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Previous: NACO VARIABLE ACCOUNT OF NATIONWIDE LIFE INS CO, N-30D, 1999-03-09 |
Next: NCR CORP, DEFA14A, 1999-03-09 |
<PAGE> 1
NATIONWIDE
DC VARIABLE
ACCOUNT
[PICTURE]
ANNUAL REPORT
TO
PARTICIPANTS AND RETIRED PARTICIPANTS
DECEMBER 31, 1998
[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-723-Z (12/88)
<PAGE> 2
[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PICTURE]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you the 1998 annual
report of the Nationwide DC Variable Account.
Equity markets again defied the odds in 1998 to tally a fourth straight year of
double-digit gains, as measured by the major indices. This surprise came
following the breathtaking correction during the third quarter that gave us a
broad double-digit retreat. Fixed income investments also provided respectable
returns in 1998, supported by the continued low inflationary environment and
favorable Federal Reserve actions.
The performance of the American economy continues strong into 1999. However, we
believe the persisting slump in Asia and recent difficulties in Latin America
will inevitably take their toll and dampen growth in the United States. This
moderation, we think, will be healthy for our economy and get us back to a more
sustainable growth level. We look for interest rates to continue within the
range of the recent past, and we expect inflation to remain subdued. Moreover,
we remain optimistic about long-term prospects for U.S. business activity;
holders of financial assets should continue to profit from the anticipated
favorable investment climate.
We are pleased you have chosen our Company to provide the investment products
and services to help you meet your retirement savings and financial planning
goals.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
February 16, 1999
3
<PAGE> 3
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 10
STATEMENTS OF OPERATIONS AND CHANGES
IN CONTRACT OWNERS' EQUITY ................................. 14
NOTES TO FINANCIAL STATEMENTS .............................. 36
INDEPENDENT AUDITORS' REPORT ............................... 53
</TABLE>
4
<PAGE> 4
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
ninety mutual funds from twenty-four mutual fund houses.
The Annual Report has two major financial sections.
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
This statement, beginning on page 10, 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, 1998. The funds are generally presented in
alphabetical order. The market value of the assets change as the underlying
mutual fund shares change in value. As contract owners make exchanges between
the funds, the number of shares in each fund increases and decreases. When money
is deposited (withdrawn) by contract owners, shares of the mutual funds are
bought (sold) by the Account. The total market value of the funds is equal to
the Total investments.
Accounts receivable, if applicable, is an asset of the Account for money market
fund shares or reinvested dividend shares added to the contract owners'
accounts, but not yet added to Total investments. Total investments plus
Accounts receivable equals Total assets.
Accounts payable, if applicable, is a liability of the Account for money market
fund shares deducted from the contract owners' accounts, but not yet deducted
from Total investments.
Total assets minus Accounts payable equals Contract owners' equity. For a
summary of Contract owners' equity by fund series turn to page 41.
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
These statements, found on page 14, show the activity in the Account for the
periods stated herein.
The Investment activity section shows the changes in unrealized gain (loss) of
the mutual funds in the Account, realized gain (loss) as shares of the funds are
bought (sold), mortality, expense and administration charges and the variable
account fee which are assessed through the daily unit value calculations, and
dividends and capital gains earnings from the underlying mutual funds.
The Equity transactions section illustrates the receipt of purchase payments by
the Account as new contracts are sold, existing contract owners deposit
additional funds; and deductions from the Account when money is withdrawn,
contracts are canceled, annuity benefits are paid, and annual contract
maintenance charges and contingent deferred sales charges are assessed.
Net change in contract owners' equity equals Investment activity plus Equity
transactions.
The Contract owners' equity at the beginning of the period plus the Net change
in contract owners' equity equals the Contract owners' equity at the end of the
period. Contract owners' equity at the end of the calendar year will equal the
Contract owners' equity at the beginning of the next year.
As you review the following pages of the Annual Report, the Notes to Financial
Statements, beginning on page 36, will also help explain and clarify the various
statements and schedules.
5
<PAGE> 5
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*
1998 1997 1/1/96- 1/1/94- 1/1/89-
FUNDS** 12/31/98 12/31/98 12/31/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIFE DESIGN SERIES
Aggressive Portfolio N/A N/A N/A N/A N/A
Moderately Aggressive Portfolio N/A N/A N/A N/A N/A
Moderate Portfolio N/A N/A N/A N/A N/A
Moderately Conservative Portfolio N/A N/A N/A N/A N/A
Conservative Portfolio N/A N/A N/A N/A N/A
VERY HIGH
AIM Constellation Fund 18.28% 12.37% 15.43% 15.91% 19.82%
American Century: Twentieth Century Growth Fund 35.48% 28.06% 25.49% 18.12% 17.61%
American Century:
Twentieth Century International Discover 16.76% N/A 20.92% N/A N/A
American Century:
Twentieth Century International Growth 17.89% N/A 16.58% 10.63% N/A
American Century: Twentieth Century Ultra Fund 33.27% 21.97% 22.38% 19.00% 22.83%
INVESCO Dynamics Fund 22.47% N/A 20.18% 18.10% 18.92%
Janus Twenty Fund 71.74% 28.47% 40.85% 28.35% 24.57%
Mass. Investors Growth Stock Fund 38.68% 46.75% 35.29% 23.80% 20.50%
NSAT Small Company Fund 0.05% N/A 12.26% N/A N/A
Prestige Small Capital Fund N/A N/A N/A N/A N/A
Putnam Voyager Fund 22.88% 24.79% 19.66% 18.80% 19.17%
Warburg Pincus Emerging Growth 4.82% N/A 11.07% 14.15% 15.42%
HIGH
AIM Weingarten Fund 32.32% 25.28% 24.75% 20.90% 17.97%
American Century: Twentieth Century Select Fund 34.37% 30.94% 27.60% 18.12% 16.27%
Davis New York Venture Fund 13.65% 32.41% 23.55% 20.60% 19.36%
Dreyfus Appreciation 29.61% N/A 26.90% 23.44% 17.37%
Dreyfus Third Century Fund 28.94% 28.15% 26.72% 20.20% 15.72%
Fidelity Advisor Growth Opportunities 23.03% N/A N/A N/A N/A
Fidelity Contrafund 30.28% 21.84% 24.23% 20.45% 22.88%
Fidelity Magellan(R)Fund 32.36% 25.40% 22.45% 19.34% 18.76%
Fidelity OTC Portfolio 39.05% 8.87% 22.88% 19.61% 18.38%
Growth Fund of America(R) 30.53% 25.66% 23.11% 18.91% 16.79%
Janus Fund 37.58% 21.56% 25.60% 20.00% 19.29%
Janus Worldwide Fund 24.68% N/A 23.05% 18.22% N/A
MFS(R)Growth Opportunities Fund 27.95% 22.12% 23.55% 18.99% 15.66%
Morgan Stanley Institutional Fund 17.66% N/A N/A N/A N/A
Nationwide(R)Growth Fund 22.58% 25.04% 21.00% 17.82% 13.99%
Neuberger & Berman Manhattan Fund 15.29% 27.98% 17.09% 14.75% 14.35%
Neuberger & Berman Partners Fund 5.27% N/A 19.09% 17.10% 15.13%
Neuberger & Berman Partners Trust 5.14% N/A 18.97% 17.20% 15.10%
Oppenheimer Global Fund 11.35% N/A 15.66% 11.15% 12.65%
Prestige International Fund N/A N/A N/A N/A N/A
Prestige Large Capital Growth Fund N/A N/A N/A N/A N/A
Putnam Investors Fund 34.24% 33.22% 29.08% 22.95% 19.02%
Seligman Growth Fund 33.96% 16.99% 23.43% 17.92% 16.29%
Strong Common Stock 5.59% 22.85% 15.67% 14.88% N/A
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
6
<PAGE> 6
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*
1998 1997 1/1/96- 1/1/94- 1/1/89-
FUNDS** 12/31/98 12/31/98 12/31/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
T. Rowe Price International Stock Fund(R) 15.04% 1.73% 10.37% 7.84% 9.40%
Templeton Foreign Fund -5.79 5.64% 5.17% 4.95% 9.56%
Templeton Global Smaller Companies Fund -12.23 6.05% 4.02% 4.39% 8.73%
MODERATE
American Century: Income & Growth Investors 26.49% N/A 27.48% 22.57% N/A
Delaware Group - Decatur Income Fund 9.05% 28.73% 18.77% 16.79% 12.93%
Dreyfus Premier Midcap Stock Fund 7.61% N/A 21.88% N/A N/A
Dreyfus S&P 500 Index Fund 26.87% 31.83% 26.40% 22.22% N/A
Evergreen Income and Growth Fund -1.73 24.40% 10.98% 9.23% 9.51%
Fidelity Equity-Income Fund 11.46% 28.76% 19.82% 17.40% 14.60%
Fidelity Growth and Income Portfolio 27.10% 28.94% 24.90% 21.49% 19.16%
INVESCO Industrial Income Fund 13.05% 25.25% 17.86% 14.48% 15.72%
Nationwide(R)Fund 29.11% 38.31% 29.90% 22.97% 17.81%
Nationwide S&P 500 Index Fund - Y N/A N/A N/A N/A N/A
Neuberger & Berman Guardian Fund 1.38% 16.82% 11.41% 12.52% 13.79%
Neuberger & Berman Guardian Trust 1.40% N/A 11.34% 12.66% N/A
Prestige Large Capital Value Fund N/A N/A N/A N/A N/A
SEI Index S&P 500 Index Fund 27.13% N/A 26.73% 22.60% 17.83%
LOW
Fidelity Advisor High Yield Fund -1.66% N/A 7.55% 7.24% 11.33%
Fidelity Asset ManagerTM 15.00% N/A 15.86% 10.99% 12.87%
Fidelity Capital & Income Fund 3.76% N/A 9.16% 7.28% 10.11%
Fidelity Puritan(R)Fund 15.49% N/A 16.88% 14.14% 13.74%
Income Fund of America(R) 8.43% N/A 14.41% 13.08% 12.52%
INVESCO Total Return Fund 12.24% N/A 15.49% 14.54% 12.81%
MFS(R)High Income Fund 0.07% N/A 7.64% 6.90% 8.50%
Prestige Balance Fund N/A N/A N/A N/A N/A
VERY LOW
Bond Fund of AmericaSM 4.17% 8.20% 6.01% 5.59% 8.15%
Federated Bond Fund Class F 4.62% N/A 6.27% 6.46% 8.83%
Federated GNMA Institutional 5.69% N/A 5.81% 5.63% 7.62%
Federated U.S. Government Securities Fund 7.08% 6.12% 5.25% 4.97% 6.79%
MAS Fixed Income Portfolio 5.90% 8.57% 6.93% 6.19% 8.71%
Nationwide(R)Bond Fund 7.34% 8.27% 5.32% 5.51% 7.64%
STABLE VALUE
Dreyfus Cash Management 4.50% 4.55% 4.49% 4.31% 4.75%
Nationwide(R)Money Market Fund 4.08% 4.12% 4.06% 3.89% 4.25%
S&P 500 *** 28.58% 33.36% 28.22% 24.05% 19.20%
- ------------------------------------------------------------------------------------------------------------------------
</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.
7
<PAGE> 7
FUND PERFORMANCES
- --------------------------------------------------------------------------------
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*
1998 1997 1/1/96- 1/1/94- 1/1/89-
FUNDS** 12/31/98 12/31/98 12/31/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIFE DESIGN SERIES
Aggressive Portfolio N/A N/A N/A N/A N/A
Moderately Aggressive Portfolio N/A N/A N/A N/A N/A
Moderate Portfolio N/A N/A N/A N/A N/A
Moderately Conservative Portfolio N/A N/A N/A N/A N/A
Conservative Portfolio N/A N/A N/A N/A N/A
VERY HIGH
AIM Constellation Fund 11.78% 5.87% 12.81% 14.12% N/A
American Century: Twentieth Century Growth Fund 28.98% 21.56% 23.09% 16.25% 16.67%
American Century:
Twentieth Century International Discovery N/A N/A N/A N/A N/A
American Century:
Twentieth Century International Growth N/A N/A N/A N/A N/A
American Century: Twentieth Century Ultra Fund 26.77% 15.47% 19.90% 17.21% N/A
INVESCO Dynamics Fund N/A N/A N/A N/A N/A
Janus Twenty Fund 65.24% 21.97% 38.74% 26.67% N/A
Mass. Investors Growth Stock Fund 32.18% 40.25% 33.14% 22.05% 19.54%
NSAT Small Company Fund N/A N/A N/A N/A N/A
Prestige Small Capital Fund N/A N/A N/A N/A N/A
Putnam Voyager Fund 16.38% 18.29% 17.13% 17.07% N/A
Warburg Pincus Emerging Growth N/A N/A N/A N/A N/A
HIGH
AIM Weingarten Fund 25.82% 18.78% 22.36% 19.19% N/A
American Century: Twentieth Century Select Fund 27.87% 24.44% 25.28% 16.21% N/A
Davis New York Venture Fund 7.15% 25.91% 21.22% 18.93% N/A
Dreyfus Appreciation N/A N/A N/A N/A N/A
Dreyfus Third Century Fund 22.44% 21.65% 24.41% 18.42% 14.58%
Fidelity Advisor Growth Opportunities N/A N/A N/A N/A N/A
Fidelity Contrafund 23.78% 15.34% 21.84% 18.73% N/A
Fidelity Magellan(R)Fund 25.86% 18.90% 19.96% 17.56% N/A
Fidelity OTC Portfolio 32.55% 2.37% 20.44% N/A N/A
Growth Fund of America(R) 24.03% 19.16% 20.66% 17.12% N/A
Janus Fund 31.08% 15.06% 23.21% 18.23% N/A
Janus Worldwide Fund N/A N/A N/A N/A N/A
MFS(R)Growth Opportunities Fund 21.45% 15.62% 21.16% 17.21% 14.53%
Morgan Stanley Institutional Fund N/A N/A N/A N/A N/A
Nationwide(R)Growth Fund 16.08% 18.54% 18.53% 16.03% 12.76%
Neuberger & Berman Manhattan Fund 8.79% 21.48% 14.50% 12.84% N/A
Neuberger & Berman Partners Fund -1.23% 21.51% N/A N/A N/A
Neuberger & Berman Partners Trust N/A N/A N/A N/A N/A
Oppenheimer Global Fund N/A N/A N/A N/A N/A
Prestige International Fund N/A N/A N/A N/A N/A
Prestige Large Capital Growth Fund N/A N/A N/A N/A N/A
Putnam Investors Fund 27.74% 26.72% 26.80% 21.26% 18.01%
Seligman Growth Fund 27.46% 10.49% 21.01% 16.07% 15.25%
Strong Common Stock -0.91% 16.35% 13.12% 13.06% N/A
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
8
<PAGE> 8
FUND PERFORMANCES
- --------------------------------------------------------------------------------
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*
1998 1997 1/1/96- 1/1/94- 1/1/89-
FUNDS** 12/31/98 12/31/98 12/31/98
- ------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
T. Rowe Price International Stock Fund(R) 8.54% -4.77% 7.57% 5.65% N/A
Templeton Foreign Fund -11.92% -0.86% 2.25% 2.70% N/A
Templeton Global Smaller Companies Fund -18.04% -0.45% 1.11% 2.13% N/A
MODERATE
American Century: Income & Growth Investors N/A N/A N/A N/A N/A
Delaware Group - Decatur Income Fund 2.55% 22.23% 16.30% 15.01% N/A
Dreyfus Premier Midcap Stock Fund N/A N/A N/A N/A N/A
Dreyfus S&P 500 Index Fund 20.37% 25.33% N/A N/A N/A
Evergreen Income and Growth Fund -8.07% 17.90% 8.26% 7.13% 8.16%
Fidelity Equity-Income Fund 4.96% 22.26% 17.38% 15.64% 13.40%
Fidelity Growth and Income Portfolio 20.60% 22.44% 22.53% 19.82% N/A
INVESCO Industrial Income Fund 6.55% 18.75% 15.33% 12.57% N/A
Nationwide(R)Fund 22.61% 31.81% 27.67% 21.30% 16.78%
Nationwide S&P 500 Index Fund - Y N/A N/A N/A N/A N/A
Neuberger & Berman Guardian Fund -5.11% 10.32% 8.72% N/A N/A
Neuberger & Berman Guardian Trust N/A N/A N/A N/A N/A
Prestige Large Capital Value Fund N/A N/A N/A N/A N/A
SEI Index S&P 500 Index Fund 20.63% 25.32% 24.42% 20.95% N/A
LOW
Fidelity Advisor High Yield Fund N/A N/A N/A N/A N/A
Fidelity Asset Manager(TM) 8.50% 14.62% 13.24% 8.88% N/A
Fidelity Capital & Income Fund -2.74% 7.12% 6.34% 5.08% 8.75%
Fidelity Puritan(R)Fund 8.99% 14.69% 14.30% N/A N/A
Income Fund of America(R) 1.93% 14.51% 11.78% 11.16% N/A
INVESCO Total Return Fund N/A N/A N/A N/A N/A
MFS(R)High Income Fund -6.36% 5.28% 4.78% 4.71% 7.02%
Prestige Balance Fund N/A N/A N/A N/A N/A
VERY LOW
Bond Fund of America(SM) -2.33% 1.70% 3.03% 3.30% 6.78%
Federated Bond Fund Class F N/A N/A N/A N/A N/A
Federated GNMA Trust -0.81% 1.30% 2.81% 3.35% N/A
Federated U.S. Government Securities Fund 0.58% -0.38% 2.21% 2.64% N/A
MAS Fixed Income Portfolio -0.60% 2.07% 3.99% N/A N/A
Nationwide(R)Bond Fund 0.84% 1.77% 2.27% 3.19% 6.23%
STABLE VALUE
Dreyfus Cash Management -2.00% -1.95% 1.44% 1.98% N/A
Nationwide(R)Money Market Fund -2.42% -2.38% 0.99% 1.53% 2.56%
- ------------------------------------------------------------------------------------------------------------------------
</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.
9
<PAGE> 9
================================================================================
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1998
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class (AIMCon)
263,200 shares (cost $7,413,238) .......................................... $ 8,314,474
American Century: Income & Growth Fund (ACIncGro)
8,751 shares (cost $252,715) .............................................. 255,963
American Century: Twentieth Century Growth Fund (ACTCGro)
7,549,979 shares (cost $173,502,107) ...................................... 205,057,427
American Century: Twentieth Century International Discovery Fund (ACTCIntDis)
18,884 shares (cost $174,069) ............................................. 180,719
American Century: Twentieth Century Select Fund (ACTCSel)
71,946 shares (cost $3,022,181) ........................................... 3,409,516
American Century: Twentieth Century Ultra Fund (ACTCUltra)
14,569,157 shares (cost $413,579,335) ..................................... 486,755,522
American Century VP - American Century VP Balanced (ACVPBal)
1,638 shares (cost $12,405) ............................................... 13,660
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
8,258 shares (cost $80,786) ............................................... 74,486
The Bond Fund of America(SM), Inc. (BdFdAm)
1,379,536 shares (cost $19,067,980) ....................................... 18,775,484
Davis New York Venture Fund, Inc. - Class A (DNYVenFd)
14,014 shares (cost $325,076) ............................................. 350,493
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class (DeDecInc)
17,665 shares (cost $327,850) .............................................. 323,087
Dreyfus Appreciation Fund, Inc. (DryApp)
19,100 shares (cost $783,375) ............................................. 803,537
Dreyfus Cash Management - Class A (DryCsMgt)
243,926 shares (cost $243,926) ............................................ 243,926
Dreyfus Premier Midcap Stock - Class A (DryPreMCap)
1,146 shares (cost $18,034) ............................................... 19,054
Dreyfus S&P 500 Index Fund (Dry500Ix)
1,859,812 shares (cost $58,191,897) ....................................... 67,678,560
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
624 shares (cost $15,827) ................................................. 19,407
Dreyfus Stock Index Fund (DryStkIx)
3,783 shares (cost $97,040) ............................................... 123,028
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
4,603,101 shares (cost $47,080,177) ....................................... 56,526,083
</TABLE>
10
<PAGE> 10
<TABLE>
<S> <C>
Evergreen Income and Growth Fund - Class Y (EvIncGro)
190,917 shares (cost $3,808,065) ............................................ 3,930,975
Federated Investment Series Fund, Inc. - Federated Bond Fund - Class F (FedBdFd)
28,324 shares (cost $282,308) ............................................... 281,255
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
572,243 shares (cost $6,185,458) ............................................. 6,243,174
Fidelity Advisor Growth Opportunities Fund - Class A (FAGrOppA)
6,154 shares (cost $304,000) ................................................ 306,517
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
1,679 shares (cost $19,187) ................................................. 19,028
Fidelity Asset Manager(TM) (FidAsMgr)
546,181 shares (cost $9,688,228) ............................................ 9,498,080
Fidelity Capital & Income Fund (FidCapInc)
136,360 shares (cost $1,257,492) ............................................ 1,265,424
Fidelity Contrafund (FidContr)
6,695,436 shares (cost $289,882,971) ........................................ 380,233,829
Fidelity Equity-Income Fund (FidEqInc)
5,618,084 shares (cost $231,095,999) ........................................ 312,084,541
Fidelity Growth & Income Portfolio (FidGrInc)
465,518 shares (cost $18,444,138) ........................................... 21,339,345
Fidelity Magellan(R) Fund (FidMgln)
2,577,582 shares (cost $215,781,095) ........................................ 311,423,426
Fidelity VIP Fund II - Asset Manager Portfolio (FidVIPAM)
2,717 shares (cost $43,205) ................................................. 49,340
Fidelity VIP Fund - Equity-Income Portfolio (FidVIPEI)
8,516 shares (cost $184,286) ................................................ 216,479
Fidelity VIP Fund - Growth Portfolio (FidVIPGr)
4,900 shares (cost $154,983) ................................................ 219,875
Fidelity VIP Fund - High Income Portfolio (FidVIPHI)
3,728 shares (cost $45,706) ................................................. 42,981
Fidelity VIP Fund - Overseas Portfolio (FidVIPOv)
6,799 shares (cost $125,995) ................................................ 136,323
The Growth Fund of America(R), Inc. (GroFdAm)
859,354 shares (cost $15,610,829) ........................................... 19,249,530
The Income Fund of America(R), Inc. (IncFdAm)
1,183,132 shares (cost $19,882,738) ......................................... 20,515,502
INVESCO Dynamics Fund, Inc. (InvDynam)
3,622 shares (cost $54,805) ................................................. 57,042
INVESCO Industrial Income Fund, Inc. (InvIndlnc)
1,873,975 shares (cost $26,053,975) ......................................... 28,222,069
INVESCO Total Return Fund (InvTotRet)
4,202 shares (cost $132,268) ................................................ 131,776
Janus Fund (JanFund)
3,906,245 shares (cost $104,578,466) ........................................ 131,445,159
(Continued)
</TABLE>
11
<PAGE> 11
<TABLE>
<S> <C>
Janus Worldwide Fund (JanWrldwde)
24,384 shares (cost $1,122,605) .................................................... 1,154,847
MAS Funds - Fixed Income Portfolio (MASFIP)
525,805 shares (cost $6,302,778) ................................................... 6,157,174
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
657,359 shares (cost $7,708,502) ................................................... 10,458,576
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
2,236,191 shares (cost $29,085,559) ................................................ 35,667,242
MFS(R) High Income Fund - Class A (MFSHiInc)
1,042,583 shares (cost $5,743,632) ................................................. 5,338,024
Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio - Class B (MSIEqGroB)
5,153 shares (cost $96,282) ........................................................ 97,796
NAAT - The Aggressive Portfolio (NAATAggr)
260,548 shares (cost $2,872,678) ................................................... 3,069,260
NAAT - The Conservative Portfolio (NAATCons)
54,044 shares (cost $574,834) ...................................................... 594,481
NAAT - The Moderate Portfolio (NAATMod)
153,133 shares (cost $1,623,148) ................................................... 1,770,213
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
135,990 shares (cost $1,474,071) ................................................... 1,576,125
NAAT - The Moderately Conservative Portfolio (NAATModCon)
77,264 shares (cost $821,572) ...................................................... 875,398
Nationwide(R) Bond Fund - Class D (NWBdFd)
29,149 shares (cost $277,398) ...................................................... 283,908
Nationwide(R) Fund - Class D (NWFund)
5,830,525 shares (cost $151,068,135) ............................................... 188,967,304
Nationwide(R) Growth Fund - Class D (NWGroFd)
802,597 shares (cost $11,723,118) .................................................. 13,756,506
Nationwide(R) Money Market Fund (NWMyMkt)
68,177,289 shares (cost $68,177,289) ............................................... 68,177,289
Nationwide(R) S&P 500 Index Fund - Class Y (NWIndxFdY)
55,739 shares (cost $584,093) ...................................................... 602,542
Nationwide(R)Separate Account Trust - Government Bond Fund (NSATGvtBd)
1,662 shares (cost $18,619) ........................................................ 19,433
Nationwide(R)Separate Account Trust - Money Market Fund (NSATMyMkt)
76,142 shares (cost $76,142) ....................................................... 76,142
Nationwide(R)Separate Account Trust - Small Company Fund (NSATSmCo)
221,029 shares (cost $3,254,966) ................................................... 3,538,678
Nationwide(R) Separate Account Trust - Total Return Fund (NSATTotRe)
8,021 shares (cost $118,035) ....................................................... 147,591
Neuberger & Berman Advisors Management Trust - Growth Portfolio (NBAMTGro)
1,331 shares (cost $33,357) ........................................................ 34,993
Neuberger & Berman Advisors Management Trust -
Limited Maturity Bond Portfolio (NBAMTLMat)
805 shares (cost $11,038) ........................................................... 11,128
Neuberger & Berman Advisors Management Trust - Partners Portfolio (NBAMTPart)
3,363 shares (cost $58,476) ........................................................ 63,654
</TABLE>
12
<PAGE> 12
<TABLE>
<S> <C>
Neuberger & Berman Equity Funds - Guardian Fund (NBGuard)
67,119 shares (cost $1,551,245) ............................................ 1,504,803
Neuberger & Berman Equity Funds - Manhattan Fund (NBManhFd)
21,583 shares (cost $248,994) .............................................. 257,916
Neuberger & Berman Equity Trust - Partners Trust (NBPartTr)
2,597 shares (cost $46,916) ................................................ 46,923
NIF III - Prestige Balanced Fund - Class Y (PrBalY)
5,159 shares (cost $53,979) ................................................ 55,200
NIF III - Prestige International Fund - Class Y (PrIntY)
1,797 shares (cost $18,374) ................................................ 18,992
NIF III - Prestige Large Cap Growth Fund - Class Y (PrLgCapGrY)
5,540 shares (cost $60,384) ................................................ 64,265
NIF III - Prestige Large Cap Value Fund - Class Y (PrLgCpValY)
983 shares (cost $10,134) .................................................. 10,377
NIF III - Prestige Small Cap Fund - Class Y (PrSmCapY)
3,704 shares (cost $38,380) ................................................ 40,259
Oppenheimer Global Fund - Class A (OppGlob)
3,269 shares (cost $138,815) ............................................... 139,272
Putnam Investors Fund - Class A (PutInvFd)
5,000,754 shares (cost $51,029,196) ........................................ 74,111,177
Putnam Voyager Fund - Class A (PutVoyFd)
9,525,088 shares (cost $165,548,838) ....................................... 208,789,938
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
1,099,721 shares (cost $35,952,783) ........................................ 42,273,259
Seligman Growth Fund, Inc. - Class A (SelGroFd)
493,221 shares (cost $2,756,305) ........................................... 3,659,697
T. Rowe Price International Funds, Inc. - International Stock Fund(R)(TRIntStk)
2,434,040 shares (cost $35,530,590) ........................................ 36,486,256
Templeton Foreign Fund - Class I (TemForFd)
7,485,101 shares (cost $74,436,720) ........................................ 62,799,996
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
1,457 shares (cost $53,007) ................................................ 58,225
--------------
Total investments ....................................................... 2,868,590,955
Accounts receivable .............................................................. 2,559,444
--------------
Total assets ............................................................ 2,871,150,399
ACCOUNTS PAYABLE .................................................................... 138,219
--------------
CONTRACT OWNERS' EQUITY (NOTE 4) .................................................... $2,871,012,180
==============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
13
<PAGE> 13
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
TOTAL AIMCON
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 20,651,143 20,895,878 -- --
Mortality and expense charges (note 2)......... (3,556,112) (8,777,426) (13,212) (83,193)
Administration charge (note 2):
Tier I ................................ (1,675,650) (4,398,894) (2,695) (55,661)
Tier II ............................... (484,483) (1,173,353) -- --
Tier III .............................. (168,929) (388,328) -- --
Tier IV ............................... (64,112) (149,483) -- --
Tier V ................................ (194,057) (420,645) (3,065) (6,404)
Variable account fee (notes 2 and 5)........... (13,750,583) -- (30,654) --
-------------- -------------- -------------- --------------
Net investment activity...................... 757,217 5,587,749 (49,626) (145,258)
Proceeds from mutual fund shares sold.......... 428,065,379 357,793,032 7,850,258 18,815,677
Cost of mutual fund shares sold................ (360,005,241) (303,606,933) (7,639,203) (15,735,318)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.......... 68,060,138 54,186,099 211,055 3,080,359
Change in unrealized gain (loss) on investments 292,964,663 102,369,350 1,124,581 (1,523,649)
-------------- -------------- -------------- --------------
Net gain (loss) on investments............... 361,024,801 156,555,449 1,335,636 1,556,710
-------------- -------------- -------------- --------------
Reinvested capital gains....................... 180,025,465 184,171,649 198,951 657,567
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 541,807,483 346,314,847 1,484,961 2,069,019
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 613,394,800 453,926,543 3,679,541 7,859,657
Transfers between funds ....................... -- -- (1,949,570) (1,122,286)
Redemptions.................................... (258,709,862) (251,618,723) (4,490,445) (14,772,202)
Annual contract maintenance charge (note 2).... (2,861) (2,992) -- --
Contingent deferred sales charges (note 2)..... (1,717) (14,054) -- (695)
Adjustments to maintain reserves............... 423,368 (293,934) 233 (797)
-------------- -------------- -------------- --------------
Net equity transactions.................... 355,103,728 201,996,840 (2,760,241) (8,036,323)
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 896,911,211 548,311,687 (1,275,280) (5,967,304)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 1,974,100,969 1,425,789,282 9,590,157 15,557,461
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 2,871,012,180 1,974,100,969 8,314,877 9,590,157
============== ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
AIMWEIN ACINCGRO
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- 364 --
Mortality and expense charges (note 2)......... -- (9,318) -- --
Administration charge (note 2):
Tier I ................................ -- (8,386) -- --
Tier II ............................... -- -- -- --
Tier III .............................. -- -- -- --
Tier IV ............................... -- -- -- --
Tier V ................................ -- -- -- --
Variable account fee (notes 2 and 5)........... -- -- (61) --
-------------- -------------- -------------- --------------
Net investment activity...................... -- (17,704) 303 --
Proceeds from mutual fund shares sold.......... 407 2,988,919 1,365 --
Cost of mutual fund shares sold................ (450) (2,485,069) (1,364) --
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.......... (43) 503,850 1 --
Change in unrealized gain (loss) on investments -- (68,071) 3,248 --
-------------- -------------- -------------- --------------
Net gain (loss) on investments............... (43) 435,779 3,249 --
-------------- -------------- -------------- --------------
Reinvested capital gains....................... -- 57 4,510 --
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... (43) 418,132 8,062 --
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. -- 430,962 28,106 --
Transfers between funds ....................... -- (191,388) 219,798 --
Redemptions.................................... -- (2,774,113) -- --
Annual contract maintenance charge (note 2).... -- -- -- --
Contingent deferred sales charges (note 2)..... -- -- -- --
Adjustments to maintain reserves............... 43 (440) 39 --
-------------- -------------- -------------- --------------
Net equity transactions.................... 43 (2,534,979) 247,943 --
NET CHANGE IN CONTRACT OWNERS' EQUITY............ -- (2,116,847) 256,005 --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... -- 2,116,847 -- --
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ -- -- 256,005 --
============== ============== ============== ==============
</TABLE>
14
<PAGE> 14
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
ACTCGRO ACTCINTDIS
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- -- -- --
Mortality and expense charges (note 2)......... (245,696) (642,882) -- --
Administration charge (note 2):
Tier I ................................ (98,801) (271,869) -- --
Tier II ............................... (35,121) (93,304) -- --
Tier III .............................. (10,512) (26,285) -- --
Tier IV ............................... (3,181) (7,827) -- --
Tier V ................................ (19,963) (48,240) -- --
Variable account fee (notes 2 and 5)........... (933,529) -- (91) --
------------- -------------- -------------- --------------
Net investment activity...................... (1,346,803) (1,090,407) (91) --
Proceeds from mutual fund shares sold.......... 18,769,032 16,716,393 13,419 --
Cost of mutual fund shares sold................ (15,992,186) (16,558,938) (13,089) --
------------- -------------- -------------- --------------
Realized gain (loss) on investments.......... 2,776,846 157,455 330 --
Change in unrealized gain (loss) on investments 16,196,046 10,717,229 6,649 --
------------- -------------- -------------- --------------
Net gain (loss) on investments............... 18,972,892 10,874,684 6,979 --
------------- -------------- -------------- --------------
Reinvested capital gains....................... 33,574,173 20,522,141 483 --
------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 51,200,262 30,306,418 7,371 --
------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 23,250,889 14,467,218 6,191 --
Transfers between funds ....................... 8,354,144 (6,426,109) 167,162 --
Redemptions.................................... (17,504,524) (12,448,292) -- --
Annual contract maintenance charge (note 2).... (5) (4) -- --
Contingent deferred sales charges (note 2)..... -- (700) -- --
Adjustments to maintain reserves............... 5,720 3,742 36 --
------------- -------------- -------------- --------------
Net equity transactions.................... 14,106,224 (4,404,145) 173,389 --
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 65,306,486 25,902,273 180,760 --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 139,756,024 113,853,751 -- --
------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 205,062,510 139,756,024 180,760 --
============= ============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
ACTCINTLGR ACTCSEL
-------------------------- -------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- 9,928 8,911
Mortality and expense charges (note 2)......... (2) -- (4,167) (9,710)
Administration charge (note 2):
Tier I ................................ (2) -- (122) (226)
Tier II ............................... -- -- -- --
Tier III .............................. -- -- -- --
Tier IV ............................... -- -- (1,613) (3,783)
Tier V ................................ -- -- -- --
Variable account fee (notes 2 and 5)........... -- -- (13,301) --
-------------- -------------- -------------- --------------
Net investment activity...................... (4) -- (9,275) (4,808)
Proceeds from mutual fund shares sold.......... 11,135 -- 487,141 105,754
Cost of mutual fund shares sold................ (10,717) -- (320,438) (82,007)
-------------- -------------- -------------- --------------
Realized gain (loss) on investments.......... 418 -- 166,703 23,747
Change in unrealized gain (loss) on investments -- -- 121,947 123,754
-------------- -------------- -------------- --------------
Net gain (loss) on investments............... 418 -- 288,650 147,501
-------------- -------------- -------------- --------------
Reinvested capital gains....................... -- -- 576,863 357,648
-------------- -------------- -------------- --------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 414 -- 856,238 500,341
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 10,713 -- 310,577 237,869
Transfers between funds ....................... -- -- 104,612 72,140
Redemptions.................................... (11,133) -- (156,908) (73,384)
Annual contract maintenance charge (note 2).... -- -- -- --
Contingent deferred sales charges (note 2)..... -- -- -- --
Adjustments to maintain reserves............... 6 -- 428 (255)
-------------- -------------- -------------- --------------
Net equity transactions.................... (414) -- 258,709 236,370
NET CHANGE IN CONTRACT OWNERS' EQUITY............ -- -- 1,114,947 736,711
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... -- -- 2,294,883 1,558,172
-------------- -------------- -------------- --------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ -- -- 3,409,830 2,294,883
============== ============== ============== ==============
(Continued)
</TABLE>
15
<PAGE> 15
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
ACTCULTRA ACVPBAL
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- 127,927 135 51
Mortality and expense charges (note 2)......... (590,177) (1,509,815) (12) (27)
Administration charge (note 2):
Tier I ................................ (289,702) (776,590) (11) (25)
Tier II ............................... (78,787) (199,798) -- --
Tier III .............................. (33,584) (80,544) -- --
Tier IV ............................... (8,689) (21,246) -- --
Tier V ................................ (27,632) (62,951) -- --
Variable account fee (notes 2 and 5)........... (2,343,288) -- (69) --
------------ ------------ ------------ ------------
Net investment activity...................... (3,371,859) (2,523,017) 43 (1)
Proceeds from mutual fund shares sold.......... 41,641,653 42,925,473 -- --
Cost of mutual fund shares sold................ (27,930,230) (28,943,858) -- --
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... 13,711,423 13,981,615 -- --
Change in unrealized gain (loss) on investments 63,370,686 (23,440,931) 445 529
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 77,082,109 (9,459,316) 445 529
------------ ------------ ------------ ------------
Reinvested capital gains....................... 41,328,459 68,012,104 835 203
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 115,038,709 56,029,771 1,323 731
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 92,879,284 76,463,255 5,501 2,004
Transfers between funds ....................... (11,404,055) (3,905,194) -- --
Redemptions.................................... (44,419,854) (39,257,098) -- --
Annual contract maintenance charge (note 2).... (24) (24) -- --
Contingent deferred sales charges (note 2)..... (5) (1,699) -- --
Adjustments to maintain reserves............... 12,001 (69,090) (1) --
------------ ------------ ------------ ------------
Net equity transactions.................... 37,067,347 33,230,150 5,500 2,004
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 152,106,056 89,259,921 6,823 2,735
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 334,663,456 245,403,535 6,841 4,106
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 486,769,512 334,663,456 13,664 6,841
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
ACVPCAPAP BDFDAM
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... -- -- 1,072,397 831,172
Mortality and expense charges (note 2)......... (126) (383) (22,352) (59,085)
Administration charge (note 2):
Tier I ................................ (114) (345) (12,086) (33,669)
Tier II ............................... -- -- (3,155) (8,744)
Tier III .............................. -- -- (903) (2,293)
Tier IV ............................... -- -- (97) (201)
Tier V ................................ -- -- (970) (1,926)
Variable account fee (notes 2 and 5)........... (453) -- (96,999) --
------------ ------------ ------------ ------------
Net investment activity...................... (693) (728) 935,835 725,254
Proceeds from mutual fund shares sold.......... 18,530 47,270 6,379,676 5,280,682
Cost of mutual fund shares sold................ (23,743) (47,990) (6,310,382) (5,010,122)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... (5,213) (720) 69,294 270,560
Change in unrealized gain (loss) on investments (1,486) (3,222) (526,637) (62,236)
------------ ------------ ------------ ------------
Net gain (loss) on investments............... (6,699) (3,942) (457,343) 208,324
------------ ------------ ------------ ------------
Reinvested capital gains....................... 3,694 1,834 166,021 --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... (3,698) (2,836) 644,513 933,578
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 16,440 32,191 4,402,447 2,017,698
Transfers between funds ....................... (15,860) (33,826) 2,903,996 (215,164)
Redemptions.................................... (972) (1,115) (1,653,020) (1,811,719)
Annual contract maintenance charge (note 2).... (1) (12) (7) (8)
Contingent deferred sales charges (note 2)..... -- -- -- --
Adjustments to maintain reserves............... 1 (439) (453) (783)
------------ ------------ ------------ ------------
Net equity transactions.................... (392) (3,201) 5,652,963 (9,976)
NET CHANGE IN CONTRACT OWNERS' EQUITY............ (4,090) (6,037) 6,297,476 923,602
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 78,567 84,604 12,478,178 11,554,576
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ 74,477 78,567 18,775,654 12,478,178
============ ============ ============ ============
</TABLE>
16
<PAGE> 16
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
DNYVENFD DEDECINC
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ 3,675 2,454 8,519 7,552
Mortality and expense charges (note 2)......... (719) (20,053) (495) (1,261)
Administration charge (note 2):
Tier I ................................ -- (16,533) (345) (889)
Tier II ............................... (576) (1,346) (64) (157)
Tier III .............................. -- -- (19) (46)
Tier IV ............................... -- -- -- --
Tier V ................................ ------------ ------------ ------------ ------------
Variable account fee (notes 2 and 5)........... (2,375) -- (1,890) --
------------ ------------ ------------ ------------
Net investment activity...................... 5 (35,478) 5,706 5,199
Proceeds from mutual fund shares sold.......... 238,516 8,604,728 21,772 32,460
Cost of mutual fund shares sold................ (242,635) (7,453,575) (17,747) (26,970)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... (4,119) 1,151,153 4,025 5,490
Change in unrealized gain (loss) on investments 41,346 (200,770) (31,371) 14,342
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 37,227 950,383 (27,346) 19,832
------------ ------------ ------------ ------------
Reinvested capital gains....................... 13,062 10,430 48,997 37,091
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 50,294 925,335 27,357 62,122
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 61,821 4,085,503 35,842 30,795
Transfers between funds ....................... (93,497) 2,267,457 (10,077) (2,219)
Redemptions.................................... (104,253) (9,056,278) (12,641) (31,221)
Annual contract maintenance charge (note 2).... -- -- -- --
Contingent deferred sales charges (note 2)..... -- -- -- --
Adjustments to maintain reserves............... (9,951) 8,950 1 --
------------ ------------ ------------ ------------
Net equity transactions.................... (145,880) (2,694,368) 13,125 (2,645)
NET CHANGE IN CONTRACT OWNERS' EQUITY............ (95,586) (1,769,033) 40,482 59,477
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 446,013 2,215,046 282,605 223,128
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 350,427 446,013 323,087 282,605
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
DRYAPP DRYCSMGT
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 3,615 -- 13,275 54,849
Mortality and expense charges (note 2)......... -- -- (404) (5,071)
Administration charge (note 2):
Tier I ................................ -- -- -- (3,079)
Tier II ............................... -- -- (324) (1,320)
Tier III .............................. -- -- -- --
Tier IV ............................... -- -- -- --
Tier V ................................ ------------ ------------ ------------ ------------
Variable account fee (notes 2 and 5)........... (363) -- (1,506) --
------------ ------------ ------------ ------------
Net investment activity...................... 3,252 -- 11,041 45,379
Proceeds from mutual fund shares sold.......... 42,324 -- 188,098 6,117,696
Cost of mutual fund shares sold................ (41,547) -- (188,098) (6,117,696)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... 777 -- -- --
Change in unrealized gain (loss) on investments 20,162 -- -- --
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 20,939 -- -- --
------------ ------------ ------------ ------------
Reinvested capital gains....................... 1,067 -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 25,258 -- 11,041 45,379
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 100,087 -- 7,000 662,604
Transfers between funds ....................... 678,208 -- 30,215 (165,420)
Redemptions.................................... -- -- (85,159) (1,416,011)
Annual contract maintenance charge (note 2).... -- -- -- --
Contingent deferred sales charges (note 2)..... -- -- -- --
Adjustments to maintain reserves............... 58 -- 13 (171)
------------ ------------ ------------ ------------
Net equity transactions.................... 778,353 -- (47,931) (918,998)
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 803,611 -- (36,890) (873,619)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... -- -- 280,820 1,154,439
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ 803,611 -- 243,930 280,820
============ ============ ============ ============
(Continued)
</TABLE>
17
<PAGE> 17
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
DRYPREMCAP DRY500IX
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- -- 654,039 284,069
Mortality and expense charges (note 2)......... -- -- (50,585) (35,171)
Administration charge (note 2):
Tier I ................................ -- -- (25,258) (14,618)
Tier II ............................... -- -- (9,470) (9,421)
Tier III .............................. -- -- (4,279) (3,048)
Tier IV ............................... -- -- (1,421) (830)
Tier V ................................ ------------ ------------ ------------ ------------
Variable account fee (notes 2 and 5)........... (11) -- (302,743) --
------------ ------------ ------------ ------------
Net investment activity...................... (11) -- 260,283 220,981
Proceeds from mutual fund shares sold.......... 41,198 -- 17,946,636 2,486,482
Cost of mutual fund shares sold................ (39,908) -- (17,009,081) (2,245,649)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... 1,290 -- 937,555 240,833
Change in unrealized gain (loss) on investments 1,020 -- 9,000,038 486,625
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 2,310 -- 9,937,593 727,458
------------ ------------ ------------ ------------
Reinvested capital gains....................... -- -- 11,335 433,206
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 2,299 -- 10,209,211 1,381,645
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 9,972 -- 29,380,072 8,226,484
Transfers between funds ....................... 6,820 -- 12,761,627 10,392,894
Redemptions.................................... -- -- (4,088,081) (763,066)
Annual contract maintenance charge (note 2).... -- -- -- --
Contingent deferred sales charges (note 2)..... ------------ ------------ ------------ ------------
Adjustments to maintain reserves............... (36) -- 340,307 (170,387)
------------ ------------ ------------ ------------
Net equity transactions.................... 16,756 -- 38,393,925 17,685,925
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 19,055 -- 48,603,136 19,067,570
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... -- -- 19,067,570 --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 19,055 -- 67,670,706 19,067,570
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
DRYSRGRO DRYSTKIX
-------------------------- --------------------------
1998 1997 1998 1997
- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 30 32 1,119 593
Mortality and expense charges (note 2)......... (18) (21) (102) (186)
Administration charge (note 2):
Tier I ................................ (16) (19) (29) (167)
Tier II ............................... -- -- -- --
Tier III .............................. -- -- (42) --
Tier IV ............................... -- -- -- --
Tier V ................................ ------------ ------------ ------------ ------------
Variable account fee (notes 2 and 5)........... (93) -- (592) --
------------ ------------ ------------ ------------
Net investment activity...................... (97) (8) 354 240
Proceeds from mutual fund shares sold.......... -- -- 6,423 21
Cost of mutual fund shares sold................ -- -- (3,045) (10)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... -- -- 3,378 11
Change in unrealized gain (loss) on investments 2,973 607 15,002 8,203
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 2,973 607 18,380 8,214
------------ ------------ ------------ ------------
Reinvested capital gains....................... 700 251 221 1,314
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 3,576 850 18,955 9,768
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 6,922 5,227 28,266 8,847
Transfers between funds ....................... -- 2,835 29,929 16
Redemptions.................................... -- -- -- --
Annual contract maintenance charge (note 2).... ------------ ------------ ------------ ------------
Contingent deferred sales charges (note 2)..... ------------ ------------ ------------ ------------
Adjustments to maintain reserves............... 3 1 50 (3)
------------ ------------ ------------ ------------
Net equity transactions.................... 6,925 8,063 58,245 8,860
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 10,501 8,913 77,200 18,628
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 8,913 -- 45,887 27,259
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ 19,414 8,913 123,087 45,887
============ ============ ============ ============
</TABLE>
18
<PAGE> 18
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
DRY3DCEN EVINCGRO
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... $ -- 62,610 187,498 204,120
Mortality and expense charges (note 2)......... (66,294) (145,644) (7,687) (21,764)
Administration charge (note 2):
Tier I ................................ (29,387) (65,097) (3,311) (9,480)
Tier II ............................... (7,533) (16,969) (1,433) (4,090)
Tier III .............................. (3,505) (7,994) (215) (587)
Tier IV ............................... (1,116) (2,467) (32) (102)
Tier V ................................ (4,678) (9,783) (533) (1,465)
Variable account fee (notes 2 and 5)........... (253,339) -- (22,752) --
------------ ------------ ------------ ------------
Net investment activity...................... (365,852) (185,344) 151,535 166,632
Proceeds from mutual fund shares sold.......... 3,901,389 3,259,863 799,273 847,065
Cost of mutual fund shares sold................ (2,492,822) (2,727,200) (673,270) (754,439)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... 1,408,567 532,663 126,003 92,626
Change in unrealized gain (loss) on investments 5,130,782 3,474,496 (718,235) 409,277
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 6,539,349 4,007,159 (592,232) 501,903
------------ ------------ ------------ ------------
Reinvested capital gains....................... 5,487,821 2,817,470 373,288 285,501
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 11,661,318 6,639,285 (67,409) 954,036
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 12,820,383 9,162,128 266,376 314,114
Transfers between funds ....................... (958,671) 2,904,857 (684,318) (630,620)
Redemptions.................................... (3,146,178) (2,496,781) (214,308) (327,850)
Annual contract maintenance charge (note 2).... ------------ ------------ ------------ ------------
Contingent deferred sales charges (note 2)..... -- -- -- --
Adjustments to maintain reserves............... 875 (3,144) 17 44
------------ ------------ ------------ ------------
Net equity transactions.................... 8,716,409 9,567,060 (632,233) (644,312)
NET CHANGE IN CONTRACT OWNERS' EQUITY............ 20,377,727 16,206,345 (699,642) 309,724
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 36,149,180 19,942,835 4,630,650 4,320,926
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ $ 56,526,907 36,149,180 3,931,008 4,630,650
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FEDGNMA FEDBDFD
-------------------------- --------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......................... 10,016 49,431 1,432 --
Mortality and expense charges (note 2)......... (768) (3,754) -- --
Administration charge (note 2):
Tier I ................................ (691) (3,378) -- --
Tier II ............................... -- -- -- --
Tier III .............................. -- -- -- --
Tier IV ............................... -- -- -- --
Tier V ................................ -- -- -- --
Variable account fee (notes 2 and 5)........... -- -- (142) --
------------ ------------ ------------ ------------
Net investment activity...................... 8,557 42,299 1,290 --
Proceeds from mutual fund shares sold.......... 980,581 440,928 10,318 --
Cost of mutual fund shares sold................ (966,648) (428,095) (10,177) --
------------ ------------ ------------ ------------
Realized gain (loss) on investments.......... 13,933 12,833 141 --
Change in unrealized gain (loss) on investments (13,073) 493 (1,053) --
------------ ------------ ------------ ------------
Net gain (loss) on investments............... 860 13,326 (912) --
------------ ------------ ------------ ------------
Reinvested capital gains....................... -- -- -- --
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations......... 9,417 55,625 378 --
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners.............................. 13,861 97,632 12,564 --
Transfers between funds ....................... (57,803) 396,046 267,049 --
Redemptions.................................... (923,736) (299,846) -- --
Annual contract maintenance charge (note 2).... ------------ ------------ ------------ ------------
Contingent deferred sales charges (note 2)..... -- (165) -- --
Adjustments to maintain reserves............... (304) (5) 9 --
------------ ------------ ------------ ------------
Net equity transactions.................... (967,982) 193,662 279,622 --
NET CHANGE IN CONTRACT OWNERS' EQUITY............ (958,565) 249,287 280,000 --
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD...... 958,565 709,278 -- --
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD............ -- 958,565 280,000 --
============ ============ ============ ============
(Continued)
</TABLE>
19
<PAGE> 19
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
FedUSGvt FAGrOppA
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 205,721 122,936 1,615 -
Mortality and expense charges (note 2). (4,822) (11,028) - -
Administration charge (note 2):
Tier I ........................ (2,999) (6,630) - -
Tier II ....................... (739) (1,877) - -
Tier III ...................... (199) (400) - -
Tier IV ....................... (94) (259) - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (27,060) - (126) -
------------ ------------ ------------ ------------
Net investment activity.............. 169,808 102,742 1,489 -
Proceeds from mutual fund shares sold.. 3,303,388 1,662,873 163 -
Cost of mutual fund shares sold........ (3,240,050) (1,668,080) (159) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 63,338 (5,207) 4 -
Change in unrealized gain (loss) on investments 31,242 33,840 2,517 -
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 94,580 28,633 2,521 -
------------ ------------ ------------ ------------
Reinvested capital gains............... - - 5,705 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 264,388 131,375 9,715 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 1,027,985 665,677 85,031 -
Transfers between funds ............... 3,085,149 36,017 211,185 -
Redemptions............................ (660,459) (329,946) - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 838 (158) (35) -
------------ ------------ ------------ ------------
Net equity transactions............ 3,453,513 371,590 296,181 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 3,717,901 502,965 305,896 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,524,630 2,021,665 - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 6,242,531 2,524,630 305,896 -
============ ============ ============ ============
<CAPTION>
FAHiYld FidAsMgr
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 298 - 256,730 200,644
Mortality and expense charges (note 2). - - (12,311) (29,750)
Administration charge (note 2):
Tier I ........................ - - (7,018) (17,550)
Tier II ....................... - - (1,576) (3,833)
Tier III ...................... - - (658) (1,227)
Tier IV ....................... - - (578) (1,365)
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (2) - (49,954) -
------------ ------------- ------------- -------------
Net investment activity.............. 296 - 184,635 146,919
Proceeds from mutual fund shares sold.. 3,365 - 1,400,805 1,776,704
Cost of mutual fund shares sold........ (3,405) - (1,144,384) (1,379,459)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. (40) - 256,421 397,245
Change in unrealized gain (loss) on investments (159) - (698,937) 219,715
------------ ------------- ------------- -------------
Net gain (loss) on investments....... (199) - (442,516) 616,960
------------ ------------- ------------- -------------
Reinvested capital gains............... 13 - 1,435,527 370,511
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 110 - 1,177,646 1,134,390
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 6,597 - 2,532,030 1,689,785
Transfers between funds ............... 12,339 - (151,020) (77,999)
Redemptions............................ - - (704,769) (1,129,423)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - (42)
Adjustments to maintain reserves....... (81) - 365 2,277
------------ ------------- ------------- -------------
Net equity transactions............ 18,855 - 1,676,606 484,598
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 18,965 - 2,854,252 1,618,988
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - 6,642,815 5,023,827
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 18,965 - 9,497,067 6,642,815
============ ============= ============= =============
</TABLE>
20
<PAGE> 20
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
FidCapInc FidContr
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 126,811 94,905 1,863,318 1,712,764
Mortality and expense charges (note 2). (2,324) (6,810) (450,698) (1,095,804)
Administration charge (note 2):
Tier I ........................ (730) (2,241) (255,752) (644,732)
Tier II ....................... (237) (657) (64,735) (155,250)
Tier III ...................... (298) (831) (26,384) (60,205)
Tier IV ....................... (63) (170) (8,436) (19,745)
Tier V ........................ (169) (506) (6,165) (10,700)
Variable account fee (notes 2 and 5)... (7,180) - (1,870,589) -
------------ ------------ ------------ ------------
Net investment activity.............. 115,810 83,690 (819,441) (273,672)
Proceeds from mutual fund shares sold.. 173,665 181,090 7,189,568 24,431,745
Cost of mutual fund shares sold........ (127,055) (133,415) (4,326,016) (15,172,449)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 46,610 47,675 2,863,552 9,259,296
Change in unrealized gain (loss) on investments (143,059) 43,602 55,803,182 11,711,270
------------ ------------ ------------ ------------
Net gain (loss) on investments....... (96,449) 91,277 58,666,734 20,970,566
------------ ------------ ------------ ------------
Reinvested capital gains............... 33,909 - 26,157,555 21,858,485
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners
equity resulting from operations. 53,270 174,967 84,004,848 42,555,379
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... - - 77,487,132 71,455,791
Transfers between funds ............... (96,294) (47,356) (11,104,263) 2,764,788
Redemptions............................ (65,869) (120,296) (20,740,068) (35,148,446)
Annual contract maintenance charge (note 2) - - (24) (12)
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (184) (69) 13,064 (25,659)
------------ ------------ ------------ ------------
Net equity transactions............ (162,347) (167,721) 45,655,841 39,046,462
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (109,077) 7,246 129,660,689 81,601,841
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 1,374,317 1,367,071 250,585,641 168,983,800
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 1,265,240 1,374,317 380,246,330 250,585,641
============ ============ ============ ============
<CAPTION>
FidEqinc FidGrinc
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 4,640,372 4,846,247 156,434 171,835
Mortality and expense charges (note 2). (506,185) (1,228,965) (21,607) (72,380)
Administration charge (note 2):
Tier I ........................ (221,393) (555,462) - (39,476)
Tier II ....................... (76,233) (182,609) - -
Tier III ...................... (23,869) (56,191) - -
Tier IV ....................... (11,688) (27,411) - -
Tier V ........................ (28,770) (66,404) (6,482) (8,555)
Variable account fee (notes 2 and 5)... (1,692,590) - (78,976) -
------------ ------------- ------------- -------------
Net investment activity.............. 2,079,644 2,729,205 49,369 51,424
Proceeds from mutual fund shares sold.. 43,609,506 7,591,614 2,491,096 15,556,109
Cost of mutual fund shares sold........ (22,032,336) (4,094,211) (1,954,895) (12,289,818)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 21,577,170 3,497,403 536,201 3,266,291
Change in unrealized gain (loss) on investments (3,426,262) 43,670,084 2,368,630 (795,078)
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 18,150,908 47,167,487 2,904,831 2,471,213
------------ ------------- ------------- -------------
Reinvested capital gains............... 12,941,873 10,700,332 912,942 617,392
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 33,172,425 60,597,024 3,867,142 3,140,029
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 57,359,101 49,555,826 10,539,635 8,903,236
Transfers between funds ............... (24,012,463) 7,627,274 194,224 1,906,025
Redemptions............................ (48,768,023) (16,944,810) (2,164,138) (15,606,356)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - (2,187) - -
Adjustments to maintain reserves....... 801 (2,091) 124 973
------------ ------------- ------------- -------------
Net equity transactions............ (15,420,584) 40,234,012 8,569,845 (4,796,122)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 17,751,841 100,831,036 12,436,987 (1,656,093)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 294,333,089 193,502,053 8,902,461 10,558,554
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 312,084,930 294,333,089 21,339,448 8,902,461
============ ============= ============= =============
</TABLE>
(Continued)
21
<PAGE> 21
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
FidMgin FidVIPAM
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 1,642,041 2,776,362 1,218 832
Mortality and expense charges (note 2). (398,587) (1,029,833) (66) (152)
Administration charge (note 2):
Tier I ........................ (202,623) (554,264) (59) (137)
Tier II ....................... (44,270) (107,173) - -
Tier III ...................... (16,514) (39,771) - -
Tier IV ....................... (6,415) (15,441) - -
Tier V ........................ (22,365) (52,539) - -
Variable account fee (notes 2 and 5)... (1,495,579) - (280) -
------------ ------------ ------------ ------------
Net investment activity.............. (544,312) 977,341 813 543
Proceeds from mutual fund shares sold.. 21,671,959 17,843,381 2,675 -
Cost of mutual fund shares sold........ (15,120,252) (14,477,806) (2,284) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 6,551,707 3,365,575 391 -
Change in unrealized gain (loss) on investments 56,502,870 29,086,622 842 2,692
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 63,054,577 32,452,197 1,233 2,692
------------ ------------ ------------ ------------
Reinvested capital gains............... 12,423,793 11,739,123 3,653 2,086
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 74,934,058 45,168,661 5,699 5,321
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 45,406,273 41,946,309 8,531 9,177
Transfers between funds ............... (5,882,750) (12,805,250) - 95
Redemptions............................ (32,023,667) (22,357,376) (2,633) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (5) (1,445) - -
Adjustments to maintain reserves....... 5,882 (7,838) (1) -
------------ ------------ ------------ ------------
Net equity transactions............ 7,505,733 6,774,400 5,897 9,272
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 82,439,791 51,943,061 11,596 14,593
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 228,989,269 177,046,208 37,760 23,167
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $311,429,060 228,989,269 49,356 37,760
============ ============ ============ ============
<CAPTION>
FidVIPEI FidVIPGr
--------------------------- ----------------------------
1998 1997 1998 1997
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 2,576 1,638 694 565
Mortality and expense charges (note 2). (316) (656) (240) (540)
Administration charge (note 2):
Tier I ........................ (284) (591) (216) (486)
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (1,254) - (1,128) -
------------ ------------- ------------- -------------
Net investment activity.............. 722 391 (890) (461)
Proceeds from mutual fund shares sold.. 32,991 881 6,452 2,530
Cost of mutual fund shares sold........ (22,023) (609) (3,841) (1,696)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 10,968 272 2,611 834
Change in unrealized gain (loss) on investments 467 21,307 36,858 17,902
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 11,435 21,579 39,469 18,736
------------ ------------- ------------- -------------
Reinvested capital gains............... 9,167 8,234 18,160 2,531
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 21,324 30,204 56,739 20,806
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 43,053 46,876 35,276 33,185
Transfers between funds ............... (9,466) 67 - (1,451)
Redemptions............................ (7,379) (143) (5,371) (284)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 8 (21) 26 3
------------ ------------- ------------- -------------
Net equity transactions............ 26,216 46,779 29,931 31,453
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 47,540 76,983 86,670 52,259
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 168,954 91,971 133,237 80,978
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 216,494 168,954 219,907 133,237
============ ============= ============= =============
</TABLE>
22
<PAGE> 22
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
FidVIPHI FidVIPOv
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 3,277 1,817 2,978 1,845
Mortality and expense charges (note 2). (80) (173) (275) (679)
Administration charge (note 2):
Tier I ........................ (72) (156) (247) (611)
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (310) - (946) -
------------ ------------ ------------ ------------
Net investment activity.............. 2,815 1,488 1,510 555
Proceeds from mutual fund shares sold.. 8,878 20 59,366 1,605
Cost of mutual fund shares sold........ (9,385) (17) (49,880) (1,311)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. (507) 3 9,486 294
Change in unrealized gain (loss) on investments (7,529) 3,589 (3,645) 2,792
------------ ------------ ------------ ------------
Net gain (loss) on investments....... (8,036) 3,592 5,841 3,086
------------ ------------ ------------ ------------
Reinvested capital gains............... 2,082 225 8,777 7,326
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. (3,139) 5,305 16,128 10,967
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 9,559 16,116 18,183 37,048
Transfers between funds ............... (8,866) - (56,597) 9,863
Redemptions............................ - - (998) (581)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... - (2) (21) 2
------------ ------------ ------------ ------------
Net equity transactions............ 693 16,114 (39,433) 46,332
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (2,446) 21,419 (23,305) 57,299
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 45,432 24,013 159,596 102,297
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 42,986 45,432 136,291 159,596
============ ============ ============ ============
<CAPTION>
GroFdAm IncFdAm
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 70,297 83,852 945,621 802,807
Mortality and expense charges (note 2). (24,381) (57,706) (31,811) (86,189)
Administration charge (note 2):
Tier I ........................ (14,294) (34,281) (19,475) (55,580)
Tier II ....................... (3,521) (7,916) (5,215) (12,467)
Tier III ...................... (1,856) (4,327) (1,414) (3,364)
Tier IV ....................... (402) (1,003) (519) (1,297)
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (95,760) - (118,013) -
------------ ------------- ------------- -------------
Net investment activity.............. (69,917) (21,381) 769,174 643,910
Proceeds from mutual fund shares sold.. 2,326,943 1,428,368 2,414,779 3,825,869
Cost of mutual fund shares sold........ (1,849,031) (1,129,814) (1,789,136) (2,940,941)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 477,912 298,554 625,643 884,928
Change in unrealized gain (loss) on investments 2,260,735 937,071 (1,091,203) 357,933
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 2,738,647 1,235,625 (465,560) 1,242,861
------------ ------------- ------------- -------------
Reinvested capital gains............... 1,726,170 1,328,724 1,297,143 1,368,961
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 4,394,900 2,542,968 1,600,757 3,255,732
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,880,077 2,447,734 3,418,594 3,463,650
Transfers between funds ............... (558,934) (330,586) (1,370,792) (263,093)
Redemptions............................ (1,058,856) (846,573) (1,488,464) (3,321,842)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 286 (854) 116 170
------------ ------------- ------------- -------------
Net equity transactions............ 1,262,573 1,269,721 559,454 (121,115)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 5,657,473 3,812,689 2,160,211 3,134,617
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 13,592,368 9,779,679 18,355,405 15,220,788
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 19,249,841 13,592,368 20,515,616 18,355,405
============ ============= ============= =============
</TABLE>
(Continued)
23
<PAGE> 23
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
InvDynam InvIndinc
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------- ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 605,912 503,142
Mortality and expense charges (note 2). - - (40,935) (102,486)
Administration charge (note 2):
Tier I ........................ - - (26,247) (68,066)
Tier II ....................... - - (6,522) (15,321)
Tier III ...................... - - (1,097) (2,187)
Tier IV ....................... - - (717) (1,625)
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (10) - (158,242) -
------------ ------------ ------------ ------------
Net investment activity.............. (10) - 372,152 313,457
Proceeds from mutual fund shares sold.. 6,997 - 1,979,934 2,918,824
Cost of mutual fund shares sold........ (7,179) - (1,412,824) (2,133,346)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. (182) - 567,110 785,478
Change in unrealized gain (loss) on investments 2,237 - (296,231) 1,085,683
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 2,055 - 270,879 1,871,161
------------ ------------ ------------ ------------
Reinvested capital gains............... 861 - 2,563,688 2,264,235
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 2,906 - 3,206,719 4,448,853
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 22,113 - 5,778,407 5,518,647
Transfers between funds ............... 32,022 - (2,075,401) (42,962)
Redemptions............................ - - (1,577,795) (3,356,403)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (11) - 335 (284)
------------ ------------ ------------ ------------
Net equity transactions............ 54,124 - 2,125,546 2,118,998
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 57,030 - 5,332,265 6,567,851
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - 22,890,103 16,322,252
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 57,030 - 28,222,368 22,890,103
============ ============ ============ ============
<CAPTION>
InvToTRet JanFund
----------------------------- ----------------------------
1998 1997 1998 1997
------------- ------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 84 - 255,272 504,628
Mortality and expense charges (note 2). - - (123,418) (263,647)
Administration charge (note 2):
Tier I ........................ - - (73,139) (155,821)
Tier II ....................... - - (18,968) (40,695)
Tier III ...................... - - (5,896) (12,305)
Tier IV ....................... - - (3,446) (7,654)
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (48) - (572,068) -
------------ ------------- ------------- -------------
Net investment activity.............. 36 - (541,663) 24,506
Proceeds from mutual fund shares sold.. - - 5,913,478 1,817,544
Cost of mutual fund shares sold........ - - (4,178,412) (1,287,899)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. - - 1,735,066 529,645
Change in unrealized gain (loss) on investments (492) - 27,025,929 (1,083,219)
------------ ------------- ------------- -------------
Net gain (loss) on investments....... (492) - 28,760,995 (553,574)
------------ ------------- ------------- -------------
Reinvested capital gains............... 2,113 - 3,109,129 10,329,860
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 1,657 - 31,328,461 9,800,792
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 33,134 - 30,660,731 22,193,127
Transfers between funds ............... 96,955 - 9,765,202 385,853
Redemptions............................ - - (6,044,122) (3,993,919)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (1) - 13,252 (6,804)
------------ ------------- ------------- -------------
Net equity transactions............ 130,088 - 34,395,063 18,578,257
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 131,745 - 65,723,524 28,379,049
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - 65,725,920 37,346,871
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 131,745 - 131,449,444 65,725,920
============ ============= ============= =============
</TABLE>
24
<PAGE> 24
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
Jan20Fd JanWrldwde
----------------------------- ----------------------------
1998 1997 1998 1997
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - 45 4,603 -
Mortality and expense charges (note 2). (96) (643) (52) -
Administration charge (note 2):
Tier I ........................ (86) (578) (46) -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... - - (4,975) -
------------ ------------ ------------ ------------
Net investment activity.............. (182) (1,176) (470) -
Proceeds from mutual fund shares sold.. 234,631 571,046 280,474 -
Cost of mutual fund shares sold........ (218,097) (609,105) (276,630) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 16,534 (38,059) 3,844 -
Change in unrealized gain (loss) on investments 1,871 33,644 32,242 -
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 18,405 (4,415) 36,086 -
------------ ------------ ------------ ------------
Reinvested capital gains............... - 2,061 - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 18,223 (3,530) 35,616 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 66,106 215,002 1,224,932 -
Transfers between funds ............... 112,713 124,576 42,958 -
Redemptions............................ (213,496) (569,390) (148,660) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (1) 4 778 -
------------ ------------ ------------ ------------
Net equity transactions............ (34,678) (229,808) 1,120,008 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (16,455) (233,338) 1,155,624 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 16,455 249,793 - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ - 16,455 1,155,624 -
============ ============ ============ ============
<CAPTION>
MASFIP MFSGrStk
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 262,173 131,839 3,357 3,241
Mortality and expense charges (note 2). (5,269) (9,679) (13,218) (30,470)
Administration charge (note 2):
Tier I ........................ (2,984) (5,793) (3,786) (8,816)
Tier II ....................... (671) (1,213) (577) (1,116)
Tier III ...................... (494) (733) (217) (501)
Tier IV ....................... (117) (202) (3) (8)
Tier V ........................ - - (2,376) (5,527)
Variable account fee (notes 2 and 5)... (25,897) - (45,122) -
------------ ------------- ------------- -------------
Net investment activity.............. 226,741 114,219 (61,942) (43,197)
Proceeds from mutual fund shares sold.. 2,064,790 1,183,622 763,833 806,782
Cost of mutual fund shares sold........ (2,063,602) (1,164,040) (594,289) (796,449)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 1,188 19,582 169,544 10,333
Change in unrealized gain (loss) on investments (138,309) (6,279) 1,977,242 1,199,210
------------ ------------- ------------- -------------
Net gain (loss) on investments....... (137,121) 13,303 2,146,786 1,209,543
------------ ------------- ------------- -------------
Reinvested capital gains............... 141,173 34,732 835,048 1,104,545
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 230,793 162,254 2,919,892 2,270,891
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,337,578 892,120 938,045 560,733
Transfers between funds ............... 1,227,491 562,385 49,079 54,405
Redemptions............................ (408,984) (220,277) (652,945) (695,501)
Annual contract maintenance charge (note 2) - - (489) (486)
Contingent deferred sales charges (note 2) - - (185) (456)
Adjustments to maintain reserves....... 769 (131) 180 451
------------ ------------- ------------- -------------
Net equity transactions............ 3,156,854 1,234,097 333,685 (80,854)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 3,387,647 1,396,351 3,253,577 2,190,037
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,659,273 1,262,922 7,205,011 5,014,974
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 6,046,920 2,659,273 10,458,588 7,205,011
============ ============= ============= =============
</TABLE>
(Continued)
25
<PAGE> 25
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
MFSGrOpp MFSHIInc
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 456,237 312,636
Mortality and expense charges (note 2). (50,612) (134,126) (7,916) (18,058)
Administration charge (note 2):
Tier I ........................ (7,564) (22,570) (768) (2,559)
Tier II ....................... (4,456) (11,636) (201) (655)
Tier III ...................... (2,056) (5,520) (148) (418)
Tier IV ....................... (38) (108) - (1)
Tier V ........................ (9,935) (25,510) (1,969) (4,109)
Variable account fee (notes 2 and 5)... (155,715) - (25,707) -
------------ ------------ ------------ ------------
Net investment activity.............. (230,376) (199,470) 419,528 286,836
Proceeds from mutual fund shares sold.. 4,941,954 4,369,685 7,726,052 2,220,329
Cost of mutual fund shares sold........ (3,473,271) (3,326,454) (7,645,469) (2,126,593)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 1,468,683 1,043,231 80,583 93,736
Change in unrealized gain (loss) on investments 2,631,079 846,207 (532,483) 19,624
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 4,099,762 1,889,438 (451,900) 113,360
------------ ------------ ------------ ------------
Reinvested capital gains............... 3,810,336 3,444,649 - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owner's
equity resulting from operations. 7,679,722 5,134,617 (32,372) 400,196
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 3,001,332 1,426,143 2,601,573 610,811
Transfers between funds ............... (315,367) (942,811) (223,014) (123,874)
Redemptions............................ (2,525,453) (3,228,399) (931,136) (708,681)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (192) (21,750) 2,885 (2,782)
---------- ------------ ------------ ------------
Net equity transactions............ 160,320 (2,766,817) 1,450,308 (224,526)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 7,840,042 2,367,800 1,417,936 175,670
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 27,826,901 25,459,101 3,923,071 3,747,401
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 35,666,943 27,826,901 5,341,007 3,923,071
============ ============ ============ ============
<CAPTION>
MSIEqGroB NAATAggr
----------------------------- ----------------------------
1998 1997 1998 1997
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 95 - 507 -
Mortality and expense charges (note 2). - - (1,215) -
Administration charge (note 2):
Tier I ........................ - - (890) -
Tier II ....................... - - (141) -
Tier III ...................... - - (25) -
Tier IV ....................... - - (3) -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (45) - (13,433) -
------------ ------------- ------------- -------------
Net investment activity.............. 50 - (15,200) -
Proceeds from mutual fund shares sold.. 676 - 635,734 -
Cost of mutual fund shares sold........ (667) - (616,801) -
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 9 - 18,933 -
Change in unrealized gain (loss) on investments 1,514 - 196,583 -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 1,523 - 215,516 -
------------ ------------- ------------- -------------
Reinvested capital gains............... 3,097 - - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owner's
equity resulting from operations. 4,670 - 200,316 -
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 25,975 - 1,887,715 -
Transfers between funds ............... 67,174 - 1,152,077 -
Redemptions............................ - - (170,820) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 82 - 47 -
------------ ------------- ------------- -------------
Net equity transactions............ 93,231 - 2,869,019 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 97,901 - 3,069,335 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
------------- ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 97,901 - 3,069,335 -
============= ============= ============= =============
</TABLE>
26
<PAGE> 26
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
NAATcons NAATMod
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 5,626 - 5,843 -
Mortality and expense charges (note 2). (201) - (108) -
Administration charge (note 2):
Tier I ........................ (28) - (62) -
Tier II ....................... (2) - (17) -
Tier III ...................... (100) - (7) -
Tier IV ....................... - - (3) -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (1,900) - (5,098) -
------------ ------------ ----------- ------------
Net investment activity.............. 3,395 - 548 -
Proceeds from mutual fund shares sold.. 576,645 - 336,223 -
Cost of mutual fund shares sold........ (567,041) - (348,924) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 9,604 - (12,701) -
Change in unrealized gain (loss) on investments 19,647 - 147,065 -
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 29,251 - 134,364 -
------------ ------------ ------------ ------------
Reinvested capital gains............... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 32,646 - 134,912 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 195,908 - 1,292,678 -
Transfers between funds ............... 444,932 - 469,169 -
Redemptions............................ (78,995) - (126,526) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (4) - 30 -
------------ ------------ ------------ ------------
Net equity transactions............ 561,841 - 1,635,351 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 594,487 - 1,770,263 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 594,487 - 1,770,263 -
============ ============ ============ ============
<CAPTION>
NAATModAgg NAATModCon
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------- ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 5,390 - 5,191 -
Mortality and expense charges (note 2). (455) - (73) -
Administration charge (note 2):
Tier I ........................ (270) - (15) -
Tier II ....................... (61) - (1) -
Tier III ...................... (42) - (33) -
Tier IV ....................... (3) - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (6,084) - (2,642) -
------------ ------------- ------------- -------------
Net investment activity.............. (1,525) - 2,427 -
Proceeds from mutual fund shares sold.. 464,789 - 126,322 -
Cost of mutual fund shares sold........ (466,292) - (122,914) -
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. (1,503) - 3,408 -
Change in unrealized gain (loss) on investments 102,054 - 53,826 -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 100,551 - 57,234 -
------------ ------------- ------------- -------------
Reinvested capital gains............... - - - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 99,026 - 59,661 -
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 1,191,358 - 345,421 -
Transfers between funds ............... 379,175 - 511,458 -
Redemptions............................ (93,431) - (41,109) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 39 - 43 -
------------ ------------- ------------- -------------
Net equity transactions............ 1,477,141 - 815,813 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 1,576,167 - 875,474 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 1,576,167 - 875,474 -
============ ============= ============= =============
</TABLE>
(Continued)
27
<PAGE> 27
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
NWBdFd NWFund
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 8,729 8,172 1,275,418 690,370
Mortality and expense charges (note 2). (177) (641) (162,460) (266,484)
Administration charge (note 2):
Tier I ........................ - (76) (71,265) (123,555)
Tier II ....................... - - (20,611) (35,569)
Tier III ...................... - - (8,929) (14,919)
Tier IV ....................... - - (2,770) (3,750)
Tier V ........................ (53) (167) (10,712) (15,150)
Variable account fee (notes 2 and 5)... (874) - (793,939) -
------------ ------------ ------------ ------------
Net investment activity.............. 7,625 7,288 204,732 230,943
Proceeds from mutual fund shares sold.. 32,175 78,071 7,155,989 3,524,263
Cost of mutual fund shares sold........ (30,850) (82,229) (3,977,604) (2,432,914)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 1,325 (4,158) 3,178,385 1,091,349
Change in unrealized gain (loss) on investments 2,630 6,157 21,386,876 11,194,545
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 3,955 1,999 24,565,261 12,285,894
------------ ------------ ------------ ------------
Reinvested capital gains............... - - 7,428,131 3,686,826
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 11,580 9,287 32,198,124 16,203,663
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 173,475 22,759 59,228,416 15,483,476
Transfers between funds ............... (21,724) (33,788) 35,685,404 13,256,766
Redemptions............................ (840) (46,264) (13,470,684) (4,206,078)
Annual contract maintenance charge (note 2) - - (1,070) (1,088)
Contingent deferred sales charges (note 2) - - (1,062) (897)
Adjustments to maintain reserves....... (84) (12) 6,785 433
------------ ------------ ------------ ------------
Net equity transactions............ 150,827 (57,305) 81,447,789 24,532,612
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 162,407 (48,018) 113,645,913 40,736,275
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 111,736 159,754 75,327,367 34,591,092
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 274,143 111,736 188,973,280 75,327,367
============ ============ ============ ============
<CAPTION>
NWGroFd NWMyMkt
---------------------------- --------------------------
1998 1997 1998 1997
------------ ------------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 14,337 68,821 3,234,302 2,956,768
Mortality and expense charges (note 2). (18,865) (44,059) (103,945) (298,652)
Administration charge (note 2):
Tier I ........................ (6,715) (17,354) (33,864) (99,691)
Tier II ....................... (2,143) (5,594) (27,756) (78,281)
Tier III ...................... (475) (1,245) (3,371) (9,259)
Tier IV ....................... (992) (2,168) (2,320) (6,949)
Tier V ........................ (1,636) (3,087) (6,062) (17,169)
Variable account fee (notes 2 and 5)... (68,124) - (356,313) -
------------ ------------- ------------- -------------
Net investment activity.............. (84,613) (4,686) 2,700,671 2,446,767
Proceeds from mutual fund shares sold.. 3,211,852 888,498 125,064,177 90,261,974
Cost of mutual fund shares sold........ (2,238,411) (640,663) (125,064,177) (90,261,974)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 973,441 247,835 - -
Change in unrealized gain (loss) on investments 746,981 428,346 - -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 1,720,422 676,181 - -
------------ ------------- ------------- -------------
Reinvested capital gains............... 688,315 1,209,332 - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 2,324,124 1,880,827 2,700,671 2,446,767
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 2,626,268 1,294,729 15,218,549 9,680,836
Transfers between funds ............... (14,054) (227,077) 7,542,179 (8,123,293)
Redemptions............................ (1,150,765) (510,560) (11,436,140) (6,330,019)
Annual contract maintenance charge (note 2) - - (14) (15)
Contingent deferred sales charges (note 2) - - - (2,230)
Adjustments to maintain reserves....... 93 95 17,615 25,609
------------ ------------- ------------- -------------
Net equity transactions............ 1,461,542 557,187 11,342,189 (4,749,112)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 3,785,666 2,438,014 14,042,860 (2,302,345)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 9,970,932 7,532,918 56,626,599 58,928,944
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 13,756,598 9,970,932 70,669,459 56,626,599
============ ============= ============= =============
</TABLE>
28
<PAGE> 28
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
NWindxFdY NSATGvtBd
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 1,092 - 932 825
Mortality and expense charges (note 2). - - (25) (67)
Administration charge (note 2):
Tier I ........................ - - (23) (60)
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (272) - (114) -
------------ ------------ ------------ ------------
Net investment activity.............. 820 - 770 698
Proceeds from mutual fund shares sold.. 12,991 - 98 2,513
Cost of mutual fund shares sold........ (12,980) - (91) (2,354)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 11 - 7 159
Change in unrealized gain (loss) on investments 18,449 - 413 270
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 18,460 - 420 429
------------ ------------ ------------ ------------
Reinvested capital gains............... - - 93 -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 19,280 - 1,283 1,127
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 81,674 - 3,575 3,575
Transfers between funds ............... 507,742 - - -
Redemptions............................ (6,153) - (188) (2,506)
Annual contract maintenance charge (note 2) - - (12) (32)
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 91 - - (1)
------------ ------------ ------------ ------------
Net equity transactions............ 583,354 - 3,375 1,036
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 602,634 - 4,658 2,163
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - 14,781 12,618
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 602,634 - 19,439 14,781
============ ============ ============ ============
<CAPTION>
NSATMyMkt NSATSmCo
---------------------------- ------------------------------
1998 1997 1998 1997
------------ ------------ ------------- -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 1,928 1,378 - -
Mortality and expense charges (note 2). (25) (135) (1,113) -
Administration charge (note 2):
Tier I ........................ (22) (121) (458) -
Tier II ....................... - - (337) -
Tier III ...................... - - (85) -
Tier IV ....................... - - (17) -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (319) - (13,276) -
------------ ------------- ------------- -------------
Net investment activity.............. 1,562 1,122 (15,286) -
Proceeds from mutual fund shares sold.. 1,610 37,780 2,561,737 -
Cost of mutual fund shares sold........ (1,610) (37,780) (2,738,916) -
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. - - (177,179) -
Change in unrealized gain (loss) on investments - - 283,712 -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... - - 106,533 -
------------ ------------- ------------- -------------
Reinvested capital gains............... - - - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 1,562 1,122 91,247 -
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 9,243 8,580 1,668,534 -
Transfers between funds ............... 56,989 (15,000) 1,950,841 -
Redemptions............................ - (22,757) (173,431) -
Annual contract maintenance charge (note 2) - (5) - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 12 (7) 1,142 -
------------ ------------- ------------- -------------
Net equity transactions............ 66,244 (29,189) 3,447,086 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 67,806 (28,067) 3,538,333 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 8,353 36,420 - -
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 76,159 8,353 3,538,333 -
============ ============= ============= =============
</TABLE>
(Continued)
29
<PAGE> 29
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
NSATTotRe NBAMTGro
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 1,442 1,290 - -
Mortality and expense charges (note 2). (226) (444) (46) (114)
Administration charge (note 2):
Tier I ........................ (203) (399) (42) (103)
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (898) - (179) -
------------ ------------ ------------ ------------
Net investment activity.............. 115 447 (267) (217)
Proceeds from mutual fund shares sold.. 12,829 374 7,379 289
Cost of mutual fund shares sold........ (6,994) (234) (7,320) (224)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 5,835 140 59 65
Change in unrealized gain (loss) on investments 10,427 13,515 (2,595) 3,892
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 16,262 13,655 (2,536) 3,957
------------ ------------ ------------ ------------
Reinvested capital gains............... 5,748 4,114 7,561 1,560
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 22,125 18,216 4,758 5,300
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 8,798 27,743 9,567 6,212
Transfers between funds ............... - 36,972 - -
Redemptions............................ (12,584) (149) (7,559) (143)
Annual contract maintenance charge (note 2) (12) (4) - (10)
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 2 11 1 1
------------ ------------ ------------ ------------
Net equity transactions............ (3,796) 64,573 2,009 6,060
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 18,329 82,789 6,767 11,360
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 129,271 46,482 28,237 16,877
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 147,600 129,271 35,004 28,237
============ ============ ============ ============
<CAPTION>
NBAMTLMat NBAMTPart
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY: 554 441 142 47
Reinvested dividends .................. (15) (44) (63) (104)
Mortality and expense charges (note 2).
Administration charge (note 2): (13) (40) (56) (93)
Tier I ........................ - - - -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ (65) - (325) -
Variable account fee (notes 2 and 5)... ------------ ------------- ------------- -------------
461 357 (302) (150)
Net investment activity..............
- 3,118 1,445 346
Proceeds from mutual fund shares sold.. - (3,150) (670) (161)
Cost of mutual fund shares sold........ ------------ ------------- ------------- -------------
- (32) 775 185
Realized gain (loss) on investments.. (144) 176 (3,210) 4,404
Change in unrealized gain (loss) on investments ------------ ------------- ------------- -------------
(144) 144 (2,435) 4,589
Net gain (loss) on investments....... ------------ ------------- ------------- -------------
- - 4,468 729
Reinvested capital gains............... ------------ ------------- ------------- -------------
Net increase (decrease) in contract owners' 317 501 1,731 5,168
equity resulting from operations. ------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from 2,375 4,298 30,030 6,119
contract owners...................... - (3,114) 3,872 3,543
Transfers between funds ............... - - (1,397) (167)
Redemptions............................ - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - (1) (2)
Adjustments to maintain reserves....... ------------ ------------- ------------- -------------
2,375 1,184 32,504 9,493
Net equity transactions............
2,692 1,685 34,235 14,661
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 8,440 6,755 29,431 14,770
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ------------ ------------- ------------- -------------
11,132 8,440 63,666 29,431
CONTRACT OWNERS' EQUITY END OF PERIOD.... ============ ============= ============= =============
</TABLE>
30
<PAGE> 30
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
NBGuard NBManhFd
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 8,655 4,553 - -
Mortality and expense charges (note 2). (1,980) (3,053) (217) (810)
Administration charge (note 2):
Tier I ........................ (393) - (195) (729)
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ (463) (916) - -
Variable account fee (notes 2 and 5)... (6,774) - (1,138) -
------------ ------------ ------------ ------------
Net investment activity.............. (955) 584 (1,550) (1,539)
Proceeds from mutual fund shares sold.. 1,760,387 453,514 4,438 223,724
Cost of mutual fund shares sold........ (2,068,736) (414,080) (4,754) (233,494)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. (308,349) 39,434 (316) (9,770)
Change in unrealized gain (loss) on investments 72,024 (121,548) 18,278 14,259
------------ ------------ ------------ ------------
Net gain (loss) on investments....... (236,325) (82,114) 17,962 4,489
------------ ------------ ------------ ------------
Reinvested capital gains............... 228,090 128,744 16,709 31,773
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. (9,190) 47,214 33,121 34,723
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 1,175,835 620,995 103,867 19,016
Transfers between funds ............... (425,526) 226,325 (255) (53,207)
Redemptions............................ (220,657) (60,295) (3,629) (170,571)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - (4) -
Adjustments to maintain reserves....... (850) 838 - (24)
------------ ------------ ------------ ------------
Net equity transactions............ 528,802 787,863 99,979 (204,786)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 519,612 835,077 133,100 (170,063)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 984,329 149,252 124,816 294,879
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 1,503,941 984,329 257,916 124,816
============ ============ ============ ============
<CAPTION>
NBPartFd NBGuardTr
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - 11,614 - -
Mortality and expense charges (note 2). (1,836) (4,937) (28) -
Administration charge (note 2):
Tier I ........................ (1,652) (4,443) (25) -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... - - - -
------------ ------------- ------------- -------------
Net investment activity.............. (3,488) 2,234 (53) -
Proceeds from mutual fund shares sold.. 2,754,448 359,092 68,479 -
Cost of mutual fund shares sold........ (2,803,651) (298,999) (63,557) -
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. (49,203) 60,093 4,922 -
Change in unrealized gain (loss) on investments 210,691 (210,691) - -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 161,488 (150,598) 4,922 -
------------ ------------- ------------- -------------
Reinvested capital gains............... - 356,973 - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 158,000 208,609 4,869 -
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 363,321 350,067 33,268 -
Transfers between funds ............... 245,865 1,620,917 27,513 -
Redemptions............................ (2,766,371) (180,319) (65,651) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - (81) - -
Adjustments to maintain reserves....... 41 (49) 1 -
------------ ------------- ------------- -------------
Net equity transactions............ (2,157,144) 1,790,535 (4,869) -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (1,999,144) 1,999,144 - -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 1,999,144 - - -
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... - 1,999,144 - -
============ ============= ============= =============
</TABLE>
(Continued)
31
<PAGE> 31
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
NBPartTr PrBalY
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 101 -
Mortality and expense charges (note 2). - - - -
Administration charge (note 2):
Tier I ........................ - - - -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (4) - (25) -
------------ ------------ ------------ ------------
Net investment activity.............. (4) - 76 -
Proceeds from mutual fund shares sold.. 14,303 - 1,150 -
Cost of mutual fund shares sold........ (14,138) - (1,099) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 165 - 51 -
Change in unrealized gain (loss) on investments 6 - 1,222 -
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 171 - 1,273 -
------------ ------------ ------------ ------------
Reinvested capital gains............... 120 - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 287 - 1,349 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 4,656 - 27,624 -
Transfers between funds ............... 41,930 - 26,228 -
Redemptions............................ - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (30) - 23 -
------------ ------------ ------------ ------------
Net equity transactions............ 46,556 - 53,875 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 46,843 - 55,224 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 46,843 - 55,224 -
============ ============ ============ ============
<CAPTION>
PrintY PrLgCapGrY
---------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - - - -
Mortality and expense charges (note 2). - - - -
Administration charge (note 2):
Tier I ........................ - - - -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (12) - (32) -
------------ ------------- ------------- -------------
Net investment activity.............. (12) - (32) -
Proceeds from mutual fund shares sold.. 1,317 - 15,581 -
Cost of mutual fund shares sold........ (1,294) - (14,964) -
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 23 - 617 -
Change in unrealized gain (loss) on investments 618 - 3,881 -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 641 - 4,498 -
------------ ------------- ------------- -------------
Reinvested capital gains............... - - - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 629 - 4,466 -
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 3,159 - 21,069 -
Transfers between funds ............... 15,229 - 38,378 -
Redemptions............................ - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 1 - 311 -
------------ ------------- ------------- -------------
Net equity transactions............ 18,389 - 59,758 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 19,018 - 64,224 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 19,018 - 64,224 -
============ ============= ============= =============
</TABLE>
32
<PAGE> 32
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
PrLgCpValY PrSmCapY
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 25 - 25 -
Mortality and expense charges (note 2). - - - -
Administration charge (note 2):
Tier I ........................ - - - -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ - - - -
Variable account fee (notes 2 and 5)... (6) - (17) -
------------ ------------ ------------ ------------
Net investment activity.............. 19 - 8 -
Proceeds from mutual fund shares sold.. - - 1,003 -
Cost of mutual fund shares sold........ - - (960) -
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. - - 43 -
Change in unrealized gain (loss) on investments 242 - 1,880 -
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 242 - 1,923 -
------------ ------------ ------------ ------------
Reinvested capital gains............... - - - -
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 261 - 1,931 -
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 997 - 6,201 -
Transfers between funds ............... 9,117 - 32,130 -
Redemptions............................ - - - -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... 29 - (9) -
------------ ------------ ------------ ------------
Net equity transactions............ 10,143 - 38,322 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 10,404 - 40,253 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - - -
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 10,404 - 40,253 -
============ ============ ============ ============
<CAPTION>
OppGlob PutInvFd
----------------------------- -----------------------------
1998 1997 1998 1997
------------ ------------- ------------ -------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 382 - - 151,621
Mortality and expense charges (note 2). - - (85,320) (195,092)
Administration charge (note 2):
Tier I ........................ - - (14,831) (40,182)
Tier II ....................... - - (3,668) (9,409)
Tier III ...................... - - (942) (2,362)
Tier IV ....................... - - (62) (153)
Tier V ........................ - - (18,760) (40,310)
Variable account fee (notes 2 and 5)... (37) - (298,201) -
------------ ------------- ------------- -------------
Net investment activity.............. 345 - (421,784) (135,887)
Proceeds from mutual fund shares sold.. 5,723 - 6,828,788 4,687,426
Cost of mutual fund shares sold........ (6,015) - (4,492,724) (3,887,599)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. (292) - 2,336,064 799,827
Change in unrealized gain (loss) on investments 456 - 13,802,953 6,208,349
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 164 - 16,139,017 7,008,176
------------ ------------- ------------- -------------
Reinvested capital gains............... 2,941 - 1,853,165 3,906,053
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 3,450 - 17,570,398 10,778,342
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 17,726 - 14,227,151 4,228,718
Transfers between funds ............... 118,096 - 2,036,253 483,737
Redemptions............................ - - (4,706,872) (4,259,983)
Annual contract maintenance charge (note 2) - - (837) (897)
Contingent deferred sales charges (note 2) - - (321) (3,177)
Adjustments to maintain reserves....... 36 - 1,034 (1,786)
------------ ------------- ------------- -------------
Net equity transactions............ 135,858 - 11,556,408 446,612
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 139,308 - 29,126,806 11,224,954
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - - 44,983,644 33,758,690
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 139,308 - 74,110,450 44,983,644
============ ============= ============= =============
</TABLE>
(Continued)
33
<PAGE> 33
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
PutVoyFd SEI500lx
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ - - 362,899 150,459
Mortality and expense charges (note 2). (252,564) (555,728) (37,050) (54,468)
Administration charge (note 2):
Tier I ........................ (140,670) (309,069) (936) (10,682)
Tier II ....................... (37,138) (83,941) (341) (712)
Tier III ...................... (13,406) (30,283) - -
Tier IV ....................... (6,144) (14,092) - -
Tier V ........................ (3,642) (6,508) (10,675) (12,513)
Variable account fee (notes 2 and 5)... (1,017,243) - (151,150) -
------------ ------------ ------------ ------------
Net investment activity.............. (1,470,807) (999,621) 162,747 72,084
Proceeds from mutual fund shares sold.. 2,943,852 3,521,888 6,687,829 8,384,055
Cost of mutual fund shares sold........ (1,717,411) (2,454,300) (5,220,572) (6,905,964)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 1,226,441 1,067,588 1,467,257 1,478,091
Change in unrealized gain (loss) on investments 22,821,764 16,465,312 5,210,894 859,863
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 24,048,205 17,532,900 6,678,151 2,337,954
------------ ------------ ------------ ------------
Reinvested capital gains............... 13,977,317 8,147,769 365,867 101,303
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 36,554,715 24,681,048 7,206,765 2,511,341
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 51,708,613 40,104,364 21,490,017 9,263,710
Transfers between funds ............... (6,170,941) (7,100,256) 3,560,351 5,120,331
Redemptions............................ (11,182,910) (8,346,447) (5,241,962) (5,549,796)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) (4) - - -
Adjustments to maintain reserves....... 9,322 (16,760) 506 626
------------ ------------ ------------ ------------
Net equity transactions............ 34,364,080 24,640,901 19,808,912 8,834,871
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 70,918,795 49,321,949 27,015,677 11,346,212
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 137,879,063 88,557,114 15,258,034 3,911,822
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $208,797,858 137,879,063 42,273,711 15,258,034
============ ============ ============ ============
<CAPTION>
SelGroFd StComStk
----------------------------- ----------------------------
1998 1997 1998 1997
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. 5,032 - - 700
Mortality and expense charges (note 2). (5,110) (13,883) - (27,052)
Administration charge (note 2):
Tier I ........................ (1,877) (5,127) - (24,346)
Tier II ....................... (192) (533) - -
Tier III ...................... (122) (319) - -
Tier IV ....................... (6) (16) - -
Tier V ........................ (770) (2,084) - -
Variable account fee (notes 2 and 5)... (17,203) - - -
------------ ------------- ------------- -------------
Net investment activity.............. (20,248) (21,962) - (50,698)
Proceeds from mutual fund shares sold.. 297,835 421,999 - 9,411,196
Cost of mutual fund shares sold........ (221,285) (373,415) - (8,332,762)
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. 76,550 48,584 - 1,078,434
Change in unrealized gain (loss) on investments 571,477 75,942 - (44,067)
------------ ------------- ------------- -------------
Net gain (loss) on investments....... 648,027 124,526 - 1,034,367
------------ ------------- ------------- -------------
Reinvested capital gains............... 331,423 331,508 - 121,492
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 959,202 434,072 - 1,105,161
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 145,949 172,142 - 3,697,972
Transfers between funds ............... (100,050) (199,396) - 658,529
Redemptions............................ (198,476) (202,858) - (9,645,678)
Annual contract maintenance charge (note 2) (366) (395) - -
Contingent deferred sales charges (note 2) (131) (79) - -
Adjustments to maintain reserves....... (79) (18) - 93
------------ ------------- ------------- -------------
Net equity transactions............ (153,153) (230,604) - (5,289,084)
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 806,049 203,468 - (4,183,923)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 2,853,544 2,650,076 - 4,183,923
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 3,659,593 2,853,544 - -
============ ============= ============= =============
</TABLE>
34
<PAGE> 34
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
YEARS ENDED DECEMBER 31, 1998 AND 1997
<TABLE>
<CAPTION>
TRinTStk TemForFd
----------------------------- ----------------------------
1998 1997 1998 1997
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. $ 521,061 429,540 1,717,754 2,501,840
Mortality and expense charges (note 2). (52,439) (170,837) (132,310) (409,635)
Administration charge (note 2):
Tier I ........................ (21,726) (72,216) (77,451) (250,509)
Tier II ....................... (5,357) (16,170) (22,334) (65,577)
Tier III ...................... (1,917) (5,875) (5,316) (15,289)
Tier IV ....................... (951) (3,180) (2,176) (6,430)
Tier V ........................ (4,810) (15,793) (1,211) (2,329)
Variable account fee (notes 2 and 5)... (181,636) - (381,394) -
------------ ------------ ------------ ------------
Net investment activity.............. 252,225 145,469 1,095,562 1,752,071
Proceeds from mutual fund shares sold.. 31,774,044 21,375,609 26,694,944 15,858,573
Cost of mutual fund shares
sold.................................. (30,649,976) (18,182,586) (25,001,333) (14,325,078)
------------ ------------ ------------ ------------
Realized gain (loss) on investments.. 1,124,068 3,193,023 1,693,611 1,533,495
Change in unrealized gain (loss) on investments 2,514,226 (3,881,061) (11,318,099) (5,986,071)
------------ ------------ ------------ ------------
Net gain (loss) on investments....... 3,638,294 (688,038) (9,624,488) (4,452,576)
------------ ------------ ------------ ------------
Reinvested capital gains............... 828,961 1,181,235 5,054,162 6,603,142
------------ ------------ ------------ ------------
Net increase (decrease) in contract owners'
equity resulting from operations. 4,719,480 638,666 (3,474,764) 3,902,637
------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... 9,017,358 10,867,253 16,189,377 22,039,949
Transfers between funds ............... (4,932,049) (6,714,250) (22,661,049) (1,002,242)
Redemptions............................ (2,532,969) (5,866,407) (7,971,478) (10,962,908)
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - (201)
Adjustments to maintain reserves....... 3,925 (6,971) (5,084) 1,523
------------ ------------ ------------ ------------
Net equity transactions............ 1,556,265 (1,720,375) (14,448,234) 10,076,121
NET CHANGE IN CONTRACT OWNERS' EQUITY.... 6,275,745 (1,081,709) (17,922,998) 13,978,758
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 30,214,234 31,295,943 80,718,997 66,740,239
------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... $ 36,489,979 30,214,234 62,795,999 80,718,997
============ ============ ============ ============
<CAPTION>
TemGlSmCo WPEMGRO
----------------------------- -----------------------------
1998 1997 1998 1997
------------- ------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................. - 9,088 - -
Mortality and expense charges (note 2). (201) (4,075) (10) -
Administration charge (note 2):
Tier I ........................ 393 (3,668) (9) -
Tier II ....................... - - - -
Tier III ...................... - - - -
Tier IV ....................... - - - -
Tier V ........................ (191) - - -
Variable account fee (notes 2 and 5)... - - (29) -
------------ ------------- ------------- -------------
Net investment activity.............. 1 1,345 (48) -
Proceeds from mutual fund shares sold.. - 1,438,698 51,701 -
Cost of mutual fund shares
sold.................................. - (1,386,525) (49,825) -
------------ ------------- ------------- -------------
Realized gain (loss) on investments.. - 52,173 1,876 -
Change in unrealized gain (loss) on investments - (7,129) 5,218 -
------------ ------------- ------------- -------------
Net gain (loss) on investments....... - 45,044 7,094 -
------------ ------------- ------------- -------------
Reinvested capital gains............... - 38,267 - -
------------ ------------- ------------- -------------
Net increase (decrease) in contract owners'
equity resulting from operations. 1 84,656 7,046 -
------------ ------------- ------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners...................... - 232,849 5,190 -
Transfers between funds ............... - (115,482) 89,747 -
Redemptions............................ - (1,147,196) (43,768) -
Annual contract maintenance charge (note 2) - - - -
Contingent deferred sales charges (note 2) - - - -
Adjustments to maintain reserves....... (1) (193) 22 -
------------ ------------- ------------- -------------
Net equity transactions............ (1) (1,030,022) 51,191 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.... - (945,366) 58,237 -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD - 945,366 - -
------------ ------------- ------------- -------------
CONTRACT OWNERS' EQUITY END OF PERIOD.... - - 58,237 -
============ ============= ============= =============
</TABLE>
See accompanying notes to financial statements.
35
<PAGE> 35
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 1998 and 1997
(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: Income & Growth Fund (ACIncGro)
American Century: Twentieth Century Growth Fund (ACTCGro)
American Century: Twentieth Century International Discovery Fund
(ACTCIntDis)
American Century: Twentieth Century Select Fund (ACTCSel)
American Century: Twentieth Century Ultra Fund (ACTCUltra)
The Bond Fund of AmericaSM, Inc. (BdFdAm)
(not available for contracts issued on or after 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 Appreciation Fund, Inc. (DryApp)
Dreyfus Cash Management - Class A (DryCsMgt)
Dreyfus Premier Midcap Stock - Class A (DryPreMCap)
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)
Federated Investment Series Funds, Inc. - Federated Bond Fund -
Class F (FedBdFd)
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
Fidelity Advisor Growth Opportunities Fund - Class A (FAGrOppA)
Fidelity Advisors High Yield Fund - Class T (FAHiYld)
Fidelity Asset ManagerTM (FidAsMgr)
36
<PAGE> 36
Fidelity Capital & Income Fund (FidCapInc) (formerly Fidelity High
Income Fund) (not available for contracts issued on or after
January 1, 1987)
Fidelity Contrafund (FidContr) (not available for contracts issued
on or after June 30, 1998)
Fidelity Equity-Income Fund (FidEqInc)
Fidelity Growth & Income Portfolio (FidGrInc)
Fidelity Magellan(R) Fund (FidMgln) (not available for contracts
issued on or after October 1, 1997)
Fidelity OTC Portfolio (FidOTC)
Fidelity Puritan(R) Fund (FidPurtn)
The Growth Fund of America(R), Inc. (GroFdAm)
(not available for contracts issued on or after January 1, 1994)
The Income Fund of America(R), Inc. (IncFdAm)
(not available for contracts issued on or after January 1, 1994)
INVESCO Dynamics Fund, Inc. (InvDynam)
INVESCO Industrial Income Fund, Inc. (InvIndInc)
INVESCO Total Return Fund (InvTotRet)
Janus Fund (JanFund)
Janus Twenty Fund (Jan20Fd)
Janus Worldwide Fund (JanWrldwde)
MAS Funds - Fixed Income Portfolio (MASFIP)
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
MFS(R) High Income Fund - Class A (MFSHiInc)
Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio
- Class B (MSIEqGroB)
Portfolios of the Nationwide Asset Allocation Trust (NAAT)
(managed for a fee by an affiliated investment advisor)
NAAT - The Aggressive Portfolio (NAATAggr)
NAAT - The Conservative Portfolio (NAATCons)
NAAT - The Moderate Portfolio (NAATMod)
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
NAAT - The Moderately Conservative Portfolio (NAATModCon)
Funds of the Nationwide Investing Foundation II
(managed for a fee by an affiliated investment advisor)
Nationwide(R) Bond Fund - Class D (NWBdFd)
Nationwide(R) Fund - Class D (NWFund)
Nationwide(R) Growth Fund - Class D (NWGroFd)
Nationwide(R) Money Market Fund (NWMyMkt)
Nationwide(R) S&P 500 Index Fund - Class Y (NWIndxFdY)
Nationwide(R) SAT - Small Company Fund (NSATSmCo)
(managed for a fee by an affiliated investment advisor)
37
<PAGE> 37
Funds of the Nationwide Investing Foundation III (NIFIII)
(managed for a fee by an affiliated investment advisor)
NIF III - Prestige Balanced Fund - Class Y (PrBalY)
NIF III - Prestige International Fund - Class Y (PrIntY)
NIF III - Prestige Large Cap Growth Fund - Class Y (PrLgCapGrY)
NIF III - Prestige Large Cap Value Fund - Class Y (PrLgCpValY)
NIF III - Prestige Small Cap Fund - Class Y (PrSmCapY)
Neuberger & Berman Equity Funds(R) - Guardian Fund (NBGuard)
Neuberger & Berman Equity Funds(R) - Manhattan Fund (NBManhFd)
Neuberger & Berman Equity Trust(R) - Partners Trust (NBPartTr)
Oppenheimer Global Fund - Class A (OppGlob)
Putnam Investors Fund - Class A (PutInvFd)
Putnam Voyager Fund - Class A (PutVoyFd)
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
Seligman Growth Fund, Inc. - Class A (SelGroFd)
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)
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
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)
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)
38
<PAGE> 38
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, 1998,
except AIM Equity Funds, Inc. AIM Weingarten Fund - Institutional Class
(AIMWein), Fidelity OTCPortfolio (FidOTC), Fidelity Puritan(R) Fund
(FidPurtn), Janus Twenty Fund (Jan20Fd), Nationwide SAT - Capital
Appreciation Fund (NSATCapAp), Strong Common Stock Fund, Inc.
(StComStk) and Templeton Global Smaller Companies Fund, Inc. - Class I
(TemGlSmCo).
The following funds were no longer available as of June 30, 1998:
American Century: Twentieth Century International Growth Fund
(ACTCIntlGr), The Institutional Shares of Federated GNMA Trust
(FedGNMA), Neuberger & Berman Guardian Trust (NBGuardTr) and Neuberger
& Berman Partners Fund (NBPartFd).
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, 1998. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) FEDERAL INCOME TAXES
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the IRC. The assets in this account are held pursuant to
contracts with entities which are exempt from Federal income tax.
Because of this exemption, no taxes need be provided for investment
income or realized and unrealized capital gains. Annuity payouts and
withdrawal payments are taxable as wages when received by the
participants.
(e) USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(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.
39
<PAGE> 39
For contracts issued beginning July 1, 1980 through April 30, 1991,
contract charges include: (a) an annual contract maintenance charge of $12
or $15, based upon administrative services provided, assessed by
surrendering units; and (b) a charge for mortality and expense risk
assessed through the daily unit value calculation equal to an annual rate
of 0.95%.
For contracts issued on or after May 1, 1991, contract charges include a
mortality risk charge, an expense risk charge and an administration charge
assessed through the daily unit value calculation equal to an annual rate
of 0.35%, 0.15% and 0.45% respectively. Beginning November 1, 1996, the
administration charge was based upon the aggregate balance of assets held
under the contract by each contract owner as follows:
<TABLE>
<CAPTION>
Expense Administration
Tier Assets (Millions) Charge
--------- -------------- ------------
<S> <C> <C> <C>
I Up to $10 .45%
II Over $10 to $25 .40%
III Over $25 to $50 .30%
IV Over $50 to $150 .20%
V Over $150 .15%
</TABLE>
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.
For contracts issued beginning May 1, 1998 the Company will assess a charge
for a Variable Account Fee. Under the terms of the contracts, the Company
assumes various risks and incurs administrative expenses associated with
the issuance of the contracts. For the Company's contractual promise to
accept these risks and expenses, the contracts provide for the deduction of
a Account Fee, which is calculated as a percentage of assets and deducted
on each valuation date from amounts held in the Account. On an annual
basis, the maximum Variable Account Fee is 0.95% of the average account
value.
As with all other charges, this fee is subject to negotiation and may vary
from one contract to another reflecting the unique characteristics of
different contracts when considered as a whole. In negotiating the amount
of the fee, the Company may consider factors which may reduce expenses
incurred by the Company. These factors might include, but are not limited
to: (1) the size of the contract; (2) the number of eligible employees; (3)
the number of contract participants; (4) demographics of contract
participants; (5) general economic conditions; (6) the varying costs
associated with the inclusion of underlying mutual fund options; (7) the
type of contract issued (for example, whether the contract is issued as an
allocated contract or unallocated contract); (8) costs associated with
distribution of the contract; (9) any recovery of any credits on initial
transfers; and (10) any other factors which the Company deems relevant.
(See summary of variable account fees at Note 5)
Contract owners may negotiate an exchange privilege with the Company. The
exchange privilege provides for transfers of units among the various
investment options for each participant's account. The number of transfers
allowed, and any administrative charges associated therewith, are subject
to negotiation between the contract owner and the Company.
(3) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
40
<PAGE> 40
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1998.
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- ---------- ---------- ------------
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation
Fund - Institutional Class 0.65% 3,022,273 $ 2.751200$ 8,314,877
American Century:
Income & Growth Fund 0.80% 109,503 1.097595 120,190
0.70% 30,419 1.097739 33,392
0.55% 8,687 1.097955 9,538
0.40% 79,664 1.098171 87,485
0.30% 4,917 1.098315 5,400
American Century:
Twentieth Century Growth Fund 0.95% 9,702,654 7.915964 76,805,860
0.90% 3,294,508 7.924525 26,107,411
0.80% 3,767,251 7.941675 29,918,283
0.65% 8,602,720 7.971577 68,577,245
0.60% 194,830 7.951067 1,549,106
0.40% 3,508 7.923462 27,796
0.30% 261,146 7.952673 2,076,809
American Century: Twentieth Century
International Discovery Fund 0.80% 83,975 1.084264 91,051
0.70% 50,207 1.084406 54,445
0.55% 6,011 1.084619 6,520
0.40% 26,496 1.084832 28,744
American Century:
Twentieth Century Select Fund 0.95% 50,420 2.766712 139,498
0.65% 1,181,418 2.768141 3,270,332
American Century:
Twentieth Century Ultra Fund 0.95% 70,804,264 3.364568 238,225,761
0.90% 19,448,936 3.368207 65,508,042
0.80% 16,603,825 3.375496 56,046,145
0.65% 35,694,678 3.388204 120,940,851
0.60% 1,072,286 3.379488 3,623,778
0.30% 717,400 3.380172 2,424,935
American Century VP -
American Century VP Balanced 0.95% 7,892 1.731354 13,664
American Century VP - American Century VP
Capital Appreciation 0.95% 48,936 1.521919 74,477
The Bond Fund of AmericaSM, Inc. 0.95% 4,103,842 2.429862 9,971,770
0.90% 883,859 2.432540 2,150,022
0.80% 958,940 2.437902 2,337,802
0.65% 1,599,096 2.447231 3,913,357
0.60% 82,948 2.440904 202,468
0.55% 82,138 2.437786 200,235
Davis New York Venture Fund, Inc. - Class A 0.90% 137,969 2.539900 350,427
</TABLE>
(Continued)
41
<PAGE> 41
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class 0.95% 68,865 3.200994 220,436
0.90% 24,175 3.204456 77,468
0.80% 1,554 3.211392 4,991
0.65% 169 3.202651 541
0.60% 6,112 3.215194 19,651
Dreyfus Appreciation Fund, Inc. 0.80% 524,887 1.080133 566,948
0.70% 49,721 1.080275 53,712
0.55% 136,346 1.080487 147,320
0.40% 27,993 1.080700 30,252
0.30% 4,977 1.080842 5,379
Dreyfus Cash Management - Class A 0.90% 192,356 1.268119 243,930
Dreyfus Premier Midcap Stock -
Class A 0.80% 10,469 1.133283 11,864
0.70% 5,430 1.133431 6,155
0.55% 914 1.133654 1,036
Dreyfus S&P 500 Index Fund 0.95% 24,343,259 1.544833 37,606,270
0.90% 6,127,205 1.546121 9,473,400
0.80% 6,707,476 1.548700 10,387,868
0.65% 5,191,876 1.545632 8,024,730
0.60% 1,251,281 1.550532 1,940,151
0.55% 153,801 1.549323 238,287
The Dreyfus Socially Responsible
Growth Fund, Inc. 0.95% 7,611 2.550734 19,414
Dreyfus Stock Index Fund 0.95% 45,862 2.683847 123,087
The Dreyfus Third Century Fund, Inc. 0.95% 42,486 4.554448 193,500
0.90% 31,247 4.559374 142,467
0.80% 5,543,237 4.569241 25,328,385
0.70% 1,526,223 4.579129 6,988,772
0.65% 2,794,245 4.586444 12,815,648
0.55% 1,265,956 4.557584 5,769,701
0.40% 737,042 4.558760 3,359,998
0.35% 276,300 4.581408 1,265,843
0.30% 144,811 4.575570 662,593
Evergreen Income and Growth Fund - Class Y 0.95% 713,985 2.380651 1,699,749
0.90% 234,506 2.383227 558,881
0.80% 173,121 2.388387 413,480
0.65% 431,682 2.397384 1,034,908
0.60% 2,788 2.391215 6,667
0.55% 91,000 2.388169 217,323
Federated Investment Series Fund, Inc. -
Federated Bond Fund - Class F 0.80% 55,483 1.018687 56,520
0.70% 219,340 1.018821 223,468
0.40% 12 1.019222 12
</TABLE>
42
<PAGE> 42
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- --------- ---------- ------------
<S> <C> <C> <C> <C>
Federated U.S. Government Securities Fund:
2-5 Years - Institutional Shares 0.95% 2,986,605 1.300471 3,883,993
0.90% 748,333 1.301894 974,250
0.80% 583,720 1.304742 761,604
0.65% 344,294 1.301463 448,086
0.60% 71,515 1.306298 93,420
0.55% 62,224 1.304613 81,178
Fidelity Advisor Growth Opportunities Fund -
Class A 0.80% 182,532 1.089301 198,832
0.70% 11,123 1.089444 12,118
0.55% 87,134 1.089659 94,946
Fidelity Advisor High Yield Fund - Class T 0.80% 12,701 1.064751 13,523
0.70% 5,110 1.064934 5,442
Fidelity Asset ManagerTM 0.95% 3,453,740 1.744805 6,026,103
0.90% 666,704 1.746693 1,164,527
0.80% 479,562 1.750474 839,461
0.65% 758,282 1.745707 1,323,738
0.60% 53,124 1.752545 93,102
0.55% 28,644 1.750311 50,136
Fidelity Capital & Income Fund 0.95% 86,372 4.829318 417,118
0.90% 26,735 4.834602 129,253
0.80% 62,633 4.845178 303,468
0.65% 85,411 4.863557 415,401
Fidelity Contrafund 0.95% 67,920,295 3.269491 222,064,793
0.90% 15,599,501 3.273028 51,057,604
0.80% 15,008,219 3.280112 49,228,639
0.65% 16,051,389 3.292464 52,848,620
0.60% 979,826 3.283991 3,217,740
0.55% 557,635 3.279805 1,828,934
Fidelity Equity-Income Fund 0.95% 17,905,060 7.691828 137,722,642
0.90% 6,047,814 7.700147 46,569,057
0.80% 4,932,169 7.716814 38,060,631
0.65% 11,315,425 7.745874 87,647,856
0.60% 170,677 7.725951 1,318,642
0.55% 99,286 7.716109 766,102
Fidelity Growth & Income Portfolio 0.95% 1,124 3.280585 3,687
0.65% 6,458,278 3.303630 21,335,761
Fidelity Magellan(R)Fund 0.95% 49,762,526 3.175365 158,014,183
0.90% 12,014,518 3.178799 38,191,738
0.80% 8,905,129 3.185678 28,368,874
0.65% 26,173,266 3.197672 83,693,520
0.60% 683,273 3.189445 2,179,262
0.55% 308,121 3.185381 981,483
Fidelity VIP - Asset Manager Portfolio 0.95% 28,824 1.712317 49,356
Fidelity VIP - Equity-Income Portfolio 0.95% 104,557 2.070586 216,494
Fidelity VIP - Growth Portfolio 0.95% 83,821 2.623533 219,907
</TABLE>
(Continued)
43
<PAGE> 43
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- --------- ---------- ------------
<S> <C> <C> <C> <C>
Fidelity VIP - High Income Portfolio 0.95% 29,066 1.478924 42,986
Fidelity VIP - Overseas Portfolio 0.95% 95,628 1.425217 136,291
The Growth Fund of America(R), Inc. 0.95% 2,635,898 4.415588 11,639,040
0.90% 614,458 4.420363 2,716,127
0.80% 516,513 4.429930 2,288,116
0.65% 397,583 4.417868 1,756,469
0.60% 162,774 4.435169 721,930
0.55% 28,933 4.429517 128,159
The Income Fund of America(R), Inc. 0.95% 4,569,474 2.835318 12,955,912
0.90% 1,108,491 2.838385 3,146,324
0.80% 945,389 2.844529 2,689,186
0.65% 403,926 2.836785 1,145,851
0.60% 153,954 2.847897 438,445
0.55% 49,186 2.844269 139,898
INVESCO Dynamics Fund, Inc. 0.80% 32,721 1.172431 38,363
0.70% 505 1.172584 592
0.55% 14,593 1.172815 17,115
0.40% 818 1.173045 960
INVESCO Industrial Income Fund, Inc 0.95% 7,930,211 2.376817 18,848,660
0.90% 1,694,071 2.379388 4,030,852
0.80% 1,333,146 2.384538 3,178,937
0.65% 660,119 2.378046 1,569,793
0.60% 90,551 2.387360 216,178
0.55% 158,514 2.384319 377,948
INVESCO Total Return Fund 0.80% 53,415 1.023668 54,679
0.70% 72,756 1.023803 74,488
0.55% 2,474 1.024005 2,533
0.40% 44 1.024207 45
Janus Fund 0.95% 28,922,213 2.681244 77,547,510
0.90% 6,455,407 2.684144 17,327,242
0.80% 8,036,789 2.689953 21,618,585
0.65% 4,344,666 2.682628 11,655,123
0.60% 627,794 2.693134 1,690,733
0.30% 597,789 2.693678 1,610,251
Janus Worldwide Fund 0.95% 931,009 1.241260 1,155,624
MAS Funds - Fixed Income Portfolio 0.95% 2,982,430 1.413926 4,216,935
0.90% 320,011 1.415456 452,961
0.80% 552,980 1.418521 784,414
0.65% 283,874 1.414658 401,585
0.60% 118,670 1.420201 168,535
0.55% 15,856 1.418390 22,490
Massachusetts Investors Growth Stock
Fund - Class A 0.95% 164,187 22.143725 3,635,712
0.90% 32,426 22.167667 718,809
0.80% 9,777 22.215628 217,202
0.65% 262,889 22.299259 5,862,230
0.55% 1,109 22.213562 24,635
</TABLE>
44
<PAGE> 44
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- --------- ---------- ------------
<S> <C> <C> <C> <C>
MFS(R)Growth Opportunities Fund - Class A 0.95% 419,655 11.531693 4,839,333
0.90% 286,467 11.544167 3,307,023
0.80% 187,053 11.569155 2,164,045
0.65% 2,162,443 11.612729 25,111,865
0.55% 16,642 11.568078 192,516
0.40% 4,519 11.542612 52,161
MFS(R)High Income Fund - Class A 0.95% 146,644 6.172749 905,197
0.90% 18,550 6.179502 114,630
0.80% 28,739 6.193021 177,981
0.65% 664,163 6.216512 4,128,777
0.55% 2,329 6.192408 14,422
Morgan Stanley Institutional Fund -
Equity Growth Portfolio - Class B 0.80% 71,375 1.106680 78,989
0.70% 5,955 1.106825 6,591
0.55% 7,861 1.107043 8,702
0.30% 3,268 1.107406 3,619
NAAT - The Aggressive Portfolio 0.70% 2,046,802 1.152311 2,358,552
0.60% 310,655 1.154520 358,657
0.45% 211,944 1.150582 243,859
0.25% 68,325 1.150978 78,641
0.20% 11,063 1.155315 12,781
0.15% 14,581 1.155248 16,845
NAAT - The Conservative Portfolio 0.70% 289,939 1.110341 321,931
0.60% 66,069 1.112468 73,500
0.45% 80,765 1.108677 89,542
0.25% 83,356 1.109060 92,447
0.20% 14,242 1.113236 15,855
0.15% 1,089 1.113172 1,212
NAAT - The Moderate Portfolio 0.70% 1,328,203 1.145999 1,522,119
0.60% 106,065 1.148195 121,783
0.45% 80,286 1.144281 91,870
0.25% 21,387 1.144675 24,481
0.20% 43 1.148987 49
0.15% 8,670 1.148920 9,961
NAAT - The Moderately Aggressive Portfolio 0.70% 806,901 1.143522 922,709
0.60% 259,760 1.145713 297,610
0.45% 155,701 1.141807 177,780
0.25% 43,931 1.142200 50,178
0.20% 94,205 1.146503 108,006
0.15% 17,344 1.146437 19,884
NAAT - The Moderately Conservative Portfolio 0.70% 473,517 1.131933 535,990
0.60% 50,620 1.134101 57,408
0.45% 230,674 1.130236 260,716
0.25% 6,709 1.130626 7,585
0.20% 7,860 1.134884 8,920
0.15% 4,278 1.134818 4,855
Nationwide(R)Bond Fund - Class D 0.95% 74,419 2.325952 173,095
0.65% 43,138 2.342442 101,048
</TABLE>
(Continued)
45
<PAGE> 45
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- --------- ---------- ------------
<S> <C> <C> <C> <C>
Nationwide(R)Fund - Class D 0.95% 266,191 26.722904 7,113,397
0.90% 15,513 26.751797 415,001
0.80% 3,035,298 26.809677 81,375,359
0.70% 803,944 26.867683 21,600,113
0.65% 1,339,459 26.910596 36,045,640
0.55% 940,065 26.741341 25,138,599
0.40% 487,464 26.748259 13,038,813
0.35% 104,750 26.881104 2,815,796
0.30% 53,286 26.846869 1,430,562
Nationwide(R)Growth Fund - Class D 0.95% 945,925 4.725203 4,469,688
0.90% 245,637 4.730314 1,161,940
0.80% 308,068 4.740553 1,460,413
0.65% 1,367,643 4.758406 6,507,801
0.60% 1,583 4.746163 7,513
0.55% 31,485 4.740115 149,243
Nationwide(R)Money Market Fund 0.95% 239,031 3.126448 747,318
0.80% 8,324,157 3.136716 26,110,516
0.70% 3,318,283 3.143571 10,431,258
0.65% 4,349,555 3.148614 13,695,070
0.55% 3,511,177 3.136406 11,012,477
0.40% 2,298,866 3.130815 7,197,324
0.35% 175,079 3.142446 550,176
0.30% 294,839 3.138391 925,320
Nationwide(R)S&P 500 Index Fund - Class Y 0.80% 299,188 1.093550 327,177
0.70% 22,552 1.093694 24,665
0.55% 112,981 1.093909 123,591
0.40% 116,258 1.094125 127,201
Nationwide SAT - Government Bond Fund 0.95% 10,280 1.890916 19,439
Nationwide SAT - Money Market Fund 0.95% 55,619 1.369307 76,159
Nationwide SAT - Small Company Fund 0.80% 1,644,689 1.022482 1,681,665
0.70% 877,300 1.023450 897,873
0.55% 528,402 1.007001 532,101
0.40% 384,544 1.007261 387,336
0.35% 18,482 1.024134 18,928
0.30% 19,929 1.025150 20,430
Nationwide SAT - Total Return Fund 0.95% 41,809 3.530330 147,600
Neuberger & Berman AMT - Growth Portfolio 0.95% 13,331 2.625747 35,004
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio 0.95% 9,009 1.235624 11,132
Neuberger & Berman AMT - Partners Portfolio 0.95% 28,300 2.249692 63,666
Neuberger & Berman Equity Funds -
Guardian Fund 0.65% 923,269 1.628931 1,503,941
Neuberger & Berman Equity Funds -
Manhattan Fund 0.95% 71,086 3.628224 257,916
</TABLE>
46
<PAGE> 46
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Neuberger & Berman Equity Trust -
Partners Trust 0.80% 40,394 1.041831 42,084
0.70% 4,567 1.041968 4,759
NIF III - Prestige Balanced Fund - Class Y 0.70% 48,644 1.061002 51,611
0.45% 3,404 1.061351 3,613
NIF III - Prestige International Fund - Class Y 0.70% 16,097 1.092070 17,579
0.45% 1,317 1.092427 1,439
NIF III - Prestige Large Cap Growth Fund - Class Y 0.70% 52,478 1.139564 59,802
0.60% 2,573 1.139713 2,932
0.45% 1,307 1.139937 1,490
NIF III - Prestige Large Cap Value Fund - Class Y 0.70% 7,620 1.049429 7,997
0.45% 2,293 1.049773 2,407
NIF III - Prestige Small Cap Fund - Class Y 0.70% 31,273 1.090386 34,100
0.60% 4,696 1.090529 5,121
0.45% 946 1.090743 1,032
Oppenheimer Global Fund - Class A 0.80% 78,391 1.106449 86,736
0.70% 5,875 1.106594 6,501
0.55% 11,480 1.106811 12,706
0.40% 29,079 1.107029 32,191
0.30% 1,060 1.107174 1,174
Putnam Investors Fund - Class A 0.95% 571,765 24.311753 13,900,609
0.90% 99,114 24.338044 2,412,241
0.80% 75,040 24.390710 1,830,279
0.65% 2,271,192 24.482535 55,604,538
0.60% 4,084 24.419553 99,729
0.55% 10,786 24.388433 263,054
Putnam Voyager Fund - Class A 0.95% 25,813,706 4.715165 121,715,883
0.90% 5,838,788 4.720266 27,560,632
0.80% 5,319,237 4.730485 25,162,571
0.65% 6,536,365 4.748304 31,036,648
0.60% 454,607 4.736081 2,153,056
0.30% 246,793 4.737037 1,169,068
SEI Index Funds - S&P 500 Index Portfolio 0.95% 259,012 4.964488 1,285,862
0.90% 76,739 4.969856 381,382
0.65% 8,122,338 4.999357 40,606,467
Seligman Growth Fund, Inc - Class A. 0.95% 87,555 16.801408 1,471,047
0.90% 3,139 16.819578 52,797
0.80% 16,244 16.855977 273,808
0.65% 108,084 16.919446 1,828,721
0.55% 1,971 16.854407 33,220
T. Rowe Price International Funds, Inc. -
International Stock Fund(R) 0.95% 7,543,129 2.120702 15,996,729
0.90% 1,638,194 2.122997 3,477,881
0.80% 1,798,986 2.127594 3,827,512
0.65% 5,964,541 2.135609 12,737,927
0.60% 126,263 2.130112 268,954
0.55% 85,069 2.127397 180,976
</TABLE>
(Continued)
47
<PAGE> 47
<TABLE>
<CAPTION>
Asset
Charge Units Unit Value Amount
------- --------- ---------- ----------
<S> <C> <C> <C> <C>
Templeton Foreign Fund - Class I........ 0.80% 21,282,916 1.771651 37,705,897
0.70% 4,957,272 1.775488 8,801,577
0.65% 1,352,884 1.778328 2,405,871
0.55% 5,105,892 1.767129 9,022,770
0.40% 2,148,011 1.767586 3,796,794
0.35% 365,896 1.776379 649,970
0.30% 232,860 1.774115 413,120
Warburg Pincus Emerging Growth Fund..... 0.80% 26,076 1.058940 27,613
0.70% 7,510 1.059122 7,954
0.55% 30 1.059395 32
0.40% 21,363 1.059668 22,638
========== ======== ---------------
Total Contract Owners' Equity......... $ 2,871,012,180
=============
</TABLE>
48
<PAGE> 48
(5) VARIABLE ACCOUNT FEES
The following is a summary of the variable account fees for the period May
1, 1998 to December 31, 1998.
<TABLE>
<CAPTION>
Percentage TOTAL AIMCon ACIncGro ACTCGro ACTCIntDis ACTCSel
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ 7,397,939 - - 432,181 - 677
0.90%.................. 1,552,242 - - 114,722 - -
0.80%.................. 1,761,689 - 32 131,500 60 -
0.70%.................. 703,354 - 11 34,413 17 9,993
0.65%.................. 2,195,122 30,654 - 213,832 - 2,631
0.60%.................. 53,652 - - 4,134 - -
0.55%.................. 50,669 - 1 - 2 -
0.45%.................. 483 - - - - -
0.40%.................. 14,043 - 17 - 12 -
0.35%.................. 7,735 - - - - -
0.30%.................. 13,468 - - 2,747 - -
0.25%.................. 77 - - - - -
0.20%.................. 87 - - - - -
0.15%.................. 23 - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 13,750,583 30,654 61 933,529 91 13,301
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage ACTCUltra ACVPBal ACVPCapAp BdFdAm
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ 1,320,410 69 453 58,311
0.90%.................. 286,339 - - 9,993
0.80%.................. 276,726 - - 11,977
0.70%.................. 116,837 - - 1,707
0.65%.................. 330,443 - - 13,820
0.60%.................. 9,136 - - 671
0.55%.................. - - - 520
0.45%.................. - - - -
0.40%.................. - - - -
0.35%.................. - - - -
0.30%.................. 3,397 - - -
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 2,343,288 69 453 96,999
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE DNYVenFd DeDecInc DryApp DryCsMgt DryPreMCap Dry500ix
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ - 1,314 - - - 179,576
0.90%.................. 2,375 469 - 1,506 - 38,105
0.80%.................. - 50 272 - 9 51,283
0.70%.................. - - 21 - 2 21,700
0.65%.................. - - - - - 6,578
0.60%.................. - 57 - - - 4,926
0.55%.................. - - 69 - - 575
0.45%.................. - - - - - -
0.40%.................. - - 1 - - -
0.35%.................. - - - - - -
0.30%.................. - - - - - -
0.25%.................. - - - - - -
0.20%.................. - - - - - -
0.15%.................. - - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 2,375 1,890 363 1,506 11 302,743
============== ============= ============= ============== ============= =============
<CAPTION>
PERCENTAGE DrySRGro DryStkIx Dry3dCen EvincGro
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ 93 592 111,972 11,907
0.90%.................. - - 21,342 3,133
0.80%.................. - - 47,056 2,594
0.70%.................. - - 16,538 243
0.65%.................. - - 48,047 4,276
0.60%.................. - - - 19
0.55%.................. - - 3,941 580
0.45%.................. - - - -
0.40%.................. - - 1,626 -
0.35%.................. - - 1,929 -
0.30%.................. - - 888 -
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 93 592 253,339 22,752
============= ============= ============= =============
</TABLE>
(Continued)
49
<PAGE> 49
<TABLE>
<CAPTION>
Percentage FedBdFd FedUSGvt FAGrOppA FAHiYld FidAsMgr FidCapinc
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ - 17,408 - - 33,264 2,833
0.90%.................. - 4,641 - - 6,092 785
0.80%.................. 20 2,879 74 2 4,729 1,739
0.70%.................. 122 1,114 5 - 4,353 357
0.65%.................. - 392 - - 1,096 1,466
0.60%.................. - 412 - - 295 -
0.55%.................. - 214 47 - 125 -
0.45%.................. - - - - - -
0.40%.................. - - - - - -
0.35%.................. - - - - - -
0.30%.................. - - - - - -
0.25%.................. - - - - - -
0.20%.................. - - - - - -
0.15%.................. - - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 142 27,060 126 2 49,954 7,180
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage FidContr FidEqinc FidGrinc FidMgIn
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ 1,215,102 856,817 6 874,985
0.90%.................. 221,520 239,879 - 168,196
0.80%.................. 227,243 212,892 - 135,532
0.70%.................. 96,924 97,436 - 63,336
0.65%.................. 97,319 279,471 78,970 245,645
0.60%.................. 8,114 3,696 - 5,539
0.55%.................. 4,367 2,399 - 2,346
0.45%.................. - - - -
0.40%.................. - - - -
0.35%.................. - - - -
0.30%.................. - - - -
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 1,870,589 1,692,590 78,976 1,495,579
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Percentage FidViPAM FidVIPEi FidVIPGr FidVIPHi FidVIPOv GroFdAM
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ 280 1,254 1,128 310 946 63,953
0.90%.................. - - - - - 11,386
0.80%.................. - - - - - 11,665
0.70%.................. - - - - - 5,185
0.65%.................. - - - - - 1,401
0.60%.................. - - - - - 1,848
0.55%.................. - - - - - 322
0.45%.................. - - - - - -
0.40%.................. - - - - - -
0.35%.................. - - - - - -
0.30%.................. - - - - - -
0.25%.................. - - - - - -
0.20%.................. - - - - - -
0.15%.................. - - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 280 1,254 1,128 310 946 95,760
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage IncFdAm InvDynam InvIndInc InvTotRet
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ 81,679 - 113,019 -
0.90%.................. 14,390 - 20,467 -
0.80%.................. 15,273 7 16,842 11
0.70%.................. 4,072 - 4,991 36
0.65%.................. 965 - 1,319 -
0.60%.................. 1,269 - 649 -
0.55%.................. 365 2 955 1
0.45%.................. - - - -
0.40%.................. - 1 - -
0.35%.................. - - - -
0.30%.................. - - - -
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 118,013 10 158,242 48
============= ============= ============= =============
</TABLE>
50
<PAGE> 50
<TABLE>
<CAPTION>
Percentage JanFund JanWrldwde MASFIP MFSGrStk MFSGrOpp MFSHiInc
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ 377,229 4,975 17,870 18,036 28,401 4,223
0.90%.................. 68,428 - 1,542 3,589 17,313 557
0.80%.................. 79,708 - 4,126 1,182 10,274 1,002
0.70%.................. 31,973 - 1,381 33 3,685 48
0.65%.................. 8,909 - 343 22,223 95,579 19,837
0.60%.................. 3,836 - 576 - - -
0.55%.................. - - 59 59 463 40
0.45%.................. - - - - - -
0.40%.................. - - - - - -
0.35%.................. - - - - - -
0.30%.................. 1,985 - - - - -
0.25%.................. - - - - - -
0.20%.................. - - - - - -
0.15%.................. - - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 572,068 4,975 25,897 45,122 155,715 25,707
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage MSIEqGroB NAATAggr NAATCons NAATMod
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ - 8,867 833 2,979
0.90%.................. - 1,276 213 342
0.80%.................. 42 739 414 234
0.70%.................. 2 2,119 293 1,382
0.65%.................. - - - -
0.60%.................. - 265 60 92
0.55%.................. 1 - - -
0.45%.................. - 129 53 51
0.40%.................. - - - -
0.35%.................. - - - -
0.30%.................. - - - -
0.25%.................. - 24 29 7
0.20%.................. - 7 5 6
0.15%.................. - 7 - 5
------------- ------------- ------------- -------------
Total variable account fees.... $ 45 13,433 1,900 5,098
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Percentage NAATModAgg NAATModCon NWBdFd NWFund NWGroFd NWMyMkt
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ 3,177 236 431 349,136 27,559 118,861
0.90%.................. 781 995 - 63,997 5,191 34,229
0.80%.................. 732 235 - 161,432 7,591 103,080
0.70%.................. 978 508 - 53,812 6,532 29,650
0.65%.................. - 476 443 134,883 20,835 58,448
0.60%.................. 225 40 - - 21 1,191
0.55%.................. - - - 17,645 395 7,030
0.45%.................. 100 146 - - - -
0.40%.................. - - - 6,628 - 3,457
0.35%.................. - - - 4,393 - 233
0.30%.................. - - - 2,013 - 134
0.25%.................. 15 2 - - - -
0.20%.................. 67 2 - - - -
0.15%.................. 9 2 - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 6,084 2,642 874 793,939 68,124 356,313
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage NWIndxFdY NSATGvtBd NSATMyMkt NSATSmCo
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ - 114 319 5,534
0.90%.................. - - - 2,023
0.80%.................. 167 - - 3,523
0.70%.................. 6 - - 1,623
0.65%.................. - - - -
0.60%.................. - - - 6
0.55%.................. 37 - - 331
0.45%.................. - - - -
0.40%.................. 62 - - 209
0.35%.................. - - - 7
0.30%.................. - - - 20
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 272 114 319 13,276
============= ============= ============= =============
</TABLE>
(Continued)
51
<PAGE> 51
<TABLE>
<CAPTION>
Percentage NSATTotRe NBAMTGro NBAMTLMat NBAMTPart NBGuard NBManhFd
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ 898 179 65 325 - 1,138
0.90%.................. - - - - - -
0.80%.................. - - - - - -
0.70%.................. - - - - - -
0.65%.................. - - - - 6,774 -
0.60%.................. - - - - - -
0.55%.................. - - - - - -
0.45%.................. - - - - - -
0.40%.................. - - - - - -
0.35%.................. - - - - - -
0.30%.................. - - - - - -
0.25%.................. - - - - - -
0.20%.................. - - - - - -
0.15%.................. - - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 898 179 65 325 6,774 1,138
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage NBPartTr PrBalY PrintY PrLGCapGrY
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ - - - -
0.90%.................. - - - -
0.80%.................. 3 - - -
0.70%.................. 1 24 11 30
0.65%.................. - - - -
0.60%.................. - - - 1
0.55%.................. - - - -
0.45%.................. - 1 1 1
0.40%.................. - - - -
0.35%.................. - - - -
0.30%.................. - - - -
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 4 25 12 32
============= ============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
Percentage PrLgCpValY PrSmCapY OppGlob PutInvFd PutVoyFd SEI500Ix
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%.................. $ - - - 71,426 654,777 5,234
0.90%.................. - - - 12,267 116,397 1,874
0.80%.................. - - 22 8,788 122,595 -
0.70%.................. 5 15 - 959 59,040 -
0.65%.................. - - - 203,814 57,277 144,042
0.60%.................. - 2 - 316 5,547 -
0.55%.................. - - 6 631 - -
0.45%.................. 1 - - - - -
0.40%.................. - - 9 - - -
0.35%.................. - - - - - -
0.30%.................. - - - - 1,610 -
0.25%.................. - - - - - -
0.20%.................. - - - - - -
0.15%.................. - - - - - -
-------------- ------------- ------------- -------------- ------------- -------------
Total variable account fees.... $ 6 17 37 298,201 1,017,243 151,150
============== ============= ============= ============== ============= =============
<CAPTION>
Percentage SelGroFd TRIntStk TemForFd WPEmGro
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%.................. $ 8,281 91,497 214,800 -
0.90%.................. 305 18,134 37,449 -
0.80%.................. 1,280 19,355 84,679 19
0.70%.................. 96 6,512 23,222 1
0.65%.................. 7,160 44,998 10,756 -
0.60%.................. - 709 - -
0.55%.................. 81 431 6,629 -
0.45%.................. - - - -
0.40%.................. - - 2,012 9
0.35%.................. - - 1,173 -
0.30%.................. - - 674 -
0.25%.................. - - - -
0.20%.................. - - - -
0.15%.................. - - - -
------------- ------------- ------------- -------------
Total variable account fees.... $ 17,203 181,636 381,394 29
============= ============= ============= =============
</TABLE>
52
<PAGE> 52
- --------------------------------------------------------------------------------
Independent Auditors' Report
----------------------------
TheBoard 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,
1998, 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, 1998, 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, 1998, 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 LLP
Columbus, Ohio
February 5, 1999
- --------------------------------------------------------------------------------
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55
<PAGE> 55
--------------
NATIONWIDE LIFE INSURANCE COMPANY PRSAT STD
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. POSTAGE
PAID
PIQUA, OH
PERMIT NO. 444
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
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