<PAGE> 1
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
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<PAGE> 2
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 CONTRACTS 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 EVERY
GOVERNMENT AGENCY 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> 3
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> 4
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> 5
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> 6
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> 7
UNDERLYING MUTUAL FUND ANNUAL EXPENSES
(AS A PERCENTAGE OF UNDERLYING MUTUAL FUND
NET ASSETS AFTER EXPENSE REIMBURSEMENT)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------
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 - 0.68% 0.00% 0.00% 0.68%
Investor 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 0.65% 0.85% 0.00% 1.50%
Company 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> 8
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. - Equity 0.60% 0.20% 0.25% 1.05%
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 0.40% 0.21% 0.00% 0.61%
Shares
- ---------------------------------------------------------------------------------------------------------------
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> 9
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> 10
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 1.00% 0.85% 0.00% 1.85%
Company 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 Service 0.95% 3.92% 0.00% 4.87%
Class (formerly, Class Y)
- ---------------------------------------------------------------------------------------------------------------------
SEI Index Funds - SEP 500 Index Portfolio 0.30% 0.41% 0.00% 0.44%
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
10
<PAGE> 11
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> 12
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 Aggressive 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 - 68 105 145 256 18 55 95 206 18 55 95 206
Class 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> 13
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>
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> 14
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> 15
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> 16
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 references to NISC shall mean Nationwide
Investment Svcs. Corporation.) NISC is a wholly owned subsidiary of Nationwide.
16
<PAGE> 17
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> 18
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> 19
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> 20
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. Day o Labor 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> 21
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> 22
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 Morley 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> 23
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> 24
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 value 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> 25
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> 26
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 beneficiary. 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> 27
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> 28
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> 29
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> 30
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> 31
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 Conservative -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> 33
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 12/31/99 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> 34
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 12/31/99 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 11.74% 18.20% 13.92% 02/01/60
Fund)
- ---------------------------------------------------------------------------------------------------------------------------------
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 Conservative 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> 35
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 12/31/99 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> 36
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> 37
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 provide 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> 38
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 provide 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> 39
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> 40
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> 41
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
primarily 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 recognized 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> 42
securities. Morgan Stanley Dean Witter Investment Management, Inc. serves as the
Portfolio's investment adviser.
NATIONWIDE(R) BOND FUND - CLASS D
The investment 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> 43
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> 44
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> 45
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> 46
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> 47
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> 48
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)
VARIABLE ACCOUNT ANNUAL EXPENSE FEE.......................................0.95%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Class 2.309709 2.731993 18.28% 0 1998
---------------- ------------------ --------------- --------------------- ------------
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> 49
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 2.935219 3.200994 9.05% 68,865 1998
---------------- ------------------ --------------- --------------------- ------------
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> 50
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.214470 1.300471 7.08% 2,986,605 1998
---------------- ------------------ --------------- --------------------- ------------
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> 51
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 52
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.102364 2.376817 13.05% 7,930,211 1998
---------------- ------------------ --------------- --------------------- ------------
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> 53
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 54
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 55
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 56
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE........................................0.90%
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 2.936925 3.204456 9.11% 24,175 1998
---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 1.215186 1.301894 7.14% 748,333 1998
---------------- ------------------ --------------- --------------------- ------------
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> 57
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.103587 2.379388 13.11% 1,694,071 1998
---------------- ------------------ --------------- --------------------- ------------
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> 58
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 59
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.80%
<TABLE>
<CAPTION>
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
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
The Bond Fund of America(SM), Inc. 2.437902 2.473803 1.47% 762,842 1999
---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 2.940341 3.211392 9.22% 1,554 1998
---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.216616 1.304742 7.24% 583,720 1998
---------------- ------------------ --------------- --------------------- ------------
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> 60
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.106034 2.384538 13.22% 1,333,146 1998
---------------- ------------------ --------------- --------------------- ------------
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> 61
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.093550 9.36% 299,188 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 62
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 63
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.70%
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.218047 1.307593 7.35% 0 1998
---------------- ------------------ --------------- --------------------- ------------
1.144861 1.218047 6.39% 114,003 1997
---------------- ------------------ --------------- --------------------- ------------
1.140792 1.144861 0.36% 104,637 1996
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
</TABLE>
63
<PAGE> 64
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Fidelity Equity-Income Fund 7.733517 8.229002 6.41% 0 1999
---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.108484 2.389699 13.34% 0 1998
---------------- ------------------ --------------- --------------------- ------------
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> 65
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Stock Fund - Class A 16.014540 22.263692 39.02% 0 1998
---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Class B 1.000000 1.106825 10.68% 5,955 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 66
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 S&P 500 Index Fund - 1.093694 1.301036 18.96% 676,972 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.093694 9.37% 22,552 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.061002 6.10% 48,644 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige International Fund - 1.092070 1.316225 20.53% 153,162 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.092070 9.21% 16,097 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Growth Fund - 1.139564 1.525781 33.89% 812,797 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.139564 13.96% 52,478 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.049429 0.993783 -5.30% 136,335 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.049429 4.94% 7,620 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Small Cap Fund - 1.090386 1.285935 17.93% 440,526 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.090386 9.04% 31,273 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 67
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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> 68
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.65%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Class 2.318983 2.751200 18.64% 3,022,273 1998
---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 3.039369 3.202651 5.37% 169 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.304596 1.301463 -0.24% 344,294 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 69
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.223486 2.378046 6.95% 660,119 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Janus Fund 2.682628 3.921398 46.18% 8,056,954 1999
---------------- ------------------ --------------- --------------------- ------------
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> 70
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 A 16.919446 21.898623 29.43% 28,074 1999
---------------- ------------------ --------------- --------------------- ------------
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> 71
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.60%
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 3.051041 3.215194 5.38% 6,112 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.309331 1.306298 -0.23% 71,515 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.232005 2.387360 6.96% 90,551 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 72
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Portfolio 1.000000 1.134101 13.41% 50,620 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.061142 6.11% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige International Fund - 1.092213 1.317714 20.65% 6,408 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.092213 9.22% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Growth Fund - 1.139173 1.527506 34.03% 118,191 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.139173 13.97% 2,573 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.049566 0.994908 -5.21% 7,280 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.049566 4.96% 4,696 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Small Cap Fund - 1.090529 1.287390 18.05% 58,575 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.090529 9.05% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 73
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.55%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.307530 1.304613 -0.22% 62,224 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.228972 2.384319 6.97% 158,514 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 74
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Class B 1.000000 1.107043 10.70% 7,861 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.093909 9.39% 112,981 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 A 16.854407 21.836245 29.56% 706 1999
---------------- ------------------ --------------- --------------------- ------------
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> 75
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE................................... .0.50%
<TABLE>
<CAPTION>
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 ---------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------- ----------------- ----------------- ---------------- --------------------- ------------
Fidelity Asset Manager(TM) 1.746158 1.973560 13.02% 278,360 1999
----------------- ----------------- ---------------- --------------------- ------------
1.592900 1.746158 9.62% 0 1998
- ------------------------------------------- ----------------- ----------------- ---------------- --------------------- ------------
Fidelity 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> 76
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.45%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.061351 6.14% 3,404 1998
---------------- ------------------ --------------- --------------------- ------------
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige International Fund - 1.092427 1.319950 20.83% 42,382 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.092427 9.24% 1,317 1998
---------------- ------------------ --------------- --------------------- ------------
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Growth Fund - 1.061351 1.530097 34.23% 376,952 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.139937 13.99% 1,307 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.049773 0.996598 -5.07% 48,328 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.049773 4.98% 2,293 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Small Cap Fund - 1.090743 1.289575 18.23% 91,958 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.090743 9.07% 946 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.
76
<PAGE> 77
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.40%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Class 2.302741 2.734577 18.75% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Fidelity 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> 78
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Class B 1.000000 1.107260 10.73% 0 1998
---------------- ------------------ --------------- --------------------- ------------
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.094125 9.41% 116,258 1998
---------------- ------------------ --------------- --------------------- ------------
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 A 16.817324 21.820873 29.75% 107,765 1999
---------------- ------------------ --------------- --------------------- ------------
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> 79
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.35%
<TABLE>
<CAPTION>
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Class 3.051062 3.216581 5.42% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Institutional Shares 1.309601 1.307125 -0.19% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Fidelity Asset Manager(TM) 1.753300 1.984605 13.19% 83,541 1999
---------------- ------------------ --------------- --------------------- ------------
1.599009 1.753300 9.65% 0 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Fidelity 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> 80
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
Income Fund) 2.232020 2.388389 7.01% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 - ---------------- ------------------ --------------- --------------------- ------------
Class B 1.000000 1.107333 10.73% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.094197 9.42% 0 1998
---------------- ------------------ --------------- --------------------- ------------
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 81
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.30%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- -------------
(formerly, Class Y) 1.000000 1.094268 9.43% 0 1998
---------------- ------------------ --------------- --------------------- -------------
---------------- ------------------ --------------- --------------------- -------------
- -------------------------------------- ---------------- ------------------ --------------- --------------------- -------------
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> 82
*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> 83
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.25%
<TABLE>
<CAPTION>
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 - 1.098387 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
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
Fidelity 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 ----------------- ----------------- ---------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.094340 9.43% 0 1998
----------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
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> 84
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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>
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 ----------------- ----------------- ---------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.140236 14.02% 0 1998
----------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.050049 0.998856 -4.88% 16,763 1999
Institutional Service Class ----------------- ----------------- ---------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.050049 5.00% 0 1998
----------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
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> 85
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.20%
<TABLE>
<CAPTION>
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 - 1.098459 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
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
Fidelity 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 ----------------- ----------------- ---------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.094412 9.44% 0 1998
----------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.12%.
85
<PAGE> 86
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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>
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 ----------------- ----------------- ---------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.140311 14.03% 0 1998
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.050118 0.999421 -4.83% 504 1999
Institutional Service Class ----------------- ----------------- ---------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.050118 5.01% 0 1998
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
- ------------------------------------------ ----------------- ----------------- ---------------- --------------------- ------------
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> 87
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE........................................0.15%
<TABLE>
<CAPTION>
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 1.098531 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
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Fidelity 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 ----------------- ----------------- ---------------- --------------------- -----------
Portfolio - Class B 1.000000 1.107624 10.76% 0 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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 ----------------- ----------------- ---------------- --------------------- -----------
(formerly, Class Y) 1.000000 1.092857 9.29% 0 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.050187 0.999986 -4.78% 499 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.050187 5.02% 0 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
</TABLE>
*The 7-day yield on the Nationwide Money Markey Fund - Prime Shares as of
December 31, 1999 was 5.17%.
87
<PAGE> 88
CONDENSED FINANCIAL INFORMATION (CONTINUED)
<TABLE>
<CAPTION>
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 Small Cap Fund - 1.091172 1.293956 18.58% 77 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.091172 9.12% 0 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 89
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.10%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.140460 14.05% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.050256 1.000552 -4.73% 582 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.050256 5.03% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Small Cap Fund - 1.091244 1.294687 18.64% 8,132 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.091244 9.12% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
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> 90
CONDENSED FINANCIAL INFORMATION
VARIABLE ACCOUNT ANNUAL EXPENSE FEE....................................... 0.00%
<TABLE>
<CAPTION>
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 ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.061978 6.20% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige International Fund - 1.093071 1.326680 21.37% 16,001 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.093071 9.31% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Growth Fund - 1.140610 1.537896 34.83% 150,974 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.140610 14.06% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Large Cap Value Fund - 1.050394 1.001685 -4.64% 20,014 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.050394 5.04% 0 1998
---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
Prestige Small Cap Fund - 1.091387 1.296152 18.76% 301,790 1999
Institutional Service Class ---------------- ------------------ --------------- --------------------- ------------
(formerly, Class Y) 1.000000 1.091387 9.14% 0 1998
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
- ------------------------------------ ---------------- ------------------ --------------- --------------------- ------------
</TABLE>
90
