<PAGE> 1
Nationwide(R) VLI
Separate Account-2
June 30, 1999
[Logo]
Life Planning Series(R)
'99
SEMI-ANNUAL REPORT
- --------------------------------------------------------------------------------
[logo]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
<PAGE> 2
[logo]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[picture]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to
present the 1999 semi-annual report of the Nationwide VLI Separate
Account-2.
Equity investments performed well during the first half of 1999 with
the major market indices showing double-digit gains. Fixed income
investments did not fare as well during this period in the face of
the Federal Reserve's inflation cautiousness. The Fed is mindful of
the resilient U.S. economy and the increasingly tight labor pool
that portends future wage inflation. Accordingly, we have seen a
ratcheting-up of short-term interest rates to dampen the momentum of
the current expansion. How aggressively the Fed may react to the
perceived inflation threat only adds uncertainty to the already
jittery equity markets. Over the long term, however, a slower but
sustainable rate of growth, with low inflation, provides a favorable
environment for further advances in financial assets.
At mid-year, we are pleased to report that all the mission-critical
systems used to service our variable annuity and variable life
business have been internally inventoried, assessed and tested as
being Year 2000 compliant. We are currently contacting our critical
business partners to determine if they will be Year 2000 compliant.
Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure
that Nationwide Financial will be able to continue to serve your
financial needs into the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve
your financial planning and retirement savings goals. You have our
commitment to provide the consistent, high quality service you
expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
2
<PAGE> 3
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NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Balanced (ACVPBal)
790,598 shares (cost $6,184,593) ...................................... $ 5,826,706
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
1,273,524 shares (cost $12,304,973) ................................... 13,333,798
American Century VP - American Century VP Income & Growth (ACVPIncGr)
596,325 shares (cost $4,020,044) ...................................... 4,436,657
American Century VP - American Century VP International (ACVPInt)
1,803,572 shares (cost $14,245,648) ................................... 14,753,219
American Century VP - American Century VP Value (ACVPValue)
495,323 shares (cost $3,329,857) ...................................... 3,363,244
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
444,788 shares (cost $14,631,109) ..................................... 15,589,825
Dreyfus Stock Index Fund (DryStkIx)
2,801,166 shares (cost $83,617,429) ................................... 101,150,114
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
202,291 shares (cost $7,474,795) ...................................... 7,852,922
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
105,500 shares (cost $2,349,300) ...................................... 2,640,673
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
3,484,793 shares (cost $78,510,337) ................................... 94,960,615
Fidelity VIP - Growth Portfolio (FidVIPGr)
3,209,164 shares (cost $136,378,229) .................................. 146,755,090
Fidelity VIP - High Income Portfolio (FidVIPHI)
2,409,843 shares (cost $26,668,135) ................................... 27,207,132
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,169,419 shares (cost $23,128,580) ................................... 24,323,916
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
1,860,487 shares (cost $29,275,597) ................................... 32,912,010
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
2,396,994 shares (cost $53,469,980) ................................... 62,561,556
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
287,838 shares (cost $6,212,961) ...................................... 6,804,489
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
84,354 shares (cost $559,631) ......................................... 581,202
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
1,608,291 shares (cost $40,623,118) ................................... 47,734,090
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,279,331 shares (cost $14,519,793) ................................... 14,238,950
Nationwide SAT - Money Market Fund (NSATMyMkt)
52,661,707 shares (cost $52,661,707) .................................. 52,661,707
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
166,659 shares (cost $1,734,698) ...................................... 1,848,252
(continued)
</TABLE>
3
<PAGE> 4
<TABLE>
<CAPTION>
<S> <C>
Nationwide SAT - Small Company Fund (NSATSmCo)
1,065,517 shares (cost $16,329,676) ..................................... 18,358,865
Nationwide SAT - Total Return Fund (NSATTotRe)
5,378,307 shares (cost $84,906,685) ..................................... 109,125,851
Neuberger &Berman AMT - Growth Portfolio (NBAMTGro)
966,962 shares (cost $23,314,171) ....................................... 24,686,541
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
129,849 shares (cost $2,008,687) ........................................ 2,099,665
Neuberger &Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
354,695 shares (cost $4,861,805) ........................................ 4,642,953
Neuberger &Berman AMT - Partners Portfolio (NBAMTPart)
1,628,845 shares (cost $31,567,970) ..................................... 33,749,669
Oppenheimer VAF - Bond Fund (OppBdFd)
1,033,377 shares (cost $12,640,141) ..................................... 11,883,840
Oppenheimer VAF - Global Securities Fund (OppGlSec)
991,846 shares (cost $20,434,728) ....................................... 23,794,382
Oppenheimer VAF - Growth Fund (OppGro)
158,163 shares (cost $6,102,657) ........................................ 6,445,147
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
850,847 shares (cost $13,719,597) ....................................... 14,413,356
Strong Opportunity Fund II, Inc. (StOpp2)
1,566,359 shares (cost $30,919,502) ..................................... 36,120,230
Strong VIF - Strong Discovery Fund II (StDisc2)
655,553 shares (cost $7,273,090) ........................................ 6,712,867
Strong VIF - Strong International Stock Fund II (StIntStk2)
221,973 shares (cost $2,103,354) ........................................ 2,159,802
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
270,687 shares (cost $3,069,113) ........................................ 2,918,010
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
442,524 shares (cost $4,527,446) ........................................ 4,597,823
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
390,094 shares (cost $4,178,808) ........................................ 4,177,911
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
450,651 shares (cost $6,101,838) ........................................ 6,259,546
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
880,390 shares (cost $10,161,304) ....................................... 10,344,584
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
85,056 shares (cost $1,034,755) ......................................... 1,129,548
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
906,387 shares (cost $14,513,853) ....................................... 15,490,157
--------------
Total investments .................................................... 1,020,646,914
Accounts receivable ........................................................... --
--------------
Total assets ......................................................... 1,020,646,914
ACCOUNTS PAYABLE ................................................................. 493,009
--------------
CONTRACT OWNERS' EQUITY (NOTE 7) ................................................. $1,020,153,905
==============
(Continued)
</TABLE>
See accompanying notes to financial statements.
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4
<PAGE> 5
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACVPBAL
---------------------------------------------- ------------------------------
1999 1998 1997 1999 1998
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................. $ 11,048,944 8,712,917 6,598,185 104,861 73,602
Mortality and expense charges
(note 3)............................ (4,004,752) (3,308,897) (2,031,589) (23,627) (17,983)
-------------- -------------- -------------- -------------- -------------
Net investment activity............. 7,044,192 5,404,020 4,566,596 81,234 55,619
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund
shares sold......................... 564,990,323 346,442,595 178,546,434 642,219 398,417
Cost of mutual funds sold............. (535,031,121) (325,822,763) (169,848,226) (659,900) (384,342)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on
investments....................... 29,959,202 20,619,832 8,698,208 (17,681) 14,075
Change in unrealized gain (loss)
on investments...................... 23,373,352 11,837,526 25,785,917 (577,220) 38,521
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments ..... 53,332,554 32,457,358 34,484,125 (594,901) 52,596
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains.............. 29,803,192 38,188,195 13,736,609 723,543 456,397
-------------- -------------- -------------- -------------- -------------
Net change in contract
owners' equity resulting
from operations................. 90,179,938 76,049,573 52,787,330 209,876 564,612
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners................ 85,590,465 120,409,700 98,790,341 386,488 979,546
Transfers between funds .............. - - - 9,176 -
Surrenders............................ (13,628,236) (8,014,830) (4,997,122) (101,327) (12,549)
Death benefits (note 4)............... (726,947) (672,575) (389,210) (3,696) (12,669)
Policy loans (net of repayments)
(note 5)............................ (9,810,843) (8,069,812) (4,913,143) (82,228) (25,563)
Deductions for surrender charges
(note 2d)........................... (2,572,613) (986,904) (565,766) (19,128) (1,546)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)................... (22,930,567) (21,601,557) (15,856,317) (135,301) (19,712)
Deductions for asset charges
(note 3)............................ (103,771) - - (613) -
-------------- -------------- -------------- -------------- -------------
Net equity transactions........... 35,817,488 81,064,022 72,068,783 53,371 907,507
-------------- -------------- -------------- -------------- -------------
Net change in contract
owners' equity........................ 125,997,426 157,113,595 124,856,113 263,247 1,472,119
Contract owners' equity
beginning of period................... 894,156,479 658,587,322 409,169,174 5,562,859 3,711,460
Contract owners' equity -------------- -------------- -------------- -------------- -------------
end of period........................ $1,020,153,905 815,700,917 534,025,287 5,826,106 5,183,579
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACVPBAL ACVPCAPAP
-------------- ----------------------------------------------
1997 1999 1998 1997
-------------- ------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................. 32,123 - - -
Mortality and expense charges
(note 3)............................ (12,305) (50,709) (55,863) (49,949)
-------------- -------------- -------------- --------------
Net investment activity............. 19,818 (50,709) (55,863) (49,949)
-------------- -------------- -------------- --------------
Proceeds from mutual fund
shares sold......................... 733,516 12,700,484 4,530,068 10,989,347
Cost of mutual funds sold............. (596,324) (13,388,359) (4,963,656) (12,470,634)
-------------- -------------- -------------- --------------
Realized gain (loss) on
investments....................... 137,192 (687,875) (433,588) (1,481,287)
Change in unrealized gain (loss)
on investments...................... (33,179) 2,545,305 (98,390) 776,851
-------------- -------------- -------------- --------------
Net gain (loss) on investments ..... 104,013 1,857,430 (531,978) (704,436)
-------------- -------------- -------------- --------------
Reinvested capital gains.............. 126,771 - 626,544 235,182
-------------- -------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations................. 250,602 1,806,721 38,703 (519,203)
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners................ 408,858 1,028,156 100,295 84,154
Transfers between funds .............. - (337,205) - -
Surrenders............................ (13,352) (256,633) (152,685) (143,897)
Death benefits (note 4)............... (21,630) (10,147) (833) (170)
Policy loans (net of repayments)
(note 5)............................ (31,216) (107,920) (125,436) (123,469)
Deductions for surrender charges
(note 2d)........................... (1,510) (48,445) (18,801) (16,292)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)................... (11,537) (331,886) (195,713) (173,679)
Deductions for asset charges
(note 3)............................ - (5,951) - -
-------------- -------------- -------------- --------------
Net equity transactions........... 329,613 (70,031) (393,173) (373,353)
-------------- -------------- -------------- --------------
Net change in contract
owners' equity........................ 580,215 1,736,690 (354,470) (892,556)
Contract owners' equity
beginning of period................... 2,648,246 11,594,653 12,118,077 11,978,588
Contract owners' equity -------------- -------------- -------------- --------------
end of period........................ 3,228,461 13,331,343 11,763,607 11,086,032
============== ============== ============== ==============
(Continued)
</TABLE>
5
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPINCGR ACVPINT
---------------------------------------------- ------------------------------
1999 1998 1997 1999 1998
-------------- -------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............. $ 655 - - - 48,574
Mortality and expense charges
(note 3)........................ (13,534) (288) - (62,999) (46,064)
-------------- -------------- -------------- -------------- -------------
Net investment activity......... (12,879) (288) - (62,999) 2,510
-------------- -------------- -------------- -------------- -------------
Proceeds from mutual fund
shares sold..................... 445,915 290,487 - 13,731,895 15,617,159
Cost of mutual funds sold......... (412,859) (290,790) - (12,697,742) (14,405,140)
-------------- -------------- -------------- -------------- -------------
Realized gain (loss) on
investments................... 33,056 (303) - 1,034,153 1,212,019
Change in unrealized gain (loss)
on investments.................. 285,105 4,236 - 30,973 218,959
-------------- -------------- -------------- -------------- -------------
Net gain (loss) on investments . 318,161 3,933 - 1,065,126 1,430,978
-------------- -------------- -------------- -------------- -------------
Reinvested capital gains.......... - - - - 498,648
-------------- -------------- -------------- -------------- -------------
Net change in contract
owners' equity resulting
from operations............. 305,282 3,645 - 1,002,127 1,932,136
-------------- -------------- -------------- -------------- -------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners............ 256,418 244,934 - 917,905 4,760,062
Transfers between funds .......... 2,404,105 - - (369,129) -
Surrenders........................ (5,649) - - (124,014) (74,430)
Death benefits (note 4)........... - - - - (11,587)
Policy loans (net of repayments)
(note 5)........................ (24,771) - - (128,672) (52,106)
Deductions for surrender charges
(note 2d)....................... (1,066) - - (23,410) (9,165)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............... (43,405) - - (283,654) (97,701)
Deductions for asset charges
(note 3)........................ (59) - - (940) -
-------------- -------------- -------------- -------------- -------------
Net equity transactions....... 2,585,573 244,934 - (11,914) 4,515,073
-------------- -------------- -------------- -------------- -------------
Net change in contract
owners' equity.................... 2,890,855 248,579 - 990,213 6,447,209
Contract owners' equity
beginning of period............... 1,545,640 - - 13,761,213 6,586,196
Contract owners' equity -------------- -------------- -------------- -------------- -------------
end of period..................... $ 4,436,495 248,579 - 14,751,426 13,033,405
============== ============== ============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACVPINT ACVPVALUE
-------------- ----------------------------------------------
1997 1999 1998 1997
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............. 39,611 26,285 14,238 1,245
Mortality and expense charges
(note 3)........................ (18,536) (12,751) (9,936) (1,403)
-------------- -------------- -------------- --------------
Net investment activity......... 21,075 13,534 4,302 (158)
-------------- -------------- -------------- --------------
Proceeds from mutual fund
shares sold..................... 7,057,562 7,983,936 2,479,537 274,048
Cost of mutual funds sold......... (6,470,361) (7,885,835) (2,351,215) (259,254)
-------------- -------------- -------------- --------------
Realized gain (loss) on
investments................... 587,201 98,101 128,322 14,794
Change in unrealized gain (loss)
on investments.................. 30,923 (2,153) (191,778) 35,310
-------------- -------------- -------------- --------------
Net gain (loss) on investments . 618,124 95,948 (63,456) 50,104
-------------- -------------- -------------- --------------
Reinvested capital gains.......... 76,392 249,026 169,984 2,540
-------------- -------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations............. 715,591 358,508 110,830 52,486
-------------- -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners............ 1,317,591 267,319 860,516 1,060,635
Transfers between funds .......... - 125,952 - -
Surrenders........................ (14,771) (28,880) (43,636) -
Death benefits (note 4)........... - (2,056) - -
Policy loans (net of repayments)
(note 5)........................ (28,820) 3,128 (20,713) -
Deductions for surrender charges
(note 2d)....................... (1,672) (5,452) (5,373) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............... (52,553) (68,280) (3,488) -
Deductions for asset charges
(note 3)........................ - (550) - -
-------------- -------------- -------------- --------------
Net equity transactions....... 1,219,775 291,181 787,306 1,060,635
-------------- -------------- -------------- --------------
Net change in contract
owners' equity.................... 1,935,366 649,689 898,136 1,113,121
Contract owners' equity
beginning of period............... 3,438,047 2,713,250 1,715,117 9,129
Contract owners' equity -------------- -------------- -------------- --------------
end of period..................... 5,373,413 3,362,939 2,613,253 1,122,250
============== ============== ============== ==============
</TABLE>
6
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRYSRGRO DRYSTKIX
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ - - - 516,124 394,083 194,348
Mortality and expense charges
(note 3)...................... (58,214) (36,017) (16,456) (378,127) (231,915) (92,673
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity....... (58,214) (36,017) (16,456) 137,997 162,168 101,675
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 13,202,346 8,770,733 2,909,748 10,380,315 13,290,398 4,331,924
Cost of mutual funds sold....... (11,705,828) (8,106,177) (2,776,946) (7,953,378) (9,737,886) (3,548,409
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................. 1,496,518 664,556 132,802 2,426,937 3,552,512 783,515
Change in unrealized gain (loss)
on investments................ 112,962 745,098 476,820 7,018,035 4,563,240 3,160,589
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 1,609,480 1,409,654 609,622 9,444,972 8,115,752 3,944,104
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains........ - - - 397,987 97,930 -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 1,551,266 1,373,637 593,166 9,980,956 8,375,850 4,045,779
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners.......... 1,358,931 1,211,880 1,462,069 6,744,152 13,488,706 10,881,675
Transfers between funds ........ 1,532,743 - - 9,736,434 - -
Surrenders...................... (157,096) (74,911) (41,533) (1,338,550) (286,427) (128,386
Death benefits (note 4)......... (10,178) (926) - (57,388) (390,115) (39,008
Policy loans (net of repayments)
(note 5)...................... (282,983) (83,393) (38,087) (739,921) (409,581) (133,804
Deductions for surrender charges
(note 2d)..................... (29,655) (9,224) (4,702) (252,679) (35,269) (14,536
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (433,164) (55,835) (34,449) (1,969,101) (478,514) (230,834
Deductions for asset charges
(note 3)...................... (2,069) - - (7,057) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions..... 1,976,529 987,591 1,343,298 12,115,890 11,888,800 10,335,107
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity.................. 3,527,795 2,361,228 1,936,464 22,096,846 20,264,650 14,380,886
Contract owners' equity
beginning of period............. 12,060,375 7,215,240 2,949,723 79,041,506 43,989,896 15,484,934
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................... $ 15,588,170 9,576,468 4,886,187 101,138,352 64,254,546 29,865,820
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
DRYCAPAP
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 407 345 -
Mortality and expense charges
(note 3)...................... (29,186) (7,936) -
-------------- -------------- --------------
Net investment activity....... (28,779) (7,591) -
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 4,308,604 10,071,068 -
Cost of mutual funds sold....... (4,024,862) (9,782,670) -
-------------- -------------- --------------
Realized gain (loss) on
investments................. 283,742 288,398 -
Change in unrealized gain (loss)
on investments................ 208,670 59,122 -
-------------- -------------- --------------
Net gain (loss) on investments 492,412 347,520 -
-------------- -------------- --------------
Reinvested capital gains........ - 1,151 -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 463,633 341,080 -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners.......... 599,510 3,120,275 -
Transfers between funds ........ 2,347,390 - -
Surrenders...................... (8,571) (8,948) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (80,232) (4,391) -
Deductions for surrender charges
(note 2d)..................... (1,618) (1,102) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (136,974) (2,876) -
Deductions for asset charges
(note 3)...................... 85 - -
-------------- -------------- --------------
Net equity transactions..... 2,719,590 3,102,958 -
-------------- -------------- --------------
Net change in contract
owners' equity.................. 3,183,223 3,444,038 -
Contract owners' equity
beginning of period............. 4,669,084 431,596 -
Contract owners' equity -------------- -------------- --------------
end of period................... 7,852,307 3,875,634 -
============== ============== ==============
(Continued)
</TABLE>
7
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRYGRINC FIDVIPEI
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... $ 11,290 8,240 3,397 1,233,625 997,915 783,723
Mortality and expense charges
(note 3)..................... (9,723) (7,149) (808) (379,568) (359,708) (226,025)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity...... 1,567 1,091 2,589 854,057 638,207 557,698
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold.................. 806,913 2,125,660 734,728 16,337,330 2,422,015 2,187,621
Cost of mutual funds sold...... (813,739) (2,061,669) (714,298) (11,368,717) (1,533,056) (1,661,421)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................ (6,826) 63,991 20,430 4,968,613 888,959 526,200
Change in unrealized gain (loss)
on investments............... 254,120 (27,858) 4,117 1,552,335 2,123,447 2,550,290
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 247,294 36,133 24,547 6,520,948 3,012,406 3,076,490
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains....... - 29,897 1,225 2,726,961 3,551,403 3,940,387
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 248,861 67,121 28,361 10,101,966 7,202,016 7,574,575
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 235,133 693,027 421,107 5,429,922 9,479,863 8,834,333
Transfers between funds ....... 40,844 - - (325,012) - -
Surrenders..................... (14,294) (25,517) - (1,079,731) (573,862) (534,187)
Death benefits (note 4)........ (18,064) - - (69,516) (1,981) (31,441)
Policy loans (net of repayments)
(note 5)..................... (7,391) (5,687) - (557,070) (605,617) (340,317)
Deductions for surrender charges
(note 2d).................... (2,698) (3,142) - (203,821) (70,662) (60,480)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (64,163) (1,467) - (1,903,537) (2,765,688) (2,040,084)
Deductions for asset charges
(note 3)..................... (470) - - (9,685) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.... 168,897 657,214 421,107 1,281,550 5,462,053 5,827,824
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity................. 417,758 724,335 449,468 11,383,516 12,664,069 13,402,399
Contract owners' equity
beginning of period............ 2,213,966 1,202,853 - 83,564,278 69,728,573 44,818,783
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period.................. $ 2,631,724 1,927,188 449,468 94,947,794 82,392,642 58,221,182
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPGR
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... 215,538 398,089 370,457
Mortality and expense charges
(note 3)..................... (559,667) (381,285) (254,124)
-------------- -------------- --------------
Net investment activity...... (344,129) 16,804 116,333
-------------- -------------- --------------
Proceeds from mutual fund
shares sold.................. 74,255,400 29,018,085 29,878,672
Cost of mutual funds sold...... (62,130,274) (25,477,997) (27,393,746)
-------------- -------------- --------------
Realized gain (loss) on
investments................ 12,125,126 3,540,088 2,484,926
Change in unrealized gain (loss)
on investments............... (8,528,396) 425,707 3,124,958
-------------- -------------- --------------
Net gain (loss) on investments 3,596,730 3,965,795 5,609,884
-------------- -------------- --------------
Reinvested capital gains....... 13,551,946 10,413,177 1,658,235
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 16,804,547 14,395,776 7,384,452
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 8,009,544 8,952,047 5,250,341
Transfers between funds ....... 11,610,724 - -
Surrenders..................... (1,730,082) (785,432) (464,563)
Death benefits (note 4)........ (105,907) (28,916) (24,698)
Policy loans (net of repayments)
(note 5)..................... (1,649,512) (549,848) (552,330)
Deductions for surrender charges
(note 2d).................... (326,589) (96,714) (52,597)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (3,004,276) (1,651,805) (1,312,297)
Deductions for asset charges
(note 3)..................... (38,141) - -
-------------- -------------- --------------
Net equity transactions.... 12,765,761 5,839,332 2,843,856
-------------- -------------- --------------
Net change in contract
owners' equity................. 29,570,308 20,235,108 10,228,308
Contract owners' equity
beginning of period............ 117,142,759 74,962,498 53,895,576
Contract owners' equity -------------- -------------- --------------
end of period.................. 146,713,067 95,197,606 64,123,884
============== ============== ==============
</TABLE>
8
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPHI FIDVIPOV
----------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
--------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ $ 2,570,090 1,930,736 1,246,428 332,184 372,727 285,975
Mortality and expense charges
(note 3)................... (121,804) (124,734) (80,934) (98,384) (102,878) (82,408)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity.... 2,448,286 1,806,002 1,165,494 233,800 269,849 203,567
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................ 26,464,932 4,053,136 6,574,913 19,160,889 14,455,861 3,210,172
Cost of mutual funds sold.... (29,328,722) (3,792,211) (6,245,963) (18,967,050) (13,197,934) (2,676,739)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments.............. (2,863,790) 260,925 328,950 193,839 1,257,927 533,433
Change in unrealized gain (loss)
on investments............. 2,388,072 (2,153,392) (323,477) 839,608 386,106 981,703
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments (475,718) (1,892,467) 5,473 1,033,447 1,644,033 1,515,136
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains..... 96,078 1,226,822 154,053 535,780 1,098,565 1,135,234
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........ 2,068,646 1,140,357 1,325,020 1,803,027 3,012,447 2,853,937
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 2,053,632 6,608,088 3,890,660 1,422,825 2,193,341 4,404,678
Transfers between funds ..... (3,072,703) - - (119,455) - -
Surrenders................... (318,121) (139,130) (86,946) (284,830) (218,321) (197,540)
Death benefits (note 4)...... (28,934) (6,340) (18,850) (828) (5,293) (9,400)
Policy loans (net of repayments)
(note 5)................... (162,528) (192,807) (165,207) (208,962) (231,665) (145,652)
Deductions for surrender charges
(note 2d).................. (60,052) (17,132) (9,844) (53,767) (26,883) (22,365)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (627,914) (1,777,126) (1,366,914) (458,244) (780,983) (634,759)
Deductions for asset charges
(note 3)................... (13,079) - - (2,635) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.. (2,229,699) 4,475,553 2,242,899 294,104 930,196 3,394,962
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity............... (161,053) 5,615,910 3,567,919 2,097,131 3,942,643 6,248,899
Contract owners' equity
beginning of period.......... 27,354,464 25,162,314 17,054,239 22,223,409 19,093,154 16,202,132
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................ $ 27,193,411 30,778,224 20,622,158 24,320,540 23,035,797 22,451,031
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPAM
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ 1,040,155 894,977 787,310
Mortality and expense charges
(note 3)................... (139,133) (142,762) (109,092)
-------------- -------------- --------------
Net investment activity.... 901,022 752,215 678,218
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................ 2,649,925 1,593,036 1,295,655
Cost of mutual funds sold.... (2,115,072) (1,298,529) (1,217,135)
-------------- -------------- --------------
Realized gain (loss) on
investments.............. 534,853 294,507 78,520
Change in unrealized gain (loss
on investments............. (1,230,877) (1,236,595) (299,457)
-------------- -------------- --------------
Net gain (loss) on investment (696,024) (942,088) (220,937)
-------------- -------------- --------------
Reinvested capital gains..... 1,317,530 2,684,931 1,974,948
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........ 1,522,528 2,495,058 2,432,229
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 1,647,919 1,439,623 1,499,298
Transfers between funds ..... (1,004,031) - -
Surrenders................... (411,923) (627,160) (288,598)
Death benefits (note 4)...... (38,265) (1,045) (50,760)
Policy loans (net of repayments
(note 5)................... (367,797) 3,401 (145,897)
Deductions for surrender charge
(note 2d).................. (77,759) (77,225) (32,675)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (616,347) (232,307) (177,668)
Deductions for asset charges
(note 3)................... 171 - -
-------------- -------------- --------------
Net equity transactions.. (868,032) 505,287 803,700
-------------- -------------- --------------
Net change in contract
owners' equity............... 654,496 3,000,345 3,235,929
Contract owners' equity
beginning of period.......... 32,253,287 28,264,549 22,315,298
Contract owners' equity -------------- -------------- --------------
end of period................ 32,907,783 31,264,894 25,551,227
============== ============== ==============
(Continued)
</TABLE>
9
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPCON FIDVIPGROP
--------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- ------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 261,343 208,958 131,312 58,964 20,203 -
Mortality and expense charges
(note 3)...................... (240,504) (145,059) (77,620) (27,142) (11,337) -
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity....... 20,839 63,899 53,692 31,822 8,866 -
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 17,757,473 1,380,112 984,338 1,844,238 997,348 -
Cost of mutual funds sold....... (11,558,481) (962,695) (797,289) (1,564,325) (958,638) -
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................. 6,198,992 417,417 187,049 279,913 38,710 -
Change in unrealized gain (loss)
on investments................ (2,418,970) 3,079,468 1,493,873 (14,590) 116,037 -
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 3,780,022 3,496,885 1,680,922 265,323 154,747 -
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains........ 1,916,516 1,537,336 347,039 110,237 70,230 -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 5,717,377 5,098,120 2,081,653 407,382 233,843 -
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners.......... 4,372,871 6,402,896 7,159,944 557,107 2,682,598 -
Transfers between funds ........ 5,120,838 - - 217,982 - -
Surrenders...................... (671,985) (234,804) (282,329) (36,661) (17,235) -
Death benefits (note 4)......... (12,543) (17,032) (8,666) - (9,221) -
Policy loans (net of repayments)
(note 5)...................... (387,338) (276,399) (148,228) (68,417) (3,587) -
Deductions for surrender charges
(note 2d)..................... (126,851) (28,913) (31,965) (6,921) (2,122) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1,303,533) (195,246) (128,236) (153,039) (7,621) -
Deductions for asset charges
(note 3)...................... (3,902) - - (2,000) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions..... 6,987,557 5,650,502 6,560,520 508,051 2,642,812 -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity.................. 12,704,934 10,748,622 8,642,173 915,433 2,876,655 -
Contract owners' equity
beginning of period............. 49,850,235 28,807,807 13,658,616 5,888,280 1,109,019 -
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................... $ 62,555,169 39,556,429 22,300,789 6,803,713 3,985,674 -
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
MSEMMKT
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - -
Mortality and expense charges
(note 3)...................... (1,859) (1,414) -
-------------- -------------- --------------
Net investment activity....... (1,859) (1,414) -
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 776,751 1,007,212 -
Cost of mutual funds sold....... (780,258) (990,693) -
-------------- -------------- --------------
Realized gain (loss) on
investments................. (3,507) 16,519 -
Change in unrealized gain (loss)
on investments................ 52,963 (32,273) -
-------------- -------------- --------------
Net gain (loss) on investments 49,456 (15,754) -
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 47,597 (17,168) -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners.......... 51,024 135,616 -
Transfers between funds ........ 160,959 - -
Surrenders...................... (691) - -
Death benefits (note 4)......... - (9) -
Policy loans (net of repayments)
(note 5)...................... (6,755) (2,802) -
Deductions for surrender charges
(note 2d)..................... (130) - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (10,842) (535) -
Deductions for asset charges
(note 3)...................... (238) - -
-------------- -------------- --------------
Net equity transactions..... 193,327 132,270 -
-------------- -------------- --------------
Net change in contract
owners' equity.................. 240,924 115,102 -
Contract owners' equity
beginning of period............. 340,166 251,886 -
Contract owners' equity -------------- -------------- --------------
end of period................... 581,090 366,988 -
============== ============== ==============
</TABLE>
10
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NSATCAPAP NSATGVTBD
----------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
--------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... $ 123,887 121,805 62,199 410,523 277,274 234,376
Mortality and expense charges
(note 3)..................... (177,391) (111,697) (42,582) (69,481) (51,167) (37,537)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity...... (53,504) 10,108 19,617 341,042 226,107 196,839
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold.................. 10,204,170 24,884,337 4,921,781 23,880,721 11,696,556 1,635,728
Cost of mutual funds sold...... (9,166,296) (22,114,759) (4,156,194) (24,524,311) (11,614,793) (1,543,241)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................ 1,037,874 2,769,578 765,587 (643,590) 81,763 92,487
Change in unrealized gain (loss)
on investments............... 3,893,623 1,558,683 1,117,587 (72,114) 20,571 (114,153)
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 4,931,497 4,328,261 1,883,174 (715,704) 102,334 (21,666)
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains....... - - - - - -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 4,877,993 4,338,369 1,902,791 (374,662) 328,441 175,173
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 3,206,546 6,323,233 4,336,180 480,582 1,639,555 1,514,145
Transfers between funds ....... 577,528 - - 686,697 - -
Surrenders..................... (484,580) (158,780) (84,113) (141,969) (122,655) (50,832)
Death benefits (note 4)........ (1,084) (5,133) (1,034) (2,413) (2,663) -
Policy loans (net of repayments)
(note 5)..................... (406,011) (360,416) (168,059) (183,253) (253,465) (89,293)
Deductions for surrender charges
(note 2d).................... (91,475) (19,551) (9,523) (26,800) (15,103) (5,755)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (1,229,348) (407,187) (124,916) (257,303) (739,318) (635,462)
Deductions for asset charges
(note 3)..................... (4,107) - - (1,715) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.... 1,567,469 5,372,166 3,948,535 553,826 506,351 732,803
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity................. 6,445,462 9,710,535 5,851,326 179,164 834,792 907,976
Contract owners' equity
beginning of period............ 41,283,344 21,752,456 8,227,786 14,057,773 9,022,990 6,680,010
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period.................. $ 47,728,806 31,462,991 14,079,112 14,236,937 9,857,782 7,587,986
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
NSATMYMKT
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... 1,143,390 1,169,613 945,560
Mortality and expense charges
(note 3)..................... (231,890) (195,090) (171,737)
-------------- -------------- --------------
Net investment activity...... 911,500 974,523 773,823
-------------- -------------- --------------
Proceeds from mutual fund
shares sold.................. 129,456,166 102,312,184 54,608,919
Cost of mutual funds sold...... (129,456,166) (102,312,184) (54,608,919)
-------------- -------------- --------------
Realized gain (loss) on
investments................ - - -
Change in unrealized gain (loss)
on investments............... - - -
-------------- -------------- --------------
Net gain (loss) on investments - - -
-------------- -------------- --------------
Reinvested capital gains....... - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 911,500 974,523 773,823
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 22,646,556 6,293,192 3,112,549
Transfers between funds ....... (13,212,708) - -
Surrenders..................... (1,841,711) (1,363,346) (1,232,956)
Death benefits (note 4)........ (9,090) - (4,912)
Policy loans (net of repayments)
(note 5)..................... (1,434,449) (701,509) (1,053,158)
Deductions for surrender charges
(note 2d).................... (347,661) (167,875) (139,593)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (1,347,671) (2,586,581) (2,402,224)
Deductions for asset charges
(note 3)..................... (18,437) - -
-------------- -------------- --------------
Net equity transactions.... 4,434,829 1,473,881 (1,720,294)
-------------- -------------- --------------
Net change in contract
owners' equity................. 5,346,329 2,448,404 (946,471)
Contract owners' equity
beginning of period............ 47,514,985 44,437,799 38,274,668
Contract owners' equity -------------- -------------- --------------
end of period.................. 52,861,314 46,886,203 37,328,197
============== ============== ==============
(Continued)
</TABLE>
11
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSMCAPV NSATSMCO
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ $ - - - - - -
Mortality and expense charges
(note 3)................... (7,740) (9) - (69,626) (63,165) (27,466)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity.... (7,740) (9) - (69,626) (63,165) (27,466)
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................ 24,946,574 57,189 - 8,731,250 4,403,010 3,734,111
Cost of mutual funds sold.... (24,609,841) (58,378) - (9,214,647) (4,280,792) (3,472,617)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments.............. 336,733 (1,189) - (483,397) 122,218 261,494
Change in unrealized gain (loss)
on investments............. 81,911 (1,071) - 1,749,918 746,208 500,619
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 418,644 (2,260) - 1,266,521 868,426 762,113
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains..... 39,519 - - - - -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........ 450,423 (2,269) - 1,196,895 805,261 734,647
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 87,410 102,772 - 1,665,406 2,323,502 2,003,326
Transfers between funds ..... 525,988 - - (1,123,943) - -
Surrenders................... (4,465) - - (237,573) (143,659) (26,751)
Death benefits (note 4)...... - - - (22,618) (17,515) -
Policy loans (net of repayments)
(note 5)................... (3,030) - - (135,113) (127,488) (54,998)
Deductions for surrender charges
(note 2d).................. (843) - - (44,847) (17,689) (3,029)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (20,313) - - (445,280) (19,908) (15,310)
Deductions for asset charges
(note 3)................... (27,520) - - 8,704 - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.. 557,227 102,772 - (335,264) 1,997,243 1,903,238
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity............... 1,007,650 100,503 - 861,631 2,802,504 2,637,885
Contract owners' equity
beginning of period.......... 840,622 - - 17,495,277 13,679,771 5,910,217
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................ $ 1,848,272 100,503 - 18,356,908 16,482,275 8,548,102
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
NSATTOTRE
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ 401,272 475,135 452,129
Mortality and expense charges
(note 3)................... (409,894) (358,937) (199,255)
-------------- -------------- --------------
Net investment activity.... (8,622) 116,198 252,874
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................ 4,507,318 13,264,954 5,567,493
Cost of mutual funds sold.... (2,779,291) (7,824,001) (3,928,091)
-------------- -------------- --------------
Realized gain (loss) on
investments.............. 1,728,027 5,440,953 1,639,402
Change in unrealized gain (loss)
on investments............. 8,405,203 5,583,635 7,047,780
-------------- -------------- --------------
Net gain (loss) on investments 10,133,230 11,024,588 8,687,182
-------------- -------------- --------------
Reinvested capital gains..... 46,309 - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........ 10,170,917 11,140,786 8,940,056
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 7,523,389 18,143,806 15,885,073
Transfers between funds ..... (1,685,456) - -
Surrenders................... (1,265,140) (992,942) (387,800)
Death benefits (note 4)...... (47,899) (83,810) (74,026)
Policy loans (net of repayments)
(note 5)................... (1,213,965) (994,765) (556,317)
Deductions for surrender charges
(note 2d).................. (238,821) (122,265) (43,906)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (3,232,868) (8,484,508) (5,785,492)
Deductions for asset charges
(note 3)................... (11,899) - -
-------------- -------------- --------------
Net equity transactions.. (172,659) 7,465,516 9,037,532
-------------- -------------- --------------
Net change in contract
owners' equity............... 9,998,258 18,606,302 17,977,588
Contract owners' equity
beginning of period.......... 99,115,362 74,640,126 42,378,675
Contract owners' equity -------------- -------------- --------------
end of period................ 109,113,620 93,246,428 60,356,263
============== ============== ==============
</TABLE>
12
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTGRO NBAMTGUARD
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ - - - 4,569 - -
Mortality and expense charges
(note 3)...................... (90,347) (88,537) (60,656) (6,206) (26) -
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity....... (90,347) (88,537) (60,656) (1,637) (26) -
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 39,409,448 17,314,434 4,346,545 6,846,821 1,458 -
Cost of mutual funds sold....... (39,719,323) (18,622,980) (4,423,589) (6,716,500) (1,527) -
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................. (309,875) (1,308,546) (77,044) 130,321 (69) -
Change in unrealized gain (loss)
on investments................ (194,817) (585,856) 930,941 37,316 (1,307) -
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments (504,692) (1,894,402) 853,897 167,637 (1,376) -
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains........ 1,124,154 4,778,935 1,172,597 - - -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 529,115 2,795,996 1,965,838 166,000 (1,402) -
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners.......... 1,505,298 1,215,115 (64,103) 89,296 160,006 -
Transfers between funds ........ (789,610) - - 1,041,284 - -
Surrenders...................... (308,656) (181,476) (145,321) (14,232) - -
Death benefits (note 4)......... (6,700) (3,257) (9,223) - - -
Policy loans (net of repayments)
(note 5)...................... (195,283) (853,967) (213,837) (6,580) - -
Deductions for surrender charges
(note 2d)..................... (58,265) (22,346) (16,453) (2,687) - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (540,342) (184,523) (108,131) (31,645) (1,263) -
Deductions for asset charges
(note 3)...................... 35,869 - - (135) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions..... (357,689) (30,454) (557,068) 1,075,301 158,743 -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity.................. 171,426 2,765,542 1,408,770 1,241,301 157,341 -
Contract owners' equity
beginning of period............. 24,511,722 17,545,164 12,724,238 858,201 - -
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................... $ 24,683,148 20,310,706 14,133,008 2,099,502 157,341 -
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
NBAMTLMAT
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 277,113 365,591 166,562
Mortality and expense charges
(note 3)...................... (21,849) (28,663) (13,242)
-------------- -------------- --------------
Net investment activity....... 255,264 336,928 153,320
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 818,576 1,816,971 394,973
Cost of mutual funds sold....... (861,356) (1,867,186) (398,687)
-------------- -------------- --------------
Realized gain (loss) on
investments................. (42,780) (50,215) (3,714)
Change in unrealized gain (loss)
on investments................ (216,481) (169,138) (69,819)
-------------- -------------- --------------
Net gain (loss) on investments (259,261) (219,353) (73,533)
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... (3,997) 117,575 79,787
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners.......... 127,955 (163,038) 1,002,138
Transfers between funds ........ (398,625) - -
Surrenders...................... (50,287) (81,322) (15,510)
Death benefits (note 4)......... - - (7,982)
Policy loans (net of repayments)
(note 5)...................... (77,518) (303,704) (23,033)
Deductions for surrender charges
(note 2d)..................... (9,493) (10,014) (1,756)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (84,154) (48,776) (39,484)
Deductions for asset charges
(note 3)...................... (522) - -
-------------- -------------- --------------
Net equity transactions..... (492,644) (606,854) 914,373
-------------- -------------- --------------
Net change in contract
owners' equity.................. (496,641) (489,279) 994,160
Contract owners' equity
beginning of period............. 5,019,328 5,891,455 2,771,458
Contract owners' equity -------------- -------------- --------------
end of period................... 4,522,687 5,402,176 3,765,618
============== ============== ==============
(Continued)
</TABLE>
13
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTPART OPPBDFD
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ $ 395,343 123,869 38,636 563,814 177,251 207,936
Mortality and expense charges
(note 3)................... (139,374) (149,612) (63,266) (51,399) (46,258) (28,435)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity.... 255,969 (25,743) (24,630) 512,415 130,993 179,501
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................ 7,115,808 8,935,619 6,548,053 2,985,856 8,819,212 1,333,678
Cost of mutual funds sold.... (7,530,734) (7,365,832) (5,452,852) (2,946,651) (8,665,115) (1,264,643)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments.............. (414,926) 1,569,787 1,095,201 39,205 154,097 69,035
Change in unrealized gain (loss)
on investments............. 3,488,844 (3,799,608) 414,144 (858,388) (117,816) (105,073)
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 3,073,918 (2,229,821) 1,509,345 (819,183) 36,281 (36,038)
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains..... 687,554 3,901,869 594,994 54,146 160,413 20,983
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........ 4,017,441 1,646,305 2,079,709 (252,622) 327,687 164,446
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 2,997,338 7,539,397 5,982,681 803,115 2,531,359 956,859
Transfers between funds ..... (6,509,486) - - (333,920) - -
Surrenders................... (399,446) (347,798) (70,250) (259,972) (152,557) (44,287)
Death benefits (note 4)...... (77,115) (3,394) - (1,959) (976) -
Policy loans (net of repayments)
(note 5)................... (238,490) (854,379) (79,239) (122,645) (47,429) (56,812)
Deductions for surrender charges
(note 2d).................. (75,404) (42,826) (7,954) (49,075) (18,785) (5,014)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (893,634) (236,276) (148,125) (261,138) (54,145) (30,273)
Deductions for asset charges
(note 3)................... (17,683) - - (1,373) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.. (5,213,920) 6,054,724 5,677,113 (226,967) 2,257,467 820,473
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity............... (1,196,479) 7,701,029 7,756,822 (479,589) 2,585,154 984,919
Contract owners' equity
beginning of period.......... 34,942,331 28,728,327 10,650,358 12,362,107 8,824,474 5,969,243
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................ $ 33,745,852 36,429,356 18,407,180 11,882,518 11,409,628 6,954,162
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
OPPGLSEC
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ 255,944 389,267 139,580
Mortality and expense charges
(note 3)................... (90,423) (84,767) (51,046)
-------------- -------------- --------------
Net investment activity.... 165,521 304,500 88,534
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................ 3,264,518 2,440,838 1,071,784
Cost of mutual funds sold.... (2,337,002) (1,633,051) (841,648)
-------------- -------------- --------------
Realized gain (loss) on
investments.............. 927,516 807,787 230,136
Change in unrealized gain (loss)
on investments............. 1,000,292 (471,370) 1,457,606
-------------- -------------- --------------
Net gain (loss) on investments 1,927,808 336,417 1,687,742
-------------- -------------- --------------
Reinvested capital gains..... 717,222 1,465,275 -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........ 2,810,551 2,106,192 1,776,276
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 1,809,125 2,834,330 2,460,565
Transfers between funds ..... (798,406) - -
Surrenders................... (339,435) (173,421) (81,415)
Death benefits (note 4)...... (17,495) (12,596) (1,612)
Policy loans (net of repayments)
(note 5)................... (192,000) (157,096) (149,869)
Deductions for surrender charges
(note 2d).................. (64,075) (21,354) (9,218)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (544,481) (142,346) (87,749)
Deductions for asset charges
(note 3)................... (2,400) - -
-------------- -------------- --------------
Net equity transactions.. (149,167) 2,327,517 2,130,702
-------------- -------------- --------------
Net change in contract
owners' equity............... 2,661,384 4,433,709 3,906,978
Contract owners' equity
beginning of period.......... 21,130,542 16,552,365 9,914,447
Contract owners' equity -------------- -------------- --------------
end of period................ 23,791,926 20,986,074 13,821,425
============== ============== ==============
</TABLE>
14
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
OPPGRO OPPMULT
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... $ 16,006 9,433 - 480,400 116,421 184,869
Mortality and expense charges
(note 3)..................... (22,789) (5,614) - (61,508) (60,451) (43,446)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity...... (6,783) 3,819 - 418,892 55,970 141,423
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold.................. 13,437,035 209,040 - 2,359,001 1,191,372 340,657
Cost of mutual funds sold...... (13,096,360) (198,084) - (2,004,956) (910,992) (291,730)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................ 340,675 10,956 - 354,045 280,380 48,927
Change in unrealized gain (loss)
on investments............... 229,785 75,252 - (380,000) (200,068) 278,587
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 570,460 86,208 - (25,955) 80,312 327,514
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains....... 175,824 113,813 - 694,901 675,242 329,608
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 739,501 203,840 - 1,087,838 811,524 798,545
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 459,478 1,441,481 - 508,241 1,296,724 2,288,619
Transfers between funds ....... (590,191) - - (962,657) - -
Surrenders..................... (26,248) (13,335) - (283,850) (330,613) (68,513)
Death benefits (note 4)........ (6,703) - - (22,347) (1,705) (21,748)
Policy loans (net of repayments)
(note 5)..................... (14,074) (12,852) - (122,362) (68,611) (90,139)
Deductions for surrender charges
(note 2d).................... (4,955) (1,642) - (53,583) (40,710) (7,757)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (145,416) (1,318) - (338,623) (65,263) (38,977)
Deductions for asset charges
(note 3)..................... (494) - - (1,678) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.... (328,603) 1,412,334 - (1,276,859) 789,822 2,061,485
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity................. 410,898 1,616,174 - (189,021) 1,601,346 2,860,030
Contract owners' equity
beginning of period............ 6,027,018 618,849 - 14,207,759 12,354,982 7,967,395
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period.................. $ 6,437,916 2,235,023 - 14,018,738 13,956,328 10,827,425
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
STOPP2
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... - 9,466 53,781
Mortality and expense charges
(note 3)..................... (135,574) (128,013) (79,380)
-------------- -------------- --------------
Net investment activity...... (135,574) (118,547) (25,599)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold.................. 2,651,679 1,744,010 683,567
Cost of mutual funds sold...... (1,843,006) (1,137,988) (503,547)
-------------- -------------- --------------
Realized gain (loss) on
investments................ 808,673 606,022 180,020
Change in unrealized gain (loss)
on investments............... 1,598,388 (677,163) 18,015
-------------- -------------- --------------
Net gain (loss) on investments 2,407,061 (71,141) 198,035
-------------- -------------- --------------
Reinvested capital gains....... 3,541,869 3,488,003 1,736,733
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 5,813,356 3,298,315 1,909,169
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 2,194,780 2,605,777 2,102,165
Transfers between funds ....... (1,114,017) - -
Surrenders..................... (523,814) (241,367) (153,010)
Death benefits (note 4)........ (41,689) (8,701) (49,308)
Policy loans (net of repayments)
(note 5)..................... (368,754) (246,461) (252,769)
Deductions for surrender charges
(note 2d).................... (98,881) (29,721) (17,324)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (776,598) (144,972) (96,574)
Deductions for asset charges
(note 3)..................... (3,836) - -
-------------- -------------- --------------
Net equity transactions.... (732,809) 1,934,555 1,533,180
-------------- -------------- --------------
Net change in contract
owners' equity................. 5,080,547 5,232,870 3,442,349
Contract owners' equity
beginning of period............ 31,035,784 25,405,845 17,186,084
Contract owners' equity -------------- -------------- --------------
end of period.................. 36,116,331 30,638,715 20,628,433
============== ============== ==============
(Continued)
</TABLE>
15
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
STDISC2 STINTSTK2
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ $ - - - 7,958 22,650 35,008
Mortality and expense charges
(note 3)................... (29,585) (36,399) (28,774) (9,240) (9,083) (14,424)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity.... (29,585) (36,399) (28,774) (1,282) 13,567 20,584
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold................ 7,602,129 1,582,087 2,411,045 4,010,749 3,049,320 585,246
Cost of mutual funds sold.... (8,338,545) (1,281,933) (2,890,676) (4,035,082) (3,173,020) (587,763)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments.............. (736,416) 300,154 (479,631) (24,333) (123,700) (2,517)
Change in unrealized gain (loss)
on investments............. (770,988) 180,568 847,810 240,237 242,382 86,114
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments (1,507,404) 480,722 368,179 215,904 118,682 83,597
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains..... 1,035,670 120,028 - - - 54,007
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........ (501,319) 564,351 339,405 214,622 132,249 158,188
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 572,779 463,511 412,467 188,897 (8,969) 312,147
Transfers between funds ..... (1,402,004) - - (115,285) - -
Surrenders................... (90,705) (113,497) (75,896) (33,417) (20,530) (35,084)
Death benefits (note 4)...... - (1,071) - - (5,991) -
Policy loans (net of repayments)
(note 5)................... (41,555) (100,992) (34,090) (20,863) (20,946) (11,071)
Deductions for surrender charges
(note 2d).................. (17,123) (13,975) (8,593) (6,308) (2,528) (3,972)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (186,922) (36,131) (17,847) (54,022) (1,125) (1,884)
Deductions for asset charges
(note 3)................... 27,590 - - (1,028) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.. (1,137,940) 197,845 276,041 (42,026) (60,089) 260,136
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity............... (1,639,259) 762,196 615,446 172,596 72,160 418,324
Contract owners' equity
beginning of period.......... 8,351,832 7,545,548 6,749,968 1,986,996 1,986,172 1,829,534
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period................ $ 6,712,573 8,307,744 7,365,414 2,159,592 2,058,332 2,247,858
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
VEWRLDBD
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ 135,225 24,030 73,945
Mortality and expense charges
(note 3)................... (14,606) (12,836) (9,798)
-------------- -------------- --------------
Net investment activity.... 120,619 11,194 64,147
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................ 3,219,812 444,657 229,920
Cost of mutual funds sold.... (3,493,093) (427,670) (250,660)
-------------- -------------- --------------
Realized gain (loss) on
investments.............. (273,281) 16,987 (20,740)
Change in unrealized gain (loss)
on investments............. (157,901) 50,573 (72,466)
-------------- -------------- --------------
Net gain (loss) on investments (431,182) 67,560 (93,206)
-------------- -------------- --------------
Reinvested capital gains..... 60,420 - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........ (250,143) 78,754 (29,059)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners....... 130,903 506,327 164,573
Transfers between funds ..... (325,382) - -
Surrenders................... (41,688) (11,858) (12,762)
Death benefits (note 4)...... (1,088) (3,254) -
Policy loans (net of repayments)
(note 5)................... (73,512) (16,172) (9,854)
Deductions for surrender charges
(note 2d).................. (7,869) (1,460) (1,445)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (60,584) (5,901) (3,098)
Deductions for asset charges
(note 3)................... (380) - -
-------------- -------------- --------------
Net equity transactions.. (379,600) 467,682 137,414
-------------- -------------- --------------
Net change in contract
owners' equity............... (629,743) 546,436 108,355
Contract owners' equity
beginning of period.......... 3,547,221 2,529,206 2,252,638
Contract owners' equity -------------- -------------- --------------
end of period................ 2,917,478 3,075,642 2,360,993
============== ============== ==============
</TABLE>
16
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
VEWRLDEMKT VEWRLDHAS
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... $ - 20,182 1,791 61,762 35,945 118,188
Mortality and expense charges
(note 3)..................... (14,530) (10,596) (7,884) (19,298) (31,604) (31,937)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity...... (14,530) 9,586 (6,093) 42,464 4,341 86,251
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold.................. 14,917,573 2,681,020 1,863,605 12,536,891 5,254,538 5,827,653
Cost of mutual funds sold...... (13,530,838) (3,524,085) (1,733,276) (11,846,027) (6,923,358) (5,874,786)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................ 1,386,735 (843,065) 130,329 690,864 (1,668,820) (47,133)
Change in unrealized gain (loss)
on investments............... (37,783) 222,177 143,497 41,295 (120,061) (207,265)
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 1,348,952 (620,888) 273,826 732,159 (1,788,881) (254,398)
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains....... - 17,939 - - 882,647 160,126
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 1,334,422 (593,363) 267,733 774,623 (901,893) (8,021)
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 238,572 303,957 3,077,647 291,879 404,298 494,300
Transfers between funds ....... 1,310,742 - - (723,551) - -
Surrenders..................... (48,930) (9,087) - (240,281) (52,118) (67,109)
Death benefits (note 4)........ - (4,921) - (1,400) (2,347) -
Policy loans (net of repayments)
(note 5)..................... (14,461) (10,202) - 91,190 (58,205) (69,095)
Deductions for surrender charges
(note 2d).................... (9,236) (1,119) - (45,358) (6,418) (7,598)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (65,785) (5,654) - (99,237) (84,904) (63,084)
Deductions for asset charges
(note 3)..................... 3,591 - - 36 - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.... 1,414,493 272,974 3,077,647 (726,722) 200,306 287,414
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity................. 2,748,915 (320,389) 3,345,380 47,901 (701,587) 279,393
Contract owners' equity
beginning of period............ 1,851,575 2,399,674 3,215 4,129,585 6,316,203 6,317,004
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period.................. $ 4,600,490 2,079,285 3,348,595 4,177,486 5,614,616 6,596,397
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
VKMSRESEC
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... 400,217 12,298 7,696
Mortality and expense charges
(note 3)..................... (27,026) (33,996) (19,904)
-------------- -------------- --------------
Net investment activity...... 373,191 (21,698) (12,208)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold.................. 4,652,983 2,812,518 2,759,500
Cost of mutual funds sold...... (5,521,374) (2,907,348) (2,432,318)
-------------- -------------- --------------
Realized gain (loss) on
investments................ (868,391) (94,830) 327,182
Change in unrealized gain (loss)
on investments............... 983,802 (425,117) (58,090)
-------------- -------------- --------------
Net gain (loss) on investments 115,411 (519,947) 269,092
-------------- -------------- --------------
Reinvested capital gains....... - 121,016 15,555
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 488,602 (420,629) 272,439
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 564,262 666,162 1,698,145
Transfers between funds ....... (972,989) - -
Surrenders..................... (90,507) (61,824) (46,802)
Death benefits (note 4)........ (2,653) (10,901) -
Policy loans (net of repayments)
(note 5)..................... (82,519) (28,419) (42,029)
Deductions for surrender charges
(note 2d).................... (17,085) (7,613) (5,299)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (167,494) (29,860) (29,105)
Deductions for asset charges
(note 3)..................... (69) - -
-------------- -------------- --------------
Net equity transactions.... (769,054) 527,545 1,574,910
-------------- -------------- --------------
Net change in contract
owners' equity................. (280,452) 106,916 1,847,349
Contract owners' equity
beginning of period............ 6,539,291 7,628,431 3,193,794
Contract owners' equity -------------- -------------- --------------
end of period.................. 6,258,839 7,735,347 5,041,143
============== ============== ==============
(Continued)
</TABLE>
17
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
WPINTEQ WPPVENCAP
---------------------------------------------- -----------------------------------------------
1999 1998 1997 1999 1998 1997
-------------- -------------- -------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... $ - - - - - -
Mortality and expense charges
(note 3)..................... (37,101) (46,915) (42,304) (4,873) (3,714) (873)
-------------- -------------- -------------- -------------- ------------- --------------
Net investment activity...... (37,101) (46,915) (42,304) (4,873) (3,714) (873)
-------------- -------------- -------------- -------------- ------------- --------------
Proceeds from mutual fund
shares sold.................. 5,966,736 7,454,530 4,153,535 2,958,840 3,485,129 792,783
Cost of mutual funds sold...... (5,942,488) (7,745,663) (3,929,688) (2,833,602) (3,402,821) (791,269)
-------------- -------------- -------------- -------------- ------------- --------------
Realized gain (loss) on
investments................ 24,248 (291,133) 223,847 125,238 82,308 1,514
Change in unrealized gain (loss)
on investments............... 607,775 1,610,483 1,166,086 29,894 (15,371) 8,744
-------------- -------------- -------------- -------------- ------------- --------------
Net gain (loss) on investments 632,023 1,319,350 1,389,933 155,132 66,937 10,258
-------------- -------------- -------------- -------------- ------------- --------------
Reinvested capital gains....... - - - - - -
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 594,922 1,272,435 1,347,629 150,259 63,223 9,385
-------------- -------------- -------------- -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 711,491 197,051 1,360,675 63,366 (9,777) 280,489
Transfers between funds ....... 229,058 - - (131,843) - -
Surrenders..................... (157,093) (30,817) (181,688) (19,367) (59) -
Death benefits (note 4)........ (46,674) (7,841) (14,742) - - -
Policy loans (net of repayments)
(note 5)..................... (36,287) (121,860) (41,895) (6,551) 4,461 -
Deductions for surrender charges
(note 2d).................... (29,655) (3,795) (20,570) (3,656) (7) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (212,432) (16,044) (34,298) (23,447) (493) -
Deductions for asset charges
(note 3)..................... 1,175 - - (39) - -
-------------- -------------- -------------- -------------- ------------- --------------
Net equity transactions.... 459,583 16,694 1,067,482 (121,537) (5,875) 280,489
-------------- -------------- -------------- -------------- ------------- --------------
Net change in contract
owners' equity................. 1,054,505 1,289,129 2,415,111 28,722 57,348 289,874
Contract owners' equity
beginning of period............ 9,289,108 9,978,378 8,390,121 1,100,662 766,675 -
Contract owners' equity -------------- -------------- -------------- -------------- ------------- --------------
end of period.................. $ 10,343,613 11,267,507 10,805,232 1,129,384 824,023 289,874
============== ============== ============== ============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
WPSMCOGR
----------------------------------------------
1999 1998 1997
-------------- -------------- --------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .......... - - -
Mortality and expense charges
(note 3)..................... (56,071) (69,420) (35,310)
-------------- -------------- --------------
Net investment activity...... (56,071) (69,420) (35,310)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold.................. 5,060,104 8,087,280 3,573,614
Cost of mutual funds sold...... (5,328,231) (7,533,905) (3,643,513)
-------------- -------------- --------------
Realized gain (loss) on
investments................ (268,127) 553,375 (69,899)
Change in unrealized gain (loss)
on investments............... 1,157,599 111,285 415,932
-------------- -------------- --------------
Net gain (loss) on investments 889,472 664,660 346,033
-------------- -------------- --------------
Reinvested capital gains....... - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations.......... 833,401 595,240 310,723
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners......... 1,384,945 246,616 2,734,358
Transfers between funds ....... (1,260,836) - -
Surrenders..................... (155,832) (136,722) (20,921)
Death benefits (note 4)........ (60,498) (10,532) -
Policy loans (net of repayments)
(note 5)..................... (53,389) (149,141) (64,559)
Deductions for surrender charges
(note 2d).................... (29,417) (16,835) (2,369)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............ (368,170) (38,444) (31,274)
Deductions for asset charges
(note 3)..................... (288) - -
-------------- -------------- --------------
Net equity transactions.... (543,485) (105,058) 2,615,235
-------------- -------------- --------------
Net change in contract
owners' equity................. 289,916 490,182 2,925,958
Contract owners' equity
beginning of period............ 15,178,630 15,632,197 7,325,010
Contract owners' equity -------------- -------------- --------------
end of period.................. 15,468,546 16,122,379 10,250,968
============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
18
<PAGE> 19
- --------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLISeparate Account-2 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life
Insurance Company (the Company) on May 7, 1987. The Account has been
registered as a unit investment trust under the Investment Company Act
of 1940.
The Company offers Single Premium, Modified Single Premium, Flexible
Premium and Last Survivor Flexible Premium Variable Life Insurance
Policies through the Account. The primary distribution for the
contracts is through the brokerage community; however, other
distributors may be utilized.
(b) The Contracts
Prior to December 31, 1990, only contracts without a front-end sales
charge, but with a contingent deferred sales charge and certain other
fees, were offered for purchase. Beginning December 31, 1990, contracts
with a front-end sales charge, a contingent deferred sales charge and
certain other fees, are offered for purchase. See note 2 for a
discussion of policy charges, and note 3 for asset charges.
Contract owners may invest in the following:
<TABLE>
<CAPTION>
<S> <C>
Portfolios of the American Century Variable Portfolios, Inc. (American Century VP);
American Century VP - American Century VP Balanced (ACVPBal)
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
American Century VP - American Century VP Income & Growth (ACVPIncGr)
American Century VP - American Century VP International (ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund (Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund II (Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III (Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
</TABLE>
19
<PAGE> 20
<TABLE>
<CAPTION>
<S> <C>
Funds of the Nationwide Separate Account Trust (Nationwide SAT) (managed for a fee by an
affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust (Neuberger &Berman AMT);
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Bond Fund (OppBdFd)
Oppenheimer VAF - Global Securities Fund (OppGlSec)
Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
Strong Opportunity Fund II, Inc. (StOpp2)
Funds of the Strong Variable Insurance Funds, Inc. (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
Portfolio of the Van Kampen Life Investment Trust (Van Kampen LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
</TABLE>
At June 30, 1999, contract owners have invested in all of the above
funds. The contract owners' equity is affected by the investment
results of each fund, equity transactions by contract owners and
certain contract expenses (see notes 2 and 3). The accompanying
financial statements include only contract owners' purchase payments
pertaining to the variable portions of their contracts and exclude any
purchase payments for fixed dollar benefits, the latter being included
in the accounts of the Company.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
20
<PAGE> 21
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1999. Fund purchases and sales
are accounted for on the trade date (date the order to buy or sell is
executed). The cost of investments sold is determined on a specific
identification basis, and dividends (which include capital gain
distributions) are accrued as of the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Reclassifications
Certain 1997 amounts have been reclassified to conform with the current
period presentation.
(2) POLICY CHARGES
(a) Deductions from Premiums
For single premium contracts, no deduction is made from any premium at
the time of payment. On multiple payment contracts and flexible premium
contracts, the Company deducts a charge for state premium taxes equal
to 2.5% of all premiums received to cover the payment of these premium
taxes. The Company also deducts a sales load from each premium payment
received not to exceed 3.5% of each premium payment.
On last survivor flexible premium contracts, the Company deducts a
charge for state premium taxes equal to 3.5% of all premiums received
to cover the payment of these premium taxes. The Company also deducts a
sales load from each premium payment received not to exceed 5% of each
premium payment during the first ten years and 1.5% of each premium
payment thereafter.
The Company may at its sole discretion reduce this sales loading.
(b) Cost of Insurance
A cost of insurance charge is assessed monthly against each contract by
liquidating units. The amount of the charge is based upon age, sex,
rate class and net amount at risk (death benefit less total contract
value).
For last survivor flexible premium contracts, the monthly cost of
insurance is determined in a manner that reflects the anticipated
mortality of the two insureds and the fact that the death benefit is
not payable until the death of the second insured policyholder.
(c) Administrative Charges
An administrative charge is assessed against each contract to recover
policy maintenance, accounting, record keeping and other administrative
expenses and is assessed against each contract by liquidating units.
21
<PAGE> 22
For single premium contracts, the Company deducts an annual
administrative charge which is determined as follows:
Contracts issued prior to April 16, 1990:
Purchase payments totalling less than $25,000 - $10/month
Purchase payments totalling $25,000 or more - none
Contracts issued on or after April 16, 1990:
Purchase payments totalling less than $25,000 - $90/year
($65/year in New York)
Purchase payments totalling $25,000 or more - $50/year
For multiple payment contracts, the Company currently deducts a monthly
administrative charge of $5 (may deduct up to $7.50, maximum).
For flexible premium contracts, the Company currently deducts a monthly
administrative charge of $12.50 during the first policy year and $5 per
month thereafter (may deduct up to $7.50, maximum). Additionally, the
Company deducts an increase charge of $2.04 per year per $1,000 applied
to any increase in the specified amount during the first 12 months
after the increase becomes effective.
For modified single premium contracts, the monthly charge is equal to
an annual rate of .30% multiplied by the policy's cash value. For
policy years 11 and later, this monthly charge is reduced to an annual
rate of 0.15% of the policy's cash value. The monthly charge is subject
to a $10 minimum.
For last survivor flexible premium contracts, the Company deducts a
monthly administrative charge equal to the sum of the policy charge and
the basic coverage charge. For policy years one through ten the policy
charge is $10. Additionally, there is a $0.04 per $1000 basic coverage
charge (not less than $20 or more than $80 per policy). For policy
years eleven and after, the policy charge is $5. Additionally, there is
a $0.02 per $1000 basic coverage charge (not less than $10 or more than
$40 per policy). Additionally, the Company deducts a monthly increase
charge of $2.40 per $1000 applied to any increase in the specified
amount during the first 12 months after the increase becomes effective.
The charge may be raised to $3.60 per $1000 of increase per year at the
Company's discretion.
(d) Surrender Charges
Policy surrenders result in a redemption of the contract value from the
Account and payment of the surrender proceeds to the contract owner or
designee. The surrender proceeds consist of the contract value, less
any outstanding policy loans, and less a surrender charge, if
applicable. The charge is determined according to contract type.
For single premium contracts, the charge is determined based upon a
specified percentage of the original purchase payment. For single
premium contracts issued prior to April 16, 1990, the charge is 8% in
the first year and declines to 0% after the ninth year. For single
premium contracts issued on or after April 16, 1990, the charge is 8.5%
in the first year, and declines to 0% after the ninth year.
For multiple payment contracts and flexible premium contracts, the
amount charged is based upon a specified percentage of the initial
surrender charge, which varies by issue age, sex and rate class. The
charge is 100% of the initial surrender charge in the first year,
declining to 0% after the ninth year.
For modified single premium contracts, the amount charged is based on
the original purchase payment. The charge is 10% in the first year,
declining to 0% in the ninth year.
For last survivor flexible premium contracts, the charge is 100% of the
initial surrender charge, declining to 0% in the fourteenth year if the
average issue age is 74 or less. The charge is 100% of the initial
surrender charge, declining to 0% in the ninth year if the average
issue age is 75 or greater. For last survivor flexible payment
contracts, the initial surrender charge is comprised of two components,
an underwriting surrender charge and a sales surrender charge.
The Company may waive the surrender charge for certain contracts in
which the sales expenses normally associated with the distribution of a
contract are not incurred.
22
<PAGE> 23
(3) ASSET CHARGES
For single premium contracts, the Company deducts a charge from the
contract to cover mortality and expense risk charges related to operations,
and to recover policy maintenance and premium tax charges. For contracts
issued prior to April 16, 1990, the charge is equal to an annual rate of
.95% during the first ten policy years, and .50% thereafter. A reduction of
charges on these contracts is possible in policy years six through ten for
those contracts achieving certain investment performance criteria. For
single premium contracts issued on or after April 16, 1990, the charge is
equal to an annual rate of 1.30% during the first ten policy years, and
1.00% thereafter.
For multiple payment contracts and flexible premium contracts, the Company
deducts a charge equal to an annual rate of .80%, with certain exceptions,
to cover mortality and expense risk charges related to operations. The
above charges are assessed through the daily unit value calculation.
For modified single premium contracts, the Company deducts an annual rate
of .90% charged against the cash value of the contracts. This charge is
assessed monthly against each contract by liquidating units.
For last survivor flexible premium contracts, the Company deducts an annual
rate of .80% in policy years one through ten. This charge is assessed
monthly by liquidating units. In policy years eleven and greater, the
Company deducts an annual rate of .80% if the cash value of the contract is
less than $100,000. If the cash value is greater than or equal to $100,000,
the Company reduces the annual asset fee rate to .30%.
The following table provides mortality and expense risk charges by contract
type for the period ended June 30, 1999
<TABLE>
<CAPTION>
TOTAL ACVPBAL ACVCAPAP ACVPINCGR ACVPINT
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 10,469 - 712 - 186
Single Premium contracts issued
on or after April 16, 1990.... 1,050,752 5,891 16,606 8,762 18,297
Multiple Payment and Flexible
Premium contracts............. 2,943,531 17,736 33,391 4,772 44,516
------------ ------------ ------------ ------------ ------------
Total....................... $ 4,004,752 23,627 50,709 13,534 62,999
============ ============ ============ ============ ============
ACVPVALUE DRYCAPAP DRYSRGRO DRYSTKIX DRYGRINC
------------ ------------ ------------ ------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ - 53 232 2,197 -
Single Premium contracts issued
on or after April 16, 1990.... 4,308 11,263 6,836 89,558 1,035
Multiple Payment and Flexible
Premium contracts............. 8,443 17,870 51,146 286,372 8,688
------------ ------------ ------------ ------------ ------------
Total....................... $ 12,751 29,186 58,214 378,127 9,723
============ ============ ============ ============ ============
FIDVIPEI FIDVIPGR FIDVIPHI FIDVIPOV FIDVIPAM
------------ ------------ ------------ ------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ 1,071 908 269 490 150
Single Premium contracts issued
on or after April 16, 1990.... 135,118 145,771 30,969 38,073 51,335
Multiple Payment and Flexible
Premium contracts............. 243,379 412,988 90,566 59,821 87,648
------------ ------------ ------------ ------------ ------------
Total....................... $ 379,568 559,667 121,804 98,384 139,133
============ ============ ============ ============ ============
FIDVIPCON FIDVIPGROP MSEMMKT NSATCAPAP NSATGVTBD
------------ ------------ ------------ ------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ 68 91 51 530 212
Single Premium contracts issued
on or after April 16, 1990.... 58,558 3,696 419 28,567 40,829
Multiple Payment and Flexible
Premium contracts............. 181,878 23,355 1,389 148,294 28,440
------------ ------------ ------------ ------------ ------------
Total....................... $ 240,504 27,142 1,859 177,391 69,481
============ ============ ============ ============ ============
</TABLE>
23
<PAGE> 24
<TABLE>
<CAPTION>
NSATMYMKT NSATSMCAPV NSATSMCO NSATTOTRE NBAMTGRO
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 972 120 88 878 510
Single Premium contracts issued
on or after April 16, 1990.... 99,378 2,917 7,316 38,346 33,408
Multiple Payment and Flexible
Premium contracts............. 131,540 4,703 62,222 370,670 56,429
------------ ------------ ------------ ------------ ------------
Total....................... $ 231,890 7,740 69,626 409,894 90,347
============ ============ ============ ============ ============
NBAMTGUARD NBAMTLMAT NBAMTPART OPPBDFD OPPGLSEC
------------ ------------ ------------ ------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ 20 467 - - -
Single Premium contracts issued
on or after April 16, 1990.... 1,002 8,848 16,290 10,589 14,368
Multiple Payment and Flexible
Premium contracts............. 5,184 12,534 123,084 40,810 76,055
------------ ------------ ------------ ------------ ------------
Total....................... $ 6,206 21,849 139,374 51,399 90,423
============ ============ ============ ============ ============
OPPGRO OPPMULT STOPP2 STDISC2 STINTSTK2
------------ ------------ ------------ ------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ - - 69 - -
Single Premium contracts issued
on or after April 16, 1990.... 5,685 20,608 31,334 5,971 2,568
Multiple Payment and Flexible
Premium contracts............. 17,104 40,900 104,171 23,614 6,672
------------ ------------ ------------ ------------ ------------
Total....................... $ 22,789 61,508 135,574 29,585 9,240
============ ============ ============ ============ ============
VEWRLDBD VEWRLDEMKT VEWRLDHAS VKMSRESEC WPINTEQ
------------ ------------ ------------ ------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ 88 17 - - 20
Single Premium contracts issued
on or after April 16, 1990.... 5,101 5,294 8,515 7,291 14,798
Multiple Payment and Flexible
Premium contracts............. 9,417 9,219 10,783 19,735 22,283
------------ ------------ ------------ ------------ ------------
Total....................... $ 14,606 14,530 19,298 27,026 37,101
============ ============ ============ ============ ============
WPPVENCAP WPSMCOGR
------------ ------------
Single Premium contracts Issued
prior to April 16, 1990....... $ - -
Single Premium contracts issued
on or after April 16, 1990.... 2,043 13,191
Multiple Payment and Flexible
Premium contracts............. 2,830 42,880
------------ ------------
Total....................... $ 4,873 56,071
============ ============
</TABLE>
(4) DEATH BENEFITS
Death benefits result in a redemption of the contract value from the
Account and payment of the death benefit proceeds, less any outstanding
policy loans (and policy charges), to the legal beneficiary. For last
survivor flexible premium contracts, the proceeds are payable on the death
of the last surviving insured. The excess of the death benefit proceeds
over the contract value on the date of death is paid by the Company's
general account.
24
<PAGE> 25
(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow up to 90% (50% during
first year of single and modified single premium contracts) of a policy's
cash surrender value. For single premium contracts issued prior to April
16, 1990, 6.5% interest is due and payable annually in advance. For single
premium contracts issued on or after April 16, 1990, multiple payment,
flexible premium, modified single and last survivor flexible premium
contracts, 6% interest is due and payable in advance on the policy
anniversary when there is a loan outstanding on the policy.
At the time the loan is granted, the amount of the loan is transferred from
the Account to the Company's general account as collateral for the
outstanding loan. Collateral amounts in the general account are credited
with the stated rate of interest in effect at the time the loan is made,
subject to a guaranteed minimum rate. Loan repayments result in a transfer
of collateral, including interest, back to the Account.
(6) RELATED PARTY TRANSACTIONS
The Company performs various services on behalf of the Mutual Fund
Companies in which the Account invests and may receive fees for the
services performed. These services include, among other things, shareholder
communications, preparation, postage, fund transfer agency and various
other record keeping and customer service functions. These fees are paid to
an affiliate of the Company.
25
<PAGE> 26
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1999, for
each product in the accumulation phase.
<TABLE>
<CAPTION>
Contract owners' equity represented by: PERIOD
UNITS UNIT VALUE RETURN*
--------- ---------- ----------
<S> <C> <C> <C> <C>
Single Premium contracts issued prior to
April 16, 1990:
American Century VP - American Century
VP Capital Appreciation ...................... 6,408 $ 25.808976 $ 165,384 16%
American Century VP -
American Century VP International ............ 2,471 17.499558 43,241 7%
The Dreyfus Socially Responsible
Growth Fund, Inc. ............................ 1,707 31.543164 53,844 12%
Dreyfus Stock Index Fund ........................ 16,400 31.108111 510,173 12%
Dreyfus VIF -
Capital Appreciation Portfolio ............... 871 14.090891 12,273 7%
Fidelity VIP - Equity-Income Portfolio .......... 5,292 46.987954 248,660 12%
Fidelity VIP - Growth Portfolio ................. 3,186 66.167130 210,808 14%
Fidelity VIP - High Income Portfolio ............ 2,147 29.071395 62,416 7%
Fidelity VIP - Overseas Portfolio ............... 4,362 26.100226 113,849 8%
Fidelity VIP-II - Asset Manager Portfolio ....... 1,189 29.288050 34,823 5%
Fidelity VIP-II - Contrafund Portfolio .......... 680 23.362825 15,887 11%
Fidelity VIP-III -
Growth Opportunities Portfolio ............... 1,480 14.324962 21,201 6%
Morgan Stanley -
Emerging Markets Debt Portfolio .............. 1,520 7.837393 11,913 12%
Nationwide SAT -
Capital Appreciation Fund .................... 3,526 34.932181 123,171 11%
Nationwide SAT -
Government Bond Fund ......................... 2,177 22.639946 49,287 (3)%
Nationwide SAT - Money Market Fund .............. 13,690 16.464706 225,402 2%
Nationwide SAT - Small Cap Value Fund ........... 2,649 10.522940 27,875 23%
Nationwide SAT - Small Company Fund ............. 1,185 17.304978 20,506 7%
Nationwide SAT - Total Return Fund .............. 4,620 44.160435 204,021 10%
Neuberger &Berman AMT -
Growth Portfolio ............................. 3,178 37.242929 118,358 3%
Neuberger & Berman AMT -
Guardian Portfolio ........................... 430 10.858910 4,669 17%
Neuberger &Berman AMT -
Limited Maturity Bond Portfolio .............. 6,045 17.941662 108,457 0%
Strong Opportunity Fund II, Inc. ................ 451 35.677181 16,090 19%
Van Eck WIT - Worldwide Bond Fund ............... 1,327 15.386983 20,419 (7)%
Van Eck WIT -
Worldwide Emerging Markets Fund .............. 465 8.362842 3,889 45%
</TABLE>
26
<PAGE> 27
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Van Eck WIT -
Worldwide Hard Assets Fund ................... 7 11.767408 82 18%
Warburg Pincus Trust -
International Equity Portfolio ............... 373 12.508445 4,666 6%
Single Premium contracts issued on or
after April 16, 1990:
American Century VP -
American Century VP Balanced ................. 37,211 19.330632 719,312 3%
American Century VP - American Century
VP Capital Appreciation ...................... 117,946 17.192298 2,027,763 15%
American Century VP - American Century
VP Income & Growth ........................... 90,616 11.806665 1,069,873 9%
American Century VP -
American Century VP International ............ 129,891 17.201371 2,234,303 7%
American Century VP -
American Century VP Value .................... 35,828 14.681670 526,015 12%
The Dreyfus Socially Responsible
Growth Fund, Inc. ............................ 27,001 30.917208 834,796 12%
Dreyfus Stock Index Fund ........................ 358,680 30.489368 10,935,927 11%
Dreyfus VIF -
Capital Appreciation Portfolio ............... 98,278 13.994585 1,375,360 7%
Dreyfus VIF -
Growth and Income Portfolio .................. 9,057 13.955563 126,396 10%
Fidelity VIP - Equity-Income Portfolio .......... 433,048 38.100394 16,499,299 12%
Fidelity VIP - Growth Portfolio ................. 392,416 45.360460 17,800,170 14%
Fidelity VIP - High Income Portfolio ............ 127,548 29.648402 3,781,594 7%
Fidelity VIP - Overseas Portfolio ............... 249,480 18.635018 4,649,064 7%
Fidelity VIP-II - Asset Manager Portfolio ....... 221,072 28.355264 6,268,555 5%
Fidelity VIP-II - Contrafund Portfolio .......... 310,369 23.038947 7,150,575 11%
Fidelity VIP-III -
Growth Opportunities Portfolio ............... 31,721 14.227045 451,296 6%
Morgan Stanley -
Emerging Markets Debt Portfolio .............. 6,578 7.783728 51,201 12%
Nationwide SAT -
Capital Appreciation Fund .................... 102,409 34.062359 3,488,292 11%
Nationwide SAT -
Government Bond Fund ......................... 267,958 18.605935 4,985,609 (3)%
Nationwide SAT - Money Market Fund .............. 886,332 13.691097 12,134,857 2%
Nationwide SAT - Small Cap Value Fund ........... 33,987 10.480137 356,188 23%
Nationwide SAT - Small Company Fund ............. 52,294 17.083318 893,355 7%
Nationwide SAT - Total Return Fund .............. 124,060 37.743760 4,682,491 10%
Neuberger &Berman AMT -
Growth Portfolio ............................. 156,644 26.043027 4,079,484 2%
Neuberger & Berman AMT -
Guardian Portfolio ........................... 11,315 10.814767 122,369 17%
(Continued)
</TABLE>
27
<PAGE> 28
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio .............. 70,857 15.247492 1,080,392 0%
Neuberger &Berman AMT -
Partners Portfolio ........................... 76,840 25.887457 1,989,192 13%
Oppenheimer VAF - Bond Fund ..................... 70,103 18.443963 1,292,977 (2)%
Oppenheimer VAF -
Global Securities Fund ....................... 85,908 20.422626 1,754,467 13%
Oppenheimer VAF - Growth Fund ................... 47,258 14.688618 694,155 15%
Oppenheimer VAF -
Multiple Strategies Fund ..................... 102,500 24.551015 2,516,479 8%
Strong Opportunity Fund II, Inc. ................ 109,977 34.791123 3,826,223 19%
Strong VIF - Strong Discovery Fund II ........... 41,321 17.645494 729,129 (6)%
Strong VIF -
Strong International Stock Fund II ........... 31,725 9.883060 313,540 11%
Van Eck WIT - Worldwide Bond Fund ............... 41,814 14.896779 622,894 (8)%
Van Eck WIT -
Worldwide Emerging Markets Fund .............. 77,991 8.289473 646,504 45%
Van Eck WIT -
Worldwide Hard Assets Fund ................... 80,704 12.883474 1,039,748 17%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ............. 52,871 16.839423 890,317 8%
Warburg Pincus Trust -
International Equity Portfolio ............... 146,495 12.334941 1,807,007 6%
Warburg Pincus Trust -
Post Venture Capital Portfolio ............... 18,635 13.390123 249,525 12%
Warburg Pincus Trust -
Small Company Growth Portfolio ............... 99,269 16.225912 1,610,730 6%
Multiple Payment contracts and
Flexible Premium contracts:
American Century VP -
American Century VP Balanced ................. 222,079 20.037687 4,449,949 4%
American Century VP - American Century
VP Capital Appreciation ...................... 640,120 16.507627 10,566,862 16%
American Century VP - American Century
VP Income & Growth ........................... 206,901 11.875525 2,457,058 9%
American Century VP -
American Century VP International ............ 612,387 17.628910 10,795,715 7%
American Century VP -
American Century VP Value .................... 144,236 14.867552 2,144,436 13%
The Dreyfus Socially Responsible
Growth Fund, Inc. ............................ 416,431 31.815264 13,248,862 12%
Dreyfus Stock Index Fund ........................ 2,452,036 31.377050 76,937,656 12%
Dreyfus VIF -
Capital Appreciation Portfolio ............... 410,137 14.132362 5,796,205 7%
Dreyfus VIF -
</TABLE>
28
<PAGE> 29
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Growth and Income Portfolio ................. 133,383 14.132230 1,884,999 11%
Fidelity VIP - Equity-Income Portfolio ......... 1,769,777 39.787906 70,415,721 12%
Fidelity VIP - Growth Portfolio ................ 2,565,538 46.724607 119,873,755 14%
Fidelity VIP - High Income Portfolio ........... 678,337 28.102779 19,063,155 8%
Fidelity VIP - Overseas Portfolio .............. 874,384 20.427325 17,861,326 8%
Fidelity VIP-II - Asset Manager Portfolio ...... 963,059 26.023875 25,062,527 5%
Fidelity VIP-II - Contrafund Portfolio ......... 2,079,761 23.503049 48,880,725 11%
Fidelity VIP-III -
Growth Opportunities Portfolio .............. 367,838 14.367127 5,284,775 6%
Morgan Stanley -
Emerging Markets Debt Portfolio ............. 40,988 7.860506 322,186 13%
Nationwide SAT -
Capital Appreciation Fund ................... 1,098,675 35.307745 38,791,737 11%
Nationwide SAT -
Government Bond Fund ........................ 424,621 17.618074 7,481,004 (3)%
Nationwide SAT - Money Market Fund ............. 2,224,003 13.571142 30,182,261 2%
Nationwide SAT - Small Cap Value Fund .......... 85,419 10.541317 900,429 23%
Nationwide SAT - Small Company Fund ............ 867,898 17.400870 15,102,180 7%
Nationwide SAT - Total Return Fund ............. 2,643,756 36.480415 96,445,316 10%
Neuberger & Berman AMT -
Growth Portfolio ............................ 668,108 26.010144 17,377,585 3%
Neuberger & Berman AMT -
Guardian Portfolio .......................... 159,097 10.877878 1,730,638 17%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio ............. 172,383 14.850110 2,559,907 0%
Neuberger & Berman AMT -
Partners Portfolio .......................... 1,040,775 26.530639 27,612,426 13%
Oppenheimer VAF - Bond Fund .................... 525,968 17.727061 9,323,867 (2)%
Oppenheimer VAF -
Global Securities Fund ...................... 974,688 21.017527 20,485,531 13%
Oppenheimer VAF - Growth Fund .................. 328,553 14.833265 4,873,514 15%
Oppenheimer VAF -
Multiple Strategies Fund .................... 436,991 24.520578 10,715,272 8%
Strong Opportunity Fund II, Inc. ............... 850,948 36.059910 30,685,108 19%
Strong VIF - Strong Discovery Fund II .......... 315,862 18.289393 5,776,924 (6)%
Strong VIF -
Strong International Stock Fund II .......... 146,319 10.066830 1,472,968 11%
Van Eck WIT - Worldwide Bond Fund .............. 145,716 14.178734 2,066,068 (7)%
Van Eck WIT -
Worldwide Emerging Markets Fund ............. 384,147 8.394502 3,224,723 45%
Van Eck WIT -
Worldwide Hard Assets Fund .................. 203,079 14.384055 2,921,100 18%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ............ 261,395 17.178756 4,490,441 8%
Warburg Pincus Trust -
International Equity Portfolio .............. 571,690 12.583549 7,193,889 6%
(Continued)
</TABLE>
29
<PAGE> 30
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Warburg Pincus Trust -
Post Venture Capital Portfolio ............. 56,513 13.559677 766,298 12%
Warburg Pincus Trust -
Small Company Growth Portfolio ............. 714,703 16.552974 11,830,460 6%
Modified Single Premium contracts and
Last Survivor Flexible Premium contracts:
American Century VP -
American Century VP Balanced ............... 43,044 15.259861 656,845 4%
American Century VP - American Century
VP Capital Appreciation .................... 57,027 10.018665 571,334 16%
American Century VP - American Century
VP Income & Growth ......................... 75,882 11.986560 909,564 10%
American Century VP -
American Century VP International .......... 102,991 16.294312 1,678,167 7%
American Century VP -
American Century VP Value .................. 45,649 15.169848 692,488 13%
The Dreyfus Socially Responsible
Growth Fund, Inc. .......................... 69,241 20.950998 1,450,668 13%
Dreyfus Stock Index Fund ...................... 582,226 21.906606 12,754,596 12%
Dreyfus VIF -
Capital Appreciation Portfolio ............. 46,565 14.355616 668,469 8%
Dreyfus VIF -
Growth and Income Portfolio ................ 43,020 14.419552 620,329 11%
Fidelity VIP - Equity-Income Portfolio ........ 447,629 17.389656 7,784,114 13%
Fidelity VIP - Growth Portfolio ............... 428,834 20.586833 8,828,334 14%
Fidelity VIP - High Income Portfolio .......... 325,625 13.163135 4,286,246 8%
Fidelity VIP - Overseas Portfolio ............. 116,931 14.506855 1,696,301 8%
Fidelity VIP-II - Asset Manager Portfolio ..... 95,742 16.104513 1,541,878 5%
Fidelity VIP-II - Contrafund Portfolio ........ 322,250 20.195445 6,507,982 11%
Fidelity VIP-III -
Growth Opportunities Portfolio ............. 71,703 14.594106 1,046,441 6%
Morgan Stanley -
Emerging Markets Debt Portfolio ............ 24,520 7.984920 195,790 13%
Nationwide SAT -
Capital Appreciation Fund .................. 234,456 22.714734 5,325,606 12%
Nationwide SAT -
Government Bond Fund ....................... 137,934 12.477250 1,721,037 (2)%
Nationwide SAT - Money Market Fund ............ 880,464 11.719723 10,318,794 2%
Nationwide SAT - Small Cap Value Fund ......... 52,987 10.639972 563,780 24%
Nationwide SAT - Small Company Fund ........... 174,358 13.425636 2,340,867 8%
Nationwide SAT - Total Return Fund ............ 401,741 19.370171 7,781,792 11%
Neuberger &Berman AMT -
Growth Portfolio ........................... 205,077 15.153921 3,107,721 3%
Neuberger & Berman AMT -
Guardian Portfolio ......................... 22,025 10.979618 241,826 17%
</TABLE>
30
<PAGE> 31
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio ............ 66,075 11.712912 773,931 0%
Neuberger & Berman AMT -
Partners Portfolio ......................... 233,081 17.780231 4,144,234 13%
Oppenheimer VAF - Bond Fund ................... 103,651 12.210918 1,265,674 (2)%
Oppenheimer VAF -
Global Securities Fund ..................... 90,112 17.222212 1,551,928 14%
Oppenheimer VAF - Growth Fund ................. 57,756 15.067640 870,247 16%
Oppenheimer VAF -
Multiple Strategies Fund ................... 53,059 14.832298 786,987 8%
Strong Opportunity Fund II, Inc. .............. 86,553 18.357658 1,588,910 20%
Strong VIF - Strong Discovery Fund II. ........ 18,493 11.167443 206,520 (5)%
Strong VIF -
Strong International Stock Fund II ......... 40,497 9.212641 373,084 11%
Van Eck WIT - Worldwide Bond Fund ............. 18,439 11.285697 208,097 (7)%
Van Eck WIT -
Worldwide Emerging Markets Fund ............ 84,687 8.565350 725,374 46%
Van Eck WIT -
Worldwide Hard Assets Fund ................. 26,833 8.070502 216,556 18%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ........... 55,129 15.927748 878,081 9%
Warburg Pincus Trust -
International Equity Portfolio ............. 122,336 10.937511 1,338,051 7%
Warburg Pincus Trust -
Post Venture Capital Portfolio ............. 8,208 13.835438 113,561 13%
Warburg Pincus Trust -
Small Company Growth Portfolio ............. 172,011 11.786201 2,027,356 7%
========= ========= ---------------
$ 1,020,153,905
===============
</TABLE>
* The period return does not include contract charges satisfied by surrendering
units.
- --------------------------------------------------------------------------------
31
<PAGE> 32
--------------
NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
--------------
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
