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NATIONWIDE
DC VARIABLE
ACCOUNT
[LOGO]
SEMI-ANNUAL REPORT
TO
PARTICIPANTS AND RETIRED PARTICIPANTS
JUNE 30, 1998
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
[NATIONWIDE LIFE INSURANCE COMPANY LOGO]
APO-723-Y (6/98)
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[NATIONWIDE LIFE INSURANCE COMPANY LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to present the 1998
semi-annual report of the Nationwide DC Variable Account.
The bull market continued its run in the first half of 1998. Most of
the gains came in the first quarter with more modest returns or small
losses for the second half of the period. At this writing, a market
correction that began in the second quarter continues to provide a good
deal of day-to-day volatility. Much of the capriciousness of the market
is due to uncertainty about the economic outcome in Asia. However, we
think the correction will be of limited magnitude and duration and will
provide a healthy respite before further market advances.
We believe that existing economic and market fundamentals provide an
ongoing favorable environment for financial assets. Interest rates
remain low; inflation is nearly nonexistent; corporate earnings, albeit
slowing, remain positive, and U.S. economic growth appears to be on a
modest but sustainable track.
Against this backdrop, we believe our variable insurance products
continue to provide the versatile investment vehicle you need to
respond to changing market conditions. We are committed to the
continual evaluation of our products and services to ensure that we
remain responsive to your long-term financial planning and
retirement-savings needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 17, 1998
3
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CONTENTS
HOW TO READ THE SEMI-ANNUAL REPORT ....................................... 5
Explanation on how to read and understand
the various financial reports
FUND PERFORMANCES ........................................................ 6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY ............. 8
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY ............................................... 11
NOTES TO FINANCIAL STATEMENTS ............................................ 29
4
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HOW TO READ THE SEMI-ANNUAL REPORT
This Semi-Annual Report is sent to all customers who own a Nationwide annuity
with all or some of the funds in the Nationwide DC Variable Account (the
Account). The Account is a separate account trust which offers investment
options in sixty-seven mutual funds from twenty-one mutual fund houses.
The Semi-Annual Report has two major financial sections.
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
This statement, beginning on page 8, lists all the funds in the Account, the
number of shares owned, the amount paid for the shares (i.e., cost) and their
market value on June 30, 1998. The funds are 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 33.
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.
As you review the following pages of the Semi-Annual Report, the Notes to
Financial Statements, beginning on page 29, will also help explain and clarify
the various statements and schedules.
5
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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
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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6 Months Year 3 Years 5 Years 10 Years*
1/1/98- 1997 7/1/95- 7/1/93- 7/1/88-
Funds** 6/30/98 6/30/98 6/30/98 6/30/98
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<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
AIM Constellation Fund 12.61% 12.37% 17.01% 17.02% 18.53%
Janus Twenty Fund 35.18% 28.47% 34.65% 22.43% 22.54%
Mass. Investors Growth Stock Fund 23.49% 46.75% 34.08% 23.39% 18.75%
Putnam Voyager Fund 16.25% 24.79% 24.52% 20.64% 18.44%
GROWTH FUNDS
AIM Weingarten Fund 18.06% 25.28% 23.99% 19.22% 16.51%
American Century: Twentieth Century Growth Fund 22.79% 28.06% 21.78% 17.09% 15.82%
American Century: Twentieth Century Select Fund 19.25% 30.94% 24.77% 16.28% 14.55%
American Century: Twentieth Century Ultra Fund 23.41% 21.97% 24.51% 18.66% 20.95%
Davis New York Venture Fund 9.96% 32.41% 27.15% 21.46% 19.40%
Dreyfus Third Century Fund 17.62% 28.15% 28.40% 19.14% 15.46%
Fidelity Contrafund 16.73% 21.84% 24.50% 19.23% 21.83%
Fidelity Magellan (SM) Fund 17.52% 25.40% 20.93% 18.19% 17.64%
Fidelity OTC Portfolio 18.16% 8.87% 20.05% 17.59% 16.39%
Growth Fund of America(R) 13.95% 25.66% 19.70% 17.87% 15.13%
Janus Fund 20.93% 21.56% 24.41% 18.09% 18.49%
MFS(R) Growth Opportunities Fund 19.82% 22.12% 25.38% 18.75% 14.93%
Nationwide(R) Growth Fund 18.41% 25.04% 22.68% 18.36% 14.09%
Neuberger & Berman Manhattan Fund 15.26% 27.98% 19.77% 16.30% 15.12%
Putnam Investors Fund 22.29% 33.22% 30.38% 22.27% 17.78%
Seligman Growth Fund 19.83% 16.99% 24.17% 17.52% 14.80%
Strong Common Stock 7.75% 22.85% 21.11% 18.01% 20.02%
GROWTH AND INCOME FUNDS
Delaware Group - Decatur Income Fund 8.57% 28.73% 23.52% 17.93% 13.33%
Evergreen Income and Growth Fund 1.50% 24.40% 15.54% 10.72% 9.97%
Fidelity Asset Manager(TM) 7.59% 21.12% 16.44% 11.88% 12.79%
Fidelity Equity-Income Fund 10.73% 28.76% 24.63% 19.03% 14.75%
Fidelity Growth and Income Portfolio 15.51% 28.94% 27.31% 20.73% 18.46%
Fidelity Puritan(R) Fund 10.31% 21.19% 18.56% 14.55% 13.57%
Income Fund of America(R) 5.86% 21.01% 17.83% 13.45% 12.59%
INVESCO Industrial Income Fund 9.23% 25.25% 20.24% 15.12% 15.52%
Nationwide(R) Fund 21.44% 38.31% 33.78% 23.10% 17.48%
Neuberger & Berman Guardian Fund 12.10% 16.82% 18.02% 16.55% 15.22%
INCOME FUNDS
Bond Fund of America(SM) 3.34% 8.20% 7.88% 6.18% 8.36%
Fidelity Capital & Income Fund 7.62% 13.62% 12.11% 9.42% 10.88%
MAS Fixed Income Portfolio 2.89% 8.57% 8.29% 6.49% 8.69%
MFS(R) High Income Fund 5.41% 11.78% 11.64% 9.20% 9.47%
Nationwide(R) Bond Fund 3.84% 8.27% 6.80% 5.34% 7.65%
INDEX FUND
Dreyfus S&P 500 Index Fund 16.87% 31.83% 28.30% 21.23% 15.78%
SEI Index Fund (S & P 500 Index) 17.03% 31.82% 28.71% 21.61% 17.17%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(SM) 13.18% 1.73% 12.27% 12.12% 10.12%
Templeton Foreign Fund 2.13% 5.64% 9.35% 10.72% 11.29%
Templeton Global Smaller Companies Fund 3.14% 6.05% 11.37% 11.08% 10.76%
GOVERNMENT BOND FUNDS
Federated U.S. Government Securities Fund 2.52% 6.12% 5.16% 4.37% 6.45%
MONEY MARKET FUND
Dreyfus Cash Management 2.26% 4.55% 4.58% 4.08% 4.89%
Nationwide(R) Money Market Fund 2.05% 4.12% 4.13% 3.65% 4.38%
S&P 500 *** 17.71% 33.36% 30.24% 23.08% 18.56%
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</TABLE>
* The percentage in the 10-year column for the Fidelity Asset Manager
reflects performance since its inception in December 1988, the figure shown
for Strong Common Stock reflects performance since its inception in
December 1989, and the figure shown for Dreyfus S&P 500 Index Fund reflects
performance since its inception in November 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: Nationwide Advisory Services
Computer Directions Advisors, Inc.
6
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Average Annual Total Return: Standardized
Percent Change in Net Assets with Capital Gains and Income Dividends Reinvested
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
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6 Months Year 3 Years 5 Years 10 Years*
1/1/98- 1997 7/1/95- 7/1/93- 7/1/88-
Funds** 6/30/98 6/30/98 6/30/98 6/30/98
- --------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
AIM Constellation Fund 6.86% 5.87% 14.46% 15.27% 17.59%
Janus Twenty Fund 29.43% 21.97% 32.48% 20.61% 21.73%
Mass. Investors Growth Stock Fund 17.74% 40.25% 31.89% 21.64% 17.69%
Putnam Voyager Fund 10.50% 18.29% 22.19% 18.97% 17.44%
GROWTH FUNDS
AIM Weingarten Fund 12.31% 18.78% 21.60% 17.45% 15.47%
American Century: Twentieth Century Growth Fund 17.04% 21.56% 19.25% 15.21% 14.76%
American Century: Twentieth Century Select Fund 13.50% 24.44% 22.37% 14.32% 13.41%
American Century: Twentieth Century Ultra Fund 17.66% 15.47% 22.14% 16.85% 20.07%
Davis New York Venture Fund 4.21% 25.91% 24.86% 19.78% 18.44%
Dreyfus Third Century Fund 11.87% 21.65% 26.14% 17.31% 14.32%
Fidelity Contrafund 10.98% 15.34% 22.13% 17.47% 21.02%
Fidelity Magellan(R) Fund 11.77% 18.90% 18.41% 16.41% 16.65%
Fidelity OTC Portfolio 12.41% 2.37% 17.58% 15.81% 15.34%
Growth Fund of America(R) 8.20% 19.16% 17.15% 16.10% 14.01%
Janus Fund 15.18% 15.06% 22.03% 16.27% 17.58%
MFS(R) Growth Opportunities Fund 14.07% 15.62% 23.05% 16.94% 13.75%
Nationwide(R) Growth Fund 12.66% 18.54% 20.25% 16.58% 12.85%
Neuberger & Berman Manhattan Fund 9.51% 21.48% 17.24% 14.43% 14.02%
Neuberger & Berman Partners Fund 0.86% 21.51% 22.10% 17.65% 14.44%
Putnam Investors Fund 16.54% 26.72% 28.14% 20.55% 16.70%
Seligman Growth Fund 14.08% 10.49% 21.83% 15.70% 13.66%
Strong Common Stock 2.00% 16.35% 18.69% 16.28% N/A
GROWTH AND INCOME FUNDS
Delaware Group - Decatur Income Fund 2.82% 22.23% 21.15% 16.14% 12.06%
Evergreen Income and Growth Fund -4.25% 17.90% 12.92% 8.62% 8.60%
Fidelity Asset Manager(TM) 1.84% 14.62% 13.83% 9.86% N/A
Fidelity Equity-Income Fund 4.98% 22.26% 22.29% 17.28% 13.52%
Fidelity Growth and Income Portfolio 9.76% 22.44% 25.03% 19.02% 17.47%
Fidelity Puritan(R) Fund 4.56% 14.69% 16.03% 12.66% 12.39%
Income Fund of America(R) 0.11% 14.51% 15.29% 11.50% 11.37%
INVESCO Industrial Income Fund 3.48% 18.75% 17.76% 13.22% 14.48%
Nationwide(R) Fund 15.69% 31.81% 31.62% 21.38% 16.39%
Neuberger & Berman Guardian Fund 6.35% 10.32% 15.46% 14.77% 14.12%
INCOME FUND
Bond Fund of America(SM) -2.41% 1.70% 4.96% 3.91% 6.98%
Fidelity Capital & Income Fund 1.87% 7.12% 9.34% 7.31% 9.56%
MAS Fixed Income Portfolio -2.86% 2.07% 5.40% 4.23% 7.33%
MFS(R) High Income Fund -0.34% 5.28% 8.87% 7.09% 8.06%
Nationwide(R) Bond Fund -1.91% 1.77% 3.82% 3.00% 6.23%
INDEX FUND
Dreyfus S&P 500 Index Fund 11.12% 25.33% 26.04% 19.51% N/A
SEI Index Fund (S & P 500 Index) 11.28% 25.32% 26.46% 19.90% 16.09%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(SM) 7.43% -4.77% 9.60% 10.26% 8.83%
Templeton Foreign Fund -3.62% -0.86% 6.58% 8.82% 10.15%
Templeton Global Smaller Companies Fund -2.61% -0.45% 8.69% 9.17% 9.51%
GOVERNMENT BOND FUNDS
Federated U.S. Government Securities Fund -3.23% -0.38% 2.12% 2.00% 4.96%
MONEY MARKET FUND
Dreyfus Cash Management -3.49% -1.95% 1.53% 1.73% 3.27%
Nationwide(SM) Money Market Fund -3.70% -2.38% 1.06% 1.26% 2.72%
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</TABLE>
* The percentage in the 10-year column for the Fidelity Asset Manager
reflects performance since its inception in December 1988, the figure shown
for Strong Common Stock reflects performance since its inception in
December 1989, and the figure shown for Dreyfus S&P 500 Index Fund reflects
performance since its inception in November 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.
7
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NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
June 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class (AIMCon)
238,642 shares (cost $7,005,180) .......................................... $ 7,333,471
American Century: Twentieth Century Growth Fund (ACTCGro)
5,732,074 shares (cost $123,287,461) ...................................... 169,784,025
American Century: Twentieth Century Select Fund (ACTCSel)
55,197 shares (cost $2,135,244) ........................................... 2,816,683
American Century: Twentieth Century Ultra Fund (ACTCUltra)
12,299,538 shares (cost $336,898,720) ..................................... 416,339,368
The Bond Fund of AmericaSM, Inc. (BdFdAm)
1,114,525 shares (cost $15,416,007) ....................................... 15,558,765
Davis New York Venture Fund, Inc. - Class A (DNYVenFd)
17,581 shares (cost $406,770) ............................................. 433,713
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class (DeDecInc)
14,466 shares (cost $266,570) .............................................. 313,922
Dreyfus Cash Management - Class A (DryCsMgt)
246,198 shares (cost $246,198) ............................................ 246,198
Dreyfus S&P 500 Index Fund (Dry500Ix)
1,434,443 shares (cost $43,004,538) ....................................... 48,340,737
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
3,869,504 shares (cost $37,151,818) ....................................... 48,059,242
Evergreen Income and Growth Fund - Class Y (EvIncGro)
186,388 shares (cost $3,683,669) .......................................... 4,449,081
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
360,771 shares (cost $3,837,895) ........................................... 3,845,821
Fidelity Asset ManagerTM (FidAsMgr)
429,135 shares (cost $7,513,196) .......................................... 8,385,296
Fidelity Capital & Income Fund (FidCapInc)
137,526 shares (cost $1,244,299) .......................................... 1,424,772
Fidelity Contrafund (FidContr)
5,835,390 shares (cost $239,810,047) ...................................... 318,670,645
Fidelity Equity-Income Fund (FidEqInc)
5,612,055 shares (cost $223,630,504) ...................................... 321,009,541
Fidelity Growth & Income Portfolio (FidGrInc)
415,421 shares (cost $15,964,813) ......................................... 18,282,665
Fidelity Magellan(R) Fund (FidMgln)
2,423,475 shares (cost $197,832,203) ...................................... 265,685,533
</TABLE>
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<TABLE>
<S> <C>
The Growth Fund of America(R), Inc. (GroFdAm)
756,681 shares (cost $13,087,715) .......................................... 16,268,650
The Income Fund of America(R), Inc. (IncFdAm)
1,085,686 shares (cost $17,831,824) ........................................ 20,085,200
INVESCO Industrial Income Fund, Inc. (InvIndlnc)
1,652,905 shares (cost $22,429,222) ........................................ 26,743,997
Janus Fund (JanFund)
3,041,781 shares (cost $77,492,257) ........................................ 91,770,533
Janus Worldwide Fund (JanWrldwde)
20,105 shares (cost $936,732) .............................................. 947,553
MAS Funds - Fixed Income Portfolio (MASFIP)
308,206 shares (cost $3,705,080) ........................................... 3,741,626
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
2,086,822 shares (cost $26,116,770) ........................................ 34,599,507
MFS(R) High Income Fund - Class A (MFSHiInc)
1,037,001 shares (cost $5,873,603) ......................................... 5,827,947
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
577,883 shares (cost $6,464,108) ........................................... 8,905,171
NAAT - The Aggressive Portfolio (NAATAggr)
198,365 shares (cost $2,188,071) ........................................... 2,281,193
NAAT - The Conservative Portfolio (NAATCons)
20,456 shares (cost $214,263) .............................................. 217,650
NAAT - The Moderate Portfolio (NAATMod)
38,658 shares (cost $426,989) .............................................. 431,031
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
79,759 shares (cost $878,564) .............................................. 898,086
NAAT - The Moderately Conservative Portfolio (NAATModCon)
27,519 shares (cost $294,864) .............................................. 300,235
Nationwide(R) Bond Fund - Class D (NWBdFd)
10,822 shares (cost $99,772) ............................................... 104,436
Nationwide(R) Fund - Class D (NWFund)
4,431,652 shares (cost $106,295,371) ....................................... 137,159,629
Nationwide(R) Growth Fund - Class D (NWGroFd)
798,805 shares (cost $11,015,359) .......................................... 13,419,925
Nationwide(R) Money Market Fund (NWMyMkt)
69,125,756 shares (cost $69,125,756) ....................................... 69,125,756
Neuberger & Berman Guardian Fund (NBGuard)
61,612 shares (cost $1,791,272) ............................................ 1,792,900
Neuberger & Berman Manhattan Fund (NBManhFd)
11,388 shares (cost $134,784) .............................................. 145,203
Putnam Investors Fund - Class A (PutInvFd)
4,575,710 shares (cost $43,790,791) ........................................ 63,190,550
Putnam Voyager Fund - Class A (PutVoyFd)
8,127,194 shares (cost $136,434,320) ....................................... 180,830,070
</TABLE>
(Continued)
9
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<TABLE>
<S> <C>
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
897,320 shares (cost $28,019,175) .......................................... 32,124,059
Seligman Growth Fund, Inc. - Class A (SelGroFd)
456,290 shares (cost $2,468,436) ........................................... 3,340,040
T. Rowe Price International Funds, Inc. - International Stock Fund(R)(TRIntStk)
2,214,397 shares (cost $32,643,310) ........................................ 33,791,691
Templeton Foreign Fund - Class I (TemForFd)
7,320,216 shares (cost $74,610,437) ........................................ 74,739,401
American Century VP - American Century VP Balanced (ACVPBal)
1,249 shares (cost $9,329) ................................................. 10,295
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
8,596 shares (cost $86,044) ................................................ 79,942
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
474 shares (cost $11,507) .................................................. 14,008
Dreyfus Stock Index Fund (DryStkIx)
2,927 shares (cost $71,723) ................................................ 87,860
Fidelity VIP Fund II - Asset Manager Portfolio (FidVIPAM)
2,572 shares (cost $40,560) ................................................ 44,370
Fidelity VIP Fund - Equity-Income Portfolio (FidVIPEI)
7,959 shares (cost $169,920) ............................................... 200,335
Fidelity VIP Fund - Growth Portfolio (FidVIPGr)
4,499 shares (cost $138,505) ............................................... 172,392
Fidelity VIP Fund - High Income Portfolio (FidVIPHI)
4,173 shares (cost $51,036) ................................................ 52,708
Fidelity VIP - Overseas Portfolio (FidVIPOv)
8,813 shares (cost $158,101) ............................................... 181,730
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,471 shares (cost $16,364) ................................................ 16,915
Nationwide SAT - Money Market Fund (NSATMyMkt)
19,878 shares (cost $19,878) ............................................... 19,878
Nationwide SAT - Small Company Fund (NSATSmCo)
2,019,654 shares (cost $2,019,654) ......................................... 2,019,654
Nationwide SAT - Total Return Fund (NSATTotRe)
7,833 shares (cost $111,695) ............................................... 146,474
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
1,145 shares (cost $29,195) ................................................ 30,128
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
723 shares (cost $9,906) ................................................... 9,807
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
2,560 shares (cost $44,261) ................................................ 49,279
--------------
Total investments ....................................................... 2,476,897,292
Accounts receivable .............................................................. 74,063
--------------
Total assets ............................................................ 2,476,971,355
ACCOUNTS PAYABLE .................................................................... 943,852
--------------
CONTRACT OWNERS' EQUITY (NOTE 4) .................................................... $2,476,027,503
==============
</TABLE>
See accompanying notes to financial statements.
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10
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NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL AIMCON
---------------------------------- ----------------------------------
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 7,526,943 7,706,347 - -
Mortality and expense charges (note 2) ........ (5,586,625) (3,898,043) (19,060) (41,021)
Administration charge (note 2) ................ (3,905,628) (2,910,324) (7,515) (31,974)
--------------- --------------- --------------- ---------------
Net investment activity ..................... (1,965,310) 897,980 (26,575) (72,995)
Proceeds from mutual fund shares sold ......... 205,690,551 127,538,887 6,048,156 5,097,633
Cost of mutual fund shares sold ............... (164,731,807) (112,268,086) (5,556,896) (4,299,436)
--------------- --------------- --------------- ---------------
Realized gain (loss) on investments ......... 40,958,744 15,270,801 491,260 798,197
Change in unrealized gain (loss) on investments 283,448,052 184,132,014 551,636 415,452
--------------- --------------- --------------- ---------------
Net gain (loss) on investments .............. 324,406,796 199,402,815 1,042,896 1,213,649
--------------- --------------- --------------- ---------------
Reinvested capital gains ...................... 15,360,642 8,663,127 - -
--------------- --------------- --------------- ---------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 337,802,128 208,963,922 1,016,321 1,140,654
--------------- --------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 316,375,456 217,822,618 827,571 3,503,156
Redemptions ................................... (151,818,032) (88,285,940) (4,100,587) (3,016,246)
Annual contract maintenance charge (note 2) ... (1,817) (1,931) - -
Contingent deferred sales charges (note 2) .... (893) (10,104) - (372)
Adjustments to maintain reserves .............. (430,308) (100,245) 261 845
--------------- --------------- --------------- ---------------
Net equity transactions ................... 164,124,406 129,424,398 (3,272,755) 487,383
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 501,926,534 338,388,320 (2,256,434) 1,628,037
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,974,100,969 1,425,789,282 9,590,157 15,557,461
--------------- --------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,476,027,503 1,764,177,602 7,333,723 17,185,498
=============== =============== =============== ===============
<CAPTION>
AIMWEIN ACTCGRO
---------------------------------- ----------------------------------
1998 1997 1998 1997
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - - -
Mortality and expense charges (note 2) ........ - (5,307) (382,648) (293,167)
Administration charge (note 2) ................ - (4,776) (250,067) (205,164)
--------------- --------------- --------------- ---------------
Net investment activity ..................... - (10,083) (632,715) (498,331)
Proceeds from mutual fund shares sold ......... 407 463,435 10,107,707 11,271,665
Cost of mutual fund shares sold ............... (450) (404,516) (9,108,047) (11,860,026)
--------------- --------------- --------------- ---------------
Realized gain (loss) on investments ......... (43) 58,919 999,660 (588,361)
Change in unrealized gain (loss) on investments 46 224,345 31,137,289 19,673,323
--------------- --------------- --------------- ---------------
Net gain (loss) on investments .............. 3 283,264 32,136,949 19,084,962
--------------- --------------- --------------- ---------------
Reinvested capital gains ...................... - - - -
--------------- --------------- --------------- ---------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3 273,181 31,504,234 18,586,631
--------------- --------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. - 65,359 9,323,861 (312,767)
Redemptions ................................... - (308,173) (10,800,234) (6,954,783)
Annual contract maintenance charge (note 2) ... - - (5) (4)
Contingent deferred sales charges (note 2) .... - - - (367)
Adjustments to maintain reserves .............. (3) (358) 2,320 1,040
--------------- --------------- --------------- ---------------
Net equity transactions ................... (3) (243,172) (1,474,058) (7,266,881)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... - 30,009 30,030,176 11,319,750
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - 2,116,847 139,756,024 113,853,751
--------------- --------------- --------------- ---------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... - 2,146,856 169,786,200 125,173,501
=============== =============== =============== ===============
</TABLE>
11
<PAGE> 11
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ACTCINTLGR ACTCSEL
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - - -
Mortality and expense charges (note 2) ....... (2) - (6,428) (4,251)
Administration charge (note 2) ................ (2) - (2,681) (1,768)
------------ ------------ ------------ ------------
Net investment activity ..................... (4) - (9,109) (6,019)
Proceeds from mutual fund shares sold ......... 11,135 - 150,203 85,295
Cost of mutual fund shares sold ............... (10,717) - (101,159) (68,626)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 418 - 49,044 16,669
Change in unrealized gain (loss) on investments - - 416,051 315,852
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 418 - 465,095 332,521
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 414 - 455,986 326,502
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 10,713 - 133,540 99,406
Redemptions ................................... (11,133) - (67,723) (53,315)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 6 - 8 1
------------ ------------ ------------ ------------
Net equity transactions ................... (414) - 65,825 46,092
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... - - 521,811 372,594
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - 2,294,883 1,558,172
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ - - 2,816,694 1,930,766
============ ============ ============ ============
<CAPTION>
ACTCULTRA BDFDAM
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 497,854 411,668
Mortality and expense charges (note 2) ....... (927,444) (671,863) (35,213) (28,890)
Administration charge (note 2) ................ (660,386) (508,976) (26,128) (23,087)
------------ ------------ ------------ ------------
Net investment activity ..................... (1,587,830) (1,180,839) 436,513 359,691
Proceeds from mutual fund shares sold ......... 29,963,280 18,487,083 2,294,830 2,797,351
Cost of mutual fund shares sold ............... (20,103,204) (12,966,126) (2,256,243) (2,615,750)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 9,860,076 5,520,957 38,587 181,601
Change in unrealized gain (loss) on investments 69,635,146 36,383,589 (91,382) (131,209)
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 79,495,222 41,904,546 (52,795) 50,392
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - 68,681 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 77,907,392 40,723,707 452,399 410,083
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 32,834,006 26,777,345 3,248,462 371,695
Redemptions ................................... (29,064,187) (13,005,968) (605,349) (848,693)
Annual contract maintenance charge (note 2) ... (12) (24) (7) (8)
Contingent deferred sales charges (note 2) .... - (1,129) - -
Adjustments to maintain reserves .............. 10,033 (27,467) (193) (180)
------------ ------------ ------------ ------------
Net equity transactions ................... 3,779,840 13,742,757 2,642,913 (477,186)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 81,687,232 54,466,464 3,095,312 (67,103)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 334,663,456 245,403,535 12,478,178 11,554,576
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 416,350,688 299,869,999 15,573,490 11,487,473
============ ============ ============ ============
</TABLE>
12
<PAGE> 12
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DNYVENFD DEDECINC
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 2,250 - 3,637 3,796
Mortality and expense charges (note 2) ....... (1,110) (8,525) (758) (586)
Administration charge (note 2) ................ (888) (7,610) (646) (508)
----------- ----------- ----------- -----------
Net investment activity ..................... 252 (16,135) 2,233 2,702
Proceeds from mutual fund shares sold ......... 131,230 1,030,002 6,317 18,915
Cost of mutual fund shares sold ............... (132,417) (878,348) (4,796) (16,977)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... (1,187) 151,654 1,521 1,938
Change in unrealized gain (loss) on investments 42,873 394,157 20,744 30,950
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 41,686 545,811 22,265 32,888
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 6,545 - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 48,483 529,676 24,498 35,590
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. (16,032) 3,206,481 12,134 13,946
Redemptions ................................... (34,856) (1,321,499) (5,318) (19,529)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (9,942) 105 11 (6)
----------- ----------- ----------- -----------
Net equity transactions ................... (60,830) 1,885,087 6,827 (5,589)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (12,347) 2,414,763 31,325 30,001
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 446,013 2,215,046 282,605 223,128
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 433,666 4,629,809 313,930 253,129
=========== =========== =========== ===========
<CAPTION>
DRYCSMGT DRY500IX
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 6,609 28,154 - -
Mortality and expense charges (note 2) ....... (608) (2,648) (88,852) (1,421)
Administration charge (note 2) ................ (486) (2,291) (67,060) (1,090)
----------- ----------- ----------- -----------
Net investment activity ..................... 5,515 23,215 (155,912) (2,511)
Proceeds from mutual fund shares sold ......... 61,404 3,463,566 10,174,952 554,133
Cost of mutual fund shares sold ............... (61,404) (3,463,566) (10,066,030) (534,142)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... - - 108,922 19,991
Change in unrealized gain (loss) on investments - - 4,849,573 90,935
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. - - 4,958,495 110,926
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 5,515 23,215 4,802,583 108,415
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 15,645 193,830 25,694,684 3,248,776
Redemptions ................................... (59,292) (136,585) (1,541,596) (3,344)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 15 196 320,473 (606)
----------- ----------- ----------- -----------
Net equity transactions ................... (43,632) 57,441 24,473,561 3,244,826
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (38,117) 80,656 29,276,144 3,353,241
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 280,820 1,154,439 19,067,570 -
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 242,703 1,235,095 48,343,714 3,353,241
=========== =========== =========== ===========
</TABLE>
13
<PAGE> 13
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRY3DCEN EVINCGRO
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 101,246 102,820
Mortality and expense charges (note 2) ....... (104,916) (61,256) (11,542) (10,466)
Administration charge (note 2) ................ (70,916) (43,079) (8,049) (7,564)
------------ ------------ ------------ ------------
Net investment activity ..................... (175,832) (104,335) 81,655 84,790
Proceeds from mutual fund shares sold ......... 1,168,660 1,666,438 353,876 507,480
Cost of mutual fund shares sold ............... (853,180) (1,533,857) (279,444) (479,285)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 315,480 132,581 74,432 28,195
Change in unrealized gain (loss) on investments 6,592,300 3,766,256 (75,733) 292,883
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 6,907,780 3,898,837 (1,301) 321,078
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 6,731,948 3,794,502 80,354 405,868
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 6,334,936 6,535,242 (157,117) (208,503)
Redemptions ................................... (1,156,800) (1,456,877) (104,771) (193,293)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (626) (1,945) (26) 21
------------ ------------ ------------ ------------
Net equity transactions ................... 5,177,510 5,076,420 (261,914) (401,775)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 11,909,458 8,870,922 (181,560) 4,093
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 36,149,180 19,942,835 4,630,650 4,320,926
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 48,058,638 28,813,757 4,449,090 4,325,019
============ ============ ============ ============
<CAPTION>
FEDGNMA FEDUSGVT
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 10,016 22,306 84,168 59,974
Mortality and expense charges (note 2) ....... (768) (1,660) (7,774) (5,339)
Administration charge (note 2) ................ (691) (1,494) (6,323) (4,443)
------------ ------------ ------------ ------------
Net investment activity ..................... 8,557 19,152 70,071 50,192
Proceeds from mutual fund shares sold ......... 980,581 143,957 1,157,436 701,802
Cost of mutual fund shares sold ............... (966,648) (138,566) (1,134,193) (718,525)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 13,933 5,391 23,243 (16,723)
Change in unrealized gain (loss) on investments (13,073) (5,638) (18,548) 8,798
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 860 (247) 4,695 (7,925)
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 9,417 18,905 74,766 42,267
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. (43,942) 56,621 1,342,691 375,795
Redemptions ................................... (923,736) (135,281) (96,320) (237,142)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (304) (26) (60) (60)
------------ ------------ ------------ ------------
Net equity transactions ................... (967,982) (78,686) 1,246,311 138,593
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (958,565) (59,781) 1,321,077 180,860
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 958,565 709,278 2,524,630 2,021,665
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... - 649,497 3,845,707 2,202,525
============ ============ ============ ============
</TABLE>
14
<PAGE> 14
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDASMGR FIDCAPINC
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 118,730 89,019 62,143 54,062
Mortality and expense charges (note 2) ....... (19,294) (13,402) (3,539) (3,376)
Administration charge (note 2) ................ (14,967) (10,806) (2,226) (2,190)
------------ ------------ ------------ ------------
Net investment activity ..................... 84,469 64,811 56,378 48,496
Proceeds from mutual fund shares sold ......... 515,673 414,467 60,274 105,044
Cost of mutual fund shares sold ............... (413,958) (341,759) (41,671) (77,996)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 101,715 72,708 18,603 27,048
Change in unrealized gain (loss) on investments 363,311 425,941 29,482 (3,894)
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 465,026 498,649 48,085 23,154
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 549,495 563,460 104,463 71,650
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,485,528 756,608 (23,961) (11,896)
Redemptions ................................... (291,175) (276,622) (30,049) (85,358)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (1,560) (14) (10) (33)
------------ ------------ ------------ ------------
Net equity transactions ................... 1,192,793 479,972 (54,020) (97,287)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,742,288 1,043,432 50,443 (25,637)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 6,642,815 5,023,827 1,374,317 1,367,071
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 8,385,103 6,067,259 1,424,760 1,341,434
============ ============ ============ ============
<CAPTION>
FIDCONTR FIDEQINC
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 2,510,694 2,519,112
Mortality and expense charges (note 2) ....... (710,707) (476,998) (779,159) (539,515)
Administration charge (note 2) ................ (548,614) (389,167) (534,367) (389,307)
------------ ------------ ------------ ------------
Net investment activity ..................... (1,259,321) (866,165) 1,197,168 1,590,290
Proceeds from mutual fund shares sold ......... 867,233 2,726,923 27,185,172 4,974,081
Cost of mutual fund shares sold ............... (517,520) (2,063,676) (12,969,708) (2,826,840)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 349,713 663,247 14,215,464 2,147,241
Change in unrealized gain (loss) on investments 45,109,593 17,520,586 12,964,234 28,377,028
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 45,459,306 18,183,833 27,179,698 30,524,269
------------ ------------ ------------ ------------
Reinvested capital gains ...................... 381,649 3,018,084 3,314,061 2,314,658
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 44,581,634 20,335,752 31,690,927 34,429,217
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 32,985,669 38,392,212 29,214,515 30,451,360
Redemptions ................................... (8,685,653) (8,383,935) (34,229,076) (10,172,818)
Annual contract maintenance charge (note 2) ... (12) - - -
Contingent deferred sales charges (note 2) .... - - - (797)
Adjustments to maintain reserves .............. (789,638) (13,704) 1,292 772
------------ ------------ ------------ ------------
Net equity transactions ................... 23,510,366 29,994,573 (5,013,269) 20,278,517
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 68,092,000 50,330,325 26,677,658 54,707,734
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 250,585,641 168,983,800 294,333,089 193,502,053
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 318,677,641 219,314,125 321,010,747 248,209,787
============ ============ ============ ============
</TABLE>
15
<PAGE> 15
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDGRINC FIDMGIN
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 74,013 95,150 464,522 1,635,701
Mortality and expense charges (note 2) ....... (36,136) (33,379) (617,161) (463,415)
Administration charge (note 2) ................ (10,841) (24,066) (438,624) (346,820)
------------ ------------ ------------ ------------
Net investment activity ..................... 27,036 37,705 (591,263) 825,466
Proceeds from mutual fund shares sold ......... 650,876 2,277,778 18,163,752 6,429,730
Cost of mutual fund shares sold ............... (479,396) (1,641,610) (12,601,990) (5,803,273)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 171,480 636,168 5,561,762 626,457
Change in unrealized gain (loss) on investments 1,791,276 1,485,966 28,552,742 22,580,629
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 1,962,756 2,122,134 34,114,504 23,207,086
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - 6,085,232 3,184,164
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,989,792 2,159,839 39,608,473 27,216,716
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 7,866,356 6,131,220 20,253,439 9,659,880
Redemptions ................................... (475,965) (2,671,546) (23,326,653) (7,275,908)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - (1,160)
Adjustments to maintain reserves .............. 112 928 162,647 (998)
------------ ------------ ------------ ------------
Net equity transactions ................... 7,390,503 3,460,602 (2,910,567) 2,381,814
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 9,380,295 5,620,441 36,697,906 29,598,530
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 8,902,461 10,558,554 228,989,269 177,046,208
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 18,282,756 16,178,995 265,687,175 206,644,738
============ ============ ============ ============
<CAPTION>
GROFDAM INCFDAM
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 427,587 383,103
Mortality and expense charges (note 2) ....... (37,914) (25,670) (49,040) (40,337)
Administration charge (note 2) ................ (30,048) (21,134) (39,586) (34,130)
------------ ------------ ------------ ------------
Net investment activity ..................... (67,962) (46,804) 338,961 308,636
Proceeds from mutual fund shares sold ......... 1,018,613 1,043,143 911,605 953,714
Cost of mutual fund shares sold ............... (792,798) (844,290) (669,732) (818,928)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 225,815 198,853 241,873 134,786
Change in unrealized gain (loss) on investments 1,802,969 1,012,483 529,409 1,029,925
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 2,028,784 1,211,336 771,282 1,164,711
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,960,822 1,164,532 1,110,243 1,473,347
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,228,611 744,068 1,190,362 1,681,856
Redemptions ................................... (513,142) (596,949) (570,814) (969,906)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 26 (247) 25 240
------------ ------------ ------------ ------------
Net equity transactions ................... 715,495 146,872 619,573 712,190
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,676,317 1,311,404 1,729,816 2,185,537
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 13,592,368 9,779,679 18,355,405 15,220,788
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 16,268,685 11,091,083 20,085,221 17,406,325
============ ============ ============ ============
</TABLE>
16
<PAGE> 16
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
INVINDINC JANFUND
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 297,257 227,902 255,272 -
Mortality and expense charges (note 2) ....... (63,462) (45,491) (197,051) (112,318)
Administration charge (note 2) ................ (51,976) (38,784) (156,336) (92,182)
------------ ------------ ------------ ------------
Net investment activity ..................... 181,819 143,627 (98,115) (204,500)
Proceeds from mutual fund shares sold ......... 569,541 334,674 954,571 963,253
Cost of mutual fund shares sold ............... (410,295) (270,121) (662,510) (736,224)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 159,246 64,553 292,061 227,029
Change in unrealized gain (loss) on investments 1,850,449 2,324,848 14,437,511 5,389,127
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 2,009,695 2,389,401 14,729,572 5,616,156
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,191,514 2,533,028 14,631,457 5,411,656
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,402,097 2,566,634 13,894,699 12,615,917
Redemptions ................................... (739,703) (601,858) (2,481,304) (2,566,045)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 15 63 245 657
------------ ------------ ------------ ------------
Net equity transactions ................... 1,662,409 1,964,839 11,413,640 10,050,529
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,853,923 4,497,867 26,045,097 15,462,185
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 22,890,103 16,322,252 65,725,920 37,346,871
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 26,744,026 20,820,119 91,771,017 52,809,056
============ ============ ============ ============
<CAPTION>
JAN20FD JANWRLDWDE
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 213 -
Mortality and expense charges (note 2) ....... (96) (639) (150) -
Administration charge (note 2) ................ (86) (575) (135) -
------------ ------------ ------------ ------------
Net investment activity ..................... (182) (1,214) (72) -
Proceeds from mutual fund shares sold ......... 234,631 571,046 162,752 -
Cost of mutual fund shares sold ............... (218,097) (609,105) (153,231) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 16,534 (38,059) 9,521 -
Change in unrealized gain (loss) on investments 1,871 35,516 10,822 -
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 18,405 (2,543) 20,343 -
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 18,223 (3,757) 20,271 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 178,819 323,352 1,050,183 -
Redemptions ................................... (213,496) (569,390) (122,902) -
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (1) 2 8 -
------------ ------------ ------------ ------------
Net equity transactions ................... (34,678) (246,036) 927,289 -
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (16,455) (249,793) 947,560 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 16,455 249,793 - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... - - 947,560 -
============ ============ ============ ============
</TABLE>
17
<PAGE> 17
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MASFIP MFSGROPP
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 51,876 27,516 - -
Mortality and expense charges (note 2) ....... (8,446) (4,052) (78,623) (63,398)
Administration charge (note 2) ................ (6,549) (3,329) (36,013) (31,482)
----------- ----------- ----------- -----------
Net investment activity ..................... 36,881 20,135 (114,636) (94,880)
Proceeds from mutual fund shares sold ......... 556,513 501,360 2,320,375 3,308,423
Cost of mutual fund shares sold ............... (545,507) (496,768) (1,554,831) (2,631,119)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 11,006 4,592 765,544 677,304
Change in unrealized gain (loss) on investments 43,841 30,737 4,690,002 2,849,698
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 54,847 35,329 5,455,546 3,527,002
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - 353,021 -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 91,728 55,464 5,693,931 3,432,122
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,121,922 802,531 2,422,590 48,059
Redemptions ................................... (131,299) (168,950) (1,186,158) (2,553,849)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (28) 1,655 (158,209) (21,857)
----------- ----------- ----------- -----------
Net equity transactions ................... 990,595 635,236 1,078,223 (2,527,647)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,082,323 690,700 6,772,154 904,475
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,659,273 1,262,922 27,826,901 25,459,101
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 3,741,596 1,953,622 34,599,055 26,363,576
=========== =========== =========== ===========
<CAPTION>
MFSHIINC MFSGRSTK
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 209,118 156,868 - -
Mortality and expense charges (note 2) ....... (12,736) (8,935) (20,416) (13,327)
Administration charge (note 2) ................ (4,846) (3,956) (10,719) (7,014)
----------- ----------- ----------- -----------
Net investment activity ..................... 191,536 143,977 (31,135) (20,341)
Proceeds from mutual fund shares sold ......... 5,517,399 1,171,543 342,060 392,201
Cost of mutual fund shares sold ............... (5,284,261) (1,168,385) (277,128) (433,770)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 233,138 3,158 64,932 (41,569)
Change in unrealized gain (loss) on investments (172,532) 33,993 1,668,231 1,301,165
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 60,606 37,151 1,733,163 1,259,596
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 252,142 181,128 1,702,028 1,239,255
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,010,753 124,836 289,176 48,977
Redemptions ................................... (357,863) (563,601) (290,837) (286,788)
Annual contract maintenance charge (note 2) ... - - (312) (309)
Contingent deferred sales charges (note 2) .... - - (44) (457)
Adjustments to maintain reserves .............. 2,552 52 66 (76)
----------- ----------- ----------- -----------
Net equity transactions ................... 1,655,442 (438,713) (1,951) (238,653)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,907,584 (257,585) 1,700,077 1,000,602
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 3,923,071 3,747,401 7,205,011 5,014,974
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 5,830,655 3,489,816 8,905,088 6,015,576
=========== =========== =========== ===========
</TABLE>
18
<PAGE> 18
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NAATAGGR NAATCONS
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 507 - 1,190 -
Mortality and expense charges (note 2) ....... (2,771) - (445) -
Administration charge (note 2) ................ (2,400) - (308) -
----------- ----------- ----------- -----------
Net investment activity ..................... (4,664) - 437 -
Proceeds from mutual fund shares sold ......... 112,096 - 405,364 -
Cost of mutual fund shares sold ............... (99,890) - (400,276) -
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 12,206 - 5,088 -
Change in unrealized gain (loss) on investments 93,123 - 3,387 -
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 105,329 - 8,475 -
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 100,665 - 8,912 -
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,228,889 - 262,680 -
Redemptions ................................... (48,355) - (53,939) -
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 40 - (3) -
----------- ----------- ----------- -----------
Net equity transactions ................... 2,180,574 - 208,738 -
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,281,239 - 217,650 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - - -
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,281,239 - 217,650 -
=========== =========== =========== ===========
<CAPTION>
NAATMOD NAATMODAGG
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 210 - 914 -
Mortality and expense charges (note 2) ....... (427) - (1,128) -
Administration charge (note 2) ................ (338) - (916) -
----------- ----------- ----------- -----------
Net investment activity ..................... (555) - (1,130) -
Proceeds from mutual fund shares sold ......... 117,579 - 120,024 -
Cost of mutual fund shares sold ............... (116,248) - (113,081) -
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 1,331 - 6,943 -
Change in unrealized gain (loss) on investments 4,042 - 19,522 -
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 5,373 - 26,465 -
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,818 - 25,335 -
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 496,817 - 922,978 -
Redemptions ................................... (70,594) - (50,226) -
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (13) - (4) -
----------- ----------- ----------- -----------
Net equity transactions ................... 426,210 - 872,748 -
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 431,028 - 898,083 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - - -
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 431,028 - 898,083 -
=========== =========== =========== ===========
</TABLE>
19
<PAGE> 19
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NAATMODCON NWBDFD
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 390 - 3,170 4,574
Mortality and expense charges (note 2) ....... (286) - (263) (348)
Administration charge (note 2) ................ (202) - (79) (155)
------------ ------------ ------------ ------------
Net investment activity ..................... (98) - 2,828 4,071
Proceeds from mutual fund shares sold ......... 24,897 - 18,207 48,235
Cost of mutual fund shares sold ............... (24,501) - (17,677) (51,364)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 396 - 530 (3,129)
Change in unrealized gain (loss) on investments 5,370 - 784 1,021
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 5,766 - 1,314 (2,108)
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 5,668 - 4,142 1,963
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 295,005 - (11,441) 5,983
Redemptions ................................... (439) - - (43,333)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 1 - (4) (12)
------------ ------------ ------------ ------------
Net equity transactions ................... 294,567 - (11,445) (37,362)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 300,235 - (7,303) (35,399)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - 111,736 159,754
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 300,235 - 104,433 124,355
============ ============ ============ ============
<CAPTION>
NWFUND NWGROFD
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 592,990 308,964 14,337 39,535
Mortality and expense charges (note 2) ....... (270,988) (104,218) (29,905) (19,771)
Administration charge (note 2) ................ (184,642) (76,374) (18,093) (13,398)
------------ ------------ ------------ ------------
Net investment activity ..................... 137,360 128,372 (33,661) 6,366
Proceeds from mutual fund shares sold ......... 2,093,847 2,198,366 1,227,062 564,487
Cost of mutual fund shares sold ............... (1,138,329) (1,632,961) (823,993) (430,683)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 955,518 565,405 403,069 133,804
Change in unrealized gain (loss) on investments 14,351,965 8,197,017 1,118,158 1,208,644
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 15,307,483 8,762,422 1,521,227 1,342,448
------------ ------------ ------------ ------------
Reinvested capital gains ...................... 4,650,572 - 442,353 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 20,095,415 8,890,794 1,929,919 1,348,814
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 46,643,329 11,434,240 1,929,089 295,092
Redemptions ................................... (4,904,693) (2,492,931) (410,018) (297,558)
Annual contract maintenance charge (note 2) ... (673) (694) - -
Contingent deferred sales charges (note 2) .... (808) (759) - -
Adjustments to maintain reserves .............. (339) (22,088) 15 (72)
------------ ------------ ------------ ------------
Net equity transactions ................... 41,736,816 8,917,768 1,519,086 (2,538)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 61,832,231 17,808,562 3,449,005 1,346,276
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 75,327,367 34,591,092 9,970,932 7,532,918
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 137,159,598 52,399,654 13,419,937 8,879,194
============ ============ ============ ============
</TABLE>
20
<PAGE> 20
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NWMYMKT NBGUARD
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 1,582,572 1,478,230 3,804 1,334
Mortality and expense charges (note 2) ....... (162,740) (149,678) (3,640) (1,077)
Administration charge (note 2) ................ (105,014) (105,795) (1,092) (323)
------------ ------------ ------------ ------------
Net investment activity ..................... 1,314,818 1,222,757 (928) (66)
Proceeds from mutual fund shares sold ......... 41,882,100 34,314,179 384,006 210,004
Cost of mutual fund shares sold ............... (41,882,100) (34,314,179) (371,767) (197,049)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... - - 12,239 12,955
Change in unrealized gain (loss) on investments - - 120,094 30,269
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. - - 132,333 43,224
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,314,818 1,222,757 131,405 43,158
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 16,164,635 8,504,848 751,503 499,509
Redemptions ................................... (5,918,221) (3,563,577) (74,347) (52,205)
Annual contract maintenance charge (note 2) ... (14) (15) - -
Contingent deferred sales charges (note 2) .... - (2,217) - -
Adjustments to maintain reserves .............. 19,901 980 (23) (14)
------------ ------------ ------------ ------------
Net equity transactions ................... 10,266,301 4,940,019 677,133 447,290
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 11,581,119 6,162,776 808,538 490,448
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 56,626,599 58,928,944 984,329 149,252
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 68,207,718 65,091,720 1,792,867 639,700
============ ============ ============ ============
<CAPTION>
NBGUARDTR NBMANHFD
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - - -
Mortality and expense charges (note 2) ....... (28) - (332) (506)
Administration charge (note 2) ................ (25) - (299) (455)
------------ ------------ ------------ ------------
Net investment activity ..................... (53) - (631) (961)
Proceeds from mutual fund shares sold ......... 68,479 - 1,936 221,879
Cost of mutual fund shares sold ............... (63,557) - (1,928) (232,008)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 4,922 - 8 (10,129)
Change in unrealized gain (loss) on investments - - 19,776 35,360
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 4,922 - 19,784 25,231
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,869 - 19,153 24,270
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 60,781 - 3,017 (43,085)
Redemptions ................................... (65,651) - (1,799) (168,826)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 1 - (1) (10)
------------ ------------ ------------ ------------
Net equity transactions ................... (4,869) - 1,217 (211,921)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... - - 20,370 (187,651)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - 124,816 294,879
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... - - 145,186 107,228
============ ============ ============ ============
</TABLE>
21
<PAGE> 21
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBPARTFD PUTINVFD
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - - -
Mortality and expense charges (note 2) ....... (1,836) (749) (135,430) (88,461)
Administration charge (note 2) ................ (1,652) (674) (59,678) (43,111)
------------ ------------ ------------ ------------
Net investment activity ..................... (3,488) (1,423) (195,108) (131,572)
Proceeds from mutual fund shares sold ......... 2,754,448 87,348 3,104,299 3,615,046
Cost of mutual fund shares sold ............... (2,803,651) (77,745) (2,135,394) (3,104,274)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... (49,203) 9,603 968,905 510,772
Change in unrealized gain (loss) on investments 210,691 64,671 10,120,730 5,560,504
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 161,488 74,274 11,089,635 6,071,276
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 158,000 72,851 10,894,527 5,939,704
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 609,186 1,214,154 8,738,854 1,959,423
Redemptions ................................... (2,766,371) (97,619) (1,427,479) (3,521,025)
Annual contract maintenance charge (note 2) ... - - (568) (616)
Contingent deferred sales charges (note 2) .... - - (41) (2,787)
Adjustments to maintain reserves .............. 41 (54) (165) (748)
------------ ------------ ------------ ------------
Net equity transactions ................... (2,157,144) 1,116,481 7,310,601 (1,565,753)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... (1,999,144) 1,189,332 18,205,128 4,373,951
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 1,999,144 - 44,983,644 33,758,690
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ - 1,189,332 63,188,772 38,132,641
============ ============ ============ ============
<CAPTION>
PUTVOYFD SEI500IX
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 135,985 46,532
Mortality and expense charges (note 2) ....... (399,579) (238,656) (62,499) (18,256)
Administration charge (note 2) ................ (305,373) (190,629) (20,033) (8,955)
------------ ------------ ------------ ------------
Net investment activity ..................... (704,952) (429,285) 53,453 19,321
Proceeds from mutual fund shares sold ......... 985,637 2,779,322 2,483,805 2,105,555
Cost of mutual fund shares sold ............... (582,921) (1,999,201) (1,788,257) (1,740,147)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ......... 402,716 780,121 695,548 365,408
Change in unrealized gain (loss) on investments 23,976,415 10,026,052 2,995,302 1,011,782
------------ ------------ ------------ ------------
Net gain (loss) on investments .............. 24,379,131 10,806,173 3,690,850 1,377,190
------------ ------------ ------------ ------------
Reinvested capital gains ...................... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 23,674,179 10,376,888 3,744,303 1,396,511
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 24,188,842 15,433,014 14,694,065 7,352,360
Redemptions ................................... (4,912,419) (5,035,438) (1,572,380) (1,381,164)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 6,352 (5,408) (688) 483
------------ ------------ ------------ ------------
Net equity transactions ................... 19,282,775 10,392,168 13,120,997 5,971,679
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 42,956,954 20,769,056 16,865,300 7,368,190
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 137,879,063 88,557,114 15,258,034 3,911,822
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 180,836,017 109,326,170 32,123,334 11,280,012
============ ============ ============ ============
</TABLE>
22
<PAGE> 22
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
SELGROFD STCOMSTK
-------------------------- -------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - - 700
Mortality and expense charges (note 2) ....... (7,873) (6,655) - (13,110)
Administration charge (note 2) ................ (4,502) (3,892) - (11,799)
----------- ----------- ----------- -----------
Net investment activity ..................... (12,375) (10,547) - (24,209)
Proceeds from mutual fund shares sold ......... 150,694 279,036 - 189,774
Cost of mutual fund shares sold ............... (114,755) (264,669) - (163,480)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 35,939 14,367 - 26,294
Change in unrealized gain (loss) on investments 539,689 304,901 - 613,728
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 575,628 319,268 - 640,022
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - 121,492
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 563,253 308,721 - 737,305
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. (13,236) (733) - 1,979,606
Redemptions ................................... (63,350) (158,602) - (322,600)
Annual contract maintenance charge (note 2) ... (190) (217) - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (14) (37) - 79
----------- ----------- ----------- -----------
Net equity transactions ................... (76,790) (159,589) - 1,657,085
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 486,463 149,132 - 2,394,390
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 2,853,544 2,650,076 - 4,183,923
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 3,340,007 2,799,208 - 6,578,313
=========== =========== =========== ===========
<CAPTION>
TRINTSTK TEMFORFD
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - - -
Mortality and expense charges (note 2) ....... (80,616) (82,701) (199,622) (189,124)
Administration charge (note 2) ................ (51,954) (54,569) (156,942) (157,757)
----------- ----------- ----------- -----------
Net investment activity ..................... (132,570) (137,270) (356,564) (346,881)
Proceeds from mutual fund shares sold ......... 14,056,952 5,688,837 12,321,566 2,411,751
Cost of mutual fund shares sold ............... (12,761,020) (4,856,344) (10,585,319) (2,104,544)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 1,295,932 832,493 1,736,247 307,207
Change in unrealized gain (loss) on investments 2,706,941 3,076,052 447,589 8,016,450
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 4,002,873 3,908,545 2,183,836 8,323,657
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,870,303 3,771,275 1,827,272 7,976,776
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,079,121 4,784,593 (2,030,825) 15,801,336
Redemptions ................................... (1,371,744) (2,219,970) (5,776,034) (3,209,779)
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - (59)
Adjustments to maintain reserves .............. 5,132 (11,728) (85) (446)
----------- ----------- ----------- -----------
Net equity transactions ................... (287,491) 2,552,895 (7,806,944) 12,591,052
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 3,582,812 6,324,170 (5,979,672) 20,567,828
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 30,214,234 31,295,943 80,718,997 66,740,239
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 33,797,046 37,620,113 74,739,325 87,308,067
=========== =========== =========== ===========
</TABLE>
23
<PAGE> 23
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TEMGISMCO ACVPBAL
----------------------- ------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 135 51
Mortality and expense charges (note 2) ....... - (2,471) (20) (12)
Administration charge (note 2) ................ - (2,224) (18) (10)
---------- ---------- ---------- ----------
Net investment activity ..................... - (4,695) 97 29
Proceeds from mutual fund shares sold ......... - 339,972 - -
Cost of mutual fund shares sold ............... - (329,821) - -
---------- ---------- ---------- ----------
Realized gain (loss) on investments ......... - 10,151 - -
Change in unrealized gain (loss) on investments - 92,036 155 170
---------- ---------- ---------- ----------
Net gain (loss) on investments .............. - 102,187 155 170
---------- ---------- ---------- ----------
Reinvested capital gains ...................... - - 835 203
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ - 97,492 1,087 402
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. - 223,062 2,366 1,002
Redemptions ................................... - (261,029) - -
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. - (169) - -
---------- ---------- ---------- ----------
Net equity transactions ................... - (38,136) 2,366 1,002
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... - 59,356 3,453 1,404
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - 945,366 6,841 4,106
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ - 1,004,722 10,294 5,510
========== ========== ========== ==========
<CAPTION>
ACVPCAPAP DRYSRGRO
------------------------ ------------------------
1998 1997 1998 1997
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - - -
Mortality and expense charges (note 2) ....... (193) (212) (28) (4)
Administration charge (note 2) ................ (174) (191) (26) (3)
---------- ---------- ---------- ----------
Net investment activity ..................... (367) (403) (54) (7)
Proceeds from mutual fund shares sold ......... 11,964 644 - -
Cost of mutual fund shares sold ............... (14,347) (608) - -
---------- ---------- ---------- ----------
Realized gain (loss) on investments ......... (2,383) 36 - -
Change in unrealized gain (loss) on investments (1,287) (4,463) 1,894 393
---------- ---------- ---------- ----------
Net gain (loss) on investments .............. (3,670) (4,427) 1,894 393
---------- ---------- ---------- ----------
Reinvested capital gains ...................... 3,694 1,834 - -
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ (343) (2,996) 1,840 386
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 1,698 13,418 3,254 3,876
Redemptions ................................... - (327) - -
Annual contract maintenance charge (note 2) ... (1) (12) - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 8 - - -
---------- ---------- ---------- ----------
Net equity transactions ................... 1,705 13,079 3,254 3,876
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,362 10,083 5,094 4,262
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 78,567 84,604 8,913 -
---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 79,929 94,687 14,007 4,262
========== ========== ========== ==========
</TABLE>
24
<PAGE> 24
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRYSTKIX FIDVIPAM FIDVIPEI
-------------------- -------------------- --------------------
1998 1997 1998 1997 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 461 271 1,218 832 2,576 1,638
Mortality and expense charges (note 2) ....... (159) (80) (101) (66) (479) (273)
Administration charge (note 2) ................ (144) (72) (91) (59) (432) (246)
-------- -------- -------- -------- -------- --------
Net investment activity ..................... 158 119 1,026 707 1,665 1,119
Proceeds from mutual fund shares sold ......... 6,154 - 1,506 - 27,600 361
Cost of mutual fund shares sold ............... (2,902) - (1,315) - (18,091) (266)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on investments ......... 3,252 - 191 - 9,509 95
Change in unrealized gain (loss) on investments 5,151 5,793 (1,483) (28) (1,311) 7,317
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments .............. 8,403 5,793 (1,292) (28) 8,198 7,412
-------- -------- -------- -------- -------- --------
Reinvested capital gains ...................... 131 - 3,653 2,087 9,167 8,234
-------- -------- -------- -------- -------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 8,692 5,912 3,387 2,766 19,030 16,765
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 33,272 4,563 4,720 4,719 13,731 24,415
Redemptions ................................... - - (1,500) - (1,379) -
Annual contract maintenance charge (note 2) ... - - - - - -
Contingent deferred sales charges (note 2) .... - - - - - -
Adjustments to maintain reserves .............. 42 - (2) (1) 15 1
-------- -------- -------- -------- -------- --------
Net equity transactions ................... 33,314 4,563 3,218 4,718 12,367 24,416
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 42,006 10,475 6,605 7,484 31,397 41,181
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 45,887 27,259 37,760 23,167 168,954 91,971
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 87,893 37,734 44,365 30,651 200,351 133,152
======== ======== ======== ======== ======== ========
<CAPTION>
FIDVIPGR
---------------------
1998 1997
-------- --------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 694 565
Mortality and expense charges (note 2) ....... (375) (230)
Administration charge (note 2) ................ (338) (207)
-------- --------
Net investment activity ..................... (19) 128
Proceeds from mutual fund shares sold ......... 4,497 1,823
Cost of mutual fund shares sold ............... (2,781) (1,284)
-------- --------
Realized gain (loss) on investments ......... 1,716 539
Change in unrealized gain (loss) on investments 5,853 8,790
-------- --------
Net gain (loss) on investments .............. 7,569 9,329
-------- --------
Reinvested capital gains ...................... 18,160 2,531
-------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 25,710 11,988
-------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 17,428 15,619
Redemptions ................................... (4,000) -
Annual contract maintenance charge (note 2) ... - -
Contingent deferred sales charges (note 2) .... - -
Adjustments to maintain reserves .............. (2) 2
-------- --------
Net equity transactions ................... 13,426 15,621
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 39,136 27,609
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 133,237 80,978
-------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 172,373 108,587
======== ========
</TABLE>
25
<PAGE> 25
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPHI FIDVIPOV NSATGVTBD
-------------------- -------------------- --------------------
1998 1997 1998 1997 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 3,277 1,817 2,978 1,845 462 401
Mortality and expense charges (note 2) ....... (123) (72) (426) (291) (39) (33)
Administration charge (note 2) ................ (111) (65) (383) (262) (35) (30)
-------- -------- -------- -------- -------- --------
Net investment activity ..................... 3,043 1,680 2,169 1,292 388 338
Proceeds from mutual fund shares sold ......... - - 12,920 824 98 2,513
Cost of mutual fund shares sold ............... - - (9,961) (706) (91) (2,354)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on investments ......... - - 2,959 118 7 159
Change in unrealized gain (loss) on investments (3,132) 201 9,656 9,637 151 (164)
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments .............. (3,132) 201 12,615 9,755 158 (5)
-------- -------- -------- -------- -------- --------
Reinvested capital gains ...................... 2,082 225 8,777 7,326 - -
-------- -------- -------- -------- -------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,993 2,106 23,561 18,373 546 333
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 5,279 8,515 (1,446) 20,555 1,788 1,788
Redemptions ................................... - - - (443) (188) (2,506)
Annual contract maintenance charge (note 2) ... - - - - (12) (27)
Contingent deferred sales charges (note 2) .... - - - - - -
Adjustments to maintain reserves .............. (1) - (23) 2 (2) (1)
-------- -------- -------- -------- -------- --------
Net equity transactions ................... 5,278 8,515 (1,469) 20,114 1,586 (746)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 7,271 10,621 22,092 38,487 2,132 (413)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 45,432 24,013 159,596 102,297 14,781 12,618
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 52,703 34,634 181,688 140,784 16,913 12,205
======== ======== ======== ======== ======== ========
<CAPTION>
NSATMYMKT
--------------------
1998 1997
-------- --------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 417 938
Mortality and expense charges (note 2) ....... (41) (92)
Administration charge (note 2) ................ (36) (83)
-------- --------
Net investment activity ..................... 340 763
Proceeds from mutual fund shares sold ......... 1,505 22,774
Cost of mutual fund shares sold ............... (1,505) (22,774)
-------- --------
Realized gain (loss) on investments ......... - -
Change in unrealized gain (loss) on investments - -
-------- --------
Net gain (loss) on investments .............. - -
-------- --------
Reinvested capital gains ...................... - -
-------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 340 763
-------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 11,183 4,290
Redemptions ................................... - (22,757)
Annual contract maintenance charge (note 2) ... - (5)
Contingent deferred sales charges (note 2) .... - -
Adjustments to maintain reserves .............. 5 (4)
-------- --------
Net equity transactions ................... 11,188 (18,476)
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 11,528 (17,713)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 8,353 36,420
-------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 19,881 18,707
======== ========
</TABLE>
26
<PAGE> 26
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSMCO NSATTOTRE
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ - - 755 481
Mortality and expense charges (note 2) ....... (2,629) - (347) (133)
Administration charge (note 2) ................ (2,032) - (312) (120)
----------- ----------- ----------- -----------
Net investment activity ..................... (4,661) - 96 228
Proceeds from mutual fund shares sold ......... 611,967 - 6,141 22
Cost of mutual fund shares sold ............... (575,974) - (3,356) (15)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 35,993 - 2,785 7
Change in unrealized gain (loss) on investments (29,947) - 15,651 9,277
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. 6,046 - 18,436 9,284
----------- ----------- ----------- -----------
Reinvested capital gains ...................... - - - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,385 - 18,532 9,512
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 2,064,675 - 4,807 6,500
Redemptions ................................... (46,403) - (6,139) -
Annual contract maintenance charge (note 2) ... - - (11) -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (19) - 1 1
----------- ----------- ----------- -----------
Net equity transactions ................... 2,018,253 - (1,342) 6,501
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 2,019,638 - 17,190 16,013
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... - - 129,271 46,482
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 2,019,638 - 146,461 62,495
=========== =========== =========== ===========
<CAPTION>
NBAMTGRO NBAMTLMAT
-------------------------- --------------------------
1998 1997 1998 1997
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... - - 554 441
Mortality and expense charges (note 2) ....... (69) (49) (23) (20)
Administration charge (note 2) ................ (62) (44) (20) (18)
----------- ----------- ----------- -----------
Net investment activity ..................... (131) (93) 511 403
Proceeds from mutual fund shares sold ......... 6,816 - - -
Cost of mutual fund shares sold ............... (6,764) - - -
----------- ----------- ----------- -----------
Realized gain (loss) on investments ......... 52 - - -
Change in unrealized gain (loss) on investments (3,297) 1,575 (332) (202)
----------- ----------- ----------- -----------
Net gain (loss) on investments .............. (3,245) 1,575 (332) (202)
----------- ----------- ----------- -----------
Reinvested capital gains ...................... 7,561 1,560 - -
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 4,185 3,042 179 201
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 4,912 2,985 1,187 2,325
Redemptions ................................... (7,208) - - -
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. (1) - - (1)
----------- ----------- ----------- -----------
Net equity transactions ................... (2,297) 2,985 1,187 2,324
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 1,888 6,027 1,366 2,525
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 28,237 16,877 8,440 6,755
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... 30,125 22,904 9,806 9,280
=========== =========== =========== ===========
</TABLE>
27
<PAGE> 27
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTPART WPEMGRO
-------------------- --------------------
1998 1997 1998 1997
-------- -------- -------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 142 47 - -
Mortality and expense charges (note 2) ....... (102) (43) (10) -
Administration charge (note 2) ................ (92) (38) (9) -
-------- -------- -------- --------
Net investment activity ..................... (52) (34) (19) -
Proceeds from mutual fund shares sold ......... 1,403 - 43,768 -
Cost of mutual fund shares sold ............... (647) - (41,948) -
-------- -------- -------- --------
Realized gain (loss) on investments ......... 756 - 1,820 -
Change in unrealized gain (loss) on investments (3,371) 1,790 (10) -
-------- -------- -------- --------
Net gain (loss) on investments .............. (2,615) 1,790 1,810 -
-------- -------- -------- --------
Reinvested capital gains ...................... 4,468 729 - -
-------- -------- -------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,801 2,485 1,791 -
-------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 19,437 2,650 41,966 -
Redemptions ................................... (1,397) - (43,768) -
Annual contract maintenance charge (note 2) ... - - - -
Contingent deferred sales charges (note 2) .... - - - -
Adjustments to maintain reserves .............. 1 - 11 -
-------- -------- -------- --------
Net equity transactions ................... 18,041 2,650 (1,791) -
NET CHANGE IN CONTRACT OWNERS' EQUITY ........... 19,842 5,135 - -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ..... 29,431 14,770 - -
-------- -------- -------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD ........... $ 49,273 19,905 - -
======== ======== ======== ========
</TABLE>
See accompanying notes to financial statements.
28
<PAGE> 28
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
June 30, 1998 and 1997
(UNAUDITED)
(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)
American Century: Twentieth Century Select Fund (ACTCSel)
American Century: Twentieth Century Ultra Fund (ACTCUltra)
The Bond Fund of America(SM), Inc. (BdFdAm)
(only available for certain contracts issued beginning
January 1, 1994)
Davis New York Venture Fund, Inc. - Class A (DNYVenFd)
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)
Dreyfus S&P 500 Index Fund (Dry500Ix)
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
Evergreen Income and Growth Fund - Class Y (EvIncGro) (formerly
The Evergreen Total Return Fund - Class Y)
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
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)
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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 Worldwide Fund (JanWrldwde)
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)
NAAT - The Aggressive Portfolio (NAATAggr)
NAAT - The Conservative Portfolio (NAATCons)
NAAT - The Moderate Portfolio (NAATMod)
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
NAAT - The Moderately Conservative Portfolio (NAATModCon)
Nationwide(R) Bond Fund - Class D (NWBdFd) (managed for a fee by
an affiliated investment advisor)
Nationwide(R) Fund - Class D (NWFund) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) Growth Fund - Class D (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)
The following funds are available for investment only by Plans
established under Internal Revenue Code (IRC) Section 403(b).
Portfolios of the American Century Variable Portfolios, Inc. (
American Century VP)
(formerly TCI Portfolios, Inc.);
American Century VP - American Century VP Balanced (ACVPBal)
(formerly TCI Portfolios - TCI Balanced)
American Century VP - American Century VP Capital Appreciation
(ACVPCapAp) (formerly TCI Portfolios - TCI Growth)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
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<PAGE> 30
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 - Small Company Fund (NSATSmCo)
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)
All of the above funds were being utilized as of June 30, 1998, except
AIM Equity Funds, Inc. AIM Weingarten Fund - Institutional Class
(AIMWein), Fidelity OTCPortfolio (FidOTC), Fidelity Puritan(R) Fund
(FidPurtn), Janus Twenty Fund (Jan20Fd), Nationwide SAT - Capital
Appreciation Fund (NSATCapAp), Strong Common Stock Fund, Inc.
(StComStk) and Templeton Global Smaller Companies Fund, Inc. - Class I
(TemGlSmCo)
The following funds were no longer available as of June 30, 1998:
American Century: Twentieth Century International Growth Fund
(ACTCIntlGr), The Institutional Shares of Federated GNMA Trust
(FedGNMA), Neuberger & Berman Guardian Trust (NBGuardTr), Neuberger &
Berman Partners Fund (NBPartFd) and Warburg Pincus Emerging Growth Fund
(WPEmGro)
The contract owners' equity is affected by the investment results of
each fund, equity transactions by contract owners and certain expenses
(see note 2). The accompanying financial statements include only
contract owners' purchase payments pertaining to the variable portions
of their contracts and exclude any purchase payments for fixed dollar
benefits, the latter being included in the accounts of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1998. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the 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
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.
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<PAGE> 31
(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 and ranged from .15% to .45%.
For contracts issued beginning May 1, 1998 the Company will assess a charge
for a Variable Account Fee. Under the terms of the contracts, the Company
assumes various risks and incurs administrative expenses associated with
the issuance of the contracts. For the Company's contractual promise to
accept these risks and expenses, the contracts provide for the deduction of
a Account Fee, which is calculated as a percentage of assets and deducted
on each valuation date from amounts held in the Account. On an annual
basis, the maximum Variable Account Fee is 0.95% of the average account
value.
As with all other charges, this fee is subject to negotiation and may vary
from one contract to another reflecting the unique characteristics of
different contracts when considered as a whole. In negotiating the amount
of the fee, the Company may consider factors which may reduce expenses
incurred by the Company. These factors might include, but are not limited
to: (1) the size of the contract; (2) the number of eligible employees; (3)
the number of contract participants: (4) demographics of contract
participants; (5) general economic conditions; (6) the varying costs
associated with the inclusion of underlying mutual fund options; (7) the
type of contract issued (for example, whether the contract is issued as an
allocated contract or unallocated contract); (8) costs associated with
distribution of the contract; (9) any recovery of any credits on initial
transfers; and (10) any other factors which the Company deems relevant.
Contract owners may negotiate an exchange privilege with the Company. The
exchange privilege provides for transfers of units among the various
investment options for each participant's account. The number of transfers
allowed, and any administrative charges associated therewith, are subject
to negotiation between the contract owner and the Company.
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
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<PAGE> 32
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1998.
<TABLE>
<CAPTION>
AVERAGE
UNITS UNIT VALUE*
--------- ---------
<S> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation
Fund - Institutional Class ................. 2,804,102 $ 2.615355 $ 7,333,723
American Century: Twentieth Century Growth Fund 23,617,916 7.188873 169,786,200
American Century: Twentieth Century Select Fund 1,142,563 2.465242 2,816,694
American Century: Twentieth Century Ultra Fund 133,441,158 3.120107 416,350,688
The Bond Fund of America(SM), Inc. ............ 6,452,039 2.413732 15,573,490
Davis New York Venture Fund, Inc. - Class A ... 176,508 2.456920 433,666
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class .... 98,476 3.187883 313,930
Dreyfus Cash Management - Class A ............. 195,644 1.240534 242,703
Dreyfus S&P 500 Index Fund .................... 33,949,688 1.423981 48,343,714
The Dreyfus Third Century Fund, Inc. .......... 11,546,556 4.162162 48,058,638
Evergreen Income and Growth Fund - Class Y .... 1,806,299 2.463097 4,449,090
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ........... 3,086,038 1.246163 3,845,707
Fidelity Asset Manager(TM) .................... 5,132,434 1.633748 8,385,103
Fidelity Capital & Income Fund ................ 283,814 5.020048 1,424,760
Fidelity Contrafund ........................... 108,687,299 2.932060 318,677,641
Fidelity Equity-Income Fund ................... 41,936,703 7.654649 321,010,747
Fidelity Growth & Income Portfolio ............ 6,098,228 2.998044 18,282,756
Fidelity Magellan(R) Fund ..................... 94,090,270 2.823748 265,687,175
The Growth Fund of America(R), Inc. ........... 4,217,986 3.856979 16,268,685
The Income Fund of America(R), Inc. ........... 7,252,393 2.769461 20,085,221
INVESCO Industrial Income Fund, Inc ........... 11,640,500 2.297498 26,744,026
Janus Fund .................................... 38,911,054 2.358482 91,771,017
Janus Worldwide Fund .......................... 766,380 1.236410 947,560
MAS Funds - Fixed Income Portfolio ............ 2,721,504 1.374827 3,741,596
MFS(R) Growth Opportunities Fund - Class A .... 3,191,176 10.842102 34,599,055
MFS(R) High Income Fund - Class A ............. 892,415 6.533569 5,830,655
Massachusetts Investors Growth Stock
Fund - Class A ............................. 450,074 19.785831 8,905,088
NAAT - The Aggressive Portfolio ............... 2,022,845 1.127738 2,281,239
NAAT - The Conservative Portfolio ............. 205,207 1.060636 217,650
NAAT - The Moderate Portfolio ................. 391,711 1.100372 431,028
NAAT - The Moderately Aggressive Portfolio .... 809,717 1.109132 898,083
NAAT - The Moderately Conservative Portfolio .. 277,692 1.081180 300,235
Nationwide(R) Bond Fund - Class D ............. 46,153 2.262756 104,433
Nationwide(R) Fund - Class D .................. 5,447,357 25.179109 137,159,598
Nationwide(R) Growth Fund - Class D ........... 2,932,322 4.576556 13,419,937
Nationwide(R) Money Market Fund ............... 22,210,616 3.070951 68,207,718
</TABLE>
(Continued)
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<PAGE> 33
<TABLE>
<S> <C> <C> <C>
Neuberger & Berman Equity Funds -
Guardian Fund ................................. 996,974 1.798309 1,792,867
Neuberger & Berman Equity Funds -
Manhattan Fund ................................ 40,027 3.627202 145,186
Putnam Investors Fund - Class A .................. 2,841,116 22.240828 63,188,772
Putnam Voyager Fund - Class A .................... 40,502,471 4.464814 180,836,017
SEI Index Funds - S&P 500 Index Portfolio ........ 6,991,402 4.594691 32,123,334
Seligman Growth Fund, Inc - Class A .............. 221,603 15.072030 3,340,007
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ................... 16,164,561 2.090811 33,797,046
Templeton Foreign Fund - Class I ................. 39,013,365 1.915736 74,739,325
American Century VP - American Century
VP Balanced ................................... 5,989 1.718818 10,294
American Century VP - American Century
VP Capital Appreciation ....................... 50,694 1.576695 79,929
The Dreyfus Socially Responsible Growth Fund, Inc. 5,973 2.345053 14,007
Dreyfus Stock Index Fund ......................... 35,562 2.471543 87,893
Fidelity VIP - Asset Manager Portfolio ........... 27,146 1.634311 44,365
Fidelity VIP - Equity-Income Portfolio ........... 97,255 2.060059 200,351
Fidelity VIP - Growth Portfolio .................. 76,566 2.251300 172,373
Fidelity VIP - High Income Portfolio ............. 32,377 1.627791 52,703
Fidelity VIP - Overseas Portfolio ................ 123,365 1.472768 181,688
Nationwide SAT - Government Bond Fund ............ 9,322 1.814310 16,913
Nationwide SAT - Money Market Fund ............... 14,822 1.341317 19,881
Nationwide SAT - Small Company Fund .............. 1,887,610 1.069945 2,019,638
Nationwide SAT - Total Return Fund ............... 42,478 3.447926 146,461
Neuberger & Berman AMT - Growth Portfolio ........ 11,405 2.641385 30,125
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio ............... 8,044 1.219045 9,806
Neuberger & Berman AMT - Partners Portfolio ...... 21,435 2.298717 49,273
========== ========= --------------
Total Contract Owners' Equity .................. $2,476,027,503
==============
</TABLE>
* This is a blended unit value and will not match individual contract owners'
unit values as plans receive different contract charges determined by their
plan's negotiated rate. As these charges vary by contract and reduce the
contract owners' unit value, the unit value for each contract owner varies
accordingly.
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NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(SM) is a registered federal service mark of Nationwide Mutual
Insurance Company
