<PAGE> 1
As filed with the Securities and Exchange Commission.
`33 Act Registration No. 2-51911
`40 Act Registration No. 811-2804
================================================================================
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933
Post-Effective Amendment No. 51 [x]
And
REGISTRATION STATEMENT UNDER THE
INVESTMENT COMPANY ACT OF 1940
Amendment No. 52 [x]
NATIONWIDE DC VARIABLE ACCOUNT
(Exact Name of Registrant)
NATIONWIDE LIFE INSURANCE COMPANY
(Name of Depositor)
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code: (614) 249-7111
DENNIS W. CLICK, SECRETARY, ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
(Name and Address of Agent for Service)
This Post-Effective Amendment amends the Registration Statement in respect
of the Prospectus and Statement of Additional Information. It is proposed
that this filing will become effective (check appropriate space):
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[ X ] on May 23, 2000, pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a)(1) of Rule 485
[ ] on (date), pursuant to paragraph (a)(1) of Rule 485
================================================================================
<PAGE> 2
<TABLE>
<CAPTION>
NATIONWIDE DC VARIABLE ACCOUNT
REFERENCE TO ITEMS REQUIRED BY FORM N-4
<S> <C>
N-4 ITEM CAPTION
PART A INFORMATION REQUIRED IN A PROSPECTUS
Item 1. Cover Page.................................................................................Cover Page
Item 2. Definitions.................................................................Glossary of Special Terms
Item 3. Synopsis or Highlights......................................................Synopsis of the Contracts
Item 4. Condensed Financial Information.......................................Condensed Financial Information
Item 5. General Description of Registrant, Depositor, and Portfolio
Companies ..........................Nationwide Life Insurance Company; Investing in the Contract
Item 6. Deductions and Expenses...............................................Standard Charges and Deductions
Item 7. General Description of Variable
Annuity Contracts.......................................Contract Ownership; Operation of the Contract
Item 8. Annuity Period...............................................................Annuitizing the Contract
Item 9. Death Benefit and Distributions........................................................Death Benefits
Item 10. Purchases and Contract Value................................................Operation of the Contract
Item 11. Redemptions....................................................................Surrender (Redemption)
Item 12. Taxes ....................................................................Federal Tax Considerations
Item 13. Legal Proceedings...................................................................Legal Proceedings
Item 14. Table of Contents of the Statement of Additional
Information.........................Table of Contents of the Statement of Additional Information
PART B INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
Item 15. Cover Page.................................................................................Cover Page
Item 16. Table of Contents...................................................................Table of Contents
Item 17. General Information and History.......................................General Information and History
Item 18. Services.....................................................................................Services
Item 19. Purchase of Securities Being Offered.............................Purchase of Securities Being Offered
Item 20. Underwriters.............................................................................Underwriters
Item 21. Calculation of Performance Information.....................................Calculation of Performance
Item 22. Annuity Payments.....................................................................Annuity Payments
Item 23. Financial Statements.............................................................Financial Statements
PART C OTHER INFORMATION
Item 24. Financial Statements and Exhibits.............................................................Item 24
Item 25. Directors and Officers of the Depositor.......................................................Item 25
Item 26. Persons Controlled by or Under Common Control with
the Depositor or Registrant..............................................................Item 26
Item 27. Number of Contract Owners.....................................................................Item 27
Item 28. Indemnification...............................................................................Item 28
Item 29. Principal Underwriter.........................................................................Item 29
Item 30. Location of Accounts and Records..............................................................Item 30
Item 31. Management Services...........................................................................Item 31
Item 32. Undertakings..................................................................................Item 32
</TABLE>
<PAGE> 3
SUPPLEMENT DATED MAY 23, 2000 TO
PROSPECTUS DATED MAY 1, 2000 FOR
GROUP FLEXIBLE FUND RETIREMENT CONTRACTS
ISSUED BY
NATIONWIDE LIFE INSURANCE COMPANY
THROUGH ITS
NATIONWIDE DC VARIABLE ACCOUNT
This supplement updates certain information contained in your prospectus. Please
read it and keep it with your prospectus for future reference.
1. PAGES 1 AND 2 OF THE PROSPECTUS ARE AMENDED AS FOLLOWS:
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE FOR NEW PLANS
ESTABLISHED ON OR AFTER MAY 9, 2000:
Janus Worldwide Fund
2. THE LAST PARAGRAPH ON PAGE 17 OF THE PROSPECTUS IS AMENDED TO INCLUDE THE
FOLLOWING INFORMATION:
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another
underlying mutual fund for shares already purchased or to be purchased in
the future if either of the following occurs:
1) shares of a current underlying mutual fund are no longer available for
investment; or
2) further investment in an underlying mutual fund is inappropriate.
<PAGE> 4
NATIONWIDE LIFE INSURANCE COMPANY
Group Flexible Fund Retirement Contract
Issued by Nationwide Life Insurance Company through its Nationwide DC Variable
Account
The date of this prospectus is May 1, 2000.
- --------------------------------------------------------------------------------
Variable annuities are complex investment products with unique benefits and
advantages that may be particularly useful to many investors in meeting
long-term savings and retirement needs. There are, however, costs and charges
associated with some of these unique benefits - costs and charges that do not
exist or are not present with other investment products. With help from
financial consultants or advisers, investors are encouraged to compare and
contrast the costs and benefits of the variable annuity described in this
prospectus with those of other investment products, including other variable
annuity or variable life insurance products offered by Nationwide Life Insurance
Company and its affiliates. This process will aid in determining whether the
purchase of the contract described in this prospectus is consistent with an
individual's goals, risk tolerance, time horizon, marital status, tax situation,
and other personal characteristics and needs.
THIS PROSPECTUS CONTAINS BASIC INFORMATION YOU SHOULD KNOW ABOUT THE CONTRACTS
BEFORE INVESTING. PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE
REFERENCE.
- --------------------------------------------------------------------------------
o AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class
o American Century: Income & Growth - Investor Class
o American Century: Growth - Investor Class
o American Century: Select - Investor Class
o American Century: Ultra - Investor Class
o American Century: Value - Investor Class
o The Brown Capital Management-Small Company Fund
o Davis New York Venture Fund - Class A
o Dreyfus Appreciation Fund, Inc.
o Dreyfus Cash Management Fund - Class A
o Dreyfus Premier Midcap Stock Fund - Class A
o Dreyfus S&P 500 Index Fund
o The Dreyfus Premier Third Century Fund, Inc. - Class Z
o Evergreen Income and Growth Fund - Class Y
o Federated Bond Fund - Class F
o Federated U.S. Government Securities Fund: 2-5 Years: Institutional
Shares
o Fidelity Advisor Growth Opportunities Fund - Class A
o Fidelity Advisor High Yield Fund - Class T
o Fidelity Asset Manager(TM)
o Fidelity Equity-Income Fund
o Fidelity Growth & Income Portfolio
o INVESCO Dynamics Fund
o INVESCO Equity Income Fund (formerly, INVESCO Industrial Income Fund)
o INVESCO Total Return Fund
o Janus Fund
o Janus Worldwide Fund
o Massachusetts Investors Growth Stock Fund - Class A
o MAS Funds Fixed Income Portfolio
o MFS(R) Growth Opportunities Fund - Class A
o MFS(R) High Income Fund - Class A
o Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio -
Class B
o Nationwide(R) Bond Fund - Class D
o Nationwide(R) Fund - Class D
o Nationwide(R) Growth Fund - Class D
o Nationwide(R) Money Market Fund - Prime Shares
o Nationwide S&P 500(R) Index Fund - Institutional Service Class
(formerly, Class Y)
o LifeDesigns Series
- The Aggressive Portfolio
- The Moderately Aggressive Portfolio
- The Moderate Portfolio
- The Moderately Conservative Portfolio
- The Conservative Portfolio
o Nationwide Separate Account Trust - Nationwide(R) Income Fund
1
<PAGE> 5
o Nationwide Separate Account Trust - Nationwide Small Company Fund
o Neuberger Berman Guardian Fund, Inc.
o Neuberger Berman Manhattan Fund, Inc.
o Neuberger Berman Partners Trust
o Oppenheimer Global Fund - Class A
o Prestige Balanced Fund - Institutional Service Class (formerly, Class
Y)
o Prestige International Fund - Institutional Service Class (formerly,
Class Y)
o Prestige Large Cap Growth Fund - Institutional Service Class (formerly,
Class Y)
o Prestige Large Cap Value Fund - Institutional Service Class (formerly,
Class Y)
o Prestige Small Cap Fund - Institutional Service Class (formerly, Class
Y)
o Putnam International Growth Fund - Class A
o Putnam Investors Fund - Class A
o Putnam Voyager Fund - Class A
o SEI Index Funds - S&P 500 Index Portfolio
o Seligman Growth Fund, Inc. - Class A
o Templeton Foreign Fund - Class A
o T. Rowe Price International Stock Fund(R)
NOT AVAILABLE FOR NEW PLANS ESTABLISHED ON OR AFTER JUNE 30, 1998:
o Fidelity Contrafund(R)
NOT AVAILABLE FOR NEW CONTRACTS ESTABLISHED ON OR AFTER OCTOBER 30, 1997:
o Fidelity Magellan(R) Fund
NOT AVAILABLE FOR NEW CONTRACTS ESTABLISHED ON OR AFTER JANUARY 1, 1994:
o The Bond Fund of America(SM), Inc.
o The Income Fund of America(R), Inc.
o The Growth Fund of America(R), Inc.
NOT AVAILABLE FOR NEW CONTRACRTS ESTABLISHED ON OR AFTER AUGUST 1, 1993:
o Delaware Group Decatur Fund, Inc. - Decatur Income Fund - Institutional
Class
NOT AVAILABLE FOR NEW CONTRACTS ESTABLISHED ON OR AFTER JANUARY 1, 1987:
o Fidelity Capital & Income Fund
NOT AVAILABLE FOR CONTRACTS ESTABLISHED ON OR AFTER MAY 1, 2000:
o American Century: International Discovery - Investor Class
o Warburg Pincus Emerging Growth Fund - Common Class
The Statement of Additional Information (dated May 1, 2000) which contains
additional information about the contracts and the Nationwide DC Variable
Account, has been filed with the U.S. Securities and Exchange Commission ("SEC")
and is incorporated herein by reference. The table of contents for the Statement
of Additional information is on page 36.
For general information or to obtain FREE copies of the:
o Statement of Additional Information;
o prospectus, annual report or semi-annual report for any underlying
mutual fund; and
o required Nationwide forms,
call: 1-800-545-4730
TDD 1-800-238-3035
or write:
NATIONWIDE LIFE INSURANCE COMPANY
P.O. BOX 16766
COLUMBUS, OHIO 43216
The Statement of Additional Information and other material incorporated by
reference can be found on the SEC website at:
www.sec.gov
THIS ANNUITY IS NOT:
o A BANK DEPOSIT o FEDERALLY INSURED
o ENDORSED BY A BANK OR o AVAILABLE IN
GOVERNMENT AGENCY EVERY STATE
Investors assume certain risks when investing in the contracts, including the
possibility of losing money.
The contracts described in this prospectus are marketed primarily to public
sector sponsors of non-qualified deferred compensation plans which qualify for
tax treatment under Section 457 of the Internal Revenue Code. Many such
2
<PAGE> 6
public sector plan sponsors are members of national civic associations which
provide assistance to member entities in establishing non-qualified deferred
compensation plans and determining the investment options available under such
plans. Acting on the recommendation of these associations, many plan sponsors
have determined that their plans will permit investment in some, but not all, of
the underlying mutual fund options of the variable account. In such cases, the
offering prospectus for the variable account will reflect only those funds which
the contract owner/plan sponsor has determined to be available under the plan.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS THE
SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THE PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
3
<PAGE> 7
GLOSSARY OF SPECIAL TERMS
ACCUMULATION UNIT- An accounting unit of measure used to calculate the contract
value allocated to the variable account before the annuitization date.
ALLOCATED CONTRACT- Contract under which Nationwide maintains individual
accounts on behalf of each participant.
ANNUITIZATION DATE- The date on which annuity payments begin.
ANNUITY COMMENCEMENT DATE- The date on which annuity payments are scheduled to
begin. This date may be changed by the contract owner with Nationwide's consent.
ANNUITY UNIT- An accounting unit of measure used to calculate the variable
payment annuity payments.
CONTRACT VALUE- The total value of all accumulation units in a contract.
CONTRACT YEAR- Each year the contract is in force beginning with the date the
contract is issued.
GENERAL ACCOUNT- All assets of Nationwide other than those of the variable
account or in other separate accounts that have been or may be established by
Nationwide.
GROUP FIXED CONTRACT- Nationwide's Group Fixed Fund Retirement contract or Group
Fixed Tax Deferred Annuity contract.
INITIAL TRANSFER- The initial amount transferred by a contract owner from an
investment product offered by a provider other than Nationwide. The initial
transfer is the initial purchase payment under a contract.
NATIONWIDE- Nationwide Life Insurance Company.
PARTICIPANT ACCOUNT- An account established by Nationwide for each participant.
All financial transactions affecting a participant under the contract, other
than the purchase and payment of an annuity from the general account of
Nationwide, are recorded in the participant's account.
PARTICIPANT ACCOUNT YEAR- For each participant, the participant account year is
each one-year period starting with either the date accumulation units were first
credited to the participant's account, or an anniversary of that date.
PARTICIPANT EFFECTIVE DATE- The first date accumulation units are credited to
the participant's account on behalf of the participant under the contract.
RETIRED PARTICIPANT- A participant who is receiving payments according to the
selected optional retirement income form.
SUB-ACCOUNTS- Divisions of the variable account for which accumulation units and
annuity units are separately maintained - each sub-account corresponds to a
single underlying mutual fund.
VALUATION PERIOD- Each day the New York Stock Exchange is open for business.
VARIABLE ACCOUNT- Nationwide DC Variable Account, a separate account of
Nationwide that contains variable account allocations. The variable account is
divided into sub-accounts, each of which invests in shares of a separate
underlying mutual fund.
4
<PAGE> 8
TABLE OF CONTENTS
GLOSSARY OF SPECIAL TERMS.........................4
SUMMARY OF CONTRACT EXPENSES......................6
UNDERLYING MUTUAL FUND ANNUAL EXPENSES............7
EXAMPLE..........................................11
CONDENSED FINANCIAL INFORMATION..................15
FINANCIAL STATEMENTS.............................15
SYNOPSIS OF THE CONTRACTS........................15
NATIONWIDE LIFE INSURANCE COMPANY................16
NATIONWIDE INVESTMENT SERVICES CORPORATION.......16
INVESTING IN THE CONTRACT........................17
The Variable Account and Underlying Mutual
Funds
ACCOUNT CHARGES AND DEDUCTIONS...................18
Contingent Deferred Sales Charge
Participant Account Maintenance Charge
Variable Account Annual Expense Fee
Premium Taxes
CONTRACT RIGHTS..................................20
OPERATION OF THE CONTRACT........................20
Minimum Purchase Payments
Application of Purchase Payments
Allocation of Purchase Payments
Determining Variable Account Value - Valuing
an Accumulation Unit
Determining Participant Account Value
Exchange Privilege
Transfer Requests
Experience Credits
MODIFICATION OF THE CONTRACT.....................23
CONTRACT SUSPENSION AND TERMINATION..............23
REDEMPTION OF PARTICIPANT ACCOUNTS...............23
RETIREMENT PERIOD................................24
Additional Purchase Payment Before Beginning
Retirement Income Payments
Retirement Income Payments
Election of Retirement Income Form and Date
Retirement Income Forms
Determination of Life Income Payments
Assumed Investment Rate
Value of an Annuity Unit
DEATH OF PARTICIPANT.............................27
Participant Death Before Retirement
Death of Retired Participant
FEDERAL TAX CONSIDERATIONS.......................27
Contracts Issued under the New York Model
Plan
STATEMENTS AND REPORTS...........................28
LEGAL PROCEEDINGS................................28
ADVERTISING AND SUB-ACCOUNT
PERFORMANCE SUMMARY.........................29
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL
INFORMATION.................................36
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL
FUNDS.......................................37
APPENDIX B: CONDENSED FINANCIAL INFORMATION......48
5
<PAGE> 9
SUMMARY OF CONTRACT EXPENSES
All charges are subject to negotiation therefore the expenses described below
may vary from contract to contract. Please refer to the appropriate prospectus
provision for more details.
PARTICIPANT TRANSACTION EXPENSES
Maximum Contingent Deferred Sales Charge
(as a percentage of purchase payments) ...............5%
MAXIMUM PARTICIPANT ACCOUNT MAINTENANCE CHARGE .....$50
MAXIMUM VARIABLE ACCOUNT ANNUAL EXPENSE FEE(1) (as a percentage of daily net
assets of the variable account) ...................0.95% per annum
(1) The maximum Variable Account Annual Expense Fee does not include:
o premium taxes that may be imposed by the state in which the contract was
issued; or
o deductions for management fees and other expenses made by the underlying
mutual funds.
6
<PAGE> 10
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
<TABLE>
<CAPTION>
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND NET ASSETS AFTER EXPENSE REIMBURSEMENT)
Management Other 12b-1 Total Mutual Fund
Fees Expenses Fees Expenses
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation 0.63% 0.01% 0.00% 0.64%
Fund - Institutional Class
American Century: Growth - Investor Class 1.00% 0.00% 0.00% 1.00%
American Century: Income & Growth - Investor 0.68% 0.00% 0.00% 0.68%
Class
American Century: International Discovery - 1.59% 0.00% 0.00% 1.59%
Investor Class
American Century: Select - Investor Class 1.00% 0.00% 0.00% 1.00%
American Century: Ultra - Investor Class 1.00% 0.00% 0.00% 1.00%
American Century: Value - Investor Class 1.00% 0.00% 0.00% 1.00%
The Bond Fund of America(SM), Inc. 0.32% 0.12% 0.25% 0.69%
The Brown Capital Management - Small Company 0.65% 0.85% 0.00% 1.50%
Fund
Davis New York Venture Fund - Class A 0.53% 0.15% 0.22% 0.90%
Delaware Group Decatur Fund, Inc. - Decatur 0.59% 0.26% 0.00% 0.85%
Income Fund - Institutional Class
Dreyfus Appreciation Fund, Inc. 0.28% 0.36% 0.25% 0.89%
Dreyfus Premier Midcap Stock Fund - Class A 1.10% 0.00% 0.25% 1.35%
Dreyfus Cash Management Fund - Class A 0.20% 0.00% 0.00% 0.20%
Dreyfus S&P 500 Index Fund 0.25% 0.00% 0.25% 0.50%
The Dreyfus Premier Third Century Fund, Inc. 0.75% 0.10% 0.11% 0.96%
- Class Z
Evergreen Income and Growth Fund - Class Y 0.99% 0.22% 0.00% 1.21%
Federated Bond Fund - Class F 0.64% 0.45% 0.00% 1.09%
Federated U.S. Government Securities Fund: 0.40% 0.15% 0.00% 0.55%
2-5 Years - Institutional Shares
Fidelity Advisor Growth Opportunities Fund - 0.43% 0.24% 0.25% 0.92%
Class A
Fidelity Advisor High Yield Fund - Class T 0.58% 0.21% 0.25% 1.04%
Fidelity Asset Manager(TM) 0.53% 0.22% 0.00% 0.75%
Fidelity Capital & Income Fund 0.58% 0.24% 0.00% 0.82%
Fidelity Contrafund(R) 0.45% 0.20% 0.00% 0.65%
Fidelity Equity-Income Fund 0.47% 0.20% 0.00% 0.67%
Fidelity Growth & Income Portfolio 0.49% 0.19% 0.00% 0.68%
Fidelity Magellan(R)Fund 0.43% 0.19% 0.00% 0.62%
The Growth Fund of America(R), Inc. 0.34% 0.11% 0.25% 0.70%
The Income Fund of America(R), Inc. 0.28% 0.07% 0.24% 0.59%
INVESCO Dynamics Fund 0.52% 0.27% 0.25% 1.04%
</TABLE>
7
<PAGE> 11
UNDERLYING MUTUAL FUND ANNUAL EXPENSES (CONTINUED)
<TABLE>
<CAPTION>
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
<S> <C> <C> <C> <C>
INVESCO Equity Income Fund (formerly, INVESCO 0.48% 0.21% 0.25% 0.94%
Industrial Income Fund)
INVESCO Total Return Fund 0.56% 0.23% 0.25% 1.04%
Janus Fund 0.65% 0.20% 0.00% 0.85%
Janus Worldwide Fund 0.65% 0.24% 0.00% 0.89%
LifeDesigns Series - The Aggressive Portfolio 0.50% 0.00% 0.00% 0.50%
LifeDesigns Series - The Conservative Portfolio 0.50% 0.00% 0.00% 0.50%
LifeDesigns Series - The Moderate Portfolio 0.50% 0.00% 0.00% 0.50%
LifeDesigns Series - The Moderately Aggressive 0.50% 0.00% 0.00% 0.50%
Portfolio
LifeDesigns Series - The Moderately 0.50% 0.00% 0.00% 0.50%
Conservative Portfolio
MAS Funds Fixed Income Portfolio 0.38% 0.11% 0.00% 0.49%
Massachusetts Investors Growth Stock Fund - 0.33% 0.00% 0.35% 0.68%
Class A
MFS(R) Growth Opportunities Fund - Class A 0.42% 0.00% 0.19% 0.61%
MFS(R) High Income Fund - Class A 0.44% 0.00% 0.30% 0.74%
Morgan Stanley Institutional Fund, Inc. - 0.60% 0.20% 0.25% 1.05%
Equity Growth Portfolio - Class B
Nationwide(R) Bond Fund - Class D 0.50% 0.33% 0.00% 0.83%
Nationwide(R) Fund - Class D 0.56% 0.17% 0.00% 0.73%
Nationwide(R) Growth Fund - Class D 0.58% 0.22% 0.00% 0.80%
Nationwide(R) Money Market Fund - Prime Shares 0.40% 0.21% 0.00% 0.61%
Nationwide S&P 500(R) Index Fund - Institutional 0.13% 0.35% 0.00% 0.48%
Service Class (formerly, Class Y)
Nationwide Separate Account Trust - Nationwide 0.45% 0.30% 0.00% 0.75%
Income Fund
Nationwide Separate Account Trust - Nationwide 0.98% 0.17% 0.00% 1.15%
Small Company Fund
Neuberger Berman Guardian Fund, Inc. 0.70% 0.12% 0.00% 0.82%
Neuberger Berman Manhattan Fund, Inc. 0.79% 0.21% 0.00% 1.00%
Neuberger Berman Partners Trust 0.85% 0.06% 0.00% 0.91%
Oppenheimer Global Fund - Class A 0.69% 0.26% 0.21% 1.16%
Prestige Balanced Fund - Institutional Service 0.75% 0.20% 0.00% 0.95%
Class (formerly, Class Y)
</TABLE>
8
<PAGE> 12
UNDERLYING MUTUAL FUND ANNUAL EXPENSES (CONTINUED)
<TABLE>
<CAPTION>
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
<S> <C> <C> <C> <C>
Prestige International Fund - Institutional 0.85% 0.40% 0.00% 1.25%
Service Class (formerly, Class Y)
Prestige Large Cap Growth Fund - Institutional 0.80% 0.25% 0.00% 1.05%
Service Class (formerly, Class Y)
Prestige Large Cap Value Fund - Institutional 0.75% 0.25% 0.00% 1.00%
Service Class (formerly, Class Y)
Prestige Small Cap Fund - Institutional Service 0.95% 0.25% 0.00% 1.20%
Class (formerly, Class Y)
Putnam International Growth Fund - Class A 0.64% 0.38% 0.25% 1.27%
Putnam Investors Fund - Class A 0.47% 0.17% 0.25% 0.89%
Putnam Voyager Fund - Class A 0.47% 0.18% 0.25% 0.90%
SEI Index Funds -S&P 500 Index Portfolio 0.00% 0.00% 0.40% 0.40%
Seligman Growth Fund, Inc. - Class A 0.70% 0.22% 0.24% 1.16%
T. Rowe Price International Stock Fund(R) 0.67% 0.15% 0.00% 0.82%
Templeton Foreign Fund - Class A 0.61% 0.27% 0.25% 1.13%
Warburg Pincus Emerging Growth Fund - Common 0.90% 0.33% 0.00% 1.23%
Class
</TABLE>
The expenses shown above are deducted by the underlying mutual fund before it
provides Nationwide with the daily net asset value. Nationwide then deducts
applicable variable account charges from the net asset value in calculating the
unit value of the corresponding sub-account. The management fees and other
expenses are more fully described in the prospectus for each underlying mutual
fund. Information relating to the underlying mutual funds was provided by the
underlying mutual funds and not independently verified by Nationwide.
9
<PAGE> 13
Some underlying mutual funds are subject to fee waivers and expense
reimbursements. The following chart shows what the expenses would have been for
such funds without fee waivers and expense reimbursements.
<TABLE>
<CAPTION>
Management Other 12b-1 Total Mutual
Fees Expenses Fees Fund Expenses
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation 0.63% 0.03% 0.00% 0.66%
Fund, Inc. - Institutional Class
The Bond Fund of America(SM), Inc. 0.32% 0.12% 0.30% 0.74%
The Brown Capital Management - Small Company 1.00% 0.85% 0.00% 1.85%
Fund
Federated Bond Fund - Class F 0.75% 0.47% 0.00% 1.22%
Federated U.S. Government Securities Fund: 2-5 0.40% 0.39% 0.00% 0.79%
Years - Institutional Shares
Nationwide S&P 500(R) Index Fund - Institutional 0.45% 0.44% 0.00% 0.89%
Service Class
Nationwide Separate Account Trust - Nationwide 0.13% 0.54% 0.00% 0.67%
Income Fund
Prestige Balanced Fund - Institutional Service 0.75% 2.56% 0.00% 3.31%
Class (formerly, Class Y)
Prestige International Fund - Institutional 0.85% 5.45% 0.00% 6.30%
Service Class (formerly, Class Y)
Prestige Large Cap Growth Fund - Institutional 0.80% 2.66% 0.00% 3.46%
Service Class (formerly, Class Y)
Prestige Large Cap Value Fund - Institutional 0.75% 3.46% 0.00% 4.21%
Service Class (formerly, Class Y)
Prestige Small Cap Fund - Institutional 0.95% 3.92% 0.00% 4.87%
Service Class (formerly, Class Y)
SEI Index Funds - SEP 500 Index Portfolio 0.30% 0.41% 0.00% 0.44%
</TABLE>
10
<PAGE> 14
EXAMPLE
The following chart shows the expenses (in dollars) that would be incurred under
the contracts assuming a $1,000 investment, 5% annual return, and no change in
expenses. These dollar figures are illustrative only and should not be
considered a representation of past or future expenses. Actual expenses may be
greater or less than those shown below.
The example reflects expenses of both the variable account and the underlying
mutual funds. The example reflects the CDSC at 5% of total purchase payments and
the maximum Variable Account Annual Expense Fee of 0.95%. The example reflects
the Participant Account Maintenance Charge, expressed as a percentage of average
account value. Since the average contract value is greater than $1,000, the
expense effect of the Contract Maintenance Charge is reduced accordingly.
Deductions for premium taxes are not reflected but may apply.
For those Contracts that have a different CDSC schedule, a lower Variable
Account Annual Expense Fee and/or a lower or no Participant Account Charge, the
actual expenses are reduced.
<TABLE>
<CAPTION>
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
1 Yr. 3 Yrs 5 Yrs 10 Yrs 1 Yr 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs 10 Yrs
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM 67 102 139 244 17 52 89 194 17 52 89 194
Constellation Fund -
Institutional Class
American Century: 77 132 190 347 27 82 140 297 27 82 140 297
International Discovery -
Investor Class
American Century: Income & 67 103 141 249 17 53 91 199 17 53 91 199
Growth - Investor Class
American Century: Growth - 70 113 159 284 20 63 109 234 20 63 109 234
Investor Class
American Century: Select - 70 113 159 284 20 63 109 234 20 63 109 234
Investor Class
American Century: Ultra - 70 113 159 284 20 63 109 234 20 63 109 234
Investor Class
American Century: Value - 70 113 159 284 20 63 109 234 20 63 109 234
Investor Class
The Bond Fund of America(SM), 67 103 142 250 17 53 92 200 17 53 92 200
Inc.
The Brown Capital Management 76 129 185 337 26 79 135 287 26 79 135 287
- - Small Company Fund
Davis New York Venture Fund - 69 110 153 273 19 60 103 223 19 60 103 223
Class A
Delaware Group Decatur Fund, 69 108 151 268 19 58 101 218 19 58 101 218
Inc. - Decatur Income Fund -
Institutional Class
Dreyfus Appreciation Fund, 69 110 153 272 19 60 103 222 19 60 103 222
Inc.
Dreyfus Premier Midcap Stock 74 124 177 322 24 74 127 272 24 74 127 272
Fund - Class A
Dreyfus Cash Management - 62 88 115 194 12 38 65 144 12 38 65 144
Class A
Dreyfus S&P 500 Index Fund 65 97 132 228 15 47 82 178 15 47 82 178
The Dreyfus Premier Third 70 112 156 280 20 62 106 230 20 62 106 230
Century Fund, Inc. - Class Z
Evergreen Income and Growth 73 120 170 307 23 70 120 257 23 70 120 257
Fund - Class Y
Federated Bond Fund - Class F 71 116 163 294 21 66 113 244 21 66 113 244
</TABLE>
11
<PAGE> 15
EXAMPLE (CONTINUED)
<TABLE>
<CAPTION>
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
1 Yr. 3 Yrs 5 Yrs 10 Yrs 1 Yr 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs 10 Yrs
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Federated U. S. Government 66 99 134 234 16 49 84 184 16 49 84 184
Securities Fund: 2-5 Years -
Institutional Shares
Fidelity Advisor Growth 70 111 154 275 20 61 104 225 20 61 104 225
Opportunities Fund - Class A
Fidelity Advisor High Yield 71 115 161 289 21 65 111 239 21 65 111 239
Fund - Class T
Fidelity Asset Manager(TM) 68 105 145 257 18 55 95 207 18 55 95 207
Fidelity Capital & Income 69 108 149 264 19 58 99 214 19 58 99 214
Fund
Fidelity Contrafund(R) 67 102 140 245 17 52 90 195 17 52 90 195
Fidelity Equity-Income Fund 67 103 141 248 17 53 91 198 17 53 91 198
Fidelity Growth & Income 67 103 141 249 17 53 91 199 17 53 91 199
Portfolio
Fidelity Magellan(R) Fund 66 101 138 242 16 51 88 192 16 51 88 192
The Growth Fund of America(R) 67 104 142 251 17 54 92 201 17 54 92 201
Inc.
The Income Fund of America(R) 66 100 137 239 16 50 87 189 16 50 87 189
INVESCO Dynamics Fund 71 115 161 289 21 65 111 239 21 65 111 239
INVESCO Equity Income Fund 70 111 155 278 20 61 105 228 20 61 105 228
(formerly, INVESCO Industrial
Income Fund)
INVESCO Total Return Fund 71 115 161 289 21 65 111 239 21 65 111 239
Janus Fund 69 108 151 268 19 58 101 218 19 58 101 218
Janus Worldwide Fund 69 110 153 272 19 60 103 222 19 60 103 222
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Aggressive Portfolio
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Conservative Portfolio
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Moderate Portfolio
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Moderately Aggresive Portfolio
LifeDesigns Series - The 65 97 132 228 15 47 82 178 15 47 82 178
Moderately Conservative
Portfolio
MAS Funds Fixed Income 65 97 131 227 15 47 81 177 15 47 81 177
Portfolio
Massachusetts Investors 67 103 141 249 17 53 91 199 17 53 91 199
Growth Stock Fund - Class A
MFS(R) Growth Opportunities 66 101 138 241 16 51 88 191 16 51 88 191
Fund - Class A
MFS(R) High Income Fund - Class 68 105 145 256 18 55 95 206 18 55 95 206
A
Morgan Stanley Institutional 71 115 161 290 21 65 111 240 21 65 111 240
Fund, Inc. - Equity Growth
Portfolio - Class B
</TABLE>
12
<PAGE> 16
EXAMPLE (CONTINUED)
<TABLE>
<CAPTION>
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Nationwide(R) Bond Fund - Class 69 108 149 266 19 58 99 216 19 58 99 216
D
Nationwide(R) Fund - Class D 68 105 144 254 18 55 94 204 18 55 94 204
Nationwide(R) Growth Fund - 68 107 148 262 18 57 98 212 18 57 98 212
Class D
Nationwide(R) Money Market Fund 66 101 138 241 16 51 88 191 16 57 88 191
- - Prime Shares
Nationwide S&P 500(R) Index 65 97 131 226 15 47 81 176 15 47 81 176
Fund - Institutional Service
Class (formerly, Class Y)
Nationwide Separate Account 68 105 145 257 18 55 95 207 18 55 95 207
Trust - Nationwide Income Fund
Nationwide Separate Account 72 118 167 300 22 68 117 250 22 68 117 250
Trust - Nationwide Small
Company Fund
Neuberger Berman Guardian 69 108 149 264 19 58 99 214 19 58 99 214
Fund, Inc.
Neuberger Berman Manhattan 70 113 159 284 20 63 109 234 20 63 109 234
Fund, Inc.
Neuberger Berman Partners 70 110 154 274 20 60 104 224 20 60 104 224
Trust
Oppenheimer Global Fund - 72 118 167 301 22 68 117 251 22 68 117 251
Class A
Prestige Balanced Fund - 70 112 156 279 20 62 106 229 20 62 106 229
Institutional Service Class
(formerly, Class Y)
Prestige International Fund - 73 121 172 311 23 71 122 261 23 71 122 261
Institutional Service Class
(formerly, Class Y)
Prestige Large Cap Growth 71 115 161 290 21 65 111 240 21 65 111 240
Fund - Institutional Service
Class (formerly, Class Y)
Prestige Large Cap Value Fund 70 113 159 284 20 63 109 234 20 63 109 234
- - Institutional Service Class
(formerly, Class Y)
Prestige Small Cap Fund - 73 120 169 306 23 70 119 256 23 70 119 256
Institutional Service Class
(formerly, Class Y)
Putnam International Growth 73 122 173 313 23 72 123 263 23 72 123 263
Fund - Class A
Putnam Investors Fund - Class 69 110 153 272 19 60 103 222 19 60 103 222
A
Putnam Voyager Fund - Class A 69 110 153 273 19 60 103 223 19 60 103 223
</TABLE>
13
<PAGE> 17
EXAMPLE (CONTINUED)
<TABLE>
<CAPTION>
If you surrender your contract If you do not surrender your If you annuitize your contract
at the end of the applicable contract at the end of the at the end of the applicable
time period applicable time period time period
1 Yr. 3 Yrs 5 Yrs 10 Yrs 1 Yr 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs 10 Yrs
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SEI Index Funds - S&P 500 64 94 126 217 14 44 76 167 14 44 76 167
Index Portfolio
Seligman Growth Fund, Inc. - 72 118 167 301 22 68 117 251 22 68 117 251
Class A
T. Rowe Price International 69 108 149 264 19 58 99 214 19 58 99 214
Stock Fund(R)
Templeton Foreign Fund - 72 117 166 298 22 67 116 248 22 67 116 248
Class A
Warburg Pincus Emerging 73 121 171 309 23 71 121 259 23 71 121 259
Growth Fund - Common Class
</TABLE>
14
<PAGE> 18
CONDENSED FINANCIAL INFORMATION
The accumulation unit value for each sub-account reflects changes in the value
of the underlying mutual fund and the deduction of the Variable Account Annual
Expense Fee. For specific accumulation unit value for each class of the
underlying mutual funds, please refer to Appendix B.
FINANCIAL STATEMENTS
Financial Statements for the variable account and Nationwide are located in the
Statement of Additional Information. A current Statement of Additional
Information may be obtained without charge by contacting Nationwide's home
office at the telephone number located on page 2 of this prospectus.
SYNOPSIS OF THE CONTRACTS
Group Flexible Fund Retirement Contracts are designed for use in connection with
supplemental deferred compensation plans for employees of tax exempt entities.
The plans generally will qualify for favorable tax treatment under Sections 401,
403(b), or 457 of the Internal Revenue Code, but may also include other
non-qualified deferred compensation plans. Contracts are issued only to
employers who are exempt from taxation to fund deferred compensation plans.
Employees generally are not subject to federal income tax on amounts deferred
under these plans until distributions are received from the plan.
Plans established for the benefit of any organization that is exempt from
federal income tax under Section 457 of the Internal Revenue Code with the
exception of government plans, remain the sole property of the contract owner,
subject to the claims of the contract owner's general creditors. Consequently,
all amounts deferred to the plan, all income and property attributable to such
amounts remain the property of the contract owner until such amounts are made
available to participants in the plan or to the participants' beneficiaries.
Plans established after August 20, 1996 by a state, or any political subdivision
of a state, must hold the assets and income of the plan in trust for the
exclusive benefit of the participants and beneficiaries of the plan. For this
purpose, custodial accounts and certain annuity contracts are treated as trusts.
Plans in existence on August 20, 1996 must be amended prior to January 1, 1999
to satisfy these trust and exclusive benefit requirements to continue to receive
favorable tax treatment.
For these Plans, Nationwide issues a single group contract to the contract
owner, covering all present and future participating employees. Nationwide
provides a certificate to the contract owner to deliver to each retired
participant or other person for whom a Retirement Income Form is purchased. The
certificate sets forth the benefits to which the recipient is entitled. And if
legally required, Nationwide provides a certificate to the contract owner for
delivery to any other person required by law to receive a certificate.
Nationwide establishes an account for each participant under the contracts. The
account contains values and reflects activity for each participant. Plan
participants generally receive tax deferral on amounts deposited into the plan
and are taxed when amounts are distributed from the plan.
Purchase payments are normally submitted monthly, but the schedule may be
adjusted to fit the contract owner's payroll practices. Purchase payments made
by or on behalf of each participant must be at least $20 per month.
The contracts strive to provide each participant with:
o an initial retirement income payment, reflecting cost of living changes
during pre-retirement years (without requiring increased purchase payments
to keep pace with cost of living increases during those years); and
o subsequent retirement income payments which will vary with the cost of
living changes during his or her retired lifetime.
15
<PAGE> 19
Although the contracts strive to achieve their goals, there can be no assurance
that the contracts will achieve them.
Nationwide will apply purchase rates set forth in the contracts to accumulated
amounts in participant accounts. These accumulated amounts reflect the
investment performance of the underlying mutual funds selected by the
participant. Consequently, a participants' retirement income payments are
directly affected by their investment choices under the contract. Historically,
the value of a diversified portfolio of common stocks held for an extended
period of time has tended to rise during periods of inflation. However, there is
no exact correlation and for some periods, the prices of securities have
declined while the cost of living was rising.
MINIMUM PURCHASE PAYMENTS
Purchase payments made at any time by or on behalf of any participant must be at
least $20 per month.
CHARGES AND EXPENSES
Nationwide does not deduct a sales charge from purchase payments upon deposit
into the contracts. However, Nationwide may deduct a Contingent Deferred Sales
Charge ("CDSC") if any amount is withdrawn from the contract. This CDSC
reimburses Nationwide for sales expenses. The amount of the CDSC will not exceed
5% of purchase payments surrendered.
Nationwide may assess a Participant Account Maintenance Charge. This charge
varies from contract to contract and will not be assessed unless specifically
agreed upon by the contract owner and Nationwide. The maximum Participant
Account Maintenance Charge is $50 per year (see "Participant Account Maintenance
Charge").
Nationwide can deduct a Variable Account Annual Expense Fee at a maximum of
0.95% of the daily average account value. Nationwide can assess this fee in
return for bearing certain risks and administrative expenses. This fee is
negotiable and varies from contract to contract to reflect unique plan
characteristics.
The CDSC, Participant Account Maintenance Charge and Variable Account Annual
Expense Fee, when negotiated, may be decreased upon notice to the contract owner
(see "Modification of the Contract").
RETIREMENT INCOME PAYMENTS
Retirement income payments begin on the annuitization date. Payments are based
on the retirement income form chosen (see "Retirement Income Payments" and
"Retirement Income Forms").
TAXATION
How the contracts are taxed depends on the type of contract issued, and the
purpose for which the contract is issued. Nationwide will charge against the
contract any premium taxes levied by any governmental authority (see "Federal
Tax Considerations" and "Premium Taxes").
NATIONWIDE LIFE INSURANCE COMPANY
Nationwide is a stock life insurance company organized under Ohio law in March,
1929, with its home office at One Nationwide Plaza, Columbus, Ohio 43215.
Nationwide is a provider of life insurance, annuities and retirement products.
It is admitted to do business in all states, the District of Columbia and Puerto
Rico.
NATIONWIDE INVESTMENT SERVICES CORPORATION
The contracts are underwritten and distributed by Nationwide Investment Services
Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio 43215. (For contracts
issued in the State of Michigan, all referencess to NISC shall mean Nationwide
Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of Nationwide.
16
<PAGE> 20
INVESTING IN THE CONTRACT
THE VARIABLE ACCOUNT AND UNDERLYING MUTUAL FUNDS
The variable account is a separate account that invests in the underlying mutual
funds listed in Appendix A. Nationwide established the variable account on July
10, 1974 pursuant to Ohio law. Although the variable account is registered with
the SEC as a unit investment trust pursuant to the Investment Company Act of
1940 ("1940 Act"), the SEC does not supervise it or the management of
Nationwide.
Income, gains, and losses credited to, or charged against, the variable account
reflect the variable account's own investment experience and not the investment
experience of Nationwide's other assets. The variable account's assets are held
separately from Nationwide's assets and are not chargeable with liabilities
incurred in any other business of Nationwide. Nationwide is obligated to pay all
amounts promised to contract owners under the contracts.
The variable account is divided into sub-accounts, each corresponding to a
single underlying mutual fund. Nationwide uses the assets of each sub-account to
buy shares of the underlying mutual funds based on contract owner instructions.
Each underlying mutual fund's prospectus contains more detailed information
about that fund. Prospectuses for the underlying mutual funds should be read in
conjunction with this prospectus.
Voting Rights
Contract owners who have allocated assets to the underlying mutual funds are
entitled to certain voting rights. Nationwide will vote contract owner shares at
special shareholder meetings based on contract owner instructions. However, if
the law changes and Nationwide is allowed to vote in its own right, it may elect
to do so.
Contract owners with voting interests in an underlying mutual fund will be
notified of issues requiring the shareholders' vote as soon as possible before
the shareholder meeting. Notification will contain proxy materials and a form
with which to give Nationwide voting instructions. Nationwide will vote shares
for which no instructions are received in the same proportion as those that are
received.
The number of shares which a contract owner may vote is determined by dividing
the cash value of the amount they have allocated to an underlying mutual fund by
the net asset value of that underlying mutual fund. Nationwide will designate a
date for this determination not more than 90 days before the shareholder
meeting.
Material Conflicts
The underlying mutual funds may be offered through separate accounts of other
insurance companies, as well as through other separate accounts of Nationwide.
Nationwide does not anticipate any disadvantages to this. However, it is
possible that a conflict may arise between the interests of the variable account
and one or more of the other separate accounts in which these underlying mutual
funds participate.
Material conflicts may occur due to a change in law affecting the operations of
variable life insurance policies and variable annuity contracts, or differences
in the voting instructions of the contract owners and those of other companies.
If a material conflict occurs, Nationwide will take whatever steps are necessary
to protect contract owners and variable annuity payees, including withdrawal of
the variable account from participation in the underlying mutual fund(s)
involved in the conflict.
Substitution of Securities
Nationwide may substitute, eliminate, or combine shares of another underlying
mutual fund for shares already purchased or to be purchased in the future if
either of the following occurs:
1) shares of a current underlying mutual fund are no longer available for
investment; or
2) further investment in an underlying mutual fund is inappropriate.
17
<PAGE> 21
No substitution, elimination, or combination of shares may take place without
the prior approval of the SEC.
ACCOUNT CHARGES AND DEDUCTIONS
The charges and fees described in this section vary from contract to contract,
depending on plan characteristics and the particular needs and preferences of
contract owners. Generally, the charges and fees are negotiable. This
flexibility allows Nationwide and the contract owner to custom design a charge
structure that meets the financial goals of both the contract owners and
Nationwide.
While a contract is in effect, a circumstance may arise that would require a
re-negotiation of the contract terms. In this situation, charges and fees will
not be higher than those in effect before the re-negotiation. In other words,
the charges and fees of a re-negotiated contract may decrease, but under no
circumstances will they increase.
CONTINGENT DEFERRED SALES CHARGE
No sales charge is deducted from purchase payments when amounts are deposited
into the contracts. However, if any part of the contract is surrendered,
Nationwide will deduct a CDSC when applicable. The CDSC is used to cover sales
expenses, including commissions, production of sales material, and other
promotional expenses. If expenses are greater than the CDSC, Nationwide will
make up any shortfall from its general account.
If part or all of the contract value representing participant accounts that have
been established under the contract and held in the variable account for less
than 16 years is surrendered, a CDSC, when it is applicable, can be assessed by
Nationwide. The CDSC will not exceed 5% of purchase payments surrendered.
The total CDSC assessed to any participant will never exceed 5% (or a lesser
percentage, if applicable) of the total purchase payments made on behalf of the
participant for the 16 years before the surrender date.
When a CDSC of less than 5% is negotiated and assessed, the reduced charge may
reflect actual variations in expenses, usually resulting from reduced expenses
to Nationwide in connection with case acquisition costs, plan start-up expenses,
commissions and marketing expenses. Nationwide will not apply any deductions in
a discriminatory manner.
No CDSC will be assessed against distributions paid as:
o any life income payment option;
o designated period payment option of 5 or more years for a participant who
has a minimum of 5 participant account years before the beginning of
benefit payments; and
o a single-sum or periodic payment resulting from a participant's death.
PARTICIPANT ACCOUNT MAINTENANCE CHARGE
Nationwide may assess a Participant Account Maintenance Charge to reimburse it
for administrative expenses involved in issuing and maintaining the contracts.
The maximum Participant Account Maintenance Charge is $50. Nationwide will not
assess this charge unless it is negotiated and contractually agreed upon by
Nationwide and the contract owner.
Generally, by negotiating a higher Participant Account Maintenance Charge, a
contract owner can expect to lower other charges that are assessed in connection
with the contract. Conversely, a contract owner that negotiates a lower
Participant Account Maintenance Charge can expect to incur higher charges
elsewhere in the expense structure.
If a Participant Account Maintenance Charge is negotiated, it will be assessed
against each applicable participant in the plan. Nationwide will deduct the
charge from each participant's account on the participant anniversary, which is
the anniversary of the date accumulation units were first credited to the
participant's account. Each year's deduction will compensate Nationwide for
expenses incurred during the previous year. The deduction will occur during both
the accumulation and annuity payment periods.
18
<PAGE> 22
The Participant Account Maintenance Charge is made by canceling a number of
accumulation units during both the accumulation and annuity periods, equal in
value to the applicable charge. If a participant account includes more than one
sub-account, the deduction will be allocated among sub-accounts on the basis of
relative values at the time the deduction is made.
On the date that a full withdrawal is taken from a participant's account,
Nationwide will deduct a pro-rated Participant Account Maintenance Charge. The
amount of the charge will be 1/12 of the applicable Participant Account
Maintenance Charge, multiplied by the number of whole or partial months between
the last participant anniversary (or participant effective date during the first
year of a participant account) and the withdrawal date.
The deduction for the Participant Account Maintenance Charge will be taken
proportionately from each sub-account based on relative value at the time the
deduction is made.
This contract may be used by a plan in conjunction with other investment
options, such as Nationwide's Group Fixed Fund Retirement Contract. In this
case, the deduction for the Participant Account Maintenance Charge may be
reduced so that the combined total of the Participant Account Maintenance Charge
and any similar charges imposed under other investment options does not exceed
the Participant Account Maintenance Charge negotiated for this contract. The
charge will be deducted proportionately from the sub-accounts and amounts held
in the other investment options based on the relative values at the time the
deduction is made.
THE PARTICIPANT ACCOUNT MAINTENANCE CHARGE WILL NOT BE ASSESSED UNLESS
NEGOTIATED BETWEEN NATIONWIDE AND THE CONTRACT OWNER.
VARIABLE ACCOUNT ANNUAL EXPENSE FEE
Nationwide can deduct a Variable Account Annual Expense Fee up to an maximum
rate of 0.95% of average account value in exchange for assuming various risks
and administrative expenses associated with the contracts. This fee is subject
to negotiation and can vary for each contract to reflect unique plan
characteristics.
The following factors may be considered in negotiating the amount of this fee:
1) plan size;
2) the number of eligible employees;
3) the number of plan participants;
4) demographics of the plan participants;
5) general economic conditions;
6) the varying costs associated with the underlying mutual funds that are
offered in the contract;
7) the type of contract (e.g. allocated vs. unallocated);
8) distribution costs;
9) any recovery of credits on initial transfers; and
10) other factors Nationwide deems relevant.
PREMIUM TAXES
Nationwide may charge against the contract value any premium taxes levied by a
state or other government entity. Premium tax rates currently range from 0% to
5.0%. This range is subject to change. The method used to assess premium tax
will be determined by Nationwide at its sole discretion in compliance with state
law.
If applicable, Nationwide will deduct premium taxes from the contract either at:
1) the time the contract is surrendered;
2) annuitization; or
19
<PAGE> 23
3) such other date as Nationwide becomes subject to premium taxes.
Premium taxes may be deducted from death benefit proceeds.
CONTRACTS RIGHTS
The contract owner owns the contract for the exclusive benefit of the plan's
participants and beneficiaries. Contractual rights may be exercised by the
contract owner subject to those rights specifically reserved in the plan
documents for participants, either as a group or as individuals. The contract
owner may not take any action inconsistent with the rights of the plan's
participants. The contract may not be assigned except to accommodate a change in
state or federal law.
OPERATION OF THE CONTRACT
MINIMUM PURCHASE PAYMENTS
Purchase payments for each participant must be at least $20 per month. Payments
must be made no less frequently than monthly, unless Nationwide agrees
otherwise.
APPLICATION OF PURCHASE PAYMENTS
Initial purchase payments allocated to sub-accounts will be priced at the
accumulation unit value determined no later than 2 business days after receipt
of an order to purchase if the application and all necessary information are
complete. If the application is not complete, Nationwide may retain a purchase
payment for up to 5 business days while attempting to complete it. If the
application is not completed within 5 business days, the prospective purchaser
will be informed of the reason for the delay. The purchase payment will be
returned unless the prospective purchaser specifically allows Nationwide to hold
the purchase payment until the application is completed.
Subsequent purchase payments will be priced based on the next available
accumulation unit value after the payment is received.
Purchase payments will not be priced when the New York Stock Exchange is closed
or on the following nationally recognized holidays:
o New Year's Day o Independence Day
o Martin Luther King, Jr. o Labor Day Day
o Presidents' Day o Thanksgiving
o Good Friday o Christmas
o Memorial Day
Nationwide also will not price purchase payments if:
1) trading on the New York Stock Exchange is restricted;
2) an emergency exists making disposal or valuation of securities held in the
variable account impracticable; or
3) the SEC, by order, permits a suspension or postponement for the protection
of security holders.
Rules and regulations of the SEC will govern as to when the conditions described
in (2) and (3) exist. If Nationwide is closed on days when the New York Stock
Exchange is open, contract value may be affected since the contract owner and
participant will not have access to their account.
ALLOCATION OF PURCHASE PAYMENTS
Nationwide allocates purchase payments to each participant's account as
instructed by the contract owner. Shares of the underlying mutual funds
allocated to the sub-accounts are purchased at net asset value, then converted
into accumulation units. The contract owner, or the participant if the plan so
permits, may change allocations among sub-accounts for future purchase payments.
However, no change may be made that would result in an amount less than 1% of
the purchase payments being allocated to any sub-account for any participant.
Nationwide will accept these changes as frequently as permitted by the plan. An
allocation change will not affect the allocation of purchase payments before the
change.
20
<PAGE> 24
DETERMINING VARIABLE ACCOUNT VALUE - VALUING AN ACCUMULATION UNIT
Purchase payments or transfers allocated to sub-accounts are accounted for in
accumulation units. Accumulation unit values (for each sub-account) are
determined by calculating the net investment factor for the underlying mutual
funds for the current valuation period and multiplying that result with the
accumulation unit values determined on the previous valuation period.
Nationwide uses the net investment factor as a way to calculate the investment
performance of a sub-account from valuation period to valuation period. For each
sub-account, the net investment factor shows the investment performance of the
underlying mutual fund in which a particular sub-account invests, including the
charges assessed against that sub-account for a valuation period.
The net investment factor for any particular sub-account is determined by
dividing (a) by (b), and then subtracting (c) from the result, where:
a) is:
1) the net asset value of the underlying mutual fund as of the end of the
current valuation period; and
2) the per share amount of any dividend or income distributions made by
the underlying mutual fund (if the ex-dividend date occurs during the
current valuation period);
b) is the net asset value of the underlying mutual fund determined as of the
end of the preceding valuation period; and
c) is a factor representing the daily variable account charges, which may
include charges for contract options chosen by the contract owner. The
factor is equal to an annual rate ranging from 0.00% to 0.95% of the daily
net assets of the variable account, depending on unique plan
characteristics.
Based on the change in the net investment factor, the value of an accumulation
unit may increase or decrease. Changes in the net investment factor may not be
directly proportional to changes in the net asset value of the underlying mutual
fund shares because of the deduction of variable account charges.
Though the number of accumulation units will not change as a result of
investment experience, the value of an accumulation unit may increase or
decrease from valuation period to valuation period.
DETERMINING PARTICIPANT ACCOUNT VALUE
A participant's account value is equal to the sum of the value of all
accumulation units credited to the participant's account. The number of
accumulation units credited to each participant account for each sub-account is
determined by dividing the amount allocated to that sub-account for that
participant by the accumulation unit value for that sub-account for the
valuation period the purchase payment was received.
The value of a participant's account on any day can be determined by multiplying
the total number of accumulation units credited to the participant's account for
each sub-account by the current accumulation unit value for that sub-account.
Each participant and the contract owner will be advised periodically of the
number of accumulation units credited to his or her account for each
sub-account, the current accumulation unit values, and the total value of his or
her account. These reports are for informational purposes only and do not mean
that a participant has any rights in his or her account beyond those provided
for in the plan.
EXCHANGE PRIVILEGE
The contract owner, or the participant if the plan so provides, may exchange
amounts among the sub-accounts as frequently as permitted by the plan, subject
to the limits and rules set by each underlying mutual fund. Certain Plans may
impose limitations of participant exchange privileges as a consequence of
agreements entered
21
<PAGE> 25
into to purchase mutual funds or other investments unrelated to the contract.
Certain plans may select investment options, unrelated to the annuity contract,
that may impose limitations affecting the exchange privilege associated with the
investment options available in the annuity contract.
One such investment option that may be chosen is the Morley Stable Value
Retirement Fund. Although the Morley Stable Value Retirement Fund may be
purchased by plans as an investment option outside the variable annuity contract
described in this prospectus, the Morley Stable Value Retirement Fund may impose
restrictions on amounts that may be directly transferred to options which are
considered "competing investment options."
Competing investment options include the Nationwide Money Market Fund, the
Federated U.S. Government Securities Fund: 2-5 Years: Institutional Shares and
the Nationwide Fixed Account Option. If the Morley Stable Value Retirement Fund
is available in your Plan, amounts withdrawn from the Morley Stable Value
Retirement Fund may not be transferred to a "competing investment option" for a
period of at least 90 days.
The Morely Stable Value Retirement Fund is operated by Morley Capital
Management, Inc. and advised by Union Bond and Trust; both entities are
wholly-owned subsidiaries of Nationwide Financial Services Inc.
There is no charge assessed for any exchanges.
TRANSFER REQUESTS
In addition to submitting exchange requests in writing, the participant also may
make exchanges by telephone and the internet, provided that the contract owner
executes documents agreeing to certain restrictions applicable to these
privileges. Telephone and internet exchange requests must be received by
Nationwide by the close of the New York Stock Exchange in order to receive that
day's closing sub-account price.
Nationwide will use reasonable procedures to confirm that telephone and internet
instructions are genuine and will not be liable for following telephone or
internet instructions that it reasonably determined to be genuine. Nationwide
may withdraw the telephone and/or internet exchange privilege upon 30 days
written notice to contract owners and participants.
If Nationwide receives the transfer request before the end of a valuation date,
the transfer will receive the accumulation unit values of that date. However, if
Nationwide receives the transfer request after the close of business on a
valuation date, the transfer will receive the next valuation date's accumulation
unit value.
For those plans funded by this contract and Nationwide's Group Fixed Fund
Retirement Contract, the contract owner, or the participant if the plan so
provides, may exchange values between any sub-account and the Group Fixed Fund
Retirement Contract. Exchanges from the Nationwide Group Fixed Fund Retirement
Contract to any sub-account will be subject to the limitations of the Nationwide
Group Fixed Fund Retirement Contract. Exchanges will be effective when received
in good order at Nationwide's home office.
EXPERIENCE CREDITS
Depending on the state in which the contract was issued, the contracts are
either participating or non-participating. Contract owners of participating
contracts have the right to receive any surplus distributed by Nationwide. A
surplus distribution will occur if Nationwide's Board of Directors determines
that charges and fees assessed under the contracts were higher than necessary to
maintain the contracts. Nationwide will distribute any surplus by purchasing
additional accumulation units and crediting them to participant accounts. To
date, Nationwide has not made any surplus distributions to participant accounts
and Nationwide does not guarantee that there will be a surplus distribution in
the future. Non-participating contracts do not have the right to receive surplus
distributions.
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<PAGE> 26
MODIFICATION OF THE CONTRACT
The following charges may be decreased, if negotiated, upon notice to the
contract owner:
o Contingent Deferred Sales Charge
o Participant Account Maintenance Charge
o Variable Account Annual Expense Fee
Nationwide may change any other provision of the contract by giving notice to
contract owners not less than 90 days before the change is to be effective.
CONTRACT SUSPENSION AND TERMINATION
Nationwide may suspend the contract at any time upon written notice to contract
owners if:
a) the contract owner fails to remit to Nationwide any purchase payment
specified in the plan; or
b) Nationwide rejects a plan amendment submitted by the contract owner
that Nationwide determines would adversely affect the contract's
financial experience.
The contract owner may suspend the contract at any time upon 90 days written
notice to Nationwide. Suspension will become effective on the 91st day after
Nationwide receives the notice. If a contract is suspended, Nationwide will not
accept new purchase payments, except by mutual consent. All other contract terms
will continue to apply.
Once the suspension is effective, the contract owner may, upon 30 days written
notice to Nationwide, terminate the contract. Termination will become effective
on the 31st day after Nationwide receives the notice. Upon termination,
Nationwide will pay the contract owner the value of the contract, in accordance
with the terms of the contract. This amount is subject to applicable charges
including CDSC.
REDEMPTION OF PARTICIPANT ACCOUNTS
The contract owner's right to redeem participant accounts, either fully or
partially, will be governed by the terms of the plan.
If the plan so permits, the contract owner may redeem a participant account,
fully or partially, at any time before retirement income payments begin under
Option B1 or B2 (see "Retirement Income Forms"). A partial redemption will not
affect requirements to make future purchase payments.
For partial redemptions, Nationwide will cancel accumulation units from the
sub-accounts. The requested dollar amount cannot exceed available accumulation
unit value. The contract owner must instruct Nationwide how the redemption
should be taken from the sub-accounts. If no instruction is given, the
redemption will be taken proportionately from each sub-account based on the
value of each sub-account at the time of the redemption.
Instead of a lump sum distribution of a full or partial redemption, the contract
owner (or participant, if permitted by the plan) may elect to have the
redemption paid pursuant to Retirement Income Form A1 or A2, subject to the
minimums applicable to these options.
If the contract owner terminates the contract, all participant accounts under
the contract will be redeemed as permitted by the plan. A CDSC may apply.
However, absent contract termination, no CDSC will apply to full or partial
redemptions.
Nationwide will pay all redemption amounts to the contract owner. The contract
owner is obligated to distribute these amounts to the participant. The contract
owner and Nationwide may agree to have Nationwide pay these amounts directly to
the participant.
Nationwide will pay any redemption amounts within 7 days of receiving the
redemption request. However, Nationwide may suspend or postpone payment when:
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<PAGE> 27
1) the New York Stock Exchange is closed;
2) trading on the New York Stock Exchange is restricted;
3) an emergency is declared by the SEC making disposal or valuation of
securities held in the variable account impracticable; or
4) the SEC, by order, permits a suspension or postponement for the
protection of security holders.
Rules and regulations of the SEC will govern as to when conditions described in
(2) and (3) exist. If Nationwide is closed on days when the New York Stock
Exchange is open, contract vlaue could be affected since the contract owner and
participant would not have access to their account.
Participant account value upon full surrender may be more or less than the total
of all purchase payments.
RETIREMENT PERIOD
ADDITIONAL PURCHASE PAYMENT BEFORE BEGINNING RETIREMENT INCOME PAYMENTS
The contract owner may make one additional purchase payment to each
participant's account in order to increase retirement income payments. The
contract owner must notify Nationwide of this election in the documentation
electing the Retirement Income Form and retirement date (see "Election of
Retirement Income Form and Date"). The purchase payment must be made by the last
business day before retirement income payments begin. This purchase payment is
subject to any applicable premium taxes.
The annuity rates under the contract apply to the entire value, including any
such additional purchase payment that does not exceed 5 times the purchase
payments allocated to a participant's account before the date of notice is
given. Any amount in excess of this amount may be applied at annuity rates
currently offered to this type of contract.
RETIREMENT INCOME PAYMENTS
The distribution period is the period during which a participant account is paid
out in installments. Since the distribution period usually occurs after a
participant retires, it is also referred to as the retirement period.
Nationwide will pay all retirement distributions to the contract owner. The
contract owner is obligated to distribute these amounts to the participant. The
contract owner and Nationwide may agree to have Nationwide pay these amounts
directly to the participant.
Upon retirement, a participant's account value can be used to purchase either a
fixed dollar annuity, a variable payment annuity, or an available combination of
both.
Nationwide is obligated to make payments under a variable payment annuity.
However, the amount of each payment is not guaranteed. Variable payment amounts
will reflect the investment performance of the sub-accounts, but will not be
affected by adverse mortality experience or by increased expenses.
A fixed dollar annuity provides for payments that are guaranteed as to dollar
amount during the distribution period. Upon retirement, the participant's
account value is used to purchase a contract funded by Nationwide's general
account. Once this contract has been purchased, the participant's account will
no longer vary with the investment performance of the underlying mutual funds.
To determine the amount of the first fixed dollar annuity payment, the value is
applied to the applicable annuity table based on the distribution schedule
elected. The fixed payment annuity can be distributed in any of the forms listed
under the provision "Retirement Income Forms." Specifically, they can be
distributed as:
1) payments for a designated period;
2) payments of a designated amount;
3) life income with payment certain; or
4) joint and survivor life income.
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<PAGE> 28
Fixed dollar annuities are available under a plan upon the contract owner's
election.
ELECTION OF RETIREMENT INCOME FORM AND DATE
The contract provides for retirement income payments to begin on the date and
under the retirement options set forth in the plan. At least one month before
retirement income payments are set to begin, the contract owner may elect one of
the retirement income options set forth in this prospectus. Nationwide must
receive this election in writing. The plan may restrict changes in the
retirement income option elected.
If, at retirement, the present value of a participant's account is less than
$3,500, Nationwide may make a lump sum distribution instead of periodic
payments.
RETIREMENT INCOME FORMS
Retirement distributions may take any of the following forms, as permitted by
the plan:
AMOUNT AND PERIOD CERTAIN OPTIONS
Option A1: Payments for a Designated Period
Payments will be made monthly for a set number of years not to exceed 30
years. The amount of each payment will vary with the performance of the
underlying mutual funds in which the participant account invests. Nationwide
calculates each payment by multiplying (a) by (b), where:
a) is the accumulation unit value on the day the payment is made; and
b) is the number of accumulation units applied under this option divided
by the number of payments selected.
Once the amount of the payment is calculated, Nationwide will cancel
available accumulation units to equal the dollar amount of that payment.
Exchanges between the investment options are permitted subject to the
limitations set forth in the Group Fixed Fund Retirement Contract. Exchanges
may cause the number of accumulation units to change, necessitating a
recalculation of the payment amount.
If the period selected under this option is less than 5 years, and the
participant has less than 5 participant account years, a CDSC will be
assessed against each payment.
Option A2: Payments of a Designated Amount
Payments will be made monthly in equal installments of a set amount (not less
than $25 per month) until no accumulation units remain in the participant
account. The participant's account is adjusted each valuation date to reflect
investment results. Nationwide will cancel accumulation units up to the
designated dollar amount of the payment.
Exchanges between the investment options are permitted subject to the
limitations set forth in the Group Fixed Fund Retirement Contract.
LIFE INCOME OPTIONS
For the following options, payments will be determined annually and will remain
level throughout the year. Each year, on the anniversary of the beginning of
retirement income payments, a new monthly payment will be determined. That new
payment will remain level for that year.
Nationwide will use the retired participant's adjusted age to determine each
year's set monthly payment. This adjusted age may not be the same as the retired
participant's actual age.
Life income options are based on:
o the mortality tables specified in the contract;
o the adjusted age of the retired participant;
o the type of retirement income payment option(s) selected; and
o in the case of variable payments, the investment performance of the
specific sub-accounts elected.
Option B1: Life Income with Payment Certain
Payments will be made at least annually during a participant's lifetime for a
set period of 60, 120, 180, 240, 300 or 360 months, as elected. If the
participant dies before the end of the selected period, level payments will
continue to the beneficiary during the
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<PAGE> 29
remainder of the selected period. Unless prohibited by the plan, the
beneficiary may elect at any time to receive the present value of the
remaining number of payments in a single payment, calculated using the same
assumed investment rate used previously.
Nationwide will cancel accumulation units up to the designated dollar amount
of each payment.
Option B2: Joint and Survivor Life Income
Payments will be made monthly during the joint lifetime of a designated
annuitant and a named beneficary. Payments will be made as long as either of
the two is living. If the annuitant predeceases the beneficiary, payments
will continue to be paid to the beneficiary at 100%, 75%, 66 2/3% or 50% of
the original payment amount as elected until the beneficiary's death. If the
beneficiary predeceases the designated annuitant, payments will continue at
100% to the designated annuitant.
Nationwide will cancel accumulation units up to the designated dollar amount
of each payment.
Other Options
Alternate distribution methods may be used with Nationwide's consent.
Frequency of Payment
The retired participant, with the contract owner's consent, may receive payments
under any option annually, semi-annually, or quarterly instead of monthly. Any
change in frequency of payments must be on the anniversary of the beginning of
retirement income payments.
Withdrawal
If allowed by the plan, any amount remaining under option A1 or A2 may be
withdrawn. If that amount is at least $5,000, the withdrawn amount may be
applied to option B1 or B2, subject to minimum payment requirements.
DETERMINATION OF LIFE INCOME PAYMENTS
The amount of annuity payments will vary depending on the performance of the
underlying mutual funds selected.
Assumed Investment Rate
An assumed investment rate is the percentage rate of return assumed to determine
the amount of the first payment under a variable payment annuity. Nationwide
uses the assumed investment rate of 3.5% to calculate the first annuity payment
and to calculate the investment performance of an underlying mutual fund in
order to determine subsequent payments under a variable payment annuity. If not
prohibited by law, a contract owner may, at contract issuance, elect an
alternate assumed investment rate of 5% per annum. The choice of assumed
investment rate affects the pattern of retirement income payments. An assumed
investment rate is the percentage rate of return required to maintain level
variable annuity payments. Subsequent years' variable annuity payments may be
more or less than the first payment based on whether actual investment
performance is higher or lower than the assumed investment rate.
Value of an Annuity Unit
Annuity unit values for sub-accounts are determined by multiplying the net
investment factor for the valuation period for which the annuity unit is being
calculated by the immediately preceding valuation period's annuity unit value,
and multiplying the result by an interest factor to neutralize the assumed
investment rate built into the variable payment annuity purchase rate basis in
the contracts.
First Years' Payments
To determine the payment that will be distributed monthly for the first year
after retirement, Nationwide first determines the participant's account value as
of the retirement date. This value is found by multiplying the number of
accumulation units in each sub-account for that participant's account by the
accumulation unit value for that sub-account on the last business day
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<PAGE> 30
of the second calendar week before the date the first payment will be made.
Based on the participant's account value, Nationwide then determines the amount
of each monthly payment. The monthly payment amount is found by dividing the
accumulation unit value of that sub-account in the participant's account by the
amount required to provide $1 per month (the purchase rate).
Once the monthly payment amount is found, Nationwide multiplies the payment by
12 to get the total payment for the year. Then Nationwide cancels the number of
accumulation units from the participant's account to equal the total payments
for the year. The accumulation units will be canceled from each sub-account in
the same proportion that new purchase payments are allocated. The value is then
transferred to Nationwide's general account from which monthly payments are
made.
The total annual amount is calculated so that if there are no partial
redemptions, and no underlying mutual fund dividends are taken in cash, the
monthly payments will be level as long as the net investment factor equals the
assumed investment rate plus an amount equal to the annual administrative
charge. Payments in subsequent years will vary depending on how the
sub-accounts' performance compares to the assumed investment rate.
Second and Subsequent Years' Payments
On each anniversary of the beginning of the retirement income payments, the
second year's monthly payment amount will be calculated. The calculation will be
performed in the same manner as the first year's payment, except that the
current participant account value will be used. Similarly, accumulation units
will be cancelled and the value will be transferred to Nationwide's general
account, from which monthly payments will be made. Subsequent years' payments
will be calculated in the same fashion on each anniversary date.
DEATH OF PARTICIPANT
PARTICIPANT DEATH BEFORE RETIREMENT
If a participant dies before beginning retirement income payments, a death
benefit equal to the participant's account value is payable as set forth in the
plan. The death benefit will be paid when Nationwide:
1) receives and verifies the participant's death; and
2) verifies beneficiary designations.
If the plan so provides, the beneficiary may receive the death benefit:
1) as a lump sum; or
2) in the form of a Retirement Income Form contained in the contract, subject
to applicable minimums. Retirement income payments may be fixed, variable,
or a combination of both.
DEATH OF RETIRED PARTICIPANT
If a retired participant dies while receiving payments, any payment due will be
determined according to the Retirement Income Form elected. The calculation of
the net present value of any remaining payments under a period certain option
will be based on the same assumed investment rated used in determining the
payments before the retired participant's death.
The participant account will be reduced by the number of accumulation units not
required to provide further payments during the remainder of a period certain,
if any, or to a contingent retired participant. Depending on Nationwide's
obligation under the contract, the accumulation units will either remain in the
variable account or be transferred to Nationwide's general account.
FEDERAL TAX CONSIDERATIONS
Tax advantages that may be associated with the contracts described in this
prospectus will depend on:
o the type of contract purchased; and
o the purposes for which the contract is purchased (see "Synopsis of the
Contracts").
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<PAGE> 31
Nationwide does not guarantee the tax status of the contracts or any
transactions involving the contracts. If the contract is purchased as the
investment or funding medium for certain retirement plans, tax advantages
enjoyed by the contract owner and/or annuitant may relate to participation in
the plan rather than ownership of the annuity contract.
The contracts are treated as a trust under rules similar to Internal Revenue
Code Section 401(f).
Under existing federal income tax law, Nationwide is not required to pay taxes
on the variable account's investment income when it is credited to contract
owners. Nationwide is taxed as a life insurance company under Part One,
Subchapter L of the Internal Revenue Code.
Contract owners would normally be taxed on income and capital gains earned under
the contract, whether or not taken in cash. However, the contracts are issued
only to organizations exempt from federal income tax.
Distributions will normally contain purchase payments that were not previously
included in the participant's gross income. Upon distribution, these amounts
should be included in the gross income of the recipient.
The contract owner is responsible for ensuring that the plan is established and
administered in accordance with the provisions set forth in the Internal Revenue
Code.
CONTRACTS ISSUED UNDER THE NEW YORK MODEL PLAN
In order to sell the contracts to governmental employers in the state of New
York, the following amendments must be made to the contract:
o References to "annuity" payments throughout the prospectus are modified to
mean "benefit" payments.
o The "Suspension and Termination" provision is amended to allow a
participant to "freeze" his or her account and maintain the account on
deposit with Nationwide even though the contract was terminated.
o All references to Life Retirement Income Forms A1, A2, B1 and B2 throughout
this prospectus shall mean Option 1, Option 2, Option 3, and Option 4,
respectively.
o All references to "CDSC" and "Contingent Deferred Sales Charge" throughout
this prospectus are deleted.
STATEMENTS AND REPORTS
Nationwide (or a designee) may provide each participant a Statement of Assets,
Liabilities and Contract Owners' Equity, a Statement of Operations, and a
Statement of Changes in Contract Owners' Equity for the variable account.
Nationwide may also provide annual and semi-annual reports containing all
applicable information and financial statements.
Additionally, each participant and retired participant will receive periodic
reports on the value of his or her account.
Participants should review these reports carefully. All errors or corrections
must be reported to Nationwide immediately to assure proper crediting to the
contract. Unless Nationwide is notified within 30 days of receipt of the report,
Nationwide will assume all transactions are correct.
Nationwide will provide contract owners with the variable account's prospectus
to make available to participants. The contract owner may, under the terms of
the plan, be required to provide additional information to participants, such as
changes in the plan, changes in the tax status of the plan, or the financial
condition of the contract owner as it relates to obligations under the plan.
LEGAL PROCEEDINGS
Nationwide is a party to litigation and arbitration proceedings in the ordinary
course of its business, none of which is expected to have a material adverse
effect on Nationwide.
In recent years, life insurance companies have been named as defendants in
lawsuits, including class action lawsuits relating to life insurance and annuity
pricing and sales practices. A
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<PAGE> 32
number of these lawsuits have resulted in substantial jury awards or
settlements.
In November 1997, two plaintiffs, one who was the owner of a variable life
insurance contract and the other who was the owner of a variable annuity
contract, commenced a lawsuit in a federal court in Texas against Nationwide and
the American Century group of defendants (Robert Young and David D. Distad v.
Nationwide Life Insurance Company et al.). In this lawsuit, plaintiffs sought to
represent a class of variable life insurance contract owners and variable
annuity contract owners whom they claim were allegedly misled when purchasing
these variable contracts into believing that the performance of their underlying
mutual fund option managed by American Century, whose shares may only be
purchased by insurance companies, would track the performance of a mutual fund,
also managed by American Century, whose shares are publicly traded. The amended
complaint seeks unspecified compensatory and punitive damages. On April 27,
1998, the District Court denied, in part, and granted, in part, motions to
dismiss the complaint filed by Nationwide and American Century. The remaining
claims against Nationwide allege securities fraud, common law fraud, civil
conspiracy, and breach of contract. The District Court, on December 2, 1998,
issued an order denying plaintiffs' motion for class certification and the
appeals court declined to review the order denying class certification upon
interlocutory appeal. On June 11, 1999, the District Court denied the
plaintiffs' motion to amend their complaint and reconsider class certification.
In January 2000 Nationwide and American Century settled this lawsuit now limited
to the claims of the two named plaintiffs. On February 9, 2000 the court
dismissed this lawsuit with prejudice.
On October 29, 1998, Nationwide was named in a lawsuit filed in Ohio state court
related to the sale of deferred annuity products for use as investments in
tax-deferred contributory retirement plans (Mercedes Castillo v. Nationwide
Financial Services, Inc., Nationwide Life Insurance Company and Nationwide Life
and Annuity Insurance Company). On May 3, 1999, the complaint was amended to,
among other things, add Marcus Shore as a second plaintiff. The amended
complaint is brought as a class action on behalf of all persons who purchased
individual deferred annuity contracts or participated in group annuity contracts
sold by Nationwide and the other named Nationwide affiliates which were used to
fund certain tax-deferred retirement plans. The amended complaint seeks
unspecified compensatory and punitive damages. No class has been certified. On
June 11, 1999, Nationwide and the other named defendants filed a motion to
dismiss the amended complaint. On March 8, 2000, the Court denied the motion to
dismiss the amended complaint filed by Nationwide and the other named
defendants. Nationwide intends to defend this lawsuit vigorously.
There can be no assurance that any litigation relating to pricing or sales
practices will not have a material adverse effect on Nationwide in the future.
The general distributor, NISC, is not engaged in any litigation of any material
nature.
ADVERTISING AND SUB-ACCOUNT PERFORMANCE SUMMARY
A "yield" and "effective yield" may be advertised for the Nationwide Money
Market Fund, NSAT - Money Market Fund, and the Dreyfus Cash Management Fund -
Class A. "Yield" is a measure of the net dividend and interest income earned
over a specific seven-day period (which period will be stated in the
advertisement) expressed as a percentage of the offering price of the fund's
units. Yield is an annualized figure, which means that it is assumed that funds
generate the same level of net income over a 52-week period. The "effective
yield" is calculated similarly but includes the effect of assumed compounding,
calculated under rules prescribed by the SEC. The effective yield will be
slightly higher than yield due to this compounding effect.
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<PAGE> 33
Nationwide may advertise the performance of a sub-account in relation to the
performance of other variable annuity sub-accounts, underlying mutual fund
options with similar or different objectives, or the investment industry as a
whole. Other investments to which the sub-accounts may be compared include, but
are not limited to:
o precious metals;
o real estate;
o stocks and bonds;
o closed-end funds;
o bank money market deposit accounts and passbook savings;
o CDs; and
o the Consumer Price Index.
Market Indexes
The sub-accounts will be compared to certain market indexes, such as:
o S&P 500;
o Shearson/Lehman Intermediate Government/Corporate Bond Index;
o Shearson/Lehman Long-Term Government/Corporate Bond Index;
o Donoghue Money Fund Average;
o U.S. Treasury Note Index;
o Bank Rate Monitor National Index of 2 1/2 Year CD Rates; and
o Dow Jones Industrial Average.
Tracking & Rating Services; Publications
Nationwide's rankings and ratings are sometimes published by other services,
such as:
o Lipper Analytical Services, Inc.,
o CDA/Wiesenberger,
o Morningstar,
o Donoghue's,
o magazines such as:
> Money;
> Forbes;
> Kiplinger's Personal Finance Magazine;
> Financial World;
> Consumer Reports;
> Business Week;
> Time;
> Newsweek;
> National Underwriter; and
> News and World Report;
o LIMRA;
o Value;
o Best's Agent Guide;
o Western Annuity Guide;
o Comparative Annuity Reports;
o Wall Street Journal;
o Barron's;
o Investor's Daily;
o Standard & Poor's Outlook; and
o Variable Annuity Research & Data Service (The VARDS Report).
These rating services and publications rank the underlying mutual funds'
performance against other funds. These rankings may or may not include the
effects of sales charges or other fees.
Financial Rating Services
Nationwide is also ranked and rated by independent financial rating services,
among which are Moody's, Standard & Poor's and A.M. Best Company. Nationwide may
advertise these ratings. These ratings reflect Nationwide's financial strength
or claims-paying ability. The ratings are not intended to reflect the investment
experience or financial strength of the variable account.
Some Nationwide advertisements and endorsements may include lists of
organizations, individuals or other parties that recommend Nationwide or the
contract. Furthermore, Nationwide may occasionally advertise comparisons of
currently taxable and tax deferred investment programs, based on selected tax
brackets, or discussions of alternative investment vehicles and general economic
conditions.
Historical Performance of the Sub-Accounts
Nationwide will advertise historical performance of the sub-accounts. Nationwide
may advertise for the sub-account's standardized average annual total return,
calculated in a manner prescribed by the SEC, and non-standardized average
annual total return ("non-standardized return").
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<PAGE> 34
Standardized average annual total return shows the percentage rate of return of
a hypothetical initial investment of $1,000 for the most recent one, five and
ten year periods (or for a period covering the time the underlying mutual fund
has been available in the variable account if it has not been available for one
of the prescribed periods). Any calculation will reflect the standard 7-year
CDSC schedule and the deduction of all charges that could be made to the
contracts, except for premium taxes, which may be imposed by certain states.
Non-standardized return, calculated similar to standardized average annual total
return, shows the percentage rate of return of a hypothetical initial investment
of $10,000 for the most recent one, five and ten year periods (or for a period
covering the time the underlying mutual fund has been in existence). For those
underlying mutual funds which have not been available for one of the prescribed
periods, the non-standardized return illustrations will show the investment
performance the underlying mutual funds would have achieved (reduced by the same
charges except the CDSC) had they been available in the variable account for one
of the periods. The CDSC is not reflected because the contracts are designed for
long term investment. The CDSC, if reflected, would decrease the level of
performance shown. An initial investment of $10,000 is assumed because that
amount is closer to the size of a typical contract than $1,000, which was used
in calculating the standardized average annual total return.
If the underlying mutual fund has been available in the variable account for
less than one year (or if the underlying mutual fund has been effective for less
than one year), standardized and non-standardized performance is not annualized.
The standardized average annual total return and non-standardized total return
quotations are calculated using data for the period ended December 31, 1999.
However, Nationwide generally provides performance information more frequently.
Information relating to performance of the sub-accounts is based on historical
earnings and does not represent or guarantee future results.
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SUB-ACCOUNT PERFORMANCE SUMMARY
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (OTHER THAN MONEY MARKET FUNDS)
<TABLE>
<CAPTION>
10 YEARS OR
DATE FUND DATE FUND
AVAILABLE IN THE AVAILABLE IN
SERIES OPTION 1 YEAR 5 YEARS VARIABLE ACCOUNT VARIABLE
TO 12/31/99 TO 12/31/99 TO 12/31/99 ACCOUNT
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation Fund - 33.70% 20.24% 16.57% 11/2/92
Institutional Class
American Century: International Discovery - Investor Class 76.76% N/A 70.53% 11/13/98
American Century: Income & Growth - Investor Class 6.84% N/A 10.84% 11/13/98
American Century: Growth - Investor Class 23.40% 21.42% 12.97% 01/02/85
American Century: Select - Investor Class 11.07% 20.89% 10.65% 11/15/91
American Century: Ultra - Investor Class 30.13% 24.55% 16.57% 11/15/91
The Bond Fund of America(SM), Inc. -8.68% 1.79% 3.24% 05/01/87
The Brown Capital Management - Small Company Fund N/A N/A 24.80% 10/01/99
Davis New York Venture Fund - Class A 6.48% 21.40% 13.91% 11/01/93
Delaware Group Decatur Fund, Inc. - Decatur Income Fund - -14.15% 12.03% 7.63% 05/31/91
Institutional Class
Dreyfus Appreciation Fund, Inc. -1.07% N/A 1.93% 11/13/98
Dreyfus Cash Management - Class A -5.88% -1.52% -2.98% 11/02/92
Dreyfus Premier Midcap Stock Fund - Class A -0.41% N/A 7.63% 11/13/98
Dreyfus S&P 500 Index Fund 9.12% N/A 19.39% 05/01/97
The Dreyfus Premier Third Century Fund, Inc. - Class Z 18.93% 24.94% 13.13% 04/01/87
Evergreen Income and Growth Fund - Class Y 5.27% 9.44% 4.99% 05/01/87
Federated Bond Fund - Class F -13.07% N/A -14.03% 11/13/98
Federated U. S. Government Securities Fund: 2-5 Years - -11.37% -0.47% -2.60% 04/30/93
Institutional Shares
Fidelity Advisor Growth Opportunities Fund - Class A -6.90% N/A -2.54% 11/13/98
Fidelity Advisor High Yield Fund - Class T -2.67% N/A -0.95% 10/30/98
Fidelity Asset Manager(TM) 2.52% 10.68% 5.35% 11/01/93
Fidelity Capital & Income Fund 2.13% 5.92% 8.26% 01/02/85
Fidelity Contrafund(R) 13.89% 22.39% 17.03% 11/02/92
Fidelity Equity-Income Fund -3.86% 14.92% 9.37% 01/02/85
Fidelity Growth & Income Portfolio -0.63% 19.50% 14.93% 11/02/92
Fidelity Magellan(R) Fund 12.87% 21.06% 14.53% 01/02/92
The Growth Fund of America(R), Inc. 34.32% 24.09% 20.12% 05/31/91
The Income Fund of America(R), Inc. -10.39% 9.34% 7.26% 09/27/94
INVESCO Dynamics Fund 60.17% N/A 68.76% 11/13/98
INVESCO Equity Income Fund (formerly, INVESCO Industrial 1.74% 13.91% 9.49% 11/02/92
Income Fund)
INVESCO Total Return -12.15% N/A -12.81% 11/13/98
Janus Fund 35.74% 25.90% 17.93% 05/03/93
Janus Worldwide Fund 52.82% N/A 35.72% 01/02/98
LifeDesigns Series - The Aggressive Portfolio 13.01% N/A 12.27% 01/20/98
LifeDesigns Series - The Conservative Portfolio -7.21% N/A -0.66% 01/20/98
LifeDesigns Series - The Moderate Portfolio 3.80% N/A 7.17% 01/20/98
LifeDesigns Series - The Moderately Aggressive Portfolio 8.21% N/A 9.32% 01/20/98
LifeDesigns Series - The Moderately Conserative -1.24% N/A 3.73% 01/20/98
MAS Funds Fixed Income Portfolio -11.45% 1.95% 0.05% 09/01/94
Massachusetts Investors Growth Stock Fund - Class A 27.44% 30.28% 17.09% 01/02/85
MFS(R) Growth Opportunities Fund - Class A 21.57% 23.13% 11.87% 01/02/85
MFS(R) High Income Fund - Class A -4.02% 3.75% 0.99% 08/03/93
Morgan Stanley Institutional Fund, Inc. - Equity Growth 28.06% N/A 31.04% 11/13/98
Portfolio - Class B
</TABLE>
32
<PAGE> 36
STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
<TABLE>
<CAPTION>
10 YEARS OR
DATE FUND DATE FUND
AVAILABLE IN THE ADDED TO
SERIES OPTION 1 YEAR 5 YEARS VARIABLE ACCOUNT VARIABLE
TO 12/31/99 TO 12/31/99 TO 12/31/99 ACCOUNT
<S> <C> <C> <C> <C>
Nationwide(R) Bond Fund - Class D -13.50% 1.38% 5.97% 04/01/92
Nationwide(R) Fund - Class D -11.09% 18.93% 10.50% 01/02/85
Nationwide(R) Growth Fund - Class D 5.54% 16.98% 10.14% 05/01/86
Nationwide(R) Money Market Fund - Prime Shares -6.32% -2.07% -1.43% 01/02/85
Nationwide S&P 500(R) Index Fund - Institutional Service Class 8.66% N/A 12.08% 11/13/98
(formerly, Class Y)
Nationwide Separate Account Trust - Nationwide Income Fund N/A N/A -7.91% 05/01/99
Nationwide Separate Account Trust - Nationwide Small Company 32.66% N/A 12.47% 01/02/98
Fund
Neuberger Berman Guardian Fund, Inc. -2.57% N/A 7.71% 05/01/95
Neuberger Berman Manhattan Fund, Inc. 39.33% 21.25% 12.02% 05/31/91
Neuberger Berman Partners Trust -3.32% N/A -3.73% 11/13/98
Oppenheimer Global Fund - Class A 46.98% N/A 47.88% 11/13/98
Prestige Balanced Fund - Institutional Service Class -1.75% N/A -0.53% 11/13/98
(formerly, Class Y)
Prestige International Fund - Institutional Service Class 10.23% N/A 13.33% 11/13/98
(formerly, Class Y)
Prestige Large Cap Growth Fund - Institutional Service Class 23.56% N/A 30.71% 11/13/98
(formerly, Class Y)
Prestige Large Cap Value Fund - Institutional Service Class -15.24% N/A -13.44% 11/13/98
(formerly, Class Y)
Prestige Small Cap Fund - Institutional Service Class 7.64% N/A 10.82% 11/13/98
(formerly, Class Y)
Putnam Investors Fund - Class A 18.92% 26.76% 14.85% 01/02/85
Putnam Voyager Fund - Class A 44.66% 25.84% 19.51% 04/30/90
SEI Index Funds - S&P 500 Index Portfolio 9.67% 23.35% 12.45% 05/31/91
Seligman Growth Fund, Inc. - Class A 19.04% 21.19% 12.08% 01/02/85
T. Rowe Price International Stock Fund(R) 23.33% 9.40% 6.32% 04/30/90
Templeton Foreign Fund - Class A 27.90% 6.71% 8.19% 11/02/92
Warburg Pincus Emerging Growth Fund - Common Class 30.47% N/A 14.79% 01/02/98
</TABLE>
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
(The total return figures shown below do not reflect the deduction of the
Participant Account Maintenance Charge or any applicable CDSC).
<TABLE>
<CAPTION>
10 YEARS OR
DATE FUND
SERIES OPTION 1 YEAR 5 YEARS WAS EFFECTIVE DATE FUND
TO 12/31/99 TO 12/3199 TO 12/31/99 EFFECTIVE
<S> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM Constellation Fund - 43.70% 24.42% 20.53% 04/08/92
Institutional Class
American Century: International Discovery- Investor Class 86.76% 29.13% 26.53% 04/04/94
American Century: Income & Growth - Investor Class 16.84% 26.83% 20.56% 12/17/90
American Century: Growth - Investor Class 33.41% 25.74% 16.90% 06/30/71
American Century: Select - Investor Class 21.07% 25.04% 14.43% 06/30/71
American Century: Ultra - Investor Class 40.13% 28.50% 23.27% 11/02/81
The Bond Fund of America(SM), Inc. 1.32% 7.17% 7.37% 05/28/74
The Brown Capital Management - Small Company Fund 42.66% 24.18% N/A 07/23/92
Davis New York Venture Fund - Class A 16.48% 25.06% 17.65% 02/17/69
Delaware Group Decatur Fund, Inc. - Decatur Income Fund - -4.37% 16.13% 10.36% 03/18/57
Institutional Class
Dreyfus Appreciation Fund, Inc. 8.93% 24.92% 15.72% 01/18/84
</TABLE>
33
<PAGE> 37
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
<TABLE>
<CAPTION>
10 YEARS OR
DATE FUND
SERIES OPTION 1 YEAR 5 YEARS WAS EFFECTIVE DATE FUND
TO 12/31/99 TO 12/3199 TO 12/31/99 EFFECTIVE
<S> <C> <C> <C> <C>
Dreyfus Premier Midcap Stock Fund - Class A 9.59% 22.04% 17.55% 04/06/94
Dreyfus Cash Management - Class A 4.12% 4.52% 4.32% 03/11/85
Dreyfus S&P 500 Index Fund 19.12% 26.64% 16.37% 01/02/90
The Dreyfus Premier Third Century Fund, Inc. - Class Z 28.93% 28.69% 16.94% 03/29/72
Evergreen Income and Growth Fund - Class Y 15.27% 14.09% 9.46% 08/31/78
Federated Bond Fund - Class F -3.26% 6.69% 8.43% 05/20/87
Federated U. S. Government Securities Fund: 2-5 Years - -1.47% 5.28% 5.54% 02/18/83
Institutional Shares
Fidelity Advisor Growth Opportunities Fund - Class A 3.10% 19.98% 17.01% 11/18/87
Fidelity Advisor High Yield Fund - Class T 7.33% 9.85% 12.43% 01/05/87
Fidelity Asset Manager(TM) 12.52% 15.42% 12.70% 12/28/88
Fidelity Capital & Income Fund 12.13% 11.02% 11.84% 11/01/77
Fidelity Contrafund(R) 23.89% 26.24% 21.22% 05/17/67
Fidelity Equity-Income Fund 6.14% 18.98% 13.43% 05/16/66
Fidelity Growth & Income Portfolio 9.37% 23.37% 17.26% 12/30/85
Fidelity Magellan(R) Fund 22.87% 25.05% 17.08% 05/02/63
The Growth Fund of America(R) Inc. 44.32% 28.20% 18.12% 07/29/69
The Income Fund of America(R), Inc. -0.43% 13.77% N/A 01/01/71
INVESCO Dynamics Fund 70.17% 31.86% 22.90% 09/01/67
INVESCO Equity Income Fund (formerly, INVESCO Industrial Income Fund) 11.74% 18.20% 13.92% 02/01/60
INVESCO Total Return Fund -2.29% 14.23% 11.32% 09/22/87
Janus Fund 45.74% 29.93% 19.36% 02/05/70
Janus Worldwide Fund 62.82% 29.65% 23.93% 05/15/91
MAS Funds Fixed Income Portfolio -1.55% 7.25% 7.49% 11/14/84
Massachusetts Investors Growth Stock Fund - Class A 37.44% 34.04% 20.77% 01/01/35
MFS(R) Growth Opportunities Fund - Class A 31.57% 27.02% 16.04% 09/09/70
MFS(R) High Income Fund - Class A 5.98% 8.95% 9.46% 02/17/78
Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio - 38.06% N/A 28.50% 01/02/96
Class B
LifeDesigns Series - The Aggressive Portfolio 23.01% N/A 20.49% 01/20/98
LifeDesigns Series - The Conservative Portfolio 2.79% N/A 6.91% 01/20/98
LifeDesigns Series - The Moderate Portfolio 13.80% N/A 14.50% 01/20/98
LifeDesigns Series - The Moderately Aggressive Portfolio 18.21% N/A 17.41% 01/20/98
LifeDesigns Series - The Moderately Conserative 8.76% N/A 11.67% 01/20/98
Nationwide(R) Bond Fund - Class D -3.71% 6.70% 6.25% 03/03/80
Nationwide(R) Fund - Class D -1.17% 22.77% 14.41% 05/11/33
Nationwide(R) Growth Fund - Class D 15.54% 21.15% 14.15% 02/27/61
Nationwide(R) Money Market Fund - Prime Shares 3.68% 4.09% 3.85% 01/04/99
Nationwide S&P 500(R) Index Fund - Institutional Service Class 18.66% N/A 27.55% 10/30/98
(formerly, Class Y)
Nationwide Separate Account Trust - Nationwide Income Fund -2.94% N/A 1.56% 01/20/98
Nationwide Separate Account Trust - Nationwide Small Company Fund 42.66% N/A 22.06% 10/23/95
Neuberger Berman Guardian Fund, Inc. 7.43% 14.22% 12.52% 06/01/50
Neuberger Berman Manhattan Fund, Inc. 49.33% 25.48% 16.13% 03/01/79
Neuberger Berman Partners Trust 6.68% 19.19% 13.60% 01/20/75
Oppenheimer Global Fund - Class A 56.98% N/A N/A 12/22/69
Prestige Balanced Fund - Institutional Service Class (formerly, 8.25% N/A 13.57% 10/30/98
Class Y)
Prestige International Fund - Institutional Service Class (formerly, 20.23% N/A 22.58% 10/30/98
Class Y)
</TABLE>
34
<PAGE> 38
NON-STANDARDIZED AVERAGE ANNUAL TOTAL RETURN (CONTINUED)
<TABLE>
<CAPTION>
10 YEARS OR
DATE FUND
SERIES OPTION 1 YEAR 5 YEARS WAS EFFECTIVE DATE FUND
TO 12/31/99 TO 12/3199 TO 12/31/99 EFFECTIVE
<S> <C> <C> <C> <C>
Prestige Large Cap Growth Fund - Institutional Service Class 33.56% N/A 45.22% 10/30/98
(formerly, Class Y)
Prestige Large Cap Value Fund - Institutional Service Class -5.54% N/A -0.12% 10/30/98
(formerly, Class Y)
Prestige Small Cap Fund - Institutional Service Class (formerly, 17.64% N/A 23.35% 10/30/98
Class Y)
Putnam Investors Fund - Class A 28.92% 30.45% 18.68% 12/01/25
Putnam Voyager Fund - Class A 54.66% 29.76% 20.93% 04/01/69
SEI Index Funds - S&P 500 Index Portfolio 19.67% 27.08% 16.83% 07/31/85
Seligman Growth Fund, Inc. - Class A 29.04% 25.03% 16.01% 04/01/37
T. Rowe Price International Stock Fund(R) 33.33% 14.62% 10.33% 05/09/80
Templeton Foreign Fund - Class A 37.90% 12.05% 10.26% 10/05/82
Warburg Pincus Emerging Growth Fund - Common Shares 40.47% 22.77% 17.16% 01/21/88
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no sub-account performance is available.
35
<PAGE> 39
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION
PAGE
General Information and History...........................................1
Services..................................................................1
Purchase of Securities Being Offered......................................2
Underwriters..............................................................2
Calculations of Performance...............................................2
Annuity Payments..........................................................3
Financial Statements......................................................4
36
<PAGE> 40
APPENDIX A: OBJECTIVES FOR UNDERLYING MUTUAL FUNDS
A summary of the investment objective for each underlying mutual fund is listed
below.
There is no guarantee that the investment objectives will be met.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE AVAILABLE WHEN THE CONTRACTS ARE
ISSUED TO 457 DEFERRED COMPENSATION PLANS.
AIM EQUITY INDEX FUNDS, INC. - AIM CONSTELLATION FUND - INSTITUTIONAL CLASS
The investment objective of the Fund is to proivde capital appreciation
primarily through investments in common stocks with emphasis on medium - sized
and smaller emerging growth companies. AIM Advisers, Inc. serves as the Fund's
investment adviser.
AMERICAN CENTURY: INCOME & GROWTH - INVESTOR CLASS GROWTH
The investment objective of the Fund is to seek dividend growth, current income
and capital appreciation by investing in common stocks. The Fund may buy
securities convertible into common stock, such as convertible bonds, convertible
preferred stocks or warrants. The Fund may also, for liquidity purposes, invest
in high-quality money market instruments with remaining maturities of one year
or less. The Fund may also enter into repurchase agreements, collateralized by
U.S. government securities, with banks or broker-dealers deemed to present
minimal credit risk. American Century Investment Management, Inc. serves as the
Fund's investment adviser.
AMERICAN CENTURY: GROWTH - INVESTOR CLASS
The investment objective of the Fund is capital growth through investment in
securities which the management considers to have better-than-average prospects
for appreciation. It is management's intention that the portfolio will generally
consist of common stocks of large, established companies. American Century
Investment Management, Inc. serves as the Fund's investment adviser.
AMERICAN CENTURY: SELECT - INVESTOR CLASS
The investment objective of the Fund is capital growth by investing primarily in
common stocks that are considered by management to have better-than-average
prospects for appreciation. Common stocks chosen must have a record of paying or
having committed themselves to the payment of regular cash dividends, but growth
is the primary consideration, and the dividends may not be significant. American
Century Investment Management, Inc. serves as the Fund's investment adviser.
AMERICAN CENTURY: ULTRA - INVESTOR CLASS
The investment objective of the Fund is capital growth by investing primarily in
common stocks that are considered by management to have better-than-average
prospects for appreciation. It is management's intention that the portfolio will
generally consist of common stocks of medium-sized and smaller companies.
American Century Investment Management, Inc. serves as the Fund's investment
adviser.
AMERICAN CENTURY: VALUE - INVESTOR CLASS
The investment objective of the Fund is to seek long-term capital growth. Income
is a secondary objective. Under normal market conditions, the Fund managers
intend to keep at least 65% of the Fund's assets invested in U.S. equity
securities of medium to large companies. American Century Investment Management,
Inc. serves as the Fund's investment adviser.
THE BROWN CAPITAL MANAGEMENT - SMALL COMPANY FUND
The investment objective of the Fund is to seek capital appreciation principally
through investment in the equity securities of companies with operating revenues
of $250 million or less at the time of the initial investment. Current income is
of secondary importance.
37
<PAGE> 41
DAVIS NEW YORK VENTURE FUND - CLASS A
The investment objective of the Fund is growth of capital. It invests primarily
in common stocks, and securities convertible into common stocks. The Fund
invests in securities subject to the risk of price fluctuations reflecting both
market evaluations of the business involved and general changes in the equity
markets. It invests in securities of foreign issuers, which involve special risk
factors, and may hedge currency fluctuation risks related thereto. Davis
Selected Advisers, L.P., serves as the Fund's investment adviser.
DREYFUS APPRECIATION FUND, INC.
The primary investment objective of the Fund is to provide long-term capital
growth consistent with the preservation of capital. Current income is a
secondary investment objective. The Fund seeks to meet its objectives by
investing primarily in the common stocks of domestic and foreign issuers. The
Dreyfus Corporation serves as the Fund's investment adviser.
DREYFUS CASH MANAGEMENT FUND - CLASS A
The investment objective of the Fund is to privode investors with as high a
level of current income as is consistent with the preservation of capital and
the maintenance of liquidity. The Dreyfus Corporation serves as the Fund's
investment adviser.
DREYFUS PREMIER MIDCAP STOCK
FUND - CLASS A
The investment objective of the Fund is to seek total investment returns
(including capital appreciation and income) which consistently outperform the
Standard & Poor's 400 MidCap Index. The Fund attempts to maintain a diversified
holding in common stocks of medium capitalization companies (firms with a market
value between $200 million and $5 billion). The Dreyfus Corporation serves as
the Fund's investment adviser.
DREYFUS S&P 500 INDEX FUND
The Fund's objective is to provide investment results that correspond to the
price and yield performance of publicly-traded common stocks in the aggregate,
as represented by the Standard & Poor's 500 Composite Stock Price Index. The
Dreyfus Corporation serves as the Fund's investment adviser.
THE DREYFUS PREMIER THIRD CENTURY FUND, INC. - CLASS Z
The Fund's primary goal is to provide capital growth through equity investment
in companies that, in the opinion of the Fund's management, not only meet
traditional investment standards, but which also show evidence that they conduct
their business in a manner that contributes to the enhancement of the quality of
life in America. Current income is secondary to the primary goal. The Dreyfus
Corporation serves as the Fund's investment adviser.
EVERGREEN INCOME AND GROWTH FUND - CLASS Y
The investment objective of the Fund is current income and capital appreciation.
The Fund invests primarily in common and preferred stocks, securities
convertible into or exchangeable for common stocks, and fixed income securities.
The Fund's objective is to maximize the "total return" on its portfolio of
investments. Evergreen Asset Management Corp. serves as the Fund's investment
adviser.
FEDERATED BOND FUND - CLASS F
The investment objective of the Fund is to provide as high a level of current
income as is consistent with the preservation of capital. The Fund invests
primarily in a professionally managed, diversified portfolio of bonds. Under
normal circumstances, at least 65% of the Fund's net assets will be invested in
investment grade securities, including repurchase agreements collateralized by
investment grade securities. The Fund may invest in corporate debt obligations,
U.S. Government obligations, municipal securities, asset-backed securities,
adjustable rate mortgage securities, collateralized mortgage obligations, and
other securities which are deemed to be consistent with the Fund's investment
objectives. Federated Investment Management Company serves as the Fund's
investment adviser.
38
<PAGE> 42
FEDERATED U.S. GOVERNMENT SECURITIES FUND: 2-5 YEARS - INSTITUTIONAL SHARES
The investment objective of the Fund is current income. The Fund pursues this
investment objective by investing in U.S. Government Securities with remaining
maturities of five years or less. Federated Investment Management Company serves
as the Fund's investment adviser.
FIDELITY ADVISOR GROWTH OPPORTUNITIES FUND - CLASS A
The investment objective of the Fund is to pursue capital growth that exceeds
market performance through investments in growth, cyclical, and value stocks.
Fidelity Management & Research Company serves as the Fund's investment adviser.
FIDELITY ADVISOR HIGH YIELD FUND - CLASS T
The Fidelity Advisor High Yield Fund is a bond fund designed to meet the needs
of the long-term investor, seeking above-average monthly income and potential
capital growth by investing in lower-rated, high-yielding, fixed income
securities. Fidelity Management & Research Company serves as the Fund's
investment adviser.
FIDELITY ASSET MANAGER(TM)
The investment objective of the Fund is a high total return with reduced risk
over the long term by allocating its assets among domestic and foreign stocks,
bonds, and short-term instruments. Fidelity Management & Research Company serves
as the Fund's investment adviser.
FIDELITY EQUITY-INCOME FUND
The investment objective of the Fund is to obtain reasonable income from a
portfolio consisting primarily of income-producing equity securities. The Fund
seeks a yield which exceeds the composite yield on the securities comprising the
Standard & Poor's Composite Index of 500 Stocks. In pursuing this objective, the
Fund will also consider the potential for capital appreciation. Fidelity
Management & Research Company serves as the Fund's investment adviser.
FIDELITY GROWTH & INCOME PORTFOLIO
The investment objective of the Portfolio is to seek high total return through a
combination of current income and capital appreciation by investing mainly in
equity securities.
INVESCO DYNAMICS FUND
The investment objective of the Fund is to seek appreciation of capital through
aggressive investment policies. The Fund invests primarily in common stocks of
U.S. companies traded on national securities exchanges and over-the-counter. The
Fund also has the flexibility to invest in preferred stocks and convertible or
straight issues of debentures, as well as foreign securities. INVESCO Funds
Group, Inc. serves as the Fund's investment adviser
INVESCO EQUITY INCOME FUND (FORMERLY, INVESCO INDUSTRIAL INCOME FUND).
The investment objective of the Fund is to seek the best possible current income
while following sound investment practices by investing in securities which will
provide a relatively high yield and stable return and which, over a period of
years, may also provide capital appreciation. Capital growth potential is a
secondary factor in the selection of portfolio securities of the Fund. The Fund
invests in common stocks, as well as convertible bond and preferred stocks.
INVESCO Funds Group, Inc. serves as the Fund's investment adviser.
INVESCO TOTAL RETURN FUND
The investment objective of the Fund is to seek to achieve a high total return
on investment through capital appreciation and current income by investing in a
combination of equity securities (consisting of common stocks and, to a lesser
degree, securities convertible into common stock) and fixed income securities.
The equity securities purchased by the Fund generally will be issued by
companies which are listed on a national securities exchange and which usually
pay regular dividends. This Fund seeks reasonably consistent total returns over
a
39
<PAGE> 43
variety of market cycles. INVESCO Funds Group, Inc. serves as the Fund's
investment adviser. INVESCO Capital Management, Inc. serves as the Fund's
sub-adviser.
JANUS FUND
The Janus Fund is a diversified fund that seeks long-term growth of capital by
investing primarily in common stocks of a large number of issuers of any size.
Janus Capital's fundamental analysis and selection process focuses on stocks
with earnings growth potential that may not be recognized by the market. Such
securities are selected solely for their capital growth potential; investment
income is not a consideration. Janus Capital Corporation serves as the Fund's
investment adviser.
JANUS WORLDWIDE FUND
The investment objective of the Fund is long-term growth of capital in a manner
consistent with preservation of capital The objective is pursued primarily
through investments in common stocks of foreign and domestic issuers. The Fund
may invest on a worldwide basis in companies and organizations of any size,
regardless of country or organization or place of principal business activity.
The Fund normally invests in issuers from at least five different countries.
Janus Capital Corporation serves as the Fund's investment adviser.
LIFEDESIGNS SERIES
LifeDesigns Series consists of five separate nondiversified funds each of which
is a separately managed nondiversified portfolio with its own investment
objective and policies. The objective of each of the Portfolios which is
fundamental, is to maximize total investment return (i.e. capital growth and
income) subject to investment restrictions and asset allocation policies. The
Portfolios will maximize total investment return as is specifically detailed in
the following objectives which are non-fundamental and can be changed without
approval of a Portfolio's shareholders.
- THE AGGRESSIVE PORTFOLIO
The investment objective of this Fund is to provide growth of capital by
investing in underlying funds which invest primarily in equity securities
("Equity Funds"). This Fund is generally appropriate for investors seeking
higher returns over an investment time horizon of at least 15 years and
having a higher tolerance for market fluctuations. Villanova SA Capital
Trust ("VSA") serves as the Fund's investment adviser.
- THE MODERATELY AGGRESSIVE PORTFOLIO
The investment objective of this Fund is to provide growth of capital by
investing primarily in Equity Funds. However, the Fund attempts to reduce
its volatility by also investing in the Nationwide Contract and Proprietary
Funds which also invest primarily in fixed income securities ("Bond
Funds"). This Fund is generally appropriate for moderate investors seeking
high returns over an investment time horizon of 15 years or for more
aggressive investors with an investment time horizon of 10 to 15 years. VSA
serves as the Fund's investment adviser.
- THE MODERATE PORTFOLIO
The investment objective of this Fund is to provide growth of capital by
investing primarily in Equity Funds, but will also invest a significant
percentage of its assets in the Nationwide Contract and in Bond Funds. This
Fund is generally appropriate for moderate investors seeking moderate
returns over an investment time horizon of between 10 and 15 years;
conservative investors with an investment time horizon of at least 15 years
or more; and more aggressive investors with an investment time horizon of 5
to 10 years. VSA serves as the Fund's investment adviser.
- THE MODERATELY CONSERVATIVE PORTFOLIO
The investment objective of this Fund is to provide primarily income and,
secondarily, long term growth of capital. This Fund will
40
<PAGE> 44
seek to meet its objectives by generally investing half of its assets in
Equity Funds with the remainder in the Nationwide Contract and Bond Funds.
This Fund is generally appropriate for moderate investors seeking lower
fluctuations in principal combined with some of the upside potential of
equity investments over an investment time horizon of between 5 and 10
years. This Fund is also generally appropriate for conservative investors
with an investment time horizon of between 10 and 15 years and more
aggressive investors with an investment time horizon of less than 5 years.
VSA serves as the Fund's investment adviser.
- THE CONSERVATIVE PORTFOLIO
The investment objective of this Fund is to provide primarily income and,
secondarily, long term growth of capital. This Fund will seek to meet its
objectives by primarily investing in a combination of the Nationwide
Contract and Bond Funds, with a smaller investment in Equity Funds. This
Fund is generally appropriate for investors seeking low fluctuations in
principal over an investment time horizon of less than 5 years, as well as
more conservative investors with an investment time horizon of between 5
and 10 years. VSA serves as the Fund's investment adviser.
MASSACHUSETTS INVESTORS GROWTH STOCK FUND - CLASS A
The investment objective of the Fund is long-term growth of capital and future
income rather than current income. Massachusetts Financial Services Company
serves as the fund's investment adviser.
MAS FUNDS FIXED INCOME PORTFOLIO
The investment objective of the Fund is to achieve above-average total return
over a market cycle of three to five years, consistent with reasonable risk, by
investing in a diversified portfolio of U.S. Government securities, corporate
bonds (including bonds rated below investment grade commonly referred to as
"junk bonds"), foreign fixed-income securities and mortgage-backed securities of
domestic issuers and other fixed-income securities. The portfolio's average
weighted maturity will ordinarily be greater than five years. Miller Anderson &
Sherrerd, L.L.P. serves as the Fund's investment adviser.
MFS(R) GROWTH OPPORTUNITIES FUND - CLASS A
The investment objective of the Fund is growth of capital. Dividend income, if
any, is incidental to the objective of capital growth. To achieve this
objective, a flexible approach toward types of companies as well as types of
securities is maintained by the Fund, depending upon the economic environment
and the relative attractiveness of the various securities markets. Massachusetts
Financial Services Company serves as the Fund's investment adviser.
MFS(R) HIGH INCOME FUND - CLASS A
The investment objective of the Fund is high current income by investing
priarily in a professionally managed diversified portfolio of fixed income
securities, some of which may involve equity features. Securities offering the
high current income sought by this Fund are ordinarily in the lower rating
categories of recongized rating agencies or are unrated and generally involve
greater volatility of price and risk of principal and income than securities in
the high rating categories. Capital growth, if any, is a consideration
incidental to the investment objective of high current income. Massachusetts
Financial Services Company serves as the Fund's investment adviser.
MORGAN STANLEY INSTITUTIONAL FUND, INC. - EQUITY GROWTH PORTFOLIO - CLASS B
The investment objective of the Portfolio is to seek long-term capital
appreciation by investing in growth-oriented equity securities of medium and
large capitalization companies. Equity securities include common and preferred
stocks, convertible securities and rights and warrants to purchase common
stocks. Under normal circumstances, the Portfolio will invest at least 65% of
the value of its total assets in equity
41
<PAGE> 45
securities. Morgan Stanley Dean Witter Investment Management, Inc. serves as the
Portfolio's investment adviser.
NATIONWIDE(R) BOND FUND - CLASS D
The invesment objective of the Fund is to seek as high a level of income as is
consistent with preservation of capital. The Fund invests primarily in
fixed-income securities and currently focuses on corporate debt investments and
U.S. Government mortgage-backed securities. Under normal market conditions, the
dollar-weighted average portfolio maturity of the Fund will be intermediate,
which is defined as being between six and ten years. Villanova Mutual Fund
Capital Trust serves as the Fund's investment adviser.
NATIONWIDE(R) FUND - CLASS D
The investment objective of the Fund is to seek total return through a flexible
combination of current income and capital appreciation. The Fund invests
primarily in common stocks, but also in convertible securities, other equity
securities, bonds and money market obligations. Villanova Mutual Fund Capital
Trust serves as the Fund's investment adviser.
NATIONWIDE(R) MONEY MARKET FUND - PRIME SHARES
The investment objective of the Fund is to seek as high a level of current
income as is consistent with the preservation of capital and maintenance of
liquidity. The Fund invests in high-quality money market instruments maturing in
397 days or less. Villanova Mutual Fund Capital Trust serves as the Fund's
investment adviser.
NATIONWIDE S&P 500(R) INDEX FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY,
CLASS Y)
The investment objective of the Fund is to provide investment results that
correspond to the price and yield performance of publicly traded common stocks
as represented by the Standard & Poor's 500 Composite Stock Price Index (the
"Index"). The Fund attempts to be fully invested at all times in stocks that
comprise the Index and stock index futures, and in any event, at least 80% of
the Fund's net assets will be invested in stocks comprising the Index.
Nationwide Advisory Services, Inc. serves as the Fund's investment adviser and
The Dreyfus Corporation is the Fund's sub-adviser.
"S&P 500(R)" has been licensed for use by Villanova Mutual Fund Capital Trust.
The Fund is not sponsored, endorsed, sold or promoted by Standard & Poor's and
Standard & Poor's makes no representation regarding the advisability of
investing in the Fund.
NATIONWIDE SEPARATE ACCOUNT TRUST - NATIONWIDE INCOME FUND
The Fund seeks to provide as high a level of income as is consistent with
reasonable concern for safety of principal. Under normal conditions, the Fund
invests primarily in investment grade corporate bonds and U.S. Government
Securities. Villanova Mutual Fund Capital Trust serves as the Fund's investment
adviser. The Fund is subadvised by NCM Capital Management Group, Inc. and Smith
Graham & Co. Asset Managers, L.P.
NATIONWIDE SEPARATE ACCOUNT TRUST - NATIONWIDE SMALL COMPANY FUND
The investment objective of the Fund is long-term growth of capital by investing
primarily in equity securities of domestic and foreign companies with market
capitalizations of less than $1 billion at the time of purchase. The
subadvisers, Dreyfus Corporation, Neuberger & Berman, L.P., Lazard Asset
Management and Strong Capital Management, Inc. were chosen because they utilize
a number of different investment styles when investing in small company stocks.
By utilizing different investment styles, the Fund's adviser, Villanova Mutual
Fund Capital Trust, hopes to increase prospects for investment return and to
reduce market risk and volatility.
NEUBERGER BERMAN GUARDIAN FUND, INC.
The Fund seeks capital appreciation through investments generally in
dividend-paying issues of established companies that its investment officers
believe are well managed. The
42
<PAGE> 46
emphasis of the Fund's investments is on common stock. The Fund diversifies its
holdings among different industries and different companies in light of
conditions prevailing at any given time. Current income is a secondary
objective. Neuberger Berman Management Incorporated serves as the Fund's
investment adviser.
NEUBERGER BERMAN MANHATTAN FUND, INC.
The Fund seeks capital appreciation without regard to income. It invests,
through its corresponding Portfolio, in securities believed to have the maximum
potential for long-term capital appreciation. It does not seek to invest in
securities that pay dividends or interest, and any such income is incidental.
The Portfolio expects to be almost fully invested in common stocks, often of
companies that may be temporarily out of favor in the market. Its aggressive
growth investment program involves greater risks and share price volatility than
programs that invest in more conservative securities. Neuberger Berman
Management Incorporated serves as the Fund's investment adviser.
NEUBERGER BERMAN PARTNERS TRUST
The investment objective of the Fund is to seek capital growth. The Fund invests
using a value-oriented approach to the selection of individual securities. The
Fund manager seeks capital growth through an investment approach that is
designed to increase capital with reasonable risk. Neuberger Berman Management,
Inc. serves as the Fund's investment adviser.
OPPENHEIMER GLOBAL FUND - CLASS A
The investment objective of the Fund is to seek capital appreciation. The Fund
emphasizes investment in foreign and domestic securities considered by the
Fund's investment manager to have appreciation possibilities, primarily common
stocks or securities having investment characteristics of common stocks (such as
convertible securities) of "growth-type" companies. As a matter of fundamental
policy, under normal market conditions, the Fund will invest its total assets in
securities of issuers traded in markets in at least three different countries
(which may include the United States). The portfolio may also emphasize
securities of cyclical industries and "special situations" when the Fund's
manager believes that they present opportunities for capital growth.
OppenheimerFunds, Inc. serves as the Fund's investment adviser.
PRESTIGE BALANCED FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is to provide a high total return from a
diversified portfolio of equity and fixed income securities. The Fund seeks to
provide a total return that approaches the total return of the universe of
equity securities of large and medium sized companies and that exceeds the
return typical of a portfolio of fixed income securities. Under normal market
conditions, the Fund will invest approximately 60% of its assets in equity
securities and 40% in fixed income securities. The equity securities will
primarily be securities of large and medium sized companies included in the
Standard & Poor's 500 Composite Stock Price Index, and the fixed income
securities will cover a range of fixed income sectors and securities, including
government, corporate, asset-backed and mortgage-backed securities. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and J.P.
Morgan Investment Management Inc. is the Fund's sub-adviser.
PRESTIGE INTERNATIONAL FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is capital appreciation. The Fund seeks to
accomplish its investment objective by investing primarily in equity securities
of non-United States companies that, in the opinion of its subadviser, are
inexpensively priced relative to the return on total capital or equity. The Fund
invests primarily in equity securities of non-United States companies. Under
normal market conditions, the Fund will invest at least 80% of the value of its
total assets in the equity securities of companies within at least three
different countries (not including the United
43
<PAGE> 47
States). Nationwide Advisory Services, Inc. serves as the Fund's investment
adviser and Lazard Asset Management is the Fund's sub-adviser.
PRESTIGE LARGE CAP GROWTH FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is long-term capital appreciation. The Fund
seeks to achieve its investment objective from a broadly diversified portfolio
of equity securities of large capitalization companies that are expected to have
better prospects for earnings growth than the growth rate of the general
domestic economy. Dividend income is a secondary objective. A large
capitalization company is a company with a market capitalization and industry
characteristics that are similar to companies in the Russell 1000(R) Growth
Index, which currently have market capitalizations that range from $1.4 billion
to $272 billion. Villanova Mutual Fund Capital Trust serves as the Fund's
investment adviser and Goldman Sachs Asset Management is the Fund's sub-adviser.
PRESTIGE LARGE CAP VALUE FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is to maximize total return, consisting of
both capital appreciation and current income. The Fund seeks to achieve its
investment objective by investing in U.S. equity securities that are currently
undervalued as determined by its subadviser. Under normal market conditions,
substantially all, but in no event less than 65% of the Fund's total assets will
be invested in equity securities of large capitalization U.S. companies,
including foreign companies whose securities are traded in the United States and
who comply with U.S. accounting standards. A large capitalization company is a
company with a market capitalization and industry characteristics that are
similar to companies in the Russell 1000(R) Value Index, which currently have
market capitalizations that range from $1.4 billion to $272 billion. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and Brinson
Partners, Inc. is the Fund's sub-adviser.
PRESTIGE SMALL CAP FUND - INSTITUTIONAL SERVICE CLASS (FORMERLY, CLASS Y)
The investment objective of the Fund is long-term capital appreciation. The Fund
seeks to accomplish its investment objective from a broadly diversified
portfolio of equity securities issued by U.S. companies that have small market
capitalizations. Under normal market conditions, the Fund will invest at least
65% of its total assets in equity securities of companies whose market
capitalizations at the time of investment do not exceed 110% of the largest
company in the Russell 2000(R) Small Stock Index; these companies currently have
market capitalizations that range from $222 million to $1.4 billion. Villanova
Mutual Fund Capital Trust serves as the Fund's investment adviser and INVESCO
Management & Research, Inc. serves as the Fund's sub-adviser, providing daily
portfolio management for the Fund.
PUTNAM INTERNATIONAL GROWTH FUND - CLASS A
The investment objective of the Fund is to seek capital appreciation by
investing mostly in common stocks of companies outside the United States. The
investment adviser, Putnam Investment Management, Inc. ("Putnam Management")
first selects countries and industries that it believes are attractive. Putnam
Management then seeks stock offering opportunity for gain, with primary
investment in mid-size and large companies, although Putnam Management may
invest in companies of any size. Although emphasis is based upon developed
countries, investments may also be made in companies located in developing
markets, also known as emerging markets.
PUTNAM INVESTORS FUND - CLASS A
The investment objective of the Fund is long-term growth of capital and any
increased income resulting from such growth. The Fund is designed for investors
seeking long-term growth of capital from a portfolio consisting
44
<PAGE> 48
primarily of common stocks. The Fund's management emphasizes investment in
quality growth stocks. Putnam Investment Management, Inc. serves as the Fund's
investment adviser.
PUTNAM VOYAGER FUND - CLASS A
The investment objective of the Fund is capital appreciation. The Fund invests
primarily in common stocks believed by the Fund's Investment Manager, Putnam
Management, to have potential for capital appreciation significantly greater
than the market average. The Fund is designed for investors willing to assume
above-average risk in return for above-average capital growth potential. Putnam
Investment Management, Inc. serves as the Fund's investment adviser.
SEI INDEX FUNDS - S&P 500 INDEX PORTFOLIO
The S&P 500 Index Portfolio seeks to provide investment results that correspond
to the aggregate price and dividend performance of the securities in the
Standard & Poor's 500 Composite Stock Price Index which is comprised of 500
selected common stocks, most of which are listed on the New York Stock Exchange.
The investment objective is a fundamental policy of the portfolio. There can be
no assurance that the Portfolio will achieve its investment objective. SEI Fund
Management serves as the Fund's investment adviser.
SELIGMAN GROWTH FUND, INC. - CLASS A
The investment objective of the Fund is longer-term growth in capital value and
an increase in future income. Fund assets have been invested primarily in common
stocks with the inherent investment risks tempered by portfolio diversification.
J. & W. Seligman & Co., Incorporated serves as the Fund's investment adviser.
TEMPLETON FOREIGN FUND - CLASS A
The investment objective of the Fund is long-term capital growth through a
flexible policy of investing in stocks and debt obligations of companies and
governments outside the United States. Any income realized will be incidental.
Templeton Investment Counsel, Inc. serves as the Fund's investment adviser.
T. ROWE PRICE INTERNATIONAL STOCK FUND(R)
The Fund's objective is long-term growth of capital through investments
primarily in common stocks of established, non-U.S. companies. T. Rowe Price
Associates, Inc. serves as the Fund's investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE TO NEW PLANS ESTABLISHED
ON OR AFTER JUNE 30, 1998:
FIDELITY CONTRAFUND(R)
The investment objective of the Fund is capital appreciation by investing in
securities that its manager believes are undervalued due to an overly
pessimistic appraisal by the public. Although the Fund will usually be invested
primarily in common stocks and securities convertible into common stock, the
percentage of its assets invested in other securities may vary. Fidelity
Management & Research Company serves as the Fund's investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE TO NEW CONTRACTS ISSUED ON
OR AFTER OCTOBER 1, 1997:
FIDELITY MAGELLAN (R) FUND
The investment objective of the Fund is capital appreciation by investing
primarily in common stock and securities convertible into common stock. The Fund
may also invest in foreign securities, which involves additional risks. The Fund
may also invest in stock index futures and options both of which can be volatile
investments. Fidelity Management & Research Company serves as the Fund's
investment adviser.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE TO ALL CONTRACT OWNERS
ON OR AFTER JANUARY 1, 1994:
THE BOND FUND OF AMERICA(SM), INC.
The Fund's investment objective is to provide as high a level of current income
as is consistent with the preservation of capital. The Fund
45
<PAGE> 49
invests substantially all of its assets in marketable corporate debt securities,
U.S. Government securities, mortgage-related securities, other asset-backed
securities and cash or money market instruments. Normally, at least 65% of the
Fund's assets will be invested in bonds.
THE GROWTH FUND OF AMERICA(R), INC.
The investment objective of the Fund is growth of capital. The realization of
current income will not be a consideration. The Fund seeks to achieve its
objective by investing in a diversified portfolio consisting primarily of common
stocks. However, assets may also be held in securities convertible into common
stocks, cash or cash equivalents, straight debt securities (including U.S.
Government securities), or nonconvertible preferred stocks. The Fund will
maintain at least 65% of the value of its total assets in growth-type securities
under normal market conditions.
THE INCOME FUND OF AMERICA(R), INC.
The investment objective is to emphasize current income while secondarily
striving to attain capital growth. The Fund believes that a portfolio with
relatively high current income can also generate growth of capital.
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER AUGUST 1, 1993:
DELAWARE GROUP DECATUR FUND, INC. - DECATUR INCOME FUND - INSTITUTIONAL CLASS
The investment Objective of the Fund is to achieve the highest possible current
income by investing primarily in common stocks that provide the potential for
income and capital appreciation without undue risk to principal.
THE FOLLOWING UNDERLYING MUTUAL FUND IS NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER JANUARY 1, 1987:
FIDELITY CAPITAL & INCOME FUND
The investment objective of the Fund is to seek to provide a combination of
income and capital growth by investing primarily in debt instruments and common
and preferred stocks, with a focus on lower-quality debt securities and
securities of companies with uncertain financial positions.
Effective on and after May 1, 1991, Nationwide shall no longer permit contract
owners or participants to make additional purchase payments or to exchange
contract values into the Fidelity Capital & Income Fund (formerly Fidelity High
Income Fund) sub-account. However, contract values held in the Fidelity Capital
& Income Fund (formerly Fidelity High Income Fund) sub-account as of May 1, 1991
may continue to be invested in that sub-account. Unless Nationwide is notified
otherwise, any purchase payments or exchanges which the contract owner or
participants directs Nationwide to invest in the Fidelity Capital & Income Fund
(formerly Fidelity High Income Fund) sub-account on and after May 1, 1991 shall
instead be automatically invested in the Nationwide Money Market Fund
sub-account.
Nationwide has determined that further investment in the Fidelity Capital &
Income Fund sub-account is not in the best interests of the contract owners and
participants in view of the Fund's adoption, effective for shares purchased on
and after February 1, 1991, of a redemption fee equal to 1.5% of the net asset
value of any Fund shares redeemed which are held less than twelve months. Any
redemption fees which the Fund may assess against Fund shares held by Nationwide
in the variable account which were purchased from February 1, 1991 to May 1,1991
shall be paid by Nationwide from surplus and shall not be paid, directly or
indirectly, by contract owners, participants or the variable account.
THE FOLLOWING UNDERLYING MUTUAL FUNDS ARE NOT AVAILABLE FOR NEW CONTRACTS ISSUED
ON OR AFTER MAY 1, 2000:
AMERICAN CENTURY: INTERNATIONAL DISCOVERY - INVESTOR CLASS
The investment objective of the Fund is capital growth by investing primarily in
an internationally diversified portfolio of equity
46
<PAGE> 50
securities of issuers that meet certain fundamental and technical standards of
selection (relating primarily to acceleration of earnings and revenues). The
Fund will invest its assets primarily in equity securities of small foreign
issuers (those issuers having, at the time of investment, a market
capitalization of less than U.S. $1 billion or a public float of less than U.S.
$500 million). The "public float" of an issuer is defined as the aggregate
market value of the issuer's outstanding securities held by non-affiliates of
the issuer. The Fund may invest up to 50% of its assets in securities of issuers
in emerging market countries. Due to the significant risks associated with the
Fund's investment strategy, an investment in the Fund may not be appropriate for
all investors. American Century Investment Management, Inc. serves as the Fund's
investment adviser.
WARBURG PINCUS EMERGING GROWTH FUND - COMMON CLASS
The investment objective of the Fund is maximum capital appreciation by
investing in equity securities of small-to-medium sized companies in the United
States with emerging or renewed growth potential. Credit Suisse Asset Management
LLC serves as the Fund's investment adviser.
47
<PAGE> 51
APPENDIX B
The information shown below illustrates different accumulation unit values for
each tier (current as of December 31 of the preceding year.) Additional
information is maintained in the Statement of Additional Information for this
prospectus. A Statement of Additional Information, as well as specific
information concerning the accumulation unit values for any particular plan, may
be obtained by calling Nationwide at 1-800-545-4730 or by writing to P.O. Box
16766, Columbus, Ohio 43216.
CONDENSED FINANCIAL INFORMATION
ACCUMULATION UNIT VALUES
(FOR AN ACCUMULATION UNIT OUTSTANDING THROUGHOUT THE PERIOD)
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE........................................................................0.95%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM 2.731993 3.925761 43.70% 0 1999
Constellation Fund - Institutional 2.309709 2.731993 18.28% 0 1998
Class 2.055366 2.309709 12.37% 4,142,513 1997
1.776138 2.055366 15.72% 6,309,167 1996
1.316836 1.776138 34.88% 3,214,050 1995
1.305850 1.316836 0.84% 1,607,538 1994
1.120568 1.305850 16.53% 1,341,351 1993
1.000000 1.120568 12.06% 0 1992
American Century: Growth - 7.915964 10.560508 33.41% 9,773,380 1999
Investor Class 5.842997 7.915964 35.48% 9,702,654 1998
4.562802 5.842997 28.06% 23,886,079 1997
4.005400 4.562802 13.92% 12,224,812 1996
3.359891 4.005400 19.21% 37,335,163 1995
3.443124 3.359891 -2.42% 41,134,943 1994
3.350122 3.443124 2.78% 51,977,134 1993
3.533694 3.350122 -5.19% 58,356,370 1992
2.110582 3.533694 67.43% 53,923,483 1991
2.216085 2.110582 -4.76% 67,311,152 1990
American Century: Select - 2.766712 3.349715 21.07% 64,193 1999
Investor Class 2.058976 2.766712 34.37% 50,420 1998
1.572461 2.058976 30.94% 1,111,408 1997
1.331631 1.572461 18.09% 41,014 1996
1.095899 1.331631 21.51% 1,254,199 1995
1.202996 1.095899 -8.90% 194,231 1994
1.059075 1.202996 13.59% 386,750 1993
1.118927 1.059075 -5.35% 383,487 1992
1.000000 1.118927 11.89% 2,950 1991
</TABLE>
48
<PAGE> 52
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century:Ultra - Investor 3.364568 4.714664 40.13% 72,862,901 1999
Class 2.524538 3.364568 33.27% 70,804,264 1998
2.069865 2.524538 21.97% 132,438,228 1997
1.835553 2.069865 12.77% 70,399,683 1996
1.345904 1.835553 36.38% 105,140,475 1995
1.409710 1.345904 -4.53% 88,713,416 1994
1.168340 1.409710 20.66% 68,551,255 1993
1.164722 1.168340 0.31% 33,483,411 1992
1.000000 1.164722 16.47% 11,412 1991
The Bond Fund of America(SM), Inc. 2.429862 2.461916 1.32% 3,406,302 1999
2.332586 2.429862 4.17% 4,103,842 1998
2.155739 2.332586 8.20% 5,345,075 1997
2.039710 2.155739 5.69% 3,518,054 1996
1.741422 2.039710 17.13% 7,434,474 1995
1.850918 1.741422 -5.92% 7,880,903 1994
1.637181 1.850918 13.06% 8,560,956 1993
1.484255 1.637181 10.30% 6,077,266 1992
1.238222 1.484255 19.87% 5,128,071 1991
1.208717 1.238222 2.44% 5,102,901 1990
Davis New York Venture Fund - 2.537156 2.955329 16.48% 0 1999
Class A 2.232520 2.537156 13.65% 0 1998
1.686019 2.232520 32.41% 0 1997
1.345221 1.686019 25.33% 1,180,098 1996
0.966146 1.345221 39.24% 1,771,764 1995
0.994508 0.966146 -2.85% 720,917 1994
1.000000 0.994508 -0.55% 5,626 1993
Delaware Group Decatur Fund, Inc. 3.200994 3.061228 -4.37% 48,219 1999
- - Decatur Income Fund 2.935219 3.200994 9.05% 68,865 1998
Institutional Class 2.280210 2.935219 28.73% 96,261 1997
1.910384 2.280210 19.36% 78,578 1996
1.449372 1.910384 31.81% 100,636 1995
1.473401 1.449372 -1.63% 104,006 1994
1.289480 1.473401 14.26% 281,500 1993
1.196471 1.289480 7.77% 162,528 1992
0.991871 1.196471 20.63% 106,856 1991
1.142606 0.991871 -13.19% 16,158 1990
Dreyfus Cash Management - 1.266733 1.321023 4.29% 0 1999
Class A* 1.212149 1.266733 4.50% 0 1998
1.159356 1.212149 4.55% 231,535 1997
1.110383 1.159356 4.41% 618,162 1996
1.057458 1.110383 5.00% 2,561,760 1995
1.025704 1.057458 3.10% 2,324,960 1994
1.003770 1.025704 2.19% 25,763 1993
1.000000 1.003770 0.38% 0 1992
</TABLE>
*The 7-day yield on the Dreyfus Cash Management - Class A as of December 31,
1999 was 4.68%.
49
<PAGE> 53
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
The Dreyfus Premier Third Century 4.554448 5.872109 28.93% 40,022 1999
Fund, Inc. - Class Z 3.532278 4.554448 28.94% 42,486 1998
2.756438 3.532278 28.15% 10,221,038 1997
2.238323 2.756438 23.15% 3,824,949 1996
1.663803 2.238323 34.53% 6,501,520 1995
1.814915 1.663803 -8.33% 6,965,653 1994
1.740666 1.814915 4.27% 8,765,880 1993
1.723855 1.740666 0.98% 9,137,872 1992
1.259983 1.723855 36.82% 5,165,976 1991
1.228377 1.259983 2.57% 4,118,236 1990
Dreyfus S&P 500 Index Fund 1.544833 1.840155 19.12% 33,167,813 1999
1.217658 1.544833 26.87% 24,343,259 1998
1.000000 1.217658 21.77% 8,503,701 1997
Evergreen Income and Growth Fund - 2.380651 2.744107 15.27% 575,792 1999
Class Y 2.422617 2.380651 -1.73% 713,985 1998
1.947502 2.422617 24.40% 1,909,226 1997
1.741651 1.947502 11.82% 1,146,375 1996
1.419467 1.741651 22.70% 3,257,653 1995
1.531292 1.419467 -7.30% 4,439,096 1994
1.368966 1.531292 11.86% 7,948,202 1993
1.256090 1.368966 8.99% 6,846,744 1992
1.031024 1.256090 21.83% 7,328,719 1991
1.110904 1.031024 -7.19% 13,632,891 1990
Federated U.S. Government 1.300471 1.281395 -1.47% 3,114,074 1999
Securities Fund: 2-5 Years - 1.214470 1.300471 7.08% 2,986,605 1998
Institutional Shares 1.144380 1.214470 6.12% 2,077,904 1997
1.115461 1.144380 2.59% 1,214,422 1996
0.991595 1.115461 12.49% 1,877,483 1995
1.020623 0.991595 -2.84% 1,280,899 1994
1.000000 1.020623 2.06% 696,793 1993
Fidelity Asset Manager(TM) 1.744805 1.963180 12.52% 3,890,385 1999
1.517270 1.744805 15.00% 3,453,740 1998
1.252704 1.517270 21.12% 4,375,583 1997
1.121926 1.252704 11.66% 2,611,685 1996
0.958564 1.121926 17.04% 5,838,128 1995
1.036089 0.958564 -7.48% 3,916,306 1994
1.000000 1.036089 3.61% 79,714 1993
Fidelity Capital & Income Fund 4.829318 5.414988 12.13% 73,052 1999
4.654233 4.829318 3.76% 86,372 1998
4.096488 4.654233 13.62% 294,820 1997
3.712491 4.096488 10.34% 125,230 1996
3.210584 3.712491 15.63% 463,343 1995
3.397953 3.210584 -5.51% 561,985 1994
2.746533 3.397953 23.72% 925,953 1993
2.165417 2.746533 26.84% 1,032,492 1992
1.684020 2.165417 28.59% 1,471,867 1991
1.768220 1.684020 -4.76% 4,160,164 1990
</TABLE>
50
<PAGE> 54
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Fidelity Contrafund(R) 3.269491 4.050734 23.89% 69,533,635 1999
2.509557 3.269491 30.28% 67,920,295 1998
2.059778 2.509557 21.84% 99,795,570 1997
1.705419 2.059778 20.78% 56,288,590 1996
1.263308 1.705419 35.00% 62,585,233 1995
1.289799 1.263308 -2.05% 40,927,857 1994
1.072342 1.289799 20.28% 14,514,807 1993
1.000000 1.072342 7.23% 186,872 1992
Fidelity Equity-Income Fund 7.691828 8.164209 6.14% 16,073,617 1999
6.900916 7.691828 11.46% 17,905,060 1998
5.359692 6.900916 28.76% 42,604,023 1997
4.471070 5.359692 19.87% 18,493,235 1996
3.424310 4.471070 30.57% 35,553,370 1995
3.448520 3.424310 -0.70% 34,056,352 1994
2.869860 3.448520 20.16% 41,743,016 1993
2.526472 2.869860 13.59% 36,410,831 1992
1.971024 2.526472 28.18% 40,239,204 1991
2.314450 1.971024 -14.84% 65,533,870 1990
Fidelity Growth & Income Portfolio 3.280585 3.588034 9.37% 0 1999
2.581177 3.280585 27.10% 1,124 1998
2.001775 2.581177 28.94% 3,435,213 1997
1.683805 2.001775 18.88% 4,201,944 1996
1.255568 1.683805 34.11% 4,155,413 1995
1.239420 1.255568 1.30% 2,808,994 1994
1.046808 1.239420 18.40% 1,219,293 1993
1.000000 1.046808 4.68% 85,896 1992
Fidelity Magellan(R) Fund 3.175365 3.901714 22.87% 51,113,926 1999
2.398961 3.175365 32.36% 49,762,526 1998
1.913110 2.398961 25.40% 95,356,893 1997
1.729361 1.913110 10.63% 56,756,036 1996
1.275955 1.729361 35.53% 92,049,788 1995
1.311856 1.275955 -2.74% 68,044,510 1994
1.062405 1.311856 23.48% 43,203,753 1993
1.000000 1.062405 6.24% 10,591,374 1992
The Growth Fund of America(R), Inc. 4.415588 6.372783 44.32% 3,020,836 1999
3.382686 4.415588 30.53% 2,635,898 1998
2.691979 3.382686 25.66% 4,016,452 1997
2.366626 2.691979 13.75% 2,478,693 1996
1.840658 2.366626 28.57% 6,716,573 1995
1.857739 1.840658 -0.92% 5,646,915 1994
1.638011 1.857739 13.41% 5,353,392 1993
1.539692 1.638011 6.39% 3,840,212 1992
1.144684 1.539692 34.51% 1,551,711 1991
1.205372 1.144684 -5.03% 105,320 1990
</TABLE>
51
<PAGE> 55
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
The Income Fund of America(R), Inc. 2.835318 2.822987 -0.43% 4,114,668 1999
2.614863 2.835318 8.43% 4,569,474 1998
2.160929 2.614863 21.01% 7,017,085 1997
1.893327 2.160929 14.13% 5,291,391 1996
1.480756 1.893327 27.86% 8,645,811 1995
1.533299 1.480756 -3.43% 7,829,528 1994
1.357846 1.533299 12.92% 7,258,704 1993
1.223786 1.357846 10.95% 3,016,773 1992
0.998504 1.223786 22.56% 631,336 1991
1.000000 0.998504 -0.15% 0 1990
INVESCO Equity Income Fund 2.376817 2.655967 11.74% 7,365,327 1999
(formerly, INVESCO Industrial 2.102364 2.376817 13.05% 7,930,211 1998
Income Fund) 1.678513 2.102364 25.25% 10,884,376 1997
1.451889 1.678513 15.61% 7,428,110 1996
1.151056 1.451889 26.14% 10,632,818 1995
1.208959 1.151056 -4.79% 8,239,738 1994
1.045472 1.208959 15.64% 3,039,640 1993
1.000000 1.045472 4.55% 17,289 1992
Janus Fund 2.681244 3.907654 45.74% 46,328,151 1999
1.948907 2.681244 37.58% 28,922,213 1998
1.603290 1.948907 21.56% 33,709,518 1997
1.353271 1.603290 18.48% 15,851,766 1996
1.055481 1.353271 28.21% 13,522,743 1995
1.077425 1.055481 -2.04% 7,345,306 1994
1.000000 1.077425 7.74% 2,969,768 1993
Janus Worldwide Fund 1.241260 2.021004 62.82% 1,050,360 1999
1.000000 1.241260 24.13% 931,009 1998
MAS Funds Fixed Income Portfolio 1.413926 1.391983 -1.55% 2,844,269 1999
1.335173 1.413926 5.90% 2,982,430 1998
1.229760 1.335173 8.57% 1,990,827 1997
1.156444 1.229760 6.34% 718,247 1996
0.980782 1.156444 17.91% 366,064 1995
1.000000 0.980782 -1.92% 31,751 1994
Massachusetts Investors Growth 22.143725 30.435351 37.44% 171,618 1999
Stock Fund - Class A 15.968069 22.143725 38.68% 164,187 1998
10.880822 15.968069 46.75% 450,089 1997
8.942612 10.880822 21.67% 164,786 1996
7.034148 8.942612 27.13% 551,377 1995
7.613442 7.034148 -7.61% 604,020 1994
6.714892 7.613442 13.38% 891,831 1993
6.368639 6.714892 5.44% 914,534 1992
4.352449 6.368639 46.32% 1,056,566 1991
4.612779 4.352449 -5.64% 1,577,501 1990
</TABLE>
52
<PAGE> 56
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
MFS(R) Growth Opportunities Fund - 11.531693 15.172145 31.57% 392,659 1999
Class A 9.012670 11.531693 27.95% 419,655 1998
7.380232 9.012670 22.12% 3,078,940 1997
6.114190 7.380232 20.71% 843,158 1996
4.589533 6.114190 33.22% 3,824,999 1995
4.834037 4.589533 -5.06% 4,635,532 1994
4.200054 4.834037 15.09% 9,303,110 1993
3.936838 4.200054 6.69% 10,600,796 1992
3.246855 3.936838 21.25% 13,413,614 1991
3.427388 3.246855 -5.27% 23,047,089 1990
MFS(R) High Income Fund - 6.172749 6.542182 5.98% 142,768 1999
Class A 6.168371 6.172749 0.07% 146,644 1998
5.518160 6.168371 11.78% 633,922 1997
4.949752 5.518160 11.48% 164,395 1996
4.265493 4.949752 16.04% 806,763 1995
4.422523 4.265493 -3.55% 877,250 1994
3.739642 4.422523 18.26% 1,068,154 1993
3.225557 3.739642 15.94% 1,036,507 1992
2.186959 3.225557 47.94% 1,186,991 1991
2.651605 2.186959 -17.52% 2,159,639 1990
Nationwide(R) Bond Fund - 2.325952 2.239633 -3.71% 73,080 1999
Class D 2.166981 2.325952 7.34% 74,419 1998
2.001472 2.166981 8.27% 51,355 1997
1.991196 2.001472 0.52% 26,395 1996
1.619166 1.991196 22.98% 92,001 1995
1.778765 1.619166 -8.97% 51,492 1994
1.621957 1.778765 9.67% 148,222 1993
1.516560 1.621957 6.95% 197,350 1992
1.309926 1.516560 15.77% 363,511 1991
1.222004 1.309926 7.19% 420,858 1990
Nationwide(R) Fund - Class D 26.722904 26.409607 -1.17% 245,623 1999
20.697282 26.722904 29.11% 266,191 1998
14.964379 20.697282 38.31% 3,635,254 1997
12.191058 14.964379 22.75% 1,316,219 1996
9.468045 12.191058 28.76% 2,905,460 1995
9.502760 9.468045 -0.37% 3,036,527 1994
8.985447 9.502760 5.76% 3,690,273 1993
8.810680 8.985447 1.98% 4,218,392 1992
6.830443 8.810680 28.99% 3,906,633 1991
6.875188 6.830443 -0.65% 3,792,110 1990
</TABLE>
53
<PAGE> 57
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Nationwide(R) Growth Fund - 4.725203 5.459300 15.54% 869,228 1999
Class D 3.854877 4.725203 22.58% 945,925 1998
3.083008 3.854877 25.04% 2,582,538 1997
2.667201 3.083008 15.59% 1,156,065 1996
2.092009 2.667201 27.49% 3,668,270 1995
2.081399 2.092009 0.51% 3,759,425 1994
1.887524 2.081399 10.27% 5,928,120 1993
1.792687 1.887524 5.29% 5,747,753 1992
1.330199 1.792687 34.77% 5,108,711 1991
1.452973 1.330199 -8.45% 7,279,598 1990
Nationwide(R) Money Market - Prime 3.126448 3.241560 3.68% 203,439 1999
Shares* 3.003821 3.126448 4.08% 239,031 1998
2.884848 3.003821 4.12% 18,830,414 1997
2.774433 2.884848 3.98% 7,935,176 1996
2.654661 2.774433 4.51% 20,350,850 1995
2.583387 2.654661 2.76% 18,028,497 1994
2.542721 2.583387 1.60% 20,122,594 1993
2.487178 2.542721 2.23% 22,067,362 1992
2.377082 2.487178 4.63% 33,612,374 1991
2.224557 2.377082 6.86% 48,721,235 1990
Neuberger Berman Guardian Fund, 1.617561 1.737813 7.43% 0 1999
Inc. 1.595471 1.617561 1.38% 0 1998
1.365700 1.595471 16.82% 614,486 1997
1.169665 1.365700 16.76% 0 1996
1.000000 1.696655 16.97% 0 1995
Neuberger Berman Manhattan Fund, 3.628224 5.418154 49.33% 70.169 1999
Inc. 3.146989 3.628224 15.29% 71,086 1998
2.458922 3.146989 27.98% 39,662 1997
2.259932 2.458922 8.81% 119,922 1996
1.741549 2.259932 29.77% 394,751 1995
1.823796 1.741549 -4.51% 406,054 1994
1.673695 1.823796 8.97% 317,549 1993
1.434738 1.673695 16.66% 56,526 1992
1.106565 1.434738 29.66% 7,124 1991
1.214940 1.106565 -8.92% 0 1990
Putnam Investors Fund - Class A 24.311753 31.341504 28.92% 537,267 1999
18.110411 24.311753 34.24% 571,765 1998
13.594501 18.110411 33.22% 2, 476,574 1997
11.305164 13.594501 20.25% 713,005 1996
8.297318 11.305164 36.25% 3,422,356 1995
8.652501 8.297318 -4.10% 3,674,131 1994
7.410567 8.652501 16.76% 4,311,483 1993
6.934213 7.410567 6.87% 4,294,647 1992
5.445269 6.934213 27.34% 4,745,398 1991
5.654203 5.445269 -3.70% 6,112,297 1990
</TABLE>
*The 7-day yield on the Nationwide Money Market Fund - Prime Shares as of
December 31, 1999 was 4.36%.
54
<PAGE> 58
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Putnam Voyager Fund - Class A 4.715165 7.292508 54.66% 26,953,260 1999
3.837109 4.715165 22.88% 25,813,706 1998
3.074879 3.837109 24.79% 35,911,119 1997
2.752130 3.074879 11.73% 18,151,250 1996
1.982311 2.752130 38.83% 21,036,155 1995
1.992379 1.982311 -0.51% 14,803,070 1994
1.698751 1.992379 17.28% 11,820,145 1993
1.563079 1.698751 8.68% 7,640,204 1992
1.049811 1.563079 48.89% 4,622,048 1991
1.000000 1.049811 4.98% 290,518 1990
SEI Index Funds - S&P 500 Index 4.964488 5.941224 19.67% 341,359 1999
Portfolio 3.905079 4.964488 27.13% 259,012 1998
2.962497 3.905079 31.82% 3,892,401 1997
2.439184 2.962497 21.45% 524,069 1996
1.792835 2.439184 36.05% 1,072,618 1995
1.792223 1.792835 0.03% 722,997 1994
1.647325 1.792223 8.80% 509,498 1993
1.548965 1.647325 6.35% 257,368 1992
1.203412 1.548965 28.71% 121,485 1991
1.254560 1.203412 -4.08% 509 1990
Seligman Growth Fund, Inc. - Class 16.801408 21.680277 29.04% 82,517 1999
A 12.541848 16.801408 33.96% 87,555 1998
10.720312 12.541848 16.99% 227,045 1997
8.934609 10.720312 19.99% 105,249 1996
7.020585 8.934609 27.26% 277,527 1995
7.370495 7.020585 -4.75% 299,685 1994
6.989639 7.370495 5.45% 513,220 1993
6.340967 6.989639 10.23% 555,163 1992
4.611005 6.340967 37.52% 685,494 1991
4.910683 4.611005 -6.10% 977,515 1990
T. Rowe Price International Stock 2.120702 2.827534 33.33% 7,563,383 1999
Fund(R) 1.843420 2.120702 15.04% 7,543,129 1998
1.812062 1.843420 1.73% 16,365,466 1997
1.577274 1.812062 14.89% 8,220,403 1996
1.429428 1.577274 10.34% 22,425,072 1995
1.454045 1.429428 -1.69% 18,673,315 1994
1.047655 1.454045 38.79% 11,658,962 1993
1.095728 1.047655 -4.39% 4,370,293 1992
0.954695 1.095728 14.77% 2,239,924 1991
1.000000 0.954695 -4.53% 441,232 1990
Templeton Foreign Fund - Class A 1.765910 2.435118 37.90% 0 1999
1.874393 1.765910 -5.79% 0 1998
1.774294 1.874393 5.64% 43,044,777 1997
1.518092 1.774294 16.08% 27,327,650 1996
1.378759 1.518092 10.11% 32,915,364 1995
1.387073 1.378759 -0.60% 25,358,639 1994
1.023491 1.387073 35.52% 6,636,629 1993
1.000000 1.023491 2.35% 0 1992
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
55
<PAGE> 59
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE........................................................................0.90%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century: Growth - 7.924525 10.577210 33.47% 3,375,777 1999
Investor Class 5.846396 7.924525 35.55% 3,294,508 1998
4.563176 5.846396 28.12% 3,903,936 1997
4.005400 4.563176 0.18% 4,398,109 1996
American Century: Ultra - Investor 3.368207 4.722120 40.20% 22,045,290 1999
Class 2.526007 3.368207 33.34% 19,448,936 1998
2.070035 2.526007 22.03% 19,732,726 1997
1.835553 2.070035 0.69% 18,056,950 1996
The Bond Fund of America(sm) Inc. 2.432540 2.465874 1.37% 948,592 1999
2.333980 2.432540 4.22% 883,859 1998
2.155938 2.333980 8.26% 844,897 1997
2.128763 2.155938 1.28% 1,040,496 1996
Davis New York Venture Fund - 2.539900 2.960004 16.54% 116,577 1999
Class A 2.233818 2.539900 13.70% 137,969 1998
1.686157 2.233818 32.48% 199,664 1997
1.580715 1.686157 6.67% 133,664 1996
Delaware Group Decatur Fund, Inc. 3.204456 3.066072 -4.32% 22,390 1999
- - Decatur Income Fund - 2.936925 3.204456 9.11% 24,175 1998
Institutional Class 2.280397 2.936925 28.79% 15,400 1997
2.186556 2.280397 4.29% 13,782 1996
Dreyfus Cash Management Fund - 1.268119 1.321023 4.17% 138,879 1999
Class A* 1.212863 1.268119 4.56% 192,356 1998
1.159453 1.212863 4.61% 231,535 1997
1.151569 1.159453 0.68% 377,565 1996
Dreyfus S&P 500 Index Fund 1.546121 1.842610 19.18% 8,433,585 1999
1.218064 1.546121 26.93% 6,127,205 1998
1.000000 1.218064 21.81% 3,436,138 1997
The Dreyfus Premier Third Century 4.559374 5.881397 29.00% 26,205 1999
Fund, Inc. - Class Z 3.534332 4.559374 29.00% 31,247 1998
2.756663 3.534332 28.21% 1,286,026 1997
2.699982 2.756663 2.10% 967,536 1996
Evergreen Income and Growth Fund - 2.383227 2.748449 15.32% 203,892 1999
Class Y 2.424026 2.383227 -1.68% 234,506 1998
1.947661 2.424026 24.46% 388,299 1997
1.875063 1.947661 3.87% 470,751 1996
Federated U.S. Government 1.301894 1.283445 -1.42% 1,073,320 1999
Securities Fund: 2-5 Years - 1.215186 1.301894 7.14% 748,333 1998
Institutional Shares 1.144477 1.215186 6.18% 323,646 1997
1.140767 1.144477 0.33% 342,284 1996
Fidelity Asset Manager(TM) 1.746693 1.966286 12.57% 881,771 1999
1.518153 1.746693 15.05% 666,704 1998
1.252806 1.518153 21.18% 633,745 1997
1.214007 1.252806 3.20% 671,795 1996
</TABLE>
*The 7-day yield on the Dreyfus Cash Management - Class A as of December 31,
1999 was 4.73%.
56
<PAGE> 60
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Fidelity Capital & Income Fund 4.834602 5.423649 12.18% 31,159 1999
4.656974 4.834602 3.81% 26,735 1998
4.096833 4.656974 13.67% 36,724 1997
4.015008 4.096833 2.04% 77,649 1996
Fidelity Contrafund(R) 3.273028 4.057141 23.96% 18,837,816 1999
2.511017 3.273028 30.35% 15,599,501 1998
2.059947 2.511017 21.90% 15,968,503 1997
1.953469 2.059947 5.45% 13,231,488 1996
Fidelity Equity-Income Fund 7.700147 8.177127 6.19% 5,697,594 1999
6.904928 7.700147 11.52% 6,047,814 1998
5.360130 6.904928 28.82% 7,169,293 1997
5.110007 5.360130 4.89% 6,443,316 1996
Fidelity Magellan(R) Fund 3.178799 3.907885 22.94% 12,438,056 1999
2.400356 3.178799 32.43% 12,014,518 1998
1.913267 2.400356 25.46% 11,589,048 1997
1.831563 1.913267 4.46% 11,002,403 1996
The Growth Fund of America(R), Inc. 4.420363 6.382860 44.40% 886,629 1999
3.384653 4.420363 30.60% 614,458 1998
2.692199 3.384653 25.72% 650,012 1997
2.519027 2.692199 6.87% 553,730 1996
The Income Fund of America(R), Inc. 2.838385 2.827454 -0.39% 1,042,018 1999
2.616384 2.838385 8.49% 1,108,491 1998
2.161106 2.616384 21.07% 1,325,543 1997
2.072384 2.161106 4.28% 1,137,681 1996
INVESCO Equity Income Fund 2.379388 2.660169 11.80% 1,747,453 1999
(formerly, INVESCO Industrial 2.103587 2.379388 13.11% 1,694,071 1998
Income Fund) 1.678650 2.103587 25.31% 1,917,268 1997
1.613178 1.678650 4.06% 1,639,958 1996
Janus Fund 2.684144 3.913834 45.81% 13,891,900 1999
1.950041 2.684144 37.65% 6,455,407 1998
1.603421 1.950041 21.62% 5,595,764 1997
1.550403 1.603421 3.42% 4,109,624 1996
MAS Funds Fixed Income Portfolio 1.415456 1.394187 -1.50% 356,213 1999
1.335950 1.415456 5.95% 320,011 1998
1.229861 1.335950 8.63% 296,496 1997
1.215745 1.229861 1.16% 193,871 1996
MFS(R) Growth Opportunities Fund - 11.544167 15.196145 31.63% 278,945 1999
Class A 9.017913 11.544167 28.01% 286,467 1998
7.380837 9.017913 22.18% 317,319 1997
7.065737 7.380837 4.46% 361,634 1996
MFS(R) High Income Fund - 6.179502 6.552645 6.04% 20,059 1999
Class A 6.172004 6.179502 0.12% 18,550 1998
5.518624 6.172004 11.84% 25,730 1997
5.541012 5.518624 2.01% 41,389 1996
</TABLE>
57
<PAGE> 61
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Massachusetts Investors Growth 22.167667 30.483476 37.51% 34,300 1999
Stock Fund - Class A 15.977352 22.167667 38.74% 32,426 1998
10.881713 15.977352 46.83% 19,733 1997
10.489691 10.881713 3.74% 13,452 1996
Nationwide(R) Fund - Class D 26.751797 26.451387 -1.12% 11,811 1999
20.709316 26.751797 29.18% 15,513 1998
14.965604 20.709316 38.38% 509,179 1997
14.282052 14.965604 4.79% 336,341 1996
Nationwide(R) Growth Fund - 4.730314 5.467936 15.59% 218,121 1999
Class D 3.857119 4.730314 22.64% 245,637 1998
3.083261 3.857119 25.10% 357,289 1997
2.916856 3.083261 5.70% 386,199 1996
Nationwide(R) Money Market - Prime 3.129869 3.246745 3.73% 0 1999
Shares* 3.005590 3.129869 4.13% 0 1998
2.885091 3.005590 4.18% 6,441,740 1997
2.867462 2.885091 0.61% 6,749,071 1996
Putnam Investors Fund - Class A 24.338044 31.391074 28.98% 105,667 1999
18.120944 24.338044 34.31% 99,114 1998
13.595614 18.120944 33.29% 133,581 1997
13.246208 13.595614 2.64% 153,709 1996
Putnam Voyager Fund - Class A 4.720266 7.304042 54.74% 6,582,645 1999
3.839341 4.720266 22.94% 5,838,788 1998
3.075131 3.839341 24.85% 5,930,438 1997
3.055821 3.075131 0.63% 5,117,342 1996
SEI Index Funds - S&P 500 Index 4.969856 5.950659 19.74% 67,602 1999
Portfolio 3.907349 4.969856 27.19% 76,739 1998
2.962740 3.907349 31.88% 52,580 1997
2.823355 2.962740 4.94% 71,085 1996
Seligman Growth Fund, Inc. - Class 16.819578 21.715067 29.11% 3,416 1999
A 12.549144 16.819578 34.03% 3,139 1998
10.721190 12.549144 17.05% 10,649 1997
10.356946 10.721190 3.52% 17,582 1996
T. Rowe Price International Stock 2.122997 2.832007 33.40% 1,684,025 1999
Fund(R) 1.844492 2.122997 15.10% 1,638,194 1998
1.812210 1.844492 1.78% 1,859,130 1997
1.725796 1.812210 5.01% 1,718,457 1996
Templeton Foreign Fund - Class A 1.767822 2.438971 37.96% 0 1999
1.875484 1.767822 -5.74% 0 1998
1.774439 1.875484 5.69% 7,960,130 1997
1.678650 1.774439 5.71% 6,594,135 1996
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 4.41%.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
58
<PAGE> 62
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.80%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century Income & Growth - 1.097595 1.284360 17.02% 4,099,338 1999
Investor Class 1.000000 1.097595 9.76% 109,503 1998
American Century: Growth Fund - 7.941675 10.610693 33.61% 3,278,927 1999
Investor Class 5.853199 7.941675 35.68% 3,767,251 1998
4.563925 5.853199 28.25% 1,540,193 1997
4.555198 4.563925 0.19% 1,586,526 1996
American Century: International 1.084264 2.028049 87.04% 3,037,882 1999
Discovery - Investor Class 1.000000 1.084264 8.43% 83,975 1998
American Century: Ultra Fund - 3.375496 4.737067 40.34% 16,063,912 1999
Investor Class 2.528946 3.375496 33.47% 16,603,825 1998
2.070374 2.528946 22.15% 11,990,091 1997
2.055822 2.070374 0.71% 9,866,856 1996
The Brown Capital Management - 1.000000 1.348543 34.85% 41,331 1999
Small Company Fund 2.437902 2.473803 1.47% 762,842 1999
The Bond Fund of America(sm), Inc. 2.336766 2.437902 4.33% 958,940 1998
2.156336 2.336766 8.37% 379,522 1997
2.128822 2.156336 1.29% 281,942 1996
Delaware Group Decatur Income 3.211392 3.075782 -4.22% 3,294 1999
Fund, Inc. - Decatur Income Fund - 2.940341 3.211392 9.22% 1,554 1998
Institutional Class 2.280770 2.940341 28.92% 6,036 1997
2.186573 2.280770 4.31% 5,492 1996
Dreyfus Appreciation Fund, Inc. 1.080133 1.178335 9.09% 2,360,495 1999
1.000000 1.080133 8.01% 524,887 1998
Dreyfus Premier Midcap Stock - 1.133283 1.243793 9.75% 223,901 1999
Class A 1.000000 1.133283 13.33% 10,469 1998
The Dreyfus Premier Third Century 4.569241 5.900015 29.12% 5,741,865 1999
Fund, Inc. - Class Z 3.538445 4.569241 29.13% 5,543,237 1998
2.757115 3.538445 28.34% 912,241 1997
2.700004 2.757115 2.12% 603,861 1996
Dreyfus S&P 500 Index Fund 1.548700 1.847528 19.30% 6,741,003 1999
1.218878 1.548700 27.06% 6,707,476 1998
1.000000 1.218878 21.89% 2,297,690 1997
Evergreen Income and Growth Fund - 2.388387 2.757154 15.44% 139,239 1999
Class Y 2.426846 2.388387 -1.58% 173,121 1998
1.947980 2.426846 24.58% 79,190 1997
1.875078 1.947980 3.89% 78,598 1996
Federated Bond Fund - Class F 1.018687 0.986932 -3.12% 408,645 1999
1.000000 1.018687 1.87% 55,483 1998
Federated U.S. Government 1.304742 1.287550 -1.32% 677,902 1999
Securities Fund: 2-5 Years - 1.216616 1.304742 7.24% 583,720 1998
Institutional Shares 1.144669 1.216616 6.29% 188,738 1997
1.140779 1.144669 0.34% 104,682 1996
Fidelity Advisor Growth 1.089301 1.124760 3.26% 1,561,973 1999
Opportunities Fund - Class A 1.000000 1.089301 8.93% 182,532 1998
Fidelity Advisor High Yield Fund - 1.064751 1.144516 7.49% 451,076 1999
Class T 1.000000 1.064751 6.48% 12,701 1998
</TABLE>
59
<PAGE> 63
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Fidelity Asset Manager(TM) 1.750474 1.972513 12.68% 712,331 1999
1.519919 1.750474 15.17% 479,562 1998
1.253012 1.519919 21.30% 299,273 1997
1.214017 1.253012 3.21% 269,853 1996
Fidelity Capital & Income Fund 4.845178 5.440999 12.30% 42,613 1999
4.662457 4.845178 3.92% 62,633 1998
4.097522 4.662457 13.79% 22,232 1997
4.015052 4.097522 2.05% 23,351 1996
Fidelity Contrafund(R) 3.280112 4.069987 24.08% 13,989,579 1999
2.513939 3.280112 30.48% 15,008,219 1998
2.060284 2.513939 22.02% 9,637,261 1997
1.953485 2.060284 5.47% 7,230,068 1996
Fidelity Equity-Income Fund 7.716814 8.203023 6.30% 4,320,699 1999
6.912960 7.716814 11.63% 4,932,169 1998
5.361008 6.912960 28.95% 3,057,190 1997
5.110048 5.361008 4.91% 2,555,440 1996
Fidelity Magellan(R) Fund 3.185678 3.920256 23.06% 9,379,290 1999
2.403149 3.185678 32.56% 8,905,129 1998
1.913580 2.403149 25.58% 6,180,393 1997
1.831578 1.913580 4.48% 5,622,628 1996
The Growth Fund of America(R), Inc. 4.429930 6.403063 44.54% 665,341 1999
3.388591 4.429930 30.73% 516,513 1998
2.692640 3.388591 25.85% 496,036 1997
2.519048 2.692640 6.89% 441,833 1996
The Income Fund of America(R), Inc. 2.844529 2.836409 -0.29% 982,366 1999
2.619427 2.844529 8.59% 945,389 1998
2.161460 2.619427 21.19% 490,571 1997
2.072401 2.161460 4.30% 367,278 1996
INVESCO Dynamics Fund, Inc. 1.172431 1.998173 70.43% 6,813,160 1999
1.000000 1.172431 17.24% 32,721 1998
INVESCO Equity Income Fund 2.384538 2.668593 11.91% 1,289,279 1999
(formerly, INVESCO Industrial 2.106034 2.384538 13.22% 1,333,146 1998
Income Fund) 1.678925 2.106034 25.44% 473,406 1997
1.613191 1.678925 4.07% 309,576 1996
INVESCO Total Return Fund 1.023668 1.001721 -2.14% 757,252 1999
1.000000 1.023668 2.37% 53,415 1998
Janus Fund 2.689953 3.926222 45.96% 11,225,252 1999
1.952310 2.689953 37.78% 8,036,789 1998
1.603684 1.952310 21.74% 2,423,723 1997
1.550416 1.603684 3.44% 1,634,700 1996
MAS Funds Fixed Income Portfolio 1.418521 1.398604 -1.40% 640,609 1999
1.337506 1.418521 6.06% 552,980 1998
1.230062 1.337506 8.73% 248,580 1997
1.215755 1.230062 1.18% 87,227 1996
MFS(R) Growth Opportunities Fund - 11.569155 15.244258 31.77% 158,132 1999
Class A 9.028407 11.569155 28.14% 187,053 1998
7.382046 9.028407 22.30% 178,707 1997
7.065795 7.382046 4.48% 181,406 1996
</TABLE>
60
<PAGE> 64
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
MFS(R) High Income Fund - Class A 6.193021 6.573607 6.15% 27,277 1999
6.179271 6.193021 0.22% 28,739 1998
5.519552 6.179271 11.95% 6,564 1997
5.410180 5.519552 2.02% 6,455 1996
Massachusetts Investors Growth 22.215628 30.579953 37.65% 9,966 1999
Stock Fund - Class A
15.995935 22.215628 38.88% 9,777 1998
10.883496 15.995935 46.97% 12,152 1997
10.489775 10.883496 3.75% 11,971 1996
Morgan Stanley Institutional Fund- 1.106680 1.530130 38.26% 538,687 1999
Equity Growth Portfolio - Class B 1.000000 1.106680 10.67% 71,375 1998
NSAT - Nationwide Income Fund 1.000000 0.996375 -0.36% 2,838 1999
NSAT - Nationwide Small Company 1.022482 1.460854 42.87% 1,963,101 1999
Fund
1.000000 1.022482 2.25% 1,644,689 1998
Nationwide S&P 500 Index Fund - 1.093550 1.299566 18.84% 4,573,329 1999
Institutional Service Class 1.000000 1.093550 9.36% 299,188 1998
(formerly, Class Y)
Nationwide(R) Fund - Class D 26.809677 26.535147 -1.02% 3,202,045 1999
20.733404 26.809677 29.31% 3,035,298 1998
14.968055 20.733404 38.52% 329,293 1997
14.282168 14.968055 4.80% 195,684 1996
Nationwide(R) Growth Fund - 4.740553 5.485250 15.71% 230,411 1999
Class D 3.861607 4.740553 22.76% 308,068 1998
3.083766 3.861607 25.22% 93,047 1997
2.916880 3.083766 5.72% 96,156 1996
Nationwide(R) Money Market - Prime 3.136716 3.257131 3.84% 13,061,105 1999
Shares* 3.009129 3.136716 4.24% 8,324,157 1998
2.885576 3.009129 4.28% 909,979 1997
2.867493 2.885576 0.63% 901,408 1996
Neuberger & Berman Partners Trust 1.041831 1.113054 6.84% 90,861 1999
1.000000 1.041831 4.18% 40,394 1998
Oppenheimer Global Fund - 1.106449 1.739511 57.22% 1,389,141 1999
Class A 1.000000 1.106449 10.64% 78,391 1998
Putnam Investors Fund - Class A 24.390710 31.490449 29.11% 61,479 1999
18.142029 24.390710 34.44% 75,040 1998
13.597842 18.142029 33.42% 39,280 1997
13.246316 13.597842 2.65% 38,905 1996
Putnam Voyager Fund - Class A 4.730485 7.327165 54.89% 7,607,104 1999
3.843809 4.730485 23.07% 5,319,237 1998
3.075635 3.843809 24.98% 3,166,939 1997
3.055846 3.075635 0.65% 2,559,117 1996
Seligman Growth Fund, Inc. - Class 16.855977 21.783810 29.23% 15,382 1999
A 12.563748 16.855977 34.16% 16,244 1998
10.722947 12.563748 17.17% 2,475 1997
10.357031 10.722947 3.53% 2,396 1996
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 4.51%.
61
<PAGE> 65
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
T. Rowe Price International 2.127594 2.840974 33.53% 1,457,486 1999
Stock Fund(R) 1.846640 2.127594 15.21% 1,798,986 1998
1.812507 1.846640 1.88% 1,036,525 1997
1.725811 1.812507 5.02% 931,357 1996
Templeton Foreign Fund - 1.771651 2.446696 38.10% 19,373,241 1999
Class A 1.877667 1.771651 -5.65% 21,282,916 1998
1.774730 1.877667 5.80% 2,623,603 1997
1.678664 1.774730 5.72% 2,061,896 1996
Warburg Pincus Emerging Markets 1.058940 1.489700 40.68% 417,978 1999
Growth Fund - Common Class 1.000000 1.058940 5.89% 26,076 1998
</TABLE>
The Brown Capital Management Small Company Fund and the NSAT-Nationwide Income
Fund were added to the variable account on October 1, 1999. Therefore, the
Condensed Financial Information reflects the period from October 1, 1999 to
December 31, 1999.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
62
<PAGE> 66
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.70%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century: Growth Fund - 7.958862 10.644282 33.74% 0 1999
Investor Class 5.860011 7.958862 35.82% 0 1998
4.564673 5.860011 28.38% 758,360 1997
4.555235 4.564673 0.21% 735,112 1996
American Century Income & Growth - 1.097739 1.285813 17.13% 1,121,163 1999
Investor Class 1.000000 1.097739 9.77% 30,419 1998
American Century: International 1.084406 2.030338 87.23% 1,254,474 1999
Discovery - Investor Class
1.000000 1.084406 8.44% 50,207 1998
American Century: Select Fund - 2.781702 3.376287 21.37% 0 1999
Investor Class 2.064969 2.781702 34.71% 0 1998
1.573105 2.064969 31.27% 1,088,027 1997
1.528629 1.573105 2.91% 949,150 1996
American Century: Ultra Fund - 3.382800 4.752061 40.48% 0 1999
Investor Class 2.531889 3.382800 33.61% 0 1998
2.070713 2.531889 22.27% 4,964,637 1997
2.055839 2.070713 0.72% 3,956,021 1996
The Bond Fund of America(sm), Inc. 2.443271 2.481750 1.57% 0 1999
2.339554 2.443271 4.43% 0 1998
2.156734 2.339554 8.48% 55,496 1997
2.128881 2.156734 1.31% 46,844 1996
The Brown Capital Management - 1.000000 1.348878 34.89% 4,867 1999
Small Company Fund
Dreyfus Appreciation Fund, Inc. 1.080275 1.179669 9.20% 633,725 1999
1.000000 1.080275 8.03% 49,721 1998
Dreyfus Premier Midcap Stock - 1.133431 1.245200 9.86% 62,728 1999
Class A 1.000000 1.133431 13.34% 5,430 1998
Dreyfus S&P 500 Index Fund 1.551283 1.852459 19.41% 0 1999
1.219691 1.551283 27.19% 0 1998
1.000000 1.219691 21.97% 1,092,654 1997
The Dreyfus Premier Third Century 4.579129 5.918693 29.25% 1,624,322 1999
Fund, Inc. - Class Z 3.542562 4.579129 29.26% 1,526,223 1998
2.757567 3.542562 28.47% 428,452 1997
2.700026 2.757567 2.13% 244,163 1996
Evergreen Income and Growth Fund - 2.393558 2.765887 15.56% 0 1999
Class Y 2.429669 2.393558 -1.49% 0 1998
1.948299 2.429669 24.71% 21,853 1997
1.875094 1.948299 3.90% 27,416 1996
Federated Bond Fund - Class F 1.018821 0.988049 -3.02% 67,164 1999
1.000000 1.018821 1.88% 219,340 1998
Federated U.S. Government 1.307593 1.291665 -1.22% 0 1999
Securities Fund: 2-5 Years - 1.218047 1.307593 7.35% 0 1998
Institutional Shares 1.144861 1.218047 6.39% 114,003 1997
1.140792 1.144861 0.36% 104,637 1996
</TABLE>
63
<PAGE> 67
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Fidelity Advisor Growth 1.089444 1.126033 3.36% 393,614 1999
Opportunities Fund - Class A 1.000000 1.089444 8.94% 11,123 1998
Fidelity Advisor High Yield Fund - 1.064934 1.145866 7.60% 103,457 1999
Class T 1.000000 1.064934 6.49% 5,110 1998
Fidelity Asset Manager(TM) 1.754263 1.978760 12.80% 0 1999
1.521688 1.754263 15.28% 0 1998
1.253217 1.521688 21.42% 538,872 1997
1.214027 1.253217 3.23% 456,745 1996
Fidelity Capital & Income Fund 4.855767 5.458386 12.41% 0 1999
4.667941 4.855767 4.02% 0 1998
4.098210 4.667941 13.90% 22,307 1997
4.015097 4.098210 2.07% 22,770 1996
Fidelity Contrafund(R) 3.287212 4.082874 24.20% 0 1999
2.516865 3.287212 30.61% 0 1998
2.060621 2.516865 22.14% 4,750,222 1997
1.953501 2.060621 5.48% 3,683,606 1996
7.733517 8.229002 6.41% 0 1999
Fidelity Equity-Income Fund 6.921001 7.733517 11.74% 0 1998
5.361886 6.921001 29.08% 2,389,431 1997
5.110090 5.361886 4.93% 1,989,159 1996
Fidelity Magellan(R) Fund 3.192571 3.932667 23.18% 0 1999
2.405944 3.192571 32.70% 0 1998
1.913894 2.405944 25.71% 3,706,622 1997
1.831593 1.913894 4.49% 3,295,811 1996
The Growth Fund of America(R), Inc. 4.439517 6.423330 44.69% 0 1999
3.392534 4.439517 30.86% 0 1998
2.693081 3.392534 25.97% 170,540 1997
2.519069 2.693081 6.91% 158,421 1996
The Income Fund of America(R), Inc. 2.850687 2.845393 -0.19% 0 1999
2.622475 2.850687 8.70% 0 1998
2.161814 2.622475 21.31% 294,406 1997
2.072418 2.161814 4.31% 246,997 1996
INVESCO Dynamics Fund 1.172584 2.000430 70.60% 2,368,456 1999
1.000000 1.172584 17.26% 505 1998
INVESCO Equity Income Fund 2.389699 2.677044 12.02% 0 1999
(formerly, INVESCO Industrial 2.108484 2.389699 13.34% 0 1998
Income Fund) 1.679200 2.108484 25.56% 473,795 1997
1.613204 1.679200 4.09% 346,238 1996
INVESCO Total Return Fund 1.023803 1.002855 -2.05% 221,032 1999
1.000000 1.023803 2.38% 72,756 1998
Janus Fund 2.695775 3.938650 46.10% 0 1999
1.954582 2.695775 37.92% 0 1998
1.603947 1.954582 21.86% 2,404,760 1997
1.550428 1.603947 3.45% 1,696,374 1996
</TABLE>
64
<PAGE> 68
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
MAS Funds Fixed Income Portfolio 1.421594 1.403036 -1.31% 0 1999
1.339063 1.421594 6.16% 0 1998
1.230264 1.339063 8.84% 91,023 1997
1.215765 1.230264 1.19% 27,573 1996
MFS(R) Growth 11.594198 15.292523 31.90% 0 1999
Opportunities Fund - Class A 9.038914 11.594198 28.27% 0 1998
7.383255 9.038914 22.42% 5,735 1997
7.065853 7.383255 4.49% 7,294 1996
MFS(R) High Income Fund - 6.206555 6.594614 6.25% 0 1999
Class A 6.186539 6.206555 0.32% 0 1998
5.520479 6.186539 12.07% 105 1997
5.410240 5.520479 2.04% 130 1996
Massachusetts 22.263692 30.676736 37.79% 0 1999
Investors Growth 16.014540 22.263692 39.02% 0 1998
Stock Fund - Class A 10.885279 16.014540 47.12% 285 1997
10.489862 10.885279 3.77% 280 1996
Morgan Stanley Institutional Fund 1.106825 1.531860 38.40% 174,980 1999
- - Equity Growth Portfolio - 1.000000 1.106825 10.68% 5,955 1998
Class B
LifeDesigns Series - The 1.152311 1.421032 23.32% 2,218,802 1999
Aggressive Portfolio 1.000000 1.152311 15.23% 2,046,802 1998
LifeDesigns Series - The 1.110341 1.144210 3.05% 882,125 1999
Conservative Portfolio 1.000000 1.110341 11.03% 289,939 1998
LifeDesigns Series - The Moderate 1.145999 1.307445 14.09% 2,040,824 1999
Portfolio 1.000000 1.145999 14.60% 1,328,203 1998
LifeDesigns Series - The 1.143522 1.355141 18.51% 1,750,808 1999
Moderately Aggressive Portfolio 1.000000 1.143522 14.35% 806,901 1998
LifeDesigns Series - The 1.131933 1.234169 9.03% 721,136 1999
Moderately Conservative Portfolio 1.000000 1.131933 13.19% 473,517 1998
Nationwide(R) Fund - Class D 26.867683 26.619171 -0.92% 823,372 1999
20.757521 26.867683 29.44% 803,944 1998
14.970505 20.757521 38.66% 142,531 1997
14.282285 14.970505 4.82% 54,398 1996
Nationwide(R) Growth Fund - 4.750814 5.502618 15.82% 0 1999
Class D 3.866100 4.750814 22.88% 0 1998
3.084270 3.866100 25.35% 339,294 1997
2.916904 3.084270 5.74% 286,704 1996
Nationwide(R) Money Market Fund 3.143571 3.267540 3.94% 5,308,031 1999
Prime Shares* 3.012668 3.143571 4.35% 3,318,283 1998
2.886060 3.012668 4.39% 985,611 1997
2.867525 2.886060 0.65% 1,141,686 1996
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 4.61%.
65
<PAGE> 69
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C> <C>
Nationwide S&P 500 Index Fund - 1.093694 1.301036 18.96% 676,972 1999
Institutional Service Class 1.000000 1.093694 9.37% 22,552 1998
(formerly, Class Y)
NSAT - Nationwide Income Fund 1.000000 0.996623 -0.34% 6,307 1999
NSAT - Nationwide Small Company 1.023450 1.463697 43.02% 845,013 1999
Fund 1.000000 1.023450 2.35% 877,300 1998
Neuberger Berman Partners Trust 1.041968 1.114314 6.94% 48,943 1999
1.000000 1.041968 4.20% 4,567 1998
Oppenheimer Global Fund - Class A 1.106594 1.741477 57.37% 238,979 1999
1.000000 1.106594 10.66% 5,875 1998
Prestige Balanced Fund - 1.061002 1.151398 8.52% 326,847 1999
Institutional Service Class 1.000000 1.061002 6.10% 48,644 1998
(formerly, Class Y)
Prestige International Fund - 1.092070 1.316225 20.53% 153,162 1999
Institutional Service Class 1.000000 1.092070 9.21% 16,097 1998
(formerly, Class Y)
Prestige Large Cap Growth Fund - 1.139564 1.525781 33.89% 812,797 1999
Institutional Service Class 1.000000 1.139564 13.96% 52,478 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.049429 0.993783 -5.30% 136,335 1999
Institutional Service Class 1.000000 1.049429 4.94% 7,620 1998
(formerly, Class Y)
Prestige Small Cap Fund - 1.090386 1.285935 17.93% 440,526 1999
Institutional Service Class 1.000000 1.090386 9.04% 31,273 1998
(formerly, Class Y)
Putnam Investors Fund - Class A 24.443490 31.590137 29.24% 0 1999
18.163138 24.443490 34.58% 0 1998
13.600069 18.163138 33.55% 4,776 1997
13.246425 13.600069 2.67% 4,735 1996
Putnam Voyager Fund - Class A 4.740725 7.350361 55.05% 0 1999
3.848283 4.740725 23.19% 0 1998
3.076140 3.848283 25.10% 2,223,516 1997
3.055871 3.076140 0.66% 1,979,411 1996
Seligman Growth Fund, Inc. - Class 16.892454 21.852770 29.36% 0 1999
A 12.578369 16.892454 34.30% 0 1998
10.724703 12.578369 17.28% 684 1997
10.357115 10.724703 3.55% 684 1996
T. Rowe Price International Stock 2.132200 2.849969 33.66% 0 1999
Fund(R) 1.848790 2.132200 15.33% 0 1998
1.812803 1.848790 1.99% 783,958 1997
1.725825 1.812803 5.04% 881,585 1996
</TABLE>
66
<PAGE> 70
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Templeton 1.775488 2.454445 38.24% 4,602,502 1999
Foreign Fund - Class A 1.879853 1.775488 -5.55% 4,957,272 1998
1.775020 1.879853 5.91% 1,763,615 1997
1.678677 1.775020 5.74% 1,461,504 1996
Warburg Pincus Emerging 1.059122 1.491445 40.82% 97,575 1999
Growth Fund - Common Class 1.000000 1.059122 5.91% 7,510 1998
</TABLE>
The Brown Capital Management Small Company Fund and the NSAT-Nationwide Income
Fund were added to the variable account on October 1, 1999. Therefore, the
Condensed Financial Information reflects the period from October 1, 1999 to
December 31, 1999.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
67
<PAGE> 71
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.65%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM 2.751200 3.965223 44.13% 0 1999
Constellation Fund - Institutional 2.318983 2.751200 18.64% 3,022,273 1998
Class 2.057438 2.318983 12.71% 2,389,104 1997
1.897355 2.057438 8.44% 1,258,757 1996
American Century: Growth - 7.971577 10.666614 33.81% 1,084,862 1999
Investor Class 5.866443 7.971577 35.88% 8,602,720 1998
4.567407 5.866443 28.44% 6,244,941 1997
4.139808 4.567401 10.33% 6,000,935 1996
American Century Select - Investor 2.768141 3.361506 21.44% 1,330,720 1999
Class 2.376192 2.768141 16.49% 1,181,418 1998
American Century: Ultra - Investor 3.388204 4.762030 40.55% 11,961,825 1999
Class 2.534668 3.388204 33.67% 35,694,678 1998
2.071951 2.534668 22.33% 19,414,868 1997
1.858002 2.071951 11.52% 16,258,739 1996
The Bond Fund of America(sm), Inc. 2.447231 2.487024 1.63% 284,552 1999
2.342166 2.447231 4.49% 1,599,096 1998
2.158056 2.342166 8.53% 736,645 1997
2.057925 2.158056 4.87% 471,875 1996
Delaware Group Decatur Fund, Inc. 3.202651 3.072015 -4.08% 26 1999
- - Decatur Income Fund - 3.039369 3.202651 5.37% 169 1998
Institutional Class
Dreyfus S&P 500 Index Fund 1.545632 1.846634 19.47% 7,202,634 1999
1.379321 1.545632 12.06% 5,191,876 1998
Dreyfus Premier Third Century 4.586444 5.931110 29.32% 0 1999
Fund, Inc. - Class Z 3.546449 4.586444 29.32% 2,794,245 1998
2.759214 3.546449 28.53% 2,302,999 1997
2.421004 2.759214 13.97% 1,592,562 1996
Evergreen Income and Growth Fund - 2.397384 2.771693 15.61% 16,372 1999
Class Y 2.432337 2.397384 -1.44% 431,682 1998
1.949465 2.432337 24.77% 433,149 1997
1.797507 1.949465 8.45% 494,994 1996
Federated U.S. Government 1.301463 1.286256 -1.17% 519,878 1999
Securities Fund: 2-5 Years - 1.304596 1.301463 -0.24% 344,294 1998
Institutional Shares
Fidelity Capital & Income Fund 4.863557 5.469896 12.47% 13,256 1999
4.673077 4.863557 4.08% 85,411 1998
4.100654 4.673077 13.96% 70,677 1997
3.891882 4.100654 5.36% 84,610 1996
Fidelity Contrafund(R) 3.292464 4.091441 24.27% 10,947,667 1999
2.519627 3.292464 30.67% 16,051,389 1998
2.061853 2.519627 22.20% 3,990,922 1997
1.834521 2.061853 12.39% 1,600,079 1996
</TABLE>
68
<PAGE> 72
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Fidelity Asset Manager(TM) 1.745707 1.970094 12.85% 688,022 1999
1.592894 1.745707 9.59% 758,282 1998
Fidelity Equity-Income Fund 7.745874 8.246273 6.46% 2,331,508 1999
6.928596 7.745874 11.80% 11,315,425 1998
5.365090 6.928596 29.14% 7,574,670 1997
4.792632 5.365090 11.94% 6,613,425 1996
Fidelity Growth & Income Portfolio 3.303630 3.624092 9.70% 0 1999
2.591531 3.303630 27.48% 6,458,278 1998
2.003791 2.591531 29.33% 3,435,213 1997
1.788691 2.003791 12.03% 1,071,573 1996
Fidelity Magellan(R) Fund 3.197672 3.940918 23.24% 6,699,000 1999
2.408585 3.197672 32.76% 26,173,266 1998
1.915038 2.408585 25.77% 16,840,881 1997
1.732300 1.915038 10.55% 15,847,180 1996
The Growth Fund of America(R), Inc. 4.417868 6.395199 44.76% 434,365 1999
3.736808 4.417868 18.23% 397,583 1998
The Income Fund of America(R), Inc. 2.836785 2.832933 -0.14% 278,766 1999
2.688489 2.836785 5.52% 403,926 1998
INVESCO Equity Income Fund 2.378046 2.665322 12.08% 843,299 1999
(formerly, INVESCO Industrial 2.223486 2.378046 6.95% 660,119 1998
Income Fund) 2.682628 3.921398 46.18% 8,056,954 1999
Janus Fund 2.178119 2.682628 23.16% 4,344,666 1998
MAS Funds - Fixed Income Portfolio 1.414658 1.396889 -1.26% 518,616 1999
1.385466 1.414658 2.11% 283,874 1998
MFS(R) Growth Opportunities Fund - 11.612729 15.324618 31.96% 89,067 1999
Class A 9.048839 11.612729 28.33% 2,162,443 1998
7.387670 9.048839 22.49% 1,999,203 1997
6.482021 7.387670 13.97% 2,053,995 1996
MFS(R) High Income Fund - Class A 6.216512 6.608519 6.31% 2,074 1999
6.193345 6.216512 0.37% 664,163 1998
5.523771 6.193345 12.12% 500,487 1997
5.237254 5.523771 5.47% 466,255 1996
Massachusetts Investors Growth 22.299259 30.741088 37.86% 2,247 1999
Stock Fund - Class A 16.032114 22.299259 39.09% 262,889 1998
10.891785 16.032114 47.19% 271,730 1997
9.620839 10.891785 13.21% 270,135 1996
Nationwide(R) Bond Fund - Class D 2.342442 2.262343 -3.42% 0 1999
2.175755 2.342442 7.66% 43,138 1998
2.003508 2.175755 8.60% 51,355 1997
1.902228 2.003508 5.32% 53,369 1996
Nationwide(R) Fund - Class D 26.910596 26.675025 -0.88% 0 1999
20.780295 26.910596 29.50% 1,339,459 1998
14.979448 20.780295 38.73% 721,864 1997
13.293866 14.979448 12.68% 408,411 1996
</TABLE>
69
<PAGE> 73
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Nationwide(R) Growth Fund - Class D 4.758406 5.514166 15.88% 402,620 1999
3.870345 4.758406 22.95% 1,367,643 1998
3.086114 3.870345 25.41% 658,443 1997
2.801588 3.086114 10.16% 517,548 1996
Nationwide(R) Money Market Fund - 3.148614 3.274429 4.00% 0 1999
Prime Shares* 3.015983 3.148614 4.40% 4,349,555 1998
2.887782 3.015983 4.44% 3,131,282 1997
2.848502 2.887782 1.38% 3,694,679 1996
Neuberger Berman 1.628931 1.755284 7.76% 0 1999
Guardian Fund, Inc. 1.601873 1.628931 1.69% 923,269 1998
1.367075 1.601873 17.18% 614,486 1997
1.203016 1.367075 13.64% 109,076 1996
Putnam Investors Fund - Class A 24.482535 31.656407 29.30% 18,355 1999
18.183069 24.482535 34.64% 2,271,192 1998
13.608194 18.183069 33.62% 1,771,233 1997
12.172007 13.608194 11.80% 1,571,300 1996
Putnam Voyager 4.748304 7.365787 55.12% 3,895,165 1999
Fund - Class A 3.852510 4.748304 23.25% 6,536,365 1998
3.077980 3.852510 25.16% 1,528,999 1997
2.937103 3.077980 4.80% 990,216 1996
SEI Index Funds - S&P 500 Index 4.999357 6.000914 20.03% 0 1999
Portfolio 3.920739 4.999357 27.51% 8,122,338 1998
2.965481 3.920739 32.21% 3,689,771 1997
2.610748 2.965481 13.59% 724,558 1996
Seligman Growth Fund, Inc. - Class 16.919446 21.898623 29.43% 28,074 1999
A 12.592179 16.919446 34.36% 108,084 1998
10.731114 12.592179 17.34% 113,689 1997
9.693645 10.731114 10.70% 121,166 1996
T. Rowe Price International Stock 2.135609 2.855951 33.73% 1,247,401 1999
Fund(R) 1.850821 2.135609 15.39% 5,964,541 1998
1.813888 1.850821 2.04% 4,875,751 1997
1.686337 1.813888 7.56% 5,512,814 1996
Templeton 1.778328 2.459598 38.31% 0 1999
Foreign Fund - Class A 1.881918 1.778328 -5.50% 1,352,884 1998
1.776082 1.881918 5.96% 1,092,861 1997
1.628310 1.776082 9.08% 168,098 1996
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 4.66%.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
70
<PAGE> 74
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.60%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century Growth - Investor 7.951067 10.644483 33.87% 222,325 1999
Class 6.793742 7.951067 17.04% 194,830 1998
American Century Ultra - Investor 3.379488 4.752151 40.62% 1,194,596 1999
Class 2.860641 3.379488 18.14% 1,072,286 1998
The Bond Fund of America(sm), Inc. 2.440904 2.481842 1.68% 99,564 1999
2.374352 2.440904 2.80% 82,948 1998
Delaware Group Decatur Fund, Inc. 3.215194 3.085589 -4.03% 6,112 1999
Decatur Income Fund - 3.051041 3.215194 5.38% 6,112 1998
Institutional Class
Dreyfus S&P 500 Index Fund 1.550532 1.853414 19.53% 1,329,208 1999
1.383576 1.550532 12.07% 1,251,281 1998
Evergreen Income and Growth Fund - 2.391215 2.765943 15.67% 3,198 1999
Class Y 2.271589 2.391215 5.27% 2,788 1998
Federated U.S. Government 1.306298 1.291685 -1.12% 89,786 1999
Securities Fund: 2-5 Years - 1.309331 1.306298 -0.23% 71,515 1998
Institutional Shares
Fidelity Asset Manager(TM) 1.752545 1.978799 12.91% 51,663 1999
1.598998 1.752545 9.60% 53,124 1998
Fidelity Contrafund(R) 3.283991 4.082951 24.33% 1,002,128 1999
2.746239 3.283991 19.58% 979,826 1998
Fidelity Equity Income Fund 7.725951 8.229176 6.51% 160,208 1999
7.163732 7.725951 7.85% 170,677 1998
Fidelity Magellan(R) Fund 3.189445 3.932743 23.30% 760,113 1999
2.702803 3.189445 18.01% 683,273 1998
The Growth Fund of America(R), Inc. 4.435169 6.423449 44.83% 188,240 1999
3.751125 4.435169 18.24% 162,774 1998
The Income Fund of America(R), Inc. 2.847897 2.845453 -0.09% 182,127 1999
2.698792 2.847897 5.52% 153,954 1998
INVESCO Equity Income Fund 2.387360 2.677099 12.14% 96,777 1999
(formerly, INVESCO Industrial 2.232005 2.387360 6.96% 90,551 1998
Income Fund)
Janus Fund 2.693134 3.938722 46.25% 1,468,959 1999
2.186465 2.693134 23.17% 627,794 1998
MAS Funds - Fixed Income 1.420201 1.403064 -1.21% 149,573 1999
Portfolio 1.390777 1.420201 2.12% 118,670 1998
LifeDesigns Series - The 1.154520 1.425179 23.44% 363,464 1999
Aggressive Portfolio 1.000000 1.154520 15.45% 310,655 1998
LifeDesigns Series - The 1.112468 1.147549 3.15% 126,881 1999
Conservative Portfolio 1.000000 1.112468 11.25% 66,069 1998
LifeDesigns Series - The Moderate 1.148195 1.311261 14.20% 409,338 1999
Portfolio 1.000000 1.148195 14.82% 106,065 1998
</TABLE>
71
<PAGE> 75
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.145713 1.359095 18.62% 403,961 1999
Moderately Aggressive Portfolio 1.000000 1.145713 14.57% 259,760 1998
LifeDesigns Series - The 1.134101 1.237770 9.14% 36,763 1999
Moderately Conservative 1.000000 1.134101 13.41% 50,620 1998
Portfolio
Nationwide(R) Growth Fund 4.746163 5.502728 15.94% 1,403 1999
4.355446 4.746163 8.97% 1,583 1998
Prestige Balanced Fund - 1.061142 1.152701 8.63% 55,011 1999
Institutional Service Class 1.000000 1.061142 6.11% 0 1998
(formerly, Class Y)
Prestige International Fund - 1.092213 1.317714 20.65% 6,408 1999
Institutional Service Class 1.000000 1.092213 9.22% 0 1998
(formerly, Class Y)
Prestige Large Cap Growth Fund - 1.139173 1.527506 34.03% 118,191 1999
Institutional Service Class 1.000000 1.139173 13.97% 2,573 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.049566 0.994908 -5.21% 7,280 1999
Institutional Service Class 1.000000 1.049566 4.96% 4,696 1998
(formerly, Class Y)
Prestige Small Cap Fund - 1.090529 1.287390 18.05% 58,575 1999
Institutional Service Class 1.000000 1.090529 9.05% 0 1998
(formerly, Class Y)
Putnam Investors Fund - 24.419553 31.590747 29.37% 4,084 1999
Class A 20.572742 24.419553 18.70% 4,084 1998
Putnam Voyager Fund - 4.736081 7.350493 55.20% 456,489 1999
Class A 3.982081 4.736081 18.93% 454,607 1998
T. Rowe Price International 2.130112 2.850022 33.80% 131,413 1999
Stock Fund(R)
1.968678 2.130112 8.20% 126,263 1998
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
72
<PAGE> 76
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.55%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century Income & Growth - 1.097955 1.287995 17.31% 737,029 1999
Investor Class
1.000000 1.097955 9.80% 8,687 1998
American Century: International 1.084619 2.033777 87.51% 739,410 1999
Discovery - Investor Class 1.000000 1.084619 8.46% 6,011 1998
The Bond Fund of America(sm), Inc. 2.437786 2.479919 1.73% 63,570 1999
2.371116 2.437786 2.81% 82,138 1998
The Brown Capital Management - 1.000000 1.349380 34.94% 27,813 1999
Small Company Fund
Dreyfus Appreciation Fund, Inc 1.080487 1.818672 9.36% 527,407 1999
1.000000 1.080487 8.05% 136,346 1998
Dreyfus Premier Midcap Stock 1.133654 1.247314 10.03% 62,807 1999
- - Class A 1.000000 1.133654 13.37% 914 1998
Dreyfus S&P 500 Index Fund 1.549323 1.852895 19.59% 347,168 1999
1.382381 1.549323 12.08% 153,801 1998
The Dreyfus Premier Third Century 4.557584 5.899679 29.45% 1,079,203 1999
Fund, Inc. - Class Z 3.924740 4.557584 16.12% 1,265,956 1998
Evergreen Income and Growth 2.388169 2.763799 15.73% 52,484 1999
Fund - Class Y 2.268502 2.388169 5.28% 91,000 1998
Federated U.S. Government 1.304613 1.290667 -1.07% 95,731 1999
Securities Fund: 2-5 Years 1.307530 1.304613 -0.22% 62,224 1998
Institutional Shares
Fidelity Advisor Growth 1.089659 1.127945 3.51% 171,510 1999
Opportunities Fund - Class A 1.000000 1.089659 8.97% 87,134 1998
Fidelity Advisor High Yield Fund - 1.065207 1.147891 7.76% 36,883 1999
Class T 1.000000 1.065207 6.52% 0 1998
Fidelity Asset Manager(TM) 1.750311 1.977265 12.97% 34,007 1999
1.596824 1.750311 9.61% 28,644 1998
Fidelity Contrafund(R) 3.279805 4.079783 24.39% 584,972 1999
2.742505 3.279805 19.59% 557,635 1998
Fidelity Equity - Income Fund 7.716109 8.222803 6.57% 94,865 1999
7.154000 7.716109 7.86% 99,286 1998
Fidelity Magellan(R) Fund 3.185381 3.929695 23.37% 306,414 1999
2.699131 3.185381 18.02% 308,121 1998
The Growth Fund of America(R), Inc. 4.429517 6.418466 44.90% 46,601 1999
3.746027 4.429517 18.25% 28,933 1998
The Income Fund of America(R), Inc. 2.844269 2.843248 -0.04% 46,183 1999
2.695124 2.844269 5.53% 49,186 1998
INVESCO Dyanamics Fund, Inc. 1.172815 2.003821 70.86% 1,832,664 1999
1.000000 1.172815 17.28% 14,593 1998
INVESCO Equity Income Fund 2.384319 2.675024 12.19% 151,879 1999
(formerly, INVESCO Industrial 2.228972 2.384319 6.97% 158,514 1998
Income Fund)
INVESCO Total Return Fund 1.024005 1.004559 -1.90% 68,424 1999
1.000000 1.024005 2.40% 2,474 1998
</TABLE>
73
<PAGE> 77
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
MAS Funds - Fixed Income 1.418390 1.401976 -1.16% 31,369 1999
Portfolio 1.388855 1.418390 2.13% 15,856 1998
Massachusetts Investors Growth 22.213562 30.653547 37.99% 1,094 1999
Stock Index Fund - Class A 18.886976 22.213562 17.61% 1,109 1998
MFS(R) Growth Opportunities Fund - 11.568078 15.280950 32.10% 16,775 1999
Class A 9.756577 11.568078 18.57% 16,642 1998
MFS(R) High Income Fund - 6.192408 6.589522 6.41% 2,328 1999
Class A 5.864723 6.192408 5.59% 2,329 1998
Morgan Stanley Institutional Fund, 1.107043 1.534459 38.61% 52,628 1999
Inc. - Equity Growth Portfolio - 1.000000 1.107043 10.70% 7,861 1998
Class B
Nationwide Fund - Class D 26.741341 26.533779 -0.78% 627,946 1999
24.556068 26.741341 8.90% 940,065 1998
Nationwide(R) Growth Fund - 4.740115 5.498462 16.00% 31,462 1999
Class D 4.349527 4.740115 8.98% 31,485 1998
Nationwide Money Market Fund - 3.136406 3.265016 4.10% 4,345,303 1999
Prime Shares* 3.114777 3.136406 0.69% 3,511,177 1998
Nationwide S&P 500 Index Fund - 1.093909 1.303244 19.14% 897,383 1999
Institutional Service Class 1.000000 1.093909 9.39% 112,981 1998
(formerly, Class Y)
NSAT - Nationwide Income Fund 1.000000 0.996996 -0.30% 1,007 1999
NSAT - Nationwide Small Company 1.007001 1.442332 43.23% 509,029 1999
Fund 0.888321 1.007001 13.36% 528,402 1998
Neuberger Berman Partners Trust 1.042174 1.116206 7.10% 12,556 1999
1.000000 1.042174 4.22% 0 1998
Oppenheimer Global Fund - 1.106811 1.744429 57.61% 258,765 1999
Class A 1.000000 1.106811 10.68% 11,480 1998
Putnam Investors Fund - Class A 24.388433 31.566252 29.43% 10,721 1999
20.544784 24.388433 18.71% 10,786 1998
Seligman Growth Fund, Inc. - Class 16.854407 21.836245 29.56% 706 1999
A 14.649019 16.854407 15.05% 1,971 1998
T. Rowe Price International Stock 2.127397 2.847810 33.86% 102,385 1999
Fund (R) 1.966001 2.127397 8.21% 85,069 1998
Templeton Foreign Fund - Class A 1.767129 2.446551 38.45% 4,159,686 1999
1.745589 1.767129 1.23% 5,105,892 1998
Warburg Pincus Emerging Growth 1.059668 1.494067 41.03% 179,205 1999
Fund - Common Class 0.893776 1.059668 18.53% 30 1998
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 4.76%.
The Brown Capital Management Small Company Fund and the NSAT-Nationwide Income
Fund were added to the variable account on October 1, 1999. Therefore, the
Condensed Financial Information reflects the period from October 1, 1999 to
December 31, 1999.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
74
<PAGE> 78
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE................................................................... .0.50%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN UNIT OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century Growth - Investor Class 7.922098 10.616300 34.01% 721,853 1999
6.767843 7.922098 17.05% 0 1998
American Century Ultra - Investor Class 3.367174 4.739567 40.76% 2,603,337 1999
2.849735 3.367174 18.16% 0 1998
The Bond Fund of America(sm), Inc. 2.431945 2.475221 1.78% 113,337 1999
2.365233 2.431945 2.82% 0 1998
Dreyfus S&P 500 Index Fund 1.546031 1.849882 19.65% 1,939,404 1999
1.379326 1.546031 12.09% 0 1998
Evergreen Income and Growth Fund - Class Y 2.382498 2.758615 15.79% 8,510 1999
2.262924 2.382498 5.28% 0 1998
Federated U.S. Government Securities 1.301958 1.288688 -1.02% 23,528 1999
Fund: 2-5 Years - Institutional Shares 1.304758 1.301958 0.21% 0 1998
Fidelity Asset Manager(TM) 1.746158 1.973560 13.02% 278,360 1999
1.592900 1.746158 9.62% 0 1998
Fidleity Capital & Income Fund 4.834839 5.445808 12.64% 10,392 1999
4.467731 4.834839 8.22% 0 1998
Fidelity Contrafund(R) 3.272022 4.072136 24.45% 2,107,617 1999
2.735766 3.272022 19.60% 0 1998
Fidelity Equity Income Fund 7.697797 8.207390 6.62% 1,365,387 1999
7.136416 7.697797 7.87% 0 1998
Fidelity Magellan(R) Fund 3.177824 3.922330 23.43% 2,413,022 1999
2.692499 3.177824 18.03% 0 1998
The Growth Fund of America(R), Inc. 4.419009 6.406436 44.97% 219,394 1999
3.736824 4.419009 18.26% 0 1998
The Income Fund of America(R), Inc. 2.837518 2.837919 0.01% 241,490 1999
2.688500 2.837518 5.54% 0 1998
INVESCO Equity Income Fund (formerly, 2.378661 2.670011 12.25% 171,754 1999
INVESCO Industrial Income Fund) 2.223495 2.378661 6.98% 0 1998
Janus Fund 2.683319 3.928288 46.40% 3,071,302 1999
2.178128 2.683319 23.19% 0 1998
MAS Funds - Fixed Income 1.415024 1.399348 -1.11% 49,975 1999
Portfolio 1.385472 1.415024 2.13% 0 1998
Massachusetts Investors Growth Stock 22.160876 30.596117 38.06% 235 1999
Index Fund -Class A 18.840585 22.160876 17.62% 0 1998
MFS(R) Growth Opportunities Fund - 11.540626 15.252302 32.16% 4,879 1999
Class A 9.732599 11.540626 18.58% 0 1998
Nationwide(R) Growth Fund - Class D 4.728868 5.488156 16.06% 24,078 1999
4.338838 4.728868 8.99% 0 1998
Putnam Investors Fund - 24.330583 31.507110 29.50% 4,370 1999
Class A 20.494316 24.330583 18.72% 0 1998
Putnam Voyager Fund - 4.718816 7.331012 55.36% 1,243,339 1999
Class A 3.966894 4.718816 18.95% 0 1998
T. Rowe Price International 2.122346 2.842467 33.93% 157,024 1999
Stock Fund(R) 1.961168 2.122346 8.22% 0 1998
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
75
<PAGE> 79
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.45%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
LifeDesigns Series - The 1.150582 1.422449 23.63% 192,690 1999
Aggressive Portfolio 1.000000 1.150582 15.06% 211,944 1998
LifeDesigns Series - The 1.150582 1.145355 3.31% 57,204 1999
Conservative Portfolio
1.000000 1.150582 10.87% 80,765 1998
LifeDesigns Series - The Moderate 1.144281 1.308751 14.37% 150,163 1999
Portfolio 1.000000 1.144281 14.43% 80,286 1998
LifeDesigns Series - The 1.141807 1.356493 18.80% 162,211 1999
Moderately Aggressive Portfolio 1.000000 1.141807 14.18% 155,701 1998
LifeDesigns Series - The 1.130236 1.235402 9.30% 281,629 1999
Moderately Conservative Portfolio 1.000000 1.130236 13.02% 230,674 1998
Prestige Balanced Fund - 1.061351 1.154658 8.79% 57,978 1999
Institutional Service Class 1.000000 1.061351 6.14% 3,404 1998
(formerly, Class Y)
Prestige International Fund - 1.092427 1.319950 20.83% 42,382 1999
Institutional Service Class 1.000000 1.092427 9.24% 1,317 1998
(formerly, Class Y)
Prestige Large Cap Growth Fund - 1.061351 1.530097 34.23% 376,952 1999
Institutional Service Class 1.000000 1.139937 13.99% 1,307 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.049773 0.996598 -5.07% 48,328 1999
Institutional Service Class 1.000000 1.049773 4.98% 2,293 1998
(formerly, Class Y)
Prestige Small Cap Fund - 1.090743 1.289575 18.23% 91,958 1999
Institutional Service Class 1.000000 1.090743 9.07% 946 1998
(formerly, Class Y)
</TABLE>
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
76
<PAGE> 80
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.40%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
AIM Equity Funds, Inc. - AIM 2.734577 3.951118 44.49% 3,221,521 1999
Constellation Fund - Institutional 2.302741 2.734577 18.75% 0 1998
Class
American Century Income & Growth - 1.098171 1.290181 17.48% 498,580 1999
Investor Class 1.000000 1.098171 9.82% 79,664 1998
American Century Growth - Investor 7.923462 10.628738 34.14% 7,486,254 1999
Class 1.000000 7.923462 17.07% 3,508 1998
American Century Ultra - Investor 3.367754 4.745119 40.90% 27,413,248 1999
Class 2.849743 3.367754 18.18% 0 1998
American Century: International 1.084832 2.037221 87.79% 438,110 1999
Discovery - Investor Class 1.000000 1.084832 8.48% 26,496 1998
The Bond Fund of America(sm), Inc. 2.432407 2.478179 1.88% 1,342,293 1999
2.365279 2.432407 2.84% 0 1998
The Brown Capital Management - 1.000000 1.349883 34.99% 37,793 1999
Small Company Fund
Dreyfus Appreciation Fund, Inc. 1.080700 1.183678 9.53% 148,798 1999
1.000000 1.080700 8.07% 27,993 1998
Dreyfus Premier Midcap Stock 1.133877 1.249431 10.19% 46,051 1999
- - Class A 1.000000 1.133877 13.39% 0 1998
The Dreyfus Premier Third Century 4.558760 5.910051 29.64% 946,827 1999
Fund, Inc. - Class Z 1.000000 4.558760 16.15% 737,042 1998
Evergreen Income and Growth 2.832909 2.761849 15.90% 365,065 1999
Fund - Class Y
2.262930 2.382909 5.30% 0 1998
Federated Bond Fund - Class F 1.019222 0.991409 -2.73% 61,902 1999
1.000000 1.019222 1.92% 12 1998
Fidelity Advisor Growth 1.089873 1.129860 3.67% 100,819 1999
Opportunities Fund - Class A 1.000000 1.089873 8.99% 0 1998
Fidelity Advisor High Yield Fund - 1.065795 1.149917 7.89% 5,799 1999
Class T 1.000000 1.065795 6.58% 0 1998
Fidelity Capital and Income Fund 4.836063 5.452661 12.75% 58,579 1999
4.468010 4.836063 8.24% 0 1998
Fidelity Contrafund(R) 3.272585 4.076907 24.58% 7,939,844 1999
2.735774 3.272585 19.62% 0 1998
Fidelity Equity - Income Fund 7.699124 8.217016 6.73% 7,000,669 1999
7.136435 7.699124 7.88% 0 1998
Fidelit Growth and Income Portfolio 3.28394 3.611237 9.97% 6,969,605 1999
2.928285 3.283694 12.14% 0 1998
Fidelity Magellan(R) Fund 3.178371 3.926927 23.55% 23,673,464 1999
2.692507 3.178371 18.05% 0 1998
INVESCO Dynamics Fund 1.173045 2.007217 71.11% 1,083,453 1999
1.000000 1.173045 17.30% 818 1998
INVESCO Total Return Fund 1.024207 1.006265 -1.75% 102,981 1999
1.000000 1.024207 2.42% 44 1998
MFS(R) Growth Opportunities Fund - 11.542612 15.270172 32.29% 1,932,941 1999
Class A 1.000000 11.542612 18.60% 4,519 1998
</TABLE>
77
<PAGE> 81
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Massachusetts Investors Growth 22.164689 30.631957 38.20% 261,200 1999
Stock 18.840636 22.16489 17.64% 0 1998
Morgan Stanley Institutional Fund, 1.107260 1.537062 38.82% 38,243 1999
Inc. - Equity Growth Portfolio - 1.000000 1.107260 10.73% 0 1998
Class B
Nationwide(R) Bond Fund - 2.329200 2.255215 -3.18% 43,149 1999
Class D 2.313368 2.329200 0.68% 0 1998
Nationwide(R) Fund - Class D 26.748259 26.580493 -0.63% 430,997 1999
24.556168 26.748259 8.93% 487,464 1998
Nationwide(R) Growth Fund - 4.729683 5.494590 16.17% 990,383 1999
Class D 4.338850 4.729683 9.01% 0
Nationwide(R)Money Market Fund - 3.130815 3.264112 4.26% 3,318,221 1999
Prime Shares* 3.108429 3.130815 0.72% 2,298,866 1998
Nationwide S&P 500 Index Fund - 1.094125 1.305455 19.31% 297,116 1999
Institutional Service Class 1.000000 1.094125 9.41% 116,258 1998
(formerly, Class Y)
Neuberger Berman 1.619095 1.749050 8.03% 842,086 1999
Guardian Fund, Inc. 1.468037 1.619095 10.29% 0 1998
Neuberger Berman Partners Trust 1.042379 1.118102 7.26% 1,652 1999
1.000000 1.042379 4.24% 0 1998
NSAT - Nationwide Small Company 1.007261 1.444867 43.45% 268,592 1999
Fund 1.000000 1.007261 13.39% 384,544 1998
Oppenheimer Global Fund - 1.107029 1.747386 57.84% 227,057 1999
Class A 1.000000 1.107029 10.70% 29,079 1998
Putnam Investors Fund - Class A 24.334769 31.544030 29.63% 2,486,684 1999
20.494371 24.334769 18.74% 0 1998
Putnam Voyager Fund - Class A 4.719627 7.339596 55.51% 3,533,648 1999
3.966904 4.719627 18.98% 0 1998
SEI Index Funds - S&P 500 Index 4.969193 5.979665 20.33% 11,066,988 1999
Portfolio 4.434002 4.969193 12.07% 0 1998
Seligman Growth Fund, Inc. - Class 16.817324 21.820873 29.75% 107,765 1999
A 14.613074 16.817324 15.08% 0 1998
T. Rowe Price International 2.122711 2.845797 34.06% 4,776,405 1999
Stock Fund(R) 1.961173 2.122711 8.24% 0 1998
Templeton Foreign Fund - Class A 1.767586 2.450852 38.66% 2,316,464 1999
1.745596 1.767586 1.26% 2,148,011 1998
Warburg Pincus Emerging Growth 1.059668 1.496693 41.24% 31,745 1999
Fund - Common Class 1.000000 1.059668 18.56% 21,363 1998
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 4.92%.
The Brown Capital Management Small Company Fund was added to the variable
account on October 1, 1999. Therefore, the Condensed Financial Information
reflects the period from October 1, 1999 to December 31, 1999.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
78
<PAGE> 82
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.35%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century Income & Growth - 1.098243 1.20910 17.54% 139,180 1999
Investor Class 1.000000 1.098243 9.82% 0 1998
American Century Growth - Investor 7.954489 10.675688 34.21% 177,055 1999
Class 6.793788 7.954489 17.08% 0 1998
American Century Ultra - Investor 3.380942 4.766080 40.97% 1,308,709 1999
Class 2.860660 3.380942 18.19% 0 1998
American Century: International 1.084903 2.038370 87.88% 125,081 1999
Discovery - Investor Class 1.000000 1.084903 8.49% 0 1998
The Bond Fund of America(sm), Inc. 2.442063 2.489266 1.93% 29,454 1999
2.374466 2.442063 2.85% 0 1998
Delaware Group Decatur Fund, Inc. 3.216581 3.094647 -3.97% 143 1999
Decatur Income Fund - 3.051062 3.216581 5.42% 0 1998
Institutional Class
Dreyfus Appreciation Fund, Inc. 1.080771 1.184347 9.58% 77,549 1999
1.000000 1.080771 8.08% 0 1998
Dreyfus Premier Midcap Stock 1.133951 1.250137 10.25% 733 1999
- - Class A 1.000000 1.133951 13.40% 0 1998
The Dreyfus Premier Third Century 4.581408 5.942379 29.71% 261,622 1999
Fund, Inc. - Class Z 3.943920 4.581408 16.16% 276,300 1998
Dreyfus S&P 500 Index Fund 1.551200 1.858850 19.83% 717,794 1999
1.383586 1.551200 12.11% 0 1998
Evergreen Income and Growth 2.392246 2.774057 15.96% 13,462 1999
Fund - Class Y 2.271604 2.392246 5.31% 0 1998
Federated Bond Fund - Class F 1.019289 0.991970 -2.68% 124 1999
1.000000 1.019289 1.93% 0 1998
Federated U.S. Government 1.307125 1.295754 -0.87% 1,804 1999
Securities Fund: 2-5 Years - 1.309601 1.307125 -0.19% 0 1998
Institutional Shares
Fidelity Asset Manager(TM) 1.753300 1.984605 13.19% 83,541 1999
1.599009 1.753300 9.65% 0 1998
Fidleity Capital & Income Fund 4.836675 5.456089 12.81% 3,640 1999
4.468284 4.836675 8.24% 0 1998
Fidelity Contrafund(R) 3.285403 4.094921 24.64% 720,474 1999
2.746257 3.285403 19.63% 0 1998
Fidelity Equity Income Fund 7.729281 8.253327 6.78% 270,892 1999
7.163780 7.729281 7.89% 0 1998
Fidelity Magellan(R) Fund 3.190817 3.944274 23.61% 533,977 1999
2.702822 3.190817 18.06% 0 1998
Fidelity Advisor Growth 1.089945 1.130500 3.72% 15,210 1999
Opportunities Fund - Class A
1.000000 1.089945 8.99% 0 1998
Fidelity Advisor High Yield Fund - 1.065570 1.150592 7.98% 306 1999
Class T
1.000000 1.065570 6.56% 0 1998
The Growth Fund of America(R), Inc. 4.437077 6.442272 45.19% 21,026 1999
3.751150 4.437077 18.29% 0 1998
</TABLE>
79
<PAGE> 83
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
The Income Fund of America(R), Inc. 2.849125 2.853804 0.16% 25,458 1999
2.698810 2.849129 5.57% 0 1998
INVESCO Equity Income Fund 2.388389 2.684954 12.42% 60,051 1999
(formerly, INVESCO Industrial 2.232020 2.388389 7.01% 0 1998
Income Fund)
INVESCO Dynamics Fund 1.173122 2.008350 71.20% 228,782 1999
1.000000 1.173122 17.31% 0 1998
INVESCO Total Return Fund 1.024274 1.006835 -1.70% 155,683 1999
1.000000 1.024274 2.43% 0 1998
Janus Fund 2.694292 3.950263 46.62% 457,325 1999
2.186480 2.694292 23.23% 0 1998
MFS(R) Growth Opportunities Fund - 11.587826 15.337646 32.36% 5,806 1999
Class A 9.769923 11.587826 18.61% 0 1998
MFS(R) High Income Fund - 6.204334 6.615489 6.63% 574 1999
Class A 5.874013 6.204334 5.62% 0 1998
MAS Funds - Fixed Income 1.420814 1.407184 -0.96% 6,085 1999
Portfolio 1.390786 1.420814 2.16% 0 1998
Morgan Stanley Institutional Fund, 1.107333 1.537930 38.89% 1,216 1999
Inc. - Equity Growth Portfolio - 1.000000 1.107333 10.73% 0 1998
Class B
Nationwide(R) Fund - Class D 26.881104 26.725868 -0.58% 79,358 1999
24.676032 26.881104 8.94% 104,750 1998
Nationwide(R) Growth Fund - 4.748208 5.518868 16.23% 19,758 1999
Class D 4.355475 4.748208 9.02% 0
Nationwide(R) Money Market Fund - 3.142446 3.277883 4.31% 244,130 1999
Prime Shares* 3.119710 3.142446 0.73% 175,079 1998
Nationwide S&P 500 Index Fund - 1.094197 1.306193 19.37% 123,439 1999
Institutional Service Class 1.000000 1.094197 9.42% 0 1998
(formerly, Class Y)
NSAT - Nationwide Small Company 1.024134 1.469803 43.52% 25,917 1999
Fund 0.903129 1.024134 13.40% 18,482 1998
Oppenheimer Global Fund - 1.107101 1.748372 57.92% 32,584 1999
Class A 1.000000 1.107101 10.71% 0 1998
Putnam Investors Fund - Class A 24.430059 31.683372 29.69% 1,241 1999
20.572881 24.430059 18.75% 0 1998
Putnam Voyager Fund - Class A 4.738117 7.372028 55.59% 271,538 1999
3.982108 4.738117 18.99% 0 1998
T. Rowe Price International 2.131029 2.858375 34.13% 56,963 1999
Stock Fund(R) 1.968691 2.131029 8.25% 0 1998
Templeton Foreign Fund - Class A 1.776379 2.464273 38.72% 373,208 1999
1.754131 1.776379 1.27% 365,896 1998
Warburg Pincus Emerging Growth 1.059759 1.497569 41.31% 22 1999
Fund - Common Class 0.893781 1.059759 18.75% 0 1998
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31,1999 was 4.97%.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
80
<PAGE> 84
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.30%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century Income & Growth - 1.098315 1.291640 17.60% 146,747 1999
Investor Class 1.000000 1.098315 9.83% 4,917 1998
American Century Growth - Investor 7.952673 10.678583 34.28% 146,747 1999
Class 1.059651 7.952673 650.50% 261,146 1998
American Century Ultra - Investor 3.380172 4.767375 41.04% 788,095 1999
Class 1.000000 3.380172 18.20% 717,400 1998
American Century: International 1.084974 2.039521 87.98% 14,874 1999
Discovery - Investor Class 1.000000 1.084974 8.50% 0 1998
The Brown Capital Management - Small 1.000000 1.350218 35.02% 8,181 1999
Company Fund
Dreyfus Appreciation Fund, Inc. 1.080842 1.185017 9.64% 161,641 1999
1.000000 1.080842 8.08% 4,977 1998
Dreyfus Premier Midcap Stock 1.134025 1.250844 10.30% 3,091 1999
- - Class A 1.000000 1.134025 13.40% 0 1998
The Dreyfus Premier Third Century 4.575570 5.937771 29.77% 147,027 1999
Fund, Inc. - Class Z 1.000000 4.575570 16.71% 144,811 1998
Fidelity Advisor Growth 1.090017 1.131139 3.77% 918 1999
Opportunities Fund - Class A 1.000000 1.090017 9.00% 0 1998
Fidelity Advisor High Yield Fund - 1.065661 1.151268 8.03% 242 1999
Class T 1.000000 1.065661 6.57% 0 1998
INVESCO Dynamics Fund 1.024324 1.007404 -1.65% 11,842 1999
1.000000 1.024342 2.43% 0 1998
INVESCO Total Return Fund 1.173198 2.009484 71.28% 222,915 1999
1.000000 1.173198 17.32% 0 1998
Janus Fund 2.693678 3.951336 46.69% 928,552 1999
1.000000 2.693678 23.24% 597,789 1998
Morgan Stanley Equity Growth 1.107406 1.538799 38.96% 6,866 1999
Portfolio - Class B 1.000000 1.107406 10.74% 3,268 1998
Nationwide(R) Fund - Class D 26.846869 26.705183 -0.53% 45,608 1999
24.642515 26.846869 8.95% 53,286 1998
Nationwide(R) Money Market Fund - 3.138391 3.275296 4.36% 303,516 1999
Prime Shares* 3.115419 3.138391 0.74% 294,839 1998
Nationwide S&P 500 Index Fund - 1.094268 1.306932 19.43% 8,893 1999
Institutional Service Class 1.000000 1.094268 9.43% 0 1998
(formerly, Class Y)
NSAT - Nationwide Income Fund 1.000000 0.997618 -0.24% 101,913 1999
NSAT - Nationwide Small Company Fund 1.025150 1.471996 43.59% 5,845 1999
0.903948 1.025150 13.41% 19,929 1998
Oppenheimer Global Fund - Class A 1.107174 1.749360 58.00% 6,349 1999
1.000000 1.107174 10.72% 1,060 1998
Putnam Voyager Fund - Class A 4.737037 7.374027 55.67% 216,993 1999
3.980864 4.737037 19.00% 246,793 1998
Templeton Foreign Fund - Class A 1.774115 2.462361 38.79% 245,001 1999
1.000000 1.774115 1.28% 232,860 1998
Warburg Pincus Emerging Growth Fund 1.059850 1.498446 41.38% 141 1999
- - Common Class 0.893782 1.059850 18.58% 0 1998
</TABLE>
81
<PAGE> 85
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.02%.
The Brown Capital Management Small Company Fund and the NSAT-Nationwide Income
Fund were added to the variable account on October 1, 1999. Therefore, the
Condensed Financial Information reflects the period from October 1, 1999 to
December 31, 1999.
The American Century: Value - Investor Class and the Putnam International Growth
Fund - Class A were added to the variable account effective May 1, 2000.
Therefore, no Condensed Financial Information is available.
82
<PAGE> 86
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.25%
ACCUMULATION ACCUMULATION PERCENTAGE NUMBER OF YEAR
UNIT VALUE UNIT VALUE CHANGE IN UNIT ACCUMULATION UNITS
AT BEGINNING AT END VALUE OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD
<S> <C> <C> <C> <C> <C>
American Century: Income & Growth - 1.098387 1.292371 17.66% 186,953 1999
Investor Class
1.000000 1.098387 9.84% 0 1998
American Century: International 1.085045 2.040671 88.07% 498,602 1999
Discovery - Investor Class 1.000000 1.085045 8.50% 0 1998
The Brown Capital Management - Small 1.000000 1.350386 35.04% 2,091 1999
Company Fund
The Dreyfus Premier Third Century Fund, 4.559937 5.920440 29.84% 184,580 1999
Inc. - Class Z 3.924771 4.559937 16.18% 0 1998
Dreyfus Premier Mid Cap Stock Fund - 1.134100 1.251552 10.36% 18,329 1999
Class A 1.000000 1.134100 13.41% 0 1998
Dreyfus Appreciation Fund, Inc. 1.080913 1.185687 9.69% 57,224 1999
1.000000 1.080913 8.09% 0 1998
Fideltiy Advisor Growth Opportunities 1.090088 1.131779 3.82% 17,444 1999
Fund - Class A 1.000000 1.090088 9.01% 0 1998
Fidelity Advisor High Yield Fund - 1.065752 1.151943 8.09% 42,423 1999
Class T 1.000000 1.065752 6.58% 0 1998
INVESCO Dynamics Fund 1.173275 2.010619 71.37% 720,542 1999
1.000000 1.173275 17.33% 0 1998
INVESCO Total Return Fund 1.024409 1.007975 -1.60% 48,323 1999
1.000000 1.024409 2.44% 0 1998
LifeDesigns Series - The Aggressive 1.150978 1.425785 23.88% 50,699 1999
Portfolio 1.000000 1.150978 15.10% 68,325 1998
LifeDesigns Series - The Conservative 1.109060 1.148044 3.52% 109,576 1999
Portfolio 1.000000 1.109060 10.91% 83,356 1998
LifeDesigns Series - The Moderate 1.144675 1.311822 14.60% 7,558 1999
Portfolio 1.000000 1.144675 14.47% 21,387 1998
LifeDesigns Series - The Moderately 1.142200 1.359675 19.04% 51,435 1999
Aggressive Portfolio 1.000000 1.142200 14.22% 43,931 1998
LifeDesigns Series - The Moderately 1.130626 1.238302 9.52% 53,327 1999
Conservative Portfolio 1.000000 1.130626 13.06% 6,709 1998
Morgan Stanley Institutional Fund, Inc. 1.107478 1.539669 39.02% 36,773 1999
- - Equity Growth Portfolio - Class B 1.000000 1.107478 10.75% 0 1998
NSAT - Nationwide Small Company Fund 1.007521 1.447406 43.66% 55,162 1999
1.000000 1.007521 0.75% 0 1998
Nationwide(R) Fund - Class D 26.755178 26.627289 -0.48% 91,485 1999
24.556268 26.755178 8.95% 0 1998
Nationwide(R) Money Market Fund - Prime 3.132003 3.270268 4.41% 2,172,198 1999
Shares* 3.108813 3.132003 0.75% 0 1998
Nationwide S&P 500(R) Index Fund - 1.094340 1.307671 19.49% 29,576 1999
Institutional Service Class 1.000000 1.094340 9.43% 0 1998
(formerly, Class Y)
Neuberger Berman Partners Trust 1.042585 1.120001 7.43% 16,168 1999
1.000000 1.042585 4.26% 0 1998
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.07%.
83
<PAGE> 87
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION PERCENTAGE NUMBER OF YEAR
UNIT VALUE UNIT VALUE CHANGE IN UNIT ACCUMULATION UNITS
AT BEGINNING AT END VALUE OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD
<S> <C> <C> <C> <C> <C>
Oppenheimer Global Fund - Class A 1.107246 1.750348 58.08% 110,037 1999
1.000000 1.107246 10.72% 0 1998
Prestige Balanced Fund - Institutional 1.061629 1.157273 9.01% 8,349 1999
Service Class (formerly, Class Y) 1.000000 1.061629 6.16% 0 1998
Prestige International Fund - 1.092713 1.322937 21.07% 33,534 1999
Institutional Service Class (formerly,
Class Y) 1.000000 1.092713 9.27% 0 1998
Prestige Large Cap Growth Fund - 1.140236 1.533558 34.49% 30,742 1999
Institutional Service Class 1.000000 1.140236 14.02% 0 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.050049 0.998856 -4.88% 16,763 1999
Institutional Service Class 1.000000 1.050049 5.00% 0 1998
(formerly, Class Y)
Prestige Small Cap Fund - Institutional 1.091029 1.292494 18.47% 40,208 1999
Service Class (formerly, Class Y) 1.000000 1.091029 9.10% 0 1998
Templeton Foreign Fund - Class A 1.768043 2.455160 38.86% 585,253 1999
1.745603 1.768043 1.29% 0 1998
Warburg Pincus Emerging Growth Fund - 1.059944 1.499323 41.45% 107,450 1999
Common Class 0.893784 1.059941 18.59% 0 1998
</TABLE>
84
<PAGE> 88
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.20%
ACCUMULATION ACCUMULATION PERCENTAGE NUMBER OF
UNIT VALUE UNIT VALUE CHANGE IN UNIT ACCUMULATION UNITS
AT BEGINNING AT END VALUE OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century: Income & Growth - 1.098459 1.293101 17.72% 21,046 1999
Investor Class 1.000000 1.098459 9.85% 0 1998
American Century: International 1.085116 2.041822 88.17% 39,397 1999
Discovery - Investor Class 1.000000 1.085116 8.51% 0 1998
The Brown Capital Management - Small 1.000000 1.350553 35.06% 6,584 1999
Company Fund
The Dreyfus Premier Third Century Fund, 4.582591 5.952826 29.90% 34,885 1999
Inc. - Class Z 3.943936 4.582591 16.19% 0 1998
Dreyfus Premier Mid Cap Stock Fund - 1.134174 1.252259 10.41% 1,365 1999
Class A 1.000000 1.134174 13.42% 0 1998
Dreyfus Appreciation Fund, Inc. 1.080984 1.186358 9.75% 5,899 1999
1.000000 1.080984 8.10% 0 1998
Federated Bond Fund - Class F 1.019490 0.993656 -2.53% 328 1999
1.000000 1.019490 1.95% 0 1998
Fideltiy Advisor Growth Opportunities 1.090160 1.132419 3.88% 2,559 1999
Fund - Class A 1.000000 1.090160 9.02% 0 1998
Fidelity Advisor High Yield Fund - 1.065843 1.152619 8.14% 52 1999
Class T 1.000000 1.065843 6.58% 0 1998
INVESCO Dynamics Fund 1.173352 2.011755 71.45% 90,653 1999
1.000000 1.173352 17.34% 0 1998
INVESCO Total Return Fund 1.024476 1.008545 -1.56% 24,666 1999
1.000000 1.024476 2.45% 0 1998
LifeDesigns Series - The Aggressive 1.155315 1.431872 23.94% 233,674 1999
Portfolio 1.000000 1.155315 15.53% 11,063 1998
LifeDesigns Series - The Conservative 1.113236 1.152943 3.57% 2,597 1999
Portfolio 1.000000 1.113236 11.32% 14,242 1998
LifeDesigns Series - The Moderate 1.148987 1.317421 14.66% 96,127 1999
Portfolio 1.000000 1.148987 14.90% 43 1998
LifeDesigns Series - The Moderately 1.146503 1.365479 19.10% 137,378 1999
Aggressive Portfolio 1.000000 1.146503 14.65% 94,205 1998
LifeDesigns Series - The Moderately 1.134884 1.243587 9.58% 25,556 1999
Conservative Portfolio 1.000000 1.134884 13.49% 7,860 1998
Morgan Stanley Institutional Fund, Inc. 1.107551 1.540539 39.09% 113 1999
- - Equity Growth Portfolio - Class B 1.000000 1.107551 10.76% 0 1998
NSAT - Nationwide Small Company Fund 1.024398 1.472386 43.73% 23,771 1999
0.903132 1.024398 13.43% 0 1998
Nationwide(R) Fund - Class D 26.888057 26.772920 -0.43% 33,133 1999
24.676133 26.888057 8.96% 0 1998
Nationwide(R) Money Market Fund - Prime 3.143637 3.284062 4.47% 304,873 1999
Shares* 3.120096 3.143637 0.75% 0 1998
Nationwide S&P 500(R) Index Fund - 1.094412 1.308410 19.55% 77,160 1999
Institutional Service Class 1.000000 1.094412 9.44% 0 1998
(formerly, Class Y)
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.12%.
85
<PAGE> 89
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION PERCENTAGE NUMBER OF
UNIT VALUE UNIT VALUE CHANGE IN UNIT ACCUMULATION UNITS
AT BEGINNING AT END VALUE OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Neuberger Berman Partners Trust 1.042653 1.120634 7.48% 32 1999
1.000000 1.042653 4.27% 0 1998
Oppenheimer Global Fund - Class A 1.107319 1.751336 58.16% 6,106 1999
1.000000 1.107319 10.73% 0 1998
Prestige Balanced Fund - Institutional 1.061699 1.157927 9.06% 521 1999
Service Class (formerly, Class Y) 1.000000 1.061699 6.17% 0 1998
Prestige Large Cap Growth Fund - 1.140311 1.534425 34.56% 21,237 1999
Institutional Service Class 1.000000 1.140311 14.03% 0 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.050118 0.999421 -4.83% 504 1999
Institutional Service Class 1.000000 1.050118 5.01% 0 1998
(formerly, Class Y)
Prestige Small Cap Fund - Institutional 1.091101 1.293224 18.52% 10,351 1999
Service Class (formerly, Class Y) 1.000000 1.091101 9.11% 0 1998
Templeton Foreign Fund - Class A 1.776838 2.468606 38.93% 98,253 1999
1.754138 1.776838 1.29% 0 1998
Warburg Pincus Emerging Growth Fund - 1.000000 1.428738 42.87% 10,887 1999
Common Class
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.12%.
86
<PAGE> 90
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE........................................................................0.15%
ACCUMULATION ACCUMULATION PERCENTAGE NUMBER OF
UNIT VALUE UNIT VALUE CHANGE IN ACCUMULATION UNITS
AT BEGINNING AT END UNIT VALUE OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
American Century: Income & Growth 1.098531 1.293832 17.78% 432,773 1999
- - Investor Class 1.000000 1.098531 9.85% 0 1998
American Century: International 1.085187 2.042975 88.26% 4,889,042 1999
Discovery - Investor Class 1.000000 1.085187 8.52% 0 1998
The Dreyfus Premier Third Century 4.560722 5.927377 29.97% 3,233,255 1999
Fund, Inc. - Class Z 3.924782 4.560722 16.20% 0 1998
Dreyfus Premier Mid Cap Stock Fund 1.134248 1.252967 10.47% 118,232 1999
- - Class A 1.000000 1.134248 13.42% 0 1998
Dreyfus Appreciation Fund, Inc. 1.081055 1.187029 9.80% 133,319 1999
1.000000 1.081055 8.11% 0 1998
Federated Bond Fund - Class F 1.019557 0.994218 -2.49% 52,289 1999
1.000000 1.019557 1.96% 0 1998
Fideltiy Advisor Growth 1.090231 1.133060 3.93% 55,638 1999
Opportunities Fund - Class A 1.000000 1.090231 9.02% 0 1998
INVESCO Dynamics Fund 1.173429 2.012890 71.54% 8,448,102 1999
1.000000 1.173429 17.34% 0 1998
LifeDesigns Series - The 1.155248 1.432505 24.00% 54,968 1999
Aggressive Portfolio 1.000000 1.155248 15.52% 14,581 1998
LifeDesigns Series - The 1.113172 1.153453 3.62% 14,747 1999
Conservative Portfolio 1.000000 1.113172 11.32% 1,089 1998
LifeDesigns Series - The Moderate 1.148920 1.318004 14.72% 45,388 1999
Portfolio 1.000000 1.148920 14.89% 8,670 1998
LifeDesigns Series - The 1.146437 1.366083 19.16% 85,891 1999
Moderately Aggressive Portfolio 1.000000 1.146437 14.64% 17,344 1998
LifeDesigns Series - The 1.134818 1.224137 9.63% 23,410 1999
Moderately Conservative Portfolio 1.000000 1.134818 13.48% 4,278 1998
Morgan Stanley Institutional 1.107624 1.541410 39.16% 540,401 1999
Fund, Inc. - Equity Growth 1.000000 1.107624 10.76% 0 1998
Portfolio - Class B
Nationwide(R) Fund - Class D 26.759791 26.658533 -0.38% 1,112,789 1999
24.556335 26.759791 8.97% 0 1998
Nationwide(R) Money Market Fund - 3.132794 3.274374 4.52% 7,211,248 1999
Prime Shares* 3.109069 3.132794 0.76% 0 1998
Nationwide S&P 500(R)Index Fund - 1.094484 1.309150 19.61% 2,082,744 1999
Institutional Service Class 1.000000 1.094484 9.45% 0 1998
Prestige International Fund - 1.092857 1.324432 21.19% 15,758 1999
Institutional Service Class 1.000000 1.092857 9.29% 0 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.050187 0.999986 -4.78% 499 1999
Institutional Service Class 1.000000 1.050187 5.02% 0 1998
(formerly, Class Y)
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.17%.
87
<PAGE> 91
<TABLE>
<CAPTION>
CONDENSED FINANCIAL INFORMATION (CONTINUED)
ACCUMULATION ACCUMULATION PERCENTAGE NUMBER OF
UNIT VALUE UNIT VALUE CHANGE IN ACCUMULATION UNITS
AT BEGINNING AT END UNIT VALUE OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Prestige Small Cap Fund - 1.091172 1.293956 18.58% 77 1999
Institutional Service Class 1.000000 1.091172 9.12% 0 1998
(formerly, Class Y)
Templeton Foreign Fund - Class A 1.768348 2.458037 39.00% 2,411,740 1999
1.745608 1.768348 1.30% 0 1998
</TABLE>
88
<PAGE> 92
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.10%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Prestige Large Cap Growth Fund - 1.140460 1.536159 34.70% 42,978 1999
Institutional Service Class 1.000000 1.140460 14.05% 0 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.050256 1.000552 -4.73% 582 1999
Institutional Service Class 1.000000 1.050256 5.03% 0 1998
(formerly, Class Y)
Prestige Small Cap Fund - 1.091244 1.294687 18.64% 8,132 1999
Institutional Service Class 1.000000 1.091244 9.12% 0 1998
(formerly, Class Y)
Life Designs Series - The 1.151275 1.428292 24.06% 80,158 1999
Aggressive Portfolio 1.000000 1.151275 15.13% 0 1998
Life Designs Series - The 1.142495 1.362067 19.22% 36,740 1999
Moderately Aggressive Portfolio 1.000000 1.142495 14.25% 0 1998
</TABLE>
89
<PAGE> 93
CONDENSED FINANCIAL INFORMATION
<TABLE>
<CAPTION>
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................................................... 0.00%
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE PERCENTAGE ACCUMULATION UNITS
AT BEGINNING AT END CHANGE IN OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD UNIT VALUE END OF THE PERIOD YEAR
<S> <C> <C> <C> <C> <C>
Prestige Balanced Fund - 1.061978 1.160549 9.28% 61,260 1999
Institutional Service Class 1.000000 1.061978 6.20% 0 1998
(formerly, Class Y)
Prestige International Fund - 1.093071 1.326680 21.37% 16,001 1999
Institutional Service Class 1.000000 1.093071 9.31% 0 1998
(formerly, Class Y)
Prestige Large Cap Growth Fund - 1.140610 1.537896 34.83% 150,974 1999
Institutional Service Class 1.000000 1.140610 14.06% 0 1998
(formerly, Class Y)
Prestige Large Cap Value Fund - 1.050394 1.001685 -4.64% 20,014 1999
Institutional Service Class 1.000000 1.050394 5.04% 0 1998
(formerly, Class Y)
Prestige Small Cap Fund - 1.091387 1.296152 18.76% 301,790 1999
Institutional Service Class 1.000000 1.091387 9.14% 0 1998
(formerly, Class Y)
</TABLE>
90
<PAGE> 94
STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 2000
GROUP FLEXIBLE FUND RETIREMENT CONTRACTS ISSUED
BY THE NATIONWIDE DC VARIABLE ACCOUNT OF
NATIONWIDE LIFE INSURANCE COMPANY
This Statement of Additional Information is not a prospectus. It contains
information in addition to and more detailed than set forth in the prospectus
and should be read in conjunction with the prospectus dated May 1, 2000. The
prospectus may be obtained from Nationwide Life Insurance Company, P.O. Box
16766, One Nationwide Plaza, Columbus, Ohio 43216, or by calling 1-800-545-4730
(TTD: 1-800-848-0833).
TABLE OF CONTENTS
PAGE
General Information and History...............................................1
Services......................................................................1
Purchase of Securities Being Offered..........................................2
Underwriters..................................................................2
Calculation of Performance....................................................2
Annuity Payments..............................................................3
Financial Statements..........................................................4
GENERAL INFORMATION AND HISTORY
The Nationwide DC Variable Account ("variable account") is a separate investment
account of Nationwide Life Insurance Company ("Nationwide"). Nationwide is a
member of the Nationwide group of companies and all of Nationwide's common stock
is owned by Nationwide Financial Services, Inc. ("NFS"), a holding company. NFS
has two classes of common stock outstanding with different voting rights
enabling Nationwide Corporation (the holder of all of the outstanding Class B
Common Stock) to control NFS. Nationwide Corporation is a holding company as
well. All of its common stock is held by Nationwide Mutual Insurance Company
(95.24%) and Nationwide Mutual Fire Insurance Company (4.76%), the ultimate
controlling persons of Nationwide group of companies. Nationwide is one of
America's largest insurance and financial services family of companies, with
combined assets of over $120 billion as of December 31, 1999.
SERVICES
Nationwide, which has responsibility for administration of the contracts and the
variable account, maintains records of the name, address, taxpayer
identification number, and other pertinent information for each contract owner
and the number and type of contract issued to each contract owner and records
with respect to the contract value of each contract.
All assets of the variable account are held in custody for safekeeping by
Nationwide. The assets of each sub-account will be kept physically segregated
and held separate and apart from assets of other sub-accounts and from assets of
any other firm, person, or corporation. Nationwide will maintain a record of all
purchases and redemption of shares of the underlying mutual fund held in each
sub-account.
Nationwide, or affiliates of Nationwide, may have entered into agreements with
either the investment adviser or distributor of the underlying mutual funds. The
agreements relate to administrative services furnished by Nationwide or an
affiliate of Nationwide and provide for an annual fee based on the average
aggregate net assets of the variable account (and other separate accounts of
Nationwide or life insurance company subsidiaries of Nationwide) invested in
particular underlying mutual funds. These fees in no way affect the net asset
value of the underlying mutual funds or fees paid by the contract owner.
1
<PAGE> 95
The audited financial statements have been included herein in reliance upon the
reports of KPMG LLP, independent certified public accountants, Two Nationwide
Plaza, Columbus, Ohio 43215, and upon the authority of said firm as experts in
accounting and auditing.
PURCHASE OF SECURITIES BEING OFFERED
The contracts will be sold by licensed insurance agents in the states where the
contracts may be lawfully sold. Agents are registered representatives of
broker-dealers registered under the Securities Exchange Act of 1934 who are
members of the National Association of Securities Dealers, Inc.
For those plans which provide this contract and the Nationwide's Group Fixed
Fund Retirement contract, the contract owner, or the participant if the plan so
provides, may exchange accumulation units between any sub-account and the
deposit fund of the Group Fixed Fund Retirement contract. Exchanges from the
deposit fund to any sub-account will be subject to the limitations of the Group
Fixed Fund Retirement contract. Exchanges will be effective when received in
good order at Nationwide's home office.
UNDERWRITERS
The contracts, which are offered continuously, are distributed by Nationwide
Investment Services Corporation ("NISC"), Two Nationwide Plaza, Columbus, Ohio
43215. NISC is a wholly owned subsidiary of Nationwide. During the fiscal years
ended December 31, 1999, 1998, and 1997, no underwriting commissions were paid
by Nationwide to NISC.
CALCULATION OF PERFORMANCE
Any current yield quotations of the Nationwide Money Market Fund - Prime Shares,
the Dreyfus Cash Management Fund - Class A, and the Nationwide Separate Account
Trust- Money Market Fund subject to Rule 482 of the Securities Act of 1933, will
consist of a seven calendar day historical yield, carried at least to the
nearest hundredth of a percent. The yield will be calculated by determining the
net change, exclusive of capital changes, in the value of a hypothetical
pre-existing account having a balance of one accumulation units at the beginning
of the base period, subtracting a hypothetical charge reflecting deductions from
contract owner accounts, and dividing the net change in account value by the
value of the account at the beginning of the period to obtain a base period
return, and multiplying the base period return by (365/7) or (366/7) in a leap
year. At December 31, 1999, the Nationwide Money Market Fund - Prime Shares, the
Dreyfus Cash Management Fund - Class A, and NSAT-Money Market Fund - Prime
Shares seven-day current yield was 4.36%, 4.68%, and 4.43%, respectively. The
Nationwide Money Market Fund - Prime Shares, the Dreyfus Cash Management Fund -
Class A, and NSAT Money Market Fund seven-day effective yield is computed
similarly but includes the effect of assumed compounding on an annualized basis
of the current yield quotations of the underlying mutual fund, and at December
31, 1999 were 4.43%, 4.79% and 4.53%, respectively.
The Nationwide Money Market Fund - Prime Shares, the Dreyfus Cash Management
Fund, Nationwide Separate Account Trust - Money Market Fund Sub-Account yield
and effective yield will fluctuate daily. Actual yields will depend on factors
such as the type of instruments in the underlying mutual funds' portfolios,
portfolio quality and average maturity, changes in interest rates, and the
underlying mutual funds' expenses. Although each sub-account determines its
yield on the basis of a seven calendar day period, it may use a different time
period on occasion. The yield quotes may reflect the expense limitation
described under "Investment Manager and Other Services" in the underlying mutual
funds' Statement of Additional Information. There is no assurance that the
yields quoted on any given occasion will remain in effect for any period of time
and there is no guarantee that the net asset values will remain constant. It
should be noted that a contract owner's investment in the Nationwide Money
Market Fund - Prime Shares Sub-Account, the Dreyfus Cash Management Fund - Class
A Sub-Account, Nationwide Separate Account Trust Money Market Fund Sub-Account
are not guaranteed or insured. Yields of other money market funds may not be
comparable if a different base period or another method of calculation is used.
2
<PAGE> 96
Nationwide may, from time to time, advertise several types of historical
performance of the sub-accounts. Nationwide may advertise for the sub-account's
standardized "average annual total return," calculated in a manner prescribed by
the SEC, and nonstandardized "total return." "Average annual total return"
illustrates the percentage rate of return of a hypothetical initial investment
of $1,000 for the most recent one, five and ten year periods, or for a period
covering the time the underlying mutual fund option has been available in the
variable account if the underlying mutual fund option has not been available for
the prescribed periods. THIS CALCULATION REFLECTS THE DEDUCTION OF ALL
APPLICABLE CHARGES MADE TO THE CONTRACTS EXCEPT FOR PREMIUM TAXES, WHICH MAY BE
IMPOSED BY CERTAIN STATES.
Nonstandardized "total return," calculated similar to standardized "average
annual total return," illustrates the percentage rate of return of a
hypothetical initial investment of $10,000 for the most recent one, five and ten
year periods, or for a period covering the time the underlying mutual fund
option has been in existence. For those underlying mutual fund options which
have not been held as sub-accounts for one of prescribed periods, the
nonstandardized total return illustrations will show the investment performance
such underlying mutual fund options would have achieved (reduced by the same
charges except the Participant Account Maintenance Charge and CDSC) had such
underlying mutual fund options been available in the variable account for the
periods quoted. THE CDSC IS NOT REFLECTED BECAUSE THE CONTRACTS ARE DESIGNED FOR
LONG TERM INVESTMENT. THE CDSC, IF REFLECTED, WOULD DECREASE THE LEVEL OF
PERFORMANCE. AN INITIAL INVESTMENT OF $10,000 IS ASSUMED BECAUSE THAT AMOUNT
MORE CLOSELY APPROXIMATES THE SIZE OF A TYPICAL CONTRACT THAN DOES THE $1,000
ASSUMPTION USED IN CALCULATING THE STANDARDIZED AVERAGE ANNUAL TOTAL RETURN
QUOTATIONS.
The standardized average annual total return and nonstandardized total return
quotations reflected below are calculated as described in this section using
underlying mutual fund performance for the period ended December 31, 1999.
However, Nationwide generally provides performance quotations on a more frequent
basis, the results of which could reflect better or worse results than show
below. The quotations and other comparative material advertised by Nationwide
are based upon historical earnings and are not intended to represent or
guarantee future results. A contract owner's contract value at redemption may be
more or less than the original cost.
If the underlying mutual fund has been available in the variable account for
less than one year (or if the underlying mutual fund has been effective for less
than one year) standardized and non-standardized performance is non-annualized.
ANNUITY PAYMENTS
See "Retirement Income Payments" located in the prospectus.
3
<PAGE> 97
<PAGE> 1
INDEPENDENT AUDITORS' REPORT
The Board of Directors of Nationwide Life Insurance Company and
Contract Owners of Nationwide DC Variable Account:
We have audited the accompanying statement of assets, liabilities and
contract owners' equity of Nationwide DC Variable Account (comprised of the
sub-accounts listed in note 1(b)) (collectively, "the Account") as of December
31, 1999, 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 Account'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, 1999, 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 the Account as of December
31, 1999, 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 18, 2000
<PAGE> 2
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
DECEMBER 31, 1999
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
AIM Equity Funds, Inc. - AIM Constellation Fund - Institutional Class (AIMCon)
301,124 shares (cost $9,624,017) ................................................... $ 12,728,498
American Century: Income & Growth Fund (ACIncGro)
278,918 shares (cost $8,526,589) ................................................... 9,497,167
American Century: Twentieth Century Growth Fund (ACTCGro)
8,670,777 shares (cost $218,724,727) ............................................... 279,892,679
American Century: Twentieth Century International Discovery Fund (ACTCIntDis)
1,309,767 shares (cost $20,388,299) ................................................ 22,475,599
American Century: Twentieth Century Select Fund (ACTCSel)
88,998 shares (cost $4,129,345) .................................................... 4,688,400
American Century: Twentieth Century Ultra Fund (ACTCUltra)
16,137,255 shares (cost $491,044,636) .............................................. 738,763,536
American Century VP - American Century VP Balanced (ACVPBal)
3,292 shares (cost $24,456) ........................................................ 25,646
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
8,596 shares (cost $84,112) ........................................................ 127,565
The Bond Fund of America(SM), Inc. (BdFdAm)
1,340,956 shares (cost $18,065,535) ................................................ 17,405,607
Brown Capital Management - Small Company Fund (BrnCapSmCo)
6,049 shares (cost $174,790) ....................................................... 173,613
Davis New York Venture Fund, Inc. - Class A (DNYVenFd)
11,998 shares (cost $288,550) ...................................................... 345,061
Delaware Group Decatur Fund, Inc. -
Decatur Income Fund Institutional Class (DeDecInc)
14,744 shares (cost $281,878) ....................................................... 245,778
Dreyfus Appreciation Fund, Inc. (DryApp)
105,945 shares (cost $4,593,620) ................................................... 4,844,853
Dreyfus Cash Management - Class A (DryCsMgt)
183,489 shares (cost $183,489) ..................................................... 183,489
Dreyfus Premier Midcap Stock - Class A (DryPreMCap)
37,142 shares (cost $625,216) ...................................................... 670,048
Dreyfus S&P 500 Index Fund (Dry500Ix)
2,571,782 shares (cost $87,798,175) ................................................ 110,355,172
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
1,000 shares (cost $28,878) ........................................................ 39,085
Dreyfus Stock Index Fund (DryStkIx)
4,908 shares (cost $158,001) ....................................................... 188,694
The Dreyfus Third Century Fund, Inc. (Dry3dCen)
5,411,350 shares (cost $60,637,885) ................................................ 78,735,143
</TABLE>
(Continued)
<PAGE> 3
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C>
The Evergreen Income and Growth Fund - Class Y (EvIncGro)
169,467 shares (cost $3,465,403) ................................................... 3,792,661
Federated Investment Series Funds, Inc. - Federated Bond Fund - Class F (FedBdFd)
177,914 shares (cost $1,704,395) ................................................... 1,604,781
Federated U.S. Government Securities Fund: 2-5 Years -
Institutional Shares (FedUSGvt)
693,895 shares (cost $7,473,721) .................................................... 7,181,811
Fidelity Advisor Growth Opportunities Fund - Class Y (FAGrOppA)
56,572 shares (cost $2,806,530) .................................................... 2,611,343
Fidelity Advisor High Yield Fund - Class T (FAHiYld)
64,493 shares (cost $747,399) ...................................................... 733,284
Fidelity Asset Manager(TM)(FidAsMgr)
708,187 shares (cost $12,719,276) .................................................. 13,016,479
Fidelity Capital & Income Fund (FidCapInc)
136,243 shares (cost $1,284,773) ................................................... 1,265,696
Fidelity Contrafund (FidContr)
8,500,428 shares (cost $406,451,098) ............................................... 510,195,662
Fidelity Equity - Income Fund (FidEqInc)
5,713,382 shares (cost $251,482,498) ............................................... 305,551,679
Fidelity Growth & Income Portfolio (FidGrInc)
533,690 shares (cost $22,635,473) .................................................. 25,168,843
Fidelity Magellan(R) Fund (FidMgln)
3,073,504 shares (cost $282,871,774) ............................................... 419,932,853
Fidelity VIP Fund II - Asset Manager Portfolio (FidVIPAM)
3,379 shares (cost $54,901) ........................................................ 63,077
Fidelity VIP Fund - Equity-Income Portfolio (FidVIPEI)
9,134 shares (cost $210,980) ....................................................... 234,832
Fidelity VIP Fund - Growth Portfolio (FidVIPGr)
6,683 shares (cost $240,386) ....................................................... 367,071
Fidelity VIP Fund - High Income Portfolio (FidVIPHI)
2,900 shares (cost $34,990) ........................................................ 32,796
Fidelity VIP Fund - Overseas Portfolio (FidVIPOv)
7,065 shares (cost $135,100) ....................................................... 193,861
The Growth Fund of America(R), Inc. (GroFdAm)
1,200,995 shares (cost $25,490,630) ................................................ 34,996,986
The Income Fund of America(R), Inc. (IncFdAm)
1,241,697 shares (cost $21,222,346) ................................................ 19,544,304
INVESCO Dynamics Fund, Inc. (InvDynam)
1,691,907 shares (cost $36,314,632) ................................................ 43,752,708
INVESCO Industrial Income Fund, Inc. (InvIndInc)
2,044,840 shares (cost $29,580,787) ................................................ 31,183,803
INVESCO Total Return Fund (InvTotRet)
48,164 shares (cost $1,504,707) .................................................... 1,394,828
Janus Fund (JanFund)
7,594,231 shares (cost $268,823,383) ............................................... 334,525,892
Janus Worldwide Fund (JanWrldwde)
27,774 shares (cost $1,351,259) .................................................... 2,122,732
</TABLE>
<PAGE> 4
<TABLE>
<S> <C>
MAS Funds - Fixed Income Portfolio (MASFIP)
588,481 shares (cost $6,808,668) ................................................... 6,408,561
Massachusetts Investors Growth Stock Fund - Class A (MFSGrStk)
722,309 shares (cost $9,082,783) ................................................... 14,684,549
MFS(R) Growth Opportunities Fund - Class A (MFSGrOpp)
2,302,451 shares (cost $31,605,416) ................................................ 43,907,748
MFS(R) High Income Fund - Class A (MFSHiInc)
955,640 shares (cost $4,987,436) ................................................... 4,768,646
Morgan Stanley Institutional Fund, Inc. - Equity Growth Portfolio - Class B (MSIEqGroB)
85,706 shares (cost $1,949,479) .................................................... 2,134,086
NAAT - The Aggressive Portfolio (NAATAggr)
323,960 shares (cost $3,667,012) ................................................... 4,545,164
NAAT - The Conservative Portfolio (NAATCons)
125,002 shares (cost $1,360,458) ................................................... 1,366,267
NAAT - The Moderate Portfolio (NAATMod)
279,564 shares (cost $3,150,409) ................................................... 3,597,989
NAAT - The Moderately Aggressive Portfolio (NAATModAgg)
267,756 shares (cost $3,045,188) ................................................... 3,566,510
NAAT - The Moderately Conservative Portfolio (NAATModCon)
117,533 shares (cost $1,317,756) ................................................... 1,410,398
Nationwide(R) Bond Fund - Class D (NWBdFd)
29,266 shares (cost $279,448) ...................................................... 261,056
Nationwide(R) Fund - Class D (NWFund)
5,937,663 shares (cost $169,547,299) ............................................... 178,129,893
Nationwide(R) Growth Fund - Class D (NWGroFd)
877,474 shares (cost $13,752,918) .................................................. 15,285,595
Nationwide(R) Money Market Fund (NWMyMkt)
118,890,423 shares (cost $118,890,423) ............................................. 118,890,423
Nationwide(R) S&P 500 Index Fund - Class Y (NWIndxFdY)
890,149 shares (cost $10,518,556) .................................................. 11,420,608
Nationwide(R) Separate Account Trust - Government Bond Fund (NSATGvtBd)
1,911 shares (cost $21,407) ........................................................ 20,615
Nationwide(R) Separate Account Trust - Income Fund (NSATInc)
11,645 shares (cost $113,703) ...................................................... 111,791
Nationwide(R) Separate Account Trust - Money Market Fund (NSATMyMkt)
122,009 shares (cost $122,009) ..................................................... 122,009
Nationwide(R) Separate Account Trust - Small Company Fund (NSATSmCo)
243,599 shares (cost $4,069,561) ................................................... 5,388,410
Nationwide(R) Separate Account Trust - Total Return Fund (NSATTotRe)
8,748 shares (cost $135,303) ....................................................... 164,553
Neuberger & Berman Advisors Management Trust - Growth Portfolio (NBAMTGro)
1,771 shares (cost $44,512) ........................................................ 65,994
Neuberger & Berman Advisers Management Trust -
Limited Maturity Bond Portfolio (NBAMTLMat)
982 shares (cost $13,369) ........................................................... 13,001
Neuberger & Berman Advisors Management Trust - Partners Portfolio (NBAMTPart)
3,721 shares (cost $70,448) ........................................................ 73,076
Neuberger & Berman Equity Funds - Guardian Fund (NBGuard)
79,614 shares (cost $1,784,467) .................................................... 1,472,859
</TABLE>
(Continued)
<PAGE> 5
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C>
Neuberger & Berman Equity Funds - Manhattan Fund (NBManhFd)
22,780 shares (cost $267,114) ...................................................... 380,195
Neuberger & Berman Equity Trust - Partners Fund (NBPartTr)
10,550 shares (cost $203,609) ...................................................... 189,684
Prestige Balanced Fund - Class Y (PrBalY)
52,411 shares (cost $581,584) ...................................................... 588,050
Prestige International Fund - Class Y (PrIntY)
27,928 shares (cost $321,668) ...................................................... 352,455
Prestige Large Cap Growth Fund - Class Y (PrLgCapGrY)
153,890 shares (cost $2,002,287) ................................................... 2,374,515
Prestige Large Cap Value Fund - Class Y (PrLgCpValY)
22,997 shares (cost $244,660) ...................................................... 229,283
Prestige Small Cap Fund - Class Y (PrSmCapY)
96,171 shares (cost $1,102,014) .................................................... 1,228,098
Oppenheimer Global Fund - Class A (OppGlob)
63,183 shares (cost $3,222,222) .................................................... 3,952,117
Putnam Investors Fund - Class A (PutInvFd)
5,313,703 shares (cost $61,704,545) ................................................ 101,757,411
Putnam Voyager Fund - Class A (PutVoyFd)
11,985,420 shares (cost $237,279,545) .............................................. 371,068,598
SEI Index Funds - S&P 500 Index Portfolio (SEI500Ix)
1,507,838 shares (cost $56,040,511) ................................................ 68,606,612
Seligman Growth Fund, Inc. - Class A (SelGroFd)
532,867 shares (cost $3,158,503) ................................................... 4,593,316
T. Rowe Price International Funds, Inc. - International Stock Fund(R)(TRIntStk)
2,560,438 shares (cost $41,366,598) ................................................ 48,725,142
Templeton Foreign Fund - Class I (TemForFd)
7,458,177 shares (cost $72,290,444) ................................................ 83,680,747
Warburg Pincus Emerging Growth Fund - Common Shares (WPEmGro)
25,278 shares (cost $1,108,005) .................................................... 1,260,381
--------------
Total investments ............................................................... 4,147,650,020
Accounts receivable ...................................................................... 220,149
--------------
Total assets .................................................................... 4,147,870,169
ACCOUNTS PAYABLE ............................................................................ 390,045
--------------
CONTRACT OWNERS' EQUITY (NOTE 4) ............................................................ $4,147,480,124
==============
</TABLE>
See accompanying notes to financial statements
<PAGE> 6
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
TOTAL AIMCon
---------------------------------- -----------------------------
1999 1998 1999 1998
--------------- ------------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 23,976,555 20,651,143 - -
Mortality and expense charges (note 2) .......... - (3,556,112) - (13,212)
Administration charge (note 2):
Tier I ................................. - (1,675,650) - (2,695)
Tier II ................................ - (484,483) - -
Tier III ............................... - (168,929) - -
Tier IV ................................ - (64,112) - -
Tier V ................................. - (194,057) - (3,065)
Variable account fee (notes 2 and 5) ............ (26,195,045) (13,750,583) (44,028) (30,654)
--------------- ------------- ---------- ---------
Net investment activity ...................... (2,218,490) 757,217 (44,028) (49,626)
Proceeds from mutual fund shares sold ........... 660,364,581 428,065,379 3,916,574 7,850,258
Cost of mutual fund shares sold ................. (538,034,249) (360,005,241) (3,207,801) (7,639,203)
--------------- ------------- ---------- ---------
Realized gain (loss) on investments .......... 122,330,332 68,060,138 708,773 211,055
Change in unrealized gain (loss) on investments . 435,944,287 292,964,663 2,203,245 1,124,581
--------------- ------------- ---------- ---------
Net gain (loss) on investments ............... 558,274,619 361,024,801 2,912,018 1,335,636
--------------- ------------- ---------- ---------
Reinvested capital gains ........................ 298,394,120 180,025,465 908,257 198,951
--------------- ------------- ---------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 854,450,249 541,807,483 3,776,247 1,484,961
--------------- ------------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 651,182,936 613,394,800 2,479,769 3,679,541
Transfers between funds ......................... - - (1,372,079) (1,949,570)
Redemptions ..................................... (228,988,141) (258,709,862) (470,232) (4,490,445)
Annual contract maintenance charge (note 2) ..... (6,874) (2,861) - -
Contingent deferred sales charges (note 2) ...... (6,812) (1,717) - -
Adjustments to maintain reserves ................ (163,414) 423,368 28 233
--------------- ------------- ---------- ---------
Net equity transactions .................... 422,017,695 355,103,728 637,486 (2,760,241)
NET CHANGE IN CONTRACT OWNERS'EQUITY .............. 1,276,467,944 896,911,211 4,413,733 (1,275,280)
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 2,871,012,180 1,974,100,969 8,314,877 9,590,157
--------------- ------------- ---------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 4,147,480,124 2,871,012,180 12,728,610 8,314,877
=============== ============= ========== =========
<CAPTION>
AIMWein ACIncGro
----------------------------- ----------------------------
1999 1998 1999 1998
----------- ---------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ - - 66,649 364
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) ............ - - (36,858) (61)
----------- ---------- --------- -------
Net investment activity ...................... - - 29,791 303
Proceeds from mutual fund shares sold ........... - 407 829,042 1,365
Cost of mutual fund shares sold ................. - (450) (783,016) (1,364)
----------- ---------- --------- -------
Realized gain (loss) on investments .......... - (43) 46,026 1
Change in unrealized gain (loss) on investments . - - 967,330 3,248
----------- ---------- --------- -------
Net gain (loss) on investments ............... - (43) 1,013,356 3,249
----------- ---------- --------- -------
Reinvested capital gains ........................ - - 8,652 4,510
----------- ---------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... - (43) 1,051,799 8,062
----------- ---------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. - - 4,099,934 28,106
Transfers between funds ......................... - - 4,519,592 219,798
Redemptions ..................................... - - (430,139) -
Annual contract maintenance charge (note 2) ..... - - (5) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ - 43 (29) 39
----------- ---------- --------- -------
Net equity transactions .................... - 43 8,189,353 247,943
NET CHANGE IN CONTRACT OWNERS'EQUITY .............. - - 9,241,152 256,005
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... - - 256,005 -
----------- ---------- --------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ - - 9,497,157 256,005
=========== ========== ========= =======
</TABLE>
(Continued)
<PAGE> 7
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES
IN CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
ACTCGro ACTCIntDis
------------------------------ ---------------------------
1999 1998 1999 1998
------------- ----------- ---------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - - -
Mortality and expense charges (note 2) .......... - (245,696) - -
Administration charge (note 2):
Tier I ................................. - (98,801) - -
Tier II ................................ - (35,121) - -
Tier III ............................... - (10,512) - -
Tier IV ................................ - (3,181) - -
Tier V ................................. - (19,963) - -
Variable account fee (notes 2 and 5) ............ (1,782,366) (933,529) (21,461) (91)
------------- ----------- ---------- -------
Net investment activity ...................... (1,782,366) (1,346,803) (21,461) (91)
Proceeds from mutual fund shares sold ........... 39,541,017 18,769,032 21,837,312 13,419
Cost of mutual fund shares sold ................. (28,379,323) (15,992,186) (18,766,339) (13,089)
------------- ----------- ---------- -------
Realized gain (loss) on investments .......... 11,161,694 2,776,846 3,070,973 330
Change in unrealized gain (loss) on investments . 29,612,632 16,196,046 2,080,650 6,649
------------- ----------- ---------- -------
Net gain (loss) on investments ............... 40,774,326 18,972,892 5,151,623 6,979
------------- ----------- ---------- -------
Reinvested capital gains ........................ 31,660,092 33,574,173 926,166 483
------------- ----------- ---------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 70,652,052 51,200,262 6,056,328 7,371
------------- ----------- ---------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 28,917,165 23,250,889 2,196,323 6,191
Transfers between funds ......................... (9,593,785) 8,354,144 14,513,928 167,162
Redemptions ..................................... (15,142,302) (17,504,524) (471,731) -
Annual contract maintenance charge (note 2) ..... (636) (5) (5) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (247,303) 5,720 112 36
------------- ----------- ---------- -------
Net equity transactions .................... 3,933,139 14,106,224 16,238,627 173,389
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 74,585,191 65,306,486 22,294,955 180,760
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 205,062,510 139,756,024 180,760 -
------------- ----------- ---------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 279,647,701 205,062,510 22,475,715 180,760
============= =========== ========== =======
<CAPTION>
ACTCIntlGr ACTCSel
-------------------------- --------------------------
1999 1998 1999 1998
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ - - - 9,928
Mortality and expense charges (note 2) .......... - (2) - (4,167)
Administration charge (note 2):
Tier I ................................. - (2) - (122)
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - (1,613)
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ - - (26,970) (13,301)
---------- --------- --------- ---------
Net investment activity ...................... - (4) (26,970) (9,275)
Proceeds from mutual fund shares sold ........... - 11,135 706,990 487,141
Cost of mutual fund shares sold ................. - (10,717) (468,938) (320,438)
---------- --------- --------- ---------
Realized gain (loss) on investments .......... - 418 238,052 166,703
Change in unrealized gain (loss) on investments . - - 171,720 121,947
---------- --------- --------- ---------
Net gain (loss) on investments ............... - 418 409,772 288,650
---------- --------- --------- ---------
Reinvested capital gains ........................ - - 414,627 576,863
---------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... - 414 797,429 856,238
---------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. - 10,713 564,230 310,577
Transfers between funds ......................... - - 213,654 104,612
Redemptions ..................................... - (11,133) (296,827) (156,908)
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ - 6 (65) 428
---------- --------- --------- ---------
Net equity transactions .................... - (414) 480,992 258,709
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. - - 1,278,421 1,114,947
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... - - 3,409,830 2,294,883
---------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ - - 4,688,251 3,409,830
========== ========= ========= =========
</TABLE>
<PAGE> 8
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
ACTCUltra ACVPBal
------------------------------ -----------------------
1999 1998 1999 1998
------------- ----------- ------ ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ - - 285 135
Mortality and expense charges (note 2) .......... - (590,177) - (12)
Administration charge (note 2):
Tier I ................................. - (289,702) - (11)
Tier II ................................ - (78,787) - -
Tier III ............................... - (33,584) - -
Tier IV ................................ - (8,689) - -
Tier V ................................. - (27,632) - -
Variable account fee (notes 2 and 5) ............ (4,658,765) (2,343,288) (195) (69)
------------- ----------- ------ ------
Net investment activity ...................... (4,658,765) (3,371,859) 90 43
Proceeds from mutual fund shares sold ........... 39,165,641 41,641,653 - -
Cost of mutual fund shares sold ................. (20,699,979) (27,930,230) - -
------------- ----------- ------ ------
Realized gain (loss) on investments .......... 18,465,662 13,711,423 - -
Change in unrealized gain (loss) on investments . 174,542,713 63,370,686 (65) 445
------------- ----------- ------ ------
Net gain (loss) on investments ............... 193,008,375 77,082,109 (65) 445
------------- ----------- ------ ------
Reinvested capital gains ........................ 21,526,551 41,328,459 1,964 835
------------- ----------- ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 209,876,161 115,038,709 1,989 1,323
------------- ----------- ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 97,019,057 92,879,284 5,441 5,501
Transfers between funds ......................... (18,107,812) (11,404,055) 4,547 -
Redemptions ..................................... (36,790,354) (44,419,854) - -
Annual contract maintenance charge (note 2) ..... (731) (24) - -
Contingent deferred sales charges (note 2) ...... (1,225) (5) - -
Adjustments to maintain reserves ................ 7,661 12,001 - (1)
------------- ----------- ------ ------
Net equity transactions .................... 42,126,596 37,067,347 9,988 5,500
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 252,002,757 152,106,056 11,977 6,823
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 486,769,512 334,663,456 13,664 6,841
------------- ----------- ------ ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 738,772,269 486,769,512 25,641 13,664
============= =========== ====== ======
<CAPTION>
ACVPCapAp BdFdAm
------------------------ ----------------------------
1999 1998 1999 1998
------- ------ ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... - - 1,257,587 1,072,397
Mortality and expense charges (note 2) .......... - (126) - (22,352)
Administration charge (note 2):
Tier I ................................. - (114) - (12,086)
Tier II ................................ - - - (3,155)
Tier III ............................... - - - (903)
Tier IV ................................ - - - (97)
Tier V ................................. - - - (970)
Variable account fee (notes 2 and 5) ............ (827) (453) (147,650) (96,999)
------- ------ ---------- ----------
Net investment activity ...................... (827) (693) 1,109,937 935,835
Proceeds from mutual fund shares sold ........... 1,603 18,530 10,149,410 6,379,676
Cost of mutual fund shares sold ................. (1,677) (23,743) (10,627,824) (6,310,382)
------- ------ ---------- ----------
Realized gain (loss) on investments .......... (74) (5,213) (478,414) 69,294
Change in unrealized gain (loss) on investments . 49,753 (1,486) (367,432) (526,637)
------- ------ ---------- ----------
Net gain (loss) on investments ............... 49,679 (6,699) (845,846) (457,343)
------- ------ ---------- ----------
Reinvested capital gains ........................ - 3,694 - 166,021
------- ------ ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 48,852 (3,698) 264,091 644,513
------- ------ ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 5,267 16,440 2,249,427 4,402,447
Transfers between funds ......................... - (15,860) (2,123,884) 2,903,996
Redemptions ..................................... (1,034) (972) (1,760,769) (1,653,020)
Annual contract maintenance charge (note 2) ..... (1) (1) (39) (7)
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (8) 1 511 (453)
------- ------ ---------- ----------
Net equity transactions .................... 4,224 (392) (1,634,754) 5,652,963
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 53,076 (4,090) (1,370,663) 6,297,476
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 74,477 78,567 18,775,654 12,478,178
------- ------ ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR................ 127,553 74,477 17,404,991 18,775,654
======= ====== ========== ==========
</TABLE>
(Continued)
<PAGE> 9
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
BrnCapSmCo DNYVenFd
------------------------ ---------------------
1999 1998 1999 1998
---------- -------- ------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - 30 3,675
Mortality and expense charges (note 2) .......... - - - (719)
Administration charge (note 2):
Tier I ................................. - - - -
Tier II ................................ - - - (576)
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (52) - (3,306) (2,375)
---------- -------- ------- -------
Net investment activity ...................... (52) - (3,276) 5
Proceeds from mutual fund shares sold ........... 54,236 - 108,105 238,516
Cost of mutual fund shares sold ................. (45,129) - (90,663) (242,635)
---------- -------- ------- -------
Realized gain (loss) on investments .......... 9,107 - 17,442 (4,119)
Change in unrealized gain (loss) on investments . (1,177) - 31,094 41,346
---------- -------- ------- -------
Net gain (loss) on investments ............... 7,930 - 48,536 37,227
---------- -------- ------- -------
Reinvested capital gains ........................ 14,199 - 7,465 13,062
---------- -------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 22,077 - 52,725 50,294
---------- -------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,415 - - 61,821
Transfers between funds ......................... 149,203 - 2,070 (93,497)
Redemptions ..................................... (82) - (60,143) (104,253)
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (3) - (11) (9,951)
---------- -------- ------- -------
Net equity transactions .................... 151,533 - (58,084) (145,880)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 173,610 - (5,359) (95,586)
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... - - 350,427 446,013
---------- -------- ------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 173,610 - 345,068 350,427
========== ======== ======= =======
<CAPTION>
DeDecInc DryApp
--------------------- -----------------------
1999 1998 1999 1998
------- ------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 8,372 8,519 24,131 3,615
Mortality and expense charges (note 2) .......... - (495) - -
Administration charge (note 2):
Tier I ................................. - (345) - -
Tier II ................................ - (64) - -
Tier III ............................... - (19) - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (2,659) (1,890) (23,612) (363)
------- ------- --------- -------
Net investment activity ...................... 5,713 5,706 519 3,252
Proceeds from mutual fund shares sold ........... 86,134 21,772 776,158 42,324
Cost of mutual fund shares sold ................. (78,269) (17,747) (717,320) (41,547)
------- ------- --------- -------
Realized gain (loss) on investments .......... 7,865 4,025 58,838 777
Change in unrealized gain (loss) on investments . (31,337) (31,371) 231,072 20,162
------- ------- --------- -------
Net gain (loss) on investments ............... (23,472) (27,346) 289,910 20,939
------- ------- --------- -------
Reinvested capital gains ........................ 6,728 48,997 31,853 1,067
------- ------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (11,031) 27,357 322,282 25,258
------- ------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 19,984 35,842 2,887,958 100,087
Transfers between funds ......................... (71,443) (10,077) 982,142 678,208
Redemptions ..................................... (14,701) (12,641) (151,084) -
Annual contract maintenance charge (note 2) ..... - - (2) -
Contingent deferred sales charges (note 2) ...... (121) - - -
Adjustments to maintain reserves ................ (3) 1 (22) 58
------- ------- --------- -------
Net equity transactions .................... (66,284) 13,125 3,718,992 778,353
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (77,315) 40,482 4,041,274 803,611
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 323,087 282,605 803,611 -
------- ------- --------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ 245,772 323,087 4,844,885 803,611
======= ======= ========= =======
</TABLE>
<PAGE> 10
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,Continued
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
DryCsMgt DryPreMCap
---------------------------- -----------------------
1999 1998 1999 1998
------------ ------- ------- ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 10,461 13,275 - -
Mortality and expense charges (note 2) .......... - (404) - -
Administration charge (note 2):
Tier I ................................. - - - -
Tier II ................................ - (324) - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (1,894) (1,506) (1,770) (11)
------------ ------- ------- ------
Net investment activity ...................... 8,567 11,041 (1,770) (11)
Proceeds from mutual fund shares sold ........... 70,899 188,098 253,033 41,198
Cost of mutual fund shares sold ................. (70,899) (188,098) (242,970) (39,908)
------------ ------- ------- ------
Realized gain (loss) on investments .......... - - 10,063 1,290
Change in unrealized gain (loss) on investments . - - 43,812 1,020
------------ ------- ------- ------
Net gain (loss) on investments ............... - - 53,875 2,310
------------ ------- ------- ------
Reinvested capital gains ........................ - - 11,056 -
------------ ------- ------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 8,567 11,041 63,161 2,299
------------ ------- ------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. - 7,000 379,265 9,972
Transfers between funds ......................... - 30,215 217,364 6,820
Redemptions ..................................... (69,026) (85,159) (8,796) -
Annual contract maintenance charge (note 2) ..... - - (1) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (9) 13 (3) (36)
------------ ------- ------- ------
Net equity transactions .................... (69,035) (47,931) 587,829 16,756
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (60,468) (36,890) 650,990 19,055
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 243,930 280,820 19,055 -
------------ ------- ------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 183,462 243,930 670,045 19,055
============ ======= ======= ======
<CAPTION>
Dry500Ix DrySRGro
--------------------------- ----------------------
1999 1998 1999 1998
----------- ---------- ------ ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 807,056 654,039 5 30
Mortality and expense charges (note 2) .......... - (50,585) - (18)
Administration charge (note 2):
Tier I ................................. - (25,258) - (16)
Tier II ................................ - (9,470) - -
Tier III ............................... - (4,279) - -
Tier IV ................................ - (1,421) - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (768,657) (302,743) (257) (93)
----------- ---------- ------ ------
Net investment activity ...................... 38,399 260,283 (252) (97)
Proceeds from mutual fund shares sold ........... 6,953,435 17,946,636 20 -
Cost of mutual fund shares sold ................. (5,002,542) (17,009,081) (11) -
----------- ---------- ------ ------
Realized gain (loss) on investments .......... 1,950,893 937,555 9 -
Change in unrealized gain (loss) on investments . 13,070,335 9,000,038 6,628 2,973
----------- ---------- ------ ------
Net gain (loss) on investments ............... 15,021,228 9,937,593 6,637 2,973
----------- ---------- ------ ------
Reinvested capital gains ........................ 1,288,768 11,335 1,301 700
----------- ---------- ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 16,348,395 10,209,211 7,686 3,576
----------- ---------- ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 33,667,126 29,380,072 11,978 6,922
Transfers between funds ......................... (696,560) 12,761,627 - -
Redemptions ..................................... (6,640,768) (4,088,081) - -
Annual contract maintenance charge (note 2) ..... (69) - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 8,495 340,307 - 3
----------- ---------- ------ ------
Net equity transactions .................... 26,338,224 38,393,925 11,978 6,925
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 42,686,619 48,603,136 19,664 10,501
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 67,670,706 19,067,570 19,414 8,913
----------- ---------- ------ ------
CONTRACT OWNERS' EQUITY END OF YEAR................ 110,357,325 67,670,706 39,078 19,414
=========== ========== ====== ======
</TABLE>
(Continued)
<PAGE> 11
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
DryStkIx Dry3dCen
-------------------------- -------------------------
1999 1998 1999 1998
----------- ------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 1,921 1,119 - -
Mortality and expense charges (note 2) .......... - (102) - (66,294)
Administration charge (note 2):
Tier I ................................. - (29) - (29,387)
Tier II ................................ - - - (7,533)
Tier III ............................... - (42) - (3,505)
Tier IV ................................ - - - (1,116)
Tier V ................................. - - - (4,678)
Variable account fee (notes 2 and 5) ............ (1,673) (592) (397,692) (253,339)
----------- ------- ---------- ----------
Net investment activity ...................... 248 354 (397,692) (365,852)
Proceeds from mutual fund shares sold ........... 55,845 6,423 6,206,656 3,901,389
Cost of mutual fund shares sold ................. (30,713) (3,045) (3,510,513) (2,492,822)
----------- ------- ---------- ----------
Realized gain (loss) on investments .......... 25,132 3,378 2,696,143 1,408,567
Change in unrealized gain (loss) on investments . 4,705 15,002 8,651,351 5,130,782
----------- ------- ---------- ----------
Net gain (loss) on investments ............... 29,837 18,380 11,347,494 6,539,349
----------- ------- ---------- ----------
Reinvested capital gains ........................ 1,608 221 6,663,884 5,487,821
----------- ------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 31,693 18,955 17,613,686 11,661,318
----------- ------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 60,306 28,266 12,595,722 12,820,383
Transfers between funds ......................... (566) 29,929 (3,865,109) (958,671)
Redemptions ..................................... (25,840) - (4,140,077) (3,146,178)
Annual contract maintenance charge (note 2) ..... - - (128) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 1 50 4,685 875
----------- ------- ---------- ----------
Net equity transactions .................... 33,901 58,245 4,595,093 8,716,409
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 65,594 77,200 22,208,779 20,377,727
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 123,087 45,887 56,526,907 36,149,180
----------- ------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 188,681 123,087 78,735,686 56,526,907
=========== ======= ========== ==========
<CAPTION>
EvIncGro FedGNMA
------------------------ -----------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 183,943 187,498 - 10,016
Mortality and expense charges (note 2) .......... - (7,687) - (768)
Administration charge (note 2):
Tier I ................................. - (3,311) - (691)
Tier II ................................ - (1,433) - -
Tier III ............................... - (215) - -
Tier IV ................................ - (32) - -
Tier V ................................. - (533) - -
Variable account fee (notes 2 and 5) ............ (29,511) (22,752) - -
--------- --------- --------- ---------
Net investment activity ...................... 154,432 151,535 - 8,557
Proceeds from mutual fund shares sold ........... 800,603 799,273 - 980,581
Cost of mutual fund shares sold ................. (687,340) (673,270) - (966,648)
--------- --------- --------- ---------
Realized gain (loss) on investments .......... 113,263 126,003 - 13,933
Change in unrealized gain (loss) on investments . 204,347 (718,235) - (13,073)
--------- --------- --------- ---------
Net gain (loss) on investments ............... 317,610 (592,232) - 860
--------- --------- --------- ---------
Reinvested capital gains ........................ 64,849 373,288 - -
--------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 536,891 (67,409) - 9,417
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 188,095 266,376 - 13,861
Transfers between funds ......................... (653,482) (684,318) - (57,803)
Redemptions ..................................... (209,751) (214,308) - (923,736)
Annual contract maintenance charge (note 2) ..... (46) - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (38) 17 - (304)
--------- --------- --------- ---------
Net equity transactions .................... (675,222) (632,233) - (967,982)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (138,331) (699,642) - (958,565)
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 3,931,008 4,630,650 - 958,565
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ 3,792,677 3,931,008 - -
========= ========= ========= =========
</TABLE>
<PAGE> 12
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
FedBdFd FedUSGvt
-------------------------- ------------------------
1999 1998 1999 1998
----------- ------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 90,250 1,432 346,733 205,721
Mortality and expense charges (note 2) .......... - - - (4,822)
Administration charge (note 2):
Tier I ................................. - - - (2,999)
Tier II ................................ - - - (739)
Tier III ............................... - - - (199)
Tier IV ................................ - - - (94)
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (7,224) (142) (64,848) (27,060)
----------- ------- --------- ---------
Net investment activity ...................... 83,026 1,290 281,885 169,808
Proceeds from mutual fund shares sold ........... 713,517 10,318 3,705,532 3,303,388
Cost of mutual fund shares sold ................. (739,265) (10,177) (3,745,262) (3,240,050)
----------- ------- --------- ---------
Realized gain (loss) on investments .......... (25,748) 141 (39,730) 63,338
Change in unrealized gain (loss) on investments . (98,562) (1,053) (349,627) 31,242
----------- ------- --------- ---------
Net gain (loss) on investments ............... (124,310) (912) (389,357) 94,580
----------- ------- --------- ---------
Reinvested capital gains ........................ - - - -
----------- ------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (41,284) 378 (107,472) 264,388
----------- ------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 192,519 12,564 1,311,826 1,027,985
Transfers between funds ......................... 1,198,263 267,049 576,069 3,085,149
Redemptions ..................................... (24,725) - (842,664) (660,459)
Annual contract maintenance charge (note 2) ..... - - (34) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (63) 9 1,369 838
----------- ------- --------- ---------
Net equity transactions .................... 1,365,994 279,622 1,046,566 3,453,513
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,324,710 280,000 939,094 3,717,901
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 280,000 - 6,242,531 2,524,630
----------- ------- --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 1,604,710 280,000 7,181,625 6,242,531
=========== ======= ========= =========
<CAPTION>
FAGrOppA FAHiYld
------------------------ ----------------------
1999 1998 1999 1998
--------- ------- ------- ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 25,981 1,615 32,123 298
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) ............ (12,274) (126) (3,078) (2)
--------- ------- ------- ------
Net investment activity ...................... 13,707 1,489 29,045 296
Proceeds from mutual fund shares sold ........... 394,736 163 467,904 3,365
Cost of mutual fund shares sold ................. (394,490) (159) (465,726) (3,405)
--------- ------- ------- ------
Realized gain (loss) on investments .......... 246 4 2,178 (40)
Change in unrealized gain (loss) on investments . (197,704) 2,517 (13,956) (159)
--------- ------- ------- ------
Net gain (loss) on investments ............... (197,458) 2,521 (11,778) (199)
--------- ------- ------- ------
Reinvested capital gains ........................ 251,008 5,705 - 13
--------- ------- ------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 67,257 9,715 17,267 110
--------- ------- ------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,576,174 85,031 246,900 6,597
Transfers between funds ......................... 712,120 211,185 464,347 12,339
Redemptions ..................................... (50,695) - (14,193) -
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 595 (35) 92 (81)
--------- ------- ------- ------
Net equity transactions .................... 2,238,194 296,181 697,146 18,855
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 2,305,451 305,896 714,413 18,965
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 305,896 - 18,965 -
--------- ------- ------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ 2,611,347 305,896 733,378 18,965
========= ======= ======= ======
</TABLE>
(Continued)
<PAGE> 13
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
FidAsMgr FidCapInc
---------------------------- -------------------------
1999 1998 1999 1998
------------ --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 357,600 256,730 106,424 126,811
Mortality and expense charges (note 2) .......... - (12,311) - (2,324)
Administration charge (note 2):
Tier I ................................. - (7,018) - (730)
Tier II ................................ - (1,576) - (237)
Tier III ............................... - (658) - (298)
Tier IV ................................ - (578) - (63)
Tier V ................................. - - - (169)
Variable account fee (notes 2 and 5) ............ (95,989) (49,954) (9,780) (7,180)
------------ --------- --------- ---------
Net investment activity ...................... 261,611 184,635 96,644 115,810
Proceeds from mutual fund shares sold ........... 1,846,726 1,400,805 197,463 173,665
Cost of mutual fund shares sold ................. (1,695,131) (1,144,384) (169,829) (127,055)
------------ --------- --------- ---------
Realized gain (loss) on investments .......... 151,595 256,421 27,634 46,610
Change in unrealized gain (loss) on investments . 487,351 (698,937) (27,009) (143,059)
------------ --------- --------- ---------
Net gain (loss) on investments ............... 638,946 (442,516) 625 (96,449)
------------ --------- --------- ---------
Reinvested capital gains ........................ 489,792 1,435,527 51,281 33,909
------------ --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 1,390,349 1,177,646 148,550 53,270
------------ --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,813,470 2,532,030 - -
Transfers between funds ......................... 230,998 (151,020) (40,990) (96,294)
Redemptions ..................................... (915,972) (704,769) (106,993) (65,869)
Annual contract maintenance charge (note 2) ..... (22) - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 628 365 (1,006) (184)
------------ --------- --------- ---------
Net equity transactions .................... 2,129,102 1,676,606 (148,989) (162,347)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 3,519,451 2,854,252 (439) (109,077)
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 9,497,067 6,642,815 1,265,240 1,374,317
------------ --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 13,016,518 9,497,067 1,264,801 1,265,240
============ ========= ========= =========
<CAPTION>
FidContr FidEqInc
--------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 2,030,581 1,863,318 4,380,744 4,640,372
Mortality and expense charges (note 2) .......... - (450,698) - (506,185)
Administration charge (note 2):
Tier I ................................. - (255,752) - (221,393)
Tier II ................................ - (64,735) - (76,233)
Tier III ............................... - (26,384) - (23,869)
Tier IV ................................ - (8,436) - (11,688)
Tier V ................................. - (6,165) - (28,770)
Variable account fee (notes 2 and 5) ............ (3,726,240) (1,870,589) (2,508,354) (1,692,590)
----------- ----------- ----------- -----------
Net investment activity ...................... (1,695,659) (819,441) 1,872,390 2,079,644
Proceeds from mutual fund shares sold ........... 22,504,798 7,189,568 38,030,205 43,609,506
Cost of mutual fund shares sold ................. (11,333,891) (4,326,016) (21,916,618) (22,032,336)
----------- ----------- ----------- -----------
Realized gain (loss) on investments .......... 11,170,907 2,863,552 16,113,587 21,577,170
Change in unrealized gain (loss) on investments . 13,393,706 55,803,182 (26,919,362) (3,426,262)
----------- ----------- ----------- -----------
Net gain (loss) on investments ............... 24,564,613 58,666,734 (10,805,775) 18,150,908
----------- ----------- ----------- -----------
Reinvested capital gains ........................ 73,890,320 26,157,555 27,266,456 12,941,873
----------- ----------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 96,759,274 84,004,848 18,333,071 33,172,425
----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 76,660,114 77,487,132 38,916,190 57,359,101
Transfers between funds ......................... (20,798,707) (11,104,263) (45,250,633) (24,012,463)
Redemptions ..................................... (22,669,012) (20,740,068) (18,528,772) (48,768,023)
Annual contract maintenance charge (note 2) ..... (484) (24) (168) -
Contingent deferred sales charges (note 2) ...... - - (561) -
Adjustments to maintain reserves ................ 2,551 13,064 (1,625) 801
----------- ----------- ----------- -----------
Net equity transactions .................... 33,194,462 45,655,841 (24,865,569) (15,420,584)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 129,953,736 129,660,689 (6,532,498) 17,751,841
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 380,246,330 250,585,641 312,084,930 294,333,089
----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF YEAR................ 510,200,066 380,246,330 305,552,432 312,084,930
=========== =========== =========== ===========
</TABLE>
<PAGE> 14
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
FidGrInc FidMgIn
---------------------------- ---------------------------
1999 1998 1999 1998
------------ ---------- ----------- -----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ 203,527 156,434 2,104,379 1,642,041
Mortality and expense charges (note 2) ......... - (21,607) - (398,587)
Administration charge (note 2):
Tier I ................................ - - - (202,623)
Tier II ............................... - - - (44,270)
Tier III .............................. - - - (16,514)
Tier IV ............................... - - - (6,415)
Tier V ................................ - (6,482) - (22,365)
Variable account fee (notes 2 and 5) ........... (122,985) (78,976) (2,903,353) (1,495,579)
------------ ---------- ----------- -----------
Net investment activity ..................... 80,542 49,369 (798,974) (544,312)
Proceeds from mutual fund shares sold .......... 5,277,787 2,491,096 9,211,642 21,671,959
Cost of mutual fund shares sold ................ (4,219,929) (1,954,895) (5,162,146) (15,120,252)
------------ ---------- ----------- -----------
Realized gain (loss) on investments ......... 1,057,858 536,201 4,049,496 6,551,707
Change in unrealized gain (loss) on investments (361,836) 2,368,630 41,418,748 56,502,870
------------ ---------- ----------- -----------
Net gain (loss) on investments .............. 696,022 2,904,831 45,468,244 63,054,577
------------ ---------- ----------- -----------
Reinvested capital gains ....................... 1,534,188 912,942 31,798,451 12,423,793
------------ ---------- ----------- -----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 2,310,752 3,867,142 76,467,721 74,934,058
------------ ---------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 7,020,652 10,539,635 54,418,328 45,406,273
Transfers between funds ........................ (3,590,869) 194,224 (3,115,844) (5,882,750)
Redemptions .................................... (1,911,140) (2,164,138) (19,264,721) (32,023,667)
Annual contract maintenance charge (note 2) .... - - (248) -
Contingent deferred sales charges (note 2) ..... - - - (5)
Adjustments to maintain reserves ............... 52 124 1,774 5,882
------------ ---------- ----------- -----------
Net equity transactions ................... 1,518,695 8,569,845 32,039,289 7,505,733
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 3,829,447 12,436,987 108,507,010 82,439,791
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR......... 21,339,448 8,902,461 311,429,060 228,989,269
------------ ---------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF YEAR............... $ 25,168,895 21,339,448 419,936,070 311,429,060
============ ========== =========== ===========
<CAPTION>
FidVIPAM FidVIPEI
------------------------ ------------------------
1999 1998 1999 1998
--------- -------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... 1,649 1,218 3,267 2,576
Mortality and expense charges (note 2) ......... - (66) - (316)
Administration charge (note 2):
Tier I ................................ - (59) - (284)
Tier II ............................... - - - -
Tier III .............................. - - - -
Tier IV ............................... - - - -
Tier V ................................ - - - -
Variable account fee (notes 2 and 5) ........... (533) (280) (2,180) (1,254)
------ ------ ------- -------
Net investment activity ..................... 1,116 813 1,087 722
Proceeds from mutual fund shares sold .......... 1,270 2,675 42,623 32,991
Cost of mutual fund shares sold ................ (982) (2,284) (30,377) (22,023)
------ ------ ------- -------
Realized gain (loss) on investments ......... 288 391 12,246 10,968
Change in unrealized gain (loss) on investments 2,041 842 (8,341) 467
------ ------ ------- -------
Net gain (loss) on investments .............. 2,329 1,233 3,905 11,435
------ ------ ------- -------
Reinvested capital gains ....................... 2,089 3,653 7,222 9,167
------ ------ ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 5,534 5,699 12,214 21,324
------ ------ ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 6,409 8,531 26,978 43,053
Transfers between funds ........................ 2,273 - (19,925) (9,466)
Redemptions .................................... (490) (2,633) (929) (7,379)
Annual contract maintenance charge (note 2) .... - - - -
Contingent deferred sales charges (note 2) ..... - - - -
Adjustments to maintain reserves ............... 1 (1) 72 8
------ ------ ------- -------
Net equity transactions ................... 8,193 5,897 6,196 26,216
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 13,727 11,596 18,410 47,540
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR......... 49,356 37,760 216,494 168,954
------ ------ ------- -------
CONTRACT OWNERS' EQUITY END OF YEAR............... 63,083 49,356 234,904 216,494
====== ====== ======= =======
</TABLE>
(Continued)
<PAGE> 15
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
FidVIPGr FidVIPHI
-------------------------- ---------------------
1999 1998 1999 1998
----------- ------- ------ ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 392 694 4,036 3,277
Mortality and expense charges (note 2) .......... - (240) - (80)
Administration charge (note 2):
Tier I ................................. - (216) - (72)
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (2,651) (1,128) (348) (310)
----------- ------- ------ ------
Net investment activity ...................... (2,259) (890) 3,688 2,815
Proceeds from mutual fund shares sold ........... 15,214 6,452 17,737 8,878
Cost of mutual fund shares sold ................. (7,372) (3,841) (18,825) (9,385)
----------- ------- ------ ------
Realized gain (loss) on investments .......... 7,842 2,611 (1,088) (507)
Change in unrealized gain (loss) on investments . 61,793 36,858 531 (7,529)
----------- ------- ------ ------
Net gain (loss) on investments ............... 69,635 39,469 (557) (8,036)
----------- ------- ------ ------
Reinvested capital gains ........................ 24,632 18,160 151 2,082
----------- ------- ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 92,008 56,739 3,282 (3,139)
----------- ------- ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 43,515 35,276 4,137 9,559
Transfers between funds ......................... 15,223 - (17,607) (8,866)
Redemptions ..................................... (3,581) (5,371) - -
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (22) 26 (1) -
----------- ------- ------ ------
Net equity transactions .................... 55,135 29,931 (13,471) 693
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 147,143 86,670 (10,189) (2,446)
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 219,907 133,237 42,986 45,432
----------- ------- ------ ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 367,050 219,907 32,797 42,986
=========== ======= ====== ======
<CAPTION>
FidVIPOv GroFdAm
---------------------- -------------------------
1999 1998 1999 1998
------- ------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 2,118 2,978 47,982 70,297
Mortality and expense charges (note 2) .......... - (275) - (24,381)
Administration charge (note 2):
Tier I ................................. - (247) - (14,294)
Tier II ................................ - - - (3,521)
Tier III ............................... - - - (1,856)
Tier IV ................................ - - - (402)
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (1,423) (946) (214,713) (95,760)
------- ------- ---------- ----------
Net investment activity ...................... 695 1,510 (166,731) (69,917)
Proceeds from mutual fund shares sold ........... 19,124 59,366 1,854,010 2,326,943
Cost of mutual fund shares sold ................. (15,739) (49,880) (1,141,338) (1,849,031)
------- ------- ---------- ----------
Realized gain (loss) on investments .......... 3,385 9,486 712,672 477,912
Change in unrealized gain (loss) on investments . 48,433 (3,645) 5,867,655 2,260,735
------- ------- ---------- ----------
Net gain (loss) on investments ............... 51,818 5,841 6,580,327 2,738,647
------- ------- ---------- ----------
Reinvested capital gains ........................ 3,416 8,777 3,406,699 1,726,170
------- ------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 55,929 16,128 9,820,295 4,394,900
------- ------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 8,662 18,183 3,497,080 2,880,077
Transfers between funds ......................... (6,027) (56,597) 3,729,668 (558,934)
Redemptions ..................................... (997) (998) (1,300,833) (1,058,856)
Annual contract maintenance charge (note 2) ..... - - (39) -
Contingent deferred sales charges (note 2) ...... - - (32) -
Adjustments to maintain reserves ................ 2 (21) 1,698 286
------- ------- ---------- ----------
Net equity transactions .................... 1,640 (39,433) 5,927,542 1,262,573
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 57,569 (23,305) 15,747,837 5,657,473
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 136,291 159,596 19,249,841 13,592,368
------- ------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR................ 193,860 136,291 34,997,678 19,249,841
======= ======= ========== ==========
</TABLE>
<PAGE> 16
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
IncFdAm InvDynam
---------------------------- ---------------------------
1999 1998 1999 1998
------------ ---------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 1,016,211 945,621 - -
Mortality and expense charges (note 2) .......... - (31,811) - -
Administration charge (note 2):
Tier I ................................. - (19,475) - -
Tier II ................................ - (5,215) - -
Tier III ............................... - (1,414) - -
Tier IV ................................ - (519) - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (178,839) (118,013) (49,164) (10)
------------ ---------- ---------- ------
Net investment activity ...................... 837,372 769,174 (49,164) (10)
Proceeds from mutual fund shares sold ........... 3,061,635 2,414,779 2,741,703 6,997
Cost of mutual fund shares sold ................. (2,603,942) (1,789,136) (2,150,554) (7,179)
------------ ---------- ---------- ------
Realized gain (loss) on investments .......... 457,693 625,643 591,149 (182)
Change in unrealized gain (loss) on investments . (2,310,805) (1,091,203) 7,435,838 2,237
------------ ---------- ---------- ------
Net gain (loss) on investments ............... (1,853,112) (465,560) 8,026,987 2,055
------------ ---------- ---------- ------
Reinvested capital gains ........................ 945,999 1,297,143 1,388,867 861
------------ ---------- ---------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (69,741) 1,600,757 9,366,690 2,906
------------ ---------- ---------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,908,913 3,418,594 9,163,346 22,113
Transfers between funds ......................... (2,598,771) (1,370,792) 26,332,038 32,022
Redemptions ..................................... (1,212,911) (1,488,464) (1,166,383) -
Annual contract maintenance charge (note 2) ..... (25) - (12) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 2,473 116 (10,226) (11)
------------ ---------- ---------- ------
Net equity transactions .................... (900,321) 559,454 34,318,763 54,124
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (970,062) 2,160,211 43,685,453 57,030
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 20,515,616 18,355,405 57,030 -
------------ ---------- ---------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 19,545,554 20,515,616 43,742,483 57,030
============ ========== ========== ======
<CAPTION>
InvIndInc InvTotRet
-------------------------- --------------------------
1999 1998 1999 1998
---------- ---------- --------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 484,806 605,912 29,319 84
Mortality and expense charges (note 2) .......... - (40,935) - -
Administration charge (note 2):
Tier I ................................. - (26,247) - -
Tier II ................................ - (6,522) - -
Tier III ............................... - (1,097) - -
Tier IV ................................ - (717) - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (263,147) (158,242) (7,114) (48)
---------- ---------- --------- -------
Net investment activity ...................... 221,659 372,152 22,205 36
Proceeds from mutual fund shares sold ........... 3,074,011 1,979,934 418,901 -
Cost of mutual fund shares sold ................. (2,178,100) (1,412,824) (425,696) -
---------- ---------- --------- -------
Realized gain (loss) on investments .......... 895,911 567,110 (6,795) -
Change in unrealized gain (loss) on investments . (565,078) (296,231) (109,387) (492)
---------- ---------- --------- -------
Net gain (loss) on investments ............... 330,833 270,879 (116,182) (492)
---------- ---------- --------- -------
Reinvested capital gains ........................ 2,721,417 2,563,688 49,842 2,113
---------- ---------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 3,273,909 3,206,719 (44,135) 1,657
---------- ---------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 4,671,451 5,778,407 608,623 33,134
Transfers between funds ......................... (3,283,170) (2,075,401) 737,144 96,955
Redemptions ..................................... (1,701,834) (1,577,795) (38,546) -
Annual contract maintenance charge (note 2) ..... (86) - (3) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 1,352 335 14 (1)
---------- ---------- --------- -------
Net equity transactions .................... (312,287) 2,125,546 1,307,232 130,088
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 2,961,622 5,332,265 1,263,097 131,745
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 28,222,368 22,890,103 131,745 -
---------- ---------- --------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ 31,183,990 28,222,368 1,394,842 131,745
========== ========== ========= =======
</TABLE>
(Continued)
<PAGE> 17
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
JanFund Jan20Fd
------------------------------ ---------------------------
1999 1998 1999 1998
------------- ----------- ----------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ - 255,272 - -
Mortality and expense charges (note 2) .......... - (123,418) - (96)
Administration charge (note 2):
Tier I ................................. - (73,139) - (86)
Tier II ................................ - (18,968) - -
Tier III ............................... - (5,896) - -
Tier IV ................................ - (3,446) - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (1,891,052) (572,068) - -
------------- ----------- ----------- ---------
Net investment activity ...................... (1,891,052) (541,663) - (182)
Proceeds from mutual fund shares sold ........... 44,613,068 5,913,478 - 234,631
Cost of mutual fund shares sold ................. (28,242,722) (4,178,412) - (218,097)
------------- ----------- ----------- ---------
Realized gain (loss) on investments .......... 16,370,346 1,735,066 - 16,534
Change in unrealized gain (loss) on investments . 38,835,816 27,025,929 - 1,871
------------- ----------- ----------- ---------
Net gain (loss) on investments ............... 55,206,162 28,760,995 - 18,405
------------- ----------- ----------- ---------
Reinvested capital gains ........................ 35,378,670 3,109,129 - -
------------- ----------- ----------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 88,693,780 31,328,461 - 18,223
------------- ----------- ----------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 58,291,104 30,660,731 - 66,106
Transfers between funds ......................... 68,989,874 9,765,202 - 112,713
Redemptions ..................................... (12,903,192) (6,044,122) - (213,496)
Annual contract maintenance charge (note 2) ..... (648) - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (121,677) 13,252 - (1)
------------- ----------- ----------- ---------
Net equity transactions .................... 114,255,461 34,395,063 - (34,678)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 202,949,241 65,723,524 - (16,455)
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 131,449,444 65,725,920 - 16,455
------------- ----------- ----------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 334,398,685 131,449,444 - -
============= =========== =========== =========
<CAPTION>
JanWrldwde MASFIP
-------------------------- --------------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... 718 4,603 436,281 262,173
Mortality and expense charges (note 2) .......... - (52) - (5,269)
Administration charge (note 2):
Tier I ................................. - (46) - (2,984)
Tier II ................................ - - - (671)
Tier III ............................... - - - (494)
Tier IV ................................ - - - (117)
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (13,371) (4,975) (57,783) (25,897)
--------- --------- --------- ---------
Net investment activity ...................... (12,653) (470) 378,498 226,741
Proceeds from mutual fund shares sold ........... 236,222 280,474 4,229,439 2,064,790
Cost of mutual fund shares sold ................. (204,303) (276,630) (4,452,181) (2,063,602)
--------- --------- --------- ---------
Realized gain (loss) on investments .......... 31,919 3,844 (222,742) 1,188
Change in unrealized gain (loss) on investments . 739,231 32,242 (254,503) (138,309)
--------- --------- --------- ---------
Net gain (loss) on investments ............... 771,150 36,086 (477,245) (137,121)
--------- --------- --------- ---------
Reinvested capital gains ........................ 34,788 - - 141,173
--------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 793,285 35,616 (98,747) 230,793
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 254,509 1,224,932 1,379,662 2,337,578
Transfers between funds ......................... (23,787) 42,958 (326,755) 1,227,491
Redemptions ..................................... (56,910) (148,660) (592,153) (408,984)
Annual contract maintenance charge (note 2) ..... - - (11) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 61 778 (373) 769
--------- --------- --------- ---------
Net equity transactions .................... 173,873 1,120,008 460,370 3,156,854
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 967,158 1,155,624 361,623 3,387,647
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 1,155,624 - 6,046,920 2,659,273
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ 2,122,782 1,155,624 6,408,543 6,046,920
========= ========= ========= =========
</TABLE>
<PAGE> 18
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
MFSGrStk MFSGrOpp
---------------------------- --------------------------
1999 1998 1999 1998
------------ ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ - 3,357 - -
Mortality and expense charges (note 2) ......... - (13,218) - (50,612)
Administration charge (note 2):
Tier I ................................ - (3,786) - (7,564)
Tier II ............................... - (577) - (4,456)
Tier III .............................. - (217) - (2,056)
Tier IV ............................... - (3) - (38)
Tier V ................................ - (2,376) - (9,935)
Variable account fee (notes 2 and 5) ........... (79,821) (45,122) (225,794) (155,715)
------------ ---------- ---------- ----------
Net investment activity ..................... (79,821) (61,942) (225,794) (230,376)
Proceeds from mutual fund shares sold .......... 448,880 763,833 4,575,682 4,941,954
Cost of mutual fund shares sold ................ (296,266) (594,289) (3,253,644) (3,473,271)
------------ ---------- ---------- ----------
Realized gain (loss) on investments ......... 152,614 169,544 1,322,038 1,468,683
Change in unrealized gain (loss) on investments 2,851,692 1,977,242 5,720,649 2,631,079
------------ ---------- ---------- ----------
Net gain (loss) on investments .............. 3,004,306 2,146,786 7,042,687 4,099,762
------------ ---------- ---------- ----------
Reinvested capital gains ....................... 1,069,028 835,048 3,953,068 3,810,336
------------ ---------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 3,993,513 2,919,892 10,769,961 7,679,722
------------ ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 399,106 938,045 1,856,148 3,001,332
Transfers between funds ........................ 214,593 49,079 (2,097,203) (315,367)
Redemptions .................................... (380,737) (652,945) (2,288,039) (2,525,453)
Annual contract maintenance charge (note 2) .... (443) (489) (22) -
Contingent deferred sales charges (note 2) ..... (98) (185) - -
Adjustments to maintain reserves ............... (58) 180 249 (192)
------------ ---------- ---------- ----------
Net equity transactions ................... 232,363 333,685 (2,528,867) 160,320
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 4,225,876 3,253,577 8,241,094 7,840,042
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR......... 10,458,588 7,205,011 35,666,943 27,826,901
------------ ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR............... $ 14,684,464 10,458,588 43,908,037 35,666,943
============ ========== ========== ==========
<CAPTION>
MFSHiInc MSIEqGroB
------------------------- --------------------------
1999 1998 1999 1998
--------- --------- --------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... 466,639 456,237 86 95
Mortality and expense charges (note 2) ......... - (7,916) - -
Administration charge (note 2):
Tier I ................................ - (768) - -
Tier II ............................... - (201) - -
Tier III .............................. - (148) - -
Tier IV ............................... - - - -
Tier V ................................ - (1,969) - -
Variable account fee (notes 2 and 5) ........... (30,832) (25,707) (4,572) (45)
--------- --------- --------- ------
Net investment activity ..................... 435,807 419,528 (4,486) 50
Proceeds from mutual fund shares sold .......... 8,399,186 7,726,052 1,193,606 676
Cost of mutual fund shares sold ................ (8,707,031) (7,645,469) (1,096,796) (667)
--------- --------- --------- ------
Realized gain (loss) on investments ......... (307,845) 80,583 96,810 9
Change in unrealized gain (loss) on investments 186,818 (532,483) 183,093 1,514
--------- --------- --------- ------
Net gain (loss) on investments .............. (121,027) (451,900) 279,903 1,523
--------- --------- --------- ------
Reinvested capital gains ....................... - - 104,207 3,097
--------- --------- --------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 314,780 (32,372) 379,624 4,670
--------- --------- --------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 654,031 2,601,573 664,758 25,975
Transfers between funds ........................ (1,136,191) (223,014) 1,067,742 67,174
Redemptions .................................... (405,027) (931,136) (75,897) -
Annual contract maintenance charge (note 2) .... (4) - (2) -
Contingent deferred sales charges (note 2) ..... - - - -
Adjustments to maintain reserves ............... (32) 2,885 (75) 82
--------- --------- --------- ------
Net equity transactions ................... (887,223) 1,450,308 1,656,526 93,231
NET CHANGE IN CONTRACT OWNERS' EQUITY............. (572,443) 1,417,936 2,036,150 97,901
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR......... 5,341,007 3,923,071 97,901 -
--------- --------- --------- ------
CONTRACT OWNERS' EQUITY END OF YEAR............... 4,768,564 5,341,007 2,134,051 97,901
========= ========= ========= ======
</TABLE>
(Continued)
<PAGE> 19
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
NAATAggr NAATCons
-------------------------- ------------------------
1999 1998 1999 1998
----------- --------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 2,253 507 39,033 5,626
Mortality and expense charges (note 2) .......... - (1,215) - (201)
Administration charge (note 2):
Tier I ................................. - (890) - (28)
Tier II ................................ - (141) - (2)
Tier III ............................... - (25) - (100)
Tier IV ................................ - (3) - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (22,045) (13,433) (8,500) (1,900)
----------- --------- --------- -------
Net investment activity ...................... (19,792) (15,200) 30,533 3,395
Proceeds from mutual fund shares sold ........... 1,193,777 635,734 1,073,840 576,645
Cost of mutual fund shares sold ................. (1,146,650) (616,801) (1,059,798) (567,041)
----------- --------- --------- -------
Realized gain (loss) on investments .......... 47,127 18,933 14,042 9,604
Change in unrealized gain (loss) on investments . 681,570 196,583 (13,838) 19,647
----------- --------- --------- -------
Net gain (loss) on investments ............... 728,697 215,516 204 29,251
----------- --------- --------- -------
Reinvested capital gains ........................ 126,723 - 10,727 -
----------- --------- --------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 835,628 200,316 41,464 32,646
----------- --------- --------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 2,055,809 1,887,715 466,919 195,908
Transfers between funds ......................... (1,211,032) 1,152,077 477,026 444,932
Redemptions ..................................... (205,081) (170,820) (213,591) (78,995)
Annual contract maintenance charge (note 2) ..... (1) - (5) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 532 47 (41) (4)
----------- --------- --------- -------
Net equity transactions .................... 640,227 2,869,019 730,308 561,841
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,475,855 3,069,335 771,772 594,487
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 3,069,335 - 594,487 -
----------- --------- --------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 4,545,190 3,069,335 1,366,259 594,487
=========== ========= ========= =======
<CAPTION>
NAATMod NAATModAgg
------------------------ ------------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 32,302 5,843 19,297 5,390
Mortality and expense charges (note 2) .......... - (108) - (455)
Administration charge (note 2):
Tier I ................................. - (62) - (270)
Tier II ................................ - (17) - (61)
Tier III ............................... - (7) - (42)
Tier IV ................................ - (3) - (3)
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (17,716) (5,098) (14,664) (6,084)
--------- --------- --------- ---------
Net investment activity ...................... 14,586 548 4,633 (1,525)
Proceeds from mutual fund shares sold ........... 789,952 336,223 791,086 464,789
Cost of mutual fund shares sold ................. (728,876) (348,924) (757,478) (466,292)
--------- --------- --------- ---------
Realized gain (loss) on investments .......... 61,076 (12,701) 33,608 (1,503)
Change in unrealized gain (loss) on investments . 300,514 147,065 419,268 102,054
--------- --------- --------- ---------
Net gain (loss) on investments ............... 361,590 134,364 452,876 100,551
--------- --------- --------- ---------
Reinvested capital gains ........................ 38,471 - 53,998 -
--------- --------- --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 414,647 134,912 511,507 99,026
--------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,367,867 1,292,678 2,045,368 1,191,358
Transfers between funds ......................... 341,331 469,169 (210,193) 379,175
Redemptions ..................................... (296,410) (126,526) (356,611) (93,431)
Annual contract maintenance charge (note 2) ..... (5) - (15) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 224 30 326 39
--------- --------- --------- ---------
Net equity transactions .................... 1,413,007 1,635,351 1,478,875 1,477,141
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,827,654 1,770,263 1,990,382 1,576,167
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 1,770,263 - 1,576,167 -
--------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ 3,597,917 1,770,263 3,566,549 1,576,167
========= ========= ========= =========
</TABLE>
<PAGE> 20
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
NAATModCon NWBdFd
----------------------------- -------------------------
1999 1998 1999 1998
------------ --------- -------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 24,323 5,191 16,073 8,729
Mortality and expense charges (note 2) .......... - (73) - (177)
Administration charge (note 2):
Tier I ................................. - (15) - -
Tier II ................................ - (1) - -
Tier III ............................... - (33) - -
Tier IV ................................ - - - -
Tier V ................................. - - - (53)
Variable account fee (notes 2 and 5) ............ (6,940) (2,642) (2,130) (874)
------------ ------- ------- -------
Net investment activity ...................... 17,383 2,427 13,943 7,625
Proceeds from mutual fund shares sold ........... 499,502 126,322 37,555 32,175
Cost of mutual fund shares sold ................. (467,195) (122,914) (36,522) (30,850)
------------ ------- ------- -------
Realized gain (loss) on investments .......... 32,307 3,408 1,033 1,325
Change in unrealized gain (loss) on investments . 38,816 53,826 (24,903) 2,630
------------ ------- ------- -------
Net gain (loss) on investments ............... 71,123 57,234 (23,870) 3,955
------------ ------- ------- -------
Reinvested capital gains ........................ 14,911 - - -
------------ ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 103,417 59,661 (9,927) 11,580
------------ ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 501,423 345,421 23,536 173,475
Transfers between funds ......................... (13,064) 511,458 (20,593) (21,724)
Redemptions ..................................... (57,023) (41,109) (6,255) (840)
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 147 43 78 (84)
------------ ------- ------- -------
Net equity transactions .................... 431,483 815,813 (3,234) 150,827
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 534,900 875,474 (13,161) 162,407
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 875,474 - 274,143 111,736
------------ ------- ------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 1,410,374 875,474 260,982 274,143
============ ======= ======= =======
<CAPTION>
NWFund NWGroFd
--------------------------- --------------------------
1999 1998 1999 1998
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,444,718 1,275,418 27,043 14,337
Mortality and expense charges (note 2) .......... - (162,460) - (18,865)
Administration charge (note 2):
Tier I ................................. - (71,265) - (6,715)
Tier II ................................ - (20,611) - (2,143)
Tier III ............................... - (8,929) - (475)
Tier IV ................................ - (2,770) - (992)
Tier V ................................. - (10,712) - (1,636)
Variable account fee (notes 2 and 5) ............ (1,226,252) (793,939) (104,763) (68,124)
----------- ----------- ---------- ----------
Net investment activity ...................... 218,466 204,732 (77,720) (84,613)
Proceeds from mutual fund shares sold ........... 32,894,171 7,155,989 2,545,374 3,211,852
Cost of mutual fund shares sold ................. (16,881,727) (3,977,604) (1,726,546) (2,238,411)
----------- ----------- ---------- ----------
Realized gain (loss) on investments .......... 16,012,444 3,178,385 818,828 973,441
Change in unrealized gain (loss) on investments . (29,316,575) 21,386,876 (500,712) 746,981
----------- ----------- ---------- ----------
Net gain (loss) on investments ............... (13,304,131) 24,565,261 318,116 1,720,422
----------- ----------- ---------- ----------
Reinvested capital gains ........................ 11,449,667 7,428,131 1,888,142 688,315
----------- ----------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (1,635,998) 32,198,124 2,128,538 2,324,124
----------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 53,421,212 59,228,416 1,895,426 2,626,268
Transfers between funds ......................... (49,155,148) 35,685,404 (1,422,117) (14,054)
Redemptions ..................................... (13,489,833) (13,470,684) (1,072,682) (1,150,765)
Annual contract maintenance charge (note 2) ..... (1,149) (1,070) (40) -
Contingent deferred sales charges (note 2) ...... (1,616) (1,062) - -
Adjustments to maintain reserves ................ 17,852 6,785 (51) 93
----------- ----------- ---------- ----------
Net equity transactions .................... (9,208,682) 81,447,789 (599,464) 1,461,542
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (10,844,680) 113,645,913 1,529,074 3,785,666
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 188,973,280 75,327,367 13,756,598 9,970,932
----------- ----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR................ 178,128,600 188,973,280 15,285,672 13,756,598
=========== =========== ========== ==========
</TABLE>
(Continued)
<PAGE> 21
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
NWMyMkt NWIndxFdY
------------------------------ ----------------------------
1999 1998 1999 1998
------------- ---------- ---------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 4,413,067 3,234,302 50,540 1,092
Mortality and expense charges (note 2) .......... - (103,945) - -
Administration charge (note 2):
Tier I ................................. - (33,864) - -
Tier II ................................ - (27,756) - -
Tier III ............................... - (3,371) - -
Tier IV ................................ - (2,320) - -
Tier V ................................. - (6,062) - -
Variable account fee (notes 2 and 5) ............ (574,091) (356,313) (38,313) (272)
------------- ---------- ---------- -------
Net investment activity ...................... 3,838,976 2,700,671 12,227 820
Proceeds from mutual fund shares sold ........... 190,151,180 125,064,177 4,443,045 12,991
Cost of mutual fund shares sold ................. (190,151,180) (125,064,177) (4,111,612) (12,980)
------------- ---------- ---------- -------
Realized gain (loss) on investments .......... - - 331,433 11
Change in unrealized gain (loss) on investments . - - 883,603 18,449
------------- ---------- ---------- -------
Net gain (loss) on investments ............... - - 1,215,036 18,460
------------- ---------- ---------- -------
Reinvested capital gains ........................ - - 18,844 -
------------- ---------- ---------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 3,838,976 2,700,671 1,246,107 19,280
------------- ---------- ---------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 25,072,226 15,218,549 5,295,958 81,674
Transfers between funds ......................... 44,362,260 7,542,179 4,892,711 507,742
Redemptions ..................................... (25,014,174) (11,436,140) (616,810) (6,153)
Annual contract maintenance charge (note 2) ..... (87) (14) (1) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 146,813 17,615 5 91
------------- ---------- ---------- -------
Net equity transactions .................... 44,567,038 11,342,189 9,571,863 583,354
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 48,406,014 14,042,860 10,817,970 602,634
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 70,669,459 56,626,599 602,634 -
------------- ---------- ---------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 119,075,473 70,669,459 11,420,604 602,634
============= ========== ========== =======
<CAPTION>
NSATGvtBd NSATInc
-------------------------- ------------------------
1999 1998 1999 1998
--------- -------- ------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,093 932 1,131 -
Mortality and expense charges (note 2) .......... - (25) - -
Administration charge (note 2):
Tier I ................................. - (23) - -
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (191) (114) (45) -
------ ------ ------- ---------
Net investment activity ...................... 902 770 1,086 -
Proceeds from mutual fund shares sold ........... 62 98 5,774 -
Cost of mutual fund shares sold ................. (60) (91) (5,717) -
------ ------ ------- ---------
Realized gain (loss) on investments .......... 2 7 57 -
Change in unrealized gain (loss) on investments . (1,605) 413 (1,912) -
------ ------ ------- ---------
Net gain (loss) on investments ............... (1,603) 420 (1,855) -
------ ------ ------- ---------
Reinvested capital gains ........................ 40 93 - -
------ ------ ------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (661) 1,283 (769) -
------ ------ ------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,851 3,575 3,064 -
Transfers between funds ......................... - - 110,496 -
Redemptions ..................................... - (188) (1,000) -
Annual contract maintenance charge (note 2) ..... (12) (12) - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (2) - (3) -
------ ------ ------- ---------
Net equity transactions .................... 1,837 3,375 112,557 -
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,176 4,658 111,788 -
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 19,439 14,781 - -
------ ------ ------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ 20,615 19,439 111,788 -
====== ====== ======= =========
</TABLE>
<PAGE> 22
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
NSATMyMkt NSATSmCo
------------------------- -----------------------
1999 1998 1999 1998
---------- --------- --------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 4,903 1,928 - -
Mortality and expense charges (note 2) .......... - (25) - (1,113)
Administration charge (note 2):
Tier I ................................. - (22) - (458)
Tier II ................................ - - - (337)
Tier III ............................... - - - (85)
Tier IV ................................ - - - (17)
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (981) (319) (25,995) (13,276)
---------- ------ --------- ---------
Net investment activity ...................... 3,922 1,562 (25,995) (15,286)
Proceeds from mutual fund shares sold ........... 741 1,610 3,384,480 2,561,737
Cost of mutual fund shares sold ................. (741) (1,610) (3,030,189) (2,738,916)
---------- ------ --------- ---------
Realized gain (loss) on investments .......... - - 354,291 (177,179)
Change in unrealized gain (loss) on investments . - - 1,035,137 283,712
---------- ------ --------- ---------
Net gain (loss) on investments ............... - - 1,389,428 106,533
---------- ------ --------- ---------
Reinvested capital gains ........................ - - 207,545 -
---------- ------ --------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 3,922 1,562 1,570,978 91,247
---------- ------ --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 8,380 9,243 1,348,224 1,668,534
Transfers between funds ......................... 33,546 56,989 (891,541) 1,950,841
Redemptions ..................................... - - (182,952) (173,431)
Annual contract maintenance charge (note 2) ..... - - (7) -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 2 12 5,420 1,142
---------- ------ --------- ---------
Net equity transactions .................... 41,928 66,244 279,144 3,447,086
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 45,850 67,806 1,850,122 3,538,333
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 76,159 8,353 3,538,333 -
---------- ------ --------- ---------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 122,009 76,159 5,388,455 3,538,333
========== ====== ========= =========
<CAPTION>
NSATTotRe NBAMTGro
------------------------ -----------------------
1999 1998 1999 1998
--------- --------- --------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,017 1,442 - -
Mortality and expense charges (note 2) .......... - (226) - (46)
Administration charge (note 2):
Tier I ................................. - (203) - (42)
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (1,490) (898) (398) (179)
------- ------- ------ ------
Net investment activity ...................... (473) 115 (398) (267)
Proceeds from mutual fund shares sold ........... 8,489 12,829 - 7,379
Cost of mutual fund shares sold ................. (4,821) (6,994) - (7,320)
------- ------- ------ ------
Realized gain (loss) on investments .......... 3,668 5,835 - 59
Change in unrealized gain (loss) on investments . (306) 10,427 19,846 (2,595)
------- ------- ------ ------
Net gain (loss) on investments ............... 3,362 16,262 19,846 (2,536)
------- ------- ------ ------
Reinvested capital gains ........................ 6,072 5,748 1,957 7,561
------- ------- ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 8,961 22,125 21,405 4,758
------- ------- ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 13,141 8,798 9,572 9,567
Transfers between funds ......................... (5,136) - - -
Redemptions ..................................... - (12,584) - (7,559)
Annual contract maintenance charge (note 2) ..... (11) (12) - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 1 2 2 1
------- ------- ------ ------
Net equity transactions .................... 7,995 (3,796) 9,574 2,009
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 16,956 18,329 30,979 6,767
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 147,600 129,271 35,004 28,237
------- ------- ------ ------
CONTRACT OWNERS' EQUITY END OF YEAR................ 164,556 147,600 65,983 35,004
======= ======= ====== ======
</TABLE>
(Continued)
<PAGE> 23
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
NBAMTLMat NBAMTPart
------------------------- ----------------------
1999 1998 1999 1998
---------- -------- -------- ---------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 639 554 757 142
Mortality and expense charges (note 2) .......... - (15) - (63)
Administration charge (note 2):
Tier I ................................. - (13) - (56)
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ (116) (65) (638) (325)
---------- ------ ------ ------
Net investment activity ...................... 523 461 119 (302)
Proceeds from mutual fund shares sold ........... - - 13,104 1,445
Cost of mutual fund shares sold ................. - - (8,286) (670)
---------- ------ ------ ------
Realized gain (loss) on investments .......... - - 4,818 775
Change in unrealized gain (loss) on investments . (458) (144) (2,549) (3,210)
---------- ------ ------ ------
Net gain (loss) on investments ............... (458) (144) 2,269 (2,435)
---------- ------ ------ ------
Reinvested capital gains ........................ - - 1,317 4,468
---------- ------ ------ ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 65 317 3,705 1,731
---------- ------ ------ ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 1,801 2,375 17,450 30,030
Transfers between funds ......................... - - (6,328) 3,872
Redemptions ..................................... - - (5,432) (1,397)
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 1 - (20) (1)
---------- ------ ------ ------
Net equity transactions .................... 1,802 2,375 5,670 32,504
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,867 2,692 9,375 34,235
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 11,132 8,440 63,666 29,431
---------- ------ ------ ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 12,999 11,132 73,041 63,666
========== ====== ====== ======
<CAPTION>
NBGuard NBManhFd
----------------------- ----------------------
1999 1998 1999 1998
--------- --------- --------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 11,390 8,655 - -
Mortality and expense charges (note 2) .......... - (1,980) - (217)
Administration charge (note 2):
Tier I ................................. - (393) - (195)
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - (463) - -
Variable account fee (notes 2 and 5) ............ (7,330) (6,774) (2,552) (1,138)
--------- --------- ------- -------
Net investment activity ...................... 4,060 (955) (2,552) (1,550)
Proceeds from mutual fund shares sold ........... 944,413 1,760,387 27,520 4,438
Cost of mutual fund shares sold ................. (916,829) (2,068,736) (27,741) (4,754)
--------- --------- ------- -------
Realized gain (loss) on investments .......... 27,584 (308,349) (221) (316)
Change in unrealized gain (loss) on investments . (265,166) 72,024 104,159 18,278
--------- --------- ------- -------
Net gain (loss) on investments ............... (237,582) (236,325) 103,938 17,962
--------- --------- ------- -------
Reinvested capital gains ........................ 335,583 228,090 25,314 16,709
--------- --------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 102,061 (9,190) 126,700 33,121
--------- --------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 508,076 1,175,835 7,615 103,867
Transfers between funds ......................... (534,845) (425,526) (6,691) (255)
Redemptions ..................................... (106,376) (220,657) (5,359) (3,629)
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - 4 (4)
Adjustments to maintain reserves ................ (6) (850) 1 -
--------- --------- ------- -------
Net equity transactions .................... (133,151) 528,802 (4,430) 99,979
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. (31,090) 519,612 122,270 133,100
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 1,503,941 984,329 257,916 124,816
--------- --------- ------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ 1,472,851 1,503,941 380,186 257,916
========= ========= ======= =======
</TABLE>
<PAGE> 24
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
NBPartFd NBGuardTr
----------------------- ---------------------
1999 1998 1999 1998
---------- ---------- -------- -------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - - - -
Mortality and expense charges (note 2) .......... - (1,836) - (28)
Administration charge (note 2):
Tier I ................................. - (1,652) - (25)
Tier II ................................ - - - -
Tier III ............................... - - - -
Tier IV ................................ - - - -
Tier V ................................. - - - -
Variable account fee (notes 2 and 5) ............ - - - -
---------- ---------- -------- -------
Net investment activity ...................... - (3,488) - (53)
Proceeds from mutual fund shares sold ........... - 2,754,448 - 68,479
Cost of mutual fund shares sold ................. - (2,803,651) - (63,557)
---------- ---------- -------- -------
Realized gain (loss) on investments .......... - (49,203) - 4,922
Change in unrealized gain (loss) on investments . - 210,691 - -
---------- ---------- -------- -------
Net gain (loss) on investments ............... - 161,488 - 4,922
---------- ---------- -------- -------
Reinvested capital gains ........................ - - - -
---------- ---------- -------- -------
Net increase (decrease) in contract owners'
equity resulting from operations ......... - 158,000 - 4,869
---------- ---------- -------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. - 363,321 - 33,268
Transfers between funds ......................... - 245,865 - 27,513
Redemptions ..................................... - (2,766,371) - (65,651)
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ - 41 - 1
---------- ---------- -------- -------
Net equity transactions .................... - (2,157,144) - (4,869)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. - (1,999,144) - -
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... - 1,999,144 - -
---------- ---------- -------- -------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ - - - -
========== ========== ======== =======
<CAPTION>
NBPartTr PrBalY
---------------------- ---------------------
1999 1998 1999 1998
------- -------- ------- ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,756 - 9,807 101
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) ............ (977) (4) (2,044) (25)
------- ------ ------- ------
Net investment activity ...................... 779 (4) 7,763 76
Proceeds from mutual fund shares sold ........... 179,412 14,303 159,910 1,150
Cost of mutual fund shares sold ................. (172,997) (14,138) (153,742) (1,099)
------- ------ ------- ------
Realized gain (loss) on investments .......... 6,415 165 6,168 51
Change in unrealized gain (loss) on investments . (13,932) 6 5,245 1,222
------- ------ ------- ------
Net gain (loss) on investments ............... (7,517) 171 11,413 1,273
------- ------ ------- ------
Reinvested capital gains ........................ 11,549 120 10,302 -
------- ------ ------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 4,811 287 29,478 1,349
------- ------ ------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 84,266 4,656 160,789 27,624
Transfers between funds ......................... 57,222 41,930 362,027 26,228
Redemptions ..................................... (3,539) - (19,468) -
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 74 (30) (3) 23
------- ------ ------- ------
Net equity transactions .................... 138,023 46,556 503,345 53,875
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 142,834 46,843 532,823 55,224
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 46,843 - 55,224 -
------- ------ ------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ 189,677 46,843 588,047 55,224
======= ====== ======= ======
</TABLE>
(Continued)
<PAGE> 25
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
PrIntY PrLgCapGrY
--------------------------- -------------------------
1999 1998 1999 1998
----------- -------- --------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 895 - - -
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) ............ (1,004) (12) (5,595) (32)
----------- ------ --------- ------
Net investment activity ...................... (109) (12) (5,595) (32)
Proceeds from mutual fund shares sold ........... 1,301,157 1,317 181,015 15,581
Cost of mutual fund shares sold ................. (1,284,895) (1,294) (153,789) (14,964)
----------- ------ --------- ------
Realized gain (loss) on investments .......... 16,262 23 27,226 617
Change in unrealized gain (loss) on investments . 30,168 618 368,347 3,881
----------- ------ --------- ------
Net gain (loss) on investments ............... 46,430 641 395,573 4,498
----------- ------ --------- ------
Reinvested capital gains ........................ 3,286 - 29,922 -
----------- ------ --------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 49,607 629 419,900 4,466
----------- ------ --------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 159,508 3,159 1,298,228 21,069
Transfers between funds ......................... 128,242 15,229 693,977 38,378
Redemptions ..................................... (3,920) - (101,819) -
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (12) 1 885 311
----------- ------ --------- ------
Net equity transactions .................... 283,818 18,389 1,891,271 59,758
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 333,425 19,018 2,311,171 64,224
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 19,018 - 64,224 -
----------- ------ --------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 352,443 19,018 2,375,395 64,224
=========== ====== ========= ======
<CAPTION>
PrLgCpValY PrSmCapY
---------------------- ------------------------
1999 1998 1999 1998
-------- ------- --------- ------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 1,105 25 952 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) ............ (701) (6) (2,960) (17)
------- ------ --------- ------
Net investment activity ...................... 404 19 (2,008) 8
Proceeds from mutual fund shares sold ........... 246,811 - 776,552 1,003
Cost of mutual fund shares sold ................. (249,640) - (745,937) (960)
------- ------ --------- ------
Realized gain (loss) on investments .......... (2,829) - 30,615 43
Change in unrealized gain (loss) on investments . (15,619) 242 124,204 1,880
------- ------ --------- ------
Net gain (loss) on investments ............... (18,448) 242 154,819 1,923
------- ------ --------- ------
Reinvested capital gains ........................ 879 - 8,854 -
------- ------ --------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... (17,165) 261 161,665 1,931
------- ------ --------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 149,030 997 608,531 6,201
Transfers between funds ......................... 88,235 9,117 424,083 32,130
Redemptions ..................................... (1,220) - (6,433) -
Annual contract maintenance charge (note 2) ..... - - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ (13) 29 (466) (9)
------- ------ --------- ------
Net equity transactions .................... 236,032 10,143 1,025,715 38,322
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 218,867 10,404 1,187,380 40,253
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 10,404 - 40,253 -
------- ------ --------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ 229,271 10,404 1,227,633 40,253
======= ====== ========= ======
</TABLE>
<PAGE> 26
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
OppGlob PutInvFd
---------------------------- ---------------------------
1999 1998 1999 1998
------------ --------- ----------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... $ 17,706 382 - -
Mortality and expense charges (note 2) ......... - - - (85,320)
Administration charge (note 2):
Tier I ................................ - - - (14,831)
Tier II ............................... - - - (3,668)
Tier III .............................. - - - (942)
Tier IV ............................... - - - (62)
Tier V ................................ - - - (18,760)
Variable account fee (notes 2 and 5) ........... (10,455) (37) (506,257) (298,201)
------------ ------- ----------- ----------
Net investment activity ..................... 7,251 345 (506,257) (421,784)
Proceeds from mutual fund shares sold .......... 641,405 5,723 11,770,726 6,828,788
Cost of mutual fund shares sold ................ (571,639) (6,015) (5,690,685) (4,492,724)
------------ ------- ----------- ----------
Realized gain (loss) on investments ......... 69,766 (292) 6,080,041 2,336,064
Change in unrealized gain (loss) on investments 729,439 456 16,970,884 13,802,953
------------ ------- ----------- ----------
Net gain (loss) on investments .............. 799,205 164 23,050,925 16,139,017
------------ ------- ----------- ----------
Reinvested capital gains ....................... 204,712 2,941 677,043 1,853,165
------------ ------- ----------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 1,011,168 3,450 23,221,711 17,570,398
------------ ------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 808,122 17,726 13,741,363 14,227,151
Transfers between funds ........................ 2,022,642 118,096 (2,349,986) 2,036,253
Redemptions .................................... (29,086) - (6,965,030) (4,706,872)
Annual contract maintenance charge (note 2) .... (1) - (779) (837)
Contingent deferred sales charges (note 2) ..... - - (411) (321)
Adjustments to maintain reserves ............... (25) 36 (28) 1,034
------------ ------- ----------- ----------
Net equity transactions ................... 2,801,652 135,858 4,425,129 11,556,408
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 3,812,820 139,308 27,646,840 29,126,806
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR......... 139,308 - 74,110,450 44,983,644
------------ ------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR............... $ 3,952,128 139,308 101,757,290 74,110,450
============ ======= =========== ==========
<CAPTION>
PutVoyFd SEI500Ix
---------------------------- ---------------------------
1999 1998 1999 1998
----------- ----------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........................... - - 746,637 362,899
Mortality and expense charges (note 2) ......... - (252,564) - (37,050)
Administration charge (note 2):
Tier I ................................ - (140,670) - (936)
Tier II ............................... - (37,138) - (341)
Tier III .............................. - (13,406) - -
Tier IV ............................... - (6,144) - -
Tier V ................................ - (3,642) - (10,675)
Variable account fee (notes 2 and 5) ........... (2,093,710) (1,017,243) (288,313) (151,150)
----------- ----------- ---------- ----------
Net investment activity ..................... (2,093,710) (1,470,807) 458,324 162,747
Proceeds from mutual fund shares sold .......... 6,679,291 2,943,852 12,522,344 6,687,829
Cost of mutual fund shares sold ................ (3,152,859) (1,717,411) (8,972,811) (5,220,572)
----------- ----------- ---------- ----------
Realized gain (loss) on investments ......... 3,526,432 1,226,441 3,549,533 1,467,257
Change in unrealized gain (loss) on investments 90,547,953 22,821,764 6,245,625 5,210,894
----------- ----------- ---------- ----------
Net gain (loss) on investments .............. 94,074,385 24,048,205 9,795,158 6,678,151
----------- ----------- ---------- ----------
Reinvested capital gains ....................... 31,460,845 13,977,317 461,005 365,867
----------- ----------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ........ 123,441,520 36,554,715 10,714,487 7,206,765
----------- ----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................. 45,178,472 51,708,613 22,356,669 21,490,017
Transfers between funds ........................ 7,609,491 (6,170,941) 703,191 3,560,351
Redemptions .................................... (13,955,134) (11,182,910) (7,441,412) (5,241,962)
Annual contract maintenance charge (note 2) .... (312) - - -
Contingent deferred sales charges (note 2) ..... (2,230) (4) (32) -
Adjustments to maintain reserves ............... 4,376 9,322 647 506
----------- ----------- ---------- ----------
Net equity transactions ................... 38,834,663 34,364,080 15,619,063 19,808,912
NET CHANGE IN CONTRACT OWNERS' EQUITY............. 162,276,183 70,918,795 26,333,550 27,015,677
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR......... 208,797,858 137,879,063 42,273,711 15,258,034
----------- ----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR............... 371,074,041 208,797,858 68,607,261 42,273,711
=========== =========== ========== ==========
</TABLE>
(Continued)
<PAGE> 27
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
SelGroFd TRIntStk
-------------------------- -------------------------
1999 1998 1999 1998
----------- --------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - 5,032 311,892 521,061
Mortality and expense charges (note 2) .......... - (5,110) - (52,439)
Administration charge (note 2):
Tier I ................................. - (1,877) - (21,726)
Tier II ................................ - (192) - (5,357)
Tier III ............................... - (122) - (1,917)
Tier IV ................................ - (6) - (951)
Tier V ................................. - (770) - (4,810)
Variable account fee (notes 2 and 5) ............ (27,550) (17,203) (296,977) (181,636)
----------- --------- ---------- ----------
Net investment activity ...................... (27,550) (20,248) 14,915 252,225
Proceeds from mutual fund shares sold ........... 257,122 297,835 50,062,337 31,774,044
Cost of mutual fund shares sold ................. (169,380) (221,285) (46,248,187) (30,649,976)
----------- --------- ---------- ----------
Realized gain (loss) on investments .......... 87,742 76,550 3,814,150 1,124,068
Change in unrealized gain (loss) on investments . 531,420 571,477 6,402,878 2,514,226
----------- --------- ---------- ----------
Net gain (loss) on investments ............... 619,162 648,027 10,217,028 3,638,294
----------- --------- ---------- ----------
Reinvested capital gains ........................ 456,540 331,423 2,183,241 828,961
----------- --------- ---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 1,048,152 959,202 12,415,184 4,719,480
----------- --------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 130,711 145,949 6,494,567 9,017,358
Transfers between funds ......................... (106,218) (100,050) (4,601,518) (4,932,049)
Redemptions ..................................... (138,344) (198,476) (2,073,321) (2,532,969)
Annual contract maintenance charge (note 2) ..... (370) (366) (50) -
Contingent deferred sales charges (note 2) ...... (212) (131) (278) -
Adjustments to maintain reserves ................ (5) (79) 1,467 3,925
----------- --------- ---------- ----------
Net equity transactions .................... (114,438) (153,153) (179,133) 1,556,265
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 933,714 806,049 12,236,051 6,275,745
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 3,659,593 2,853,544 36,489,979 30,214,234
----------- --------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 4,593,307 3,659,593 48,726,030 36,489,979
=========== ========= ========== ==========
<CAPTION>
TemForFd TemGISmCo
------------------------- -----------------------
1999 1998 1999 1998
---------- ---------- --------- --------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 2,263,940 1,717,754 - -
Mortality and expense charges (note 2) .......... - (132,310) - (201)
Administration charge (note 2):
Tier I ................................. - (77,451) - 393
Tier II ................................ - (22,334) - -
Tier III ............................... - (5,316) - -
Tier IV ................................ - (2,176) - -
Tier V ................................. - (1,211) - (191)
Variable account fee (notes 2 and 5) ............ (472,797) (381,394) - -
---------- ---------- --------- --------
Net investment activity ...................... 1,791,143 1,095,562 - 1
Proceeds from mutual fund shares sold ........... 47,659,979 26,694,944 - -
Cost of mutual fund shares sold ................. (51,043,853) (25,001,333) - -
---------- ---------- --------- --------
Realized gain (loss) on investments .......... (3,383,874) 1,693,611 - -
Change in unrealized gain (loss) on investments . 23,027,027 (11,318,099) - -
---------- ---------- --------- --------
Net gain (loss) on investments ............... 19,643,153 (9,624,488) - -
---------- ---------- --------- --------
Reinvested capital gains ........................ 675,137 5,054,162 - -
---------- ---------- --------- --------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 22,109,433 (3,474,764) - 1
---------- ---------- --------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 10,745,043 16,189,377 - -
Transfers between funds ......................... (8,533,314) (22,661,049) - -
Redemptions ..................................... (3,441,970) (7,971,478) - -
Annual contract maintenance charge (note 2) ..... (115) - - -
Contingent deferred sales charges (note 2) ...... - - - -
Adjustments to maintain reserves ................ 6,688 (5,084) - (1)
---------- ---------- --------- --------
Net equity transactions .................... (1,223,668) (14,448,234) - (1)
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 20,885,765 (17,922,998) - -
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 62,795,999 80,718,997 - -
---------- ---------- --------- --------
CONTRACT OWNERS' EQUITY END OF YEAR................ 83,681,764 62,795,999 - -
========== ========== ========= ========
</TABLE>
<PAGE> 28
NATIONWIDE DC VARIABLE ACCOUNT
STATEMENTS OF CHANGES IN
CONTRACT OWNERS'EQUITY,CONTINUED
STATEMENTS OF OPERATIONS, Continued
YEARS ENDED DECEMBER 31,1999 AND 1998
<TABLE>
<CAPTION>
WPEmGro
---------------------------
1999 1998
----------- --------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ - -
Mortality and expense charges (note 2) .......... - (10)
Administration charge (note 2):
Tier I ................................. - (9)
Tier II ................................ - -
Tier III ............................... - -
Tier IV ................................ - -
Tier V ................................. - -
Variable account fee (notes 2 and 5) ............ (2,890) (29)
----------- ------
Net investment activity ...................... (2,890) (48)
Proceeds from mutual fund shares sold ........... 317,121 51,701
Cost of mutual fund shares sold ................. (282,446) (49,825)
----------- ------
Realized gain (loss) on investments .......... 34,675 1,876
Change in unrealized gain (loss) on investments . 147,158 5,218
----------- ------
Net gain (loss) on investments ............... 181,833 7,094
----------- ------
Reinvested capital gains ........................ 121,883 -
----------- ------
Net increase (decrease) in contract owners'
equity resulting from operations ......... 300,826 7,046
----------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .............................. 258,652 5,190
Transfers between funds ......................... 679,591 89,747
Redemptions ..................................... (36,854) (43,768)
Annual contract maintenance charge (note 2) ..... - -
Contingent deferred sales charges (note 2) ...... - -
Adjustments to maintain reserves ................ (104) 22
----------- ------
Net equity transactions .................... 901,285 51,191
NET CHANGE IN CONTRACT OWNERS' EQUITY.............. 1,202,111 58,237
CONTRACT OWNERS' EQUITY BEGINNING OF YEAR.......... 58,237 -
----------- ------
CONTRACT OWNERS' EQUITY END OF YEAR................ $ 1,260,348 58,237
=========== ======
</TABLE>
See accompanying notes to financial statements.
<PAGE> 29
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999 AND 1998
(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 subaccounts:
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 America(SM), Inc. (BdFdAm)
(not available for contracts issued on or after January 1, 1994)
Brown Capital Management - Small Company Fund (BrnCapSmCo)
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)
The Institutional Shares of Federated GNMA Trust (FedGNMA)
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 Manager(TM) (FidAsMgr)
Fidelity Capital & Income Fund (FidCapInc)
(not available for contracts issued on or after January 1, 1987)
<PAGE> 30
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)
Nationwide(R) Mutual Funds
(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)
Prestige Balanced Fund - Class Y (PrBalY)
Prestige International Fund - Class Y (PrIntY)
Prestige Large Cap Growth Fund - Class Y (PrLgCapGrY)
Prestige Large Cap Value Fund - Class Y (PrLgCpValY)
Prestige Small Cap Fund - Class Y (PrSmCapY)
Nationwide(R) SAT - Income Fund (NSATInc)
(managed for a fee by an affiliated investment advisor)
Nationwide(R) SAT - Small Company Fund (NSATSmCo)
(managed for a fee by an affiliated investment advisor)
(Continued)
<PAGE> 31
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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);
American Century VP - American Century VP Balanced (ACVPBal)
American Century VP - American Century VP Capital Appreciation
(ACVPCapAp)
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(R) SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide(R) SAT - Government Bond Fund (NSATGvtBd)
Nationwide(R) SAT - Money Market Fund (NSATMyMkt)
Nationwide(R) SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman AMT);
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger & Berman AMT - Limited Maturity Bond Portfolio
(NBAMTLMat)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
All of the above funds were being utilized as of December 31, 1999,
except AIM Equity Funds, Inc. - AIM Weingarten Fund - Institutional
Class (AIMWein), The Institutional Shares of Federated GNMA Trust
(FedGNMA), Fidelity OTC Portfolio (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).
<PAGE> 32
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, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the IRC. The assets in this account are held pursuant to
contracts with entities which are exempt from Federal income tax.
Because of this exemption, no taxes need be provided for investment
income or realized and unrealized capital gains. Annuity payouts and
withdrawal payments are taxable as wages when received by the
participants.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Annuity Payout Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(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.
(Continued)
<PAGE> 33
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
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 through
April 30, 1998, the administration charge was based upon the aggregate
balance of assets held under the contract by each contract owner as
follows:
Expense Administration
Tier Assets (Millions) Charge
--------- -------------- ------------
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%
The administration charge implemented on November 1, 1996 was based on the
June 30, 1996 asset balance. Thereafter, the administrative charge was
determined using the December 31 asset balance and became effective on the
following May 1.
Beginning May 1, 1998 the Company will assess a charge for a Variable
Account Fee on all contracts outstanding. 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 Variable 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.
<PAGE> 34
(4) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at December 31, 1999.
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
AIM Equity Funds, Inc.-
AIM Constellation Fund -
Institutional Class . . . . . . .0.40% 3,221,521 $ 3.951118 $ 12,728,610 44%
American Century:
Income & Growth Fund . . . . . . .0.80% 4,099,338 1.284360 5,265,026 17%
0.70% 1,121,163 1.285813 1,441,606 17%
0.55% 737,029 1.287995 949,290 17%
0.40% 498,580 1.290181 643,258 17%
0.35% 139,180 1.290910 179,669 18%
0.30% 146,747 1.291640 189,544 18%
0.25% 186,953 1.292371 241,613 18%
0.20% 21,046 1.293101 27,215 18%
0.15% 432,773 1.293832 559,936 18%
American Century:
Twentieth Century Growth Fund . .0.95% 9,773,380 10.560508 103,211,858 33%
0.90% 3,375,777 10.577210 35,706,302 33%
0.80% 3,278,927 10.610693 34,791,688 34%
0.65% 1,084,862 10.666614 11,571,804 34%
0.60% 222,325 10.644483 2,366,535 34%
0.50% 721,853 10.616300 7,663,408 34%
0.40% 7,486,254 10.628738 79,569,432 34%
0.35% 177,055 10.675688 1,890,184 34%
0.30% 269,370 10.678583 2,876,490 34%
American Century:Twentieth Century
International Discovery Fund . . .0.80% 3,037,882 2.028049 6,160,974 87%
0.70% 1,254,474 2.030338 2,547,006 87%
0.55% 739,410 2.033777 1,503,795 88%
0.40% 438,110 2.037221 892,527 88%
0.35% 125,081 2.038370 254,961 88%
0.30% 14,874 2.039521 30,336 88%
0.25% 498,602 2.040671 1,017,483 88%
0.20% 39,397 2.041822 80,442 88%
0.15% 4,889,042 2.042975 9,988,191 88%
American Century:
Twentieth Century Select Fund. . .0.95% 64,193 3.349715 215,028 21%
0.65% 1,330,720 3.361506 4,473,223 21%
American Century:
Twentieth Century Ultra Fund . . .0.95% 72,862,901 4.714664 343,524,096 40%
0.90% 22,045,290 4.722120 104,100,505 40%
0.80% 16,063,912 4.737067 76,095,827 40%
0.65% 11,961,825 4.762030 56,962,570 41%
0.60% 1,194,596 4.752151 5,676,901 41%
0.50% 2,603,337 4.739567 12,338,690 41%
0.40% 27,413,248 4.745119 130,079,124 41%
0.35% 1,308,709 4.766080 6,237,412 41%
0.30% 788,095 4.767375 3,757,144 41%
</TABLE>
(Continued)
<PAGE> 35
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
American Century VP -
American Century VP Balanced .....0.95% 13,585 1.887476 25,641 9%
American Century VP - American
Century VP Capital Appreciation.. 0.95% 51,427 2.480278 127,553 63%
The Bond Fund of America(SM), Inc... 0.95% 3,406,302 2.461916 8,386,029 1%
0.90% 948,592 2.465874 2,339,108 1%
0.80% 762,842 2.473803 1,887,121 1%
0.65% 284,552 2.487024 707,688 2%
0.60% 99,564 2.481842 247,102 2%
0.55% 63,570 2.479919 157,648 2%
0.50% 113,337 2.475221 280,534 2%
0.40% 1,342,293 2.478179 3,326,442 2%
0.35% 29,454 2.489266 73,319 2%
Brown Capital Management -
Small Company Fund ............. 0.80% 41,331 1.348543 55,737 35%(a)
0.70% 4,867 1.348878 6,565 35%(a)
0.55% 27,813 1.349380 37,530 35%(a)
0.40% 37,793 1.349883 51,016 35%(a)
0.30% 8,181 1.350218 11,046 35%(a)
0.25% 2,091 1.350386 2,824 35%(a)
0.20% 6,584 1.350553 8,892 35%(a)
Davis New York Venture Fund, Inc -
Class A ........................ 0.90% 116,577 2.960004 345,068 17%
Delaware Group Decatur Fund Inc.-
Decatur Income Fund
Institutional Class ............ 0.95% 48,219 3.061228 147,609 4%
0.90% 22,390 3.066072 68,649 4%
0.80% 3,294 3.075782 10,132 4%
0.65% 26 3.072015 80 4%
0.60% 6,112 3.085589 18,859 4%
0.35% 143 3.094647 443 4%
Dreyfus Appreciation Fund, Inc...... 0.80% 2,360,495 1.178335 2,781,454 9%
0.70% 633,725 1.179669 747,586 9%
0.55% 527,407 1.181672 623,222 9%
0.40% 148,798 1.183678 176,129 10%
0.35% 77,549 1.184347 91,845 10%
0.30% 161,641 1.185017 191,547 10%
0.25% 57,224 1.185687 67,850 10%
0.20% 5,899 1.186358 6,998 10%
0.15% 133,319 1.187029 158,254 10%
Dreyfus Cash Management -
Class A ......................... 0.90% 138,879 1.321023 183,462 4%
</TABLE>
<PAGE> 36
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Dreyfus Premier Midcap Stock -
Class A............................. 0.80% 223,901 1.243793 278,486 10%
0.70% 62,728 1.245200 78,109 10%
0.55% 62,807 1.247314 78,340 10%
0.40% 46,051 1.249431 57,538 10%
0.35% 733 1.250137 916 10%
0.30% 3,091 1.250844 3,866 10%
0.25% 18,329 1.251552 22,940 10%
0.20% 1,365 1.252259 1,709 10%
0.15% 118,232 1.252967 148,141 10%
Dreyfus S&P 500 Index Fund............ 0.95% 33,167,813 1.840155 61,033,917 19%
0.90% 8,433,585 1.842610 15,539,808 19%
0.80% 6,741,003 1.847528 12,454,192 19%
0.65% 7,202,634 1.846634 13,300,629 19%
0.60% 1,329,208 1.853414 2,463,573 20%
0.55% 347,168 1.852895 643,266 20%
0.50% 1,939,404 1.849882 3,587,669 20%
0.35% 717,794 1.858850 1,334,271 20%
The Dreyfus Socially Responsible
Growth Fund, Inc................... 0.95% 11,890 3.286639 39,078 29%
Dreyfus Stock Index Fund.............. 0.95% 58,848 3.206243 188,681 19%
The Dreyfus Third Century Fund, Inc... 0.95% 40,022 5.872109 235,014 29%
0.90% 26,205 5.881397 154,122 29%
0.80% 5,741,865 5.900015 33,877,090 29%
0.70% 1,624,322 5.918693 9,613,863 29%
0.55% 1,079,203 5.899679 6,366,951 29%
0.40% 946,827 5.910051 5,595,796 30%
0.35% 261,622 5.942379 1,554,657 30%
0.30% 147,027 5.937771 873,013 30%
0.25% 184,580 5.920440 1,092,795 30%
0.20% 34,885 5.952826 207,664 30%
0.15% 3,233,255 5.927377 19,164,721 30%
Evergreen Income And Growth Fund -
Class Y............................ 0.95% 575,792 2.744107 1,580,035 15%
0.90% 203,892 2.748449 560,387 15%
0.80% 139,239 2.757154 383,903 15%
0.65% 16,372 2.771693 45,378 16%
0.60% 3,198 2.765943 8,845 16%
0.55% 52,484 2.763799 145,055 16%
0.50% 8,510 2.758615 23,476 16%
0.40% 365,065 2.761849 1,008,254 16%
0.35% 13,462 2.774057 37,344 16%
Federated Investment Series Fund, Inc.
Federated Bond Fund - Class F...... 0.80% 408,645 0.986932 403,305 3%
0.70% 67,164 0.988049 66,361 3%
0.55% 1,031,837 0.989728 1,021,238 3%
0.40% 61,902 0.991409 61,370 3%
0.35% 124 0.991970 123 3%
0.20% 328 0.993656 326 3%
0.15% 52,289 0.994218 51,987 2%
</TABLE>
(Continued)
<PAGE> 37
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Federated U.S.Government
Securities Fund:2-5 Years -
Institutional Shares......................... 0.95% 3,114,074 1.281395 3,990,359 1%
0.90% 1,073,320 1.283445 1,377,547 1%
0.80% 677,902 1.287550 872,833 1%
0.65% 519,878 1.286256 668,696 1%
0.60% 89,786 1.291685 115,975 1%
0.55% 95,731 1.290667 123,557 1%
0.50% 23,528 1.288688 30,320 1%
0.35% 1,804 1.295754 2,338 1%
Fidelity Advisor Growth Opportunities
Fund - Class A............................... 0.80% 1,561,973 1.124760 1,756,845 3%
0.70% 393,614 1.126033 443,222 3%
0.55% 171,510 1.127945 193,454 4%
0.40% 100,819 1.129860 113,911 4%
0.35% 15,210 1.130500 17,195 4%
0.30% 918 1.131139 1,038 4%
0.25% 17,444 1.131779 19,743 4%
0.20% 2,559 1.132419 2,898 4%
0.15% 55,638 1.133060 63,041 4%
Fidelity Advisor High Yield Fund -
Class T...................................... 0.80% 451,076 1.144516 516,264 7%
0.70% 103,457 1.145866 118,548 8%
0.55% 36,883 1.147891 42,338 8%
0.40% 5,799 1.149917 6,668 8%
0.35% 306 1.150592 352 8%
0.30% 242 1.151268 279 8%
0.25% 42,423 1.151943 48,869 8%
0.20% 52 1.152619 60 8%
Fidelity Asset Manager(TM)..................... 0.95% 3,890,385 1.963180 7,637,526 13%
0.90% 881,771 1.966286 1,733,814 13%
0.80% 712,331 1.972513 1,405,082 13%
0.65% 688,022 1.970094 1,355,468 13%
0.60% 51,663 1.978799 102,231 13%
0.55% 34,007 1.977265 67,241 13%
0.50% 278,360 1.973560 549,360 13%
0.35% 83,541 1.984605 165,796 13%
Fidelity Capital & Income Fund................ 0.95% 73,052 5.414988 395,576 12%
0.90% 31,159 5.423649 168,995 12%
0.80% 42,613 5.440999 231,857 12%
0.65% 13,256 5.469896 72,509 12%
0.50% 10,392 5.445808 56,593 13%
0.40% 58,579 5.452661 319,411 13%
0.35% 3,640 5.456089 19,860 13%
</TABLE>
<PAGE> 38
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Fidelity Contrafund ............................... 0.95% 69,533,635 4.050734 281,662,259 24%
0.90% 18,837,816 4.057141 76,427,676 24%
0.80% 13,989,579 4.069987 56,937,405 24%
0.65% 10,947,667 4.091441 44,791,734 24%
0.60% 1,002,128 4.082951 4,091,640 24%
0.55% 584,972 4.079783 2,386,559 24%
0.50% 2,107,617 4.072136 8,582,503 24%
0.40% 7,939,844 4.076907 32,370,006 25%
0.35% 720,474 4.094921 2,950,284 25%
Fidelity Equity - Income Fund .................... 0.95% 16,073,617 8.164209 131,228,369 6%
0.90% 5,697,594 8.177127 46,589,950 6%
0.80% 4,320,699 8.203023 35,442,793 6%
0.65% 2,331,508 8.246273 19,226,251 6%
0.60% 160,208 8.229176 1,318,380 7%
0.55% 94,865 8.222803 780,056 7%
0.50% 1,365,387 8.207390 11,206,264 7%
0.40% 7,000,669 8.217016 57,524,609 7%
0.35% 270,892 8.253327 2,235,760 7%
Fidelity Growth & Income Portfolio ................ 0.40% 6,969,605 3.611237 25,168,895 10%
Fidelity Magellan(R) Fund ......................... 0.95% 51,113,926 3.901714 199,431,921 23%
0.90% 12,438,056 3.907885 48,606,492 23%
0.80% 9,379,290 3.920256 36,769,218 23%
0.65% 6,699,000 3.940918 26,400,210 23%
0.60% 760,113 3.932743 2,989,329 23%
0.55% 306,414 3.929695 1,204,114 23%
0.50% 2,413,022 3.922330 9,464,669 23%
0.40% 23,673,464 3.926927 92,963,965 24%
0.35% 533,977 3.944274 2,106,152 24%
Fidelity VIP - Asset Manager Portfolio............. 0.95% 33,479 1.884262 63,083 10%
Fidelity VIP - Equity Income Portfolio............. 0.95% 107,713 2.180834 234,904 5%
Fidelity VIP - Growth Portfolio.................... 0.95% 102,768 3.571641 367,050 36%
Fidelity VIP - High Income Portfolio............... 0.95% 20,700 1.584412 32,797 7%
Fidelity VIP - Overseas Portfolio.................. 0.95% 96,278 2.013540 193,860 41%
The Growth Fund of America(R), Inc................. 0.95% 3,020,836 6.372783 19,251,132 44%
0.90% 886,629 6.382860 5,659,229 44%
0.80% 665,341 6.403063 4,260,220 45%
0.65% 434,365 6.395199 2,777,851 45%
0.60% 188,240 6.423449 1,209,150 45%
0.55% 46,601 6.418466 299,107 45%
0.50% 219,394 6.406436 1,405,534 45%
0.35% 21,026 6.442272 135,455 45%
</TABLE>
(Continued)
<PAGE> 39
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
The Income Fund of America(R), Inc........ 0.95% 4,114,668 2.822987 11,615,654 0%
0.90% 1,042,018 2.827454 2,946,258 0%
0.80% 982,366 2.836409 2,786,392 0%
0.65% 278,766 2.832933 789,725 0%
0.60% 182,127 2.845453 518,234 0%
0.55% 46,183 2.843248 131,310 0%
0.50% 241,490 2.837919 685,329 0%
0.35% 25,458 2.853804 72,652 0%
INVESCO Dynamics Fund, Inc................ 0.80% 6,813,160 1.998173 13,613,872 70%
0.70% 2,368,456 2.000430 4,737,930 71%
0.55% 1,832,664 2.003821 3,672,331 71%
0.40% 1,083,453 2.007217 2,174,725 71%
0.35% 228,782 2.008350 459,474 71%
0.30% 222,915 2.009484 447,944 71%
0.25% 720,542 2.010619 1,448,735 71%
0.20% 90,653 2.011755 182,372 71%
0.15% 8,448,102 2.012890 17,005,100 72%
INVESCO Industrial Income Fund, Inc....... 0.95% 7,365,327 2.655967 19,562,065 12%
0.90% 1,747,453 2.660169 4,648,520 12%
0.80% 1,289,279 2.668593 3,440,561 12%
0.65% 843,299 2.665322 2,247,663 12%
0.60% 96,777 2.677099 259,082 12%
0.55% 151,879 2.675024 406,280 12%
0.50% 171,754 2.670011 458,585 12%
0.35% 60,051 2.684954 161,234 12%
INVESCO Total Return Fund ................ 0.80% 757,252 1.001721 758,555 2%
0.70% 221,032 1.002855 221,663 2%
0.55% 68,424 1.004559 68,736 2%
0.40% 102,981 1.006265 103,626 2%
0.35% 155,683 1.006835 156,747 2%
0.30% 11,842 1.007404 11,930 2%
0.25% 48,323 1.007975 48,708 2%
0.20% 24,666 1.008545 24,877 2%
Janus Fund ............................... 0.95% 46,328,151 3.907654 181,034,385 46%
0.90% 13,891,900 3.913834 54,370,591 46%
0.80% 11,225,252 3.926222 44,072,831 46%
0.65% 8,056,954 3.921398 31,594,523 46%
0.60% 1,468,959 3.938722 5,785,821 46%
0.50% 3,071,302 3.928288 12,064,959 46%
0.35% 457,325 3.950263 1,806,554 47%
0.30% 928,552 3.951336 3,669,021 47%
Janus Worldwide Fund...................... 0.95% 1,050,360 2.021004 2,122,782 63%
</TABLE>
<PAGE> 40
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
MAS Funds - Fixed Income Portfolio........ 0.95% 2,844,269 1.391983 3,959,174 2%
0.90% 356,213 1.394187 496,628 2%
0.80% 640,609 1.398604 895,958 1%
0.65% 518,616 1.396889 724,449 1%
0.60% 149,573 1.403064 209,860 1%
0.55% 31,369 1.401976 43,979 1%
0.50% 49,975 1.399348 69,932 1%
0.35% 6,085 1.407184 8,563 1%
Massachusetts Investors Growth Stock
Fund - Class A ........................ 0.95% 171,618 30.435351 5,223,254 37%
0.90% 34,300 30.483476 1,045,583 38%
0.80% 9,966 30.579953 304,760 38%
0.65% 2,247 30.741088 69,075 38%
0.55% 1,094 30.653547 33,535 38%
0.50% 235 30.596117 7,190 38%
0.40% 261,200 30.631957 8,001,067 38%
MFS((R)) Growth Opportunities Fund -
Class A ............................... 0.95% 392,659 15.172145 5,957,479 32%
0.90% 278,945 15.196145 4,238,889 32%
0.80% 158,132 15.244258 2,410,605 32%
0.65% 89,067 15.324618 1,364,918 32%
0.55% 16,775 15.280950 256,338 32%
0.50% 4,879 15.252302 74,416 32%
0.40% 1,932,941 15.270172 29,516,342 32%
0.35% 5,806 15.337646 89,050 32%
MFS((R)) High Income Fund - Class A....... 0.95% 142,768 6.542182 934,014 6%
0.90% 20,059 6.552645 131,440 6%
0.80% 27,277 6.573607 179,308 6%
0.65% 2,074 6.608519 13,706 6%
0.55% 2,328 6.589522 15,340 6%
0.40% 529,921 6.587697 3,490,959 7%
0.35% 574 6.615489 3,797 7%
Morgan Stanley Institutional Fund -
Equity Growth Portfolio - Class B...... 0.80% 538,687 1.530130 824,261 38%
0.70% 174,980 1.531860 268,045 38%
0.55% 52,628 1.534459 80,756 39%
0.40% 38,243 1.537062 58,782 39%
0.35% 1,216 1.537930 1,870 39%
0.30% 6,866 1.538799 10,565 39%
0.25% 36,773 1.539669 56,618 39%
0.20% 113 1.540539 174 39%
0.15% 540,401 1.541410 832,980 39%
NAAT - The Aggressive Portfolio........... 0.70% 2,218,802 1.421032 3,152,989 23%
0.60% 363,464 1.425179 518,001 23%
0.45% 192,690 1.422449 274,092 24%
0.25% 50,699 1.425785 72,286 24%
0.20% 233,674 1.431872 334,591 24%
0.15% 54,968 1.432505 78,742 24%
0.10% 80,158 1.428292 114,489 24%
</TABLE>
(Continued)
<PAGE> 41
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
NAAT - The Conservative Portfolio....... 0.70% 882,125 1.144210 1,009,336 3%
0.60% 126,881 1.147549 145,602 3%
0.45% 57,204 1.145355 65,519 3%
0.25% 109,576 1.148044 125,798 4%
0.20% 2,597 1.152943 2,994 4%
0.15% 14,747 1.153453 17,010 4%
NAAT - The Moderate Portfolio .......... 0.70% 2,040,824 1.307445 2,668,265 14%
0.60% 409,338 1.311261 536,749 14%
0.45% 150,163 1.308751 196,526 14%
0.25% 7,558 1.311822 9,915 15%
0.20% 96,127 1.317421 126,640 15%
0.15% 45,388 1.318004 59,822 15%
NAAT - The Moderately Aggressive
Portfolio........................... 0.70% 1,750,808 1.355141 2,372,592 19%
0.60% 403,961 1.359095 549,021 19%
0.45% 162,211 1.356493 220,038 19%
0.25% 51,435 1.359675 69,935 19%
0.20% 137,378 1.365479 187,587 19%
0.15% 85,891 1.366083 117,334 19%
0.10% 36,740 1.362067 50,042 19%
NAAT - The Moderately Conservative
Portfolio .......................... 0.70% 721,136 1.234169 890,004 9%
0.60% 36,763 1.237770 45,504 9%
0.45% 281,629 1.235402 347,925 9%
0.25% 53,327 1.238302 66,035 10%
0.20% 25,556 1.243587 31,781 10%
0.15% 23,410 1.244137 29,125 10%
Nationwide(R) Bond Fund - Class D...... 0.95% 73,080 2.239633 163,672 4%
0.40% 43,149 2.255215 97,310 3%
Nationwide(R) Fund - Class D........... 0.95% 245,623 26.409607 6,486,807 1%
0.90% 11,811 26.451387 312,417 1%
0.80% 3,202,045 26.535147 84,966,735 1%
0.70% 823,372 26.619171 21,917,480 1%
0.55% 627,946 26.533779 16,661,780 1%
0.40% 430,997 26.580493 11,456,113 1%
0.35% 79,358 26.725868 2,120,911 1%
0.30% 45,608 26.705183 1,217,970 1%
0.25% 91,485 26.627289 2,435,998 0%
0.20% 33,133 26.772920 887,067 0%
0.15% 1,112,789 26.658533 29,665,322 0%
</TABLE>
<PAGE> 42
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Nationwide(R) Growth Fund - Class D...... 0.95% 869,228 5.459300 4,745,376 16%
0.90% 218,121 5.467936 1,192,672 16%
0.80% 230,411 5.485250 1,263,862 16%
0.65% 402,620 5.514166 2,220,114 16%
0.60% 1,403 5.502728 7,720 16%
0.55% 31,462 5.498462 172,993 16%
0.50% 24,078 5.488156 132,144 16%
0.40% 990,383 5.494590 5,441,749 16%
0.35% 19,758 5.518868 109,042 16%
Nationwide(R) Money Market Fund.......... 0.95% 203,439 3.241560 659,460 4%
0.80% 13,061,105 3.257131 42,541,730 4%
0.70% 5,308,031 3.267540 17,344,204 4%
0.55% 4,345,303 3.265016 14,187,484 4%
0.40% 3,318,221 3.264112 10,831,045 4%
0.35% 244,130 3.277883 800,230 4%
0.30% 303,516 3.275296 994,105 4%
0.25% 2,172,198 3.270268 7,103,670 4%
0.20% 304,873 3.284062 1,001,222 4%
0.15% 7,211,248 3.274374 23,612,323 5%
Nationwide(R) S&P 500 Index Fund -
Class Y............................... 0.80% 4,573,329 1.299566 5,943,343 19%
0.70% 676,972 1.301036 880,765 19%
0.55% 897,383 1.303244 1,169,509 19%
0.40% 297,116 1.305455 387,872 19%
0.35% 123,439 1.306193 161,235 19%
0.30% 8,893 1.306932 11,623 19%
0.25% 29,576 1.307671 38,676 19%
0.20% 77,160 1.308410 100,957 20%
0.15% 2,082,744 1.309150 2,726,624 20%
Nationwide SAT -
Government Bond Fund.................. 0.95% 11,271 1.829069 20,615 3%
Nationwide SAT - Income Fund............. 0.80% 2,838 0.996375 2,828 0%(a)
0.70% 6,307 0.996623 6,286 0%(a)
0.55% 1,007 0.996996 1,004 0%(a)
0.30% 101,913 0.997618 101,670 0%(a)
Nationwide SAT -
Money Market Fund..................... 0.95% 85,798 1.422053 122,009 4%
Nationwide SAT -
Small Company Fund.................... 0.80% 1,963,101 1.460854 2,867,804 43%
0.70% 845,013 1.463697 1,236,843 43%
0.55% 509,029 1.442332 734,189 43%
0.40% 268,592 1.444867 388,080 43%
0.35% 25,917 1.469803 38,093 44%
0.30% 5,845 1.471996 8,604 44%
0.25% 55,162 1.447406 79,842 44%
0.20% 23,771 1.472386 35,000 44%
Nationwide SAT - Total Return Fund....... 0.95% 44,002 3.739747 164,556 6%
</TABLE>
(Continued)
<PAGE> 43
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Neuberger & Berman AMT -
Growth Portfolio ................... 0.95% 16,868 3.911719 65,983 49%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio .... 0.95% 10,466 1.242028 12,999 1%
Neuberger & Berman AMT -
Partners Portfolio ................. 0.95% 30,527 2.392658 73,041 6%
Neuberger & Berman Equity Funds -
Guardian Fund ...................... 0.40% 842,086 1.749050 1,472,851 8%
Neuberger & Berman Equity Funds -
Manhattan Fund ..................... 0.95% 70,169 5.418154 380,186 49%
Neuberger & Berman Equity Trust -
Partners Trust ..................... 0.80% 90,861 1.113054 101,133 7%
0.70% 48,943 1.114314 54,538 7%
0.55% 12,556 1.116206 14,015 7%
0.40% 1,652 1.118102 1,847 7%
0.25% 16,168 1.120001 18,108 7%
0.20% 32 1.120634 36 7%
Prestige Balanced Fund -
Class Y ............................ 0.70% 326,847 1.151398 376,331 9%
0.60% 55,011 1.152701 63,411 9%
0.45% 57,978 1.154658 66,945 9%
0.25% 8,349 1.157273 9,662 9%
0.20% 521 1.157927 603 9%
0.00% 61,260 1.160549 71,095 9%
Prestige International Fund -
Class Y ............................ 0.70% 153,162 1.316225 201,596 21%
0.60% 6,408 1.317714 8,444 21%
0.45% 42,382 1.319950 55,942 21%
0.25% 33,534 1.322937 44,363 21%
0.15% 15,758 1.324432 20,870 21%
0.00% 16,001 1.326680 21,228 21%
Prestige Large Cap Growth Fund -
Class Y ............................ 0.70% 812,797 1.525781 1,240,150 34%
0.60% 118,191 1.527506 180,537 34%
0.45% 376,952 1.530097 576,773 34%
0.25% 30,742 1.533558 47,145 34%
0.20% 21,237 1.534425 32,587 35%
0.10% 42,978 1.536159 66,021 35%
0.00% 150,974 1.537896 232,182 35%
</TABLE>
<PAGE> 44
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Prestige Large Cap Value Fund -
Class Y........................ 0.70% 136,335 0.993783 135,487 5%
0.60% 7,280 0.994908 7,243 5%
0.45% 48,328 0.996598 48,164 5%
0.25% 16,763 0.998856 16,744 5%
0.20% 504 0.999421 504 5%
0.15% 499 0.999986 499 5%
0.10% 582 1.000552 582 5%
0.00% 20,014 1.001685 20,048 5%
Prestige Small Cap Fund -
Class Y........................ 0.70% 440,526 1.285935 566,488 18%
0.60% 58,575 1.287390 75,409 18%
0.45% 91,958 1.289575 118,587 18%
0.25% 40,208 1.292494 51,969 18%
0.20% 10,351 1.293224 13,386 19%
0.15% 77 1.293956 100 19%
0.10% 8,132 1.294687 10,528 19%
0.00% 301,790 1.296152 391,166 19%
Oppenheimer Global Fund - Class A.. 0.80% 1,389,141 1.739511 2,416,426 57%
0.70% 238,979 1.741477 416,176 57%
0.55% 258,765 1.744429 451,397 58%
0.40% 227,057 1.747386 396,756 58%
0.35% 32,584 1.748372 56,969 58%
0.30% 6,349 1.749360 11,107 58%
0.25% 110,037 1.750348 192,603 58%
0.20% 6,106 1.751336 10,694 58%
Putnam Investors Fund - Class A.... 0.95% 537,267 31.341504 16,838,756 29%
0.90% 105,667 31.391074 3,317,001 29%
0.80% 61,479 31.490449 1,936,001 29%
0.65% 18,355 31.656407 581,053 29%
0.60% 4,084 31.590747 129,017 29%
0.55% 10,721 31.566252 338,422 29%
0.50% 4,370 31.507110 137,686 29%
0.40% 2,486,684 31.544030 78,440,035 30%
0.35% 1,241 31.683372 39,319 30%
Putnam Voyager Fund - Class A...... 0.95% 26,953,260 7.292508 196,556,864 55%
0.90% 6,582,645 7.304042 48,079,916 55%
0.80% 7,607,104 7.327165 55,738,506 55%
0.65% 3,895,165 7.365787 28,690,956 55%
0.60% 456,489 7.350493 3,355,419 55%
0.50% 1,243,339 7.331012 9,114,933 55%
0.40% 3,533,648 7.339596 25,935,549 56%
0.35% 271,538 7.372028 2,001,786 56%
0.30% 216,993 7.374027 1,600,112 56%
SEI Index Funds -
S&P 500 Index Portfolio......... 0.95% 341,359 5.941263 2,028,104 20%
0.90% 67,602 5.950659 402,276 20%
0.40% 11,066,988 5.979665 66,176,881 20%
</TABLE>
(Continued)
<PAGE> 45
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
ASSET ANNUAL
CHARGE UNITS UNIT VALUE AMOUNT RETURN(b)
------ ----- ---------- ------ ---------
<S> <C> <C> <C> <C> <C>
Seligman Growth Fund, Inc.- Class A... 0.95% 82,517 21.680777 1,789,033 29%
0.90% 3,416 21.715067 74,179 29%
0.80% 15,382 21.783810 335,079 29%
0.65% 1,282 21.898623 28,074 29%
0.55% 706 21.836245 15,416 30%
0.40% 107,765 21.820873 2,351,526 30%
T.Rowe Price International Funds, Inc.-
International Stock Fund(R)........ 0.95% 7,563,383 2.827534 21,385,723 33%
0.90% 1,684,025 2.832007 4,769,171 33%
0.80% 1,457,486 2.840974 4,140,680 34%
0.65% 1,247,401 2.855951 3,562,516 34%
0.60% 131,413 2.850022 374,530 34%
0.55% 102,385 2.847810 291,573 34%
0.50% 157,024 2.842467 446,336 34%
0.40% 4,776,405 2.845797 13,592,679 34%
0.35% 56,963 2.858375 162,822 34%
Templeton Foreign Fund - Class I...... 0.80% 19,373,241 2.446696 47,400,431 38%
0.70% 4,602,502 2.454445 11,296,588 38%
0.55% 4,159,686 2.446551 10,176,884 38%
0.40% 2,316,464 2.450852 5,677,310 39%
0.35% 373,208 2.464273 919,686 39%
0.30% 245,001 2.462361 603,281 39%
0.25% 585,253 2.455160 1,436,890 39%
0.20% 98,253 2.468606 242,548 39%
0.15% 2,411,740 2.458037 5,928,146 39%
Warburg Pincus Emerging
Growth Fund........................ 0.80% 417,978 1.489700 622,662 41%
0.70% 97,575 1.491445 145,528 41%
0.55% 179,205 1.494067 267,744 41%
0.40% 31,745 1.496693 47,513 41%
0.35% 22 1.497569 33 41%
0.30% 141 1.498446 211 41%
0.25% 107,450 1.499323 161,102 41%
0.20% 10,887 1.428738 15,555 43%
========== ========= ----------------
Total Contract Owners' Equity....... $ (4,147,480,124)
================
</TABLE>
(a) These investment options were not being utilized for the entire year.
Accordingly, the annual return was computed for such period as the
investment option was utilized. These investment options became
available to the Account on October 1, 1999.
(b) The annual return does not include contract charges satisfied by
surrendering units.
<PAGE> 46
(5) VARIABLE ACCOUNT FEES
The following is a summary of the variable account fees for the
year ended December 31, 1999.
<TABLE>
<CAPTION>
PERCENTAGE TOTAL AIMCon ACIncGro ACTCGro ACTCIntDis ACTCSel
- --------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%............ $ 12,853,175 -- -- 814,763 -- 1,662
0.90%............ 3,447,502 -- -- 272,923 -- --
0.80%............ 3,994,203 -- 24,799 251,876 11,763 --
0.70%............ 481,063 -- 5,102 -- 3,798 --
0.65%............ 3,047,284 23,140 -- 246,059 -- 25,308
0.60%............ 158,574 -- -- 11,401 -- --
0.55%............ 341,766 -- 3,647 -- 1,667 --
0.50%............ 231,457 -- -- 21,956 -- --
0.45%............ 6,083 -- -- -- -- --
0.40%............ 1,420,444 20,888 2,187 151,537 861 --
0.35%............ 75,850 -- 387 4,801 338 --
0.30%............ 37,794 -- 188 7,050 16 --
0.25%............ 21,380 -- 323 -- 512 --
0.20%............ 4,937 -- 47 -- 29 --
0.15% ........... 73,383 -- 178 -- 2,477 --
0.10% ........... 150 -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total variable account fees $26,195,045 44,028 36,858 1,782,366 21,461 26,970
=========== =========== =========== =========== =========== ===========
<CAPTION>
PERCENTAGE ACTCUltra ACVPBal ACVPCapAp BdFdAm
---------- --------------- ------------- ------------- -----------
<S> <C> <C> <C> <C>
0.95%............ $ 2,570,995 195 827 86,508
0.90%............ 743,315 -- -- 21,808
0.80%............ 467,688 -- -- 14,714
0.70%............ -- -- -- --
0.65%............ 555,060 -- -- 13,907
0.60%............ 26,393 -- -- 1,395
0.55%............ -- -- -- 931
0.50%............ 34,708 -- -- 625
0.45%............ -- -- -- --
0.40%............ 236,878 -- -- 7,556
0.35%............ 15,269 -- -- 206
0.30%............ 8,459 -- -- --
0.25%............ -- -- -- --
0.20%............ -- -- -- --
0.15% ........... -- -- -- --
0.10% ........... -- -- -- --
----------- ----------- --------- ---------
Total variable account fees 4,658,765 195 827 147,650
=========== =========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE BrnCapSmCo DNYVenFd DeDecInc DryApp DryCsMgt DryPremCap
---------- ------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
0.95% ........... $ -- -- 1,793 -- -- --
0.90% ........... -- 3,306 688 -- 1,894 --
0.80% ........... 22 -- 59 15,961 -- 988
0.70% ........... 4 -- -- 3,493 -- 220
0.65% ........... -- -- -- -- -- --
0.60% ........... -- -- 118 -- -- --
0.55% ........... 8 -- -- 2,757 -- 283
0.50% ........... -- -- -- -- -- --
0.45% ........... -- -- -- -- -- --
0.40% ........... 18 -- -- 713 -- 124
0.35% ........... -- -- 1 291 -- 33
0.30% ........... -- -- -- 193 -- 7
0.25% ........... -- -- -- 126 -- 41
0.20% ........... -- -- -- 5 -- 1
0.15% ........... -- -- -- 73 -- 73
0.10% ........... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Total variable account fees $ 52 3,306 2,659 23,612 1,894 1,770
=========== =========== =========== =========== =========== ===========
<CAPTION>
PERCENTAGE Dry500Ix DrySRGro DryStkix Dry3dCen
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
0.95% ........... 470,347 257 1,673 1,985
0.90% ........... 119,043 -- -- 1,266
0.80% ........... 79,025 -- -- 226,181
0.70% ........... -- -- -- 58,489
0.65% ........... 69,238 -- -- 40,365
0.60% ........... 14,174 -- -- --
0.55% ........... 2,080 -- -- 29,800
0.50% ........... 11,387 -- -- --
0.45% ........... -- -- -- --
0.40% ........... -- -- -- 17,131
0.35% ........... 3,363 -- -- 4,922
0.30% ........... -- -- -- 2,138
0.25% ........... -- -- -- 1,638
0.20% ........... -- -- -- 305
0.15% ........... -- -- -- 13,472
0.10% ........... -- -- -- --
----------- ----------- --------- ---------
Total variable account fees 768,657 257 1,673 397,692
=========== =========== ========= =========
</TABLE>
(Continued)
<PAGE> 47
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERCENTAGE EvIncGro FedBdFd FedUSGvt FAGrOppA FAHiYld FidAsMgr
---------- -------------- ------------- ------------- -------------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C>
0.95% ............ $ 15,163 -- 40,604 -- -- 62,033
0.90% ............ 5,046 -- 12,459 -- -- 13,637
0.80% ............ 2,945 2,274 6,294 9,326 2,346 8,637
0.70% ............ -- 446 -- 1,831 588 --
0.65% ............ 3,095 -- 3,784 -- -- 8,334
0.60% ............ 46 -- 663 -- -- 566
0.55% ............ 846 4,435 753 822 109 363
0.50% ............ 77 -- 284 -- -- 1,997
0.45% ............ -- -- -- -- -- --
0.40% ............ 2,185 51 -- 219 14 --
0.35% ............ 108 -- 7 41 3 422
0.30% ............ -- -- -- 1 -- --
0.25% ............ -- -- -- 8 18 --
0.20% ............ -- -- -- 4 -- --
0.15% ............ -- 18 -- 22 -- --
0.10% ............ -- -- -- -- -- --
--------- --------- --------- --------- --------- ---------
Total variable account fees $29,511 7,224 64,848 12,274 3,078 95,989
========= ========= ========= ========= ========= =========
<CAPTION>
PERCENTAGE FidCapInc FidContr FidEqInc FidGrInc
---------- ----------- ----------- ------------- -------------
<S> <C> <C> <C> <C>
0.95% ............. 4,114 2,317,236 1,290,255 14
0.90% ............. 1,411 580,182 438,005 --
0.80% ............. 1,926 386,180 278,527 --
0.70% ............. -- -- -- --
0.65% ............. 1,413 313,279 310,058 67,748
0.60% ............. -- 21,727 7,836 --
0.55% ............. -- 11,006 4,355 --
0.50% ............. 142 26,915 40,559 --
0.45% ............. -- -- -- --
0.40% ............. 710 62,168 131,596 55,223
0.35% ............. 64 7,547 7,163 --
0.30% ............. -- -- -- --
0.25% ............. -- -- -- --
0.20% ............. -- -- -- --
0.15% ............. -- -- -- --
0.10% ............. -- -- -- --
--------- --------- --------- ----------
Total variable account fees 9,780 3,726,240 2,508,354 122,985
========= ========= ========= ==========
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE FidMgin FidVIPAM FidVIPEI FidVIPgr FidVIPHI FidVIPOv
---------- -------------- ------------- ------------- -------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95% $1,673,373 533 2,180 2,651 348 1,423
0.90% 400,452 -- -- -- -- --
0.80% 235,521 -- -- -- -- --
0.70% -- -- -- -- -- --
0.65% 353,081 -- -- -- -- --
0.60% 15,468 -- -- -- -- --
0.55% 5,813 -- -- -- -- --
0.50% 29,607 -- -- -- -- --
0.45% -- -- -- -- -- --
0.40% 184,165 -- -- -- -- --
0.35% 5,873 -- -- -- -- --
0.30% -- -- -- -- -- --
0.25% -- -- -- -- -- --
0.20% -- -- -- -- -- --
0.15% -- -- -- -- -- --
0.10% -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Total variable account fees $2,903,353 533 2,180 2,651 348 1,423
========== ========== ========== ========== ========== ==========
<CAPTION>
PERCENTAGE GroFdAm IncFdAm InvDynam InvIndinc
---------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95% ............. 133,707 116,939 -- 181,276
0.90% ............. 35,152 28,962 -- 39,531
0.80% ............. 22,038 20,266 26,987 23,922
0.70% ............. -- -- 8,550 --
0.65% ............. 13,372 6,214 -- 12,810
0.60% ............. 5,721 2,993 -- 1,401
0.55% ............. 1,108 773 4,638 2,149
0.50% ............. 3,323 2,441 -- 1,557
0.45% ............. -- -- -- --
0.40% ............. -- -- 1,829 --
0.35% ............. 292 251 402 501
0.30% ............. -- -- 367 --
0.25% ............. -- -- 706 --
0.20% ............. -- -- 108 --
0.15% ............. -- -- 5,577 --
0.10% ............. -- -- -- --
---------- ---------- ---------- ----------
Total variable account fees 214,713 178,839 49,164 263,147
========== ========== ========== ==========
</TABLE>
<PAGE> 48
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERCENTAGE InTotRetT JanFund JanWorldwde MASFIP MFSGrStk MFSGroup
--------- ----------- ------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
0.95% ....... $ -- 1,145,492 13,371 41,344 38,126 46,869
0.90% ....... -- 306,474 -- 4,750 7,063 31,033
0.80% ....... 4,517 244,038 -- 6,000 1,878 15,729
0.70% ....... 1,395 -- -- -- -- --
0.65% ....... -- 131,108 -- 4,008 17,794 75,995
0.60% ....... -- 21,560 -- 1,218 -- --
0.55% ....... 321 -- -- 200 147 1,118
0.50% ....... -- 30,847 -- 238 20 198
0.45% ....... -- -- -- -- -- --
0.40% ....... 410 -- -- -- 14,793 54,633
0.35% ....... 382 3,917 -- 25 -- 219
0.30% ....... 54 7,616 -- -- -- --
0.25% ....... 16 -- -- -- -- --
0.20% .......
0.15% ....... 19 -- -- -- -- --
0.10% ....... -- -- -- -- -- --
-- -- -- -- -- --
--------- --------- ------ ------ ------ -------
Total variable
account fees .. $ 7,114 1,891,052 13,371 57,783 79,821 225,794
========= ========= ========= ========= ========= =========
<CAPTION>
PERCENTAGE MFSHiInc MSIEqGrob NAATAggr NAATCons
--------- ------------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
0.95% ....... 8,582 -- -- --
0.90% ....... 1,126 -- -- --
0.80% ....... 1,425 3,012 -- --
0.70% ....... -- 766 18,220 7,205
0.65% ....... 11,551 -- -- --
0.60% ....... -- -- 2,326 681
0.55% ....... 83 206 -- --
0.50% ....... -- -- -- --
0.45% ....... -- -- 895 326
0.40% ....... 8,052 116 -- --
0.35% ....... 13 1 -- --
0.30% ....... -- 20 -- --
0.25% ....... -- 116 192 257
0.20% .......
0.15% ....... -- -- 309 24
0.10% ....... -- 335 46 7
-- -- 57 --
------ ----- ------ -----
Total variable
account fees .. 30,832 4,572 22,045 8,500
========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE NAATMod NAATModagg NAATModCon NWBdFd NWFund NWGroFd
---------- ------- ---------- ---------- ------ ------ -------
<S> <C> <C> <C> <C> <C> <C>
0.95% ....... $ -- -- -- 1,628 64,724 42,754
0.90% ....... -- -- -- -- 3,373 10,556
0.80% ....... -- -- -- -- 696,178 10,441
0.70% ....... 14,834 10,911 4,986 -- 164,841 --
0.65% ....... -- -- -- 288 102,883 27,691
0.60% ....... 1,979 2,341 471 -- -- 45
0.55% ....... -- -- -- -- 98,633 873
0.50% ....... -- -- -- -- -- 491
0.45% ....... 689 899 1,332 -- -- --
0.40% ....... -- -- -- 214 48,114 11,599
0.35% ....... -- -- -- -- 9,075 313
0.30% ....... -- -- -- -- 3,882 --
0.25% ....... 51 112 82 -- 4,847 --
0.20% ....... 118 293 50 -- 1,747 --
0.15% ....... 45 83 19 -- 27,955 --
0.10% ....... -- 25 -- -- -- --
------- ------- ------- ------- ------- -------
Total variable
account fees .. $ 17,716 14,664 6,940 2,130 1,226,252 104,763
======== ======= ======= ======= ======= =======
<CAPTION>
PERCENTAGE NwWMyYMkt NWIndxFdy NSATGvtBd NSATInc
---------- ------- --------- --------- -------
<S> <C> <C> <C> <C>
0.95% ....... 7,153 -- 191 --
0.90% ....... -- -- -- --
0.80% ....... 257,093 29,114 -- 4
0.70% ....... 87,236 3,892 -- 2
0.65% ....... 54,489 -- -- --
0.60% ....... -- -- -- --
0.55% ....... 101,833 2,566 -- 2
0.50% ....... -- -- -- --
0.45% ....... -- -- -- --
0.40% ....... 33,288 1,135 -- --
0.35% ....... 1,973 221 -- --
0.30% ....... 2,580 39 -- 37
0.25% ....... 9,417 80 -- --
0.20% ....... 1,393 63 -- --
0.15% ....... 17,636 1,203 -- --
0.10% ....... -- -- -- --
------- ------- ------- -----
Total variable
account fees .. 574,091 38,313 191 45
======= ======= ======= =====
</TABLE>
(Continued)
<PAGE> 49
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
Percentage NSATMyMkt NSATSmCo NSATTotRe NBAMTGro NBAMTLMat NBAMTPart NBGuard
---------- ------------- ------------- ------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
0.95%....... $ 981 - 1,490 398 116 638 -
0.90%....... - - - - - - -
0.80%....... - 15,117 - - - - -
0.70%....... - 6,705 - - - - -
0.65%....... - - - - - - 4,080
0.60%....... - - - - - - -
0.55%....... - 2,772 - - - - -
0.50%....... - - - - - - -
0.45%....... - - - - - - -
0.40%....... - 1,109 - - - - 3,250
0.35%....... - 78 - - - - -
0.30%....... - 28 - - - - -
0.25%....... - 143 - - - - -
0.20%....... - 43 - - - - -
0.15%....... - - - - - - -
0.10%....... - - - - - - -
------------ ------------- ------------- -------------- ------------- ------------- -------------
Total variable
account fees ....... $ 981 25,995 1,490 398 116 638 7,330
============ ============= ============= ============== ============= ============= =============
<CAPTION>
Percentage NBManhFd NBPartTr PrBalY
------------ ----------- ---------- -------------
<S> <C> <C> <C>
0.95%....... 2,552 - -
0.90%....... - - -
0.80%....... - 594 -
0.70%....... - 304 1,523
0.65%....... - - -
0.60%....... - - 267
0.55%....... - 53 -
0.50%....... - - -
0.45%....... - - 247
0.40%....... - 7 -
0.35%....... - - -
0.30%....... - - -
0.25%....... - 19 7
0.20%....... - - -
0.15%....... - - -
0.10%....... - - -
------------- ------------- -------------
Total variable
account fees ....... 2,552 977 2,044
============= ============= =============
</TABLE>
<TABLE>
<CAPTION>
PERCENTAGE PrintY PrLgCapGrY PrLgCpValY PRSMCAPY OppGLOB PutInvFd
------------ -------------- ---------- ----------- --------- ----------- -------------
<S> <C> <C> <C> <C> <C> <C>
0.95%....... $ - - - - - 135,193
0.90%....... - - - - - 24,790
0.80%....... - - - - 7,738 13,654
0.70%....... 773 3,772 559 2,279 1,245 -
0.65%....... - - - - - 180,473
0.60%....... 59 456 51 333 - 641
0.55%....... - - - - 658 1,531
0.50%....... - - - - - 398
0.45%....... 137 1,219 50 289 - -
0.40%....... - - - - 553 149,474
0.35%....... - - - - 90 103
0.30%....... - - - - 19 -
0.25%.......
0.20%....... 27 74 30 41 151 -
0.15%....... - 31 - 4 1 -
0.10%....... 8 - - - - -
- 43 11 14 - -
-------------- ------------- ------------- -------------- ------------- ------------- --
Total variable
account fees ....... $ 1,004 5,595 701 2,960 10,455 506,257
============== ============= ============= ============== ============= =============
<CAPTION>
PERCENTAGE PUTVoyFd SEI500Ix SelGroFd TRIntStk
------------ ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
0.95%....... 1,319,977 15,334 14,567 158,841
0.90%....... 301,179 3,049 536 34,493
0.80%....... 217,426 - 2,335 27,466
0.70%....... - - - -
0.65%....... 171,881 138,445 5,507 46,770
0.60%....... 14,460 - - 1,784
0.55%....... - - 106 1,126
0.50%....... 22,393 - 29 1,265
0.45%....... - - - -
0.40%....... 38,474 131,485 4,470 24,884
0.35%....... 4,275 - - 348
0.30%....... 3,645 - - -
0.25%.......
0.20%....... - - - -
0.15%....... - - - -
0.10%....... - - - -
- - - -
------------ ------------- ------------- -------------
Total variable
account fees ....... $ 2,093,710 288,313 27,550 296,977
============ ============= ============= =============
</TABLE>
<PAGE> 50
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERCENTAGE TemForFd WPEmGro
------------- ------------- -------------
<S> <C> <C>
0.95%....... $ - -
0.90%....... 318,644 1,535
0.80%....... 66,621 473
0.70%....... 8,056 -
0.65%....... - -
0.60%....... 50,565 630
0.55%....... - -
0.50%....... - -
0.45%....... 18,192 139
0.40%....... 2,532 -
0.35%....... 1,455 -
0.30%....... 2,237 109
0.25%....... 339 4
0.20%....... 4,156 -
0.15%....... - -
0.10%....... -------------- -------------
Total variable
account fees ....... $ 472,797 2,890
============== =============
</TABLE>
(Continued)
<PAGE> 51
<TABLE>
<CAPTION>
Percentage TOTAL AIMCon ACIncGro ACTCGro ACTCIntDis ACTCSel
------------ -------------- ------------ ----------- ------------ ----------- -------------
<S> <C> <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> <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>
<PAGE> 52
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
Percentage FedBdFd FedUSGvt FAGrOppA FAHiYld FidAsMgr FidCapInc FidContr
--------- -------------- ------------ ------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
0.95%....... $ - 17,408 - - 33,264 2,833 1,215,102
0.90%....... - 4,641 - - 6,092 785 221,520
0.80%....... 20 2,879 74 2 4,729 1,739 227,243
0.70%....... 122 1,114 5 - 4,353 357 96,924
0.65%....... - 392 - - 1,096 1,466 97,319
0.60%....... - 412 - - 295 - 8,114
0.55%....... - 214 47 - 125 - 4,367
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 1,870,589
============== ============= ============= ============== ============= ============= =============
<CAPTION>
Percentage FidEqInc FidGrInc FidMgin
----------- ------------- ------------- -------------
<S> <C> <C> <C>
0.95%....... 856,817 6 874,985
0.90%....... 239,879 - 168,196
0.80%....... 212,892 - 135,532
0.70%....... 97,436 - 63,336
0.65%....... 279,471 78,970 245,645
0.60%....... 3,696 - 5,539
0.55%....... 2,399 - 2,346
0.45%....... - - -
0.40%....... - - -
0.35%....... - - -
0.30%....... - - -
0.25%....... - - -
0.20%....... - - -
0.15%....... - - -
------------ ------------- -------------
Total variable
account fees ....... 1,692,590 78,976 1,495,579
============ ============= =============
</TABLE>
<TABLE>
<CAPTION>
Percentage FidVIPAM FidVIPEI FidVIPGr FidVIPHI FidVIPOv GroFdAm IncFdAm
------------ -------------- ------------- ------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
0.95%....... $ 280 1,254 1,128 310 946 63,953 81,679
0.90%....... - - - - - 11,386 14,390
0.80%....... - - - - - 11,665 15,273
0.70%....... - - - - - 5,185 4,072
0.65%....... - - - - - 1,401 965
0.60%....... - - - - - 1,848 1,269
0.55%....... - - - - - 322 365
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 95,760 118,013
========= ============= ============= ============== ============= ============= =============
<CAPTION>
Percentage InvDynam InvindInc InvTotRet
------------ ------------- ------------- -------------
<S> <C> <C> <C>
0.95%....... - 113,019 -
0.90%....... - 20,467 -
0.80%....... 7 16,842 11
0.70%....... - 4,991 36
0.65%....... - 1,319 -
0.60%....... - 649 -
0.55%....... 2 955 1
0.45%....... - - -
0.40%....... 1 - -
0.35%....... - - -
0.30%....... - - -
0.25%....... - - -
0.20%....... - - -
0.15%....... - - -
------------- ------------- -------------
Total variable
account fees ....... 10 158,242 48
============= ============= =============
</TABLE>
<PAGE> 53
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<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>
<PAGE> 54
NATIONWIDE DC VARIABLE ACCOUNT
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<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 SelGroFd
------------ -------------- ------------- ------------- -------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
0.95%....... $ - - - 71,426 654,777 5,234 8,281
0.90%....... - - - 12,267 116,397 1,874 305
0.80%....... - - 22 8,788 122,595 - 1,280
0.70%....... 5 15 - 959 59,040 - 96
0.65%....... - - - 203,814 57,277 144,042 7,160
0.60%....... - 2 - 316 5,547 - -
0.55%....... - - 6 631 - - 81
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 17,203
============ ============= ============= ============= ============ ============= ============
<CAPTION>
Percentage TRIntStk TemForFd WPEmGro
------------ --------------- ------------- -------------
<S> <C> <C> <C>
0.95%....... $ 91,497 214,800 -
0.90%....... 18,134 37,449 -
0.80%....... 19,355 84,679 19
0.70%....... 6,512 23,222 1
0.65%....... 44,998 10,756 -
0.60%....... 709 - -
0.55%....... 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 ....... 181,636 381,394 29
============ ============= =============
</TABLE>
<PAGE> 98
<PAGE> 1
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Nationwide Life Insurance Company:
We have audited the accompanying consolidated balance sheets of Nationwide Life
Insurance Company and subsidiaries (collectively the Company), a wholly owned
subsidiary of Nationwide Financial Services, Inc., as of December 31, 1999 and
1998, and the related consolidated statements of income, shareholder's equity
and cash flows for each of the years in the three-year period ended December 31,
1999. These consolidated financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion on these
consolidated 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. 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 consolidated financial statements referred to above present
fairly, in all material respects, the financial position of Nationwide Life
Insurance Company and subsidiaries as of December 31, 1999 and 1998, and the
results of their operations and their cash flows for each of the years in the
three-year period ended December 31, 1999, in conformity with generally accepted
accounting principles.
Columbus, Ohio
January 28, 2000
<PAGE> 2
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Balance Sheets
(in millions, except per share amounts)
<TABLE>
<CAPTION>
December 31,
-----------------------------
Assets 1999 1998
------ --------- ---------
<S> <C> <C>
Investments:
Securities available-for-sale, at fair value:
Fixed maturity securities $15,294.0 $14,245.1
Equity securities 92.9 127.2
Mortgage loans on real estate, net 5,786.3 5,328.4
Real estate, net 254.8 243.6
Policy loans 519.6 464.3
Other long-term investments 73.8 44.0
Short-term investments 416.0 289.1
--------- ---------
22,437.4 20,741.7
--------- ---------
Cash 4.8 3.4
Accrued investment income 238.6 218.7
Deferred policy acquisition costs 2,554.1 2,022.2
Other assets 305.9 420.3
Assets held in separate accounts 67,135.1 50,935.8
--------- ---------
$92,675.9 $74,342.1
========= =========
Liabilities and Shareholder's Equity
------------------------------------
Future policy benefits and claims $21,861.6 $19,767.1
Other liabilities 914.2 866.1
Liabilities related to separate accounts 67,135.1 50,935.8
--------- ---------
89,910.9 71,569.0
--------- ---------
Commitments and contingencies (notes 8 and 13)
Shareholder's equity:
Common stock, $1 par value. Authorized 5.0 million shares;
3.8 million shares issued and outstanding 3.8 3.8
Additional paid-in capital 766.1 914.7
Retained earnings 2,011.0 1,579.0
Accumulated other comprehensive income (15.9) 275.6
--------- ---------
2,765.0 2,773.1
--------- ---------
$92,675.9 $74,342.1
========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 3
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Income
(in millions)
<TABLE>
<CAPTION>
Years ended December 31,
---------------------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
Revenues:
Policy charges $ 895.5 $ 698.9 $ 545.2
Life insurance premiums 220.8 200.0 205.4
Net investment income 1,520.8 1,481.6 1,409.2
Realized (losses) gains on investments (11.6) 28.4 11.1
Other 66.1 66.8 46.5
-------- -------- --------
2,691.6 2,475.7 2,217.4
-------- -------- --------
Benefits and expenses:
Interest credited to policyholder account balances 1,096.3 1,069.0 1,016.6
Other benefits and claims 210.4 175.8 178.2
Policyholder dividends on participating policies 42.4 39.6 40.6
Amortization of deferred policy acquisition costs 272.6 214.5 167.2
Other operating expenses 463.4 419.7 384.9
-------- -------- --------
2,085.1 1,918.6 1,787.5
-------- -------- --------
Income before federal income tax expense 606.5 557.1 429.9
Federal income tax expense 201.4 190.4 150.2
-------- -------- --------
Net income $ 405.1 $ 366.7 $ 279.7
======== ======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 4
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Shareholder's Equity
Years ended December 31, 1999, 1998 and 1997
(in millions)
<TABLE>
<CAPTION>
Accumulated
Additional other Total
Common paid-in Retained comprehensive shareholder's
stock capital earnings income equity
-------- -------- ---------- -------- ----------
<S> <C> <C> <C> <C> <C>
December 31, 1996 $ 3.8 $ 527.9 $1,432.6 $173.6 $2,137.9
Comprehensive income:
Net income -- -- 279.7 -- 279.7
Net unrealized gains on securities
available-for-sale arising during
the year -- -- -- 73.5 73.5
--------
Total comprehensive income 353.2
--------
Capital contribution -- 836.8 -- -- 836.8
--------
Dividend to shareholder -- (450.0) (400.0) -- (850.0)
------ -------- -------- ------ --------
December 31, 1997 3.8 914.7 1,312.3 247.1 2,477.9
Comprehensive income:
Net income -- -- 366.7 -- 366.7
Net unrealized gains on securities
available-for-sale arising during
the year -- -- -- 28.5 28.5
--------
Total comprehensive income 395.2
--------
Dividend to shareholder -- -- (100.0) -- (100.0)
------ -------- -------- ------ --------
December 31, 1998 3.8 914.7 1,579.0 275.6 2,773.1
Comprehensive income:
Net income -- -- 405.1 -- 405.1
Net unrealized losses on securities
available-for-sale arising during
the year -- -- -- (315.0) (315.0)
--------
Total comprehensive income 90.1
--------
Capital contribution -- 26.4 87.9 23.5 137.8
--------
Dividends to shareholder -- (175.0) (61.0) -- (236.0)
------ -------- -------- ------ --------
December 31, 1999 $ 3.8 $ 766.1 $2,011.0 $(15.9) $2,765.0
====== ======== ======== ====== ========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 5
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Consolidated Statements of Cash Flows
(in millions)
<TABLE>
<CAPTION>
Years ended December 31,
-------------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 405.1 $ 366.7 $ 279.7
Adjustments to reconcile net income to net cash provided by operating
activities:
Interest credited to policyholder account balances 1,096.3 1,069.0 1,016.6
Capitalization of deferred policy acquisition costs (637.0) (584.2) (487.9)
Amortization of deferred policy acquisition costs 272.6 214.5 167.2
Amortization and depreciation 2.4 (8.5) (2.0)
Realized (gains) losses on invested assets, net 11.6 (28.4) (11.1)
Increase in accrued investment income (7.9) (8.2) (0.3)
Decrease (increase) in other assets 122.9 16.4 (12.7)
Decrease in policy liabilities (20.9) (8.3) (23.1)
Increase (decrease) in other liabilities 149.7 (34.8) 230.6
Other, net (8.6) (11.3) (10.9)
--------- --------- ---------
Net cash provided by operating activities 1,386.2 982.9 1,146.1
--------- --------- ---------
Cash flows from investing activities:
Proceeds from maturity of securities available-for-sale 2,307.9 1,557.0 993.4
Proceeds from sale of securities available-for-sale 513.1 610.5 574.5
Proceeds from repayments of mortgage loans on real estate 696.7 678.2 437.3
Proceeds from sale of real estate 5.7 103.8 34.8
Proceeds from repayments of policy loans and sale of other invested assets 40.9 23.6 22.7
Cost of securities available-for-sale acquired (3,724.9) (3,182.8) (2,828.1)
Cost of mortgage loans on real estate acquired (971.4) (829.1) (752.2)
Cost of real estate acquired (14.2) (0.8) (24.9)
Short-term investments, net (27.5) 69.3 (354.8)
Other, net (110.9) (88.4) (62.5)
--------- --------- ---------
Net cash used in investing activities (1,284.6) (1,058.7) (1,959.8)
--------- --------- ---------
Cash flows from financing activities:
Proceeds from capital contributions -- -- 836.8
Cash dividends paid (188.5) (100.0) --
Increase in investment product and universal life insurance
product account balances 3,799.4 2,682.1 2,488.5
Decrease in investment product and universal life insurance
product account balances (3,711.1) (2,678.5) (2,379.8)
--------- --------- ---------
Net cash used in financing activities (100.2) (96.4) 945.5
--------- --------- ---------
Net increase (decrease) in cash 1.4 (172.2) 131.8
Cash, beginning of year 3.4 175.6 43.8
--------- --------- ---------
Cash, end of year $ 4.8 $ 3.4 $ 175.6
========= ========= =========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE> 6
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements
December 31, 1999, 1998 and 1997
(1) Organization and Description of Business
Nationwide Life Insurance Company (NLIC) is a leading provider of
long-term savings and retirement products in the United States and is a
wholly owned subsidiary of Nationwide Financial Services, Inc. (NFS).
The Company develops and sells a diverse range of products including
variable annuities, fixed annuities and life insurance as well as
investment management and administrative services. NLIC markets its
products through a broad network of distribution channels, including
independent broker/dealers, national and regional brokerage firms,
financial institutions, pension plan administrators, life insurance
specialists, Nationwide Retirement Solutions sales representatives, and
Nationwide agents.
Wholly owned subsidiaries of NLIC include Nationwide Life and Annuity
Insurance Company (NLAIC), Nationwide Advisory Services, Inc., and
Nationwide Investment Services Corporation. NLIC and its subsidiaries
are collectively referred to as "the Company."
(2) Summary of Significant Accounting Policies
The significant accounting policies followed by the Company that
materially affect financial reporting are summarized below. The
accompanying consolidated financial statements have been prepared in
accordance with generally accepted accounting principles, which differ
from statutory accounting practices prescribed or permitted by
regulatory authorities. Annual Statements for NLIC and NLAIC, filed
with the Department of Insurance of the State of Ohio (the Department),
are prepared on the basis of accounting practices prescribed or
permitted by the Department. Prescribed statutory accounting practices
include a variety of publications of the National Association of
Insurance Commissioners (NAIC), as well as state laws, regulations and
general administrative rules. Permitted statutory accounting practices
encompass all accounting practices not so prescribed. The Company has
no material permitted statutory accounting practices.
In preparing the consolidated financial statements, management is
required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and the disclosures of contingent
assets and liabilities as of the date of the consolidated financial
statements and the reported amounts of revenues and expenses for the
reporting period. Actual results could differ significantly from those
estimates.
The most significant estimates include those used in determining
deferred policy acquisition costs, valuation allowances for mortgage
loans on real estate and real estate investments and the liability for
future policy benefits and claims. Although some variability is
inherent in these estimates, management believes the amounts provided
are adequate.
(a) Consolidation Policy
The consolidated financial statements include the accounts of NLIC
and its wholly owned subsidiaries. All significant intercompany
balances and transactions have been eliminated.
<PAGE> 7
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(b) Valuation of Investments and Related Gains and Losses
The Company is required to classify its fixed maturity securities
and equity securities as either held-to-maturity,
available-for-sale or trading. Fixed maturity securities are
classified as held-to-maturity when the Company has the positive
intent and ability to hold the securities to maturity and are
stated at amortized cost. Fixed maturity securities not classified
as held-to-maturity and all equity securities are classified as
available-for-sale and are stated at fair value, with the
unrealized gains and losses, net of adjustments to deferred policy
acquisition costs and deferred federal income tax, reported as a
separate component of accumulated other comprehensive income in
shareholder's equity. The adjustment to deferred policy
acquisition costs represents the change in amortization of
deferred policy acquisition costs that would have been required as
a charge or credit to operations had such unrealized amounts been
realized. The Company has no fixed maturity securities classified
as held-to-maturity or trading as of December 31, 1999 or 1998.
Mortgage loans on real estate are carried at the unpaid principal
balance less valuation allowances. The Company provides valuation
allowances for impairments of mortgage loans on real estate based
on a review by portfolio managers. The measurement of impaired
loans is based on the present value of expected future cash flows
discounted at the loan's effective interest rate or, as a
practical expedient, at the fair value of the collateral, if the
loan is collateral dependent. Loans in foreclosure and loans
considered to be impaired are placed on non-accrual status.
Interest received on non-accrual status mortgage loans on real
estate is included in interest income in the period received.
Real estate is carried at cost less accumulated depreciation and
valuation allowances. Other long-term investments are carried on
the equity basis, adjusted for valuation allowances. Impairment
losses are recorded on long-lived assets used in operations when
indicators of impairment are present and the undiscounted cash
flows estimated to be generated by those assets are less than the
assets' carrying amount.
Realized gains and losses on the sale of investments are
determined on the basis of specific security identification.
Estimates for valuation allowances and other than temporary
declines are included in realized gains and losses on investments.
(c) Revenues and Benefits
Investment Products and Universal Life Insurance Products:
Investment products consist primarily of individual and group
variable and fixed deferred annuities. Universal life insurance
products include universal life insurance, variable universal life
insurance, corporate owned life insurance and other
interest-sensitive life insurance policies. Revenues for
investment products and universal life insurance products consist
of net investment income, asset fees, cost of insurance, policy
administration and surrender charges that have been earned and
assessed against policy account balances during the period. Policy
benefits and claims that are charged to expense include interest
credited to policy account balances and benefits and claims
incurred in the period in excess of related policy account
balances.
Traditional Life Insurance Products: Traditional life insurance
products include those products with fixed and guaranteed premiums
and benefits and consist primarily of whole life insurance,
limited-payment life insurance, term life insurance and certain
annuities with life contingencies. Premiums for traditional life
insurance products are recognized as revenue when due. Benefits
and expenses are associated with earned premiums so as to result
in recognition of profits over the life of the contract. This
association is accomplished by the provision for future policy
benefits and the deferral and amortization of policy acquisition
costs.
<PAGE> 8
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(d) Deferred Policy Acquisition Costs
The costs of acquiring new business, principally commissions,
certain expenses of the policy issue and underwriting department
and certain variable sales expenses have been deferred. For
investment products and universal life insurance products,
deferred policy acquisition costs are being amortized with
interest over the lives of the policies in relation to the present
value of estimated future gross profits from projected interest
margins, asset fees, cost of insurance, policy administration and
surrender charges. For years in which gross profits are negative,
deferred policy acquisition costs are amortized based on the
present value of gross revenues. Deferred policy acquisition costs
are adjusted to reflect the impact of unrealized gains and losses
on fixed maturity securities available-for-sale as described in
note 2(b). For traditional life insurance products, these deferred
policy acquisition costs are predominantly being amortized with
interest over the premium paying period of the related policies in
proportion to the ratio of actual annual premium revenue to the
anticipated total premium revenue. Such anticipated premium
revenue was estimated using the same assumptions as were used for
computing liabilities for future policy benefits.
(e) Separate Accounts
Separate account assets and liabilities represent contractholders'
funds which have been segregated into accounts with specific
investment objectives. For all but $915.4 million of separate
account assets, the investment income and gains or losses of these
accounts accrue directly to the contractholders. The activity of
the separate accounts is not reflected in the consolidated
statements of income and cash flows except for the fees the
Company receives.
(f) Future Policy Benefits
Future policy benefits for investment products in the accumulation
phase, universal life insurance and variable universal life
insurance policies have been calculated based on participants'
contributions plus interest credited less applicable contract
charges. The average interest rate credited on investment product
policy reserves was 5.6%, 6.0% and 6.1% for the years ended
December 31, 1999, 1998 and 1997, respectively.
Future policy benefits for traditional life insurance policies
have been calculated by the net level premium method using
interest rates varying from 6.0% to 10.5% and estimates of
mortality, morbidity, investment yields and withdrawals which were
used or which were being experienced at the time the policies were
issued, rather than the assumptions prescribed by state regulatory
authorities.
<PAGE> 9
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(g) Participating Business
Participating business represents approximately 29% in 1999 (40%
in 1998 and 50% in 1997) of the Company's life insurance in force,
69% in 1999 (74% in 1998 and 77% in 1997) of the number of life
insurance policies in force, and 13% in 1999 (14% in 1998 and 27%
in 1997) of life insurance statutory premiums. The provision for
policyholder dividends is based on current dividend scales and is
included in "Future policy benefits and claims" in the
accompanying consolidated balance sheets.
(h) Federal Income Tax
The Company files a consolidated federal income tax return with
Nationwide Mutual Insurance Company (NMIC), the majority
shareholder of Nationwide Corp. The members of the consolidated
tax return group have a tax sharing arrangement which provides, in
effect, for each member to bear essentially the same federal
income tax liability as if separate tax returns were filed.
The Company utilizes the asset and liability method of accounting
for income tax. Under this method, deferred tax assets and
liabilities are recognized for the future tax consequences
attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their
respective tax bases and operating loss and tax credit
carryforwards. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the
years in which those temporary differences are expected to be
recovered or settled. Under this method, the effect on deferred
tax assets and liabilities of a change in tax rates is recognized
in income in the period that includes the enactment date.
Valuation allowances are established when necessary to reduce the
deferred tax assets to the amounts expected to be realized.
(i) Reinsurance Ceded
Reinsurance premiums ceded and reinsurance recoveries on benefits
and claims incurred are deducted from the respective income and
expense accounts. Assets and liabilities related to reinsurance
ceded are reported on a gross basis.
(j) Recently Issued Accounting Pronouncements
In March 1998, The American Institute of Certified Public
Accountant's Accounting Standards Executive Committee issued
Statement of Position (SOP) 98-1, "Accounting for the Costs of
Computer Software Developed or Obtained for Internal Use." The
SOP, which has been adopted prospectively as of January 1, 1999,
requires the capitalization of certain costs incurred in
connection with developing or obtaining internal use software.
Prior to the adoption of SOP 98-1, the Company expensed internal
use software related costs as incurred. The effect of adopting the
SOP was to increase net income for 1999 by $8.3 million.
In June 1998, the Financial Accounting Standards Board (FASB)
issued Statement No. 133, "Accounting for Derivative Instruments
and Hedging Activities" (FAS 133). FAS 133 establishes accounting
and reporting standards for derivative instruments and for hedging
activities. Contracts that contain embedded derivatives, such as
certain investment and insurance contracts, are also addressed by
the Statement. FAS 133 requires that an entity recognize all
derivatives as either assets or liabilities in the statement of
financial position and measure those instruments at fair value. In
July 1999 the FASB issued Statement No. 137 which delayed the
effective date of FAS 133 to fiscal years beginning after June 15,
2000. The Company plans to adopt this Statement in first quarter
2001 and is currently evaluating the impact on results of
operations and financial condition.
(k) Reclassification
Certain items in the 1998 and 1997 consolidated financial
statements have been reclassified to conform to the 1999
presentation.
<PAGE> 10
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(3) Investments
The amortized cost, gross unrealized gains and losses and estimated
fair value of securities available-for-sale as of December 31, 1999 and
1998 were:
<TABLE>
<CAPTION>
Gross Gross
Amortized unrealized unrealized Estimated
(in millions) cost gains losses fair value
--------- ------ ------- ---------
<S> <C> <C> <C> <C>
December 31, 1999:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies $ 428.4 $ 23.4 $ (2.4) $ 449.4
Obligations of states and political subdivisions 0.8 -- -- 0.8
Debt securities issued by foreign governments 110.6 0.6 (0.8) 110.4
Corporate securities 11,414.7 118.9 (218.6) 11,315.0
Mortgage-backed securities 3,422.8 25.8 (30.2) 3,418.4
--------- ------ ------- ---------
Total fixed maturity securities 15,377.3 168.7 (252.0) 15,294.0
Equity securities 84.9 12.4 (4.4) 92.9
--------- ------ ------- ---------
$15,462.2 $181.1 $(256.4) $15,386.9
========= ====== ======= =========
December 31, 1998:
Fixed maturity securities:
U.S. Treasury securities and obligations of U.S.
government corporations and agencies $ 255.9 $ 13.0 $ -- $ 268.9
Obligations of states and political subdivisions 1.6 -- -- 1.6
Debt securities issued by foreign governments 106.5 4.5 -- 111.0
Corporate securities 9,899.6 423.2 (18.7) 10,304.1
Mortgage-backed securities 3,457.7 104.2 (2.4) 3,559.5
--------- ------ ------- ---------
Total fixed maturity securities 13,721.3 544.9 (21.1) 14,245.1
Equity securities 110.4 18.3 (1.5) 127.2
--------- ------ ------- ---------
$13,831.7 $563.2 $ (22.6) $14,372.3
========= ====== ======= =========
</TABLE>
The amortized cost and estimated fair value of fixed maturity
securities available-for-sale as of December 31, 1999, by expected
maturity, are shown below. Expected maturities will differ from
contractual maturities because borrowers may have the right to call or
prepay obligations with or without call or prepayment penalties.
<TABLE>
<CAPTION>
Amortized Estimated
(in millions) cost fair value
--------- ---------
<S> <C> <C>
Fixed maturity securities available for sale:
Due in one year or less $ 847.0 $ 847.0
Due after one year through five years 5,240.5 5,205.7
Due after five years through ten years 5,046.9 5,005.2
Due after ten years 4,242.9 4,236.1
--------- ---------
$15,377.3 $15,294.0
========= =========
</TABLE>
<PAGE> 11
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The components of unrealized (losses) gains on securities
available-for-sale, net, were as follows as of December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998
------ -------
<S> <C> <C>
Gross unrealized (losses) gains $(75.3) $ 540.6
Adjustment to deferred policy acquisition costs 50.9 (116.6)
Deferred federal income tax 8.5 (148.4)
------ -------
$(15.9) $ 275.6
====== =======
</TABLE>
An analysis of the change in gross unrealized (losses) gains on
securities available-for-sale for the years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ----- ------
<S> <C> <C> <C>
Securities available-for-sale:
Fixed maturity securities $(607.1) $52.6 $137.5
Equity securities (8.8) 4.2 (2.7)
------- ----- ------
$(615.9) $56.8 $134.8
======= ===== ======
</TABLE>
Proceeds from the sale of securities available-for-sale during 1999,
1998 and 1997 were $513.1 million, $610.5 million and $574.5 million,
respectively. During 1999, gross gains of $10.4 million ($9.0 million
and $9.9 million in 1998 and 1997, respectively) and gross losses of
$28.0 million ($7.6 million and $18.0 million in 1998 and 1997,
respectively) were realized on those sales. In addition, gross gains of
$15.1 million and gross losses of $0.7 million were realized in 1997
when the Company paid a dividend to NFS, which then made an equivalent
dividend to Nationwide Corp., consisting of securities having an
aggregate fair value of $850.0 million.
The Company had $15.6 million of real estate investments at December
31, 1999 that were non-income producing the preceding twelve months.
During 1998 the Company had investments of $42.4 million that were
non-income producing, which consisted of $32.7 million of securities
available-for-sale and $9.7 million of real estate.
Real estate is presented at cost less accumulated depreciation of $24.8
million as of December 31, 1999 ($21.5 million as of December 31, 1998)
and valuation allowances of $5.5 million as of December 31, 1999 ($5.4
million as of December 31, 1998).
The recorded investment of mortgage loans on real estate considered to
be impaired was $3.7 million as of both December 31, 1999 and 1998. No
valuation allowance has been recorded for these loans as of December
31, 1999 or 1998. During 1999, the average recorded investment in
impaired mortgage loans on real estate was approximately $3.7 million
($9.1 million in 1998) and there was no interest income recognized on
those loans. Interest income recognized on impaired loans was $0.3
million in 1998 which is equal to interest income recognized using a
cash-basis method of income recognition.
<PAGE> 12
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Activity in the valuation allowance account for mortgage loans on real
estate is summarized for the years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
----- ----- -----
<S> <C> <C> <C>
Allowance, beginning of year $42.4 $42.5 $51.0
Additions (reductions) charged to operations 0.7 (0.1) (1.2)
Direct write-downs charged against the allowance -- -- (7.3)
Allowance on acquired mortgage loans 1.3 -- --
----- ----- -----
Allowance, end of year $44.4 $42.4 $42.5
===== ===== =====
</TABLE>
An analysis of investment income by investment type follows for the
years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
Gross investment income:
Securities available-for-sale:
Fixed maturity securities $1,031.3 $ 982.5 $ 911.6
Equity securities 2.5 0.8 0.8
Mortgage loans on real estate 460.4 458.9 457.7
Real estate 28.8 40.4 42.9
Short-term investments 18.6 17.8 22.7
Other 26.5 30.7 21.0
-------- -------- --------
Total investment income 1,568.1 1,531.1 1,456.7
Less investment expenses 47.3 49.5 47.5
-------- -------- --------
Net investment income $1,520.8 $1,481.6 $1,409.2
======== ======== ========
</TABLE>
An analysis of realized gains (losses) on investments, net of valuation
allowances, by investment type follows for the years ended December 31:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ----- -----
<S> <C> <C> <C>
Securities available-for-sale:
Fixed maturity securities $(25.0) $(0.7) $ 3.6
Equity securities 7.4 2.1 2.7
Mortgage loans on real estate (0.6) 3.9 1.6
Real estate and other 6.6 23.1 3.2
------ ----- -----
$(11.6) $28.4 $11.1
====== ===== =====
</TABLE>
Fixed maturity securities with an amortized cost of $9.1 million as of
December 31, 1999 and $6.5 million as of December 31, 1998 were on
deposit with various regulatory agencies as required by law.
(4) Derivative Financial Instruments
The Company uses derivative financial instruments, principally interest
rate swaps, interest rate futures contracts and foreign currency swaps,
to manage market risk exposures associated with changes in interest
rates and foreign currency exchange rates. Provided they meet specific
criteria, interest rate swaps and futures are considered hedges and are
accounted for under the accrual method and deferral method,
respectively. The Company has no significant derivative positions that
are not considered hedges.
<PAGE> 13
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Interest rate swaps are primarily used to convert specific investment
securities and interest bearing policy liabilities from a fixed-rate to
a floating-rate basis. Amounts receivable or payable under these
agreements are recognized as an adjustment to net investment income or
interest credited to policyholder account balances consistent with the
nature of the hedged item. The changes in fair value of the interest
rate swap agreements are not recognized on the balance sheet, except
for interest rate swaps designated as hedges of fixed maturity
securities available-for-sale, for which changes in fair values are
reported in accumulated other comprehensive income.
Interest rate futures contracts are primarily used to hedge the risk of
adverse interest rate changes related to the Company's mortgage loan
commitments and anticipated purchases of fixed rate investments. Gains
and losses are deferred and, at the time of closing, reflected as an
adjustment to the carrying value of the related mortgage loans or
investments. The carrying value adjustments are amortized into net
investment income over the life of the related mortgage loans or
investments.
Foreign currency swaps are used to convert cash flows from specific
policy liabilities and investments denominated in foreign currencies
into U.S. dollars at specified exchange rates. Gains and losses on
foreign currency swaps are recorded in earnings based on the related
spot foreign exchange rate at the end of the reporting period. Gains
and losses on these contracts offset those recorded as a result of
translating the hedged foreign currency denominated liabilities and
investments to U.S. dollars.
The following table summarizes the notional amount of derivative
financial instruments classified as hedges outstanding as of December
31, 1999. Prior to 1999 the Company's activities in derivatives were
not significant.
<TABLE>
<CAPTION>
(in millions)
-------------
<S> <C>
Interest rate swaps
Pay fixed/receive variable rate swaps hedging investments $362.7
Pay variable/receive fixed rate swaps hedging investments $ 28.5
Other contracts hedging investments $ 19.1
Pay variable/receive fixed rate swaps hedging liabilities $577.2
Foreign currency swaps
Hedging foreign currency denominated investments $ 14.8
Hedging foreign currency denominated liabilities $577.2
Interest rate futures contracts $781.6
</TABLE>
<PAGE> 14
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
(5) Federal Income Tax
The tax effects of temporary differences that give rise to significant
components of the net deferred tax liability as of December 31, 1999
and 1998 are as follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998
---- ----
<S> <C> <C>
Deferred tax assets:
Fixed maturity securities $ 5.3 $ --
Future policy benefits 149.5 207.7
Liabilities in separate accounts 373.6 319.9
Mortgage loans on real estate and real estate 18.5 17.5
Other assets and other liabilities 51.1 58.9
----- ------
Total gross deferred tax assets 598.0 604.0
Less valuation allowance (7.0) (7.0)
----- ------
Net deferred tax assets 591.0 597.0
----- ------
Deferred tax liabilities:
Deferred policy acquisition costs 724.4 568.7
Fixed maturity securities -- 212.2
Deferred tax on realized investment gains 34.7 34.8
Equity securities and other long-term investments 10.8 9.6
Other 26.5 21.6
------ ------
Total gross deferred tax liabilities 796.4 846.9
------ ------
Net deferred tax liability $205.4 $249.9
====== ======
</TABLE>
In assessing the realizability of deferred tax assets, management
considers whether it is more likely than not that some portion of the
total gross deferred tax assets will not be realized. Nearly all future
deductible amounts can be offset by future taxable amounts or recovery
of federal income tax paid within the statutory carryback period. There
has been no change in the valuation allowance for the years ended
December 31, 1999, 1998 and 1997.
The Company's current federal income tax liability was $104.7 million
and $72.8 million as of December 31, 1999 and 1998, respectively.
Federal income tax expense for the years ended December 31 was as
follows:
(in millions) 1999 1998 1997
------ ------ ------
Currently payable $ 53.6 $186.1 $121.7
Deferred tax expense 147.8 4.3 28.5
------ ------ ------
$201.4 $190.4 $150.2
====== ====== ======
<PAGE> 15
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Total federal income tax expense for the years ended December 31, 1999,
1998 and 1997 differs from the amount computed by applying the U.S.
federal income tax rate to income before tax as follows:
<TABLE>
<CAPTION>
1999 1998 1997
---------------- ---------------- ----------------
(in millions) Amount % Amount % Amount %
------ ---- ------ ---- ------ ----
<S> <C> <C> <C> <C> <C> <C>
Computed (expected) tax expense $212.3 35.0 $195.0 35.0 $150.5 35.0
Tax exempt interest and dividends
received deduction (7.3) (1.2) (4.9) (0.9) -- --
Income tax credits (4.3) (0.7) -- -- -- --
Other, net 0.7 0.1 0.3 0.1 (0.3) (0.1)
------ ---- ------ ---- ------ ----
Total (effective rate of each year) $201.4 33.2 $190.4 34.2 $150.2 34.9
====== ==== ====== ==== ====== ====
</TABLE>
Total federal income tax paid was $29.8 million, $173.4 million and
$91.8 million during the years ended December 31, 1999, 1998 and 1997,
respectively.
(6) Comprehensive Income
Comprehensive Income includes net income as well as certain items that
are reported directly within separate components of shareholder's
equity that bypass net income. Currently, the Company's only component
of Other Comprehensive Income is unrealized gains (losses) on
securities available-for-sale. The related before and after federal tax
amounts are as follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ------ ------
<S> <C> <C> <C>
Unrealized gains (losses) on securities available-for-sale
arising during the period:
Gross $(665.3) $ 58.2 $141.1
Adjustment to deferred policy acquisition costs 167.5 (12.9) (21.8)
Related federal income tax (expense) benefit 171.4 (15.9) (41.7)
------- ------ ------
Net (326.4) 29.4 77.6
------- ------ ------
Reclassification adjustment for net (gains) losses on
securities available-for-sale realized during the
period:
Gross 17.6 (1.4) (6.3)
Related federal income tax expense (benefit) (6.2) 0.5 2.2
------- ------ ------
Net 11.4 (0.9) (4.1)
------- ------ ------
Total Other Comprehensive Income $(315.0) $ 28.5 $ 73.5
======= ====== ======
</TABLE>
(7) Fair Value of Financial Instruments
The following disclosures summarize the carrying amount and estimated
fair value of the Company's financial instruments. Certain assets and
liabilities are specifically excluded from the disclosure requirements
of financial instruments. Accordingly, the aggregate fair value amounts
presented do not represent the underlying value of the Company.
<PAGE> 16
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The fair value of a financial instrument is defined as the amount at
which the financial instrument could be exchanged in a current
transaction between willing parties. In cases where quoted market
prices are not available, fair value is to be based on estimates using
present value or other valuation techniques. Many of the Company's
assets and liabilities subject to the disclosure requirements are not
actively traded, requiring fair values to be estimated by management
using present value or other valuation techniques. These techniques are
significantly affected by the assumptions used, including the discount
rate and estimates of future cash flows. Although fair value estimates
are calculated using assumptions that management believes are
appropriate, changes in assumptions could cause these estimates to vary
materially. In that regard, the derived fair value estimates cannot be
substantiated by comparison to independent markets and, in many cases,
could not be realized in the immediate settlement of the instruments.
Although insurance contracts, other than policies such as annuities
that are classified as investment contracts, are specifically exempted
from the disclosure requirements, estimated fair value of policy
reserves on life insurance contracts is provided to make the fair value
disclosures more meaningful.
The tax ramifications of the related unrealized gains and losses can
have a significant effect on fair value estimates and have not been
considered in the estimates.
The following methods and assumptions were used by the Company in
estimating its fair value disclosures:
Fixed maturity and equity securities: The fair value for fixed
maturity securities is based on quoted market prices, where
available. For fixed maturity securities not actively traded, fair
value is estimated using values obtained from independent pricing
services or, in the case of private placements, is estimated by
discounting expected future cash flows using a current market rate
applicable to the yield, credit quality and maturity of the
investments. The fair value for equity securities is based on
quoted market prices. The carrying amount and fair value for fixed
maturity and equity securities exclude the fair value of
derivatives contracts designated as hedges of fixed maturity and
equity securities.
Mortgage loans on real estate, net: The fair value for mortgage
loans on real estate is estimated using discounted cash flow
analyses, using interest rates currently being offered for similar
loans to borrowers with similar credit ratings. Loans with similar
characteristics are aggregated for purposes of the calculations.
Fair value for mortgage loans in default is the estimated fair
value of the underlying collateral.
Policy loans, short-term investments and cash: The carrying amount
reported in the consolidated balance sheets for these instruments
approximates their fair value.
Separate account assets and liabilities: The fair value of assets
held in separate accounts is based on quoted market prices. The
fair value of liabilities related to separate accounts is the
amount payable on demand, which is net of certain surrender
charges.
Investment contracts: The fair value for the Company's liabilities
under investment type contracts is disclosed using two methods.
For investment contracts without defined maturities, fair value is
the amount payable on demand. For investment contracts with known
or determined maturities, fair value is estimated using discounted
cash flow analysis. Interest rates used are similar to currently
offered contracts with maturities consistent with those remaining
for the contracts being valued.
<PAGE> 17
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Policy reserves on life insurance contracts: Included are
disclosures for individual life insurance, universal life
insurance and supplementary contracts with life contingencies for
which the estimated fair value is the amount payable on demand.
Also included are disclosures for the Company's limited payment
policies, which the Company has used discounted cash flow analyses
similar to those used for investment contracts with known
maturities to estimate fair value.
Commitments to extend credit: Commitments to extend credit have
nominal fair value because of the short-term nature of such
commitments. See note 8.
Futures contracts: The fair value for futures contracts is based
on quoted market prices.
Interest rate and foreign currency swaps: The fair value for
interest rate and foreign currency swaps are calculated with
pricing models using current rate assumptions.
Carrying amount and estimated fair value of financial instruments
subject to disclosure requirements and policy reserves on life
insurance contracts were as follows as of December 31:
<TABLE>
<CAPTION>
1999 1998
------------------------ -------------------------
Carrying Estimated Carrying Estimated
(in millions) amount fair value amount fair value
--------- --------- --------- ----------
<S> <C> <C> <C> <C>
Assets:
Investments:
Securities available-for-sale:
Fixed maturity securities $15,294.0 $15,294.0 $14,245.1 $14,245.1
Equity securities 92.9 92.9 128.5 128.5
Mortgage loans on real estate, net 5,786.3 5,745.5 5,328.4 5,527.6
Policy loans 519.6 519.6 464.3 464.3
Short-term investments 416.0 416.0 289.1 289.1
Cash 4.8 4.8 3.4 3.4
Assets held in separate accounts 67,135.1 67,135.1 50,935.8 50,935.8
Liabilities:
Investment contracts (16,977.7) (16,428.6) (15,468.7) (15,158.6)
Policy reserves on life insurance contracts (4,883.9) (4,607.9) (3,914.0) (3,768.9)
Liabilities related to separate accounts (67,135.1) (66,318.7) (50,935.8) (49,926.5)
Derivative financial instruments:
Interest rate swaps hedging assets 4.3 4.3 - -
Interest rate swaps hedging liabilities - (24.2) - -
Foreign currency swaps (11.8) (11.8) - -
Futures contracts 1.3 1.3 (1.3) (1.3)
</TABLE>
(8) Risk Disclosures
The following is a description of the most significant risks facing
life insurers and how the Company mitigates those risks:
Credit Risk: The risk that issuers of securities owned by the Company
or mortgagors on mortgage loans on real estate owned by the Company
will default or that other parties, including reinsurers, which owe the
Company money, will not pay. The Company minimizes this risk by
adhering to a conservative investment strategy, by maintaining
reinsurance and credit and collection policies and by providing for any
amounts deemed uncollectible.
<PAGE> 18
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Interest Rate Risk: The risk that interest rates will change and cause
a decrease in the value of an insurer's investments. This change in
rates may cause certain interest-sensitive products to become
uncompetitive or may cause disintermediation. The Company mitigates
this risk by charging fees for non-conformance with certain policy
provisions, by offering products that transfer this risk to the
purchaser, and/or by attempting to match the maturity schedule of its
assets with the expected payouts of its liabilities. To the extent that
liabilities come due more quickly than assets mature, an insurer would
have to borrow funds or sell assets prior to maturity and potentially
recognize a gain or loss.
Legal/Regulatory Risk: The risk that changes in the legal or regulatory
environment in which an insurer operates will result in increased
competition, reduced demand for a company's products, or create
additional expenses not anticipated by the insurer in pricing its
products. The Company mitigates this risk by offering a wide range of
products and by operating throughout the United States, thus reducing
its exposure to any single product or jurisdiction, and also by
employing underwriting practices which identify and minimize the
adverse impact of this risk.
Financial Instruments with Off-Balance-Sheet Risk: The Company is a
party to financial instruments with off-balance-sheet risk in the
normal course of business through management of its investment
portfolio. These financial instruments include commitments to extend
credit in the form of loans and derivative financial instruments. These
instruments involve, to varying degrees, elements of credit risk in
excess of amounts recognized on the consolidated balance sheets.
Commitments to fund fixed rate mortgage loans on real estate are
agreements to lend to a borrower, and are subject to conditions
established in the contract. Commitments generally have fixed
expiration dates or other termination clauses and may require payment
of a deposit. Commitments extended by the Company are based on
management's case-by-case credit evaluation of the borrower and the
borrower's loan collateral. The underlying mortgage property represents
the collateral if the commitment is funded. The Company's policy for
new mortgage loans on real estate is to lend no more than 75% of
collateral value. Should the commitment be funded, the Company's
exposure to credit loss in the event of nonperformance by the borrower
is represented by the contractual amounts of these commitments less the
net realizable value of the collateral. The contractual amounts also
represent the cash requirements for all unfunded commitments.
Commitments on mortgage loans on real estate of $216.2 million
extending into 2000 were outstanding as of December 31, 1999. The
Company also had $28.0 million of commitments to purchase fixed
maturity securities outstanding as of December 31, 1999.
Notional amounts of derivative financial instruments, primarily
interest rate swaps, interest rate futures contracts and foreign
currency swaps, significantly exceed the credit risk associated with
these instruments and represent contractual balances on which
calculations of amounts to be exchanged are based. Credit exposure is
limited to the sum of the aggregate fair value of positions that have
become favorable to NLIC, including accrued interest receivable due
from counterparties. Potential credit losses are minimized through
careful evaluation of counterparty credit standing, selection of
counterparties from a limited group of high quality institutions,
collateral agreements and other contract provisions. At December 31,
1999, NLIC's credit risk from these derivative financial instruments
was $6.1 million.
Significant Concentrations of Credit Risk: The Company grants mainly
commercial mortgage loans on real estate to customers throughout the
United States. The Company has a diversified portfolio with no more
than 23% (22% in 1998) in any geographic area and no more than 2% (2%
in 1998) with any one borrower as of December 31, 1999. As of December
31, 1999, 39% (42% in 1998) of the remaining principal balance of the
Company's commercial mortgage loan portfolio financed retail
properties.
<PAGE> 19
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Reinsurance: The Company has entered into a reinsurance contract to
cede a portion of its general account individual annuity business to
The Franklin Life Insurance Company (Franklin). Total recoveries due
from Franklin were $143.6 million and $187.9 million as of December 31,
1999 and 1998, respectively. The contract is immaterial to the
Company's results of operations. The ceding of risk does not discharge
the original insurer from its primary obligation to the policyholder.
Under the terms of the contract, Franklin has established a trust as
collateral for the recoveries. The trust assets are invested in
investment grade securities, the market value of which must at all
times be greater than or equal to 102% of the reinsured reserves.
(9) Pension Plan and Postretirement Benefits Other Than Pensions
The Company is a participant, together with other affiliated companies,
in a pension plan covering all employees who have completed at least
one year of service. The Company funds pension costs accrued for direct
employees plus an allocation of pension costs accrued for employees of
affiliates whose work efforts benefit the Company. Assets of the
Retirement Plan are invested in group annuity contracts of NLIC.
Pension cost (benefit) charged to operations by the Company during the
years ended December 31, 1999, 1998 and 1997 were $(8.3) million, $2.0
million and $7.5 million, respectively. The Company has recorded a
prepaid pension asset of $13.3 million and $5.0 million as of December
31, 1999 and 1998, respectively.
In addition to the defined benefit pension plan, the Company, together
with other affiliated companies, participates in life and health care
defined benefit plans for qualifying retirees. Postretirement life and
health care benefits are contributory and generally available to full
time employees who have attained age 55 and have accumulated 15 years
of service with the Company after reaching age 40. Postretirement
health care benefit contributions are adjusted annually and contain
cost-sharing features such as deductibles and coinsurance. In addition,
there are caps on the Company's portion of the per-participant cost of
the postretirement health care benefits. These caps can increase
annually, but not more than three percent. The Company's policy is to
fund the cost of health care benefits in amounts determined at the
discretion of management. Plan assets are invested primarily in group
annuity contracts of NLIC.
The Company elected to immediately recognize its estimated accumulated
postretirement benefit obligation (APBO), however, certain affiliated
companies elected to amortize their initial transition obligation over
periods ranging from 10 to 20 years.
The Company's accrued postretirement benefit expense as of December 31,
1999 and 1998 was $49.6 million and $40.1 million, respectively, and
the net periodic postretirement benefit cost (NPPBC) for 1999, 1998 and
1997 was $4.9 million, $4.1 million and $3.0 million, respectively.
<PAGE> 20
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Information regarding the funded status of the pension plan as a whole
and the postretirement life and health care benefit plan as a whole as
of December 31, 1999 and 1998 follows:
<TABLE>
<CAPTION>
Pension Benefits Postretirement Benefits
------------------ -----------------------
(in millions) 1999 1998 1999 1998
--------------------------------------------------------- -------- -------- ------- -------
<S> <C> <C> <C> <C>
Change in benefit obligation:
Benefit obligation at beginning of year $2,185.0 $2,033.8 $ 270.1 $ 237.9
Service cost 80.0 87.6 14.2 9.8
Interest cost 109.9 123.4 17.6 15.4
Actuarial (gain) loss (95.0) 123.2 (64.4) 15.6
Plan settlement in 1999/curtailment in 1998 (396.1) (107.2) -- --
Benefits paid (72.4) (75.8) (11.0) (8.6)
Acquired companies -- -- 13.3 --
-------- -------- ------- -------
Benefit obligation at end of year 1,811.4 2,185.0 239.8 270.1
-------- -------- ------- -------
Change in plan assets:
Fair value of plan assets at beginning of year 2,541.9 2,212.9 77.9 69.2
Actual return on plan assets 161.8 300.7 3.5 5.0
Employer contribution 12.4 104.1 20.9 12.1
Plan settlement (396.1) -- -- --
Benefits paid (72.4) (75.8) (11.0) (8.4)
-------- -------- ------- -------
Fair value of plan assets at end of year 2,247.6 2,541.9 91.3 77.9
-------- -------- ------- -------
Funded status 436.2 356.9 (148.5) (192.2)
Unrecognized prior service cost 28.2 31.5 -- --
Unrecognized net (gains) losses (402.0) (345.7) (46.7) 16.0
Unrecognized net (asset) obligation at transition (7.7) (11.0) 1.1 1.3
-------- -------- ------- -------
Prepaid (accrued) benefit cost $ 54.7 $ 31.7 $(194.1) $(174.9)
======== ======== ======= =======
</TABLE>
<PAGE> 21
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
Basis for measurements, funded status of the pension plan and
postretirement life and health care benefit plan:
<TABLE>
<CAPTION>
Pension Benefits Postretirement Benefits
---------------- -----------------------
1999 1998 1999 1998
---- ---- ------- ------
<S> <C> <C>
Weighted average discount rate 7.00% 5.50% 7.80% 6.65%
Rate of increase in future compensation levels 5.25% 3.75% -- --
Assumed health care cost trend rate:
Initial rate -- -- 15.00% 15.00%
Ultimate rate -- -- 5.50% 8.00%
Uniform declining period -- -- 5 Years 15 Years
</TABLE>
The net periodic pension cost for the pension plan as a whole for the
years ended December 31, 1999, 1998 and 1997 follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
-------------------------------------------------------------------------------- ----------- ------------
<S> <C> <C> <C>
Service cost (benefits earned during the period) $ 80.0 $ 87.6 $ 77.3
Interest cost on projected benefit obligation 109.9 123.4 118.6
Expected return on plan assets (160.3) (159.0) (139.0)
Recognized gains (9.1) (3.8) --
Amortization of prior service cost 3.2 3.2 3.2
Amortization of unrecognized transition obligation (asset) (1.4) 4.2 4.2
------- ------- --------
$ 22.3 $ 55.6 $ 64.3
======= ======= ========
</TABLE>
Effective December 31, 1998, Wausau Service Corporation (WSC) ended its
affiliation with Nationwide Insurance and employees of WSC ended
participation in the plan. A curtailment gain of $67.1 million resulted
(consisting of a $107.2 million reduction in the projected benefit
obligation, net of the write-off of the $40.1 million remaining
unamortized transition obligation related to WSC). During 1999, the
plan transferred assets to settle its obligation related to WSC
employees . A settlement gain of $32.9 million was recognized.
Basis for measurements, net periodic pension cost for the pension plan:
<TABLE>
<CAPTION>
1999 1998 1997
------ ----- -----
<S> <C> <C> <C>
Weighted average discount rate 6.08% 6.00% 6.50%
Rate of increase in future compensation levels 4.33% 4.25% 4.75%
Expected long-term rate of return on plan assets 7.33% 7.25% 7.25%
</TABLE>
<PAGE> 22
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The amount of NPPBC for the postretirement benefit plan as a whole for
the years ended December 31, 1999, 1998 and 1997 was as follows:
<TABLE>
<CAPTION>
(in millions) 1999 1998 1997
------- ----------- -----------
<S> <C> <C> <C>
Service cost (benefits attributed to employee service during the year) $14.2 $ 9.8 $ 7.0
Interest cost on accumulated postretirement benefit obligation 17.6 15.4 14.0
Actual return on plan assets (3.5) (5.0) (3.6)
Amortization of unrecognized transition obligation of affiliates 0.6 0.2 0.2
Net amortization and deferral (1.8) 1.2 (0.5)
----- ----- -----
$27.1 $21.6 $17.1
===== ===== =====
</TABLE>
Actuarial assumptions used for the measurement of the NPPBC for the
postretirement benefit plan for 1999, 1998 and 1997 were as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------- ------ ------
<S> <C> <C> <C>
Discount rate 6.65% 6.70% 7.25%
Long term rate of return on plan
assets, net of tax 7.15% 5.83% 5.89%
Assumed health care cost trend rate:
Initial rate 15.00% 12.00% 11.00%
Ultimate rate 5.50% 6.00% 6.00%
Uniform declining period 5 Years 12 Years 12 Years
</TABLE>
For the postretirement benefit plan as a whole, a one percentage point
increase or decrease in the assumed health care cost trend rate would
have no impact on the APBO as of December 31, 1999 and have no impact
on the NPPBC for the year ended December 31, 1999.
(10) Shareholder's Equity, Regulatory Risk-Based Capital, Retained Earnings
and Dividend Restrictions
Ohio, NLIC's and NLAIC's state of domicile, imposes minimum risk-based
capital requirements that were developed by the NAIC. The formulas for
determining the amount of risk-based capital specify various weighting
factors that are applied to financial balances or various levels of
activity based on the perceived degree of risk. Regulatory compliance
is determined by a ratio of the company's regulatory total adjusted
capital, as defined by the NAIC, to its authorized control level
risk-based capital, as defined by the NAIC. Companies below specific
trigger points or ratios are classified within certain levels, each of
which requires specified corrective action. NLIC and NLAIC each exceed
the minimum risk-based capital requirements.
The statutory capital and surplus of NLIC as of December 31, 1999, 1998
and 1997 was $1.35 billion, $1.32 billion and $1.13 billion,
respectively. The statutory net income of NLIC for the years ended
December 31, 1999, 1998 and 1997 was $276.2 million, $171.0 million and
$111.7 million, respectively.
The Company is limited in the amount of shareholder dividends it may
pay without prior approval by the Department. As of December 31, 1999
$40.2 million of dividends could be paid by NLIC without prior
approval.
<PAGE> 23
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
In addition, the payment of dividends by NLIC may also be subject to
restrictions set forth in the insurance laws of New York that limit the
amount of statutory profits on NLIC's participating policies (measured
before dividends to policyholders) that can inure to the benefit of the
Company and its shareholder.
The Company currently does not expect such regulatory requirements to
impair its ability to pay operating expenses and shareholder dividends
in the future.
(11) Transactions With Affiliates
During second quarter 1999 the Company entered into a modified
coinsurance arrangement to reinsure the 1999 operating results of an
affiliated company, Employers Life Insurance Company of Wausau (ELOW)
retroactive to January 1, 1999. In September 1999, NFS acquired ELOW
for $120.8 million and immediately merged ELOW into NLIC terminating
the modified coinsurance arrangement. Because ELOW was an affiliate,
the Company accounted for the merger similar to poolings-of-interests;
however, prior period financial statements were not restated due to
immateriality. The reinsurance and merger combined contributed $1.46
million to year to date net income.
The Company has a reinsurance agreement with NMIC whereby all of the
Company's accident and health business is ceded to NMIC on a modified
coinsurance basis. The agreement covers individual accident and health
business for all periods presented and group and franchise accident and
health business since July 1, 1999. Either party may terminate the
agreement on January 1 of any year with prior notice. Prior to July 1,
1999 group and franchise accident and health business and a block of
group life insurance policies were ceded to ELOW under a modified
coinsurance agreement. Under a modified coinsurance agreement, invested
assets are retained by the ceding company and investment earnings are
paid to the reinsurer. Under the terms of the Company's agreements, the
investment risk associated with changes in interest rates is borne by
the reinsurer. Risk of asset default is retained by the Company,
although a fee is paid to the Company for the retention of such risk.
The ceding of risk does not discharge the original insurer from its
primary obligation to the policyholder. The Company believes that the
terms of the modified coinsurance agreements are consistent in all
material respects with what the Company could have obtained with
unaffiliated parties. Revenues ceded to NMIC and ELOW for the years
ended December 31, 1999, 1998 and 1997 were $193.0 million, $216.9
million, and $315.3 million, respectively, while benefits, claims and
expenses ceded were $216.9 million, $259.3 million, and $326.6 million,
respectively.
Pursuant to a cost sharing agreement among NMIC and certain of its
direct and indirect subsidiaries, including the Company, NMIC provides
certain operational and administrative services, such as sales support,
advertising, personnel and general management services, to those
subsidiaries. Expenses covered by such agreement are subject to
allocation among NMIC and such subsidiaries. Measures used to allocate
expenses among companies include individual employee estimates of time
spent, special cost studies, salary expense, commission expense and
other methods agreed to by the participating companies that are within
industry guidelines and practices. In addition, beginning in 1999
Nationwide Services Company, a subsidiary of NMIC, provides computer,
telephone, mail, employee benefits administration, and other services
to NMIC and certain of its direct and indirect subsidiaries, including
the Company, based on specified rates for units of service consumed.
For the years ended December 31, 1999, 1998 and 1997, the Company made
payments to NMIC and Nationwide Services Company totaling $124.1
million, $95.0 million, and $85.8 million, respectively. In addition,
the Company does not believe that expenses recognized under these
agreements are materially different than expenses that would have been
recognized had the Company operated on a stand-alone basis.
The Company leases office space from NMIC and certain of its
subsidiaries. For the years ended December 31, 1999, 1998 and 1997, the
Company made lease payments to NMIC and its subsidiaries of $9.9
million, $8.0 million and $8.4 million, respectively.
<PAGE> 24
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The Company also participates in intercompany repurchase agreements
with affiliates whereby the seller will transfer securities to the
buyer at a stated value. Upon demand or a stated period, the securities
will be repurchased by the seller at the original sales price plus a
price differential. Transactions under the agreements during 1999 and
1998 were not material. The Company believes that the terms of the
repurchase agreements are materially consistent with what the Company
could have obtained with unaffiliated parties.
The Company and various affiliates entered into agreements with
Nationwide Cash Management Company (NCMC), an affiliate, under which
NCMC acts as a common agent in handling the purchase and sale of
short-term securities for the respective accounts of the participants.
Amounts on deposit with NCMC were $411.7 million and $248.4 million as
of December 31, 1999 and 1998, respectively, and are included in
short-term investments on the accompanying consolidated balance sheets.
As part of certain restructuring activities that occurred prior to the
March 1997 IPO, the Company paid a dividend valued at $485.7 million to
Nationwide Corp. on January 1, 1997 consisting of the outstanding
shares of common stock of ELOW, National Casualty Company (NCC) and
West Coast Life Insurance Company (WCLIC). Also, on February 24, 1997,
the Company paid a dividend to NFS, and NFS paid an equivalent dividend
to Nationwide Corp., consisting of securities having an aggregate fair
value of $850.0 million. The Company recognized a gain of $14.4 million
on the transfer of securities.
Certain annuity products are sold through three affiliated companies,
which are also subsidiaries of NFS. Total commissions and fees paid to
these affiliates for the three years ended December 31, 1999 were $56.0
million, $60.0 million and $66.1 million, respectively.
(12) Bank Lines of Credit
NFS, NLIC and NMIC are parties to a $600.0 million revolving credit
facility which provides for a $600.0 million loan over a five year term
on a fully revolving basis with a group of national financial
institutions. The credit facility provides for several and not joint
liability with respect to any amount drawn by any party. NFS, NLIC and
NMIC pay facility and usage fees to the financial institutions to
maintain the revolving credit facility. As of December 31, 1999 the
Company had no amounts outstanding under the agreement.
(13) Contingencies
On October 29, 1998, the Company was named in a lawsuit filed in Ohio
state court related to the sale of deferred annuity products for use as
investments in tax-deferred contributory retirement plans (Mercedes
Castillo v. Nationwide Financial Services, Inc., Nationwide Life
Insurance Company and Nationwide Life and Annuity Insurance Company).
On May 3, 1999, the complaint was amended to, among other things, add
Marcus Shore as a second plaintiff. The amended complaint is brought as
a class action on behalf of all persons who purchased individual
deferred annuity contracts or participated in group annuity contracts
sold by the Company and the other named Company affiliates which were
used to fund certain tax-deferred retirement plans. The amended
complaint seeks unspecified compensatory and punitive damages. No class
has been certified. On June 11, 1999, the Company and the other named
defendants filed a motion to dismiss the amended complaint. On March 8,
2000, the court denied the motion to dismiss the amended complaint
filed by the Company and other named defendants. The Company intends to
defend this lawsuit vigorously.
(14) Segment Information
The Company uses differences in products as the basis for defining its
reportable segments. The Company reports three product segments:
Variable Annuities, Fixed Annuities and Life Insurance.
<PAGE> 25
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
The Variable Annuities segment consists of annuity contracts that
provide the customer with access to a wide range of investment options,
tax-deferred accumulation of savings, asset protection in the event of
an untimely death, and flexible payout options including a lump sum,
systematic withdrawal or a stream of payments for life. The Company's
variable annuity products consist almost entirely of flexible premium
deferred variable annuity contracts.
The Fixed Annuities segment consists of annuity contracts that generate
a return for the customer at a specified interest rate fixed for a
prescribed period, tax-deferred accumulation of savings, and flexible
payout options including a lump sum, systematic withdrawal or a stream
of payments for life. Such contracts consist of single premium deferred
annuities, flexible premium deferred annuities and single premium
immediate annuities. The Fixed Annuities segment includes the fixed
option under variable annuity contracts.
The Life Insurance segment consists of insurance products, including
variable universal life insurance and corporate-owned life insurance
products, that provide a death benefit and may also allow the customer
to build cash value on a tax-deferred basis.
In addition to the product segments, the Company reports corporate
revenue and expenses, investments and related investment income
supporting capital not specifically allocated to its product segments,
revenues and expenses of its investment advisor subsidiary, revenues
and expenses related to group annuity contracts sold to Nationwide
Insurance employee and agent benefit plans and all realized gains and
losses on investments in a Corporate and Other segment.
During 1999 the Company revised the allocation of net investment income
among its Life Insurance and Corporate and Other segments. Also,
certain amounts previously reported as other income were reclassified
to operating expense. Amounts reported for prior periods have been
restated to reflect these changes.
The following table summarizes the financial results of the Company's
business segments for the years ended December 31, 1999, 1998 and 1997.
<TABLE>
<CAPTION>
Variable Fixed Life Corporate
(in millions) Annuities Annuities Insurance and Other Total
------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
1999:
Net investment income (1) $ (41.5) $ 1,134.5 $ 253.1 $ 174.7 $ 1,520.8
Other operating revenue 668.2 43.4 393.0 77.8 1,182.4
--------- --------- -------- -------- ---------
Total operating revenue (2) 626.7 1,177.9 646.1 252.5 2,703.2
--------- --------- -------- -------- ---------
Interest credited to policyholder
account balances -- 837.5 130.5 128.3 1,096.3
Amortization of deferred policy
acquisition costs 162.8 49.7 60.1 -- 272.6
Other benefits and expenses 173.6 113.5 334.7 94.4 716.2
--------- --------- -------- -------- ---------
Total expenses 336.4 1,000.7 525.3 222.7 2,085.1
--------- --------- -------- -------- ---------
Operating income before
federal income tax 290.3 177.2 120.8 29.8 618.1
Realized losses on investments -- -- -- (11.6) (11.6)
--------- --------- -------- -------- ---------
Consolidated income before
federal tax expense $ 290.3 $ 177.2 $ 120.8 $ 18.2 $ 606.5
========= ========= ======== ======== =========
Assets as of year end $62,599.7 $17,134.8 $6,616.7 $6,324.7 $92,675.9
========= ========= ======== ======== =========
</TABLE>
<PAGE> 26
NATIONWIDE LIFE INSURANCE COMPANY AND SUBSIDIARIES
(a wholly owned subsidiary of
Nationwide Financial Services, Inc.)
Notes to Consolidated Financial Statements, Continued
<TABLE>
<CAPTION>
Variable Fixed Life Corporate
(in millions) Annuities Annuities Insurance and Other Total
------------------------------------ --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C>
1998:
Net investment income (1) $ (31.3) $ 1,116.6 $ 225.6 $ 170.7 $ 1,481.6
Other operating revenue 532.9 35.7 318.5 78.6 965.7
--------- --------- -------- -------- ---------
Total operating revenue (2) 501.6 1,152.3 544.1 249.3 2,447.3
--------- --------- -------- -------- ---------
Interest credited to policyholder
account balances -- 828.6 115.4 125.0 1,069.0
Amortization of deferred policy
acquisition costs 123.9 44.2 46.4 -- 214.5
Other benefits and expenses 159.3 104.2 293.5 78.1 635.1
--------- --------- -------- -------- ---------
Total expenses 283.2 977.0 455.3 203.1 1,918.6
--------- --------- -------- -------- ---------
Operating income before federal
income tax 218.4 175.3 88.8 46.2 528.7
Realized gains on investments -- -- -- 28.4 28.4
--------- --------- -------- -------- ---------
Consolidated income before
federal tax expense $ 218.4 $ 175.3 $ 88.8 $ 74.6 $ 557.1
========= ========= ======== ======== =========
Assets as of year end $47,668.7 $15,215.7 $5,187.6 $6,270.1 $74,342.1
========= ========= ======== ======== =========
1997:
Net investment income (1) $ (26.8) $ 1,098.2 $ 184.9 $ 152.9 $ 1,409.2
Other operating revenue 413.9 43.2 283.4 56.6 797.1
--------- --------- -------- -------- ---------
Total operating revenue (2) 387.1 1,141.4 468.3 209.5 2,206.3
--------- --------- -------- -------- ---------
Interest credited to policyholder
account balances -- 823.4 78.5 114.7 1,016.6
Amortization of deferred policy
acquisition costs 87.8 39.8 39.6 -- 167.2
Benefits and expenses 148.4 108.7 283.5 63.1 603.7
--------- --------- -------- -------- ---------
Total expenses 236.2 971.9 401.6 177.8 1,787.5
--------- --------- -------- -------- ---------
Operating income before federal
income tax 150.9 169.5 66.7 31.7 418.8
Realized gains on investments -- -- -- 11.1 11.1
--------- --------- -------- -------- ---------
Consolidated income before
federal tax expense $ 150.9 $ 169.5 $ 66.7 $ 42.8 $ 429.9
========= ========= ======== ======== =========
Assets as of year end $35,278.7 $14,436.3 $3,901.4 $6,174.3 $59,790.7
========= ========= ======== ======== =========
</TABLE>
- ----------
(1) The Company's method of allocating net investment income results in
a charge (negative net investment income) to the Variable Annuities
segment which is recognized in the Corporate and Other segment. The
charge relates to non-invested assets which support this segment on
a statutory basis.
(2) Excludes realized gains and losses on investments.
The Company has no significant revenue from customers located outside
of the United States nor does the Company have any significant
long-lived assets located outside the United States.
<PAGE> 99
PART C. OTHER INFORMATION
Item 24. FINANCIAL STATEMENTS AND EXHIBITS
Page
(a) Financial Statements:
(1) Financial statements included in Prospectus.
(Part A):
Condensed Financial Information.
(2) Financial statements included in Part B: Those financial
statements required by Item 23 to be included in Part B
have been incorporated therein by reference to the
Prospectus (Part A).
Nationwide DC Variable Account:
Independent Auditors' Report.
Statement of Assets, Liabilities and Contract
Owners' Equity as of December 31, 1999.
Statements of Operations for the years ended December 31,
1999 and 1998.
Statements of Changes in Contract Owners' Equity for the
years ended December 31, 1999 and 1998.
Notes to Financial Statements.
Nationwide Life Insurance Company and subsidiaries:
Independent Auditors' Report.
Consolidated Balance Sheets as of December 31, 1999 and
1998.
Consolidated Statements of Income for the years ended
December 31, 1999, 1998 and 1997.
Consolidated Statements of Shareholder's Equity for the
years ended December 31, 1999, 1998 and 1997.
Consolidated Statements of Cash Flows for the years ended
December 31, 1999, 1998 and 1997.
Notes to Consolidated Financial Statements.
<PAGE> 100
Item 24. (b) Exhibits
(1) Resolution of the Depositor's Board of Directors
authorizing the establishment of the Registrant -
Filed previously with Registration Statement (File
No. 2-51911) and is hereby incorporated by reference.
(2) Not Applicable
(3) Underwriting or Distribution of contracts between the
Registrant and Principal Underwriter - Filed
previously with Registration Statement (File No.
2-51911) and is hereby incorporated by reference.
(4) The form of the variable annuity contract - Filed
previously with Registration Statement (File No.
2-51911) and is hereby incorporated by reference.
(5) Variable Annuity Application - Filed previously with
Registration Statement (File No. 2-51911) and is
hereby incorporated by reference.
(6) Articles of Incorporation of Depositor - Filed
previously with Registration Statement (File No.
2-51911) and is hereby incorporated by reference.
(7) Not Applicable
(8) Not Applicable
(9) Opinion of Counsel - Filed previously with
Registration Statement (File No. 2-51911) and is
hereby incorporated by reference.
(10) Not Applicable
(11) Not Applicable
(12) Not Applicable
(13) Not Applicable
<PAGE> 101
Item 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
<S> <C>
Lewis J. Alphin Director
519 Bethel Church Road
Mount Olive, NC 28365-6107
A. I. Bell Director
4121 North River Road West
Zanesville, OH 43701
Kenneth D. Davis Director
7229 Woodmansee Road
Leesburg, OH 45135
Keith W. Eckel Director
1647 Falls Road
Clarks Summit, PA 18411
Willard J. Engel Director
301 East Marshall Street
Marshall, MN 56258
Fred C. Finney Director
1558 West Moreland Road
Wooster, OH 44691
Joseph J. Gasper President and Chief Operating Officer
One Nationwide Plaza and Director
Columbus, OH 43215
Dimon R. McFerson Chairman and Chief Executive Officer
One Nationwide Plaza and Director
Columbus, OH 43215
David O. Miller Chairman of the Board and Director
115 Sprague Drive
Hebron, OH 43025
Yvonne L. Montgomery Director
Xerox Corporation
Suite 200
1401 H Street NW
Washington, DC 20005-2110
Ralph M. Paige Director
Federation of Southern
Cooperatives/Land Assistance Fund
2769 Church Street
East Point, GA 30344
James F. Patterson Director
8765 Mulberry Road
Chesterland, OH 44026
</TABLE>
<PAGE> 102
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
<S> <C>
Arden L. Shisler Director
1356 North Wenger Road
Dalton, OH 44618
Robert L. Stewart Director
88740 Fairview Road
Jewett, OH 43986
Nancy C. Thomas Director
1767D Westwood Avenue
Alliance, OH 44601
Richard D. Headley Executive Vice President - Chief
One Nationwide Plaza Information Technology Officer
Columbus, OH 43215
Robert A. Oakley Executive Vice President-
One Nationwide Plaza Chief Financial Officer
Columbus, OH 43215
Robert J. Woodward, Jr. Executive Vice President
One Nationwide Plaza Chief Investment Officer
Columbus, OH 43215
James E. Brock Senior Vice President - Corporate
One Nationwide Plaza Development
Columbus, OH 43215
Charles A. Bryan Senior Vice President -
One Nationwide Plaza Chief Actuary - Property and Casualty
Columbus, OH 43215
John R. Cook, Jr. Senior Vice President -
One Nationwide Plaza Chief Communications Officer
Columbus, OH 43215
David A. Diamond Senior Vice President -
One Nationwide Plaza Corporate Controller
Columbus, OH 43215
Philip C. Gath Senior Vice President -
One Nationwide Plaza Chief Actuary - Nationwide Financial
Columbus, OH 43215
Patricia R. Hatler Senior Vice President,
One Nationwide Plaza General Counsel and Secretary
Columbus, OH 43215
</TABLE>
<PAGE> 103
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITIONS AND OFFICES
BUSINESS ADDRESS WITH DEPOSITOR
<S> <C>
David K. Hollingsworth Senior Vice President
One Nationwide Plaza
Columbus, OH 43215
David R. Jahn Senior Vice President -
One Nationwide Plaza Commercial Insurance
Columbus, OH 43215
Donna A James Senior Vice President - Chief Human
One Nationwide Plaza Resources Officer
Columbus, OH 43215
Richard A. Karas Senior Vice President - Sales -
One Nationwide Plaza Financial Services
Columbus, OH 43215
Gregory S. Lashutka Senior Vice President -
One Nationwide Plaza Corporate Relations
Columbus, OH 43215
Edwin P. McCausland, Jr. Senior Vice President -
One Nationwide Plaza Fixed Income Securities
Columbus, OH 43215
Mark D. Phelan Senior Vice President
One Nationwide Plaza
Columbus, OH 43215
Douglas C. Robinette Senior Vice President -
One Nationwide Plaza Claims and Finance Services
Columbus, OH 43215
Mark R. Thresher Senior Vice President -
One Nationwide Plaza Finance - Nationwide Financial
Columbus, OH 43215
Richard M. Waggoner Senior Vice President -
One Nationwide Plaza Operations
Columbus, OH 43215
Susan A. Wolken Senior Vice President - Product
One Nationwide Plaza Management and Nationwide
Columbus, OH 43215 Financial Marketing
</TABLE>
Item 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE
DEPOSITOR OR REGISTRANT.
* Subsidiaries for which separate financial statements are filed
** Subsidiaries included in the respective consolidated financial
statements
*** Subsidiaries included in the respective group financial
statements filed for unconsolidated subsidiaries
**** other subsidiaries
<PAGE> 104
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
The 401(k) Companies, Inc. Texas Holding Company
The 401(k) Company Texas Third-party administrator for 401(k)
plans
401(k) Investment Advisors, Inc. Texas Investment advisor registered with the
SEC
401(k) Investments Services, Inc. Texas NASD registered broker-dealer
Affiliate Agency, Inc. Delaware Insurance agency marketing life
insurance & annuity products through
financial institutions
Affiliate Agency of Ohio, Inc. Ohio Insurance agency marketing life
insurance & annuity products through
financial institutions
AID Finance Services, Inc. Iowa Holding Company
ALLIED General Agency Company Iowa Managing general agent and surplus
lines broker for property & casualty
insurance products
ALLIED Group, Inc. Iowa Property & casualty holding company
ALLIED Group Insurance Marketing Iowa Direct marketer for property and
Company casualty insurance products
ALLIED Group Merchant Banking Iowa Broker-Dealer
Corporation
ALLIED Property and Casualty Insurance Iowa Underwrites general property &
Company casualty insurance
Allnations, Inc. Ohio Promotes international cooperative
insurance organizations
AMCO Insurance Company Iowa Underwrites general property &
casualty insurance
American Marine Underwriters, Inc. Florida Underwriting manager for ocean cargo
and bulk insurance
Auto Direkt Insurance Company Germany Insurance Company
Cal-Ag Insurance services, Inc. California Captive insurance brokerage firm
CalFarm Insurance Agency California Former marketing company for
traditional agent producers of CalFarm
Insurance Company
CalFarm Insurance Company California Multi-line insurance company
Caliber Funding Delaware A limited purpose corporation
Colonial County Mutual Insurance Texas Insurance Company
Company
Columbus Insurance Brokerage and Germany General service insurance broker
Service GmbH
</TABLE>
<PAGE> 105
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Cooperative Service Company Nebraska Insurance agency that sells and
services commercial insurance
Depositors Insurance Company Iowa Underwrites property & casualty
insurance
eNationwide, LLC Ohio A limited liability company to provide
administrative services to
Nationwide's direct operations
Excaliber Funding Corporation Delaware Limited purpose corporation
F&B, Inc. Iowa Insurance Agency
Farmland Mutual Insurance Company Iowa Mutual Insurance Company
Financial Horizons Distributors Agency Alabama Insurance agency marketing life
of Alabama, Inc. insurance and annuity products through
financial institutions
Financial Horizons Distributors Agency Ohio Insurance marketing life insurance and
of Ohio, Inc. annuity products through financial
institutions
Financial Horizons Distributors Agency Oklahoma Insurance marketing life insurance and
of Oklahoma, Inc. annuity products through financial
institutions
Financial Horizons Distributors Agency Texas Insurance marketing life insurance and
of Texas, Inc. annuity products through financial
institutions
*Financial Horizons Investment Trust Massachusetts Diversified, open-end investment
company
Financial Horizons Securities Oklahoma Limited broker-dealer doing business
Corporation solely in the financial institution
market
GatesMcDonald Health Plus Inc. Ohio Managed Care Organization
Gates, McDonald & Company Ohio Services employers for managing
workers' and unemployment compensation
matters
Gates, McDonald & Company of Nevada Nevada Self-insurance administration, claims
examinations and data processing
services
Gates, McDonald & Company of New York, New York Workers' compensation/self-insured
Inc. claims administration services to
employers with exposure in New York
Insurance Intermediaries, Inc. Ohio Insurance agency providing commercial
property & casualty brokerage services
Irvin L. Schwartz and Associates, Inc. Ohio Insurance Agency
Landmark Financial Services of New New York Insurance agency marketing life
York, Inc. insurance and annuity products through
financial institutions
Leben Direkt Insurance Company Germany Life insurance through direct mail
</TABLE>
<PAGE> 106
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Lone Star General Agency, Inc. Texas General agent to market non-standard
automobile and motorcycle insurance
for Colonial Mutual Insurance Company
MedProSolutions, Inc. Massachusetts Provides third-party administration
services for workers compensation,
automobile injury and disability claims
Midwest Printing Services, Ltd. Iowa General printing services
Morley & Associates, Inc. Oregon Insurance brokerage
Morley Capital Management, Inc. Oregon Investment adviser and stable value
money management
Morley Financial Services, Inc. Oregon Holding Company
Morley Research Associates, Ltd. Delaware Credit research consulting
**MRM Investments, Inc. Ohio Owns and operates a recreational ski
facility
**National Casualty Company Wisconsin Insurance Company
National Casualty Company of America, England Insurance Company
Ltd.
National Deferred Compensation, Inc. Ohio Administers deferred compensation
plans for public employees
**National Premium and Benefit Delaware Provides third-party administration
Administration Company services
Nationwide Advisory Services, Inc. Ohio Registered broker-dealer providing
investment management and
administrative services
**Nationwide Agency, Inc. Ohio Insurance Agency
Nationwide Agribusiness Insurance Iowa Provides property & casualty insurance
Company primarily to agricultural business
Nationwide Arena, LLC Ohio A limited liability company related to
arena development
*Nationwide Asset Allocation Trust Ohio Diversified open-end investment company
Nationwide Assurance Company Wisconsin Underwrites non-standard automobile
and motorcycle insurance
Nationwide Cash Management Company Ohio Investment Securities Agent
</TABLE>
<PAGE> 107
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Corporation Ohio Holding company for entities
affiliated with Nationwide Mutual
Insurance Company
Nationwide Exclusive Distribution Ohio A limited liability company providing
Company, LLC agency support services to Nationwide
exclusive agents
Nationwide Financial Assignment Company Ohio An assignment company to administer
structured settlement business
Nationwide Financial Institution Delaware Insurance Agency
Distributors Agency, Inc.
Nationwide Financial Institution New Mexico Insurance Agency
Distributors Agency, Inc. of New Mexico
Nationwide Financial Institution Massachusetts Insurance Agency
Distributors Agency, Inc. of
Massachusetts
Nationwide Financial Services Bermuda Long-term insurer which issued
(Bermuda) Ltd. variable annuity and variable life
products to persons outside the U.S. &
Bermuda
Nationwide Financial Services Capital Delaware Trust which issues and sells
Trust securities & uses proceeds to acquire
debentures
Nationwide Financial Services Capital Delaware Trust which issues and sells
Trust II securities & uses proceeds to acquire
debentures
Nationwide Financial Services, Inc. Delaware Holding Company for entities
associated with Nationwide Mutual
Insurance Company
Nationwide Foundation Ohio Not-for profit corporation
Nationwide General Insurance Company Ohio Primarily provides automobile and fire
insurance to select customers
Nationwide Global Finance, LLC Ohio Act as a support company for
Nationwide Global Holdings, Inc. & its
international capitalization efforts
Nationwide Global Funds Cayman Islands Exempted company with limited
liability for purpose of issuing
investment shares to segregated asset
accounts of Nationwide Financial
Services (Bermuda) Ltd. and to
non-U.S. resident investors
Nationwide Global Holdings, Inc. Ohio Holding Company for Nationwide
Insurance Enterprise international
operations
Nationwide Global Holdings, Inc.-NGH Grand Duchy of Analyze European market of life
Luxembourg Branch Luxembourg insurance
</TABLE>
<PAGE> 108
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Global Holdings-Hong Kong, Hong Kong Primarily a holding company for
Limited Nationwide Global Holdings, Inc. Asian
operations
Nationwide Global Holdings-NGH Brasil Brazil Holding company
Participacoes LTDA
Nationwide Health Plans, Inc. Ohio Health insuring organization
Nationwide Home Mortgage Company Iowa Mortgage lendor
*Nationwide Indemnity Company Ohio Reinsurance company assuming business
from Nationwide Mutual Insurance
Company and other insurers within the
Nationwide Insurance Enterprise
Nationwide Insurance Company of America Wisconsin Independent agency personal lines
underwriter of property & casualty
insurance
Nationwide Insurance Company of Florida Ohio Transacts general insurance business
except life insurance
Nationwide Insurance Golf Charities, Ohio Not-for-profit corporation
Inc.
Nationwide International Underwriters California Special risks, excess & surplus lines
underwriting manager
Nationwide Investing Foundation Michigan Provide investors with continuous
source of investment under management
of trustees
*Nationwide Investing Foundation II Massachusetts Diversified, open-end investment
company
Nationwide Investment Services Oklahoma Registered broker-dealer
Corporation
Nationwide Investors Services, Inc. Ohio Stock Transfer Agent
**Nationwide Life and Annuity Ohio Life Insurance Company
Insurance Company
**Nationwide Life Insurance Company Ohio Life Insurance Company
Nationwide Lloyds Texas Commercial property insurance in Texas
Nationwide Management Systems, Inc. Ohio Preferred provider organization,
products and related services
Nationwide Mutual Fire Insurance Ohio Mutual Insurance Company
Company
*Nationwide Mutual Funds Ohio Diversified, open-end investment
company
Nationwide Mutual Insurance Company Ohio Mutual Insurance Company
</TABLE>
<PAGE> 109
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Properties, Ltd. Ohio Develop, own and operate real estate
and real estate investments
Nationwide Property and Casualty Ohio Insurance Company
Insurance Company
Nationwide Realty Investors, Inc. Ohio Develop, own and operate real estate
and real estate investments
Nationwide Retirement Solutions, Inc. Delaware Market and administer deferred
compensation plans for public employees
Nationwide Retirement Solutions, Inc. Alabama Market and administer deferred
of Alabama compensation plans for public employees
Nationwide Retirement Solutions, Inc. Arizona Market and administer deferred
of Arizona compensation plans for public employees
Nationwide Retirement Solutions, Inc. Arkansas Market and administer deferred
of Arkansas compensation plans for public employees
Nationwide Retirement Solutions, Inc. Montana Market and administer deferred
of Montana compensation plans for public employees
Nationwide Retirement Solutions, Inc. Nevada Market and administer deferred
of Nevada compensation plans for public employees
Nationwide Retirement Solutions, Inc. New Mexico Market and administer deferred
of New Mexico compensation plans for public employees
Nationwide Retirement Solutions, Inc. Ohio Market variable annuity contracts to
of Ohio members of the National Education
Association in the state of Ohio
Nationwide Retirement Solutions, Inc. Oklahoma Market variable annuity contracts to
of Oklahoma members of the National Education
Association in the state of Oklahoma
Nationwide Retirement Solutions, Inc. South Dakota Market and administer deferred
of South Dakota compensation plans for public employees
Nationwide Retirement Solutions, Inc. Texas Market and administer deferred
of Texas compensation plans for public employees
Nationwide Retirement Solutions, Inc. Wyoming Market variable annuity contracts to
of Wyoming members of the National Education
Association in the state of Wyoming
</TABLE>
<PAGE> 110
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
Nationwide Retirement Solutions Massachusetts Market and administer deferred
Insurance Agency Inc. compensation plans for public employees
Nationwide Seguradora S.A. Brazil Engage in elementary, health & life
insurance; private open pension and
wealth concession plans
*Nationwide Separate Account Trust Massachusetts Diversified, open-end investment
company
Nationwide Services Company, LLC. Ohio Single member limited liability
company performing shared services
functions for the Nationwide Insurance
Enterprise
Nationwide Trust Company, FSB United States Federal savings bank chartered by the
Office of Thrift Supervision in U.S.
Department of Treasury to exercise
custody & fiduciary powers
Neckura Holding Company Germany Administrative services for Neckura
Insurance Group
Neckura Insurance Company Germany Insurance Company
Neckura Life Insurance Company Germany Life and health insurance company
Nevada Independent Nevada Workers' compensation administrative
Companies-Construction services to Nevada employers in the
construction industry
Nevada Independent Companies-Health Nevada Workers' compensation administrative
and Nonprofit services to Nevada employers in health
& nonprofit industries
Nevada Independent Companies- Nevada Workers' compensation administrative
Hospitality and Entertainment services to Nevada employers in the
hospitality & entertainment industries
Nevada Independent Companies- Nevada Workers' compensation administrative
Manufacturing, Transportation and services to Nevada employers in the
Distribution manufacturing, transportation and
distribution industries
NFS Distributors, Inc. Delaware Holding company for Nationwide
Financial Services, Inc. distribution
companies
NGH Luxembourg, S.A Luxembourg Acts primarily as holding company for
Nationwide Global Holdings, Inc.
European operations
NGH Netherlands, B.V. The Netherlands Holding company for other overseas
companies
</TABLE>
<PAGE> 111
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING PRINCIPAL BUSINESS
ORGANIZATION SECURITIES
(SEE ATTACHED
CHART UNLESS
OTHERWISE
INDICATED)
<S> <C> <C> <C>
NGH UK, Ltd. United Kingdom Assist Nationwide Global Holdings,
Inc. with European operations and
marketing
Northpointe Capital LLC Delaware Limited liability company for
investments
PanEuroLife Luxembourg Life Insurance company providing
individual life insurance primarily in
the UK, Belgium and France
Pension Associates, Inc. Wisconsin Pension plan administration and record
keeping services
Portland Investment Services, Inc. Oregon NASD registered broker-dealer
Premier Agency, Inc. Iowa Insurance Agency
Riverview Agency, Inc. Texas Has a pending application to become a
licensed insurance agency with the
Texas Department of Insurance
Scottsdale Indemnity Company Ohio Insurance Company
Scottsdale Insurance Company Ohio Insurance Company
Scottsdale Surplus Lines Insurance Arizona Provides excess and surplus lines
Company insurance coverage on a non-admitted
basis
SVM Sales GmbH, Neckura Insurance Group Germany Recruits and supervises external sales
partners who obtain new business for
the Neckura Group as well as to offer
financial services
Union Bond & Trust Company Oregon Oregon state bank with trust powers
Villanova Capital, Inc. Delaware Holding Company
Villanova Mutual Fund Capital Trust Delaware Trust designed to act as a registered
investment advisor
Villanova SA Capital Trust Delaware Trust designed to act as a registered
investment advisor
Western Heritage Insurance Company Arizona Underwrites excess and surplus lines
of property and casualty insurance
</TABLE>
<PAGE> 112
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING SECURITIES PRINCIPAL BUSINESS
ORGANIZATION (SEE ATTACHED CHART)
UNLESS OTHERWISE INDICATED
<S> <C> <C> <C>
* MFS Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* NACo Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide DC Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
Nationwide DCVA-II Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Separate Account No. 1 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Multi-Flex Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide VA Separate Account-A Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide VA Separate Account-B Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide VA Separate Account-C Ohio Nationwide Life and Annuity Issuer of Annuity Contracts
Separate Account
* Nationwide Variable Account Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-II Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-3 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-4 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-5 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-6 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Fidelity Advisor Variable Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account Account
* Nationwide Variable Account-8 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-9 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
* Nationwide Variable Account-10 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
Nationwide Variable Account-11 Ohio Nationwide Life Separate Issuer of Annuity Contracts
Account
</TABLE>
<PAGE> 113
<TABLE>
<CAPTION>
COMPANY STATE/COUNTRY OF NO. VOTING SECURITIES PRINCIPAL BUSINESS
ORGANIZATION (SEE ATTACHED CHART)
UNLESS OTHERWISE INDICATED
<S> <C> <C> <C>
* Nationwide VL Separate Account-A Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
Nationwide VL Separate Account-B Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
* Nationwide VL Separate Account-C Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
* Nationwide VL Separate Account -D Ohio Nationwide Life and Annuity Issuer of Life Insurance
Separate Account Policies
* Nationwide VLI Separate Account Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
* Nationwide VLI Separate Account-2 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
* Nationwide VLI Separate Account-3 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
* Nationwide VLI Separate Account-4 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
Nationwide VLI Separate Account-5 Ohio Nationwide Life Separate Issuer of Life Insurance
Account Policies
</TABLE>
<PAGE> 114
<TABLE>
<CAPTION>
(left side)
<S> <C> <C> <C>
- ------------------------
| NATIONWIDE INSURANCE |
| GOLF CHARITIES, INC. |
| |
| MEMBERSHIP |
| NONPROFIT |
| CORPORATION |
- ------------------------
-------------------------------------------------------------------------------------------------------------------------
| |
- --------------------------- --------------------------- ----------------------------
| ALLIED GROUP | | ALLIED | | |
| MERCHANT BANKING | | GROUP, INC. | | |
| CORPORATION | | (AGI) | | NATIONWIDE LLOYDS |
| | | | | |
|Common Stock: 10,000 | |-------|Common Stock: 850 Shares |---| | |
|------------ Shares | | |------------ | | | A TEXAS LLOYDS |================================
| | | | | | | |
| Cost | | | Cost | | | |
| ---- | | | ---- | | | |
|Casualty- | | |Casualty- | | | |
|100% $150,055 | | |100% $243,344,521 | | | |
- --------------------------- | --------------------------- | ----------------------------
| |
- --------------------------- | --------------------------- | ----------------------------
| NATIONWIDE INSURANCE | | | AMCO | | | DEPOSITORS |
| COMPANY OF AMERICA | | | INSURANCE COMPANY | | | INSURANCE COMPANY |
| | | | (AMCO) | | | (DEPOSITORS) |
|Common Stock: 12,000 | | |Common Stock: 500,000 | | |Common Stock: 300,000 |
|------------ Shares | | |------------ Shares | | |------------ Shares |
| |---| | |---|---| |
| Cost | | | Cost | | | Cost |
| ---- | | | ---- | | | ---- |
| | | | | | | |
|AGI-100% $215,273,000 | | |AGI-100% $147,425,540| | |AGI 100% $22,251,842 |
- --------------------------- | --------------------------- | ----------------------------
| | |
- --------------------------- | --------------------------- | ----------------------------
| AID FINANCE | | | ALLIED | | | ALLIED PROPERTY |
| SERVICES, INC. | | | GENERAL AGENCY | | | AND CASUALTY |
| (AID FINANCE) | | | COMPANY | | | INSURANCE COMPANY |
|Common Stock: 10,000 | | |Common Stock: 5,000 | | |Common Stock: 300,000 |
|------------ Shares | | |------------ Shares | | |------------ Shares |
| |---| | | |---| |
| Cost | | Cost | | | Cost |
| ---- | | ---- | | | ---- |
|AGI-100% $19,545,634| |AMCO-100% $135,342 | | |AGI-100% $47,018,643 |
- --------------------------- --------------------------- | ----------------------------
| |
- --------------------------- --------------------------- | ----------------------------
| ALLIED | | MIDWEST | | | NATIONWIDE |
| GROUP INSURANCE | | PRINTING SERVICES, | | | HOME MORTGAGE |
| MARKETING COMPANY | | LTD. | | | COMPANY (NHMC) |
| | |Common Stock: 10,000 | | | |
|Common Stock: 20,000 | |------------ Shares | | |Common Stock: 54,348 |
|------------ Shares | | |---|---|------------ Shares |
| | | | | | |
| | | | | | |
| | | | | | |
| Cost | | Cost | | | |
| ---- | | ---- | | | |
| Aid | |AGI-100% $610,000 | | |AGI-80% |
| Finance-100% $16,059,469| --------------------------- | ----------------------------
- -------------------------- | |
--------------------------- | ----------------------------
| PREMIER | | | AGMC |
| AGENCY, | | | REINSURANCE, LTD. |
| INC. | | | |
|Common Stock: 100,000 | | |Common Stock: 11,000 |
|------------ Shares | | |------------ Shares |
| |---| | |
| Cost | | Cost |
| ---- | | ---- |
|AGI-100% $100,000 | |NHMC-100% $11,000 |
--------------------------- ----------------------------
</TABLE>
<PAGE> 115
<TABLE>
<CAPTION>
NATIONWIDE(R) (middle)
<S> <C> <C>
------------------------------------------ ------------------------------------------
| | | |
| NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL |
| INSURANCE COMPANY |==============================================| FIRE INSURANCE COMPANY |
| (CASUALTY) | | (FIRE) |
| | | |
------------------------------------------ ------------------------------------------
| || | |
- --| || |--------------------------------------------------------------------| |-----------------------
|| |
|| |--------------------------------------------------------------|-------------------
|| | |
|| -------------------------------- | -------------------------------- -----------------------------------
|| | FARMLAND MUTUAL | | | NATIONWIDE GENERAL | | NECKURA HOLDING |
|| | INSURANCE COMPANY | | | INSURANCE COMPANY | | COMPANY (NECKURA) |
|| |Guaranty Fund | | | | | |
=====||==|------------ |---| | |Common Stock: 20,000 | |Common Stock: 10,000 |
|Certificate | | |---|------------ Shares | |--|------------ Shares |
|----------- | | | | | | | |
| Cost | | | | Cost | | | Cost |
| ---- | | | | ---- | | | ---- |
|Casualty $500,000 | | | |Casualty-100% $5,944,422 | | |Casualty-100% $142,943,140 |
-------------------------------- | | -------------------------------- | --------------------------------
| | |
-------------------------------- | | -------------------------------- | --------------------------------
| F & B, INC. | | | | NATIONWIDE PROPERTY | | | NECKURA |
| | | | | AND CASUALTY | | | INSURANCE COMPANY |
|Common Stock: 1 Share | | | | INSURANCE COMPANY | | | |
|------------ | | | |Common Stock: 60,000 | |--|Common Stock: 6,000 |
| |---| |---|------------ Shares | | |------------ Shares |
| Cost | | | | | | | |
| ---- | | | | Cost | | | Cost |
|Farmland | | | | ---- | | | ---- |
|Mutual-100% $10 | | | |Casualty-100% $6,000,000 | | |Neckura-100% DM 6,000,000 |
-------------------------------- | | -------------------------------- | --------------------------------
| | |
-------------------------------- | | -------------------------------- | --------------------------------
| COOPERATIVE SERVICE | | | | NATIONWIDE ASSURANCE | | | NECKURA LIFE |
| COMPANY | | | | COMPANY | | | INSURANCE COMPANY |
|Common Stock: 600 Shares | | | | | | | |
|------------ |---- |---|Common Stock: 1,750 | |--|Common Stock: 4,000 |
| | | |------------ Shares | | |------------ Shares |
| Cost | | | | |
| ---- | | | Cost | | | Cost |
|Farmland | | | ---- | | | ---- |
|Mutual-100% $3,506,173 | | |Casualty-100% $41,750,000 | | |Neckura-100% DM 15,825,681|
-------------------------------- | -------------------------------- | --------------------------------
| |
-------------------------------- | -------------------------------- | --------------------------------
| SCOTTSDALE | | | NATIONWIDE AGRIBUSINESS | | | COLUMBUS INSURANCE |
| INSURANCE COMPANY | | | INSURANCE COMPANY | | | BROKERAGE AND SERVICE |
| (SIC) | | | | | | GmbH |
|Common Stock: 30,136 | | |Common Stock: 1,000,000 | | |Common Stock: 1 Share |
|---|------------ Shares |--------|---|------------ Shares | |--|------------ |
| | | | | | | | |
| | | | | Cost | | | Cost |
| | Cost | | | ---- | | | ---- |
| | ---- | | |Casualty-99.9% $26,714,335 | | |Neckura-100% DM 51,639 |
| |Casualty-100% $150,000,500 | | |Other Capital | | | |
| | | | |------------- | | | |
| | | | |Casualty-Ptd. $713,576 | | | |
| -------------------------------- | ------------------------------- | --------------------------------
| | |
| -------------------------------- | -------------------------------- | --------------------------------
| | SCOTTSDALE | | | NATIONAL CASUALTY | | | LEBEN DIREKT |
| | SURPLUS LINES | | | COMPANY | | | INSURANCE COMPANY |
| | INSURANCE COMPANY | | | (NC) | | | |
| |Common Stock: 10,000 | | | Common Stock: 100 Shares | | |Common Stock: 4,000 Shares |
|---|------------ Shares | ----| ------------- | |--|------------ |
| | | | | | | |
| | Cost | | Cost | | | Cost |
| | ---- | | ---- | | | ---- |
| |SIC-100% $6,000,000 | |Casualty-100% $67,442,439 | | |Neckura-100% DM 4,000,000 |
| | | | | | | |
| -------------------------------- -------------------------------- | --------------------------------
| | |
| -------------------------------- -------------------------------- | --------------------------------
| | NATIONAL PREMIUM & | | NCC OF AMERICAN, LTD. | | | AUTO DIREKT |
| | BENEFIT ADMINISTRATION | | (INACTIVE) | | | INSURANCE COMPANY |
| | COMPANY | | | | | |
| |Common Stock: 10,000 | | | | |Common Stock: 1500 Shares |
|---|------------ Shares | | | |--|------------ |
| | | | | | | |
| | Cost | | | | | Cost |
| | ---- | | | | | ---- |
| |SIC-100% $10,000 | |NC-100% | | |Neckura-100% DM 1,643,149 |
| -------------------------------- -------------------------------- | --------------------------------
| |
| -------------------------------- -------------------------------- | --------------------------------
| | WESTERN . | | SUN DIRECT | | | SVM SALES |
| | HERITAGE INSURANCE | | VERSICHERUNGS - | | | GmbH |
| | COMPANY | | AKTIENGESCLISCHAFT | | | |
| |Common Stock: 4,776,076 | |Common Stock: 1 Share | | |Common Stock: 50 Shares |
|---|------------ Shares | |------------ |------------| |
| | | | | |
| Cost | | Cost | | Cost |
| ---- | | ---- | | ---- |
|SIC-100% $57,000,000 | |Neckura-100% $9,600,000 | |Neckura-100% DM 50,000 |
| | | EURO | | |
-------------------------------- -------------------------------- --------------------------------
</TABLE>
<PAGE> 116
<TABLE>
<CAPTION>
(right side)
<S> <C> <C> <C>
------------------------
| NATIONWIDE |
| FOUNDATION |
| |
| MEMBERSHIP |
| NONPROFIT |
| CORPORATION |
------------------------
- ---------------------------------------------------------------------------------------------------------------------|
|
- --------------------------------------------------------------------------------------------------------------- |
| | | |
| | | |
-------------------------------- -------------------------------- | -------------------------------------
| SCOTTSDALE | | NATIONWIDE | | | NATIONWIDE |
| INDEMNITY COMPANY | | COMMUNITY URBAN | | | CORPORATION |
| | | REDEVELOPMENT | | | |
| | | CORPORATION | | |Common Stock: Control: |
|Common Stock: 50,000 | |Common Stock: 10 Shares | | |------------ ------- |
|-----|------------ Shares | |----|------------ | | |$13,642,432 100% |
| | | | | Cost | | | Shares Cost |
| | Cost | | | ---- | | | ------ ---- |
| | ---- | | |Casualty-100% $1,000 | | |Casualty 12,992,922 $1,008,497,908 |
| |Casualty-100% $8,800,000 | | | | | |Fire 649,510 36,862,514 |
| | | | | | | | (See Page 2) |
| -------------------------------- | -------------------------------- | -------------------------------------
| | |
| -------------------------------- | -------------------------------- | -------------------------------------
| | NATIONWIDE | | | NATIONWIDE CASH | | | ALLNATIONS, INC. |
| | INDEMNITY COMPANY | | | MANAGEMENT COMPANY | | |Common Stock: 12,167 Shares |
| | | | | | | |------------- Cost |
|-----|Common Stock: 28,000 | |----|Common Stock: 100 Shares | |-----| ---- |
| |------------ Shares | | |------------ | | |Casualty-18.6% $90,630 |
| | | | | Cost | | |Fire-18.6% $90,722 |
| | Cost | | | ---- | | |Preferred Stock 1,466 Shares |
| | ---- | | |Casualty-100% $11,226 | | |--------------- Cost |
| |Casualty-100% $594,529,000 | | | | | | ---- |
| | | | | | | |Casualty-6.8% $100,000 |
| | | | | | | |Fire-6.8% $100,000 |
| -------------------------------- | -------------------------------- | -------------------------------------
| | |
| -------------------------------- | -------------------------------- | -------------------------------------
| | LONE STAR | | | NATIONWIDE INSURANCE | | | CALFARM INSURANCE |
| | GENERAL AGENCY, INC. | | | COMPANY OF FLORIDA | | | COMPANY |
| | | | | | | |Common Stock: 49,800 Shares |
------|Common Stock: 1,000 | |----|Common Stock: 10,000 Shares| |-----|------------- |
| |------------ Shares | | |------------ | | |
| | | | | Cost | | |
| | Cost | | | ---- | | |
| | ---- | | |Casualty-100% $300,000,000 | |Casualty-100% |
| |Casualty-100% $5,000,000 | | | | | |
| -------------------------------- | -------------------------------- -------------------------------------
| || | |
| -------------------------------- | -------------------------------- -------------------------------------
| | COLONIAL COUNTY | | | NATIONWIDE INTERNATIONAL | | CALFARM INSURANCE |
| | MUTUAL INSURANCE | | | UNDERWRITERS | | AGENCY |
| | COMPANY | | |Common Stock: 1,000 Shares | | |
| | | |----|------------ | | |
| | | | | | | |
| | | | | Cost | |Common Stock: 1,000 shares |
| |Surplus Debentures: | | | ---- | |------------- |
| |------------------- | | |Casualty-100% $10,000 | | |
| | Cost | | -------------------------------- | |
| | ---- | | | |
| |Colonial $500,000 | | -------------------------------- |CalFarm Insurance |
| |Lone Star 150,000 | | | NATIONWIDE | |Company - 100% |
| -------------------------------- | | ARENA LLC | -------------------------------------
| | | | |
| -------------------------------- | | | -------------------------------------
| | NATIONWIDE SERVICES | | | | | CAL-AG INSURANCE |
| | COMPANY, LLC | | | | | SERVICES |
| | | | | | | |
| |Single Member Limited | |....| | |Common Stock: 1,000 Shares |
|.....|Liability Company | | | | |------------ |
| | | | | | | |
| | | | |Casualty-90% | |CalFarm Insurance |
| |Casualty-100% | | | | |Agency-100% |
| | | | -------------------------------- -------------------------------------
| -------------------------------- |
| | --------------------------------
| | | NATIONWIDE |
| -------------------------------- | | EXCLUSIVE DISTRIBUTION |
| | AMERICAN MARINE | | | COMPANY, LLC (NEDCO) |
| | UNDERWRITERS, INC. | | | |
| | | | | Single Member Limited |
| |Common Stock: 20 Shares | |....| Liability Compnany |
|-----|------------ | | | |
| | Cost | | | |
| | ---- | | |Casualty-100% |
| |Casualty-100% $5,020 | | | |
| | | | --------------------------------
| -------------------------------- | |
| | --------------------------------
| --------------------------------- | | INSURANCE |
| | eNATIONWIDE, LLC | | | INTERMEDIARIES, INC |
| | | | | |
| | Single Member Limited | | |Common Stock 1,615 Shares |
| | Liability Company | |----|------------ |
| | | | Cost |
|.....| | | ---- |
| | |Casualty-100% $1,615,000 |
| | | |
|Casualty-100% | --------------------------------
| |
---------------------------------
Subsidiary Companies -- Solid Line
Contractual Association -- Double Line
Limited Liability Company -- Dotted Line
December 31, 1999
</TABLE>
Page 1
<PAGE> 117
<TABLE>
<CAPTION>
(Left Side)
<S> <C> <C> <C> <C> <C> <C>
|----------------------------------|-----------------------------------|-----------------------------
| | |
----------------------------- ----------------------------- -----------------------------
| NATIONWIDE LIFE INSURANCE | | NATIONWIDE | | NATIONWIDE TRUST |
| COMPANY (NW LIFE) | | FINANCIAL SERVICES | | COMPANY, FSB |
| | | CAPITAL TRUST | | Common Stock: 2,800,000 |
| Common Stock: 3,814,779 | | Preferred Stock: | | ------------ Shares |
| ------------ Shares | | --------------- | | Cost |
| | | | | ---- |
| NFS--100% | | NFS--100% | | NFS--100% $3,000,000 |
----------------|------------ ----------------------------- -----------------------------
|
| ||--------------------------
- ----------------------------- | ----------------------------- -----------------------------
| NATIONWIDE LIFE AND | | | NATIONWIDE | | NATIONWIDE FINANCIAL |
| ANNUITY INSURANCE COMPANY | | | ADVISORY SERVICES, INC | | INSTITUTION DISTRIBUTORS |
| | | | (NW ADV. SERV.) | | AGENCY, INC. (NFIDAI) |
| Common Stock: 66,000 | | | Common Stock: 7,676 | | |
| ------------ Shares |--|--| ------------ Shares |==== | |
| | | | | || | |
| Cost | | | Cost | || | Common Stock: 1,000 Shares|
| ---- | | | ---- | || | ------------ |
| NW Life-100% $58,070,003 | | | NW Life-100% $5,996,261 | || | NFSDI-100% |
- ----------------------------- | ----------------------------- || --------------|--||----------
| || | ||
- ----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| NATIONWIDE INVESTMENT | | | NATIONWIDE MUTUAL | || | FINANCIAL HORIZONS | | || | |
| SERVICES CORPORATION | | | FUNDS | || | DISTRIBUTORS AGENCY | | || | |
| | | | | || | OF ALABAMA, INC. | | || | |
| Common Stock: 5,000 | | | OHIO BUSINESS TRUST | || | | | || | FLORIDA |
| ------------ Shares | | | | || | Common Stock: 10,000 | | || | RECORDS |===
| |--| | |==|| | ------------ Shares |-- || | ADMINISTRATOR |
| | | | | || | | | || | |
| Cost | | | | || | Cost | | || | |
| ---- | | | | || | ---- | | || | |
| NW Life-100% $529,728 | | | | || | NFIDAI-100% $100 | | || | |
- ----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| || | ||
- ----------------------------- | ----------------------------- || ------------------------------| || -----------------------
| NATIONWIDE FINANCIAL | | | NATIONWIDE | || | LANDMARK FINANCIAL | | || | |
| ASSIGNMENT | | | SEPARATE ACCOUNT | || | SERVICES OF | | || | |
| COMPANY | | | TRUST | || | NEW YORK, INC. | | || | |
| | | | | || | | | || | |
| | | | | || | Common Stock: 10,000 | | || | FINANCIAL HORIZONS |
| |--| | MASSACHUSETTS |==|| | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY |
| | | | BUSINESS TRUST | || | | | || | OF OHIO, INC. |
| | | | | || | Cost | | || | |
| | | | | || | ---- | | || | |
| NW Life-100% | | | | || | NFIDAI-100% $10,100 | | || | |
- ----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| || | ||
- ----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| NATIONWIDE REALTY | | | NATIONWIDE | || | FINANCIAL HORIZONS | | || | |
| INVESTORS, LTD. | | | GLOBAL FUND | || | SECURITIES CORP. | | || | |
| | | | | || | | | || | |
| Units: | | | CAYMAN ISLANDS | || | Common Stock: 10,000 | | || | FINANCIAL HORIZONS |
| ------ |--| | EXEMPTED LLC |==|| | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY |
| | | | | || | | | || | OF OKLAHOMA, INC |
| | | | | || | Cost | | || | |
| NW Life-90% | | | | || | ---- | | || | |
| NW Mutual-10% | | | | || | NFIDAI-100% $153,000 | | || | |
- ----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| || | ||
- ----------------------------- | ----------------------------- || ----------------------------- | || -----------------------
| NATIONWIDE | | | NATIONWIDE | || | AFFILIATE AGENCY, INC. | | || | |
| PROPERTIES, LTD. | | | ASSET ALLOCATION TRUST | || | | | || | |
| | | | | || | | | || | |
| Units: |--| | | || | Common Stock: 100 | | || | FINANCIAL HORIZONS |
| ------ | | OHIO BUSINESS TRUST |==== | ------------ Shares |-- ||==| DISTRIBUTORS AGENCY |
| | | | | | | || | OF TEXAS, INC |
| | | | | Cost | | || | |
| NW Life-97.6% | | | | ---- | | || | |
| NW Mutual-2.4% | | | | NFIDAI-100% $100 | | || | |
- ----------------------------- ----------------------------- ----------------------------- | || -----------------------
| ||
----------------------------- | || -----------------------
| NATIONWIDE FINANCIAL | | || | |
| INSTITUTION DISTRIBUTORS | | || | |
| INS. AGENCY, INC. | | || | |
| OF MASS. | | || | AFFILIATE |
| |-- ====| AGENCY OF |
|Common Stock: 100 Shares | | | OHIO, INC |
|------------ | | | |
| | | | |
|NFIDAI-100% | | | |
----------------------------- | -----------------------
----------------------------- |
| NATIONWIDE FINANCIAL | |
| INSTITUTION DISTRIBUTORS | |
| INS. AGENCY, INC. | |
| OF NEW MEXICO |--
| |
|Common Stock: 100 Shares |
|------------ |
| |
|NFIDAI-100% |
-----------------------------
</TABLE>
<PAGE> 118
<TABLE>
<CAPTION>
(Center)
NATIONWIDE(R)
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------- --------------------------------------------------
| NATIONWIDE MUTUAL | | NATIONWIDE MUTUAL |
| INSURANCE COMPANY |================================| FIRE INSURANCE COMPANY |
| (CASUALTY) | | | (FIRE) |
- -------------------------------------------------- | --------------------------------------------------
|
-----------------------------------------
| NATIONWIDE CORPORATION (NW CORP) |
| Common Stock: Control: |
| ------------ ------- |
| 13,642,432 100% |
| Shares Cost |
| ------ ---- |
|Casualty 12,992,922 $1,008,497,908 |
|Fire 649,510 36,862,514 |
-------------------|---------------------
|--------------------------------------------------------------
---------------|-------------
| NATIONWIDE FINANCIAL |
| SERVICES, INC. (NFS) |
| |
|Common Stock: Control: |
|------------ ------- |
| |
| |
|Class A Public--100% |
|Class B NW Corp--100% |
---------------|-------------
|
- -----------|-------------------------|--------------------------|-----------------------------|----------------------|--------------
| | | | |
- -----------|------------ ------------|-------------- -----------|------------- ---------------|--------- ------------|--------------
|NFS DISTRIBUTORS, INC.| | IRVIN L. SCHWARTZ | | NATIONWIDE FINANCIAL | |VILLANOVA CAPITAL, INC.| | NATIONWIDE FINANCIAL |
| (NFSDI) | | AND ASSOCIATES, INC. | |SERVICES (BERMUDA) INC.| |Common Stock: 958,750 | | SERVICES CAPITAL |
| | |Common Stock: Control: | |Common Stock: 250,000 | |------------- Shares | | TRUST II |
| | |------------- -------- | |------------- Shares | |NFS-96% | | |
| | |Class A Other-100%| | Cost | |Preferred Stock:500,000| | |
|NFS-100% | |Class B NFS -100%| | ---- | |--------------- Shares | | |
| | | | |NFS-100% $3,500,000 | |NFS-100% | | NFS-100% |
- -----------|------------ --------------------------- ------------------------- ---------------|--------- -------------------------
| | |
- -----------|---------------------------- -----------------------------|-----------------------|
- -----------|------------ --------------|----------- ------------|------------ --------------|---------- ------------|-------------
| NATIONAL DEFERRED | | NATIONWIDE RETIREMENT | | VILLANOVA S.A. CAPITAL| | MORLEY FINANCIAL | | VILLANOVA MUTUAL FUND |
| COMPENSATION, INC. | | SOLUTIONS, INC. (NRS)| | TRUST (VSA) | |SERVICES, INC. (MORLEY)| | CAPITAL TRUST (VMF) |
| | |Common Stock: 236,494 | | | |Common Stock: 82,343 | | |
| | |------------- Shares | | | |------------ Shares | | |
| | | | | | | | | |
|NFSDI-100% | | | | | |VILLANOVA CAPITAL, INC.| | |
| | |NFSDI-100% | |DELAWARE BUSINESS TRUST| |-100% | |DELAWARE BUSINESS TRUST|
- ----------||------------ -------------------|------ ---------------------|--- ---------------------|--- -------------------------
|| | | |
|| | | -----
|| ---------------------------- | ------------------------- | ------------------------- | ------------------------
|| | NATIONWIDE RETIREMENT | | |NATIONWIDE RETIREMENT | | | NATIONWIDE | | | MORLEY & |
|| |SOLUTIONS, INC. OF ALABAMA| | | SOLUTIONS, INC. OF | | |INVESTORS SERVICES, INC.| | | ASSOCIATES, INC. |
|| | | | | NEW MEXICO | | | | | | |
|| |Common Stock: 10,000 | | | Common Stock: 1,000 | | | Common Stock: 5 Shares | | | Common Stock: 3,500 |
|| |------------- Shares |--|--| ------------- Shares | |--|------------- | |--| ------------- Shares |
============ | Cost | | | Cost | | | Cost | | | Cost |
| ---- | | | ---- | | | ---- | | | ---- |
|NRS-100% $1,000 | | |NRS-100% $1,000 | | |VSA-100% $5,000 | | |Morley-100% $1,000|
---------------------------- | -------------------------- | -------------------------- | ------------------------
| | |
---------------------------- | -------------------------- | -------------------------- | -----------------------
| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | | VILLANOVA VALUE | | | EXCALIBER FUNDING |
|SOLUTIONS, INC. OF ARIZONA| | | SOLUTIONS, INC. OF | | | INVESTOR, LLC | | | CORPORATION |
| | | | SO. DAKOTA | | | | | | |
|Common Stock: 1,000 | | |Common Stock: 1,000 | | | | | |Common Stock: 1,000 |
|------------- Shares |--|--|------------- Shares | ...| | |--|------------- Shares |
| Cost | | | Cost | | | | | Cost |
| ---- | | | ---- | | | | | ---- |
|NRS-100% $1,000 | | |NRS-100% $1,000 | | VSA-100% | | |Morley-100% $1,000 |
---------------------------- | -------------------------- -------------------------- | -----------------------
| |
---------------------------- | -------------------------- -------------------------- | ------------------------
| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | MORLEY CAPITAL | | | CALIBER FUNDING |
| SOLUTIONS, INC. OF | | | SOLUTIONS, INC. | | MANAGEMENT | | | CORPORATION |
| ARKANSAS | | | OF WYOMING | | | | | |
|Common Stock: 50,000 |-----|Common Stock: 500 Shares| |Common Stock: 500 Shares| | | |
|------------- Shares | | |------------- | |------------- |--|--| |
| Cost | | | Cost | | Cost | | | |
| ---- | | | ---- | | ---- | | | |
|NRS-100% $500 | | |NRS-100% $500 | |Morley-100% $5,000 | | |Morley-100% |
---------------------------- | -------------------------- -------------------------- | ------------------------
| |
---------------------------- | -------------------------- -------------------------- | ------------------------
| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | UNION BOND | | | MORLEY RESEARCH |
| SOLUTIONS, INS. | | | SOLUTIONS, INC. | | & TRUST COMPANY | | | ASSOCIATES, LTD. |
| AGENCY, INC. | | | OF OHIO | | | | | |
|Common Stock: 1,000 | | | | |Common Stock: 2,000 | | | Common Stock: 1,000 |
|------------- Shares |--|==| | |------------- Shares |--|--| ------------- Shares |
| | | | | | | | | |
| Cost | | | | | Cost | | | Cost |
| ---- | | | | | ---- | | | ---- |
|NRS-100% $1,000 | | | | | Morley-100% $50,000 | | |Morley-100% $1,000 |
---------------------------- | -------------------------- -------------------------- | ------------------------
| |
---------------------------- | -------------------------- -------------------------- |
| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT | | PORTLAND INVESTMENT | |
|SOLUTIONS, INC. OF MONTANA| | | SOLUTIONS, INC. OF | | SERVICES, INC. | |
| | | | OKLAHOMA | | | |
|Common Stock: 500 | | | | | Common Stock: 1,000 | |
|------------- Shares |--|==| | | ------------- Shares |--
| Cost | | | | | Cost |
| ---- | | | | | ---- |
|NRS-100% $500 | | | | | Morley-100% $25,000 |
---------------------------- | -------------------------- --------------------------
|
---------------------------- | --------------------------
| NATIONWIDE RETIREMENT | | | NATIONWIDE RETIREMENT|
| SOLUTIONS, INC. OF NEVADA| | | SOLUTIONS, INC. |
| | | | OF TEXAS |
|Common Stock: 1,000 |-- ==| |
|------------- Shares | | |
| Cost | | |
| ---- | | |
|NRS-100% $1,000 | | |
---------------------------- --------------------------
</TABLE>
<PAGE> 119
<TABLE>
<CAPTION>
(Right)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
| | | |
------------------------------- | ---------------------------- -----------------------------
| GATES MCDONALD | | | NATIONWIDE | | NATIONWIDE GLOBAL |
| & COMPANY (GATES) | | |HEALTH PLANS, INC. (NHP) | | HOLDINGS, INC. (NGH) |
| | | | | | |
- ------------------- --|Common Stock: 254 Shares | |--|Common Stock: 100 Shares | |Common Stock: 1 Share |
| | | |------------ | || |------------ | --|------------ |
| ---------------|-------------- | | Cost | || | Cost || | Cost |
| | | | | ---- | || | ---- || | ---- |
| | THE 401(k) COMPANIES, INC. | | |NW Corp.-100% $25,683,532 | || | || | |
| | (401(k)) | | |------------------------------ || |NW Corp.-100% $14,603,732|| |NW Corp.-100% $257,000,000|
| | | | || --------------------------- | -----------------------------
| |Common Stock: Control | | |------------------------------ || ----------------------------| -----------------------------
||--|------------- ------- | | | MEDPROSOLUTIONS, INC. | || | NATIONWIDE MANAGEMENT || | NATIONWIDE GLOBAL |
|| |Class A Other-100% | --| | |--| SYSTEMS, INC. || | HOLDINGS, INC. - |
|| |Class B NFS-100% | | | Cost | || | || | LUXEMBOURG BRANCH |
|| | | | | ---- | || |Common Stock: 100 Shares || | (BRANCH) |
|| ------------------------------ | |Gates-100% $6,700,000 | || |------------- || | |
|| | | | || | Cost ||--| |
|| | | | || | ---- || |Endowment Capital - |
|| ------------------------------ | ------------------------------- || |NHP Inc.-100% $25,149 || | $1,000,000 |
|| | 401(k) INVESTMENT | | || ----------------------------| --------------|--------------
|| | SERVICES, INC. | | |------------------------------ || ----------------------------| --------------|--------------
|| | | | | GATES MCDONALD & | || | NATIONWIDE || | NGH LUXEMBOURG S.A. |
|| |Common Stock: 1,000,000 | | | COMPANY OF NEW YORK, INC. | || | AGENCY, INC. || | (LUX SA) |
|| |------------ Shares | --| | |--| || | |
||--| | | |Common Stock: 3 Shares | | |Common Stock: 100 Shares || |Common Stock: 5894 Shares |
|| | Cost | | |------------ | | |------------ || -|------------ |
|| | ---- | | | Cost | | | Cost || || Cost |
|| |401(k)-100% $7,800 | | | ---- | | | ---- || || ---- |
|| ------------------------------ | |Gates-100% $106,947 | | |NHP Inc.-99% $116,077 || ||BRANCH.-99.98% $115,470,723|
|| | ------------------------------- | ----------------------------| |-----------------------------
|| ------------------------------ | | | |
|| | 401(k) INVESTMENT | | ------------------------------- | ----------------------------| |-----------------------------
|| | ADVISORS, INC. | | | GATES MCDONALD & | | |NATIONWIDE GLOBAL HOLDINGS|| || PAN EURO LIFE |
|| | | | | COMPANY OF NEVADA | | | -HONG KONG, LIMITED || || |
|| |Common Stock: 1,000 Shares | --| | | | || ||Common Stock: 1,300,000 |
||--|------------ | | |Common Stock: 40 Shares | | |Common Stock: 2 Shares || ||------------ Shares |
|| | Cost | | |------------ | | |------------ Cost -- -- |
|| | ---- | | | Cost | | | ---- || || Cost |
|| |401(k)-100% $1,000 | | | ---- | | |NGH-50% || || ---- |
|| ------------------------------ | |Gates-100% $93,750 | | |Casualty--50% || ||LUX SA-90% 3,817,832,685|
|| | ------------------------------- | ----------------------------| || LUF |
|| ------------------------------ | | | |-----------------------------
|| | 401(k) COMPANY | | ------------------------------- | ----------------------------| |-----------------------------
|| | | | | GATES MCDONALD | | | NGH || ||NATIONWIDE GLOBAL HOLDINGS |
|| |Common Stock: 855,000 Shares| | | HEALTH PLUS, INC. | | | NETHERLANDS B.V. || ||- NGH BRASIL PARTICIPACOES,|
|| | | --| | | | || || LTDA (NGH BRASIL) |
|| | Cost | | |Common Stock: 200 Shares | | |Common Stock: 40 Shares || || |
||--| ---- | | |------------ | | |------------ -- -- Shares Cost |
|| |401(k)-100% $1,000 | | | Cost | | | Cost || | ------ ---- |
|| ------------------------------ | | ---- | | | ---- || |LUX SA 6,164,899 R6,164,899|
|| | |Gates-100% $2,000,000 | | |NGH-100% NLG 52,500 || |NGH 1 R1 |
|| ------------------------------ | ------------------------------- | ----------------------------| --------------|--------------
|| | | | | | |
|===| | | ------------------------------- | ----------------------------| --------------|--------------
| | RIVERVIEW AGENCY, INC. | | |NEVADA INDEPENDENT COMPANIES-| | | NATIONWIDE || | NATIONWIDE |
| | | | |MANUFACTURING TRANSPORTATION | | | SERVICES SP. Z.O.O. || | SEGURADORA S.A. |
| | | | | AND DISTRIBUTION | | | || | |
| | | --| | | |Common Stock: 80 Shares || | Shares Cost |
| | | | |Common Stock: 1,000 Shares | | |------------ Cost -- | ------ ---- |
| ------------------------------ | |------------ | | | ---- || |NGH |
| | |Gates-100% | | |NGH-100% 4,000 PLN || |BRASIL 9,999,999 R9,999,999|
| ------------------------------ | ------------------------------- | --------------------------- | |LUX SA 1 R1 |
| | | | | | -----------------------------
| | PENSION ASSOCIATES, INC. | | ------------------------------- | ----------------------------| -----------------------------
| | | | | NEVADA INDEPENDENT | | | MRM INVESTMENTS, INC. || | NATIONWIDE GLOBAL |
- ----| Common Stock: 1,000 Shares | | | COMPANIES-HEALTH AND PROFIT | | | || | FINANCE, LLC |
| | --| | ---|Common Stock: 1 Share || | Single Member Limited |
| Cost | | |Common Stock: 1,000 Shares | |------------ || | Liability Company |
| ---- | | |------------ | | Cost |...| |
| NFS-100% $2,839,392 | | | | | ---- | | |
------------------------------ | |Gates-100% | |NW Corp.-100% $7,000,000 | |NGH-100% |
| ------------------------------- ---------------------------- -----------------------------
|
| -------------------------------
| | NEVADA INDEPENDENT |
| | COMPANIES-CONSTRUCTION |
--| |
| |Common Stock: 1,000 Shares |
| |------------ |
| | |
| |Gates-100% |
| -------------------------------
|
| -------------------------------
| | NEVADA INDEPENDENT |
| | COMPANIES-HOSPITALITY AND | Subsidiary Companies - Solid Line
--| ENTERTAINMENT | Contractual Association - Double Line
| | Limited Liability Company - Dotted Line
|Common Stock: 1,000 Shares |
|Gates-100% | December 31, 1999
-------------------------------
Page 2
</TABLE>
<PAGE> 120
ITEM 27. NUMBER OF CONTRACT OWNERS
The number of Contract Owners of Contracts as of February 29, 2000 was
3,840.
ITEM 28. INDEMNIFICATION
Provision is made in Nationwide's Amended and Restated Code of
Regulations and expressly authorized by the General Corporation Law of
the State of Ohio, for indemnification by the Nationwide of any person
who was or is a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether
civil, criminal, administrative or investigative by reason of the fact
that such person is or was a director, officer or employee of
Nationwide, against expenses, including attorneys' fees, judgments,
fines and amounts paid in settlement actually and reasonably incurred
by such person in connection with such action, suit or proceeding, to
the extent and under the circumstances permitted by the General
Corporation Law of the State of Ohio.
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 ("Act") may be permitted to directors, officers or persons
controlling Nationwide pursuant to the foregoing provisions, Nationwide
has been informed that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable.
ITEM 29. PRINCIPAL UNDERWRITER
(a) Nationwide Investment Services Corporation ("NISC") acts as
principal underwriter and general distributor for the Nationwide
Multi-Flex Variable Account, Nationwide Variable Account,
Nationwide Variable Account-II, Nationwide Variable Account-5,
Nationwide Variable Account-6, Nationwide Variable Account-8,
Nationwide Variable Account-9, Nationwide Variable Account-10,
Nationwide Variable Account-11, Nationwide VA Separate Account-A,
Nationwide VA Separate Account-B, Nationwide VA Separate
Account-C, Nationwide VL Separate Account-A, Nationwide VL
Separate Account-B, Nationwide VL Separate Account-C, Nationwide
VL Separate Account-D, Nationwide VLI Separate Account-2,
Nationwide VLI Separate Account-3, Nationwide VLI Separate
Account-4, Nationwide VLI Separate Account-5, Nationwide DC
Variable Account, Nationwide DCVA-II, and the NACo Variable
Account, all of which are separate investment accounts of
Nationwide or its affiliates
<PAGE> 121
(b) NISC DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
POSITIONS AND OFFICES
NAME AND BUSINESS ADDRESS WITH UNDERWRITER
<S> <C>
Joseph J. Gasper Chairman of the Board and
One Nationwide Plaza Director
Columbus, OH 43215
Dimon R. McFerson Chairman and Chief Executive
One Nationwide Plaza Officer and Director
Columbus, OH 43215
Richard A. Karas Vice Chairman and Director
One Nationwide Plaza
Columbus, OH 43215
Duane C. Meek President
One Nationwide Plaza
Columbus, OH 43215
Philip C. Gath Director
One Nationwide Plaza
Columbus, OH 43215
Susan A. Wolken Director
One Nationwide Plaza
Columbus, OH 43215
Robert A. Oakley Executive Vice President -
One Nationwide Plaza Chief Financial Officer
Columbus, OH 43215
Robert J. Woodard, Jr. Executive Vice President -
One Nationwide Plaza Chief Investment Officer
Columbus, OH 43215
Mark R. Thresher Senior Vice President and Treasurer
One Nationwide Plaza
Columbus, OH 43215
Barbara J. Shane Vice President - Compliance Officer
Two Nationwide Plaza
Columbus, OH 43215
Alan A. Todryk Vice President - Taxation
One Nationwide Plaza
Columbus, OH 43215
John F. Delaloye Assistant Secretary
One Nationwide Plaza
Columbus, OH 43215
Glenn W. Soden Assistant Secretary
One Nationwide Plaza
Columbus, OH 43215
E. Gary Berndt Assistant Treasurer
One Nationwide Plaza
Columbus, OH 43215
</TABLE>
<PAGE> 122
NISC DIRECTORS AND OFFICERS
<TABLE>
<CAPTION>
POSITIONS AND OFFICES
NAME AND BUSINESS ADDRESS WITH UNDERWRITER
<S> <C>
Duane M. Campbell Assistant Treasurer
One Nationwide Plaza
Columbus, OH 43215
Terry C. Smetzer Assistant Treasurer
One Nationwide Plaza
Columbus, OH 43215
</TABLE>
<TABLE>
<CAPTION>
(c) NAME OF NET UNDERWRITING COMPENSATION ON
PRINCIPAL DISCOUNTS AND REDEMPTION OR BROKERAGE
UNDERWRITER COMMISSIONS ANNUITIZATION COMMISSIONS COMPENSATION
<S> <C> <C> <C> <C>
Nationwide N/A N/A N/A N/A
Investment
Services
Corporation
</TABLE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
John Davis
Nationwide Life Insurance Company
One Nationwide Plaza
Columbus, OH 43215
ITEM 31. MANAGEMENT SERVICES
Not Applicable
<PAGE> 123
ITEM 32. UNDERTAKINGS
The Registrant hereby undertakes to:
(a) File a post-effective amendment to this registration statement
as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never
more than 16 months old for so long as payments under the
variable annuity contracts may be accepted;
(b) Include either (1) as part of any application to purchase a
contract offered by the prospectus, a space that an applicant
can check to request a Statement of Additional Information, or
(2) a post card or similar written communication affixed to or
included in the prospectus that the applicant can remove to
send for a Statement of Additional Information;
(c) Deliver any Statement of Additional Information and any
financial statements required to be made available under this
Form promptly upon written or oral request; and
(d) Represent that any contract offered by the prospectus and
which is issued pursuant to Section 403(b) of the Internal
Revenue Code, is issued by the Registrant in reliance upon,
and in compliance with, the Securities and Exchange
Commission's no-action letter to the American Council of Life
Insurance (publicly available November 28, 1988) which permits
withdrawal restrictions to the extent necessary to comply with
Internal Revenue Code Section 403(b)(11).
The Depositor hereby represents:
(a) That the fees and charges deducted under the contract in the
aggregate are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by
Nationwide.
<PAGE> 124
NATIONWIDE LIFE INSURANCE COMPANY
GROUP FLEXIBLE FUND RETIREMENT CONTRACTS
ISSUED THROUGH THE NATIONWIDE DC VARIABLE ACCOUNT
(Supplement Dated May 1, 2000 to Prospectus Dated May 1, 2000)
THE UNDERLYING MTUTAL FUNDS LISTED IN THIS SUPPLEMENT ARE NOT AVAILABLE FOR
CONTRACTS ISSUED ON OR AFTER MAY 1, 2000.
THIS SUPPLEMENT UPDATES CERTAIN INFORMATION CONTAINED IN THE PROSPECTUS AND
SHOULD BE KEPT FOR FUTURE REFERENCE. THIS SUPPLEMENT IS FOR USE ONLY WITH
CONTRACTS ISSUED PURSUANT TO SECTION 403(b) OF THE INTERNAL REVENUE CODE
("TAX-SHELTERED ANNUITY CONTRACTS").
1. The section entitled "SUMMARY OF CONTRACT EXPENSES" in the prospectus is
amended by including the following underlying mutual fund options available
only for Tax-Sheltered Annuity Contracts.
SUMMARY OF CONTRACT EXPENSES
PARTICIPANT TRANSACTION EXPENSES
Maximum Contingent Deferred Sales Charge.......................... 5%
(as a percentage of purchase payments)
ANNUAL CONTRACT MAINTENANCE CHARGE(1)........................................$15
VARIABLE ACCOUNT ANNUAL EXPENSES
(as a percentage of average account value)
Mortality and Expense Risk Fee....................................0.50%
Administration Charge.............................................0.45%
Total Variable Account Annual Expenses............................0.95%
UNDERLYING MUTUAL FUND ANNUAL EXPENSES(2) (as a percentage of underlying mutual
fund average net assets)
<TABLE>
<CAPTION>
Management Fees Other Total Underlying Mutual
Expenses Fund Expenses
<S> <C> <C> <C>
American Century Variable Portfolios, Inc. - American Century 0.90% 0.00% 0.90%
VP Balanced
American Century Variable Portfolios, Inc. - American Century 1.00% 0.00% 1.00%
VP Capital Appreciation
Dreyfus Socially Responsible Growth Fund, Inc. 0.75% 0.04% 0.79%
Dreyfus Stock Index Fund 0.25% 0.01% 0.26%
Fidelity VIP Equity Income Portfolio(4) 0.48% 0.08% 0.56%
Fidelity VIP Growth Portfolio(4) 0.58% 0.07% 0.65%
Fidelity VIP High Income Portfolio(3) 0.58% 0.11% 0.69%
Fidelity VIP Overseas Portfolio(4) 0.73% 0.14% 0.87%
Fidelity VIP II Asset Manager Portfolio(4) 0.53% 0.09% 0.62%
Neuberger Berman AMT Growth Portfolio 0.84% 0.08% 0.92%
Neuberger Berman AMT Limited Maturity Bond Portfolio 0.65% 0.11% 0.76%
Neuberger Berman AMT Partners Portfolio 0.80% 0.07% 0.87%
NSAT Capital Appreciation Fund 0.60% 0.14% 0.74%
NSAT Government Bond Fund 0.50% 0.15% 0.65%
NSAT Money Market Fund 0.39% 0.15% 0.54%
NSAT Total Return Fund 0.58% 0.14% 0.72%
</TABLE>
(1)The Annual Contract Maintenance Charge will also be assessed on the date that
amounts held with respect to a participant are fully withdrawn from the
contract.
(2)The underlying mutual fund expenses shown above are assessed at the
underlying mutual fund level and are not direct charges against variable
account assets or reductions from contract values. These underlying mutual
fund expenses are taken into consideration in computing each underlying
mutual fund's net asset value, which is the share price used to calculate the
variable account's unit value. None of the above underlying mutual fund
options are subject to 12b-1 fees.
(3)The Fidelity VIP High Income Portfolio may invest in lower quality debt
securities commonly referred to as junk bonds.
(4)The investment advisers for the indicated underlying mutual funds have
voluntarily agreed to reimburse a portion of the management fees and/or other
expenses resulting in a reduction of total expenses. Absent any partial
reimbursement, "Management Fees" and "Other Expenses" would have been 0.48%
and 0.09% for Fidelity VIP Equity Income Portfolio, 0.58% and 0.08% for
Fidelity VIP Growth Portfolio, 0.73% and 0.18% for Fidelity VIP Overseas
Portfolio, 0.53% and 0.10% for Fidelity VIP II Asset Manager Portfolio.
<PAGE> 125
EXAMPLE
The following chart shows the expenses (in dollars) that would be incurred under
this contract assuming a $1,000 investment, 5% annual return, and no change in
expenses. These dollar figures are illustrative only and should not be
considered a representation of past or future expenses. Actual expenses may be
greater or less than those shown below.
<TABLE>
<CAPTION>
If you surrender your Contract If you do not surrender your If you annuitize your
at the end of the applicable Contract at the end of the Contract
time period applicable time period at the end of the applicable
time period
1 Yr. 3 Yrs. 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs 5 Yrs. 10 Yrs. 1 Yr. 3 Yrs. 5 Yrs. 10 Yrs.
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
American Century Variable 70 116 168 328 20 66 118 278 20 66 118 278
Portfolios, Inc. - American
Century VP Balanced
American Century Variable 71 119 174 339 21 69 124 289 21 69 124 289
Portfolios, Inc. - American
Century VP Capital
Appreciation
Dreyfus Socially Responsible 69 113 162 316 19 63 112 266 19 63 112 266
Growth Fund, Inc.
Dreyfux Stock Index Fund 64 96 133 256 14 46 83 206 14 46 83 206
Fidelity VIP Equity Income 67 105 150 290 17 55 100 240 17 55 100 240
Portfolio
Fidelity VIP Growth Portfolio 68 108 155 300 18 58 105 250 18 58 105 250
Fidelity VIP High Income 68 109 157 305 18 59 107 255 18 59 107 255
Portfolio
Fidelity VIP Overseas 70 115 167 325 20 65 117 275 20 65 117 275
Portfolio
Fidelity VIP II Asset Manager 67 107 153 297 17 57 103 247 17 57 103 247
Portfolio
Neuberger Berman AMT Growth 71 117 169 330 21 67 119 280 21 67 119 280
Portfolio
Neuberger Berman AMT Limited 69 112 161 313 19 62 111 263 19 62 111 263
Maturity Bond Portfolio
Neuberger Berman AMT Partners 70 115 167 325 20 65 117 275 20 65 117 275
Portfolio
NSAT - Capital Appreciation 69 111 160 311 19 61 110 261 19 61 110 261
Fund
NSAT Government Bond Portfolio 68 108 155 300 18 58 105 250 18 58 105 250
NSAT- Money Market Fund 67 105 149 288 17 55 99 238 17 55 99 238
NSAT - Total Return Fund 69 110 159 308 19 60 109 258 19 60 109 258
</TABLE>
The Example should not be considered a representation of past or future
expenses. Actual expenses may be greater or lesser than those shown.
The purpose of the Summary of Contract Expenses and Example is to assist the
participant in understanding the various costs and expenses that a participant
will bear directly or indirectly when investing in the contract. The table
reflects expenses of the variable account as well as the underlying mutual fund
investment options. For a more detailed explanation of these expenses, see
"Variable Account Charges and Other Deductions" in the prospectus. In addition
to the expenses shown above, deductions for premium taxes may also be
applicable, depending upon the jurisdiction in which the contract is sold (see
"Premium Taxes" in the prospectus).
<PAGE> 126
2. The section entitled "CONDENSED FINANCIAL INFORMATION" in the prospectus is
amended by adding the following information about the underlying mutual fund
options available for Tax-Sheltered Annuity Contracts.
CONDENSED FINANCIAL INFORMATION
Accumulation unit values (for an accumulation unit outstanding throughout the
period)
<TABLE>
<CAPTION>
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE ACCUMULATION UNITS
AT BEGINNING AT END OUTSTANDING AT THE
FUND OF PERIOD OF PERIOD END OF THE PERIOD YEAR
<S> <C> <C> <C> <C>
American Century 1.731354 1.887476 13,585 1999
Variable Portfolios, 1.509759 1.731354 7,892 1998
Inc. - American 1.316124 1.509759 4,531 1997
Century VP 1.184177 1.316124 3,120 1996
Balanced 0.986992 1.184177 1,504 1995
1.000000 0.986992 0 1994
American Century 1.521919 2.480278 51,427 1999
Variable Portfolios 1.570313 1.521919 48,936 1998
Inc. - American Century 1.638699 1.570313 50,033 1997
VP Capital Appreciation 1.729155 1.638699 51,629 1996
1.331537 1.729155 50,891 1995
1.360119 1.331537 38,898 1994
1.244720 1.360119 33,128 1993
1.273681 1.244720 21,051 1992
0.906306 1.273681 10,348 1991
1.000000 0.906306 4,711 1990
Dreyfus Stock Index Fund 2.683847 3.206243 58,848 1999
2.113257 2.683847 45,862 1998
1.604580 2.113257 21,714 1997
1.322035 1.604580 16,988 1996
0.975745 1.322035 5,213 1995
1.000000 0.975745 782 1994
Dreyfus Socially 2.550734 3.286639 11,890 1999
Responsible 1.990292 2.550734 7,611 1998
Growth Fund 1.564429 1.990292 4,478 1997
1.302837 1.564429 0 1996
0.977428 1.302837 0 1995
1.000000 0.977428 0 1994
Fidelity VIP Growth 2.623533 3.571641 102,768 1999
Portfolio 1.898743 2.623533 83,821 1998
1.552351 1.898743 70,171 1997
1.366323 1.552351 52,165 1996
1.018963 1.366323 29,541 1995
1.000000 1.018963 7,026 1994
Fidelity VIP Equity 2.070586 2.180834 107,713 1999
Income Portfolio 1.872610 2.070586 104,557 1998
1.475687 1.872610 90,224 1997
1.303642 1.475687 62,324 1996
0.974175 1.303642 37,796 1995
1.000000 0.974175 5,699 1994
</TABLE>
<PAGE> 127
<TABLE>
<CAPTION>
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUEAT UNIT VALUE ACCUM. UNITS
BEGINNING AT END OUTSTANDING AT THE END
FUND OF PERIOD OF PERIOD OF THE PERIOD YEAR
<S> <C> <C> <C> <C>
Fidelity VIP High 1.478924 1.584412 20,700 1999
Income Portfolio 1.560592 1.478924 29,066 1998
1.338939 1.560592 29,112 1997
1.185437 1.338939 17,934 1996
0.992271 1.185437 10,485 1995
1.000000 0.992271 1,484 1994
Fidelity VIP Overseas 1.425217 2.013540 96,278 1999
Portfolio 1.276107 1.425217 95,628 1998
1.154842 1.276107 125,065 1997
1.029809 1.154842 88,581 1996
0.947883 1.029809 55,723 1995
1.000000 0.947883 10,984 1994
Fidelity VIP II Asset 1.712317 1.884262 33,479 1999
Manager Portfolio 1.502515 1.712317 28,824 1998
1.257222 1.502515 25,131 1997
1.107535 1.257222 18,427 1996
0.955979 1.107535 10,482 1995
1.000000 0.955979 2,037 1994
Neuberger Berman AMT 2.625747 3.911719 16,868 1999
Growth Portfolio 2.294545 2.625747 13,331 1998
1.795607 2.294545 12,306 1997
1.661013 1.795607 9,399 1996
1.272940 1.661013 24,304 1995
1.352530 1.272940 17,238 1994
1.278609 1.352530 12,520 1993
1.178398 1.278609 8,757 1992
0.917001 1.178398 4,358 1991
1.000000 0.917001 0 1990
Neuberger Berman AMT 1.235624 1.242028 10,466 1999
Limited Maturity Bond 1.194950 1.235624 9,009 1998
Portfolio 1.130160 1.194950 7,063 1997
1.093904 1.130160 5,977 1996
0.995462 1.093904 2,860 1995
1.000000 0.995462 597 1994
Neuberger Berman AMT 2.249692 2.392658 30,527 1999
Partners Portfolio 2.179432 2.249692 28,300 1998
1.676351 2.179432 13,504 1997
1.306186 1.676351 8,811 1996
0.966223 1.306186 5,923 1995
1.000000 0.966223 3,237 1994
</TABLE>
<PAGE> 128
<TABLE>
<CAPTION>
ACCUMULATION ACCUMULATION NUMBER OF
UNIT VALUE UNIT VALUE ACCUM. UNITS
AT BEGINNING AT END OUTSTANDING AT THE END
FUND OF PERIOD OF PERIOD OF THE PERIOD YEAR
<S> <C> <C> <C> <C>
NSAT Government Bond 1.890916 1.829069 11,271 1999
Fund 1.752816 1.890916 10,280 1998
1.613565 1.752816 8,433 1997
1.574158 1.613565 7,820 1996
1.338281 1.574158 5,714 1995
1.396125 1.338281 971 1994
1.286974 1.396125 632 1993
1.204500 1.286974 1,660 1992
1.041986 1.204500 527 1991
1.000000 1.041986 0 1990
NSAT Capital 2.589520 2.674758 0 1999
Appreciation Fund 2.011485 2.589520 0 1998
1.509879 2.011485 0 1997
1.208468 1.509879 0 1996
1.000000 1.208468 0 1995
NSAT Money Market Fund* 1.369307 1.422053 85,798 1999
1.313205 1.369307 55,619 1998
1.259556 1.313205 6,361 1997
1.209790 1.259556 28,915 1996
1.155984 1.209790 14,512 1995
1.123427 1.155984 2,543 1994
1.103814 1.123427 0 1993
1.077714 1.103814 0 1992
1.028111 1.077714 0 1991
1.000000 1.028111 0 1990
NSAT Total Return Fund 3.530330 3.739747 44,002 1999
3.018448 3.530330 41,809 1998
2.354356 3.018448 42,827 1997
1.950853 2.354356 19,743 1996
1.525590 1.950853 11,766 1995
1.523742 1.525590 3,996 1994
1.386859 1.523742 845 1993
1.294230 1.386859 500 1992
0.943464 1.294230 69 1991
1.000000 0.943464 0 1990
</TABLE>
* The 7 day yield for the NSAT - Nationwide Money Market Fund as of December
31, 1999 was 4.43%
<PAGE> 129
3. The section entitled "PARTICIPANT ACCOUNT MAINTENANCE CHARGE" in the
prospectus is amended by adding the following paragraph:
For Tax-Sheltered Annuity Contracts, Nationwide will make a maximum
charge of $15 per participant per year to reimburse Nationwide for certain
administrative expenses relating to the maintenance of individual
participant records and the mailing of periodic statements to participants.
The Contract Maintenance Charges, which are guaranteed never to increase,
are designed only to help Nationwide offset such administrative expenses,
and such charges will not exceed Nationwide's actual administration
expenses under the contracts.
4. The section entitled "SYNOPSIS OF THE CONTRACTS" in the prospectus is
amended by adding the following new section:
PARTICIPANT RIGHTS UNDER TAX-SHELTERED ANNUITY CONTRACTS
Participant rights under the contract are set forth in the plan, if
any, and are described more fully in the Certificate of Participation
issued to each participant by Nationwide. The Certificate describes the
rights and benefits to which the participant is entitled under the
contract. The term contract owner, as used throughout the contract, refers
to the purchaser and the holder of the contract. However, the contract
owner's rights are limited by the plan, if any, the Internal Revenue Code
and applicable regulations. Participant accounts held under the contract
shall be non-forfeitable at all times. No amounts payable under the
contract with respect to a participant may be sold, assigned, discounted,
or pledged as collateral for a loan or as a security for the performance of
an obligation or for any other purpose to any person other than Nationwide.
In addition, to the extent permitted by law, no such sum shall in any way
be subject to legal process requiring the payment of any claim against the
payee. Nationwide will accept direction only from the participant except as
otherwise specifically provided in the plan, if any. Nationwide shall be
entitled to rely on any action taken or omitted by the participant,
pursuant to the terms of the contract.
5. The section entitled "CONTRACT SUSPENSION AND TERMINATION" in the
prospectus is amended by deleting the last sentence of that section.
6. The section entitled "APPLICATION OF PURCHASE PAYMENTS" in the prospectus
is amended by adding the following paragraph at the end:
With respect to Tax-Sheltered Annuity Contracts, purchase payments for
each participant may not exceed the contract's allowable portion of the
lesser of the maximum exclusion allowance under Internal Revenue Code
Section 403(b), or the elective deferral limits set forth in Internal
Revenue Code Section 402(g), except for amounts eligible for rollover,
transfer or exchange treatment under the Internal Revenue Code. In no event
may the purchase payments exceed the limits described in Internal Revenue
Code Section 415. The amount of the purchase payments and earnings thereon
in excess of the limits set forth in Internal Revenue Code Section 402(g)
("excess deferrals") shall be returned in accordance with that section to
the participant upon written request, without application of the Contingent
Deferred Sales Charge, if any, and in accordance with the plan, if any.
Nationwide may change the required minimum annual purchase payment to any
amount which does not violate the applicable provisions of the Internal
Revenue Code.
7. The section entitled "REDEMPTION OF PARTICIPANT ACCOUNTS" in the prospectus
is amended by adding the following paragraph at the end:
<PAGE> 130
With respect to Tax-Sheltered Annuity Contracts, Section 403(b)(11) of
the Internal Revenue Code prohibits redemptions of purchase payments made
pursuant to a salary reduction agreement (within the meaning of
402(g)(3)(C) of the Internal Revenue Code) before the person reaches age 59
1/2, separates from service, dies, becomes disabled (within the meaning of
Internal Revenue Code Section 72(m)(7)), or faces a financial hardship as
defined by the plan, or, if no plan is specified, as used in Section
403(b)(11)(B) of the Internal Revenue Code and applicable regulations. This
prohibition applies to purchase payments made in years beginning after
December 31, 1988, to earnings on those purchase payments, and to earnings
on amounts held as of December 31, 1988. Hardship redemptions are limited
to the amount of purchase payments attributable to participant elective
contributions and earnings on purchase payments held as of December 31,
1988, and may be subject to a 10% tax penalty. The value of contracts
issued pursuant to Section 403(b) may be transferred to other contracts of
other carriers. However, the exchange, under Section 1035 of the Internal
Revenue Code, of a contract which had an accumulated value prior to January
1, 1989, for a new contract may subject the pre-1989 value to the limits of
Section 403(b)(11). Nationwide issues this contract in reliance upon, and
in compliance with, a Securities and Exchange Commission industry-wide
no-action letter (publicly available November 28, 1988) which permits
withdrawal restrictions to the extent necessary to comply with Section
403(b)(11).
8. The section entitled "RETIREMENT PERIOD" in the prospectus is amended by
including the following section:
REQUIRED DISTRIBUTION FOR TAX-SHELTERED ANNUITY CONTRACTS
The entire interest of a participant under a contract issued pursuant
to Internal Revenue Code Section 403(b) accruing after December 31, 1986,
will, notwithstanding anything else contained herein, be distributed to the
participant under the Optional Retirement Income Form selected over:
A. the life of the participant or the lives of the participant and the
participant's designated beneficiary; or
B. a period not extending beyond the life expectancy of the
participant or the life expectancy of the participant and the participant's
designated beneficiary.
If the participant's entire interest is to be distributed in equal or
substantially equal payments over a period described in A or B, such
payments will commence no later than the first day of April following the
calendar year in which the participant attains age 70 1/2 (the Required
Beginning Date). In the case of a governmental plan or church plan (as
defined in Internal Revenue Code Section 89(i)(4)), the Required Beginning
Date will be the later of the dates determined under the preceding sentence
or April 1 of the calendar year following the calendar year in which the
participant retires.
Payments commencing on the Required Beginning Date will not be less
than the lesser of the quotient obtained by dividing the entire interest of
the participant by the life expectancy of the participant, or the joint and
last survivor expectancy of the participant and the participant's
designated beneficiary (whichever is applicable). Life expectancy and joint
and last survivor expectancy are computed by the use of return multiples
contained in Section 1.72-9 of the Treasury Regulations.
All Optional Retirement Income Forms described in the prospectus must
comply with the minimum distribution and incidental death benefit provision
of Internal Revenue Code Section 401(a)(9) and applicable regulations.
<PAGE> 131
9. The section entitled " PARTICIPANT DEATH BEFORE RETIREMENT" in the
prospectus is deleted in its entirety and replaced with the following:
DEATH BENEFIT BEFORE RETIREMENT
If the participant dies before his or her retirement income commences,
generally the entire participant account value must be distributed within
five years after the participant's death. There are two exceptions: (1) if
payments are to be made to the participant's designated beneficiary and the
distributions begin within one year of the participant's death, payments
may be extended over the life (or a period not exceeding the life
expectancy) of the beneficiary; and (2) if the beneficiary is the surviving
spouse and the distributions begin by the time the participant would have
reached age 70 1/2, payments may be made over the life (or a period not
exceeding life expectancy) of the surviving spouse.
10. References throughout the Prospectus to the "GROUP FIXED FUND RETIREMENT
CONTRACT" are hereby changed to "GROUP FIXED TAX DEFERRED ANNUITY
CONTRACT."
11. "Appendix A: Objectives for Underlying Mutual Funds" in the prospectus is
amended in its entirety by the following underlying mutual funds. These
underlying mutual funds are available only to serve as the underlying
investment for variable annuity contracts and variable life insurance
policies issued through separate accounts of life insurance companies which
may or may not be affiliated. A full description of the underlying mutual
funds, their investment policies and restrictions, risks, charges and
expenses and all other aspects of their operation is contained in the
prospectuses of the underlying mutual funds, which should be read in
conjunction with this prospectus before investing. There can be no
assurance that funds will achieve their investment objectives.
AMERICAN CENTURY VARIABLE PORTFOLIOS, INC., A MEMBER OF THE AMERICAN
CENTURY(SM) FAMILY OF INVESTMENTS
American Century Variable Products, Inc. was organized as a Maryland
corporation in 1987. It is a diversified, open-end management investment
company, designed only to provide investment vehicles for variable annuity
and variable life insurance products of insurance companies. American
Century Variable Portfolios, Inc. is managed by American Century Investment
Management, Inc.
-AMERICAN CENTURY VP BALANCED
Investment Objective: Capital growth and current income. The Fund will
seek to achieve its objective by maintaining approximately 60% of the
assets of the Fund in common stocks (including securities convertible
into common stocks and other equity equivalents) that are considered by
management to have better-than-average prospects for appreciation and
approximately 40% in fixed income senior securities.
-AMERICAN CENTURY VP CAPITAL APPRECIATION
Investment Objective: Capital growth. The Fund will seek to achieve its
objective by investing in common stocks (including securities
convertible into common stocks and other equity equivalents) that meet
certain fundamental and technical standards of selection and have, in
the opinion of the Fund's investment manager, better than average
potential for appreciation. The Fund tries to stay fully invested in
such securities, regardless of the movement of stock prices generally.
The Fund may invest in cash and cash equivalents temporarily or when it
is unable to find common stocks meeting its criteria of selection. It
may purchase securities only of companies that have a record of at
least three years continuous operation.
DREYFUS STOCK INDEX FUND, INC.
The Dreyfus Stock Index Fund, Inc. is an open-end, non-diversified,
management investment company. It was incorporated under Maryland law on
January 24, 1989, and commenced operations
<PAGE> 132
on September 29, 1989. The Dreyfus Corporation ("Dreyfus") serves as the
Fund's manager, while Mellon Equity Associates, an affiliate of Dreyfus,
serves as the Fund's index manager.
Investment Objective: To provide investment results that correspond to
the price and yield performance of publicly traded common stocks in the
aggregate, as represented by the Standard & Poor's 500 Composite Stock
Price Index. The Fund is neither sponsored by nor affiliated with
Standard & Poor's Corporation.
THE DREYFUS SOCIALLY RESPONSIBLE GROWTH FUND, INC.
The Dreyfus Socially Responsible Growth Fund, Inc. is an open-end,
diversified, management investment company. It was incorporated under
Maryland law on July 20, 1992, and commenced operations on October 7, 1993.
The Dreyfus Corporation serves as the Fund's investment adviser and
provides day-to-day management of the Fund's portfolio.
Investment Objective: The Fund's primary goal is to provide capital
growth through equity investment in companies that, in the opinion of
the Fund's management, not only meet traditional investment standards
but which also show evidence that they conduct their business in a
manner that contributes to the enhancement of the quality of life in
America. Current income is secondary to the primary goal.
FIDELITY INVESTMENTS VARIABLE INSURANCE PRODUCTS FUND ("VIP")
The Fund is an open-end, diversified, management investment company
organized as a Massachusetts business trust on November 13, 1981. The
Fund's shares are purchased by insurance companies to fund benefits under
variable insurance and annuity policies. Fidelity Management & Research
Company ("FMR") is the Fund's manager.
-VIP EQUITY-INCOME PORTFOLIO
Investment Objective: To seek reasonable income by investing primarily
in income-producing equity securities. In choosing these securities FMR
also will consider the potential for capital appreciation. The
Portfolio's goal is to achieve a yield which exceeds the composite
yield on the securities comprising the Standard & Poor's 500 Composite
Stock Price Index.
-VIP GROWTH PORTFOLIO
Investment Objective: Seeks to achieve capital appreciation. This
Portfolio will invest in the securities of both well-known and
established companies, and smaller, less well-known companies which may
have a narrow product line or whose securities are thinly traded. These
latter securities will often involve greater risk than may be found in
ordinary investment security. FMR's analysis and expertise plays an
integral role in the selection of securities and, therefore, the
performance of the portfolio. Many securities which FMR believes would
have the greatest potential may be regarded as speculative, and
investment in the Portfolio may involve greater risk than is inherent
in other underlying mutual funds. It is also important to point out
that the Portfolio makes most sense for you if you can afford to ride
out changes in the stock market, because it invests primarily in common
stocks. FMR also can make temporary investments in securities such as
investment-grade bonds, high quality preferred stocks and short-term
notes, for defensive purposes when it believes market conditions
warrant.
-VIP HIGH INCOME PORTFOLIO
Investment Objective: Seeks to obtain a high level of current income by
investing primarily in high-risk, lower-rated, high-yielding, fixed
income securities, while also considering growth capital. The Portfolio
manager will seek high current income normally by investing the
Portfolio's assets as follows:
o at least 65% in income-producing debt securities and preferred
stocks, including convertible securities
o up to 20% in common stocks and other equity securities when
consistent with the Portfolio's primary objective or acquired as
part of a unit combining fixed-income and equity securities
<PAGE> 133
Higher yields are usually available on securities that are lower-rated
or that are unrated. Lower-rated securities are usually defined as Ba
or lower by Moody's; BB or lower by Standard & Poor's and may be deemed
to be of a speculative nature. The Portfolio may also purchase
lower-quality bonds such as those rated Ca3 by Moody's or C- by
Standard & Poor's which provide poor protection for payment of
principal and interest (commonly referred to as "junk bonds"). For a
further discussion of lower-rated securities, please see the "Risks of
Lower-Rated Debt Securities" section of the Portfolio's prospectus.
-VIP OVERSEAS PORTFOLIO
Investment Objective: To seek long term growth of capital primarily
through investments in foreign securities. The Overseas Portfolio
provides a means for investors to diversify their own portfolios by
participating in companies and economics outside of the United States.
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II ("VIP II")
The Variable Insurance Products Fund II is an open-end, diversified, management
investment company organized as a Massachusetts business trust on March 21,
1988. The Fund's shares are purchased by insurance companies to fund benefits
under variable insurance and annuity policies. Fidelity Management & Research
Company ("FMR") is the Fund's manager.
-VIP II ASSET MANAGER PORTFOLIO
Investment Objective: To seek high total return with reduced risk over
the long-term by allocating its assets among domestic and foreign
stocks, bonds and short-term fixed income instruments.
NATIONWIDE SEPARATE ACCOUNT TRUST (NSAT)
Nationwide Separate Account Trust ("NSAT") is a diversified open-end management
investment company created under the laws of Massachusetts. NSAT offers shares
in the mutual funds listed below, each with its own investment objectives.
Shares of NSAT will be sold primarily to separate accounts to fund the benefits
under variable life insurance policies and variable annuity contracts issued by
life insurance companies. The assets of NSAT are managed by Villanova Mutual
Fund Capital Trust ("VMF"), an indirect subsidiary of Nationwide Financial
Services, Inc.
-CAPITAL APPRECIATION FUND
Investment Objective: The Fund is designed for investors who are
interested in long-term growth. The Fund seeks to meet its objective
primarily through a diversified portfolio of the common stock of
companies which the investment manager determines have a
better-than-average potential for sustained capital growth over the
long term.
-GOVERNMENT BOND FUND
Investment Objective: To provide as high a level of income as is
consistent with the preservation of capital. It seeks to achieve its
objective by investing in a diversified portfolio of securities issued
or backed by the U.S. Government, its agencies or instrumentalities.
-MONEY MARKET FUND
Investment Objective: To seek as high a level of income as is
considered consistent with the preservation of capital and liquidity by
investing primarily in money market instruments.
-TOTAL RETURN FUND
Investment Objective: To obtain a reasonable long-term total return
(i.e., earnings growth plus potential dividend yield) on invested
capital from a flexible combination of current return and capital gains
through investments in common stocks, convertible issues, money market
instruments and bonds with a primary emphasis on common stocks.
<PAGE> 134
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Neuberger Berman Advisers Management Trust is an open-end diversified management
investment company established as a Massachusetts business trust on December 14,
1983. Shares of the Trust are offered in connection with a certain variable
annuity contracts and variable life insurance policies issued through life
insurance company separate accounts and are also offered directly to qualified
pension and retirement plans outside of the separate account context. The
investment adviser is Neuberger Berman Management Incorporated.
-AMT GROWTH PORTFOLIO
Investment Objective: The Portfolio seeks capital growth through
investments in common stocks of companies that the investment adviser
believes will have above average earnings or otherwise provide
investors with above average potential for capital appreciation. To
maximize this potential, the investment adviser may utilize, from time
to time, securities convertible into common stocks, warrants and
options to purchase such stocks.
-AMT LIMITED MATURITY BOND PORTFOLIO
Investment Objective: To provide the high level of current income,
consistent with low risk to principal and liquidity. As a secondary
objective, it also seeks to enhance its total return through capital
appreciation when market factors, such as falling interest rates and
rising bond prices, indicate that capital appreciation may be available
without significant risk to principal. It seeks to achieve its
objectives through investments in a diversified portfolio of limited
maturity debt securities.
-AMT PARTNERS PORTFOLIO
Investment Objective: To seek capital growth. This Portfolio will seek
to achieve its objective by investing primarily in the common stock of
established companies. Its investment program seeks securities believed
to be undervalued based on fundamentals such as low price-to-earnings
ratios, consistent cash flows, and support from asset values. The
objective of the Partners Portfolio is not fundamental and can be
changed by the Trustees of the Trust without shareholder approval.
Shareholders will, however, receive at least 30 days prior notice
thereof.
12. The section entitled "FEDERAL TAX CONSIDERATIONS" in the prospectus is
amended by adding the following paragraphs at the end:
Recent changes to the Internal Revenue Code permit the rollover of most
distributions from qualified plans to other qualified plans, Individual
Retirement Accounts, or Individual Retirement Annuities. Most distributions
from Tax Sheltered Annuities may be rolled over to other Tax Sheltered
Annuities, Individual Retirement Accounts or Individual Retirement
Annuities. Distributions which may not be rolled over are those which are:
1. one of series of substantially equal annual (or more frequent)
payments made: a) over the life (or life expectancy) of the
employee, b) the joint lives (or joint life expectancies) of the
employee and the employee's designated beneficiary, or c) for a
specified period of ten years or more; and
2. a required minimum distribution.
Any distribution eligible for rollover will be subject to federal tax
withholding at a 20 percent rate unless the distribution is transferred
directly to a Qualified Plan, Individual Retirement Account, or Individual
Retirement Annuity.
You should consult your financial or tax consultant to discuss in
detail your particular tax situation and the use of the contracts.
<PAGE> 135
INDEPENDENT AUDITORS' CONSENT
The Board of Directors of Nationwide Life Insurance Company and Contract Owners
of Nationwide DC Variable Account:
We consent to the use of our reports included herein and to the reference to our
firm under the heading "Services" in the Statement of Additional Information.
KPMG LLP
Columbus, Ohio
April 28, 2000
<PAGE> 136
SIGNATURES
As required by the Securities Act of 1933, and the Investment Company Act of
1940, the Registrant, NATIONWIDE DC VARIABLE ACCOUNT, certifies that it meets
the requirements of the Securities Act Rule 485(b) for effectiveness of the
Post-Effective Amendment - 51, and has caused this Post-Effective Amendment to
the Registration Statement to be signed on its behalf in the City of Columbus,
and State of Ohio, on this 23rd day of May, 2000.
NATIONWIDE DC VARIABLE ACCOUNT
------------------------------------------
(Registrant)
NATIONWIDE LIFE INSURANCE COMPANY
------------------------------------------
(Depositor)
By/s/ STEVEN SAVINI, ESQ.
------------------------------------------
Steven Savini, Esq.
As required by the Securities Act of 1933, this Post-Effective Amendment has
been signed by the following persons in the capacities indicated on the 23rd day
of May, 2000.
SIGNATURE TITLE
LEWIS J. ALPHIN Director
- -----------------------------------------
Lewis J. Alphin
A. I. BELL Director
- -----------------------------------------
A. I. Bell
KENNETH D. DAVIS Director
- -----------------------------------------
Kenneth D. Davis
KEITH W. ECKEL Director
- -----------------------------------------
Keith W. Eckel
WILLARD J. ENGEL Director
- -----------------------------------------
Willard J. Engel
FRED C. FINNEY Director
- -----------------------------------------
Fred C. Finney
JOSEPH J. GASPER President and Chief Operating
- -----------------------------------------
Joseph J. Gasper Officer and Director
DIMON R. MCFERSON Chairman and Chief Executive
- -----------------------------------------
Dimon R. McFerson Officer and Director
DAVID O. MILLER Chairman of the Board and
- -----------------------------------------
David O. Miller Director
YVONNE L. MONTGOMERY Director
- -----------------------------------------
Yvonne L. Montgomery
ROBERT A. OAKLEY Executive Vice President - Chief
- -----------------------------------------
Robert A. Oakley Financial Officer
RALPH M. PAIGE Director
- -----------------------------------------
Ralph M. Paige
JAMES F. PATTERSON Director
- -----------------------------------------
James F. Patterson
ARDEN L. SHISLER Director
- -----------------------------------------
Arden L. Shisler
ROBERT L. STEWART Director
- -----------------------------------------
Robert L. Stewart
NANCY C. THOMAS Director
- -----------------------------------------
Nancy C. Thomas
By /s/ STEVEN SAVINI, ESQ.
-----------------------------------
Steven Savini, Esq.
Attorney-in-Fact
