
Institutional Class as of December 31, 1999 was 4.36%.
77
<PAGE> 78
<TABLE>
<CAPTION>
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF ACCUMULATION UNIT ACCUMULATION UNITS
OF PERIOD PERIOD VALUE OUTSTANDING AT THE
END OF THE PERIOD
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
<S> <C> <C> <C> <C> <C>
T. Rowe Price 1.391746 1.865834 34.06% 4,485,126 1999
International Stock Fund(R) ---------------------- -------------------- ----------------------- ---------------------- ------------
1.285834 1.391746 8.24% 4,818,444 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Templeton Foreign Fund - 1.210984 1.679093 38.66% 1999
Class A ---------------------- -------------------- ----------------------- ---------------------- ------------
1.195919 1.210984 1.26% 1,884,614 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
Warburg Pincus Emerging 1.140750 1.611214 41.24% 76,822 1999
Growth Fund - Common Class ---------------------- -------------------- ----------------------- ---------------------- ------------
1.000000 1.140750 14.08% 224 1998
- ---------------------------- ---------------------- -------------------- ----------------------- ---------------------- ------------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
78
<PAGE> 79
Variable Account Annual Expense Fee of 0.30% of average net assets
<TABLE>
<CAPTION>
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF ACCUMULATION UNIT ACCUMULATION UNITS
OF PERIOD PERIOD VALUE OUTSTANDING AT THE
END OF THE PERIOD
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.988751 10.727027 34.28% 0 1999
Investor Class --------------------- --------------------- ---------------------- --------------------- ----------
6.822472 7.988751 17.09% 207,682 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
American Century: Ultra - 2.337386 3.296635 41.04% 0 1999
Investor Class --------------------- --------------------- ---------------------- --------------------- ----------
1.977526 2.337386 18.20% 1,622,498 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Dreyfus Appreciation Fund, Inc. 1.080842 1.185017 9.64% 0 1999
--------------------- --------------------- ---------------------- --------------------- ----------
1.000000 1.080842 8.08% 116 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Dreyfus Premier Third Century 4.559545 5.916975 29.77% 0 1999
Fund, Inc. - Class Z --------------------- --------------------- ---------------------- --------------------- ----------
3.924766 4.559545 16.17% 132,409 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Fidelity Advisor Growth 1.090017 1.131139 3.77% 0 1999
Opportunities Fund - Class A --------------------- --------------------- ---------------------- --------------------- ----------
1.000000 1.090017 9.00% 6 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Morgan Stanley Institutional 1.107406 1.538799 38.96% 0 1999
Fund, Inc. - Equity Growth --------------------- --------------------- ---------------------- --------------------- ----------
Portfolio - Class B 1.000000 1.107406 10.74% 6 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Nationwide(R) Fund - Class D 26.752871 26.611682 0.53% 0 1999
--------------------- --------------------- ---------------------- --------------------- ----------
24.556235 26.752871 8.95% 163,349 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Nationwide(R) Growth Fund - 4.768660 5.545409 16.29% 0 1999
Class D --------------------- --------------------- ---------------------- --------------------- ----------
4.373864 4.768660 9.03% 72,274 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Nationwide(R) Money Market Fund 3.131607 3.268216 4.36% 0 1999
- - Prime Shares* --------------------- --------------------- ---------------------- --------------------- ----------
3.108685 3.131607 0.74% 289,513 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Nationwide S&P 500(R) Index Fund 1.094268 1.306932 19.43% 0 1999
- - Institutional Service Class --------------------- --------------------- ---------------------- --------------------- ----------
1.000000 1.094268 9.43% 81 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Nationwide Separate Account 0.962923 1.382645 43.59% 0 1999
Trust - Nationwide Small --------------------- --------------------- ---------------------- --------------------- ----------
Company Fund 0.849078 0.962923 13.41% 19,582 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Putnam Investors Fund - Class A 24.535266 31.835715 29.75% 0 1999
--------------------- --------------------- ---------------------- --------------------- ----------
20.659729 24.535266 18.76% 141,978 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
Putnam Voyager Fund - Class A 4.758533 7.407490 55.67% 0 1999
--------------------- --------------------- ---------------------- --------------------- ----------
3.998928 4.758533 19.00% 935,379 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
</TABLE>
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 5.02%.
79
<PAGE> 80
<TABLE>
<CAPTION>
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
UNDERLYING MUTUAL FUND ACCUMULATION UNIT ACCUMULATION UNIT PERCENTAGE CHANGE IN NUMBER OF YEAR
VALUE AT BEGINNING VALUE AT END OF ACCUMULATION UNIT ACCUMULATION UNITS
OF PERIOD PERIOD VALUE OUTSTANDING AT THE
END OF THE PERIOD
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
<S> <C> <C> <C> <C> <C>
Templeton Foreign Fund - 1.211193 1.681061 38.79% 0 1999
Class A --------------------- --------------------- ---------------------- --------------------- ----------
1.195922 1.211193 1.28% 572,528 1998
- -------------------------------- --------------------- --------------------- ---------------------- --------------------- ----------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
80
<PAGE> 81
Variable Account Annual Expense Fee of 0.25% of average net assets
<TABLE>
<CAPTION>
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
UNDERLYING MUTUAL FUND ACCUMULATION ACCUMULATION PERCENTAGE CHANGE NUMBER OF YEAR
UNIT VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE OUTSTANDING AT THE
PERIOD END OF THE PERIOD
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
<S> <C> <C> <C> <C> <C>
American Century: 1.085045 2.040671 88.07% 148,209 1999
International Discovery - ------------------ ----------------- -------------------- --------------------- ----------------
Investor Class 1.000000 1.085045 8.50% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
American Century: Income & 1.098387 1.292371 17.66% 240,890 1999
Growth - Investor Class ------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.098387 9.84% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
The Brown Capital Management 1.000000 1.338341 33.83% 1 1999
- - Small Company Fund
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Dreyfus Appreciation Fund, 1.080913 1.185687 9.69% 29,313 1999
Inc. ------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.080913 8.09% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
The Dreyfus Premier Third 4.559937 5.920440 29.84% 304,659 1999
Century Fund, Inc.- Class Z ------------------ ----------------- -------------------- --------------------- ----------------
3.924771 4.559937 16.18% 340,211 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Fidelity Advisor Growth 1.090088 1.131779 3.82% 6,25 1999
Opportunities Fund - Class A ------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.090088 9.01% 1,714 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Fidelity Advisor High Yield 1.065752 1.151943 8.09% 475 1999
Fund - Class T ------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.065752 6.58% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
INVESCO Dynamics Fund 1.173275 2.010619 71.37% 361,646 1999
------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.173275 17.33% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
INVESCO Total Return Fund 1.024409 1.007975 -1.60% 594 1999
------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.024409 2.44% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
LifeDesigns Series - The 1.150978 1.425785 23.88% 353,524 1999
Aggressive Portfolio ------------------ ----------------- -------------------- --------------------- ----------------
1.021462 1.150978 12.68% 144,398 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
LifeDesigns Series - The 1.109060 1.148044 3.52% 81,415 1999
Conservative Portfolio ------------------ ----------------- -------------------- --------------------- ----------------
1.073218 1.109060 3.34% 85,045 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
LifeDesigns Series - The 1.144675 1.311822 14.60% 144,588 1999
Moderate Portfolio ------------------ ----------------- -------------------- --------------------- ----------------
1.054023 1.144675 8.60% 17,475 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
</TABLE>
81
<PAGE> 82
<TABLE>
<S> <C> <C> <C> <C> <C>
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
LifeDesigns Series - The 1.142200 1.359675 19.04% 467,219 1999
Moderately Aggressive ------------------ ----------------- -------------------- --------------------- ----------------
Portfolio 1.037190 1.142200 10.12% 138,659 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
LifeDesigns Series - The 1.130626 1.238302 9.52% 50,892 1999
Moderately Conservative ------------------ ----------------- -------------------- --------------------- ----------------
Portfolio 1.067213 1.130626 5.94% 104,938 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Morgan Stanley Institutional 1.107478 1.539669 39.02% 31,522 1999
Fund, Inc. - Equity Growth ------------------ ----------------- -------------------- --------------------- ----------------
Portfolio - Class B 1.000000 1.107478 10.75% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Nationwide(R) Fund - Class D 26.755178 26.627289 -0.48% 94,899 1999
------------------ ----------------- -------------------- --------------------- ----------------
24.556268 26.755178 8.95% 104,524 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Nationwide(R) Money Market 3.132003 3.270268 4.41% 1,148,857 1999
Fund - Prime Shares* ------------------ ----------------- -------------------- --------------------- ----------------
3.108813 3.132003 0.75% 662,386 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Nationwide S&P 500(R) Index 1.094340 1.307671 19.49% 61,214 1999
Fund - Institutional Service ------------------ ----------------- -------------------- --------------------- ----------------
Class 1.000000 1.094340 9.43% 76,493 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Nationwide Separate Account 0.963006 1.383455 43.66% 19,107 1999
Trust - Nationwide Small ------------------ ----------------- -------------------- --------------------- ----------------
Company Fund 0.849079 0.963006 13.42% 84,982 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Prestige Balanced Fund - 1.061629 1.157273 9.01% 110,352 1999
Institutional Service Class ------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.061629 6.16% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Prestige International Fund 1.092713 1.322937 21.07% 38,590 1999
- - Institutional Service ------------------ ----------------- -------------------- --------------------- ----------------
Class 1.000000 1.092713 9.27% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Prestige Large Cap Growth 1.140236 1.533558 34.49% 84,791 1999
Fund - Institutional Service ------------------ ----------------- -------------------- --------------------- ----------------
Class 1.000000 1.140236 14.02% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Prestige Large Cap Value 1.050049 0.998856 -4.88% 90,414 1999
Fund - Institutional Service ------------------ ----------------- -------------------- --------------------- ----------------
Class 1.000000 1.050049 5.00% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Prestige Small Cap Fund - 1.091029 1.292494 18.47% 76,601 1999
Institutional Service Class ------------------ ----------------- -------------------- --------------------- ----------------
1.000000 1.091029 9.10% 3,784 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
Templeton Foreign Fund - 1.211297 1.682045 38.86% 644,504 1999
Class A ------------------ ----------------- -------------------- --------------------- ----------------
1.195923 1.211297 1.29% 599,440 1998
- ------------------------------ ------------------ ----------------- -------------------- --------------------- ----------------
</TABLE>
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 5.07%.
82
<PAGE> 83
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
83
<PAGE> 84
Variable Account Annual Expense Fee of 0.15% of average net assets
<TABLE>
<CAPTION>
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
UNDERLYING MUTUAL FUND ACCUMULATION ACCUMULATION PERCENTAGE CHANGE NUMBER OF YEAR
UNIT VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE OUTSTANDING AT THE
PERIOD END OF THE PERIOD
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
<S> <C> <C> <C> <C> <C>
American Century: Income & 1.098531 1.293832 17.78% 1,150,122 1999
Growth - Investor Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.098531 9.85% 51,660 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
American Century: 1.085187 2.042975 88.26% 2,129,791 1999
International Discover - ------------------ ----------------- -------------------- ----------------------- ----------------
Investor Class 1.000000 1.085187 8.52% 25,538 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
The Brown Capital Management 1.000000 1.339033 33.90% 40,366 1999
- - Small Company Fund
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Dreyfus Appreciation Fund, 1.081055 1.187029 9.80% 870,689 1999
Inc. ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.081055 8.11% 86,357 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Dreyfus Premier Midcap Stock 1.134248 1.252967 10.47% 85,523 1999
Fund - Class A ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.134248 13.42% 4,299 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
The Dreyfus Premier Third 4.602327 5.981450 29.97% 2,405,418 1999
Century Fund, Inc. - Class Z ------------------ ----------------- -------------------- ----------------------- ----------------
3.960586 4.602327 16.20% 2,316,305 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Federated Bond Fund - Class F 1.019557 0.994218 -2.49% 66,416 1999
------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.019557 1.96% 19,138 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Fidelity Advisor Growth 1.090231 1.133060 3.93% 166,910 1999
Opportunities Fund - ------------------ ----------------- -------------------- ----------------------- ----------------
Class A 1.000000 1.090231 9.02% 38,722 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Fidelity Advisor High Yield 1.065933 1.153294 8.20% 88,793 1999
Fund - Class T ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.065933 6.59% 55,862 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
INVESCO Dynamics Fund 1.173429 2.012890 71.54% 3,801,659 1999
------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.173429 17.34% 2,672 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
INVESCO Total Return Fund 1.024544 1.009116 -1.51% 231,417
------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.024544 2.45% 12,945 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.151176 1.427456 24.00% 0 1999
Aggressive Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.021464 1.151176 12.70% 1,783 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
</TABLE>
84
<PAGE> 85
<TABLE>
<CAPTION>
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
UNDERLYING MUTUAL FUND ACCUMULATION ACCUMULATION PERCENTAGE CHANGE NUMBER OF YEAR
UNIT VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE OUTSTANDING AT THE
PERIOD END OF THE PERIOD
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.142397 1.361269 19.16% 0 1999
Moderately Aggressive ------------------ ----------------- -------------------- ----------------------- ----------------
Portfolio 1.037193 1.142397 10.14% 3,674 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.130821 1.239754 9.63% 11,257 1999
Moderately Conservative ------------------ ----------------- -------------------- ----------------------- ----------------
Portfolio 1.067215 1.130821 5.69% 1,110 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Morgan Stanley Institutional 1.107624 1.541410 39.16% 218,285 1999
Fund, Inc. - Equity Growth ------------------ ----------------- -------------------- ----------------------- ----------------
Portfolio - Class B 1.000000 1.107624 10.76% 2,580 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Nationwide(R) Fund - Class D 27.003819 26.901637 -0.38% 942,318 1999
------------------ ----------------- -------------------- ----------------------- ----------------
24.780269 27.003819 8.97% 1,044,190 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Nationwide(R) Money Market 3.132794 3.274374 4.52% 4,761,747 1999
Fund-Prime Shares* ------------------ ----------------- -------------------- ----------------------- ----------------
3.109069 3.132794 0.76% 3,344,001 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Nationwide S&P 500(R) Index 1.094484 1.309150 19.61% 931,890 1999
Fund - Institutional Service ------------------ ----------------- -------------------- ----------------------- ----------------
Class 1.000000 1.094484 9.45% 25,400 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Nationwide Separate Account 0.963171 1.385075 43.80% 336,343 1999
Trust - Nationwide Small ------------------ ----------------- -------------------- ----------------------- ----------------
Company Fund 0.849082 0.963171 13.44% 313,865 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Nationwide Separate Account 1.000000 1.008908 0.89% 1,638 1999
Trust - Nationwide Income
Fund
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Neuberger Berman Partners 1.042722 1.121268 7.53% 11,932 1999
Trust ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.042722 4.27% 10 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Oppenheimer Global Fund - 1.107392 1.752325 58.24% 608,170 1999
Class A ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.107392 10.74% 1,884 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Templeton Foreign Fund - 1.107392 1.699394 39.00% 4,179,286 1999
Class A ------------------ ----------------- -------------------- ----------------------- ----------------
1.289527 1.1007392 1.30% 4,225,950 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Warburg Pincus Emerging 1.141124 1.615771 41.59% 114,151 1999
Growth Fund - Common Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.141124 14.11% 2,964 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
</TABLE>
85
<PAGE> 86
* The 7-day yield on the Nationwide(R) Money Market Fund - Prime Shares as of
December 31, 1999 was 5.17%.
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
86
<PAGE> 87
Variable Account Annual Expense Fee of 0.10% of average net assets
<TABLE>
<CAPTION>
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
UNDERLYING MUTUAL FUND ACCUMULATION ACCUMULATION PERCENTAGE CHANGE NUMBER OF YEAR
UNIT VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE OUTSTANDING AT THE
PERIOD END OF THE PERIOD
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.151275 1.428292 24.06% 4,175 1999
Aggressive Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.021466 1.151275 12.71% 2,524 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.109347 1.150064 3.67% 7,541 1999
Conservative Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.073223 1.109347 3.37% 4,359 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.144971 1.314130 14.77% 19,122 1999
Moderate Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.054027 1.144971 8.63% 9,964 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.142495 1.362067 19.22% 28,922 1999
Moderately Aggressive ------------------ ----------------- -------------------- ----------------------- ----------------
Portfolio 1.037195 1.142495 10.15% 19,416 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Balanced Fund - 1.061839 1.159238 9.17% 729 1999
Institutional Service Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.061839 6.18% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige International Fund 1.092928 1.325181 21.25% 18,596 1999
- - Institutional Service Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.092928 9.29% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Large Cap Growth 1.140460 1.539159 34.96% 2 1999
Fund - Institutional Service ------------------ ----------------- -------------------- ----------------------- ----------------
Class 1.000000 1.140460 14.05% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Large Cap Value 1.050256 1.000552 -4.73% 2 1999
Fund - Institutional Service ------------------ ----------------- -------------------- ----------------------- ----------------
Class 1.000000 1.050256 5.03% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Small Cap Fund - 1.091244 1.294687 18.64% 2,697 1999
Institutional Service Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.091244 9.12% 0 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
87
<PAGE> 88
Variable Account Annual Expense Fee of 0.00% of average net assets
<TABLE>
<CAPTION>
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
UNDERLYING MUTUAL FUND ACCUMULATION ACCUMULATION PERCENTAGE CHANGE NUMBER OF YEAR
UNIT VALUE AT UNIT VALUE AT IN ACCUMULATION ACCUMULATION UNITS
BEGINNING OF END OF PERIOD UNIT VALUE OUTSTANDING AT THE
PERIOD END OF THE PERIOD
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.157296 1.437196 24.19% 827,625 1999
Aggressive Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.157296 15.73% 691,326 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.115144 1.157231 3.77% 133,739 1999
Conservative Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.115144 11.51% 114,219 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.150956 1.322320 14.89% 505,429 1999
Moderate Portfolio ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.150956 15.10% 257,772 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.148468 1.370557 19.34% 514,292 1999
Moderately Aggressive ------------------ ----------------- -------------------- ----------------------- ----------------
Portfolio 1.000000 1.148468 14.85% 401,494 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
LifeDesigns Series - The 1.136829 1.248211 9.80% 170,427 1999
Moderately Conservative ------------------ ----------------- -------------------- ----------------------- ----------------
Portfolio 1.000000 1.136829 13.68% 112,759 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Balanced Fund - 1.061978 1.160549 9.28% 15,466 1999
Institutional Service Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.061978 6.20% 25 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige International Fund 1.093071 1.326680 21.37% 3,878 1999
- - Institutional Service Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.093071 9.31% 70 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Large Cap Growth 1.140610 1.537896 34.83% 461,957 1999
Fund - Institutional Service ------------------ ----------------- -------------------- ----------------------- ----------------
Class 1.000000 1.140610 14.06% 2,886 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Large Cap Value 1.050394 1.001685 -4.64% 92,218 1999
Fund - Institutional Service ------------------ ----------------- -------------------- ----------------------- ----------------
Class 1.000000 1.050394 5.04% 3,334 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
Prestige Small Cap Fund - 1.091387 1.296152 18.76% 80,612 1999
Institutional Service Class ------------------ ----------------- -------------------- ----------------------- ----------------
1.000000 1.091387 9.14% 6,727 1998
- ------------------------------ ------------------ ----------------- -------------------- ----------------------- ----------------
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Portfolio - Class A were effective May 1, 2000. Therefore, no Condensed
Financial Information is available.
88
