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NATIONWIDE(R)
DC VARIABLE
ACCOUNT
[LOGO]
Annual Report
to
Participants and Retired Participants
December 31, 1996
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
[LOGO]
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[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
[PICTURE]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to bring you the
1996 annual report of the Nationwide DC Variable Account.
The U.S. economy is enjoying the rewards of a stable political system and a
globally competitive business sector. These good times will last, although not
all years will show the stellar performance of the last two years. 1997 may be
the year in which normalcy will return.
The economic expansion has lasted six years already, and all resources are more
or less fully employed. The job market in particular is showing some strains,
and wages are rising a bit faster than before. Also, the competitive pressures
from abroad are increasing due to a sharp rise in the exchange value of our
currency. Business will be hard pressed under those conditions to continue
showing above-average profit increases. For the economy as a whole, inflation
has hit the low point in this business cycle and will slowly but surely be a
more important variable for monetary policy.
In the last few years, and especially in 1996, our economy expanded faster than
the natural rate of growth. This cannot continue without creating bottlenecks
that in turn induce price increases. Either the economy will slow under its own
weight or the Federal Reserve will have to step in. Some indicators point to a
softening of business activity. But whether this is enough will be a close call.
Again, the long-term trend is very positive for the U.S., its business activity,
and its financial markets. However, 1997 might turn out to have some more
surprises than anticipated right now.
/s/ Joseph J. Gasper
--------------------------------------
Joseph J. Gasper, President
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CONTENTS
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HOW TO READ THE ANNUAL REPORT ......................................... 5
Explanation on how to read and understand
the various financial reports
FUND PERFORMANCES ..................................................... 6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY .......... 8
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY ............................................ 11
NOTES TO FINANCIAL STATEMENTS ......................................... 12
SCHEDULES OF CHANGES IN UNIT VALUE .................................... 21
INDEPENDENT AUDITORS' REPORT .......................................... 31
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HOW TO READ THE ANNUAL REPORT
This Annual Report is sent to all customers who own a Nationwide annuity with
all or some of the funds in the Nationwide DC Variable Account (the Account).
The Account is a separate account trust which offers investment options in sixty
mutual funds from twenty-one mutual fund houses.
The Annual Report has three major financial sections.
Statement of Assets, Liabilities and Contract Owners' Equity
This statement, beginning on page 8, lists all the funds in the Account, the
number of shares owned, the amount paid for the shares (i.e., cost) and their
market value on December 31, 1996. The funds are generally presented in
alphabetical order. The market value of the assets change as the underlying
mutual fund shares change in value. As contract owners make exchanges between
the funds, the number of shares in each fund increases and decreases. When money
is deposited (withdrawn) by contract owners, shares of the mutual funds are
bought (sold) by the Account. The total market value of the funds is equal to
the Total investments.
Accounts receivable, if applicable, is an asset of the Account for money market
fund shares or reinvested dividend shares added to the contract owners'
accounts, but not yet added to Total investments. Total investments plus
Accounts receivable equals Total assets.
Accounts payable, if applicable, is a liability of the Account for money market
fund shares deducted from the contract owners' accounts, but not yet deducted
from Total investments.
Total assets minus Accounts payable equals Contract owners' equity. For a
summary of Contract owners' equity by fund series turn to page 16.
Statements of Operations and Changes in Contract Owners' Equity
These statements, found on page 11, show the activity in the Account for the
periods stated herein.
The Investment activity section shows the changes in unrealized gain (loss) of
the mutual funds in the Account, realized gain (loss) as shares of the funds are
bought (sold), mortality, expense and administration charges which are assessed
through the daily unit value calculations, and dividends and capital gains
earnings from the underlying mutual funds.
The Equity transactions section illustrates the receipt of purchase payments by
the Account as new contracts are sold, existing contract owners deposit
additional funds; and deductions from the Account when money is withdrawn,
contracts are canceled, annuity benefits are paid, and annual contract
maintenance charges and contingent deferred sales charges are assessed.
Net change in contract owners' equity equals Investment activity plus Equity
transactions.
The Contract owners' equity at the beginning of the period plus the Net change
in contract owners' equity equals the Contract owners' equity at the end of the
period. Contract owners' equity at the end of the calendar year will equal the
Contract owners' equity at the beginning of the next year.
Schedules of Changes in Unit Value
As a contract owner, you invest in the mutual funds offered in your annuity
contract. However, you do not buy shares of the mutual fund. Instead, the
Account buys shares of the fund and you in turn purchase units of the Account.
The number of units you own will not change unless you contribute to or withdraw
money from your account. The value of your contract can change based on the
value of the units you own. For example, if you purchase 100 units at $10 per
unit, the value of your contract is $1,000. If the value of the units increases
to $12 per unit, your contract value increases to $1,200. Therefore, to
determine the value of your account, multiply the number of units of each fund
you own by the fund's unit value.
The Schedules of Changes in Unit Value, beginning on page 21, show you the unit
value at the beginning of the period and at the end of the period. The
percentage increase (decrease) in unit value shows how it changed in value. This
is computed by subtracting the beginning unit value from the ending unit value
and dividing the difference by the beginning unit value. This can be used as a
measure of the performance of the funds over the three annual periods reported.
As you review the following pages of the Annual Report, the Notes to Financial
Statements, beginning on page 12, will also help explain and clarify the various
statements and schedules.
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FUND PERFORMANCES
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AVERAGE ANNUAL TOTAL RETURN: NON-STANDARDIZED +
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
- ------------------------------------------------------------------------------------------------------------------------------
FUNDS**
YEAR YEAR 3 YEARS 5 YEARS 10 YEARS*
1996 1995 1/1/94- 1/1/92- 1/1/87-
12/31/96 12/31/96 12/31/96
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<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
AIM Constellation Fund 15.72% 34.88% 16.32% 15.90% 18.34%
American Century: Twentieth Century Growth Fund 13.92% 19.21% 9.84% 5.24% 12.75%
American Century: Twentieth Century Ultra Fund 12.77% 36.38% 13.66% 12.19% 19.02%
Janus Twenty Fund 26.64% 34.94% 16.44% 10.33% 15.47%
Mass. Investors Growth Stock Fund 21.67% 27.13% 12.64% 11.31% 13.11%
Putnam Voyager Fund 11.73% 38.83% 15.56% 14.49% 16.42%
GROWTH FUNDS
AIM Weingarten Fund 17.12% 34.15% 15.94% 8.98% 14.21%
American Century: Twentieth Century Select Fund 18.09% 21.51% 9.34% 7.04% 11.10%
Davis New York Venture Fund 25.33% 39.24% 19.24% 16.91% 16.43%
Dreyfus Third Century Fund 23.15% 34.53% 14.95% 9.84% 12.45%
Fidelity Contrafund 20.78% 35.00% 16.89% 17.14% 19.14%
Fidelity Magellan(R)Fund 10.63% 35.53% 13.40% 13.80% 15.13%
Fidelity OTC Portfolio 22.56% 36.92% 17.38% 14.62% 15.89%
Growth Fund of America(R) 13.75% 28.57% 13.16% 11.82% 13.63%
Janus Fund 18.48% 28.21% 14.17% 11.59% 15.32%
MFS(R) Growth Opportunities Fund 20.71% 33.22% 15.15% 13.39% 11.79%
Nationwide(R) Growth Fund 15.59% 27.49% 13.99% 11.45% 11.51%
Neuberger & Berman Manhattan Fund 8.81% 29.77% 10.47% 11.38% 12.27%
Putnam Investors Fund 20.25% 36.25% 16.25% 14.41% 13.34%
Seligman Growth Fund 19.99% 27.26% 13.30% 11.07% 12.33%
Strong Common Stock 19.32% 31.16% 15.55% 18.02% 19.90%
GROWTH AND INCOME FUNDS
Delaware Group - Decatur Income Fund 19.36% 31.81% 15.67% 13.77% 11.30%
Evergreen Total Return Fund 11.82% 22.70% 8.34% 9.17% 7.66%
Fidelity Asset Manager(TM) 11.66% 17.04% 6.53% 10.52% 11.61%
Fidelity Equity-Income Fund 19.87% 30.57% 15.83% 16.23% 12.40%
Fidelity Growth and Income Portfolio 18.88% 34.11% 17.33% 16.14% 16.21%
Fidelity Puritan(R) Fund 14.06% 20.32% 11.44% 13.75% 11.46%
Income Fund of America(R) 14.13% 27.86% 12.12% 12.04% 10.89%
INVESCO Industrial Income Fund 15.61% 26.14% 11.56% 9.94% 13.70%
Nationwide(R) Fund 22.75% 28.76% 16.34% 11.18% 12.92%
Neuberger & Berman Guardian Fund 16.76% 30.87% 15.05% 15.23% 14.37%
INCOME FUNDS
Bond Fund of America(SM) 5.69% 17.13% 5.21% 7.75% 7.96%
Fidelity Capital & Income Fund 10.34% 15.63% 6.43% 13.60% 9.53%
MAS Fixed Income Portfolio 6.34% 17.91% 5.51% 7.34% 8.26%
MFS(R) High Income Fund 11.48% 16.04% 7.66% 11.34% 8.37%
Nationwide(R) Bond Fund 0.52% 22.98% 4.01% 5.71% 6.69%
INDEX FUND
SEI Index Fund (S & P 500 Index) 21.45% 36.05% 18.24% 13.85% 13.75%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(R) 14.89% 10.34% 7.61% 10.58% 10.13%
Templeton Foreign Fund 16.88% 10.11% 8.55% 11.42% 13.22%
Templeton Global Smaller Companies Fund 20.93% 16.54% 10.03% 12.97% 10.73%
GOVERNMENT BOND FUNDS
Federated GNMA Trust 3.97% 14.96% 4.90% 5.15% 7.24%
Federated U.S. Government Securities Fund 2.59% 12.49% 3.89% 4.66% 6.18%
MONEY MARKET FUND
Dreyfus Cash Management 4.41% 5.00% 4.17% 3.50% 5.08%
Nationwide(R) Money Market Fund 3.98% 4.51% 3.75% 3.01% 4.55%
S&P 500 *** 21.79% 36.27% 18.54% 14.12% 14.19%
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<FN>
* The percentage in the 10-year column for the Fidelity Asset Manager
reflects performance since its inception in December 1988 and the figure
shown for Strong Common Stock reflects performance since its inception in
December, 1989.
** Funds are neither insured nor guaranteed by the U.S. Government. For the
Money Market Funds, there can be no assurance that this fund will be able
to maintain a stable net asset value of $1 per share.
*** The S&P 500 is a stock market index which assumes investment in the 500
largest available stocks. This unmanaged index is normally used as a
comparison or benchmark against equity mutual funds.
+ SEC and NASD regulations require that any reporting of product performance
be accompanied by standardized data and the disclosures are on the
following page. Please review this information and a product prospectus
before investing.
Note: The above illustration represents past performance based on a $1,000
hypothetical Investment and reflects the deduction of an actuarial risk fee
which is equivalent to 0.95% on an annualized basis. The results shown represent
past performance and should not be considered a representation of performance or
investor experience of the funds in the future. Investment returns and principal
are not guaranteed under these variable options. The unit values at the time of
redemption may be worth more or less than their original cost. For complete
information about the options available to you through your Deferred
Compensation Program, including charges and expenses, consult your
prospectus(es) which are available from your local representative. Please read
the prospectus(es) carefully before investing or sending money.
Sources: National Financial Services
Computer Directions Advisors, Inc.
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AVERAGE ANNUAL TOTAL RETURN: STANDARDIZED
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
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FUNDS**
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YEAR YEAR 3 YEARS 5 YEARS 10 YEARS*
1996 1995 1/1/94- 1/1/92- 1/1/87-
12/31/96 12/31/96 12/31/96
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AGGRESSIVE GROWTH FUNDS
AIM Constellation Fund 9.22% 28.38% 13.66% 14.10% 17.34%
American Century: Twentieth Century Growth Fund 7.42% 12.71% 6.93% 2.81% 11.64%
American Century: Twentieth Century Ultra Fund 6.27% 29.88% 10.88% 10.18% 18.07%
Janus Twenty Fund 20.14% 28.44% 13.68% 8.11% 14.33%
Mass. Investors Growth Stock Fund 15.17% 20.63% 9.77% 9.25% 11.91%
Putnam Voyager Fund 5.23% 32.33% 12.88% 12.62% 15.38%
GROWTH FUNDS
AIM Weingarten Fund 10.62% 27.65% 13.24% 6.71% 13.12%
American Century: Twentieth Century Select Fund 11.59% 15.01% 6.35% 4.72% 9.87%
Davis New York Venture Fund 18.83% 32.74% 16.60% 15.09% 15.32%
Dreyfus Third Century Fund 16.65% 28.03% 12.15% 7.63% 11.23%
Fidelity Contrafund 14.28% 28.50% 14.20% 15.38% 18.15%
Fidelity Magellan(R) Fund 4.13% 29.03% 10.64% 11.92% 14.04%
Fidelity OTC Portfolio 16.06% 30.42% 14.70% 12.71% 14.80%
Growth Fund of America(R) 7.25% 22.07% 10.39% 9.83% 12.51%
Janus Fund 11.98% 21.71% 11.40% 9.55% 14.27%
MFS(R) Growth Opportunities Fund 14.21% 26.72% 12.39% 11.43% 10.49%
Nationwide(R) Growth Fund 9.09% 20.99% 11.25% 9.42% 10.24%
Neuberger & Berman Manhattan Fund 2.31% 23.27% 7.60% 9.43% 11.08%
Putnam Investors Fund 13.75% 29.75% 13.54% 12.50% 12.12%
Seligman Growth Fund 13.49% 20.76% 10.48% 9.02% 11.10%
Strong Common Stock 12.82% 24.66% 12.83% 16.34% 19.70%
GROWTH AND INCOME FUNDS
Delaware Group - Decatur Income Fund 12.86% 25.31% 12.95% 11.84% 9.98%
Evergreen Total Return Fund 5.32% 16.20% 5.36% 7.08% 6.09%
Fidelity Asset Manager(TM) 5.16% 10.54% 3.47% 8.56% 11.37%
Fidelity Equity-Income Fund 13.37% 24.07% 13.13% 14.45% 11.09%
Fidelity Growth and Income Portfolio 12.38% 27.61% 14.68% 14.33% 15.15%
Fidelity Puritan(R) Fund 7.56% 13.82% 8.61% 11.92% 10.15%
Income Fund of America(R) 7.63% 21.36% 9.29% 10.09% 9.57%
INVESCO Industrial Income Fund 9.11% 19.64% 8.69% 7.81% 12.58%
Nationwide(R) Fund 16.25% 22.26% 13.64% 9.06% 11.73%
Neuberger & Berman Guardian Fund 10.26% 24.37% 12.33% 13.43% 13.22%
INCOME FUND
Bond Fund of America(SM) -0.81% 10.63% 2.13% 5.64% 6.51%
Fidelity Capital & Income Fund 3.84% 9.13% 3.38% 11.85% 8.07%
MAS Fixed Income Portfolio -0.16% 11.41% 2.43% 5.19% 6.84%
MFS(R) High Income Fund 4.98% 9.54% 4.67% 9.42% 6.81%
Nationwide(R) Bond Fund -5.93% 16.48% 0.88% 3.47% 5.16%
INDEX FUND
SEI Index Fund (S & P 500 Index) 14.95% 29.55% 15.60% 11.88% 12.57%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(R) 8.39% 3.84% 4.62% 8.56% 8.84%
Templeton Foreign Fund 10.38% 3.61% 5.59% 9.44% 12.17%
Templeton Global Smaller Companies Fund 14.43% 10.04% 7.08% 11.06% 9.33%
GOVERNMENT BOND FUNDS
Federated GNMA Trust -2.53% 8.46% 1.82% 2.85% 5.78%
Federated U.S. Government Securities Fund -3.91% 5.99% 0.78% 2.35% 4.64%
MONEY MARKET FUND
Dreyfus Cash Management -2.09% -1.50% 1.09% 1.10% 3.48%
Nationwide(R) Money Market Fund -2.52% -1.99% 0.66% 0.58% 2.91%
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<FN>
* The percentage in the 10-year column for the Fidelity Asset Manager
reflects performance since its inception in December 1988 and the figure
shown for Strong Common Stock reflects performance since its inception in
December, 1989.
** Funds are neither insured nor guaranteed by the U.S. Government. For the
Money Market Funds, there can be no assurance that this fund will be able
to maintain a stable net asset value of $1 per share.
Note: The above illustration represents past fund performance based on a $1,000
hypothetical Investment. The performance figures reflect the deduction of a
0.95% annual asset fee, $15 annual administrative charge, and a 5.0% Contingent
Deferred Sales Charge. These charges/fees may not be applicable to your Deferred
Compensation Program. Investment principal and investment returns are not
guaranteed under these variable options. Unit values at the time of redemption
may be worth more or less than their original cost. The results shown above
should not be considered a representation of performance or investor experience
of the funds in the future. For complete information about the options available
to you through your Deferred Compensation Program, including charges and
expenses, consult your prospectus(es) which are available from your local
representative. Please read the prospectus(es) carefully before investing or
sending money.
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NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1996
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Assets:
Investments at market value:
AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class (AIMCon)
602,399 shares (cost $14,259,665).................................................................. $ 15,559,969
AIM Equity Funds, Inc. - AIM Weingarten Fund - Institutional Class (AIMWein)
113,072 shares (cost $2,048,638)................................................................... 2,116,709
American Century: Twentieth Century Growth Fund (ACTCGro)
5,203,739 shares (cost $109,215,769)............................................................... 113,857,815
American Century: Twentieth Century Select Fund (ACTCSel)
40,443 shares (cost $1,416,625).................................................................... 1,558,259
American Century: Twentieth Century Ultra Fund (ACTCUltra)
8,735,760 shares (cost $212,141,067)............................................................... 245,387,499
The Bond Fund of America(SM), Inc. (BdFdAm)
840,412 shares (cost $11,259,293).................................................................. 11,555,669
Davis New York Venture Fund, Inc. - Class A (DNYVenFd)
126,565 shares (cost $2,030,048)................................................................... 2,214,889
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class (DeDecInc)
12,108 shares (cost $211,000)...................................................................... 223,266
Dreyfus Cash Management - Class A (DryCsMgt)
1,189,156 shares (cost $1,189,156)................................................................. 1,189,156
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
2,261,055 shares (cost $19,101,874)................................................................ 19,942,501
The Evergreen Total Return Fund - Class Y (EvTotRet)
202,570 shares (cost $3,888,943)................................................................... 4,320,811
The Institutional Shares of Federated GNMA Trust (FedGNMA)
63,790 shares (cost $696,766)...................................................................... 709,346
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
192,750 shares (cost $2,029,312)................................................................... 2,021,946
Fidelity Asset Manager(TM) (FidAsMgr)
305,054 shares (cost $4,735,169)................................................................... 5,024,243
Fidelity Capital & Income Fund (FidCapInc)
146,082 shares (cost $1,259,941)................................................................... 1,367,329
Fidelity Contrafund (FidContr)
3,834,444 shares (cost $138,785,424)............................................................... 161,621,829
Fidelity Equity-Income Fund (FidEqInc)
4,518,074 shares (cost $152,764,386)............................................................... 193,509,106
Fidelity Growth & Income Portfolio (FidGrInc)
343,592 shares (cost $9,236,919)................................................................... 10,558,574
Fidelity Magellan(R) Fund (FidMgln)
2,195,300 shares (cost $166,998,126)............................................................... 177,050,966
The Growth Fund of America(R), Inc. (GroFdAm)
590,243 shares (cost $9,339,439)................................................................... 9,780,334
The Income Fund of America(R), Inc. (IncFdAm)
921,410 shares (cost $13,855,652).................................................................. 15,221,687
INVESCO Industrial Income Fund, Inc. (InvIndlnc)
1,212,737 shares (cost $14,944,799)................................................................ 16,323,441
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Janus Fund (JanFund)
1,527,527 shares (cost $36,424,043) ......................................................... 37,348,026
Janus Twenty Fund (Jan20Fd)
9,094 shares (cost $285,317) ................................................................ 249,801
MAS Funds - Fixed Income Portfolio (MASFIP)
107,500 shares (cost $1,264,144) ............................................................ 1,263,128
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
1,752,439 shares (cost $19,624,736) ......................................................... 22,729,133
MFS(R) High Income Fund - Class A (MFSHiInc)
701,822 shares (cost $3,640,479) ............................................................ 3,747,729
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
502,595 shares (cost $5,442,276) ............................................................ 5,015,898
Nationwide(R) Bond Fund (NWBdFd)
17,202 shares (cost $162,082) ............................................................... 159,806
Nationwide(R) Fund (NWFund)
1,712,707 shares (cost $29,278,925) ......................................................... 34,596,672
Nationwide(R) Growth Fund (NWGroFd)
566,434 shares (cost $6,675,510) ............................................................ 7,533,572
Nationwide(R) Money Market Fund (NWMyMkt)
62,453,931 shares (cost $62,453,931) ........................................................ 62,453,931
Neuberger & Berman Guardian Fund (NBGuard)
5,824 shares (cost $146,180) ................................................................ 149,262
Neuberger & Berman Manhattan Fund (NBManhFd)
25,249 shares (cost $318,519) ............................................................... 294,903
Putnam Investors Fund - Class A (PutInvFd)
3,665,690 shares (cost $30,690,329) ......................................................... 33,761,008
Putnam Voyager Fund - Class A (PutVoyFd)
5,493,809 shares (cost $84,606,172) ......................................................... 88,560,196
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
165,867 shares (cost $3,663,081) ............................................................ 3,912,800
Seligman Growth Fund, Inc. - Class A (SelGroFd)
453,054 shares (cost $2,394,393) ............................................................ 2,650,366
Strong Common Stock Fund, Inc. (StComStk)
206,719 shares (cost $4,139,930) ............................................................ 4,183,996
T. Rowe Price International Funds, Inc. - International Stock Fund(R) (TRIntStk)
2,267,608 shares (cost $28,970,485) ......................................................... 31,292,985
Templeton Foreign Fund - Class I (TemForFd)
6,442,499 shares (cost $61,076,841) ......................................................... 66,744,287
Templeton Global Smaller Companies Fund, Inc. - Class I (TemGlSmCo)
113,746 shares (cost $943,791) .............................................................. 950,919
Dreyfus Stock Index Fund (DryStkIx)
1,344 shares (cost $24,480) ................................................................. 27,264
Fidelity VIP - Asset Manager Portfolio (FidVIPAM)
1,369 shares (cost $20,568) ................................................................. 23,169
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
4,373 shares (cost $81,552) ................................................................. 91,971
Fidelity VIP - Growth Portfolio (FidVIPGr)
2,601 shares (cost $70,852) ................................................................. 80,983
Fidelity VIP - High Income Portfolio (FidVIPHI)
1,918 shares (cost $22,802) 24,017
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Fidelity VIP - Overseas Portfolio (FidVIPOv)
5,431 shares (cost $91,135) ................................................................. 102,317
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,143 shares (cost $12,490) ................................................................. 12,621
Nationwide SAT - Money Market Fund (NSATMyMkt)
36,420 shares (cost $36,420) ................................................................ 36,420
Nationwide SAT - Total Return Fund (NSATTotRe)
3,503 shares (cost $40,874) ................................................................. 46,487
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
655 shares (cost $16,541) ................................................................... 16,880
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
481 shares (cost $6,698) .................................................................... 6,755
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
896 shares (cost $10,788) ................................................................... 14,773
TCI Portfolios - TCI Balanced (TCIBal)
545 shares (cost $3,825) .................................................................... 4,107
TCI Portfolios - TCI Growth (TCIGro)
8,263 shares (cost $86,210) ................................................................. 84,618
---------------
Total investments ......................................................................... 1,419,286,144
Accounts receivable ............................................................................... 10,213,748
---------------
Total assets .............................................................................. 1,429,499,892
Accounts payable ..................................................................................... 3,710,610
---------------
Contract owners' equity (note 4) ..................................................................... $ 1,425,789,282
===============
Sources: National Financial Services
Computer Directions Advisors, Inc.
</TABLE>
See accompanying notes to financial statements.
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<PAGE> 11
<TABLE>
<CAPTION>
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
1996 1995 1994
------ ------ ------
<S> <C> <C> <C>
Investment activity:
Reinvested capital gains and dividends ........................ $ 111,787,963 86,971,463 61,302,838
Mortality and expense charges (note 2) ........................ (7,324,869) (5,230,867) (4,074,902)
Administration charge-Tier I (note 2) ......................... (3,675,030) (4,707,781) (3,667,411)
Administration charge-Tier II (note 2) ........................ (1,000,535) -- --
Administration charge-Tier III (note 2) ....................... (279,498) -- --
Administration charge-Tier IV (note 2) ........................ (128,485) -- --
Administration charge-Tier V (note 2) ......................... (361,137) -- --
--------------- ------------- -----------
Net investment activity .................................... 99,018,409 77,032,815 53,560,525
--------------- ------------- -----------
Proceeds from mutual fund shares sold ......................... 426,930,903 184,309,039 264,448,390
Cost of mutual fund shares sold ............................... (365,983,789) (162,128,137) (230,194,049)
--------------- ------------- -----------
Realized gain (loss) on investments ........................ 60,947,114 22,180,902 34,254,341
Change in unrealized gain (loss) on investments ............... 33,461,531 146,852,392 (110,099,526)
--------------- ------------- -----------
Net gain (loss) on investments ............................. 94,408,645 169,033,294 (75,845,185)
--------------- ------------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ..................... 193,427,054 246,066,109 (22,284,660)
--------------- ------------- -----------
Equity transactions:
Purchase payments received from contract owners ............... 391,105,511 313,176,439 283,645,521
Redemptions ................................................... (384,960,385) (174,184,814) (244,646,099)
Annual contract maintenance charge (note 2) ................... (109,548) (121,391) (132,768)
Contingent deferred sales charges (note 2) .................... (4,539) (160,870) (4,451)
Adjustments to maintain reserves .............................. (130,864) 137,602 (174,764)
--------------- ------------- -----------
Net equity transactions ................................. 5,900,175 138,846,966 38,687,439
--------------- ------------- -----------
Net change in contract owners' equity ............................ 199,327,229 384,913,075 16,402,779
Contract owners' equity beginning of period ...................... 1,226,462,053 841,548,978 825,146,199
--------------- ------------- -----------
Contract owners' equity end of period ............................ $ 1,425,789,282 1,226,462,053 841,548,978
=============== ============= ===========
</TABLE>
11
See accompanying notes to financial statements.
<PAGE> 12
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996, 1995 AND 1994
(1) Summary of Significant Accounting Policies
(a) Organization and Nature of Operations
Nationwide DC Variable Account (the Account) was established by resolution
of the Board of Directors of Nationwide Life Insurance Company (the Company) on
July 10, 1974. The Account has been registered as a unit investment trust under
the Investment Company Act of 1940.
The Company offers group flexible fund retirement contracts through the
Account. The primary distribution for the contracts is through an affiliated
sales organization; however, other distributors may be utilized.
(b) The Contracts
Participants in group flexible fund contracts may be invested in any of
the following funds:
AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class
(AIMCon)
AIM Equity Funds, Inc. - AIM Weingarten Fund - Institutional Class
(AIMWein)
American Century: Twentieth Century Growth Fund (ACTCGro)
(formerly Twentieth Century Investors, Inc. - Growth Investors)
American Century: Twentieth Century Select Fund (ACTCSel)
(formerly Twentieth Century Investors, Inc. - Select Investors)
American Century: Twentieth Century Ultra Fund (ACTCUltra)
(formerly Twentieth Century Investors, Inc. - Ultra Investors)
The Bond Fund of America(SM), Inc. (BdFdAm) (only available for
certain contracts issued beginning January 1, 1994)
Davis New York Venture Fund, Inc. - Class A (DNYVenFd) (formerly New
York Venture Fund, Inc.)
Delaware Group Decatur Fund, Inc. - Decatur Income Fund Institutional
Class (DeDecInc) (not available for contracts issued on or after
August 1, 1993)
Dreyfus Cash Management - Class A (DryCsMgt)
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
The Evergreen Total Return Fund - Class Y (EvTotRet)
The Institutional Shares of Federated GNMA Trust (FedGNMA)
Federated U.S. Government Securities Fund: 2-5 Years - Institutional
Shares (FedUSGvt) (formerly Federated Intermediate Government Trust)
Fidelity Asset Manager(TM) (FidAsMgr)
Fidelity Capital & Income Fund (FidCapInc) (not available for contracts
issued on or after January 1, 1987)
Fidelity Contrafund (FidContr)
Fidelity Equity-Income Fund (FidEqInc)
Fidelity Growth & Income Portfolio (FidGrInc)
Fidelity Magellan(R) Fund (FidMgln)
Fidelity OTC Portfolio (FidOTC)
Fidelity Puritan(R) Fund (FidPurtn)
The Growth Fund of America(R), Inc. (GroFdAm) (only available for
certain contracts issued beginning January 1, 1994)
The Income Fund of America(R), Inc. (IncFdAm) (only available for
certain contracts issued beginning January 1, 1994)
INVESCO Industrial Income Fund, Inc. (InvIndInc)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd) MAS Funds - Fixed Income Portfolio (MASFIP)
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
MFS(R) High
Income Fund - Class A (MFSHiInc)
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
12
<PAGE> 13
Nationwide(R) Bond Fund (NWBdFd) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Fund (NWFund) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Growth Fund (NWGroFd) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Money Market Fund (NWMyMkt) (managed for a fee by an
affiliated investment advisor)
Neuberger & Berman Guardian Fund (NBGuard)
Neuberger & Berman Manhattan Fund (NBManhFd)
Putnam Investors Fund - Class A (PutInvFd)
Putnam Voyager Fund - Class A (PutVoyFd)
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
Seligman Growth Fund, Inc. - Class A (SelGroFd)
Strong Common Stock Fund, Inc. (StComStk)
T. Rowe Price International Funds, Inc. - International Stock Fund(R)
(TRIntStk)
Templeton Foreign Fund - Class I (TemForFd)
Templeton Global Smaller Companies Fund, Inc. - Class I (TemGlSmCo)
(formerly Templeton Smaller Companies Growth Fund, Inc.)
The following funds are available for investment only by Plans established
under Internal Revenue Code (IRC) Section 403(b).
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolios of the Fidelity Variable Insurance Products Fund I & II
(Fidelity VIP)
Fidelity VIP - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor):
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman AMT) Neuberger & Berman AMT - Growth Portfolio
(NBAMTGro) Neuberger & Berman AMT - Limited Maturity Bond Portfolio
(NBAMTLMat) Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Portfolios of the TCI Portfolios, Inc. (TCI Portfolios)
TCI Portfolios - TCI Balanced (TCIBal)
TCI Portfolios - TCI Growth (TCIGro)
All of the above funds were being utilized as of December 31, 1996, except
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro), Fidelity
OTCPortfolio (FidOTC), Fidelity Puritan(R) Fund (FidPurtn), and Nationwide SAT -
Capital Appreciation Fund (NSATCapAp).
The contract owners' equity is affected by the investment results of each
fund, equity transactions by contract owners and certain expenses (see note 2).
The accompanying financial statements include only contract owners' purchase
payments pertaining to the variable portions of their contracts and exclude any
purchase payments for fixed dollar benefits, the latter being included in the
accounts of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing net
asset value per share at December 31, 1996. The cost of investments sold is
determined on the specific identification basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed) and
dividend income is recorded on the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with, operations of
the Company, which is taxed as a life insurance company under the IRC. The
assets in this account are held pursuant to contracts with entities which are
exempt from Federal income tax. Because of this exemption, no taxes need be
provided for investment
13
<PAGE> 14
income or realized and unrealized capital gains. Annuity payouts and withdrawal
payments are taxable as wages when received by the participants.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities, if any, at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Actual results could differ from those estimates.
(f) Reclassifications
Certain 1995 and 1994 amounts have been reclassified to conform with the
current year presentation.
(2) Expenses
Net purchase payments received for contracts issued before July 1, 1980,
represent contributions by the contract owners less a sales charge by the
Company of not more than 5%, to cover sales expenses. The Company does not
deduct a sales charge from purchase payments for contracts issued after July 1,
1980. However, if any part of the contract value representing participant
accounts that have been established under the contracts and held in the Account
for less than sixteen (16) years is surrendered, the Company will, with certain
exceptions, assess a contingent deferred sales charge. This charge will be equal
to not more than 5% of the lesser of all purchase payments received on behalf of
the surrendering participant or contract owner prior to the date of the request
for surrender, or the amount surrendered. Sales charges or contingent deferred
sales charges of less than 5% reflect actual variations in expense (usually
reduced agents' commissions). No sales charges are deducted on redemptions used
to purchase units in the fixed investment options of the Company. Sales charges
may be reduced or eliminated upon negotiated conversion of the contracts to
other investment programs offered by the Company or its affiliates.
The following contract charges are deducted by the Company on contracts
issued before July 1, 1980: (a) an annual contract maintenance charge of $8
assessed by surrendering units; (b) a charge for mortality and expense risk
assessed through the daily unit value calculation equal to an annual rate of
0.95%; and (c) a charge on complete redemption, equal to the lesser of $8 or 2%
of the value of the account, except when such redemption occurs within 31 days
of the anniversary date of the contract.
For contracts issued beginning July 1, 1980 through April 30, 1991,
contract charges include: (a) an annual contract maintenance charge of $12 or
$15, based upon administrative services provided, assessed by surrendering
units; and (b) a charge for mortality and expense risk assessed through the
daily unit value calculation equal to an annual rate of 0.95%.
For contracts issued on or after May 1, 1991, contract charges include a
mortality risk charge, an expense risk charge and an administration charge
assessed through the daily unit value calculation equal to an annual rate of
0.35%, 0.15% and 0.45% respectively. Beginning November 1, 1996, the
administration charge was based upon the aggregate balance of assets held under
the contract by each contract owner as follows:
<TABLE>
<CAPTION>
Expense Administration
Tier Assets (Millions) Charge
<S> <C> <C> <C>
I Up to $10 .45%
II Over $10 to $25 .40%
III Over $25 to $50 .30%
IV Over $50 to $150 .20%
V Over $150 .15%
</TABLE>
Contract owners may negotiate an exchange privilege with the Company. The
exchange privilege provides for transfers of units among the various investment
options for each participant's account. The number of transfers allowed, and any
administrative charges associated therewith, are subject to negotiation between
the contract owner and the Company.
14
<PAGE> 15
(3) Schedule I
Schedule I presents the components of the change in the unit values, which
are the basis for contract owners' equity. This schedule is presented in the
following format:
o Beginning unit value - Jan. 1
o Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to
capital gains and dividend distributions from the underlying
mutual funds.)
o Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the
underlying mutual funds.)
o Contract charges
(This amount reflects the decrease in the unit value due to the
mortality risk charge, expense risk charge and administration
charge discussed in note 2.)
o Ending unit value - Dec. 31
o Percentage increase (decrease) in unit value.
15
<PAGE> 16
<TABLE>
<CAPTION>
(4) Components of Contract Owners' Equity
The following is a summary of contract owners' equity at December 31, 1996.
<S> <C> <C> <C>
Tier I Units Unit Value
- ------ -------- --------------
AIM Equity Funds, Inc. - AIM Constellation Fund -
Institutional Class ................................................ 6,309,167 $ 2.055366 $ 12,967,647
AIM Equity Funds, Inc. - AIM Weingarten Fund -
Institutional Class ................................................ 1,300,655 1.627524 2,116,847
American Century: Twentieth Century Growth Fund ....................... 12,224,812 4.562802 55,779,397
American Century: Twentieth Century Select Fund ....................... 41,014 1.572461 64,493
American Century: Twentieth Century Ultra Fund ........................ 70,399,683 2.069865 145,717,840
The Bond Fund of AmericaSM, Inc. ...................................... 3,518,054 2.155739 7,584,006
Davis New York Venture Fund, Inc. - Class A ........................... 1,180,098 1.686019 1,989,668
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class ............................. 78,578 2.280210 179,174
Dreyfus Cash Management - Class A ..................................... 618,162 1.159356 716,670
The Dreyfus Third Century Fund, Inc. .................................. 3,824,949 2.756438 10,543,235
The Evergreen Total Return Fund - Class Y ............................. 1,146,375 1.947502 2,232,568
The Institutional Shares of Federated GNMA Trust ...................... 548,815 1.292380 709,278
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares ................................................ 1,214,422 1.144380 1,389,760
Fidelity Asset Manager(TM) ............................................ 2,611,685 1.252704 3,271,668
Fidelity Capital & Income Fund ........................................ 125,230 4.096488 513,003
Fidelity Contrafund ................................................... 56,288,590 2.059778 115,941,999
Fidelity Equity-Income Fund ........................................... 18,493,235 5.359692 99,118,044
Fidelity Growth & Income Portfolio .................................... 4,201,944 2.001775 8,411,346
Fidelity Magellan(R) Fund ............................................. 56,756,036 1.913110 108,580,540
The Growth Fund of America(R), Inc. ................................... 2,478,693 2.691979 6,672,590
The Income Fund of America(R), Inc. ................................... 5,291,391 2.160929 11,434,320
INVESCO Industrial Income Fund, Inc ................................... 7,428,110 1.678513 12,468,179
Janus Fund ............................................................ 15,851,766 1.603290 25,414,978
Janus Twenty Fund ..................................................... 149,425 1.671698 249,793
MAS Funds - Fixed Income Portfolio .................................... 718,247 1.229760 883,271
MFS(R) Growth Opportunities Fund - Class A ............................ 843,158 7.380232 6,222,702
MFS(R) High Income Fund - Class A ..................................... 164,395 5.518160 907,158
Massachusetts Investors Growth Stock Fund - Class A ................... 164,786 10.880822 1,793,007
Nationwide(R) Bond Fund ............................................... 26,395 2.001472 52,829
Nationwide(R) Fund .................................................... 1,316,219 14.964379 19,696,400
Nationwide(R) Growth Fund ............................................. 1,156,065 3.083008 3,564,158
Nationwide(R) Money Market Fund ....................................... 7,935,176 2.884848 22,891,777
Neuberger & Berman Manhattan Fund ..................................... 119,922 2.458922 294,879
Putnam Investors Fund - Class A ....................................... 713,005 13.594501 9,692,947
Putnam Voyager Fund - Class A ......................................... 18,151,250 3.074879 55,812,897
SEI Index Funds - S&P 500 Index Portfolio ............................. 524,069 2.962497 1,552,553
Seligman Growth Fund, Inc - Class A ................................... 105,249 10.720312 1,128,302
Strong Common Stock Fund, Inc. ........................................ 2,665,795 1.569484 4,183,923
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........................................ 8,220,403 1.812062 14,895,880
Templeton Foreign Fund - Class I ...................................... 27,327,650 1.774294 48,487,285
Templeton Global Smaller Companies Fund, Inc. - Class I ............... 524,340 1.802963 945,366
Dreyfus Stock Index Fund .............................................. 16,988 1.604580 27,259
Fidelity VIP - Asset Manager Portfolio ................................ 18,427 1.257222 23,167
Fidelity VIP - Equity-Income Portfolio ................................ 62,324 1.475687 91,971
Fidelity VIP - Growth Portfolio ....................................... 52,165 1.552351 80,978
Fidelity VIP - High Income Portfolio .................................. 17,934 1.338939 24,013
Fidelity VIP - Overseas Portfolio ..................................... 88,581 1.154842 102,297
Nationwide SAT - Government Bond Fund ................................. 7,820 1.613565 12,618
Nationwide SAT - Money Market Fund .................................... 28,915 1.259556 36,420
Nationwide SAT - Total Return Fund .................................... 19,743 2.354356 46,482
Neuberger & Berman AMT - Growth Portfolio ............................. 9,399 1.795607 16,877
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio .................................... 5,977 1.130160 6,755
Neuberger & Berman AMT - Partners Portfolio ........................... 8,811 1.676351 14,770
TCI Portfolios - TCI Balanced ......................................... 3,120 1.316124 4,106
TCI Portfolios - TCI Growth ........................................... 51,629 1.638699 84,604
Sub-Total Tier I ................................................... ========== ======== ------------
$827,644,694
------------
</TABLE>
16
<PAGE> 17
<TABLE>
<CAPTION>
Contract owners' equity - continued
Tier II Units Unit Value
- ------- ----------- ------------
<S> <C> <C> <C>
American Century: Twentieth Century Growth Fund ....................... 4,398,109 $ 4.563176 $ 20,069,345
American Century: Twentieth Century Ultra Fund ........................ 18,056,950 2.070035 37,378,518
The Bond Fund of America(SM), Inc. .................................... 1,040,496 2.155938 2,243,245
Davis New York Venture Fund, Inc. - Class A ........................... 133,664 1.686157 225,378
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class ............................ 13,782 2.280397 31,428
Dreyfus Cash Management - Class A ..................................... 377,565 1.159453 437,769
The Dreyfus Third Century Fund, Inc. .................................. 967,536 2.756663 2,667,171
The Evergreen Total Return Fund - Class Y ............................. 470,751 1.947661 916,863
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares ................................................ 342,763 1.144477 392,284
Fidelity Asset Manager(TM) ............................................ 671,795 1.252806 841,629
Fidelity Capital & Income Fund ........................................ 77,649 4.096833 318,115
Fidelity Contrafund ................................................... 13,231,488 2.059947 27,256,164
Fidelity Equity-Income Fund ........................................... 6,443,316 5.360130 34,537,011
Fidelity Magellan(R) Fund ............................................. 11,002,403 1.913267 21,050,535
The Growth Fund of America(R), Inc. ................................... 553,730 2.692199 1,490,751
The Income Fund of America(R), Inc. ................................... 1,137,681 2.161106 2,458,649
INVESCO Industrial Income Fund, Inc ................................... 1,639,958 1.678650 2,752,915
Janus Fund ............................................................ 4,109,624 1.603421 6,589,457
MAS Funds - Fixed Income Portfolio .................................... 193,871 1.229861 238,434
MFS(R) Growth Opportunities Fund - Class A ............................ 361,634 7.380837 2,669,162
MFS(R) High Income Fund - Class A ..................................... 41,389 5.518624 228,410
Massachusetts Investors Growth Stock Fund - Class A ................... 13,452 10.881713 146,381
Nationwide(R) Fund .................................................... 336,341 14.965604 5,033,546
Nationwide(R) Growth Fund ............................................. 386,199 3.083261 1,190,752
Nationwide(R) Money Market Fund ....................................... 6,749,071 2.885091 19,471,684
Putnam Investors Fund - Class A ....................................... 153,709 13.595614 2,089,768
Putnam Voyager Fund - Class A ......................................... 5,117,342 3.075131 15,736,497
SEI Index Funds - S&P 500 Index Portfolio ............................. 71,085 2.962740 210,606
Seligman Growth Fund, Inc - Class A ................................... 17,582 10.721190 188,500
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........................................ 1,718,457 1.812210 3,114,205
Templeton Foreign Fund - Class I ...................................... 6,594,135 1.774439 11,700,890
Sub-Total Tier II .................................................. ========== ======== ------------
$223,676,062
------------
</TABLE>
17
<PAGE> 18
<TABLE>
<CAPTION>
Contract owners' equity - continued
Tier III Units Unit Value
- ----------- --------- ------------
<S> <C> <C> <C>
American Century: Twentieth Century Growth Fund ........................ 1,586,526 $ 4.563925 $ 7,240,786
American Century: Twentieth Century Ultra Fund ......................... 9,866,856 2.070374 20,428,082
The Bond Fund of America(SM), Inc. ..................................... 281,942 2.156336 607,962
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class ............................. 5,492 2.280770 12,526
The Dreyfus Third Century Fund, Inc. ................................... 603,861 2.757115 1,664,914
The Evergreen Total Return Fund - Class Y .............................. 78,598 1.947980 153,107
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares ................................................ 104,682 1.144669 119,826
Fidelity Asset Manager(TM) ............................................. 269,853 1.253012 338,129
Fidelity Capital & Income Fund ......................................... 23,351 4.097522 95,681
Fidelity Contrafund .................................................... 7,230,068 2.060284 14,895,993
Fidelity Equity-Income Fund ............................................ 2,555,440 5.361008 13,699,734
Fidelity Magellan(R) Fund .............................................. 5,622,628 1.913580 10,759,348
The Growth Fund of America(R), Inc. .................................... 441,833 2.692640 1,189,697
The Income Fund of America(R), Inc. .................................... 367,278 2.161460 793,857
INVESCO Industrial Income Fund, Inc .................................... 309,576 1.678925 519,755
Janus Fund ............................................................. 1,634,700 1.603684 2,621,542
MAS Funds - Fixed Income Portfolio ..................................... 87,227 1.230062 107,295
MFS(R) Growth Opportunities Fund - Class A ............................. 181,406 7.382046 1,339,147
MFS(R) High Income Fund - Class A ...................................... 6,455 5.519552 35,629
Massachusetts Investors Growth Stock Fund - Class A .................... 11,971 10.883496 130,286
Nationwide(R) Fund ..................................................... 195,684 14.968055 2,929,009
Nationwide(R) Growth Fund .............................................. 96,156 3.083766 296,523
Nationwide(R) Money Market Fund ........................................ 901,408 2.885576 2,601,081
Putnam Investors Fund - Class A ........................................ 38,905 13.597842 529,024
Putnam Voyager Fund - Class A .......................................... 2,559,117 3.075635 7,870,910
Seligman Growth Fund, Inc - Class A. ................................... 2,396 10.722947 25,692
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ......................................... 931,357 1.812507 1,688,091
Templeton Foreign Fund - Class I ....................................... 2,061,896 1.774730 3,659,309
Sub-Total Tier III ========= ======== ------------
$ 96,352,935
------------
</TABLE>
18
<PAGE> 19
Contract owners' equity - continued
<TABLE>
<CAPTION>
Tier IV Units Unit Value
- ------- -------- ----------
<S> <C> <C> <C>
American Century: Twentieth Century Growth Fund ......................... 735,112 $ 4.564673 $ 3,355,546
American Century: Twentieth Century Select Fund ......................... 949,510 1.573105 1,493,679
American Century: Twentieth Century Ultra Fund .......................... 3,956,021 2.070713 8,191,784
The Bond Fund of America(SM), Inc. ...................................... 46,844 2.156734 101,030
The Dreyfus Third Century Fund, Inc. .................................... 244,163 2.757567 673,296
The Evergreen Total Return Fund - Class Y ............................... 27,416 1.948299 53,415
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares .................................................. 104,637 1.144861 119,795
Fidelity Asset Manager(TM) .............................................. 456,745 1.253217 572,401
Fidelity Capital & Income Fund .......................................... 22,770 4.098210 93,316
Fidelity Contrafund ..................................................... 3,683,606 2.060621 7,590,516
Fidelity Equity-Income Fund ............................................. 1,989,159 5.361886 10,665,644
Fidelity Magellan(R) Fund ............................................... 3,295,811 1.913894 6,307,833
The Growth Fund of America(R), Inc. ..................................... 158,421 2.693081 426,641
The Income Fund of America(R), Inc. ..................................... 246,997 2.161814 533,962
INVESCO Industrial Income Fund, Inc ..................................... 346,238 1.679200 581,403
Janus Fund .............................................................. 1,696,374 1.603947 2,720,894
MAS Funds - Fixed Income Portfolio ...................................... 27,573 1.230264 33,922
MFS(R) Growth Opportunities Fund - Class A .............................. 7,294 7.383255 53,853
MFS(R) High Income Fund - Class A ....................................... 130 5.520479 718
Massachusetts Investors Growth Stock Fund - Class A ..................... 280 10.885279 3,048
Nationwide(R) Fund ...................................................... 54,398 14.970505 814,366
Nationwide(R) Growth Fund ............................................... 286,704 3.084270 884,273
Nationwide(R) Money Market Fund ......................................... 1,141,686 2.886060 3,294,974
Putnam Investors Fund - Class A ......................................... 4,735 13.600069 64,396
Putnam Voyager Fund - Class A ........................................... 1,979,411 3.076140 6,088,945
Seligman Growth Fund, Inc - Class A ..................................... 684 10.724703 7,336
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) .......................................... 881,585 1.812803 1,598,140
Templeton Foreign Fund - Class I ........................................ 1,461,504 1.775020 2,594,199
=========== ============ -----------
Sub-Total Tier IV .................................................... $58,919,325
-----------
</TABLE>
19
<PAGE> 20
<TABLE>
<CAPTION>
Contract owners' equity - continued
<S> <C> <C> <C>
Tier V Units Unit Value
- ------ --------- ----------
AIM Equity Funds, Inc. - AIM Constellation Fund -
Institutional Class ............................................ 1,258,757 $ 2.057438 $ 2,589,814
American Century: Twentieth Century Growth Fund ................... 6,000,935 4.567401 27,408,677
American Century: Twentieth Century Ultra Fund .................... 16,258,739 2.071951 33,687,311
The Bond Fund of America(SM), Inc. ................................ 471,875 2.158056 1,018,333
The Dreyfus Third Century Fund, Inc. .............................. 1,592,562 2.759214 4,394,219
The Evergreen Total Return Fund - Class Y ......................... 494,994 1.949465 964,973
Fidelity Capital & Income Fund .................................... 84,610 4.100654 346,956
Fidelity Contrafund ............................................... 1,600,079 2.061853 3,299,128
Fidelity Equity-Income Fund ....................................... 6,613,425 5.365090 35,481,620
Fidelity Growth & Income Portfolio ................................ 1,071,573 2.003791 2,147,208
Fidelity Magellan(R) Fund .......................................... 15,847,180 1.915038 30,347,952
MFS(R) Growth Opportunities Fund - Class A ......................... 2,053,995 7.387670 15,174,237
MFS(R) High Income Fund - Class A .................................. 466,255 5.523771 2,575,486
Massachusetts Investors Growth Stock Fund - Class A ............... 270,135 10.891785 2,942,252
Nationwide(R) Bond Fund ............................................ 53,369 2.003508 106,925
Nationwide(R) Fund ................................................. 408,411 14.979448 6,117,771
Nationwide(R) Growth Fund .......................................... 517,548 3.086114 1,597,212
Nationwide(R) Money Market Fund .................................... 3,694,679 2.887782 10,669,428
Neuberger & Berman Guardian Fund .................................. 109,176 1.367075 149,252
Putnam Investors Fund - Class A ................................... 1,571,300 13.608194 21,382,555
Putnam Voyager Fund - Class A ..................................... 990,216 3.077980 3,047,865
SEI Index Funds - S&P 500 Index Portfolio ......................... 724,558 2.965481 2,148,663
Seligman Growth Fund, Inc - Class A ............................... 121,166 10.731114 1,300,246
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) .................................... 5,512,814 1.813888 9,999,627
Templeton Foreign Fund - Class I .................................. 168,098 1.776082 298,556
Sub-Total Tier V ............................................... ========== ======== --------------
$ 219,196,266
--------------
Total Contract Owners' Equity ............................... $1,425,789,282
==============
</TABLE>
20
<PAGE> 21
<TABLE>
SCHEDULE 1
<CAPTION>
NATIONWIDE DC VARIABLE ACCOUNT
TIER I
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
AIMCon AIMWein ACTCGro ACTCSel ACTCUltra BdFdAm DNYVenFd
------ ------- ------- ------- --------- ------ --------
<S> <C> <C> <C> <C> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 $1.776138 1.389659 4.005400 1.331631 1.835553 2.039710 1.345221
- ----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .068204 .183484 .087806 .148352 .117544 .153233 .080821
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .229483 .068700 .510359 .106223 .135391 (.017387) .273992
- ----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.018459) (.014319) (.040763) (.013745) (.018623) (.019817) (.014015)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $2.055366 1.627524 4.562802 1.572461 2.069865 2.155739 1.686019
- ----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease
in unit value* 16% 17% 14% 18% 13% 6% 25%
==================================================================================================================================
1995
Beginning unit value - Jan. 1 $1.316836 1.035886 3.359891 1.095899 1.345904 1.741422 .966146
- ----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .056462 .182030 .555289 .161686 .086850 .148075 .099553
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .418051 .183577 .127077 .085796 .418120 .168396 .290764
- ----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.015211) (.011834) (.036857) (.011750) (.015321) (.018183) (.011242)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.776138 1.389659 4.005400 1.331631 1.835553 2.039710 1.345221
- ----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 35% 34% 19% 22% 36% 17% 39%
==================================================================================================================================
1994
Beginning unit value - Jan. 1 $1.305850 1.044414 3.443124 1.202996 1.409710 1.850918 .994508
- ----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .038234 .114765 .498592 .095333 .042137 .138760 .046949
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.014948) (.113428) (.549338) (.191608) (.093077) (.231366) (.065935)
- ----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.012300) (.009865) (.032487) (.010822) (.012866) (.016890) (.009376)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.316836 1.035886 3.359891 1.095899 1.345904 1.741422 .966146
- ----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 1% (1)% (2)% (9)% (5)% (6)% (3)%
==================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
DeDecInc DryCsMgt Dry3dCen
-------- -------- --------
1996**
<S> <C> <C> <C>
Beginning unit value - Jan. 1 1.910384 1.110383 2.238323
- ---------------------------------------------------------------------------------
Reinvested capital gains
and dividends .365309 .059850 .380918
- ---------------------------------------------------------------------------------
Unrealized gain (loss) .024208 .000000 .160989
- ---------------------------------------------------------------------------------
Contract charges (.019691) (.010877) (.023792)
- ---------------------------------------------------------------------------------
Ending unit value -Dec. 31 2.280210 1.159356 2.756438
- ---------------------------------------------------------------------------------
Percentage increase(decrease
in unit value* 19% 4% 23%
=================================================================================
1995
Beginning unit value - Jan. 1 1.449372 1.057458 1.663803
- ---------------------------------------------------------------------------------
Reinvested capital gains
and dividends .199940 .063267 .156545
- ---------------------------------------------------------------------------------
Unrealized gain (loss) .277029 .000000 .436477
- ---------------------------------------------------------------------------------
Contract charges (.015957) (.010342) (.018502)
- ---------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.910384 1.110383 2.238323
- ---------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 32% 5% 35%
=================================================================================
1994
Beginning unit value - Jan. 1 1.473401 1.025704 1.814915
- ---------------------------------------------------------------------------------
Reinvested capital gains
and dividends .102070 .041657 .233019
- ---------------------------------------------------------------------------------
Unrealized gain (loss) (.112176) .000000 (.367765)
- ---------------------------------------------------------------------------------
Contract charges (.013923) (.009903) (.016366)
- ---------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.449372 1.057458 1.663803
- ---------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (2)% 3% (8)%
=================================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do not
include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized.
</TABLE>
21
<PAGE> 22
<TABLE>
SCHEDULE 1, CONTINUED
<CAPTION>
NATIONWIDE DC VARIABLE ACCOUNT
TIER I
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
EvTotRet FedGNMA FedUSGvt FidAsMgr FidCapIn
<S> <C> <C> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 $1.741651 1.243001 1.115461 1.121926 3.712491
- ---------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .097028 .083309 .059931 .098024 .331771
- ---------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .126113 (.021945) (.020301) .043893 .089597
- ---------------------------------------------------------------------------------------------------------------------------------
Contract charges (.017290) (.011985) (.010711) (.011139) (.037371)
- ---------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.947502 1.292380 1.144380 1.252704 4.096488
- ---------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% 4% 3% 12% 10%
=================================================================================================================================
1995
Beginning unit value - Jan. 1 $1.419467 1.081229 .991595 .958564 3.210584
- ---------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .092352 .083381 .065310 .032047 .338236
- ---------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .244789 .089624 .068708 .141097 .197671
- ---------------------------------------------------------------------------------------------------------------------------------
Contract charges (.014957) (.011233) (.010152) (.009782) (.034000)
- ---------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.741651 1.243001 1.115461 1.121926 3.712491
- ---------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 23% 15% 12% 17% 16%
=================================================================================================================================
1994
Beginning unit value - Jan. 1 $1.531292 1.119643 1.020623 1.036089 3.397953
- ---------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .106153 .080720 .050088 .038621 .285090
- ---------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.204194) (.108769) (.069585) (.106677) (.440620)
- ---------------------------------------------------------------------------------------------------------------------------------
Contract charges (.013784) (.010365) (.009531) (.009469) (.031839)
- ---------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.419467 1.081229 .991595 .958564 3.210584
- ---------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (7)% (3)% (3)% (7)% (6)%
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
FidContr FidEqInc FidGrInc
-------- -------- --------
<S> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 1.705419 4.471070 1.683805
- -------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .175363 .342426 .098980
- -------------------------------------------------------------------------------------------
Unrealized gain (loss) .196681 .592510 .236381
- -------------------------------------------------------------------------------------------
Contract charges (.017685) (.046314) (.017391)
- -------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 2.059778 5.359692 2.001775
- -------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 21% 20% 19%
===========================================================================================
1995
Beginning unit value - Jan. 1 1.263308 3.424310 1.255568
- -------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .133103 .262606 .083036
- -------------------------------------------------------------------------------------------
Unrealized gain (loss) .323258 .821416 .358955
- -------------------------------------------------------------------------------------------
Contract charges (.014250) (.037262) (.013754)
- -------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.705419 4.471070 1.683805
- -------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 35% 31% 34%
===========================================================================================
1994
Beginning unit value - Jan. 1 1.289799 3.448520 1.239420
- -------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .009193 .333965 .092801
- -------------------------------------------------------------------------------------------
Unrealized gain (loss) (.023586) (.325363) (.064842)
- -------------------------------------------------------------------------------------------
Contract charges (.012098) (.032812) (.011811)
- -------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.263308 3.424310 1.255568
- -------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (2)% (1)% 1%
===========================================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do not
include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized.
</TABLE>
22
<PAGE> 23
<TABLE>
<CAPTION>
SCHEDULE I, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER I
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
FidMgIn GroFdAm IncFdAm InvIndInc JanFund Jan20Fd MASFIP
------- ------- ------- --------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 $1.729361 2.366626 1.893327 1.451889 1.353271 1.320040 1.156444
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .281779 .148981 .208243 .155929 .181980 .280194 .087565
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.081060) .200078 .078318 .085401 .082218 .085793 (.003056)
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.016970) (.023706) (.018959) (.014706) (.014179) (.014329) (.011193)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.913110 2.691979 2.160929 1.678513) 1.603290 1.671698 1.229760
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 11% 14% 14% 16% 18% 27% 6%
===================================================================================================================================
1995
Beginning unit value - Jan. 1 $1.275955 1.840658 1.480756 1.151056 1.055481 .978264 .980782
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .100389 .182879 .115949 .070871 .070567 .224692 .073523
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .367790 .363801 .312609 .242345 .238735 .128222 .112302
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.014773) (.020712) (.015987) (.012383) (.011512) (.011138) (.010163)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.729361 2.366626 1.893327 1.451889 1.353271 1.320040 1.156444
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 36% 29% 28% 26% 28% 35% 18%
===================================================================================================================================
1994
Beginning unit value - Jan. 1 $1.311856 1.857739 1.533299 1.208959 1.077425 1.058801 1.000000
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .051123 .083262 .097082 .097608 .021792 .002891 .029902
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.074747) (.082914) (.135450) (.144261) (.033660) (.073797) (.046046)
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.012277) (.017429) (.014175) (.011250) (.010076) (.009631) (.003074)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.275955 1.840658 1.480756 1.151056 1.055481 .978264 .980782
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) (3)% (1)% (3)% (5)% (2)% (8)% 2%(b)
===================================================================================================================================
</TABLE>
<TABLE>
MFSGrOpp MFSHiInc MFSGrStk
-------- -------- --------
<S> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 6.114190 4.949752 8.942612
- --------------------------------------------------------------------------------
Reinvested capital gains
and dividends .796398 .454249 2.580988
- --------------------------------------------------------------------------------
Unrealized gain (loss) .534047 .164181 (.547864)
- --------------------------------------------------------------------------------
Contract charges (.064403) (.050022) (.094914)
- --------------------------------------------------------------------------------
Ending unit value - Dec. 31 7.380232 5.518160 10.880822
- --------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 21% 11% 22%
=============================================================================
1995
Beginning unit value - Jan. 1 4.589533 4.265493 7.034148
- --------------------------------------------------------------------------------
Reinvested capital gains
and dividends .768242 .403605 1.177905
- --------------------------------------------------------------------------------
Unrealized gain (loss) .807886 .325361 .807395
- --------------------------------------------------------------------------------
Contract charges (.051471) (.044707) (.076836)
- --------------------------------------------------------------------------------
Ending unit value - Dec. 31 6.114190 4.949752 8.942612
- --------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 33% 16% 27%
================================================================================
1994
Beginning unit value - Jan. 1 4.834037 4.422523 7.613442
- --------------------------------------------------------------------------------
Reinvested capital gains
and dividends .376509 .374437 .717173
- --------------------------------------------------------------------------------
Unrealized gain (loss) (.576664) (.490350) (1.229319)
- --------------------------------------------------------------------------------
Contract charges (.044349) (.041117) (.067148)
- --------------------------------------------------------------------------------
Ending unit value - Dec. 31 4.589533 4.265493 7.034148
- --------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) (5)% (4)% (8)%
================================================================================
<FN>
* An annualized rate of return cannot be determined as:
(a)Contract charges do not include the annual contract maintenance charge
discussed in note 2; and
(b)This investment option was not being utilized for the entire year indicated.
** No other investment options were being utilized.
</TABLE>
23
<PAGE> 24
<TABLE>
<CAPTION>
SCHEDULE I, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER I
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
NWBdFd NWFund NWGroFd NWMyMkt NBManhFd PutInvFd
------ ------ ------- ------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $1.991196 12.191058 2.667201 2.774433 2.259932 11.305164
- ---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .127761 1.119203 .234869 .137555 .306136 1.592658
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.098894) 1.782082 .208017 .000000 (.084784) .815178
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.018591) (.127964) (.027079) (.027140) (.022362) (.118499)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $2.001472 14.964379 3.083008 2.884848 2.458922 13.594501
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 1% 23% 16% 4% 9% 20%
====================================================================================================================================
1995
Beginning unit value - Jan. 1 $1.619166 9.468045 2.092009 2.654661 1.741549 8.297318
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .123140 .820350 .282003 .145674 .165618 1.391197
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .266262 2.003431 .316217 .000000 .372594 1.710170
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.017372) (.100768) (.023028) (.025902) (.019829) (.093521)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.991196 12.191058 2.667201 2.774433 2.259932 11.305164
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 23% 29% 27% 5% 30% 36%
===================================================================================================================================
1994
Beginning unit value - Jan. 1 $1.778765 9.502760 2.081399 2.583387 1.823796 8.652501
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .121459 .927943 .079372 .096188 .115456 .771381
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.265190) (.873192) (.049054) .000000 (.180865) (1.046752)
- -----------------------------------------------------------------------------------------------------------------------------------
Contract charges (.015868) (.089466) (.019708) (.024914) (.016838) (.079812)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.619166 9.468045 2.092009 2.654661 1.741549 8.297318
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (9)% 0% 1% 3% (5)% (4)%
===================================================================================================================================
</TABLE>
<TABLE>
PutVoyFd SEI500Ix SelGroFd
-------- -------- --------
<S> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 2.752130 2.439184 8.934609
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends .194543 .095147 .806272
- ----------------------------------------------------------------------------
Unrealized gain (loss .156646 .453595 1.073420
- ----------------------------------------------------------------------------
Contract charges (.028440) (.025429) (.093989)
- ----------------------------------------------------------------------------
Ending unit value - Dec. 31 3.074879 2.962497 10.720312
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% 21% 20%
============================================================================
1995
Beginning unit value - Jan. 1 1.982311 1.792835 7.020585
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends .146629 .086650 .931537
- ----------------------------------------------------------------------------
Unrealized gain (loss) .645332 .579852 1.057625
- ----------------------------------------------------------------------------
Contract charges (.022142) (.020153) (.075138)
- ----------------------------------------------------------------------------
Ending unit value - Dec. 31 2.752130 2.439184 8.934609
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 39% 36% 27%
============================================================================
1994
Beginning unit value - Jan. 1 1.992379 1.792223 7.370495
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends .083642 .101704 .708203
- ----------------------------------------------------------------------------
Unrealized gain (loss) (.075428) (.084212) (.990524)
- ----------------------------------------------------------------------------
Contract charges (.018282) (.016880) (.067589)
- ----------------------------------------------------------------------------
Ending unit value - Dec. 31 1.982311 1.792835 7.020585
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (1)% 0% (5)%
============================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do not
include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized.
</TABLE>
24
<PAGE> 25
<TABLE>
<CAPTION>
SCHEDULE I, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER I
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
StComStk TRIntStk TemForFd TemGISmCo DryStkIx FidVIPAM FidVIPEI
-------- -------- -------- --------- -------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $1.315349 1.577274 1.518092 1.490946 1.322035 1.107535 1.303642
- ---------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .236157 .048548 .074298 .181637 .057158 .072883 .060157
- ---------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .031534 .202392 .197440 .146014 .239160 .087931 .124996
- ---------------------------------------------------------------------------------------------------------------------------------
Contract charges (.013556) (.016152) (.015536) (.015634) (.013773) (.011127) (.013108)
- ---------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.569484 1.812062 1.774294 1.802963 1.604580 1.257222 1.475687
- ---------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 19% 15% 17% 21% 21% 14% 13%
=================================================================================================================================
1995
Beginning unit value - Jan. 1 $1.002820 1.429428 1.378759 1.279328 .975745 .955979 .974175
- ---------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .140205 .047536 .095828 .193896 .035036 .020086 .076250
- ---------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .183299 .114284 .057277 .031012 .322198 .141130 .264015
- ---------------------------------------------------------------------------------------------------------------------------------
Contract charges (.010975) (.013974) (.013772) (.013290) (.010944) (.009660) (.010798)
- ---------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.315349 1.577274 1.518092 1.490946 1.322035 1.107535 1.303642
- ---------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 31% 10% 10% 17% 35% 16% 34%
=================================================================================================================================
1994
Beginning unit value - Jan. 1 $1.017301 1.454045 1.387073 1.353616 1.000000 1.000000 1.000000
- ---------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .063114 .087659 .098557 .032943 .016017 .000695 .011343
- ---------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.067992) (.098366) (.093448) (.094423) (.037213) (.041640) (.034096)
- ---------------------------------------------------------------------------------------------------------------------------------
Contract charges (.009603) (.013910) (.013423) (.012808) (.003059) (.003076) (.003072)
- ---------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.002820 1.429428 1.378759 1.279328 .975745 .955979 .974175
- ---------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (a) (1)% (2)% (1)% (5)% (2)%(b) (4)%(b) (3)%(b)
=================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
FidVIPGr FidVIPHI
-------- --------
1996**
<S> <C> <C>
Beginning unit value - Jan. 1 1.366323 1.185437
- -----------------------------------------------------------------
Reinvested capital gains
and dividends .098176 .108119
- -----------------------------------------------------------------
Unrealized gain (loss) .101895 .057435
- -----------------------------------------------------------------
Contract charges (.014043) (.012052)
- -----------------------------------------------------------------
Ending unit value - Dec. 31 1.552351 1.338939
- -----------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 14% 13%
=================================================================
1995
Beginning unit value - Jan. 1 1.018963 .992271
- -----------------------------------------------------------------
Reinvested capital gains
and dividends .005632 .071867
- -----------------------------------------------------------------
Unrealized gain (loss) .353481 .131757
- -----------------------------------------------------------------
Contract charges (.011753) (.010458)
- -----------------------------------------------------------------
Ending unit value - Dec. 31 1.366323 1.185437
- -----------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 34% 19%
=================================================================
1994
Beginning unit value - Jan. 1 1.000000 1.000000
- -----------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .000000
- -----------------------------------------------------------------
Unrealized gain (loss) .022089 (.004613)
- -----------------------------------------------------------------
Contract charges (.003126) (.003116)
- -----------------------------------------------------------------
Ending unit value - Dec. 31 1.018963 .992271
- -----------------------------------------------------------------
Percentage increase (decrease)
in unit value* (a) 2%(b) (1)%(b)
=================================================================
<FN>
* An annualized rate of return cannot be determined as:
(a)Contract charges do not include the annual contract maintenance charge
discussed in note 2; and
(b)This investment option was not being utilized for the entire year indicated.
** No other investment options were being utilized.
</TABLE>
25
<PAGE> 26
<TABLE>
<CAPTION>
SCHEDULE I, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER I
SCHEDULES OF CHANGES IN UNIT VALUE
YEARS ENDED DECEMBER 31, 1996, 1995 AND 1994
FidVIPOv NSATGvtBd NSATMyMkt NSATTotRe NBAMTGro NBAMTLMat NBAMTPart
-------- --------- --------- --------- -------- --------- ---------
1996***
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $1.029809 1.574158 1.209790 1.950853 1.661013 1.093904 1.306186
- ------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .025345 .097615 .061618 .130389 .150704 .092066 .053229
- ------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .110017 (.043342) .000000 .293296 .000296 (.045340) .330901
- ------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.010329) (.014866) (.011852) (.020182) (.016406) (.010470) (.013965)
- ------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.154842 1.613565 1.259556 2.354356 1.795607 1.130160 1.676351
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 12% 3% 4% 21% 8% 3% 28%
====================================================================================================================================
1995
Beginning unit value - Jan. 1 $ .947883 1.338281 1.155984 1.525590 1.272940 .995462 .966223
- ------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .007252 .094912 .065092 .151626 .045057 .055297 .007900
- ------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .083925 .154829 .000000 .290215 .357539 .053054 .342968
- ------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.009251) (.013864) (.011286) (.016578) (.014523) (.009909) (.010905)
- ------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $1.029809 1.574158 1.209790 1.950853 1.661013 1.093904 1.306186
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 9% 18% 5% 28% 30% 10% 35%
====================================================================================================================================
1994
Beginning unit value - Jan. 1 $1.000000 1.396125 1.123427 1.523742 1.352530 1.000000 1.000000
- ------------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .087782 .043407 .077107 .163043 .000000 .000000
- ------------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.049090) (.132815) .000000 (.060675) (.230291) (.001418) (.030724)
- ------------------------------------------------------------------------------------------------------------------------------------
Contract charges (.003027) (.012811) (.010850) (.014584) (.012342) (.003120) (.003053)
- ------------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $ .947883 1.338281 1.155984 1.525590 1.272940 .995462 .966223
- ------------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) (5)%(b) (4)% 3% 0% (6)% 0%(b) (3)%(b)
====================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
TCIBal TCIGro
------ ------
<S> <C> <C>
1996***
Beginning unit value - Jan. 1 1.184177 1.729155
- -------------------------------------------------------------------
Reinvested capital gains
and dividends .055995 .193969
- -------------------------------------------------------------------
Unrealized gain (loss) .087770 .268047
- -------------------------------------------------------------------
Contract charges (.011818) (.016378)
- -------------------------------------------------------------------
Ending unit value - Dec. 31 1.316124 1.638699
- -------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 11% (5)%
===================================================================
1995
Beginning unit value - Jan. 1 .986992 1.331537
- -------------------------------------------------------------------
Reinvested capital gains
and dividends .028002 .001532
- -------------------------------------------------------------------
Unrealized gain (loss) .179505 .410981
- -------------------------------------------------------------------
Contract charges (.010322) (.014895)
- -------------------------------------------------------------------
Ending unit value - Dec. 31 1.184177 1.729155
- -------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) 20% 30%
===================================================================
1994
Beginning unit value - Jan. 1 ** 1.360119
- -------------------------------------------------------------------
Reinvested capital gains
and dividends .000146
- -------------------------------------------------------------------
Unrealized gain (loss) (.016072)
- -------------------------------------------------------------------
Contract charges (.012656)
- -------------------------------------------------------------------
Ending unit value - Dec. 31 1.331537
- -------------------------------------------------------------------
Percentage increase (decrease)
in unit value*(a) (2)%
===================================================================
<FN>
* An annualized rate of return cannot be determined as:
(a)Contract charges do not include the annual contract maintenance charge
discussed in note 2; and
(b)This investment option was not being utilized for the entire year indicated.
** This investment option was not utilized or was not available.
*** No other investment options were being utilized.
</TABLE>
26
<PAGE> 27
<TABLE>
<CAPTION>
SCHEDULE I, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER II +
SCHEDULES OF CHANGES IN UNIT VALUE
YEAR ENDED DECEMBER 31, 1996
ACTCGro ACTCUltra BdFdAm DNYVenFd DeDecInc DryCsMgt Dry3dCen
------- --------- ------ -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 $4.005400 1.835553 2.039710 1.345221 1.910384 1.110383 2.238323
- ---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .087812 117552 .153233 .080824 .365329 .059863 .380939
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .510348 .135379 (.017388) .273991 .024189 .000000 .160966
- ---------------------------------------------------------------------------------------------------------------------------
Contract charges (.040384) (.018449) (.019617) (.013879) (.019505) (.010793) (.023565)
- ---------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $4.563176 2.070035 2.155938 1.686157 2.280397 1.159453 2.756663
- ---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 14% 13% 6% 25% 19% 4% 23%
===========================================================================================================================
EvTotRet FedUSGvt FidAsMgr FidCapInc
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 1.741651 1.115461 1.121926 3.712491
- ------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .097030 .059931 .098028 .331771
- ------------------------------------------------------------------------------------
Unrealized gain (loss) .126118 (.020303) .043887 .089599
- ------------------------------------------------------------------------------------
Contract charges (.017138) (.010612) (.011035) (.037028)
- ------------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.947661 1.144477 1.252806 4.096833
- ------------------------------------------------------------------------------------
Percentage increase (decrease
in unit value* 12% 3% 12% 10%
====================================================================================
<CAPTION>
FidContr FidEqInc FidMgIn GroFdAm IncFdAm InvIndInc JanFund
-------- -------- ------- ------- ------- --------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
1996**
Beginning unit value - Jan. 1 $1.705419 4.471070 1.729361 2.366626 1.893327 1.451889 1.353271
- ---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .175369 .342436 .281780 .148989 .208253 .155937 .181994
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .196677 .592501 (.081059) .200075 .078308 .085395 .082203
- ---------------------------------------------------------------------------------------------------------------------------
Contract charges (.017518) (.045877) (.016815) (.023491) (.018782) (.014571) (.014047)
- ---------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $2.059947 5.360130 1.913267 2.692199 2.161106 1.678650 1.603421
- ---------------------------------------------------------------------------------------------------------------------------
Percentage increase
(decrease) in unit value* 21% 20% 11% 14% 14% 16% 18%
===========================================================================================================================
<CAPTION>
MASFIP MFSGrOpp MFSHiInc
------ -------- --------
1996**
<S> <C> <C> <C>
Beginning unit value - Jan. 1 1.156444 6.114190 4.949752
- ------------------------------------------------------------------------
Reinvested capital gains
and dividends .087567 .796451 .454253
- ------------------------------------------------------------------------
Unrealized gain (loss) (.003065) .533998 .164177
- ------------------------------------------------------------------------
Contract charges (.011085) (.063802) (.049558)
- ------------------------------------------------------------------------
Ending unit value - Dec. 31 1.229861 7.380837 5.518624
- ------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 6% 21% 11%
========================================================================
<CAPTION>
MFSGrStk NWFund NWGroFd NWMyMkt PutInvFd PutVoyFd SEI500Ix
-------- ------ ------- ------- -------- -------- --------
1996**
- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $8.942612 12.191058 2.667201 2.774433 11.305164 2.752130 2.439184
- ---------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 2.581161 1.119275 .234885 .137556 1.592747 .194555 .095149
- ---------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.548045) 1.782011 .208001 .000000 .815074 .156633 .453589
- ---------------------------------------------------------------------------------------------------------------------------
Contract charges (.094015) (.126740) (.026826) (.026898) (.117371) (.028187) (.025182)
- ---------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $10.881713 14.965604 3.083261 2.885091 13.595614 3.075131 2.962740
- ---------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 22% 23% 16% 4% 20% 12% 21%
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
SelGroFd TRIntStk TemForFd
-------- -------- --------
1996**
- ------
<S> <C> <C> <C>
Beginning unit value - Jan. 1 8.934609 1.577274 1.518092
- ------------------------------------------------------------------------
Reinvested capital gains
and dividends .806286 .048552 .074298
- ------------------------------------------------------------------------
Unrealized gain (loss) 1.073404 .202388 .197443
- ------------------------------------------------------------------------
Contract charges (.093109) (.016004) (.015394)
- ------------------------------------------------------------------------
Ending unit value - Dec. 31 10.721190 1.812210 1.774439
- ------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 20% 15% 17%
========================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do
not include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized.
+ See note 2
</TABLE>
27
<PAGE> 28
<TABLE>
SCHEDULE I, CONTINUED
<CAPTION>
NATIONWIDE DC VARIABLE ACCOUNT
TIER III+
SCHEDULES OF CHANGES IN UNIT VALUE
YEAR ENDED DECEMBER 31, 1996
ACTCGro ACTCUltra BdFdAm DeDecInc Dry3dCen EvTotRet FedUSGvt
------- --------- ------ -------- -------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $4.005400 1.835553 2.039710 1.910384 2.238323 1.741651 1.115461
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .087823 .117567 .153233 .365368 .380981 .097034 .059933
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .510320 .135351 (.017390) .024153 .160920 .125977 (.020307)
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.039618) (.018097) (.019217) (.019135) (.023109) (.016682) (.010418)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $4.563925 2.070374 2.156336 2.280770 2.757115 1.947980 1.144669
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 14% 13% 6% 19% 23% 12% 3%
===============================================================================================================================
<CAPTION>
FidAsMgr FidCapInc FidContr
-------- --------- --------
1996**
<S> <C> <C> <C> <C>
Beginning unit value - Jan. 1 1.121926 3.712491 1.705419
- --------------------------------------------------------------------------
Reinvested capital gains
and dividends .098038 .331771 .175380
- --------------------------------------------------------------------------
Unrealized gain (loss) .043881 .089604 .196669
- --------------------------------------------------------------------------
Contract charges (.010833) (.036344) (.017184)
- --------------------------------------------------------------------------
Ending unit value - Dec. 31 1.253012 4.097522 2.060284
- --------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% 10% 21%
==========================================================================
<CAPTION>
FidEqInc FidMgIn GroFdAm IncFdAm InvIndInc JanFund
-------- ------- ------- ------- --------- -------
1996**
- ------
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $4.471070 1.729361 2.366626 1.893327 1.451889 1.353271
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .342458 .281781 .149006 .208273 .155950 .182021
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .592488 (.081065) .200051 .078292 .085383 .082179
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.045008) (.016497) (.023043) (.018432) (.014297) (.013787)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $5.361008 1.913580 2.692640 2.161460 1.678925 1.603684
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 20% 11% 14% 14% 16% 19%
===============================================================================================================================
<CAPTION>
MASFIP MFSGrOpp MFSHiInc MFSGrStk
------ -------- -------- --------
1996**
- ------
<S> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 1.156444 6.114190 4.949752 8.942612
- --------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .087571 .796558 .454458 2.581506
- --------------------------------------------------------------------------------------------
Unrealized gain (loss) (.003061) .533887 .163904 (.548408)
- --------------------------------------------------------------------------------------------
Contract charges (.010892) (.062589) (.048562) (.092214)
- --------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.230062 7.382046 5.519552 10.883496
- --------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 6% 21% 12% 22%
============================================================================================
<CAPTION>
NWFund NWGroFd NWMyMkt PutInvFd PutVoyFd SelGroFd
------ ------- ------- -------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $12.191058 2.667201 2.774433 11.305164 2.752130 8.934609
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.119420 .234917 .137554 1.592926 .194581 .806315
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.781872 .207974 .000000 .814880 .156599 1.073372
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.124295) (.026326) (.026411) (.115128) (.027675) (.091349)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $14.968055 3.083766 2.885576 13.597842 3.075635 10.722947
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 23% 16% 4% 20% 12% 20%
===============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
TRIntStk TemForFd
-------- --------
1996**
<S> <C> <C>
Beginning unit value - Jan. 1 1.577274 1.518092
- --------------------------------------------------------------------------
Reinvested capital gains
and dividends .048559 .074300
- --------------------------------------------------------------------------
Unrealized gain (loss) .202389 .197449
- --------------------------------------------------------------------------
Contract charges (.015715) (.015111)
- --------------------------------------------------------------------------
Ending unit value - Dec. 31 1.812507 1.774730
- --------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 15% 17%
==========================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do
not include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized.
+ See note 2
</TABLE>
28
<PAGE> 29
<TABLE>
<CAPTION>
SCHEDULE I, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER IV+
SCHEDULES OF CHANGES IN UNIT VALUE
YEAR ENDED DECEMBER 31, 1996
ACTCGro ACTCSel ACTCUltra BdFdAm Dry3dCen EvTotRet FedUSGvt
------- ------- --------- ------ -------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $4.005400 1.331631 1.835553 2.039710 2.238323 1.741651 1.115461
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .087834 .148399 .117582 .153234 .381022 .097037 .059933
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .510292 .106166 .135328 (.017388) .160874 .126116 (.020305)
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.038853) (.013091) (.017750) (.018822) (.022652) (.016505) (.010228)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $4.564673 1.573105 2.070713 2.156734 2.757567 1.948229 1.144861
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 14% 18% 13% 6% 23% 12% 3%
================================================================================================================================
<CAPTION>
FidAsMgr FidCapInc FidContr
-------- --------- --------
1996**
<S> <C> <C> <C>
Beginning unit value - Jan. 1 1.121926 3.712491 1.705419
- -------------------------------------------------------------------------------
Reinvested capital gains
and dividends .098047 .331772 .175391
- -------------------------------------------------------------------------------
Unrealized gain (loss) .043870 .089608 .196662
- -------------------------------------------------------------------------------
Contract charges (.010626) (.035661) (.016851)
- -------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.253217 4.098210 2.060621
- -------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% 10% 21%
===============================================================================
<CAPTION>
FidEqInc FidMgIn GroFdAm IncFdAm InvIndInc JanFund MASFIP
-------- ------- ------- ------- --------- ------- ------
1996**
<S> <C> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $4.471070 1.729361 2.366626 1.893327 1.451889 1.353271 1.156444
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .342479 .281783 .149022 .208293 .155964 .182048 .087575
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .592476 (.081063) .200043 .078277 .085372 .082155 (.003066)
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.044139) (.016187) (.022610) (.018083) (.014025) (.013527) (.010689)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $5.361886 1.913894 2.693081 2.161814 1.679200 1.603947 1.230264
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 20% 11% 14% 14% 16% 19% 6%
================================================================================================================================
<CAPTION>
MFSGrOpp MFSHiInc
-------- --------
1996**
<S> <C> <C>
Beginning unit value - Jan. 1 6.114190 4.949752
- -------------------------------------------------------------------------------
Reinvested capital gains
and dividends .796664 .454255
- -------------------------------------------------------------------------------
Unrealized gain (loss) .533781 .164183
- -------------------------------------------------------------------------------
Contract charges (.061380) (.047711)
- -------------------------------------------------------------------------------
Ending unit value - Dec. 31 7.383255 5.520479
- -------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 21% 12%
===============================================================================
<CAPTION>
MFSGrStk NWFund NWGroFd NWMyMkt PutInvFd PutVoyFd
-------- ------ ------- ------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $8.942612 12.191058 2.667201 2.774433 11.305164 2.752130
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends 2.581851 1.119564 .234950 .137553 1.593104 .194606
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.548770) 1.781730 .207948 .000000 .814688 .156571
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.090414) (.121847) (.025829) (.025926) (.112887) (.027167)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 10.885279 14.970505 3.084270 $2.886060 13.600069 3.076140
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 22% 23% 16% 4% 20% 12%
================================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
SelGroFd TRIntStk TemForFd
-------- -------- --------
1996**
<S> <C> <C> <C>
Beginning unit value - Jan. 1 8.934609 1.577274 1.518092
- -------------------------------------------------------------------------------
Reinvested capital gains
and dividends .806343 .048567 .074301
- -------------------------------------------------------------------------------
Unrealized gain (loss) 1.073337 .202387 .197454
- -------------------------------------------------------------------------------
Contract charges (.089586) (.015425) (.014827)
- -------------------------------------------------------------------------------
Ending unit value - Dec. 31 10.724703 1.812803 1.775020
- -------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 20% 15% 17%
===============================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do
not include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized.
+ See note 2
</TABLE>
29
<PAGE> 30
<TABLE>
<CAPTION>
SCHEDULE 1, CONTINUED
NATIONWIDE DC VARIABLE ACCOUNT
TIER V+
SCHEDULES OF CHANGES IN UNIT VALUE
YEAR ENDED DECEMBER 31, 1996
AIMCon ACTCGro ACTCUltra BdFdAm Dry3dCen EvTotRet
------ ------- --------- ------ -------- --------
1996**
- ------
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $1.776138 4.005400 1.835553 2.039710 2.238323 1.741651
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .068263 .087885 .117650 .153258 .381239 .097058
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .229451 .510308 .135286 (.017382) .160736 .126151
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.016414) (.036192) (.016538) (.017530) (.021084) (.015395)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $2.057438 4.567401 2.071951 2.158056 2.759214 1.949465
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 16% 14% 13% 6% 23% 12%
===============================================================================================================================
FidCapInc FidContr FidEqInc
<CAPTION>
--------- -------- --------
1996**
- ------
<S> <C> <C> <C>
Beginning unit value - Jan. 1 3.712491 1.705419 4.471070
- -------------------------------------------------------------------------------
Reinvested capital gains
and dividends .331796 .175441 .342592
- -------------------------------------------------------------------------------
Unrealized gain (loss) .089631 .196694 .592574
- -------------------------------------------------------------------------------
Contract charges (.033264) (.015701) (.041146)
- -------------------------------------------------------------------------------
Ending unit value - Dec. 31 4.100654 2.061853 5.365090
- -------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 10% 21% 20%
===============================================================================
<CAPTION>
FidGrInc FidMgIn MFSGrOpp MFSHiInc MFSGrStk NWBdFd
1996**
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $1.683805 1.729361 6.114190 4.949752 8.942612 1.991196
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .098999 .281791 .797129 .454312 2.583355 .127782
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .236438 (.081008) .533537 .164197 (.550009) (.098900)
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.015451) (.015106) (.057186) (.044490) (.084173) (.016570)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $2.003791 1.915038 7.387670 5.523771 10.891785 2.003508
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 19% 11% 21% 12% 22% 1%
===============================================================================================================================
<CAPTION>
NWFund NWGroFd
1996**
<S> <C> <C>
Beginning unit value - Jan. 1 12.191058 2.667201
- -------------------------------------------------------------------------------
Reinvested capital gains
and dividends 1.120138 .235077
- -------------------------------------------------------------------------------
Unrealized gain (loss) 1.781742 .207926
- -------------------------------------------------------------------------------
Contract charges (.113490) (.024090)
- -------------------------------------------------------------------------------
Ending unit value - Dec. 31 14.979448 3.086114
- -------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 23% 16%
===============================================================================
<CAPTION>
NWMyMkt NBGuardTM PutInvFd PutVoyFd SEI500Ix SelGroFd
------- --------- -------- -------- -------- --------
1996**
<S> <C> <C> <C> <C> <C> <C>
Beginning unit value - Jan. 1 $2.774433 1.169665 11.305164 2.752130 2.439184 8.934609
- -------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .137564 .076520 1.594014 .194720 .095184 .806773
- -------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .000000 .131365 .814112 .156454 .453672 1.073177
- -------------------------------------------------------------------------------------------------------------------------------
Contract charges (.024215) (.010475) (.105096) (.025324) (.022559) (.083445)
- -------------------------------------------------------------------------------------------------------------------------------
Ending unit value - Dec. 31 $2.887782 1.367075 13.608194 3.077980 2.965481 10.731114
- -------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 4% 17% 20% 12% 22% 20%
===============================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
TRIntStk TemForFd
-------- --------
1996**
<S> <C> <C>
Beginning unit value - Jan. 1 1.577274 1.518092
- -------------------------------------------------------------------------------
Reinvested capital gains
and dividends .048595 .074334
- -------------------------------------------------------------------------------
Unrealized gain (loss) .202414 .197488
- -------------------------------------------------------------------------------
Contract charges (.014395) (.013832)
- -------------------------------------------------------------------------------
Ending unit value - Dec. 31 1.813888 1.776082
- -------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 15% 17%
===============================================================================
<FN>
* An annualized rate of return cannot be determined as contract charges do
not include the annual contract maintenance charge discussed in note 2.
** No other investment options were being utilized
+ See note 2
See note 3
</TABLE>
30
<PAGE> 31
Independent Auditors' Report
----------------------------
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide DC Variable Account:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide DC Variable Account as of December 31,
1996, and the related statements of operations and changes in contract owners'
equity and schedules of changes in unit value for each of the years in the three
year period then ended. These financial statements and schedules of changes in
unit value are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements and
schedules of changes in unit value based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and schedules of
changes in unit value are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures include confirmation of securities
owned as of December 31, 1996, by correspondence with the transfer agents of the
underlying mutual funds. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and schedules of changes in unit
value referred to above present fairly, in all material respects, the financial
position of Nationwide DC Variable Account as of December 31, 1996, and the
results of its operations and its changes in contract owners' equity and the
schedules of changes in unit value for each of the years in the three year
period then ended in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 7, 1997
31
<PAGE> 32
<TABLE>
<CAPTION>
<S> <C>
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual Insurance Company
</TABLE>
