<PAGE> 1
NATIONWIDE
DC VARIABLE
ACCOUNT
[LOGO]
ANNUAL REPORT
TO
PARTICIPANTS AND RETIRED PARTICIPANTS
DECEMBER 31, 1997
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
[NATIONWIDE LOGO]
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215 - 2220
[PHOTO OF JOSEPH J. GASPER, PRESIDENT]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 1997 annual
report of the Nationwide DC Variable Account.
Equity markets ended a volatile season to record the third straight year of
gains topping the 20 percent mark. Additionally, returns on fixed income
investments were buoyed by declining inflation, steady Federal Reserve policy
and the positive outlook for lower budget deficits.
The U.S. economy continues to be strong into 1998. However, there is still much
uncertainty about what effect the Southeast Asian crisis will have on our
economy during this year. The obvious result, we believe, will be a slowing of
economic growth due to reduced exports, restrained pricing flexibility and lower
corporate profits. We expect the Federal Reserve will continue to stay on the
sidelines as the Southeast Asian economic turmoil plays out. At the same time,
low inflation and low interest rates should continue to provide a healthy
environment for financial assets.
We are committed to our customers as our most valuable asset. Our commitment to
you is to continue to add value to our products and services to help you achieve
your financial planning and retirement goals. As always, we welcome and
encourage your feedback.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
3
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CONTENTS
<TABLE>
<S> <C>
HOW TO READ THE ANNUAL REPORT............................................. 5
Explanation on how to read and understand
the various financial reports
FUND PERFORMANCES......................................................... 6
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY.............. 8
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY................................................ 11
NOTES TO FINANCIAL STATEMENTS............................................. 27
INDEPENDENT AUDITORS' REPORT.............................................. 39
</TABLE>
4
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HOW TO READ THE ANNUAL REPORT
This Annual Report is sent to all customers who own a Nationwide annuity with
all or some of the funds in the Nationwide DC Variable Account (the Account).
The Account is a separate account trust which offers investment options in
sixty-two mutual funds from twenty-one mutual fund houses.
The 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 December 31, 1997. 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 31.
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 Annual Report, the Notes to Financial
Statements, beginning on page 27, will also help explain and clarify the various
statements and schedules.
5
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FUND PERFORMANCES
AVERAGE ANNUAL TOTAL RETURN: NON-STANDARDIZED+
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
YEAR YEAR 3 YEARS 5 YEARS 10 YEARS*
1997 1996 1/1/95- 1/1/93- 1/1/88-
FUNDS** 12/31/97 12/31/97 12/31/97
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
AIM Constellation Fund 12.37% 15.72% 20.60% 15.56% 19.51%
American Century: Twentieth Century Growth Fund 28.06% 13.92% 20.26% 11.77% 14.29%
Janus Twenty Fund 28.47% 26.64% 29.97% 15.76% 19.99%
Mass. Investors Growth Stock Fund 46.75% 21.67% 31.43% 18.92% 16.98%
Putnam Voyager Fund 24.79% 11.73% 24.63% 17.70% 17.92%
GROWTH FUNDS
AIM Weingarten Fund 25.28% 17.12% 25.32% 14.53% 15.84%
American Century: Twentieth Century Select Fund 30.94% 18.09% 23.39% 14.22% 13.50%
American Century: Twentieth Century Ultra Fund 21.97% 12.77% 23.33% 16.66% 20.74%
Davis New York Venture Fund 32.41% 25.33% 32.21% 21.07% 20.04%
Dreyfus Third Century Fund 28.15% 23.15% 28.52% 15.20% 15.09%
Fidelity Contrafund 21.84% 20.78% 25.71% 18.54% 21.86%
Fidelity Magellan(R) Fund 25.40% 10.63% 23.42% 17.69% 17.76%
Fidelity OTC Portfolio 8.87% 22.56% 22.25% 13.62% 16.80%
Growth Fund of America(R) 25.66% 13.75% 22.49% 15.61% 15.55%
Janus Fund 21.56% 18.48% 22.68% 14.71% 17.22%
MFS(R) Growth Opportunities Fund 22.12% 20.71% 25.23% 16.50% 13.71%
Nationwide(R) Growth Fund 25.04% 15.59% 22.60% 15.35% 13.87%
Neuberger & Berman Manhattan Fund 27.98% 8.81% 21.80% 13.46% 15.13%
Neuberger & Berman Partners Fund 28.01% 25.34% 29.15% 19.26% 16.08%
Putnam Investors Fund 33.22% 20.25% 29.72% 19.57% 16.29%
Seligman Growth Fund 16.99% 19.99% 21.34% 12.40% 13.64%
Strong Common Stock 22.85% 19.32% 24.35% 18.64% 20.26%
GROWTH AND INCOME FUNDS
Delaware Group - Decatur Income Fund 28.73% 19.36% 26.52% 17.88% 13.89%
Evergreen Income and Growth Fund 24.40% 11.82% 19.51% 12.09% 11.21%
Fidelity Asset Manager(TM) 21.12% 11.66% 16.54% 12.33% 12.63%
Fidelity Equity-Income Fund 28.76% 19.87% 26.31% 19.18% 15.58%
Fidelity Growth and Income Portfolio 28.94% 18.88% 27.15% 19.78% 18.65%
Fidelity Puritan(R) Fund 21.19% 14.06% 18.48% 15.09% 13.96%
Income Fund of America(R) 21.01% 14.13% 20.87% 14.00% 13.05%
INVESCO Industrial Income Fund 25.25% 15.61% 22.24% 15.00% 15.83%
Nationwide(R) Fund 38.31% 22.75% 29.78% 18.16% 16.52%
Neuberger & Berman Guardian Fund 16.82% 16.76% 21.31% 15.05% 16.37%
INCOME FUNDS
Bond Fund of America(SM) 8.20% 5.69% 10.23% 7.34% 8.71%
Fidelity Capital & Income Fund 13.62% 10.34% 13.18% 11.13% 10.90%
MAS Fixed Income Portfolio 8.57% 6.34% 10.83% 7.56% 8.88%
MFS(R) High Income Fund 11.78% 11.48% 13.08% 10.53% 9.66%
Nationwide(R) Bond Fund 8.27% 0.52% 10.20% 5.97% 7.62%
INDEX FUND
Dreyfus S&P 500 Index Fund 31.83% 21.16% 29.33% 18.54% 14.65%
SEI Index Fund (S & P 500 Index) 31.82% 21.45% 29.63% 18.84% 16.58%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(R) 1.73% 14.89% 8.85% 11.96% 9.57%
Templeton Foreign Fund 5.64% 16.88% 10.78% 12.86% 11.45%
Templeton Global Smaller Companies Fund 6.05% 20.93% 14.33% 13.03% 12.88%
GOVERNMENT BOND FUNDS
Federated GNMA Trust 7.80% 3.97% 8.82% 5.60% 7.78%
Federated U.S. Government Securities Fund 6.12% 2.59% 6.99% 4.76% 6.51%
MONEY MARKET FUND
Dreyfus Cash Management 4.55% 4.41% 4.66% 3.84% 4.96%
Nationwide(R) Money Market Fund 4.12% 3.98% 4.20% 3.39% 4.45%
S&P 500 *** 33.36% 22.96% 31.15% 20.26% 18.05%
- ------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 6
AVERAGE ANNUAL TOTAL RETURN: STANDARDIZED
PERCENT CHANGE IN NET ASSETS WITH CAPITAL GAINS AND INCOME DIVIDENDS REINVESTED
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------------------------
YEAR YEAR 3 YEARS 5 YEARS 10 YEARS*
1997 1996 1/1/95- 1/1/93- 1/1/88-
FUNDS** 12/31/97 12/31/97 12/31/97
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
AGGRESSIVE GROWTH FUNDS
AIM Constellation Fund 5.87% 10.22% 18.23% 13.78% 18.65%
American Century: Twentieth Century Growth Fund 21.56% 8.42% 17.76% 9.67% 13.21%
Janus Twenty Fund 21.97% 21.14% 27.79% 13.78% 19.15%
Mass. Investors Growth Stock Fund 40.25% 16.17% 29.19% 17.07% 15.89%
Putnam Voyager Fund 18.29% 6.23% 22.34% 15.95% 16.95%
GROWTH FUNDS
AIM Weingarten Fund 18.78% 11.62% 23.04% 12.55% 14.82%
American Century: Twentieth Century Select Fund 24.44% 12.59% 20.99% 12.25% 12.36%
American Century: Twentieth Century Ultra Fund 15.47% 7.27% 21.01% 14.89% 19.91%
Davis New York Venture Fund 25.91% 19.83% 30.08% 19.37% 19.12%
Dreyfus Third Century Fund 21.65% 17.65% 26.31% 13.22% 14.02%
Fidelity Contrafund 15.34% 15.28% 23.45% 16.82% 21.07%
Fidelity Magellan(R) Fund 18.90% 5.13% 21.09% 15.97% 16.83%
Fidelity OTC Portfolio 2.37% 17.06% 19.95% 11.69% 15.86%
Growth Fund of America(R) 19.16% 8.25% 20.10% 13.76% 14.52%
Janus Fund 15.06% 12.98% 20.31% 12.81% 16.30%
MFS(R) Growth Opportunities Fund 15.62% 15.21% 22.94% 14.67% 12.52%
Nationwide(R) Growth Fund 18.54% 10.09% 20.21% 13.47% 12.73%
Neuberger & Berman Manhattan Fund 21.48% 3.31% 19.39% 11.48% 14.10%
Neuberger & Berman Partners Fund 21.51% 19.84% 26.95% 17.51% 14.97%
Putnam Investors Fund 26.72% 14.75% 27.52% 17.82% 15.19%
Seligman Growth Fund 10.49% 14.49% 18.95% 10.38% 12.51%
Strong Common Stock 16.35% 13.82% 22.03% 16.95% 19.18%
GROWTH AND INCOME FUNDS
Delaware Group - Decatur Income Fund 22.23% 13.86% 24.24% 16.09% 12.70%
Evergreen Income and Growth Fund 17.90% 6.32% 17.01% 10.07% 9.93%
Fidelity Asset Manager(TM) 14.62% 6.16% 13.95% 10.39% 11.37%
Fidelity Equity-Income Fund 22.26% 14.37% 24.03% 17.47% 14.46%
Fidelity Growth and Income Portfolio 22.44% 13.38% 24.90% 18.09% 17.70%
Fidelity Puritan(R) Fund 14.69% 8.56% 15.96% 13.28% 12.83%
Income Fund of America(R) 14.51% 8.63% 18.45% 12.09% 11.88%
INVESCO Industrial Income Fund 18.75% 10.11% 19.84% 13.12% 14.82%
Nationwide(R) Fund 31.81% 17.25% 27.54% 16.29% 15.48%
Neuberger & Berman Guardian Fund 10.32% 11.26% 18.93% 13.21% 15.40%
INCOME FUND
Bond Fund of America(SM) 1.70% 0.19% 7.47% 5.18% 7.36%
Fidelity Capital & Income Fund 7.12% 4.84% 10.49% 9.18% 9.57%
MAS Fixed Income Portfolio 2.07% 0.84% 8.09% 5.41% 7.54%
MFS(R) High Income Fund 5.28% 5.98% 10.40% 8.54% 8.23%
Nationwide(R) Bond Fund 1.77% -4.94% 7.46% 3.72% 6.21%
INDEX FUND
Dreyfus S&P 500 Index Fund 25.33% 15.66% 27.13% 16.72% 13.16%
SEI Index Fund (S & P 500 Index) 25.32% 15.95% 27.43% 17.04% 15.53%
INTERNATIONAL FUNDS
T. Rowe Price International Stock Fund(R) -4.77% 9.39% 6.02% 10.18% 8.30%
Templeton Foreign Fund -0.86% 11.38% 8.01% 11.08% 10.30%
Templeton Global Smaller Companies Fund -0.45% 15.43% 11.72% 11.21% 11.77%
GOVERNMENT BOND FUNDS
Federated GNMA Trust 1.30% -1.53% 5.99% 3.32% 6.39%
Federated U.S. Government Securities Fund -0.38% -2.91% 4.08% 2.45% 5.02%
MONEY MARKET FUND
Dreyfus Cash Management -1.95% -1.09% 1.61% 1.47% 3.36%
Nationwide(R) Money Market Fund -2.38% -1.52% 1.14% 0.98% 2.79%
- ------------------------------------------------------------------------------------------------------------------------
</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
<PAGE> 7
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1997
<TABLE>
<S> <C>
Assets:
Investments at market value:
AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class (AIMCon)
353,123 shares (cost $9,814,177) ............................................ $ 9,590,833
American Century: Twentieth Century Growth Fund (ACTCGro)
5,820,537 shares (cost $124,391,823) ........................................ 139,751,098
American Century: Twentieth Century Select Fund (ACTCSel)
53,889 shares (cost $2,029,743) ............................................. 2,295,131
American Century: Twentieth Century Ultra Fund (ACTCUltra)
12,261,059 shares (cost $324,921,418) ....................................... 334,726,919
The Bond Fund of America(SM), Inc. (BdFdAm)
891,354 shares (cost $12,244,809) ........................................... 12,478,950
Davis New York Venture Fund, Inc. - Class A (DNYVenFd)
19,577 shares (cost $453,076) ............................................... 437,146
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class (DeDecInc)
14,039 shares (cost $255,992) ................................................ 282,599
Dreyfus Cash Management - Class A (DryCsMgt)
280,979 shares (cost $280,979) .............................................. 280,979
Dreyfus S&P 500 Index Fund (Dry500Ix)
1,018,745 shares (cost $28,751,343) ......................................... 29,237,968
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
3,439,808 shares (cost $31,837,262) ......................................... 36,152,385
Evergreen Income and Growth Fund - Class Y (EvIncGro)
193,507 shares (cost $3,789,466) ............................................ 4,630,612
The Institutional Shares of Federated GNMA Trust (FedGNMA)
84,604 shares (cost $945,490) ............................................... 958,562
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
237,513 shares (cost $2,498,293) ............................................. 2,524,767
Fidelity Asset Manager(TM) (FidAsMgr)
361,947 shares (cost $6,132,945) ............................................ 6,641,734
Fidelity Capital & Income Fund (FidCapInc)
137,300 shares (cost $1,223,378) ............................................ 1,374,369
Fidelity Contrafund (FidContr)
5,374,235 shares (cost $216,052,916) ........................................ 250,600,591
Fidelity Equity-Income Fund (FidEqInc)
5,615,995 shares (cost $209,919,501) ........................................ 294,334,304
Fidelity Growth & Income Portfolio (FidGrInc)
233,635 shares (cost $8,374,913) ............................................ 8,901,489
</TABLE>
8
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<TABLE>
<S> <C>
Fidelity Magellan(R) Fund (FidMgln)
2,403,663 shares (cost $189,857,516) ........................................ 228,996,978
The Growth Fund of America(R), Inc. (GroFdAm)
723,811 shares (cost $12,215,214) ........................................... 13,593,179
The Income Fund of America(R), Inc. (IncFdAm)
1,032,931 shares (cost $16,631,222) ......................................... 18,355,189
INVESCO Industrial Income Fund, Inc. (InvIndInc)
1,534,974 shares (cost $20,422,144) ......................................... 22,886,469
Janus Fund (JanFund)
2,639,870 shares (cost $65,892,003) ......................................... 65,732,768
Janus Twenty Fund (Jan20Fd)
531 shares (cost $18,331) ................................................... 16,459
MAS Funds - Fixed Income Portfolio (MASFIP)
223,094 shares (cost $2,666,574) ............................................ 2,659,279
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
1,999,018 shares (cost $23,875,723) ......................................... 27,826,327
MFS(R) High Income Fund - Class A (MFSHiInc)
709,914 shares (cost $3,798,950) ............................................ 3,925,825
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
580,079 shares (cost $6,431,749) ............................................ 7,204,580
Nationwide(R) Bond Fund (NWBdFd)
11,726 shares (cost $107,869) ............................................... 111,750
Nationwide(R) Fund (NWFund)
2,844,581 shares (cost $58,840,651) ......................................... 75,352,944
Nationwide(R) Growth Fund (NWGroFd)
681,066 shares (cost $8,684,403) ............................................ 9,970,810
Nationwide(R) Money Market Fund (NWMyMkt)
45,685,723 shares (cost $45,685,723) ........................................ 45,685,723
Neuberger & Berman Guardian Fund (NBGuard)
37,973 shares (cost $1,101,956) ............................................. 983,491
Neuberger & Berman Manhattan Fund (NBManhFd)
11,339 shares (cost $134,200) ............................................... 124,843
Neuberger & Berman Partners Fund (NBPartFd)
76,015 shares (cost $2,209,884) ............................................. 1,999,193
Putnam Investors Fund - Class A (PutInvFd)
4,002,278 shares (cost $35,706,575) ......................................... 44,985,604
Putnam Voyager Fund - Class A (PutVoyFd)
7,238,618 shares (cost $117,476,335) ........................................ 137,895,671
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
497,766 shares (cost $14,146,931) ........................................... 15,256,513
Seligman Growth Fund, Inc. - Class A (SelGroFd)
469,336 shares (cost $2,521,649) ............................................ 2,853,565
T. Rowe Price International Funds, Inc. - International Stock Fund(R) (TRIntStk)
2,251,952 shares (cost $31,779,749) ......................................... 30,221,189
</TABLE>
(Continued)
9
<PAGE> 9
<TABLE>
<S> <C>
Templeton Foreign Fund - Class I (TemForFd)
8,112,299 shares (cost $81,035,996) ......................................... 80,717,371
American Century VP - American Century VP Balanced (ACVPBal)
830 shares (cost $6,031) .................................................... 6,842
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
8,162 shares (cost $83,823) ................................................. 79,009
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
357 shares (cost $8,306) .................................................... 8,913
Dreyfus Stock Index Fund (DryStkIx)
1,782 shares (cost $34,903) ................................................. 45,889
Fidelity VIP Fund II - Asset Manager Portfolio (FidVIPAM)
2,097 shares (cost $32,469) ................................................. 37,762
Fidelity VIP Fund - Equity-Income Portfolio (FidVIPEI)
6,960 shares (cost $137,259) ................................................ 168,985
Fidelity VIP Fund - Growth Portfolio (FidVIPGr)
3,591 shares (cost $105,209) ................................................ 133,242
Fidelity VIP Fund - High Income Portfolio (FidVIPHI)
3,346 shares (cost $40,631) ................................................. 45,435
Fidelity VIP - Overseas Portfolio (FidVIPOv)
8,313 shares (cost $145,630) ................................................ 159,604
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,299 shares (cost $14,382) ................................................. 14,783
Nationwide SAT - Money Market Fund (NSATMyMkt)
8,360 shares (cost $8,360) .................................................. 8,360
Nationwide SAT - Total Return Fund (NSATTotRe)
7,892 shares (cost $110,139) ................................................ 129,267
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
925 shares (cost $24,005) ................................................... 28,236
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
598 shares (cost $8,207) .................................................... 8,440
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
1,429 shares (cost $21,046) ................................................. 29,435
--------------
Total investments ........................................................ 1,973,460,358
Accounts receivable ............................................................... 10,966,077
--------------
Total assets ............................................................. 1,984,426,435
Accounts payable ..................................................................... 10,325,466
--------------
Contract owners' equity (note 4) ..................................................... $1,974,100,969
==============
</TABLE>
See accompanying notes to financial statements.
10
<PAGE> 10
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
TOTAL AIMCon
---------------------------------- ----------------------------------
1997 1996 1997 1996
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................... $ 20,895,878 19,852,186 -- --
Mortality and expense charges (note 2) ............. (8,777,426) (7,324,869) (83,193) (53,871)
Administration charge (note 2)
Tier I ......................................... (4,398,894) (3,675,030) (55,661) (44,853)
Tier II ........................................ (1,173,353) (1,000,535) -- --
Tier III ....................................... (388,328) (279,498) -- --
Tier IV ........................................ (149,483) (128,485) -- --
Tier V ......................................... (420,645) (361,137) (6,404) (1,210)
--------------- --------------- --------------- ---------------
Net investment activity .......................... 5,587,749 7,082,632 (145,258) (99,934)
Proceeds from mutual fund shares sold .............. 357,793,032 426,930,903 18,815,677 1,188,174
Cost of mutual fund shares sold .................... (303,606,933) (365,983,789) (15,735,318) (823,994)
--------------- --------------- --------------- ---------------
Realized gain (loss) on investments .............. 54,186,099 60,947,114 3,080,359 364,180
Change in unrealized gain (loss) on investments .... 102,369,350 33,461,531 (1,523,649) 713,388
--------------- --------------- --------------- ---------------
Net gain (loss) on investments ................... 156,555,449 94,408,645 1,556,710 1,077,568
--------------- --------------- --------------- ---------------
Reinvested capital gains ........................... 184,171,649 91,935,777 657,567 508,345
--------------- --------------- --------------- ---------------
Net increase (decrease) in contract owners'
equity resulting from operations ............. 346,314,847 193,427,054 2,069,019 1,485,979
--------------- --------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................. 453,926,543 391,105,511 7,859,657 6,347,755
Transfers between funds ............................ -- -- (1,122,286) 3,672,192
Redemptions ........................................ (251,618,723) (384,960,385) (14,772,202) (1,656,333)
Annual contract maintenance charge (note 2) ........ (2,992) (109,548) -- --
Contingent deferred sales charges (note 2) ......... (14,054) (4,539) (695) (313)
Adjustments to maintain reserves ................... (293,934) (130,864) (797) (415)
--------------- --------------- --------------- ---------------
Net equity transactions ........................ 201,996,840 5,900,175 (8,036,323) 8,362,886
Net change in contract owners' equity .............. 548,311,687 199,327,229 (5,967,304) 9,848,865
Contract owners' equity beginning of period ........ 1,425,789,282 1,226,462,053 15,557,461 5,708,596
--------------- --------------- --------------- ---------------
Contract owners' equity end of period .............. $ 1,974,100,969 1,425,789,282 9,590,157 15,557,461
=============== =============== =============== ===============
</TABLE>
<TABLE>
<CAPTION>
AIMWein ACTCGro
---------------------------------- ----------------------------------
1997 1996 1997 1996
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................... -- 14,997 -- 964,074
Mortality and expense charges (note 2) ............. (9,318) (9,300) (642,882) (736,946)
Administration charge (note 2)
Tier I ......................................... (8,386) (8,370) (271,869) (308,479)
Tier II ........................................ -- -- (93,304) (126,718)
Tier III ....................................... -- -- (26,285) (23,471)
Tier IV ........................................ -- -- (7,827) (9,068)
Tier V ......................................... -- -- (48,240) (52,202)
--------------- --------------- --------------- ---------------
Net investment activity .......................... (17,704) (2,673) (1,090,407) (292,810)
Proceeds from mutual fund shares sold .............. 2,988,919 362,431 16,716,393 58,779,225
Cost of mutual fund shares sold .................... (2,485,069) (306,808) (16,558,938) (63,406,533)
--------------- --------------- --------------- ---------------
Realized gain (loss) on investments .............. 503,850 55,623 157,455 (4,627,308)
Change in unrealized gain (loss) on investments .... (68,071) 26,347 10,717,229 21,683,917
--------------- --------------- --------------- ---------------
Net gain (loss) on investments ................... 435,779 81,970 10,874,684 17,056,609
--------------- --------------- --------------- ---------------
Reinvested capital gains ........................... 57 223,451 20,522,141 1,295,969
--------------- --------------- --------------- ---------------
Net increase (decrease) in contract owners'
equity resulting from operations ............. 418,132 302,748 30,306,418 18,059,768
--------------- --------------- --------------- ---------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................. 430,962 537,314 14,467,218 17,388,418
Transfers between funds ............................ (191,388) (70,108) (6,426,109) (21,672,216)
Redemptions ........................................ (2,774,113) (177,736) (12,448,292) (49,435,421)
Annual contract maintenance charge (note 2) ........ -- -- (4) (25,093)
Contingent deferred sales charges (note 2) ......... -- -- (700) (325)
Adjustments to maintain reserves ................... (440) 80 3,742 (3,642)
--------------- --------------- --------------- ---------------
Net equity transactions ........................ (2,534,979) 289,550 (4,404,145) (53,748,279)
Net change in contract owners' equity .............. (2,116,847) 592,298 25,902,273 (35,688,511)
Contract owners' equity beginning of period ........ 2,116,847 1,524,549 113,853,751 149,542,262
--------------- --------------- --------------- ---------------
Contract owners' equity end of period .............. -- 2,116,847 139,756,024 113,853,751
=============== =============== =============== ===============
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
ACTCSel ACTCUltra
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 8,911 11,951 127,927 --
Mortality and expense charges (note 2) ........... (9,710) (9,312) (1,509,815) (1,223,060)
Administration charge (note 2)
Tier I ....................................... (226) (231) (776,590) (620,290)
Tier II ...................................... -- -- (199,798) (159,009)
Tier III ..................................... -- -- (80,544) (62,126)
Tier IV ...................................... (3,783) (3,622) (21,246) (19,777)
Tier V ....................................... -- -- (62,951) (54,629)
------------ ------------ ------------ ------------
Net investment activity ........................ (4,808) (1,214) (2,523,017) (2,138,891)
Proceeds from mutual fund shares sold ............ 105,754 573,132 42,925,473 45,912,843
Cost of mutual fund shares sold .................. (82,007) (503,535) (28,943,858) (33,382,579)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............ 23,747 69,597 13,981,615 12,530,264
Change in unrealized gain (loss) on investments .. 123,754 41,842 (23,440,931) 2,813,597
------------ ------------ ------------ ------------
Net gain (loss) on investments ................. 147,501 111,439 (9,459,316) 15,343,861
------------ ------------ ------------ ------------
Reinvested capital gains ......................... 357,648 136,147 68,012,104 14,628,040
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........... 500,341 246,372 56,029,771 27,833,010
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................ 237,869 144,642 76,463,255 77,539,281
Transfers between funds .......................... 72,140 (297,684) (3,905,194) (4,202,211)
Redemptions ...................................... (73,384) (204,280) (39,257,098) (48,772,720)
Annual contract maintenance charge (note 2) ...... -- -- (24) (36)
Contingent deferred sales charges (note 2) ....... -- -- (1,699) (1,200)
Adjustments to maintain reserves ................. (255) (1,008) (69,090) 16,497
------------ ------------ ------------ ------------
Net equity transactions ...................... 236,370 (358,330) 33,230,150 24,579,611
Net change in contract owners' equity ............ 736,711 (111,958) 89,259,921 52,412,621
Contract owners' equity beginning of period ...... 1,558,172 1,670,130 245,403,535 192,990,914
------------ ------------ ------------ ------------
Contract owners' equity end of period ............ $ 2,294,883 1,558,172 334,663,456 245,403,535
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
BdFdAm DNYVenFd
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. 831,172 1,046,187 2,454 21,123
Mortality and expense charges (note 2) ........... (59,085) (73,390) (20,053) (17,262)
Administration charge (note 2)
Tier I ....................................... (33,669) (41,477) (16,533) (5,711)
Tier II ...................................... (8,744) (13,677) (1,346) (8,733)
Tier III ..................................... (2,293) (2,065) -- --
Tier IV ...................................... (201) (214) -- --
Tier V ....................................... (1,926) (1,870) -- --
------------ ------------ ------------ ------------
Net investment activity ........................ 725,254 913,494 (35,478) (10,583)
Proceeds from mutual fund shares sold ............ 5,280,682 8,814,167 8,604,728 3,456,609
Cost of mutual fund shares sold .................. (5,010,122) (8,967,702) (7,453,575) (2,805,367)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............ 270,560 (153,535) 1,151,153 651,242
Change in unrealized gain (loss) on investments .. (62,236) (20,855) (200,770) 14,694
------------ ------------ ------------ ------------
Net gain (loss) on investments ................. 208,324 (174,390) 950,383 665,936
------------ ------------ ------------ ------------
Reinvested capital gains ......................... -- -- 10,430 82,146
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ........... 933,578 739,104 925,335 737,499
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................ 2,017,698 3,181,588 4,085,503 1,804,566
Transfers between funds .......................... (215,164) (1,049,358) 2,267,457 784,377
Redemptions ...................................... (1,811,719) (6,476,871) (9,056,278) (3,494,975)
Annual contract maintenance charge (note 2) ...... (8) (2,955) -- --
Contingent deferred sales charges (note 2) ....... -- -- -- --
Adjustments to maintain reserves ................. (783) (1,103) 8,950 165
------------ ------------ ------------ ------------
Net equity transactions ...................... (9,976) (4,348,699) (2,694,368) (905,867)
Net change in contract owners' equity ............ 923,602 (3,609,595) (1,769,033) (168,368)
Contract owners' equity beginning of period ...... 11,554,576 15,164,171 2,215,046 2,383,414
------------ ------------ ------------ ------------
Contract owners' equity end of period ............ 12,478,178 11,554,576 446,013 2,215,046
============ ============ ============ ============
</TABLE>
12
<PAGE> 12
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
DeDecInc DryCsMgt
---------------------------- ----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ 7,552 7,849 54,849 136,743
Mortality and expense charges (note 2) ........... (1,261) (1,071) (5,071) (13,528)
Administration charge (note 2)
Tier I ....................................... (889) (785) (3,079) (2,135)
Tier II ...................................... (157) (111) (1,320) (8,925)
Tier III ..................................... (46) (37) -- --
Tier IV ...................................... -- -- -- --
Tier V ....................................... -- -- -- --
----------- ----------- ----------- -----------
Net investment activity ........................ 5,199 5,845 45,379 112,155
Proceeds from mutual fund shares sold ............ 32,460 37,688 6,117,696 6,819,165
Cost of mutual fund shares sold .................. (26,970) (35,438) (6,117,696) (6,819,165)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ............ 5,490 2,250 -- --
Change in unrealized gain (loss) on investments .. 14,342 821 -- --
----------- ----------- ----------- -----------
Net gain (loss) on investments ................. 19,832 3,071 -- --
----------- ----------- ----------- -----------
Reinvested capital gains ......................... 37,091 28,159 -- --
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........... 62,122 37,075 45,379 112,155
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................ 30,795 32,196 662,604 534,980
Transfers between funds .......................... (2,219) (18,353) (165,420) 345,922
Redemptions ...................................... (31,221) (19,904) (1,416,011) (2,682,910)
Annual contract maintenance charge (note 2) ...... -- (4) -- --
Contingent deferred sales charges (note 2) ....... -- -- -- --
Adjustments to maintain reserves ................. -- (135) (171) (243)
----------- ----------- ----------- -----------
Net equity transactions ...................... (2,645) (6,200) (918,998) (1,802,251)
Net change in contract owners' equity .............. 59,477 30,875 (873,619) (1,690,096)
Contract owners' equity beginning of period ........ 223,128 192,253 1,154,439 2,844,535
----------- ----------- ----------- -----------
Contract owners' equity end of period .............. $ 282,605 223,128 280,820 1,154,439
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Dry500Ix Dry3dCen
---------------------------- ----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. 284,069 -- 62,610 42,627
Mortality and expense charges (note 2) ........... (35,171) -- (145,644) (95,294)
Administration charge (note 2)
Tier I ....................................... (14,618) -- (65,097) (45,192)
Tier II ...................................... (9,421) -- (16,969) (12,596)
Tier III ..................................... (3,048) -- (7,994) (3,757)
Tier IV ...................................... (830) -- (2,467) (940)
Tier V ....................................... -- -- (9,783) (6,217)
----------- ----------- ----------- -----------
Net investment activity ........................ 220,981 -- (185,344) (121,369)
Proceeds from mutual fund shares sold ............ 2,486,482 -- 3,259,863 6,090,694
Cost of mutual fund shares sold .................. (2,245,649) -- (2,727,200) (5,350,324)
----------- ----------- ----------- -----------
Realized gain (loss) on investments ............ 240,833 -- 532,663 740,370
Change in unrealized gain (loss) on investments .. 486,625 -- 3,474,496 41,428
----------- ----------- ----------- -----------
Net gain (loss) on investments ................. 727,458 -- 4,007,159 781,798
----------- ----------- ----------- -----------
Reinvested capital gains ......................... 433,206 -- 2,817,470 2,973,237
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........... 1,381,645 -- 6,639,285 3,633,666
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................ 8,226,484 -- 9,162,128 4,244,258
Transfers between funds .......................... 10,392,894 -- 2,904,857 2,628,824
Redemptions ...................................... (763,066) -- (2,496,781) (5,116,680)
Annual contract maintenance charge (note 2) ...... -- -- -- --
Contingent deferred sales charges (note 2) ....... -- -- -- --
Adjustments to maintain reserves ................. (170,387) -- (3,144) 265
----------- ----------- ----------- -----------
Net equity transactions ...................... 17,685,925 -- 9,567,060 1,756,667
Net change in contract owners' equity .............. 19,067,570 -- 16,206,345 5,390,333
Contract owners' equity beginning of period ........ -- -- 19,942,835 14,552,502
----------- ----------- ----------- -----------
Contract owners' equity end of period .............. 19,067,570 -- 36,149,180 19,942,835
=========== =========== =========== ===========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
EvIncGro FedGNMA
------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 204,120 267,495 49,431 44,688
Mortality and expense charges (note 2) ............... (21,764) (28,011) (3,754) (3,329)
Administration charge (note 2)
Tier I ........................................... (9,480) (10,537) (3,378) (2,996)
Tier II .......................................... (4,090) (6,618) -- --
Tier III ......................................... (587) (499) -- --
Tier IV .......................................... (102) (224) -- --
Tier V ........................................... (1,465) (1,992) -- --
---------- ---------- ---------- ----------
Net investment activity ............................ 166,632 219,614 42,299 38,363
Proceeds from mutual fund shares sold ................ 847,065 2,360,157 440,928 203,672
Cost of mutual fund shares sold ...................... (754,439) (2,355,105) (428,095) (209,513)
---------- ---------- ---------- ----------
Realized gain (loss) on investments ................ 92,626 5,052 12,833 (5,841)
Change in unrealized gain (loss) on investments ...... 409,277 329,828 493 (5,208)
---------- ---------- ---------- ----------
Net gain (loss) on investments ..................... 501,903 334,880 13,326 (11,049)
---------- ---------- ---------- ----------
Reinvested capital gains ............................. 285,501 -- -- --
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 954,036 554,494 55,625 27,314
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 314,114 537,355 97,632 152,176
Transfers between funds .............................. (630,620) (879,504) 396,046 (7,769)
Redemptions .......................................... (327,850) (1,565,234) (299,846) (94,659)
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... -- -- (165) (11)
Adjustments to maintain reserves ..................... 44 120 (5) (70)
---------- ---------- ---------- ----------
Net equity transactions .......................... (644,312) (1,907,263) 193,662 49,667
Net change in contract owners' equity .................. 309,724 (1,352,769) 249,287 76,981
Contract owners' equity beginning of period ............ 4,320,926 5,673,695 709,278 632,297
---------- ---------- ---------- ----------
Contract owners' equity end of period .................. $4,630,650 4,320,926 958,565 709,278
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
FedUSGvt FidAsMgr
------------------------- -------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 122,936 109,980 200,644 228,299
Mortality and expense charges (note 2) ............... (11,028) (11,497) (29,750) (34,006)
Administration charge (note 2)
Tier I ........................................... (6,630) (4,151) (17,550) (14,080)
Tier II .......................................... (1,877) (1,950) (3,833) (10,889)
Tier III ......................................... (400) (395) (1,227) (919)
Tier IV .......................................... (259) (317) (1,365) (1,288)
Tier V ........................................... -- (899) -- --
---------- ---------- ---------- ----------
Net investment activity ............................ 102,742 90,771 146,919 167,117
Proceeds from mutual fund shares sold ................ 1,662,873 1,653,358 1,776,704 4,210,588
Cost of mutual fund shares sold ...................... (1,668,080) (1,626,128) (1,379,459) (3,630,222)
---------- ---------- ---------- ----------
Realized gain (loss) on investments ................ (5,207) 27,230 397,245 580,366
Change in unrealized gain (loss) on investments ...... 33,840 (66,217) 219,715 (264,491)
---------- ---------- ---------- ----------
Net gain (loss) on investments ..................... 28,633 (38,987) 616,960 315,875
---------- ---------- ---------- ----------
Reinvested capital gains ............................. -- -- 370,511 221,907
---------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 131,375 51,784 1,134,390 704,899
---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 665,677 966,775 1,689,785 2,180,472
Transfers between funds .............................. 36,017 (704,468) (77,999) (890,070)
Redemptions .......................................... (329,946) (386,399) (1,129,423) (3,521,012)
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... -- -- (42) --
Adjustments to maintain reserves ..................... (158) (286) 2,277 (410)
---------- ---------- ---------- ----------
Net equity transactions .......................... 371,590 (124,378) 484,598 (2,231,020)
Net change in contract owners' equity .................. 502,965 (72,594) 1,618,988 (1,526,121)
Contract owners' equity beginning of period ............ 2,021,665 2,094,259 5,023,827 6,549,948
---------- ---------- ---------- ----------
Contract owners' equity end of period .................. 2,524,630 2,021,665 6,642,815 5,023,827
========== ========== ========== ==========
</TABLE>
14
<PAGE> 14
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
FidCapInc FidContr
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ 94,905 117,308 1,712,764 1,545,421
Mortality and expense charges (note 2) ............ (6,810) (7,639) (1,095,804) (734,971)
Administration charge (note 2)
Tier I ........................................ (2,241) (2,409) (644,732) (432,587)
Tier II ....................................... (657) (1,277) (155,250) (119,426)
Tier III ...................................... (831) (316) (60,205) (37,618)
Tier IV ....................................... (170) (207) (19,745) (14,872)
Tier V ........................................ (506) (697) (10,700) (1,548)
------------ ------------ ------------ ------------
Net investment activity ......................... 83,690 104,763 (273,672) 204,399
Proceeds from mutual fund shares sold ............. 181,090 500,552 24,431,745 26,450,915
Cost of mutual fund shares sold ................... (133,415) (364,126) (15,172,449) (20,427,691)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. 47,675 136,426 9,259,296 6,023,224
Change in unrealized gain (loss) on investments ... 43,602 (106,075) 11,711,270 9,814,737
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. 91,277 30,351 20,970,566 15,837,961
------------ ------------ ------------ ------------
Reinvested capital gains .......................... -- -- 21,858,485 11,581,370
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 174,967 135,114 42,555,379 27,623,730
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. -- (23) 71,455,791 55,820,118
Transfers between funds ........................... (47,356) (62,523) 2,764,788 13,444,223
Redemptions ....................................... (120,296) (425,397) (35,148,446) (34,561,066)
Annual contract maintenance charge (note 2) ....... -- -- (12) --
Contingent deferred sales charges (note 2) ........ -- -- -- (16)
Adjustments to maintain reserves .................. (69) (257) (25,659) (77,234)
------------ ------------ ------------ ------------
Net equity transactions ....................... (167,721) (488,200) 39,046,462 34,626,025
Net change in contract owners' equity ............. 7,246 (353,086) 81,601,841 62,249,755
Contract owners' equity beginning of period ....... 1,367,071 1,720,157 168,983,800 106,734,045
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. $ 1,374,317 1,367,071 250,585,641 168,983,800
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidEqInc FidGrInc
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. 4,846,247 4,458,988 171,835 120,582
Mortality and expense charges (note 2) ............ (1,228,965) (951,325) (72,380) (34,818)
Administration charge (note 2)
Tier I ........................................ (555,462) (427,937) (39,476) (31,336)
Tier II ....................................... (182,609) (124,216) -- --
Tier III ...................................... (56,191) (40,047) -- --
Tier IV ....................................... (27,411) (23,180) -- --
Tier V ........................................ (66,404) (58,763) (8,555) --
------------ ------------ ------------ ------------
Net investment activity ......................... 2,729,205 2,833,520 51,424 54,428
Proceeds from mutual fund shares sold ............. 7,591,614 32,470,928 15,556,109 3,117,754
Cost of mutual fund shares sold ................... (4,094,211) (18,103,159) (12,289,818) (2,524,726)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. 3,497,403 14,367,769 3,266,291 593,028
Change in unrealized gain (loss) on investments ... 43,670,084 6,810,967 (795,078) 345,172
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. 47,167,487 21,178,736 2,471,213 938,200
------------ ------------ ------------ ------------
Reinvested capital gains .......................... 10,700,332 8,080,048 617,392 306,623
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 60,597,024 32,092,304 3,140,029 1,299,251
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 49,555,826 37,796,687 8,903,236 4,132,838
Transfers between funds ........................... 7,627,274 6,082,051 1,906,025 1,663,942
Redemptions ....................................... (16,944,810) (41,406,202) (15,606,356) (3,534,384)
Annual contract maintenance charge (note 2) ....... -- (17,665) -- --
Contingent deferred sales charges (note 2) ........ (2,187) (190) -- --
Adjustments to maintain reserves .................. (2,091) (6,538) 973 2
------------ ------------ ------------ ------------
Net equity transactions ....................... 40,234,012 2,448,143 (4,796,122) 2,262,398
Net change in contract owners' equity ............. 100,831,036 34,540,447 (1,656,093) 3,561,649
Contract owners' equity beginning of period ....... 193,502,053 158,961,606 10,558,554 6,996,905
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. 294,333,089 193,502,053 8,902,461 10,558,554
============ ============ ============ ============
</TABLE>
(Continued)
15
<PAGE> 15
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
FidMgIn FidOTC
------------------------------- ------------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ 2,776,362 2,347,353 -- --
Mortality and expense charges (note 2) ............ (1,029,833) (928,190) -- --
Administration charge (note 2)
Tier I ........................................ (554,264) (489,031) -- --
Tier II ....................................... (107,173) (84,316) -- --
Tier III ...................................... (39,771) (34,922) -- --
Tier IV ....................................... (15,441) (14,932) -- --
Tier V ........................................ (52,539) (55,169) -- --
------------- ------------- ------------- -------------
Net investment activity ......................... 977,341 740,793 -- --
Proceeds from mutual fund shares sold ............. 17,843,381 25,879,725 -- 78,420
Cost of mutual fund shares sold ................... (14,477,806) (22,802,539) -- (80,480)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ............. 3,365,575 3,077,186 -- (2,060)
Change in unrealized gain (loss) on investments ... 29,086,622 (11,383,877) -- 2,064
------------- ------------- ------------- -------------
Net gain (loss) on investments .................. 32,452,197 (8,306,691) -- 4
------------- ------------- ------------- -------------
Reinvested capital gains .......................... 11,739,123 25,354,072 -- --
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 45,168,661 17,788,174 -- 4
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 41,946,309 53,096,333 -- --
Transfers between funds ........................... (12,805,250) (32,238,041) -- --
Redemptions ....................................... (22,357,376) (20,782,223) -- (78,420)
Annual contract maintenance charge (note 2) ....... -- -- -- --
Contingent deferred sales charges (note 2) ........ (1,445) (808) -- --
Adjustments to maintain reserves .................. (7,838) (4,540) -- (4)
------------- ------------- ------------- -------------
Net equity transactions ....................... 6,774,400 70,721 -- (78,424)
Net change in contract owners' equity ............. 51,943,061 17,858,895 -- (78,420)
Contract owners' equity beginning of period ....... 177,046,208 159,187,313 -- 78,420
------------- ------------- ------------- -------------
Contract owners' equity end of period ............. $ 228,989,269 177,046,208 -- --
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
GroFdAm IncFdAm
------------------------------- -------------------------------
1997 1996 1997 1996
------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. 83,852 85,990 802,807 1,014,512
Mortality and expense charges (note 2) ............ (57,706) (76,212) (86,189) (93,298)
Administration charge (note 2)
Tier I ........................................ (34,281) (54,923) (55,580) (67,682)
Tier II ....................................... (7,916) (5,621) (12,467) (8,905)
Tier III ...................................... (4,327) (3,446) (3,364) (2,368)
Tier IV ....................................... (1,003) (967) (1,297) (1,207)
Tier V ........................................ -- -- -- --
------------- ------------- ------------- -------------
Net investment activity ......................... (21,381) (55,179) 643,910 841,052
Proceeds from mutual fund shares sold ............. 1,428,368 11,929,973 3,825,869 7,389,650
Cost of mutual fund shares sold ................... (1,129,814) (9,375,437) (2,940,941) (6,503,900)
------------- ------------- ------------- -------------
Realized gain (loss) on investments ............. 298,554 2,554,536 884,928 885,750
Change in unrealized gain (loss) on investments ... 937,071 (1,344,244) 357,933 (190,102)
------------- ------------- ------------- -------------
Net gain (loss) on investments .................. 1,235,625 1,210,292 1,242,861 695,648
------------- ------------- ------------- -------------
Reinvested capital gains .......................... 1,328,724 672,289 1,368,961 952,784
------------- ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 2,542,968 1,827,402 3,255,732 2,489,484
------------- ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 2,447,734 3,842,164 3,463,650 4,244,393
Transfers between funds ........................... (330,586) (522,247) (263,093) (1,138,464)
Redemptions ....................................... (846,573) (11,256,013) (3,321,842) (6,743,100)
Annual contract maintenance charge (note 2) ....... -- (6,535) -- --
Contingent deferred sales charges (note 2) ........ -- -- -- --
Adjustments to maintain reserves .................. (854) (708) 170 (872)
------------- ------------- ------------- -------------
Net equity transactions ....................... 1,269,721 (7,943,339) (121,115) (3,638,043)
Net change in contract owners' equity ............. 3,812,689 (6,115,937) 3,134,617 (1,148,559)
Contract owners' equity beginning of period ....... 9,779,679 15,895,616 15,220,788 16,369,347
------------- ------------- ------------- -------------
Contract owners' equity end of period ............. 13,592,368 9,779,679 18,355,405 15,220,788
============= ============= ============= =============
</TABLE>
16
<PAGE> 16
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
InvIndInc JanFund
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ 503,142 519,784 504,628 310,689
Mortality and expense charges (note 2) ............ (102,486) (87,753) (263,647) (147,723)
Administration charge (note 2)
Tier I ........................................ (68,066) (58,875) (155,821) (90,100)
Tier II ....................................... (15,321) (13,634) (40,695) (19,019)
Tier III ...................................... (2,187) (1,437) (12,305) (7,216)
Tier IV ....................................... (1,625) (1,159) (7,654) (4,725)
Tier V ........................................ -- -- -- --
------------ ------------ ------------ ------------
Net investment activity ......................... 313,457 356,926 24,506 41,906
Proceeds from mutual fund shares sold ............. 2,918,824 6,354,821 1,817,544 5,274,235
Cost of mutual fund shares sold ................... (2,133,346) (5,655,544) (1,287,899) (4,248,259)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. 785,478 699,277 529,645 1,025,976
Change in unrealized gain (loss) on investments ... 1,085,683 234,134 (1,083,219) (822,680)
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. 1,871,161 933,411 (553,574) 203,296
------------ ------------ ------------ ------------
Reinvested capital gains .......................... 2,264,235 1,190,695 10,329,860 4,343,103
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 4,448,853 2,481,032 9,800,792 4,588,305
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 5,518,647 5,610,132 22,193,127 13,945,193
Transfers between funds ........................... (42,962) (563,565) 385,853 6,909,943
Redemptions ....................................... (3,356,403) (6,639,034) (3,993,919) (6,395,457)
Annual contract maintenance charge (note 2) ....... -- (2,841) -- --
Contingent deferred sales charges (note 2) ........ -- -- -- --
Adjustments to maintain reserves .................. (284) (1,143) (6,804) (1,049)
------------ ------------ ------------ ------------
Net equity transactions ....................... 2,118,998 (1,596,451) 18,578,257 14,458,630
Net change in contract owners' equity ............. 6,567,851 884,581 28,379,049 19,046,935
Contract owners' equity beginning of period ....... 16,322,252 15,437,671 37,346,871 18,299,936
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. $ 22,890,103 16,322,252 65,725,920 37,346,871
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Jan20Fd MASFIP
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. 45 1,383 131,839 57,963
Mortality and expense charges (note 2) ............ (643) (664) (9,679) (4,231)
Administration charge (note 2)
Tier I ........................................ (578) (598) (5,793) (2,507)
Tier II ....................................... -- -- (1,213) (652)
Tier III ...................................... -- -- (733) (262)
Tier IV ....................................... -- -- (202) (77)
Tier V ........................................ -- -- -- --
------------ ------------ ------------ ------------
Net investment activity ......................... (1,176) 121 114,219 50,234
Proceeds from mutual fund shares sold ............. 571,046 178,295 1,183,622 558,613
Cost of mutual fund shares sold ................... (609,105) (153,190) (1,164,040) (557,602)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. (38,059) 25,105 19,582 1,011
Change in unrealized gain (loss) on investments ... 33,644 (36,405) (6,279) (3,811)
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. (4,415) (11,300) 13,303 (2,800)
------------ ------------ ------------ ------------
Reinvested capital gains .......................... 2,061 40,485 34,732 12,299
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ (3,530) 29,306 162,254 59,733
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 215,002 264,436 892,120 819,228
Transfers between funds ........................... 124,576 60,880 562,385 112,068
Redemptions ....................................... (569,390) (146,847) (220,277) (151,855)
Annual contract maintenance charge (note 2) ....... -- -- -- --
Contingent deferred sales charges (note 2) ........ -- -- -- --
Adjustments to maintain reserves .................. 4 -- (131) (209)
------------ ------------ ------------ ------------
Net equity transactions ....................... (229,808) 178,469 1,234,097 779,232
Net change in contract owners' equity ............. (233,338) 207,775 1,396,351 838,965
Contract owners' equity beginning of period ....... 249,793 42,018 1,262,922 423,957
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. 16,455 249,793 2,659,273 1,262,922
============ ============ ============ ============
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
MFSGrOpp MFSHiInc
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ -- -- 312,636 337,552
Mortality and expense charges (note 2) ............ (134,126) (140,948) (18,058) (23,190)
Administration charge (note 2)
Tier I ........................................ (22,570) (27,772) (2,559) (4,661)
Tier II ....................................... (11,636) (10,430) (655) (908)
Tier III ...................................... (5,520) (4,357) (418) (119)
Tier IV ....................................... (108) (145) (1) (2)
Tier V ........................................ (25,510) (26,829) (4,109) (5,002)
------------ ------------ ------------ ------------
Net investment activity ......................... (199,470) (210,481) 286,836 303,670
Proceeds from mutual fund shares sold ............. 4,369,685 3,751,453 2,220,329 1,645,150
Cost of mutual fund shares sold ................... (3,326,454) (3,254,502) (2,126,593) (1,605,880)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. 1,043,231 496,951 93,736 39,270
Change in unrealized gain (loss) on investments ... 846,207 1,417,206 19,624 79,309
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. 1,889,438 1,914,157 113,360 118,579
------------ ------------ ------------ ------------
Reinvested capital gains .......................... 3,444,649 2,751,576 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 5,134,617 4,455,252 400,196 422,249
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 1,426,143 1,180,246 610,811 352,677
Transfers between funds ........................... (942,811) (773,129) (123,874) (369,285)
Redemptions ....................................... (3,228,399) (2,771,393) (708,681) (651,164)
Annual contract maintenance charge (note 2) ....... -- (27) -- --
Contingent deferred sales charges (note 2) ........ -- -- -- --
Adjustments to maintain reserves .................. (21,750) (18,619) (2,782) (353)
------------ ------------ ------------ ------------
Net equity transactions ....................... (2,766,817) (2,382,922) (224,526) (668,125)
Net change in contract owners' equity ............. 2,367,800 2,072,330 175,670 (245,876)
Contract owners' equity beginning of period ....... 25,459,101 23,386,771 3,747,401 3,993,277
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. $ 27,826,901 25,459,101 3,923,071 3,747,401
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MFSGrStk NWBdFd
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. 3,241 -- 8,172 11,782
Mortality and expense charges (note 2) ............ (30,470) (30,903) (641) (1,101)
Administration charge (note 2)
Tier I ........................................ (8,816) (7,969) (76) (213)
Tier II ....................................... (1,116) (2,829) -- --
Tier III ...................................... (501) (410) -- --
Tier IV ....................................... (8) (7) -- --
Tier V ........................................ (5,527) (5,343) (167) (259)
------------ ------------ ------------ ------------
Net investment activity ......................... (43,197) (47,461) 7,288 10,209
Proceeds from mutual fund shares sold ............. 806,782 1,529,884 78,071 136,724
Cost of mutual fund shares sold ................... (796,449) (1,482,189) (82,229) (134,113)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. 10,333 47,695 (4,158) 2,611
Change in unrealized gain (loss) on investments ... 1,199,210 (205,079) 6,157 (10,029)
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. 1,209,543 (157,384) 1,999 (7,418)
------------ ------------ ------------ ------------
Reinvested capital gains .......................... 1,104,545 1,217,085 -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 2,270,891 1,012,240 9,287 2,791
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 560,733 492,179 22,759 62,411
Transfers between funds ........................... 54,405 (274,332) (33,788) (43,758)
Redemptions ....................................... (695,501) (1,144,387) (46,264) (44,847)
Annual contract maintenance charge (note 2) ....... (486) (519) -- --
Contingent deferred sales charges (note 2) ........ (456) (128) -- --
Adjustments to maintain reserves .................. 451 (830) (12) (35)
------------ ------------ ------------ ------------
Net equity transactions ....................... (80,854) (928,017) (57,305) (26,229)
Net change in contract owners' equity ............. 2,190,037 84,223 (48,018) (23,438)
Contract owners' equity beginning of period ....... 5,014,974 4,930,751 159,754 183,192
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. 7,205,011 5,014,974 111,736 159,754
============ ============ ============ ============
</TABLE>
18
<PAGE> 18
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
NWMyMkt NBGuard
<TABLE>
<CAPTION>
NWFund NWGroFd
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. $ 690,370 609,726 68,821 98,234
Mortality and expense charges (note 2) ............ (266,484) (191,658) (44,059) (50,111)
Administration charge (note 2)
Tier I ........................................ (123,555) (96,358) (17,354) (20,206)
Tier II ....................................... (35,569) (27,976) (5,594) (9,047)
Tier III ...................................... (14,919) (7,436) (1,245) (972)
Tier IV ....................................... (3,750) (1,643) (2,168) (2,176)
Tier V ........................................ (15,150) (9,936) (3,087) (2,787)
------------ ------------ ------------ ------------
Net investment activity ......................... 230,943 274,719 (4,686) 12,935
Proceeds from mutual fund shares sold ............. 3,524,263 14,865,042 888,498 4,378,762
Cost of mutual fund shares sold ................... (2,432,914) (11,883,176) (640,663) (3,358,066)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. 1,091,349 2,981,866 247,835 1,020,696
Change in unrealized gain (loss) on investments ... 11,194,545 1,906,009 428,346 (277,957)
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. 12,285,894 4,887,875 676,181 742,739
------------ ------------ ------------ ------------
Reinvested capital gains .......................... 3,686,826 2,216,305 1,209,332 534,447
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 16,203,663 7,378,899 1,880,827 1,290,121
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 15,483,476 5,277,378 1,294,729 1,185,223
Transfers between funds ........................... 13,256,766 (2,809,029) (227,077) (1,384,376)
Redemptions ....................................... (4,206,078) (10,666,892) (510,560) (3,340,229)
Annual contract maintenance charge (note 2) ....... (1,088) (3,430) -- (951)
Contingent deferred sales charges (note 2) ........ (897) (1,525) -- --
Adjustments to maintain reserves .................. 433 (4,940) 95 (883)
------------ ------------ ------------ ------------
Net equity transactions ....................... 24,532,612 (8,208,438) 557,187 (3,541,216)
Net change in contract owners' equity ............. 40,736,275 (829,539) 2,438,014 (2,251,095)
Contract owners' equity beginning of period ....... 34,591,092 35,420,631 7,532,918 9,784,013
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. $ 75,327,367 34,591,092 9,970,932 7,532,918
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NWMyMkt NBGuard
----------------------------- -----------------------------
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .............................. 2,956,768 2,752,685 4,553 818
Mortality and expense charges (note 2) ............ (298,652) (305,814) (3,053) (199)
Administration charge (note 2)
Tier I ........................................ (99,691) (113,053) -- --
Tier II ....................................... (78,281) (71,393) -- --
Tier III ...................................... (9,259) (7,717) -- --
Tier IV ....................................... (6,949) (7,408) -- --
Tier V ........................................ (17,169) (17,873) (916) (60)
------------ ------------ ------------ ------------
Net investment activity ......................... 2,446,767 2,229,427 584 559
Proceeds from mutual fund shares sold ............. 90,261,974 49,156,048 453,514 48,535
Cost of mutual fund shares sold ................... (90,261,974) (49,156,048) (414,080) (46,031)
------------ ------------ ------------ ------------
Realized gain (loss) on investments ............. -- -- 39,434 2,504
Change in unrealized gain (loss) on investments ... -- -- (121,548) 3,082
------------ ------------ ------------ ------------
Net gain (loss) on investments .................. -- -- (82,114) 5,586
------------ ------------ ------------ ------------
Reinvested capital gains .......................... -- -- 128,744 6,718
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations ............ 2,446,767 2,229,427 47,214 12,863
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................. 9,680,836 9,722,355 620,995 51,062
Transfers between funds ........................... (8,123,293) 10,132,289 226,325 90,814
Redemptions ....................................... (6,330,019) (19,598,410) (60,295) (5,488)
Annual contract maintenance charge (note 2) ....... (15) (7,285) -- --
Contingent deferred sales charges (note 2) ........ (2,230) -- -- --
Adjustments to maintain reserves .................. 25,609 (11,502) 838 1
------------ ------------ ------------ ------------
Net equity transactions ....................... (4,749,112) 237,447 787,863 136,389
Net change in contract owners' equity ............. (2,302,345) 2,466,874 835,077 149,252
Contract owners' equity beginning of period ....... 58,928,944 56,462,070 149,252 --
------------ ------------ ------------ ------------
Contract owners' equity end of period ............. 56,626,599 58,928,944 984,329 149,252
============ ============ ============ ============
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
NBManhFd NBPartFd
------------------------ ----------------------------
1997 1996 1997 1996
-------- -------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ -- -- 11,614 --
Mortality and expense charges (note 2) ............... (810) (1,891) (4,937) --
Administration charge (note 2)
Tier I ........................................... (729) (1,702) (4,443) --
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
-------- -------- ---------- ----------
Net investment activity ............................ (1,539) (3,593) 2,234 --
Proceeds from mutual fund shares sold ................ 223,724 683,440 359,092 --
Cost of mutual fund shares sold ...................... (233,494) (603,228) (298,999) --
-------- -------- ---------- ----------
Realized gain (loss) on investments ................ (9,770) 80,212 60,093 --
Change in unrealized gain (loss) on investments ...... 14,259 (84,746) (210,691) --
-------- -------- ---------- ----------
Net gain (loss) on investments ..................... 4,489 (4,534) (150,598) --
-------- -------- ---------- ----------
Reinvested capital gains ............................. 31,773 36,716 356,973 --
-------- -------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 34,723 28,589 208,609 --
-------- -------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 19,016 54,284 350,067 --
Transfers between funds .............................. (53,207) (158,418) 1,620,917 --
Redemptions .......................................... (170,571) (521,670) (180,319) --
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... -- -- (81) --
Adjustments to maintain reserves ..................... (24) (16) (49) --
-------- -------- ---------- ----------
Net equity transactions .......................... (204,786) (625,820) 1,790,535 --
Net change in contract owners' equity ................ (170,063) (597,231) 1,999,144 --
Contract owners' equity beginning of period .......... 294,879 892,110 -- --
-------- -------- ---------- ----------
Contract owners' equity end of period ................ 124,816 294,879 1,999,144 --
======== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
PutInvFd PutVoyFd
------------------------------ -------------------------------
1997 1996 1997 1996
----------- ----------- ------------ -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 151,621 177,791 -- --
Mortality and expense charges (note 2) ............... (195,092) (215,499) (555,728) (405,453)
Administration charge (note 2)
Tier I ........................................... (40,182) (66,267) (309,069) (249,379)
Tier II .......................................... (9,409) (14,602) (83,941) (47,574)
Tier III ......................................... (2,362) (1,673) (30,283) (20,916)
Tier IV .......................................... (153) (181) (14,092) (11,410)
Tier V ........................................... (40,310) (36,112) (6,508) (1,654)
----------- ----------- ------------ -----------
Net investment activity ............................ (135,887) (156,543) (999,621) (736,386)
Proceeds from mutual fund shares sold ................ 4,687,426 16,120,252 3,521,888 29,750,407
Cost of mutual fund shares sold ...................... (3,887,599) (13,829,607) (2,454,300) (19,681,984)
----------- ----------- ------------ -----------
Realized gain (loss) on investments ................ 799,827 2,290,645 1,067,588 10,068,423
Change in unrealized gain (loss) on investments ...... 6,208,349 929,669 16,465,312 (7,567,617)
----------- ----------- ------------ -----------
Net gain (loss) on investments ..................... 7,008,176 3,220,314 17,532,900 2,500,806
----------- ----------- ------------ -----------
Reinvested capital gains ............................. 3,906,053 3,852,133 8,147,769 6,131,999
----------- ----------- ------------ -----------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 10,778,342 6,915,904 24,681,048 7,896,419
----------- ----------- ------------ -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 4,228,718 3,828,208 40,104,364 35,639,746
Transfers between funds .............................. 483,737 588,152 (7,100,256) 20,472,847
Redemptions .......................................... (4,259,983) (16,253,501) (8,346,447) (33,323,584)
Annual contract maintenance charge (note 2) .......... (897) (8,554) -- (20,997)
Contingent deferred sales charges (note 2) ........... (3,177) (13) -- --
Adjustments to maintain reserves ..................... (1,786) (1,802) (16,760) (1,550)
----------- ----------- ------------ -----------
Net equity transactions .......................... 446,612 (11,847,510) 24,640,901 22,766,462
Net change in contract owners' equity ................ 11,224,954 (4,931,606) 49,321,949 30,662,881
Contract owners' equity beginning of period .......... 33,758,690 38,690,296 88,557,114 57,894,233
----------- ----------- ------------ -----------
Contract owners' equity end of period ................ 44,983,644 33,758,690 137,879,063 88,557,114
=========== =========== ============ ===========
</TABLE>
20
<PAGE> 20
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
SEI500Ix SelGroFd
----------------------------- ----------------------------
1997 1996 1997 1996
----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 150,459 79,126 -- --
Mortality and expense charges (note 2) ............... (54,468) (20,251) (13,883) (14,589)
Administration charge (note 2)
Tier I ........................................... (10,682) (4,799) (5,127) (5,044)
Tier II .......................................... (712) (9,796) (533) (721)
Tier III ......................................... -- -- (319) (80)
Tier IV .......................................... -- -- (16) (17)
Tier V ........................................... (12,513) (802) (2,084) (2,372)
----------- ---------- ---------- ----------
Net investment activity ............................ 72,084 43,478 (21,962) (22,823)
Proceeds from mutual fund shares sold ................ 8,384,055 4,023,809 421,999 595,006
Cost of mutual fund shares sold ...................... (6,905,964) (3,238,353) (373,415) (641,612)
----------- ---------- ---------- ----------
Realized gain (loss) on investments ................ 1,478,091 785,456 48,584 (46,606)
Change in unrealized gain (loss) on investments ...... 859,863 (107,235) 75,942 315,182
----------- ---------- ---------- ----------
Net gain (loss) on investments ..................... 2,337,954 678,221 124,526 268,576
----------- ---------- ---------- ----------
Reinvested capital gains ............................. 101,303 51,614 331,508 207,272
----------- ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 2,511,341 773,313 434,072 453,025
----------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 9,263,710 2,458,442 172,142 245,420
Transfers between funds .............................. 5,120,331 1,885,669 (199,396) (168,392)
Redemptions .......................................... (5,549,796) (3,820,927) (202,858) (358,902)
Annual contract maintenance charge (note 2) .......... -- -- (395) (417)
Contingent deferred sales charges (note 2) ........... -- -- (79) --
Adjustments to maintain reserves ..................... 626 (988) (18) (253)
----------- ---------- ---------- ----------
Net equity transactions .......................... 8,834,871 522,196 (230,604) (282,544)
Net change in contract owners' equity ................ 11,346,212 1,295,509 203,468 170,481
Contract owners' equity beginning of period .......... 3,911,822 2,616,313 2,650,076 2,479,595
----------- ---------- ---------- ----------
Contract owners' equity end of period ................ $15,258,034 3,911,822 2,853,544 2,650,076
=========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
StComStk TRIntStk
---------------------------- ------------------------------
1997 1996 1997 1996
---------- ---------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 700 15,873 429,540 421,885
Mortality and expense charges (note 2) ............... (27,052) (15,027) (170,837) (207,424)
Administration charge (note 2)
Tier I ........................................... (24,346) (13,525) (72,216) (82,097)
Tier II .......................................... -- -- (16,170) (37,048)
Tier III ......................................... -- -- (5,875) (3,990)
Tier IV .......................................... -- -- (3,180) (2,932)
Tier V ........................................... -- -- (15,793) (16,774)
---------- ---------- ----------- -----------
Net investment activity ............................ (50,698) (12,679) 145,469 71,620
Proceeds from mutual fund shares sold ................ 9,411,196 314,741 21,375,609 28,109,045
Cost of mutual fund shares sold ...................... (8,332,762) (259,999) (18,182,586) (25,136,622)
---------- ---------- ----------- -----------
Realized gain (loss) on investments ................ 1,078,434 54,742 3,193,023 2,972,423
Change in unrealized gain (loss) on investments ...... (44,067) (56,531) (3,881,061) 1,623,911
---------- ---------- ----------- -----------
Net gain (loss) on investments ..................... 1,034,367 (1,789) (688,038) 4,596,334
---------- ---------- ----------- -----------
Reinvested capital gains ............................. 121,492 558,161 1,181,235 468,761
---------- ---------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 1,105,161 543,693 638,666 5,136,715
---------- ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 3,697,972 1,777,857 10,867,253 13,680,176
Transfers between funds .............................. 658,529 374,549 (6,714,250) 2,973,100
Redemptions .......................................... (9,645,678) (292,697) (5,866,407) (25,855,536)
Annual contract maintenance charge (note 2) .......... -- -- -- (12,178)
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... 93 (63) (6,971) 3,183
---------- ---------- ----------- -----------
Net equity transactions .......................... (5,289,084) 1,859,646 (1,720,375) (9,211,255)
Net change in contract owners' equity ................ (4,183,923) 2,403,339 (1,081,709) (4,074,540)
Contract owners' equity beginning of period .......... 4,183,923 1,780,584 31,295,943 35,370,483
---------- ---------- ----------- -----------
Contract owners' equity end of period ................ -- 4,183,923 30,214,234 31,295,943
========== ========== =========== ===========
</TABLE>
(Continued)
21
<PAGE> 21
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
TemForFd TemGISmCo
------------------------------ --------------------------
1997 1996 1997 1996
----------- ----------- ---------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 2,501,840 1,851,490 9,088 13,353
Mortality and expense charges (note 2) ............... (409,635) (317,757) (4,075) (3,928)
Administration charge (note 2)
Tier I ........................................... (250,509) (208,994) (3,668) (3,535)
Tier II .......................................... (65,577) (41,919) -- --
Tier III ......................................... (15,289) (10,927) -- --
Tier IV .......................................... (6,430) (5,788) -- --
Tier V ........................................... (2,329) (138) -- --
----------- ----------- ---------- --------
Net investment activity ............................ 1,752,071 1,265,967 1,345 5,890
Proceeds from mutual fund shares sold ................ 15,858,573 10,763,918 1,438,698 314,361
Cost of mutual fund shares sold ...................... (14,325,078) (10,261,033) (1,386,525) (310,261)
----------- ----------- ---------- --------
Realized gain (loss) on investments ................ 1,533,495 502,885 52,173 4,100
Change in unrealized gain (loss) on investments ...... (5,986,071) 6,814,567 (7,129) 52,775
----------- ----------- ---------- --------
Net gain (loss) on investments ..................... (4,452,576) 7,317,452 45,044 56,875
----------- ----------- ---------- --------
Reinvested capital gains ............................. 6,603,142 1,162,755 38,267 84,857
----------- ----------- ---------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 3,902,637 9,746,174 84,656 147,622
----------- ----------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 22,039,949 19,435,223 232,849 250,169
Transfers between funds .............................. (1,002,242) (2,100,929) (115,482) 176,387
Redemptions .......................................... (10,962,908) (10,304,746) (1,147,196) (193,568)
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... (201) (10) -- --
Adjustments to maintain reserves ..................... 1,523 (4,024) (193) (5,443)
----------- ----------- ---------- --------
Net equity transactions .......................... 10,076,121 7,025,514 (1,030,022) 227,545
Net change in contract owners' equity ................ 13,978,758 16,771,688 (945,366) 375,167
Contract owners' equity beginning of period .......... 66,740,239 49,968,551 945,366 570,199
----------- ----------- ---------- --------
Contract owners' equity end of period ................ $80,718,997 66,740,239 -- 945,366
=========== =========== ========== ========
</TABLE>
<TABLE>
<CAPTION>
ACVPBal ACVPCapAp
-------------------- ----------------------
1997 1996 1997 1996
------ ------ ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 51 51 -- --
Mortality and expense charges (note 2) ............... (27) (14) (383) (512)
Administration charge (note 2)
Tier I ........................................... (25) (13) (345) (461)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
------ ------ ------- -------
Net investment activity ............................ (1) 24 (728) (973)
Proceeds from mutual fund shares sold ................ -- -- 47,270 34,506
Cost of mutual fund shares sold ...................... -- -- (47,990) (26,357)
------ ------ ------- -------
Realized gain (loss) on investments ................ -- -- (720) 8,149
Change in unrealized gain (loss) on investments ...... 529 234 (3,222) (22,116)
------ ------ ------- -------
Net gain (loss) on investments ..................... 529 234 (3,942) (13,967)
------ ------ ------- -------
Reinvested capital gains ............................. 203 64 1,834 11,221
------ ------ ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 731 322 (2,836) (3,719)
------ ------ ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 2,004 2,004 32,191 34,289
Transfers between funds .............................. -- -- (33,826) --
Redemptions .......................................... -- -- (1,115) (33,937)
Annual contract maintenance charge (note 2) .......... -- -- (12) (21)
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... -- (1) (439) (6)
------ ------ ------- -------
Net equity transactions .......................... 2,004 2,003 (3,201) 325
Net change in contract owners' equity ................ 2,735 2,325 (6,037) (3,394)
Contract owners' equity beginning of period .......... 4,106 1,781 84,604 87,998
------ ------ ------- -------
Contract owners' equity end of period ................ 6,841 4,106 78,567 84,604
====== ====== ======= =======
</TABLE>
22
<PAGE> 22
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
DrySRGro DryStkIx
----------------------- ----------------------
1997 1996 1997 1996
------ --------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 32 -- 593 317
Mortality and expense charges (note 2) ............... (21) -- (186) (68)
Administration charge (note 2)
Tier I ........................................... (19) -- (167) (62)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
------ --------- ------- -------
Net investment activity ............................ (8) -- 240 187
Proceeds from mutual fund shares sold ................ -- -- 21 --
Cost of mutual fund shares sold ...................... -- -- (10) --
------ --------- ------- -------
Realized gain (loss) on investments ................ -- -- 11 --
Change in unrealized gain (loss) on investments ...... 607 -- 8,203 2,006
------ --------- ------- -------
Net gain (loss) on investments ..................... 607 -- 8,214 2,006
------ --------- ------- -------
Reinvested capital gains ............................. 251 -- 1,314 382
------ --------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 850 -- 9,768 2,575
------ --------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 5,227 -- 8,847 15,048
Transfers between funds .............................. 2,835 -- 16 2,746
Redemptions .......................................... -- -- -- --
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... 1 -- (3) (2)
------ --------- ------- -------
Net equity transactions .......................... 8,063 -- 8,860 17,792
Net change in contract owners' equity ................ 8,913 -- 18,628 20,367
Contract owners' equity beginning of period .......... -- -- 27,259 6,892
------ --------- ------- -------
Contract owners' equity end of period ................ $8,913 -- 45,887 27,259
====== ========= ======= =======
</TABLE>
<TABLE>
<CAPTION>
FidVIPAM FidVIPEI
---------------------- -----------------------
1997 1996 1997 1996
------- ------- -------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 832 443 1,638 81
Mortality and expense charges (note 2) ............... (152) (84) (656) (328)
Administration charge (note 2)
Tier I ........................................... (137) (76) (591) (296)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
------- ------- -------- -------
Net investment activity ............................ 543 283 391 (543)
Proceeds from mutual fund shares sold ................ -- -- 881 9,407
Cost of mutual fund shares sold ...................... -- -- (609) (7,567)
------- ------- -------- -------
Realized gain (loss) on investments ................ -- -- 272 1,840
Change in unrealized gain (loss) on investments ...... 2,692 1,605 21,307 4,892
------- ------- -------- -------
Net gain (loss) on investments ..................... 2,692 1,605 21,579 6,732
------- ------- -------- -------
Reinvested capital gains ............................. 2,086 365 8,234 2,320
------- ------- -------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 5,321 2,253 30,204 8,509
------- ------- -------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 9,177 9,305 46,876 43,516
Transfers between funds .............................. 95 -- 67 (1,480)
Redemptions .......................................... -- -- (143) (7,854)
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... -- -- (21) 8
------- ------- -------- -------
Net equity transactions .......................... 9,272 9,305 46,779 34,190
Net change in contract owners' equity ................ 14,593 11,558 76,983 42,699
Contract owners' equity beginning of period .......... 23,167 11,609 91,971 49,272
------- ------- -------- -------
Contract owners' equity end of period ................ 37,760 23,167 168,954 91,971
======= ======= ======== =======
</TABLE>
(Continued)
23
<PAGE> 23
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
FidVIPGr FidVIPHI
------------------------ ----------------------
1997 1996 1997 1996
--------- ------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 565 117 1,817 1,014
Mortality and expense charges (note 2) ............... (540) (297) (173) (75)
Administration charge (note 2)
Tier I ........................................... (486) (267) (156) (67)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
--------- ------- ------- -------
Net investment activity ............................ (461) (447) 1,488 872
Proceeds from mutual fund shares sold ................ 2,530 779 20 5,916
Cost of mutual fund shares sold ...................... (1,696) (541) (17) (5,666)
--------- ------- ------- -------
Realized gain (loss) on investments ................ 834 238 3 250
Change in unrealized gain (loss) on investments ...... 17,902 4,310 3,589 488
--------- ------- ------- -------
Net gain (loss) on investments ..................... 18,736 4,548 3,592 738
--------- ------- ------- -------
Reinvested capital gains ............................. 2,531 2,957 225 198
--------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 20,806 7,058 5,305 1,808
--------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 33,185 34,041 16,116 16,228
Transfers between funds .............................. (1,451) -- -- --
Redemptions .......................................... (284) (485) -- (6,450)
Annual contract maintenance charge (note 2) .......... -- -- -- --
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... 3 1 (2) (2)
--------- ------- ------- -------
Net equity transactions .......................... 31,453 33,557 16,114 9,776
Net change in contract owners' equity ................ 52,259 40,615 21,419 11,584
Contract owners' equity beginning of period .......... 80,978 40,363 24,013 12,429
--------- ------- ------- -------
Contract owners' equity end of period ................ $ 133,237 80,978 45,432 24,013
========= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
FidVIPOv NSATGvtBd
------------------------ ----------------------
1997 1996 1997 1996
-------- -------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. 1,845 741 825 681
Mortality and expense charges (note 2) ............... (679) (391) (67) (52)
Administration charge (note 2)
Tier I ........................................... (611) (352) (60) (47)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
-------- -------- ------- -------
Net investment activity ............................ 555 (2) 698 582
Proceeds from mutual fund shares sold ................ 1,605 7,065 2,513 --
Cost of mutual fund shares sold ...................... (1,311) (6,626) (2,354) --
-------- -------- ------- -------
Realized gain (loss) on investments ................ 294 439 159 --
Change in unrealized gain (loss) on investments ...... 2,792 7,875 270 (246)
-------- -------- ------- -------
Net gain (loss) on investments ..................... 3,086 8,314 429 (246)
-------- -------- ------- -------
Reinvested capital gains ............................. 7,326 815 -- --
-------- -------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 10,967 9,127 1,127 336
-------- -------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 37,048 41,252 3,575 3,305
Transfers between funds .............................. 9,863 (5,162) -- --
Redemptions .......................................... (581) (296) (2,506) --
Annual contract maintenance charge (note 2) .......... -- -- (32) (17)
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... 2 (8) (1) (1)
-------- -------- ------- -------
Net equity transactions .......................... 46,332 35,786 1,036 3,287
Net change in contract owners' equity ................ 57,299 44,913 2,163 3,623
Contract owners' equity beginning of period .......... 102,297 57,384 12,618 8,995
-------- -------- ------- -------
Contract owners' equity end of period ................ 159,596 102,297 14,781 12,618
======== ======== ======= =======
</TABLE>
24
<PAGE> 24
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
NSATMyMkt NSATTotRe
----------------------- -----------------------
1997 1996 1997 1996
-------- ------- -------- -------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ................................. $ 1,378 1,371 1,290 733
Mortality and expense charges (note 2) ............... (135) (138) (444) (179)
Administration charge (note 2)
Tier I ........................................... (121) (124) (399) (161)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
-------- ------- -------- -------
Net investment activity ............................ 1,122 1,109 447 393
Proceeds from mutual fund shares sold ................ 37,780 2,529 374 3,134
Cost of mutual fund shares sold ...................... (37,780) (2,529) (234) (2,334)
-------- ------- -------- -------
Realized gain (loss) on investments ................ -- -- 140 800
Change in unrealized gain (loss) on investments ...... -- -- 13,515 3,998
-------- ------- -------- -------
Net gain (loss) on investments ..................... -- -- 13,655 4,798
-------- ------- -------- -------
Reinvested capital gains ............................. -- -- 4,114 1,755
-------- ------- -------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 1,122 1,109 18,216 6,946
-------- ------- -------- -------
Equity transactions:
Purchase payments received from
contract owners .................................... 8,580 15,079 27,743 18,485
Transfers between funds .............................. (15,000) 2,672 36,972 1,224
Redemptions .......................................... (22,757) -- (149) (3,122)
Annual contract maintenance charge (note 2) .......... (5) -- (4) (4)
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... (7) 4 11 (1)
-------- ------- -------- -------
Net equity transactions .......................... (29,189) 17,755 64,573 16,582
Net change in contract owners' equity ................ (28,067) 18,864 82,789 23,528
Contract owners' equity beginning of period .......... 36,420 17,556 46,482 22,954
-------- ------- -------- -------
Contract owners' equity end of period ................ $ 8,353 36,420 129,271 46,482
======== ======= ======== =======
</TABLE>
<TABLE>
<CAPTION>
NBAMTGro NBAMTLMat
---------------------- ---------------------
1997 1996 1997 1996
------- ------- ------ ------
<S> <C> <C> <C> <C>
Investment activity:
Reinvested dividends ................................. -- 16 441 294
Mortality and expense charges (note 2) ............... (114) (209) (44) (23)
Administration charge (note 2)
Tier I ........................................... (103) (188) (40) (21)
Tier II .......................................... -- -- -- --
Tier III ......................................... -- -- -- --
Tier IV .......................................... -- -- -- --
Tier V ........................................... -- -- -- --
------- ------- ------ ------
Net investment activity ............................ (217) (381) 357 250
Proceeds from mutual fund shares sold ................ 289 34,734 3,118 --
Cost of mutual fund shares sold ...................... (224) (30,072) (3,150) --
------- ------- ------ ------
Realized gain (loss) on investments ................ 65 4,662 (32) --
Change in unrealized gain (loss) on investments ...... 3,892 (5,353) 176 (67)
------- ------- ------ ------
Net gain (loss) on investments ..................... 3,957 (691) 144 (67)
------- ------- ------ ------
Reinvested capital gains ............................. 1,560 3,808 -- --
------- ------- ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 5,300 2,736 501 183
------- ------- ------ ------
Equity transactions:
Purchase payments received from
contract owners .................................... 6,212 8,488 4,298 3,443
Transfers between funds .............................. -- -- (3,114) --
Redemptions .......................................... (143) (34,697) -- --
Annual contract maintenance charge (note 2) .......... (10) (19) -- --
Contingent deferred sales charges (note 2) ........... -- -- -- --
Adjustments to maintain reserves ..................... 1 -- -- --
------- ------- ------ ------
Net equity transactions .......................... 6,060 (26,228) 1,184 3,443
Net change in contract owners' equity ................ 11,360 (23,492) 1,685 3,626
Contract owners' equity beginning of period .......... 16,877 40,369 6,755 3,129
------- ------- ------ ------
Contract owners' equity end of period ................ 28,237 16,877 8,440 6,755
======= ======= ====== ======
</TABLE>
(Continued)
25
<PAGE> 25
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1997 AND 1996
<TABLE>
<CAPTION>
NBAMTPart
-----------------------
1997 1996
-------- -------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................................. $ 47 26
Mortality and expense charges (note 2) ............... (104) (55)
Administration charge (note 2)
Tier I ........................................... (93) (49)
Tier II .......................................... -- --
Tier III ......................................... -- --
Tier IV .......................................... -- --
Tier V ........................................... -- --
-------- -------
Net investment activity ............................ (150) (78)
Proceeds from mutual fund shares sold ................ 346 472
Cost of mutual fund shares sold ...................... (161) (327)
-------- -------
Realized gain (loss) on investments ................ 185 145
Change in unrealized gain (loss) on investments ...... 4,404 2,418
-------- -------
Net gain (loss) on investments ..................... 4,589 2,563
-------- -------
Reinvested capital gains ............................. 729 324
-------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ............... 5,168 2,809
-------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................................... 6,119 4,697
Transfers between funds .............................. 3,543 --
Redemptions .......................................... (167) (471)
Annual contract maintenance charge (note 2) .......... -- --
Contingent deferred sales charges (note 2) ........... -- --
Adjustments to maintain reserves ..................... (2) (2)
-------- -------
Net equity transactions .......................... 9,493 4,224
Net change in contract owners' equity ................ 14,661 7,033
Contract owners' equity beginning of period .......... 14,770 7,737
-------- -------
Contract owners' equity end of period ................ $ 29,431 14,770
======== =======
</TABLE>
See accompanying notes to financial statements.
26
<PAGE> 26
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997 AND 1996
(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)
The Institutional Shares of Federated GNMA Trust (FedGNMA)
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)
27
<PAGE> 27
Fidelity OTC Portfolio (FidOTC)
Fidelity Puritan(R) Fund (FidPurtn)
The Growth Fund of America(R), Inc. (GroFdAm)
(only available for certain contracts issued beginning January
1, 1994)
The Income Fund of America(R), Inc. (IncFdAm)
(only available for certain contracts issued beginning January
1, 1994)
INVESCO Industrial Income Fund, Inc. (InvIndInc)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd)
MAS Funds - Fixed Income Portfolio (MASFIP)
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
MFS(R) High Income Fund - Class A (MFSHiInc)
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
Nationwide(R) Bond Fund (NWBdFd) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) Fund (NWFund) (managed for a fee by an affiliated
investment advisor)
Nationwide(R) Growth Fund (NWGroFd) (managed for a fee by an
affiliated investment advisor)
Nationwide(R) Money Market Fund (NWMyMkt) (managed for a fee by an
affiliated investment advisor)
Neuberger & Berman Guardian Fund (NBGuard)
Neuberger & Berman Manhattan Fund (NBManhFd)
Neuberger & Berman Partners Fund (NBPartFd)
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)
Dreyfus Stock Index Fund (DryStkIx)
28
<PAGE> 28
Portfolios of the Fidelity Variable Insurance Products Fund I & II
(Fidelity VIP);
Fidelity VIP - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Funds of the Nationwide Separate Account Trust (Nationwide SAT)
(managed for a fee by an affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman AMT);
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger & Berman AMT - Limited Maturity Bond Portfolio
(NBAMTLMat)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
All of the above funds were being utilized as of December 31, 1997,
except AIM Equity Funds, Inc. - AIM Weingarten Fund - Institutional
Class (AIMWein), Fidelity OTC Portfolio (FidOTC), Fidelity Puritan(R)
Fund (FidPurtn), Nationwide SAT - Capital Appreciation Fund
(NSATCapAp), Strong Common Stock Fund, Inc. (StComStk) and Templeton
Global Smaller Companies Fund, Inc. - Class I (TemGlSmCo)
The contract owners' equity is affected by the investment results of
each fund, equity transactions by contract owners and certain expenses
(see note 2). The accompanying financial statements include only
contract owners' purchase payments pertaining to the variable portions
of their contracts and exclude any purchase payments for fixed dollar
benefits, the latter being included in the accounts of the Company.
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at December 31, 1997. 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.
(f) Reclassifications
Certain 1996 amounts have been reclassified to conform with the current
year presentation.
29
<PAGE> 29
(2) EXPENSES
Net purchase payments received for contracts issued before July 1, 1980,
represent contributions by the contract owners less a sales charge by the
Company of not more than 5%, to cover sales expenses. The Company does not
deduct a sales charge from purchase payments for contracts issued after
July 1, 1980. However, if any part of the contract value representing
participant accounts that have been established under the contracts and
held in the Account for less than sixteen (16) years is surrendered, the
Company will, with certain exceptions, assess a contingent deferred sales
charge. This charge will be equal to not more than 5% of the lesser of all
purchase payments received on behalf of the surrendering participant or
contract owner prior to the date of the request for surrender, or the
amount surrendered. Sales charges or contingent deferred sales charges of
less than 5% reflect actual variations in expense (usually reduced agents'
commissions). No sales charges are deducted on redemptions used to purchase
units in the fixed investment options of the Company. Sales charges may be
reduced or eliminated upon negotiated conversion of the contracts to other
investment programs offered by the Company or its affiliates.
The following contract charges are deducted by the Company on contracts
issued before July 1, 1980: (a) an annual contract maintenance charge of $8
assessed by surrendering units; (b) a charge for mortality and expense risk
assessed through the daily unit value calculation equal to an annual rate
of 0.95%; and (c) a charge on complete redemption, equal to the lesser of
$8 or 2% of the value of the account, except when such redemption occurs
within 31 days of the anniversary date of the contract.
For contracts issued beginning July 1, 1980 through April 30, 1991,
contract charges include: (a) an annual contract maintenance charge of $12
or $15, based upon administrative services provided, assessed by
surrendering units; and (b) a charge for mortality and expense risk
assessed through the daily unit value calculation equal to an annual rate
of 0.95%.
For contracts issued on or after May 1, 1991, contract charges include a
mortality risk charge, an expense risk charge and an administration charge
assessed through the daily unit value calculation equal to an annual rate
of 0.35%, 0.15% and 0.45% respectively. Beginning November 1, 1996, the
administration charge was based upon the aggregate balance of assets held
under the contract by each contract owner as follows:
<TABLE>
<CAPTION>
Expense Administration
Tier Assets (Millions) Charge
<S> <C> <C>
I Up to $10 .45%
II Over $10 to $25 .40%
III Over $25 to $50 .30%
IV Over $50 to $150 .20%
V Over $150 .15%
</TABLE>
The administration charge implemented on November 1, 1996 was based on the
June 30, 1996 asset balance. Thereafter, the administrative charge will be
determined using the December 31 asset balance and is effective at the next
expense tier on the following May 1.
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.
30
<PAGE> 30
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1997.
<TABLE>
<CAPTION>
ANNUAL
TIER I (JUNE 30, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
---------------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation
Fund - Institutional Class ............ 1,753,409 $ 2.309709 $ 4,049,865 12%
American Century: Twentieth Century
Growth Fund ........................... 10,995,755 5.842997 64,248,163 28%
American Century: Twentieth Century
Select Fund ........................... 23,381 2.058976 48,141 31%
American Century: Twentieth Century
Ultra Fund ............................ 73,545,284 2.524538 185,667,864 22%
The Bond Fund of America(SM), Inc. ....... 3,207,320 2.332586 7,481,350 8%
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class 74,563 2.935219 218,859 29%
Dreyfus S&P 500 Index Fund ............... 8,503,701 1.217658 10,354,600 22%(a)
The Dreyfus Third Century Fund, Inc. ..... 5,074,527 3.532278 17,924,640 28%
Evergreen Income and Growth Fund -
Class Y ............................... 914,194 2.422617 2,214,742 24%
The Institutional Shares of Federated
GNMA Trust ............................ 688,011 1.393241 958,565 8%
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ...... 1,373,391 1.214470 1,667,942 6%
Fidelity Asset Manager(TM) ............... 2,796,412 1.517270 4,242,912 21%
Fidelity Capital & Income Fund ........... 102,795 4.654233 478,432 14%
Fidelity Contrafund ...................... 62,958,434 2.509557 157,997,779 22%
Fidelity Equity-Income Fund .............. 21,606,856 6.900916 149,107,098 29%
Fidelity Magellan(R) Fund ................ 55,482,152 2.398961 133,099,519 25%
The Growth Fund of America(R), Inc. ...... 2,642,923 3.382686 8,940,179 26%
The Income Fund of America(R), Inc. ...... 4,752,235 2.614863 12,426,443 21%
INVESCO Industrial Income Fund, Inc ...... 7,749,404 2.102364 16,292,068 25%
Janus Fund ............................... 22,289,770 1.948907 43,440,689 22%
Janus Twenty Fund ........................ 7,662 2.147649 16,455 28%
MAS Funds - Fixed Income Portfolio ....... 1,341,493 1.335173 1,791,125 9%
MFS(R) Growth Opportunities Fund -
Class A ............................... 513,453 9.012670 4,627,582 22%
MFS(R) High Income Fund - Class A ........ 81,409 6.168371 502,161 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 142,697 15.968069 2,278,596 47%
Nationwide(R) Fund ....................... 1,840,610 20.697282 38,095,624 38%
Nationwide(R) Growth Fund ................ 1,084,820 3.854877 4,181,848 25%
Nationwide(R) Money Market Fund .......... 7,176,896 3.003821 21,558,111 4%
Neuberger & Berman Manhattan Fund ........ 39,662 3.146989 124,816 28%
Neuberger & Berman Partners Fund ......... 1,370,455 1.458745 1,999,144 28%
Putnam Investors Fund - Class A .......... 508,161 18.110411 9,203,005 33%
Putnam Voyager Fund - Class A ............ 22,283,254 3.837109 85,503,274 25%
</TABLE>
(Continued)
31
<PAGE> 31
<TABLE>
<S> <C> <C> <C> <C>
SEI Index Funds - S&P 500 Index Portfolio 150,050 3.905079 585,957 32%
Seligman Growth Fund, Inc - Class A. ..... 93,124 12.541848 1,167,947 17%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 7,561,237 1.843420 13,938,536 2%
Templeton Foreign Fund - Class I ......... 28,352,933 1.874393 53,144,539 6%
American Century VP - American Century
VP Balanced ........................... 4,531 1.509759 6,841 15%
American Century VP - American Century
VP Capital Appreciation ............... 50,033 1.570313 78,567 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. ..................... 4,478 1.990292 8,913 27%
Dreyfus Stock Index Fund ................. 21,714 2.113257 45,887 32%
Fidelity VIP - Asset Manager Portfolio ... 25,131 1.502515 37,760 20%
Fidelity VIP - Equity-Income Portfolio ... 90,224 1.872610 168,954 27%
Fidelity VIP - Growth Portfolio .......... 70,171 1.898743 133,237 22%
Fidelity VIP - High Income Portfolio ..... 29,112 1.560592 45,432 17%
Fidelity VIP - Overseas Portfolio ........ 125,065 1.276107 159,596 11%
Nationwide SAT - Government Bond Fund .... 8,433 1.752816 14,781 9%
Nationwide SAT - Money Market Fund ....... 6,361 1.313205 8,353 4%
Nationwide SAT - Total Return Fund ....... 42,827 3.018448 129,271 28%
Neuberger & Berman AMT -
Growth Portfolio ...................... 12,306 2.294545 28,237 28%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio ....... 7,063 1.194950 8,440 6%
Neuberger & Berman AMT -
Partners Portfolio .................... 13,504 2.179432 29,431 30%
========== ========= --------------
Sub-Total Tier I (June 30, 1996) ....... $1,060,482,270
==============
</TABLE>
32
<PAGE> 32
<TABLE>
<CAPTION>
ANNUAL
TIER II (JUNE 30, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
----------------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
American Century: Twentieth Century
Growth Fund ........................... 3,903,936 $ 5.846396 $ 22,823,956 28%
American Century: Twentieth Century
Ultra Fund ............................ 19,732,726 2.526007 49,845,004 22%
The Bond Fund of America(SM), Inc. ....... 844,897 2.333980 1,971,973 8%
Davis New York Venture Fund, Inc. -
Class A ............................... 199,664 2.233818 446,013 32%
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class 15,400 2.936925 45,229 29%
Dreyfus Cash Management - Class A ........ 231,535 1.212863 280,820 5%
Dreyfus S&P 500 Index Fund ............... 3,436,138 1.218064 4,185,436 22%(a)
The Dreyfus Third Century Fund, Inc. ..... 1,286,026 3.534332 4,545,243 28%
Evergreen Income and Growth Fund -
Class Y ............................... 388,299 2.424026 941,247 24%
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ...... 323,646 1.215186 393,290 6%
Fidelity Asset Manager(TM) ............... 633,745 1.518153 962,122 21%
Fidelity Capital & Income Fund ........... 36,724 4.656974 171,023 14%
Fidelity Contrafund ...................... 15,968,503 2.511017 40,097,182 22%
Fidelity Equity-Income Fund .............. 7,169,293 6.904928 49,503,452 29%
Fidelity Magellan(R) Fund ................ 11,589,048 2.400356 27,817,841 25%
The Growth Fund of America(R), Inc. ...... 650,012 3.384653 2,200,065 26%
The Income Fund of America(R), Inc. ...... 1,325,543 2.616384 3,468,129 21%
INVESCO Industrial Income Fund, Inc ...... 1,917,268 2.103587 4,033,140 25%
Janus Fund ............................... 5,595,764 1.950041 10,911,969 22%
MAS Funds - Fixed Income Portfolio ....... 296,496 1.335950 396,104 9%
MFS(R) Growth Opportunities Fund -
Class A ............................... 317,319 9.017913 2,861,555 22%
MFS(R) High Income Fund - Class A ........ 25,730 6.172004 158,806 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 19,733 15.977352 315,281 47%
Nationwide(R) Fund ....................... 509,179 20.709316 10,544,749 38%
Nationwide(R) Growth Fund ................ 357,289 3.857119 1,378,106 25%
Nationwide(R) Money Market Fund .......... 6,441,740 3.005590 19,361,229 4%
Putnam Investors Fund - Class A .......... 133,581 18.120944 2,420,614 33%
Putnam Voyager Fund - Class A ............ 5,930,438 3.839341 22,768,974 25%
SEI Index Funds - S&P 500 Index Portfolio 52,580 3.907349 205,448 32%
Seligman Growth Fund, Inc - Class A. ..... 10,649 12.549144 133,636 17%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 1,859,628 1.844492 3,430,069 2%
Templeton Foreign Fund - Class I ......... 7,960,130 1.875484 14,929,096 6%
========== ========= ------------
Sub-Total Tier II (June 30, 1996) ...... $303,546,801
============
</TABLE>
(Continued)
33
<PAGE> 33
<TABLE>
<CAPTION>
ANNUAL
TIER II (DECEMBER 31, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
--------------------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
American Century: Twentieth Century
Growth Fund ........................... 337,408 $ 5.844955 $1,972,135 28%
American Century: Twentieth Century
Ultra Fund ............................ 2,468,617 2.525385 6,234,208 22%
The Bond Fund of America(SM), Inc. ....... 110,244 2.333393 257,243 8%
Delaware Group Decatur Fund, Inc.-
Decatur Income Fund Institutional Class 262 2.936202 769 29%
Dreyfus S&P 500 Index Fund ............... 287,240 1.218064 349,877 22%(a)
The Dreyfus Third Century Fund, Inc. ..... 196,674 3.533462 694,940 28%
Evergreen Income and Growth Fund -
Class Y ............................... 62,878 2.423429 152,380 24%
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ...... 76,514 1.214882 92,955 6%
Fidelity Asset Manager(TM) ............... 45,091 1.517779 68,438 21%
Fidelity Capital & Income Fund ........... 386 4.655810 1,797 14%
Fidelity Contrafund ...................... 2,303,992 2.510398 5,783,937 22%
Fidelity Equity-Income Fund .............. 617,355 6.903229 4,261,743 29%
Fidelity Magellan(R) Fund ................ 1,313,023 2.399765 3,150,947 25%
The Growth Fund of America(R), Inc. ...... 50,498 3.383820 170,876 26%
The Income Fund of America(R), Inc. ...... 129,547 2.615739 338,861 21%
INVESCO Industrial Income Fund, Inc ...... 264,870 2.103069 557,040 25%
Janus Fund ............................... 820,870 1.949561 1,600,336 22%
MAS Funds - Fixed Income Portfolio ....... 10,073 1.335621 13,454 9%
MFS(R) Growth Opportunities Fund -
Class A ............................... 28,071 9.015691 253,079 22%
MFS(R) High Income Fund - Class A ........ 2,719 6.170461 16,777 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 3,342 15.973419 53,383 47%
Nationwide(R) Fund ....................... 74,871 20.704221 1,550,146 38%
Nationwide(R) Growth Fund ................ 26,821 3.856169 103,426 25%
Nationwide(R) Money Market Fund .......... 116,705 3.004839 350,680 4%
Putnam Investors Fund - Class A .......... 10,065 18.116482 182,342 33%
Putnam Voyager Fund - Class A ............ 682,444 3.838394 2,619,489 25%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 233,087 1.844038 429,821 2%
Templeton Foreign Fund - Class I ......... 1,104,154 1.875022 2,070,313 6%
========== ========== -----------
Sub-Total Tier II (December 31, 1996) .. $33,331,392
===========
</TABLE>
34
<PAGE> 34
<TABLE>
<CAPTION>
ANNUAL
TIER III (JUNE 30, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
------------------------------------ ---------- ----------- ------------
<S> <C> <C> <C> <C>
American Century: Twentieth Century
Growth Fund ........................... 1,540,193 $ 5.853199 $ 9,015,056 28%
American Century: Twentieth Century
Ultra Fund ............................ 11,990,091 2.528946 30,322,293 22%
The Bond Fund of America(SM), Inc. ......... 379,522 2.336766 886,854 8%
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class 6,036 2.940341 17,748 29%
Dreyfus S&P 500 Index Fund ............... 2,297,690 1.218878 2,800,604 22%(a)
The Dreyfus Third Century Fund, Inc. ..... 912,241 3.538445 3,227,915 28%
Evergreen Income and Growth Fund -
Class Y ............................... 79,190 2.426846 192,182 25%
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ...... 188,738 1.216616 229,622 6%
Fidelity Asset Manager(TM) ................. 299,273 1.519919 454,871 21%
Fidelity Capital & Income Fund ........... 22,232 4.662457 103,656 14%
Fidelity Contrafund ...................... 9,637,261 2.513939 24,227,486 22%
Fidelity Equity-Income Fund .............. 3,057,190 6.912960 21,134,232 29%
Fidelity Magellan(R) Fund ................ 6,180,393 2.403149 14,852,405 26%
The Growth Fund of America(R), Inc. ...... 496,036 3.388591 1,680,863 26%
The Income Fund of America(R), Inc. ...... 490,571 2.619427 1,285,015 21%
INVESCO Industrial Income Fund, Inc ...... 473,406 2.106034 997,009 25%
Janus Fund ............................... 2,423,723 1.952310 4,731,859 22%
MAS Funds - Fixed Income Portfolio ....... 248,580 1.337506 332,477 9%
MFS(R) Growth Opportunities Fund -
Class A ............................... 178,707 9.028407 1,613,440 22%
MFS(R) High Income Fund - Class A ........ 6,564 6.179271 40,561 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 12,152 15.995935 194,383 47%
Nationwide(R) Fund ....................... 329,293 20.733404 6,827,365 39%
Nationwide(R) Growth Fund ................ 93,047 3.861607 359,311 25%
Nationwide(R) Money Market Fund .......... 909,979 3.009129 2,738,244 4%
Putnam Investors Fund - Class A .......... 39,280 18.142029 712,619 33%
Putnam Voyager Fund - Class A ............ 3,166,939 3.843809 12,173,109 25%
Seligman Growth Fund, Inc - Class A ...... 2,475 12.563748 31,095 17%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 1,036,525 1.846640 1,914,089 2%
Templeton Foreign Fund - Class I ......... 2,623,603 1.877667 4,926,253 6%
========== ========== ------------
Sub-Total Tier III (June 30, 1996) ..... $148,022,616
============
</TABLE>
(Continued)
35
<PAGE> 35
<TABLE>
<CAPTION>
ANNUAL
TIER III (DECEMBER 31, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
---------------------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
American Century: Twentieth Century
Growth Fund ........................... 105,486 $ 5.850316 $ 617,126 28%
American Century: Twentieth Century
Ultra Fund ............................ 322,005 2.527701 813,932 22%
The Bond Fund of America(SM), Inc. ......... 10,951 2.335593 25,577 8%
Dreyfus S&P 500 Index Fund ............... 36,388 1.218878 44,353 22%(a)
The Dreyfus Third Century Fund, Inc. ..... 20,119 3.536702 71,155 28%
Evergreen Income and Growth Fund -
Class Y ............................... 9,663 2.425651 23,439 25%
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ...... 1,612 1.216009 1,960 6%
Fidelity Asset Manager(TM) ................. 62,190 1.519171 94,477 21%
Fidelity Capital & Income Fund ........... 39,699 4.660128 185,002 14%
Fidelity Contrafund ...................... 186,236 2.512701 467,955 22%
Fidelity Equity-Income Fund .............. 189,228 6.909557 1,307,482 29%
Fidelity Magellan(R) Fund ................ 244,774 2.401965 587,939 26%
The Growth Fund of America(R), Inc. ...... 6,443 3.386923 21,822 26%
The Income Fund of America(R), Inc. ...... 24,783 2.618138 64,885 21%
INVESCO Industrial Income Fund, Inc ...... 5,633 2.104998 11,857 25%
Janus Fund ............................... 174,631 1.951349 340,766 22%
MAS Funds - Fixed Income Portfolio ....... 3,162 1.336847 4,227 9%
MFS(R) Growth Opportunities Fund -
Class A ............................... 36,452 9.023960 328,941 22%
MFS(R) High Income Fund - Class A ........ 16,908 6.176184 104,427 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 150 15.988060 2,398 47%
Nationwide(R) Fund ....................... 16,906 20.723203 350,346 38%
Nationwide(R) Growth Fund ................ 22,824 3.859705 88,094 25%
Nationwide(R) Money Market Fund .......... 68,201 3.007626 205,123 4%
Putnam Investors Fund - Class A .......... 9,478 18.133095 171,865 33%
Putnam Voyager Fund - Class A ............ 95,529 3.841914 367,014 25%
Seligman Growth Fund, Inc - Class A ...... 6,424 12.557561 80,670 17%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 15,280 1.845731 28,203 2%
Templeton Foreign Fund - Class I ......... 147,481 1.876743 276,784 6%
======== ========= ----------
Sub-Total Tier III (December 31, 1996) . $6,687,819
==========
</TABLE>
36
<PAGE> 36
<TABLE>
<CAPTION>
ANNUAL
TIER IV (JUNE 30, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
----------------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
American Century: Twentieth Century
Growth Fund ........................... 758,360 $ 5.860011 $ 4,443,998 28%
American Century: Twentieth Century
Select Fund ........................... 1,088,027 2.064969 2,246,742 31%
American Century: Twentieth Century
Ultra Fund ............................ 4,964,637 2.531889 12,569,910 22%
The Bond Fund of America(SM), Inc. ......... 55,496 2.339554 129,836 8%
Dreyfus S&P 500 Index Fund ............... 1,092,654 1.219691 1,332,700 22%(a)
The Dreyfus Third Century Fund, Inc. ..... 428,452 3.542562 1,517,818 28%
Evergreen Income and Growth Fund -
Class Y ............................... 21,853 2.429669 53,096 25%
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares ...... 114,003 1.218047 138,861 6%
Fidelity Asset Manager(TM) ................. 538,872 1.521688 819,995 21%
Fidelity Capital & Income Fund ........... 22,307 4.667941 104,128 14%
Fidelity Contrafund ...................... 4,750,222 2.516865 11,955,667 22%
Fidelity Equity-Income Fund .............. 2,389,431 6.921001 16,537,254 29%
Fidelity Magellan(R) Fund ................ 3,706,622 2.405944 8,917,925 26%
The Growth Fund of America(R), Inc. ...... 170,540 3.392534 578,563 26%
The Income Fund of America(R), Inc. ...... 294,406 2.622475 772,072 21%
INVESCO Industrial Income Fund, Inc ...... 473,795 2.108484 998,989 26%
Janus Fund ............................... 2,404,760 1.954582 4,700,301 22%
MAS Funds - Fixed Income Portfolio ....... 91,023 1.339063 121,886 9%
MFS(R) Growth Opportunities Fund -
Class A ............................... 5,735 9.038914 51,838 22%
MFS(R) High Income Fund - Class A ........ 105 6.186539 650 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 285 16.014540 4,564 47%
Nationwide(R) Fund ....................... 142,531 20.757521 2,958,590 39%
Nationwide(R) Growth Fund ................ 339,294 3.866100 1,311,745 25%
Nationwide(R) Money Market Fund .......... 985,611 3.012668 2,969,319 4%
Putnam Investors Fund - Class A .......... 4,776 18.163138 86,747 34%
Putnam Voyager Fund - Class A ............ 2,223,516 3.848283 8,556,719 25%
Seligman Growth Fund, Inc - Class A ...... 684 12.578369 8,604 17%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 783,958 1.848790 1,449,374 2%
Templeton Foreign Fund - Class I ......... 1,763,615 1.879853 3,315,337 6%
========== ========== -----------
Sub-Total Tier IV (June 30, 1996) ...... $88,653,228
===========
</TABLE>
(Continued)
37
<PAGE> 37
<TABLE>
<CAPTION>
ANNUAL
TIER V (JUNE 30, 1996, SEE NOTE 2) UNITS UNIT VALUE RETURN
---------------------------------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation
Fund - Institutional Class ............ 2,389,104 $ 2.318983 $ 5,540,292 13%
American Century: Twentieth Century
Growth Fund ........................... 6,244,941 5.866443 36,635,590 28%
American Century: Twentieth Century
Ultra Fund ............................ 19,414,868 2.534668 49,210,245 22%
The Bond Fund of America(SM), Inc. ......... 736,645 2.342166 1,725,345 9%
The Dreyfus Third Century Fund, Inc. ..... 2,302,999 3.546449 8,167,469 29%
Evergreen Income and Growth Fund -
Class Y ............................... 433,149 2.432337 1,053,564 25%
Fidelity Capital & Income Fund ........... 70,677 4.673077 330,279 14%
Fidelity Contrafund ...................... 3,990,922 2.519627 10,055,635 22%
Fidelity Equity-Income Fund .............. 7,574,670 6.928596 52,481,828 29%
Fidelity Growth & Income Portfolio ....... 3,435,213 2.591531 8,902,461 29%
Fidelity Magellan(R) Fund ................ 16,840,881 2.408585 40,562,693 26%
MFS(R) Growth Opportunities Fund -
Class A ............................... 1,999,203 9.048839 18,090,466 22%
MFS(R) High Income Fund - Class A ........ 500,487 6.193345 3,099,689 12%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 271,730 16.032114 4,356,406 47%
Nationwide(R) Bond Fund .................. 51,355 2.175755 111,736 9%
Nationwide(R) Fund ....................... 721,864 20.780295 15,000,547 39%
Nationwide(R) Growth Fund ................ 658,443 3.870345 2,548,402 25%
Nationwide(R) Money Market Fund .......... 3,131,282 3.015983 9,443,893 4%
Neuberger & Berman Guardian Fund ......... 614,486 1.601873 984,329 17%
Putnam Investors Fund - Class A .......... 1,771,233 18.183069 32,206,452 34%
Putnam Voyager Fund - Class A ............ 1,528,999 3.852510 5,890,484 25%
SEI Index Funds - S&P 500 Index Portfolio 3,689,771 3.920739 14,466,629 32%
Seligman Growth Fund, Inc - Class A ...... 113,689 12.592179 1,431,592 17%
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) ........... 4,875,751 1.850821 9,024,142 2%
Templeton Foreign Fund - Class I ......... 1,092,861 1.881918 2,056,675 6%
========== ========== -----------
Sub-Total Tier V (June 30, 1996) ....... 333,376,843
==============
Total Contract Owners' Equity ........ $1,974,100,969
==============
</TABLE>
(a) This investment option was not being utilized for the entire period.
38
<PAGE> 38
Independent Auditors' Report
The Board of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide DC Variable Account:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide DC Variable Account as of December 31,
1997, and the related statements of operations and changes in contract owners'
equity for each of the years in the two year period then ended. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of December 31, 1997, by correspondence with
the transfer agents of the underlying mutual funds. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Nationwide DC Variable
Account as of December 31, 1997, and the results of its operations and its
changes in contract owners' equity for each of the years in the two year period
then ended in conformity with generally accepted accounting principles.
KPMG Peat Marwick LLP
Columbus, Ohio
February 6, 1998
39
<PAGE> 39
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
