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Nationwide(R) VLI
Separate Account-2
June 30, 2000
The BEST of AMERICA(R)
Life Planning Series(R)
2000
SEMI-ANNUAL
REPORT
[NATIONWIDE LOGO]
Nationwide Life Insurance Company
Home Office: Columbus, Ohio
VLOB-12-Z (06/00)
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[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PICTURE]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to bring you
the 2000 semi-annual report of the Nationwide VLI Separate
Account-2.
During the first half of 2000 fixed income and equity markets
took a hiatus from their recent advances. It appears the Federal
Reserve's interest rate hikers are accomplishing the intended
purpose. Recent economic statistics show some moderation in the
areas of home and vehicles sales because of the higher interest
costs. And, there are other favorable indications that the Fed
may yet "glide" the economy to a soft landing. Inflation remains
low. Sustained increases in worker productivity continue to
dampen pricing pressures of an increasingly tight labor pool.
Corporate profitability growth remains viable. An improving
global economy bodes well for U.S. exporting businesses. While
all this provides a positive backdrop, we expect the markets will
continue jittery and volatile during the second half of the year
as uncertainty over further Fed actions persists. However, we
believe patient investors in financial assets will be amply
rewarded when we move beyond this temporary respite.
Nationwide Life was a forerunner in the variable annuity and
variable life insurance business. We continue to develop new and
innovative investment products to better meet your financial
planning and retirement needs. And, we are equally committed to
providing you, our valued customer, the exceptional level of
customer service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
2
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How to Read the Semi-Annual Report
This semi-annual report is a presentation of the variable account as a whole and
only describes the underlying contracts and products of the variable account in
general terms. Please note the variable account may have more than one variable
product available. Such products may have different under- lying mutual funds
available than those available in your contract. Therefore, not all funds listed
in this report may be available in your contract. Please refer to your most
recent account statement for specific information about your investment in the
Nationwide VLI Separate Account-2. Rules and regulations of the United States
Securities and Exchange Commission and recognized conventions of Generally
Accepted Accounting Principals prescribe the format and content of this report.
We also invite you to call our service center at 1-800-547-7548 if you have
questions about your account, or you may access your account using our voice
response unit. And, please visit our web-site at www.bestofamerica.com for
additional information about your contract and to learn more about other
products and services offered by Nationwide Financial.
THE ANNUAL REPORT HAS FOUR MAJOR FINANCIAL SECTIONS:
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNER'S EQUITY
This statement begins on page 4 and lists all of the underlying mutual funds of
the variable account, the number of shares owned, the amount paid for the shares
and their market value as of the close of business on June 30, 2000. The mutual
funds are listed in alphabetical order. The market value of the assets changes
as the underlying mutual funds change in value. As contract owners make exchange
transactions between the funds, the number of shares increases or decreases
accordingly. When money is deposited or withdrawn by a contract owner, shares
are correspondingly purchased or redeemed. The total market value of the funds
is equal to the TOTAL INVESTMENTS of the variable account.
ACCOUNTS RECEIVABLE, if applicable, represents an asset of the variable account
for money market fund shares purchased by contract owners and reinvested
dividend shares added to contract owners' accounts, but not yet added to Total
investments. Total investments plus Accounts receivable equal TOTAL ASSETS of
the variable account.
ACCOUNTS PAYABLE, if applicable, is a liability of the variable account for
money market fund shares redeemed by contract owners' but not yet deducted from
Total investments.
Total assets minus Accounts payable equals CONTRACT OWNERS' EQUITY. A summary of
Contract owners' equity by funds series may be found on page 35. This summary
also includes investment return for the reporting period for each fund series.
STATEMENTS OF OPERATIONS AND STATEMENTS OF CHANGES IN CONTRACT OWNERS' EQUITY
These statements begin on page 7 and present the financial activity of each
underlying mutual fund sub-account of the variable account, for the periods
indicated.
The INVESTMENT ACTIVITY section shows income to the variable account for
reinvested dividends and capital gain distributions paid by the underlying
mutual funds. Also shown are the mortality, expense and administration charges
which are assessed through the daily unit value calculation and which represent
an expense to the variable account and its contract owners. This section also
shows the realized gain or loss as mutual fund shares are sold, and the change
in unrealized gain or loss, which represents the changes in market value of the
underlying fund shares.
The EQUITY TRANSACTIONS section illustrates the receipt of purchase payments, as
new contracts are sold or additional payments made to existing contracts. Also
presented are deductions from the variable account when the contract owners
withdraw money.
The sum of the above two sections represents the NET CHANGE IN CONTRACT OWNERS'
EQUITY which when added to the beginning Contract owners' equity equals Contract
owners' equity at the end of the reporting period.
NOTES TO FINANCIAL STATEMENTS, beginning on page 25, provide further disclosures
about the variable account and its underlying contract provisions.
3
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NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
ASSETS:
Investments at market value:
<S> <C>
American Century VP - American Century VP Balanced (ACVPBal)
772,870 shares (cost $5,954,654). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,842,900
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
1,625,664 shares (cost $22,739,979) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,620,026
American Century VP - American Century VP Income & Growth (ACVPIncGr)
579,396 shares (cost $4,567,180). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,443,966
American Century VP - American Century VP International (ACVPInt)
2,229,995 shares (cost $25,018,892) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25,778,737
American Century VP - American Century VP Value (ACVPValue)
530,088 shares (cost $3,016,268). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,873,079
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGr)
547,532 shares (cost $19,450,662) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,934,132
Dreyfus Stock Index Fund (DryStkIx)
2,907,374 shares (cost $93,091,624) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,538,348
Dreyfus VIF - Appreciation Portfolio (DryVApp)
192,325 shares (cost $7,366,945). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,881,498
Dreyfus VIF - European Equity Portfolio (DryEuroEq)
1,552 shares (cost $24,369) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24,645
Dreyfus VIF - Growth and Income Portfolio (DryVGrInc)
124,819 shares (cost $2,944,416). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,142,942
Fidelity VIP - Equity-Income Portfolio (FidVEqIn)
3,328,466 shares (cost $79,142,024) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76,255,166
Fidelity VIP - Growth Portfolio (FidVGr)
3,657,332 shares (cost $165,145,738). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 188,498,913
Fidelity VIP - High Income Portfolio (FidVHiIn)
2,362,226 shares (cost $25,566,502) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23,716,753
Fidelity VIP - Overseas Portfolio (FidVOvSe)
1,253,684 shares (cost $28,183,418) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,411,418
Fidelity VIP-II - Asset Manager Portfolio (FidVAM)
1,915,915 shares (cost $30,931,321) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31,689,231
Fidelity VIP-II - Contrafund Portfolio (FidVCon)
2,759,818 shares (cost $66,101,392) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,243,828
Fidelity VIP-III - Growth Opportunities Portfolio (FidVGrOp)
338,877 shares (cost $7,315,796). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,984,264
</TABLE>
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<PAGE> 5
<TABLE>
<S> <C>
Janus Aspen Series - Capital Appreciation Portfolio (JanACapApS)
39,044 shares (cost $1,224,141). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,226,778
Janus Aspen Series - Global Technology Portfolio (JanAGlTchS)
130,618 shares (cost $1,254,349) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,282,666
Janus Aspen Series - International Growth Portfolio (JanAIntGrS)
18,833 shares (cost $728,615). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 741,077
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
127,752 shares (cost $906,764) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 940,255
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
1,470,801 shares (cost $37,660,561). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38,034,922
Nationwide SAT - Government Bond Fund (NSATGvtBd)
1,029,613 shares (cost $11,390,277). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,212,490
Nationwide SAT - Mid Cap Index Fund (NSATMidCap)
11,568 shares (cost $156,668). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153,742
Nationwide SAT - Money Market Fund (NSATMMkt)
51,764,147 shares (cost $51,764,147) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,764,147
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
14,653 shares (cost $137,055). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,126
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
8,495 shares (cost $165,133) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175,922
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
641,588 shares (cost $6,714,777) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,922,737
Nationwide SAT - Small Company Fund (NSATSmCo)
1,354,482 shares (cost $31,785,651). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,236,673
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
20,870 shares (cost $445,337). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 448,079
Nationwide SAT - Total Return Fund (NSATTotRtn)
5,122,199 shares (cost $84,488,491). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99,319,437
Neuberger &Berman AMT - Growth Portfolio (NBAMTGro)
1,110,178 shares (cost $40,571,514). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,007,453
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
130,038 shares (cost $2,048,265) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,124,820
Neuberger &Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
322,726 shares (cost $4,294,028) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,063,124
Neuberger &Berman AMT - Partners Portfolio (NBAMTPart)
1,719,304 shares (cost $30,876,808). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,457,281
Oppenheimer Aggressive Growth Fund/VA (OppAggGrVA)
12,666 shares (cost $1,222,111). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,224,047
Oppenheimer Bond Fund/VA (OppBdVA)
1,024,126 shares (cost $12,281,282). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,070,802
Oppenheimer Capital Appreciation Fund/VA (OppCapApVA)
357,665 shares (cost $17,607,125). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18,290,985
Oppenheimer Global Securities Fund/VA (OppGlSecVA)
1,317,567 shares (cost $32,761,976). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42,096,274
</TABLE>
(continued)
5
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NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY, CONTINUED
<TABLE>
<S> <C>
Oppenheimer Main Street Growth & Income Fund/VA (OppMGrInVA)
7,813 shares (cost $181,625) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 182,433
Oppenheimer Multiple Strategies Fund/VA (OppMltStVA)
958,680 shares (cost $15,840,232). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,904,499
Strong Opportunity Fund II, Inc. (StOpp2)
1,657,570 shares (cost $34,829,865). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44,837,265
Strong VIF - Strong Discovery Fund II (StDisc2)
590,606 shares (cost $7,010,132) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,512,509
Strong VIF - Strong International Stock Fund II (StIntStk2)
435,048 shares (cost $6,677,866) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,273,387
Van Eck WIT - Worldwide Bond Fund (VEWwBd)
245,823 shares (cost $2,485,600) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,497,559
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
603,819 shares (cost $8,688,473) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,541,699
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
380,254 shares (cost $4,342,117) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,281,658
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
443,018 shares (cost $5,785,613) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,963,027
Warburg Pincus Trust - Global Post - Venture Capital Portfolio (WPGlPVenCp)
156,543 shares (cost $3,316,474) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,165,307
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
754,234 shares (cost $10,514,943). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,494,529
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
1,119,411 shares (cost $32,453,963). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,033,807
-----------
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,170,497,362
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98,388
-----------
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,170,595,750
ACCOUNTS PAYABLE -
-----------
CONTRACT OWNERS' EQUITY (NOTE 7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,170,595,750
-----------
</TABLE>
See accompanying notes to financial statements.
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NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
Total ACVPBal
------------------------------------------ ----------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................. $ 10,647,691 11,048,944 8,712,917 142,767 104,861 73,602
Mortality and expense charges
(note 3) .......................... (4,466,530) (4,004,752) (3,308,897) (21,765) (23,627) (17,983)
------------ ------------ ------------ -------- -------- --------
Net investment activity ........... 6,181,161 7,044,192 5,404,020 121,002 81,234 55,619
------------ ------------ ------------ -------- -------- --------
Proceeds from mutual fund
shares sold ....................... 457,300,441 564,990,323 346,442,595 737,482 642,219 398,417
Cost of mutual funds sold ............ (404,922,800) (535,031,121) (325,822,763) (787,206) (659,900) (384,342)
------------ ------------ ------------ -------- -------- --------
Realized gain (loss) on
investments ..................... 52,377,641 29,959,202 20,619,832 (49,724) (17,681) 14,075
Change in unrealized gain (loss)
on investments .................... (97,762,251) 23,373,352 11,837,526 (121,933) (577,220) 38,521
------------ ------------ ------------ -------- -------- --------
Net gain (loss) on investments .... (45,384,610) 53,332,554 32,457,358 (171,657) (594,901) 52,596
------------ ------------ ------------ -------- -------- --------
Reinvested capital gains ............. 56,110,445 29,803,192 38,188,195 89,905 723,543 456,397
------------ ------------ ------------ -------- -------- --------
Net change in contract
owners' equity resulting
from operations ............... 16,906,996 90,179,938 76,049,573 39,250 209,876 564,612
------------ ------------ ------------ -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners .............. 64,116,031 85,590,465 120,409,700 347,784 386,488 979,546
Transfers between funds .............. -- -- -- (432,389) 9,176 --
Surrenders ........................... (19,004,953) (13,628,236) (8,014,830) (122,887) (101,327) (12,549)
Death benefits (note 4) .............. (1,300,743) (726,947) (672,575) (1,032) (3,696) (12,669)
Policy loans (net of repayments)
(note 5) .......................... (9,224,226) (9,810,843) (8,069,812) (39,451) (82,228) (25,563)
Deductions for surrender charges
(note 2d) ......................... (1,920,356) (2,572,613) (986,904) (12,417) (19,128) (1,546)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ......... (23,098,964) (22,930,567) (21,601,557) (125,226) (135,301) (19,712)
Asset charges (note 3):
MSP contracts ..................... (306,850) (71,395) -- (2,619) (422) --
LSFP contracts .................... (186,577) (32,376) -- (661) (191) --
------------ ------------ ------------ -------- -------- --------
Net equity transactions ......... 9,073,362 35,817,488 81,064,022 (388,898) 53,371 907,507
------------ ------------ ------------ -------- -------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 25,980,358 125,997,426 157,113,595 (349,648) 263,247 1,472,119
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................ 1,144,615,392 894,156,479 658,587,322 6,192,631 5,562,859 3,711,460
-------------- ------------- ------------ --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD... $1,170,595,750 1,020,153,905 815,700,917 5,842,983 5,826,106 5,183,579
============== ============= ============ ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
ACVPCapAp
----------------------------------------
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................. -- -- --
Mortality and expense charges
(note 3) .......................... (102,710) (50,709) (55,863)
---------- ----------- ----------
Net investment activity ........... (102,710) (50,709) (55,863)
---------- ----------- ----------
Proceeds from mutual fund
shares sold ....................... 9,712,823 12,700,484 4,530,068
Cost of mutual funds sold ............ (6,263,802) (13,388,359) (4,963,656)
---------- ----------- ----------
Realized gain (loss) on
investments ..................... 3,449,021 (687,875) (433,588)
Change in unrealized gain (loss)
on investments .................... (364,842) 2,545,305 (98,390)
---------- ----------- ----------
Net gain (loss) on investments .... 3,084,179 1,857,430 (531,978)
---------- ----------- ----------
Reinvested capital gains ............. 750,781 -- 626,544
---------- ----------- ----------
Net change in contract
owners' equity resulting
from operations ............... 3,732,250 1,806,721 38,703
---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners .............. 1,116,299 1,028,156 100,295
Transfers between funds .............. 4,411,322 (337,205) --
Surrenders ........................... (352,202) (256,633) (152,685)
Death benefits (note 4) .............. (8,440) (10,147) (833)
Policy loans (net of repayments)
(note 5) .......................... (189,036) (107,920) (125,436)
Deductions for surrender charges
(note 2d) ......................... (35,588) (48,445) (18,801)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ......... (456,572) (331,886) (195,713)
Asset charges (note 3):
MSP contracts ..................... (5,206) (4,094) --
LSFP contracts .................... (1,622) (1,857) --
---------- ----------- ----------
Net equity transactions ......... 4,478,955 (70,031) (393,173)
---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY .. 8,211,205 1,736,690 (354,470)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................ 19,440,162 11,594,653 12,118,077
---------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD. 27,651,367 13,331,343 11,763,607
========== =========== ==========
</TABLE>
(Continued)
7
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPIncGr ACVPInt
---------------------------- ------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 25,931 655 -- 31,996 -- 48,574
Mortality and expense charges
(note 3) ........................ (16,144) (13,534) (288) (101,820) (62,999) (46,064)
----------- --------- ------- ---------- ---------- ----------
Net investment activity ......... 9,787 (12,879) (288) (69,824) (62,999) 2,510
----------- --------- ------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ..................... 4,654,387 445,915 290,487 12,336,395 13,731,895 15,617,159
Cost of mutual funds sold .......... (4,369,751) (412,859) (290,790) (8,094,634) (12,697,742) (14,405,140)
----------- --------- ------- ---------- ---------- ----------
Realized gain (loss) on
investments ................... 284,636 33,056 (303) 4,241,761 1,034,153 1,212,019
Change in unrealized gain (loss)
on investments .................. (502,325) 285,105 4,236 (6,567,737) 30,973 218,959
----------- --------- ------- ---------- ---------- ----------
Net gain (loss) on investments .. (217,689) 318,161 3,933 (2,325,976) 1,065,126 1,430,978
----------- --------- ------- ---------- ---------- ----------
Reinvested capital gains ........... -- -- -- 478,387 -- 498,648
----------- --------- ------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations ............. (207,902) 305,282 3,645 (1,917,413) 1,002,127 1,932,136
----------- --------- ------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............ 299,161 256,418 244,934 894,573 917,905 4,760,062
Transfers between funds ............ (271,086) 2,404,105 -- 2,928,133 (369,129) --
Surrenders ......................... (51,493) (5,649) -- (335,220) (124,014) (74,430)
Death benefits (note 4) ............ (25,440) -- -- (42,512) -- (11,587)
Policy loans (net of repayments)
(note 5) ........................ (42,710) (24,771) -- (58,469) (128,672) (52,106)
Deductions for surrender charges
(note 2d) ....................... (5,203) (1,066) -- (33,872) (23,410) (9,165)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....... (70,582) (43,405) -- (393,356) (283,654) (97,701)
Asset charges (note 3):
MSP contracts ................... (2,043) (41) -- (7,808) (647) --
LSFP contracts .................. (1,779) (18) -- (7,449) (293) --
----------- --------- ------- ---------- ---------- ----------
Net equity transactions ....... (171,175) 2,585,573 244,934 2,944,020 (11,914) 4,515,073
----------- --------- ------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY. (379,077) 2,890,855 248,579 1,026,607 990,213 6,447,209
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................... 4,823,083 1,545,640 -- 24,752,338 13,761,213 6,586,196
----------- --------- ------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD. $ 4,444,006 4,436,495 248,579 25,778,945 14,751,426 13,033,405
=========== ========= ======= ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
ACVPValue
------------------------------------
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 34,989 26,285 14,238
Mortality and expense charges
(note 3) ........................ (10,656) (12,751) (9,936)
--------- --------- ---------
Net investment activity ......... 24,333 13,534 4,302
--------- --------- ---------
Proceeds from mutual fund
shares sold ..................... 12,746,083 7,983,936 2,479,537
Cost of mutual funds sold .......... (12,957,521) (7,885,835) (2,351,215)
--------- --------- ---------
Realized gain (loss) on
investments ................... (211,438) 98,101 128,322
Change in unrealized gain (loss)
on investments .................. 100,772 (2,153) (191,778)
--------- --------- ---------
Net gain (loss) on investments .. (110,666) 95,948 (63,456)
--------- --------- ---------
Reinvested capital gains ........... 89,531 249,026 169,984
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations ............. 3,198 358,508 110,830
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............ 231,983 267,319 860,516
Transfers between funds ............ (231,223) 125,952 --
Surrenders ......................... (5,346) (28,880) (43,636)
Death benefits (note 4) ............ -- (2,056) --
Policy loans (net of repayments)
(note 5) ........................ (9,685) 3,128 (20,713)
Deductions for surrender charges
(note 2d) ....................... (540) (5,452) (5,373)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....... (51,958) (68,280) (3,488)
Asset charges (note 3):
MSP contracts ................... (1,314) (378) --
LSFP contracts .................. (1,375) (172) --
--------- --------- ---------
Net equity transactions ....... (69,458) 291,181 787,306
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY. (66,260) 649,689 898,136
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................... 2,939,382 2,713,250 1,715,117
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD. 2,873,122 3,362,939 2,613,253
========= ========= =========
</TABLE>
8
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DrySRGr DryStkIx
----------------------------------------- -------------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 3,233 -- -- 522,388 516,124 394,083
Mortality and expense charges
(note 3) ......................... (77,234) (58,214) (36,017) (404,100) (378,127) (231,915)
------------ ---------- --------- ----------- ----------- ----------
Net investment activity .......... (74,001) (58,214) (36,017) 118,288 137,997 162,168
------------ ---------- --------- ----------- ----------- ----------
Proceeds from mutual fund
shares sold ...................... 3,294,569 13,202,346 8,770,733 10,553,733 10,380,315 13,290,398
Cost of mutual funds sold ........... (2,698,266) (11,705,828) (8,106,177) (7,624,762) (7,953,378) (9,737,886)
------------ ---------- --------- ----------- ----------- ----------
Realized gain (loss) on
investments .................... 596,303 1,496,518 664,556 2,928,971 2,426,937 3,552,512
Change in unrealized gain (loss)
on investments ................... (50,975) 112,962 745,098 (4,181,387) 7,018,035 4,563,240
------------ ---------- --------- ----------- ----------- ----------
Net gain (loss) on investments ... 545,328 1,609,480 1,409,654 (1,252,416) 9,444,972 8,115,752
------------ ---------- --------- ----------- ----------- ----------
Reinvested capital gains ............ -- -- -- 121,999 397,987 97,930
------------ ---------- --------- ----------- ----------- ----------
Net change in contract
owners' equity resulting
from operations .............. 471,327 1,551,266 1,373,637 (1,012,129) 9,980,956 8,375,850
------------ ---------- --------- ----------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 1,293,957 1,358,931 1,211,880 6,862,909 6,744,152 13,488,706
Transfers between funds ............. 2,035,132 1,532,743 -- (3,075,606) 9,736,434 --
Surrenders .......................... (335,954) (157,096) (74,911) (1,381,645) (1,338,550) (286,427)
Death benefits (note 4) ............. (12,138) (10,178) (926) (96,711) (57,388) (390,115)
Policy loans (net of repayments)
(note 5) ......................... (358,769) (282,983) (83,393) (1,024,693) (739,921) (409,581)
Deductions for surrender charges
(note 2d) ........................ (33,947) (29,655) (9,224) (139,608) (252,679) (35,269)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (516,195) (433,164) (55,835) (2,087,192) (1,969,101) (478,514)
Asset charges (note 3):
MSP contracts .................... (4,793) (1,424) -- (27,281) (4,855) --
LSFP contracts ................... (3,470) (645) -- (29,747) (2,202) --
------------ ---------- --------- ----------- ----------- ----------
Net equity transactions ........ 2,063,823 1,976,529 987,591 (999,574) 12,115,890 11,888,800
------------ ---------- --------- ----------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 2,535,150 3,527,795 2,361,228 (2,011,703) 22,096,846 20,264,650
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 19,399,304 12,060,375 7,215,240 112,551,441 79,041,506 43,989,896
------------ ---------- --------- ----------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 21,934,454 15,588,170 9,576,468 110,539,738 101,138,352 64,254,546
============ ========== ========= =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
DryVApp
-------------------------------------
2000 1999 1998
---- ---- ----
<S> C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 382 407 345
Mortality and expense charges
(note 3) ......................... (29,394) (29,186) (7,936)
--------- --------- ---------
Net investment activity .......... (29,012) (28,779) (7,591)
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 2,014,539 4,308,604 10,071,068
Cost of mutual funds sold ........... 1,879,480) (4,024,862) (9,782,670)
--------- --------- ---------
Realized gain (loss) on
investments .................... 135,059 283,742 288,398
Change in unrealized gain (loss)
on investments ................... 76,037 208,670 59,122
--------- --------- ---------
Net gain (loss) on investments ... 211,096 492,412 347,520
--------- --------- ---------
Reinvested capital gains ............ -- -- 1,151
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 182,084 463,633 341,080
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 591,595 599,510 3,120,275
Transfers between funds ............. (477,526) 2,347,390 --
Surrenders .......................... (83,758) (8,571) (8,948)
Death benefits (note 4) ............. (8,995) -- --
Policy loans (net of repayments)
(note 5) ......................... (48,863) (80,232) (4,391)
Deductions for surrender charges
(note 2d) ........................ (8,463) (1,618) (1,102)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (150,855) (136,974) (2,876)
Asset charges (note 3):
MSP contracts .................... (1,436) 58 --
LSFP contracts ................... (2,383) 27 --
--------- --------- ---------
Net equity transactions ........ (190,684) 2,719,590 3,102,958
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY . (8,600) 3,183,223 3,444,038
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 7,890,198 4,669,084 431,596
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD . 7,881,598 7,852,307 3,875,634
========= ========= =========
</TABLE>
(Continued)
9
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
DryEuroEq DryVGrInc
------------------------------ -----------------------------------
2000 1999 1998 2000 1999 1998
-------- --------- --------- ---------- --------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- 8,498 11,290 8,240
Mortality and expense charges
(note 3) ........................ (16) -- -- (9,828) (9,723) (7,149)
-------- --------- --------- --------- --------- ----------
Net investment activity ......... (16) -- -- (1,330) 1,567 1,091
-------- --------- --------- --------- --------- ----------
Proceeds from mutual fund
shares sold ..................... 9,761 -- -- 190,624 806,913 2,125,660
Cost of mutual funds sold .......... (9,685) -- -- (155,289) (813,739) (2,061,669)
-------- --------- --------- --------- --------- ----------
Realized gain (loss) on
investments ................... 76 -- -- 35,335 (6,826) 63,991
Change in unrealized gain (loss)
on investments .................. 276 -- -- (68,777) 254,120 (27,858)
-------- --------- --------- --------- --------- ----------
Net gain (loss) on investments .. 352 -- -- (33,442) 247,294 36,133
-------- --------- --------- --------- --------- ----------
Reinvested capital gains ........... -- -- -- 729 -- 29,897
-------- --------- --------- --------- --------- ----------
Net change in contract
owners' equity resulting
from operations ............. 336 -- -- (34,043) 248,861 67,121
-------- --------- --------- --------- --------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............ 127 -- -- 177,776 235,133 693,027
Transfers between funds ............ 24,265 -- -- 267,217 40,844 --
Surrenders ......................... -- -- -- (20,894) (14,294) (25,517)
Death benefits (note 4) ............ -- -- -- -- (18,064) --
Policy loans (net of repayments)
(note 5) ........................ -- -- -- (23,096) (7,391) (5,687)
Deductions for surrender charges
(note 2d) ....................... -- -- -- (2,111) (2,698) (3,142)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....... (84) -- -- (64,718) (64,163) (1,467)
Asset charges (note 3):
MSP contracts ................... -- -- -- (1,959) (323) --
LSFP contracts .................. (2) -- -- (1,057) (147) --
-------- --------- --------- --------- --------- ----------
Net equity transactions ....... 24,306 -- -- 331,158 168,897 657,214
-------- --------- --------- --------- --------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY. 24,642 -- -- 297,115 417,758 724,335
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................... -- -- -- 2,845,869 2,213,966 1,202,853
-------- --------- --------- --------- --------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD. $ 24,642 -- -- 3,142,984 2,631,724 1,927,188
======== ========= ========= ========= ========= ===========
<CAPTION>
FidVEqIn
----------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 1,394,973 1,233,625 997,915
Mortality and expense charges
(note 3) ........................ (315,315) (379,568) (359,708)
----------- ----------- -----------
Net investment activity ......... 1,079,658 854,057 638,207
----------- ----------- -----------
Proceeds from mutual fund
shares sold ..................... 22,178,967 16,337,330 2,422,015
Cost of mutual funds sold .......... (19,036,484) (11,368,717) (1,533,056)
----------- ----------- -----------
Realized gain (loss) on
investments ................... 3,142,483 4,968,613 888,959
Change in unrealized gain (loss)
on investments .................. (12,517,632) 1,552,335 2,123,447
----------- ----------- -----------
Net gain (loss) on investments .. (9,375,149) 6,520,948 3,012,406
----------- ------------ -----------
Reinvested capital gains ........... 5,255,479 2,726,961 3,551,403
--------- ----------- -----------
Net change in contract
owners' equity resulting
from operations ............. (3,040,012) 10,101,966 7,202,016
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............ 4,429,516 5,429,922 9,479,863
Transfers between funds ............ (8,803,011) (325,012) --
Surrenders ......................... (1,255,894) (1,079,731) (573,862)
Death benefits (note 4) ............ (54,888) (69,516) (1,981)
Policy loans (net of repayments)
(note 5) ........................ (401,600) (557,070) (605,617)
Deductions for surrender charges
(note 2d) ....................... (126,902) (203,821) (70,662)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....... (1,505,431) (1,903,537) (2,765,688)
Asset charges (note 3):
MSP contracts ................... (19,480) (6,663) --
LSFP contracts .................. (9,252) (3,022) --
----------- ----------- -----------
Net equity transactions ....... (7,746,942) 1,281,550 5,462,053
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY. (10,786,954) 11,383,516 12,664,069
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................... 87,067,928 83,564,278 69,728,573
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD. 76,280,974 94,947,794 82,392,642
=========== =========== ===========
</TABLE>
10
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVGr FidVHiIn
----------------------------------------- --------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 196,483 215,538 398,089 1,693,393 2,570,090 1,930,736
Mortality and expense charges
(note 3) ......................... (729,352) (559,667) (381,285) (90,283) (121,804) (124,734)
------------- ----------- ---------- ---------- ---------- ----------
Net investment activity .......... (532,869) (344,129) 16,804 1,603,110 2,448,286 1,806,002
------------- ----------- ---------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 9,999,116 74,255,400 29,018,085 7,530,923 26,464,932 4,053,136
Cost of mutual funds sold ........... (7,939,979) (62,130,274) (25,477,997) (8,013,467) (29,328,722) (3,792,211)
------------- ----------- ---------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... 2,059,137 12,125,126 3,540,088 (482,544) (2,863,790) 260,925
Change in unrealized gain (loss)
on investments ................... (12,750,495) (8,528,396) 425,707 (2,437,706) 2,388,072 (2,153,392)
------------- ----------- ---------- ---------- ---------- ----------
Net gain (loss) on investments ... (10,691,358) 3,596,730 3,965,795 (2,920,250) (475,718) (1,892,467)
------------- ----------- ---------- ---------- ---------- ----------
Reinvested capital gains ............ 19,550,081 13,551,946 10,413,177 -- 96,078 1,226,822
------------- ----------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. 8,325,854 16,804,547 14,395,776 (1,317,140) 2,068,646 1,140,357
------------- ----------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 7,943,065 8,009,544 8,952,047 1,463,730 2,053,632 6,608,088
Transfers between funds ............. 3,321,120 11,610,724 -- (1,265,043) (3,072,703) --
Surrenders .......................... (2,523,478) (1,730,082) (785,432) (405,504) (318,121) (139,130)
Death benefits (note 4) ............. (169,499) (105,907) (28,916) (150,536) (28,934) (6,340)
Policy loans (net of repayments)
(note 5) ......................... (1,713,602) (1,649,512) (549,848) (44,688) (162,528) (192,807)
Deductions for surrender charges
(note 2d) ........................ (254,985) (326,589) (96,714) (40,974) (60,052) (17,132)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (3,432,518) (3,004,276) (1,651,805) (512,558) (627,914) (1,777,126)
Asset charges (note 3):
MSP contracts .................... (35,236) (26,242) -- (12,110) (8,999) --
LSFP contracts ................... (16,215) (11,899) -- (4,027) (4,080) --
------------- ----------- ---------- ---------- ---------- ----------
Net equity transactions ........ 3,118,652 12,765,761 5,839,332 (971,710) (2,229,699) 4,475,553
------------- ----------- ---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 11,444,506 29,570,308 20,235,108 (2,288,850) (161,053) 5,615,910
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 177,055,951 117,142,759 74,962,498 26,005,933 27,354,464 25,162,314
------------- ----------- ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 188,500,457 146,713,067 95,197,606 23,717,083 27,193,411 30,778,224
============= =========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
FidVOvSe
--------------------------------------------
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 425,125 332,184 372,727
Mortality and expense charges
(note 3) ......................... (122,380) (98,384) (102,878)
---------- ---------- ----------
Net investment activity .......... 302,745 233,800 269,849
---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 5,677,873 19,160,889 14,455,861
Cost of mutual funds sold ........... (4,785,854) (18,967,050) (13,197,934)
---------- ---------- ----------
Realized gain (loss) on
investments .................... 892,019 193,839 1,257,927
Change in unrealized gain (loss)
on investments ................... (5,522,151) 839,608 386,106
---------- ---------- ----------
Net gain (loss) on investments ... (4,630,132) 1,033,447 1,644,033
---------- ---------- ----------
Reinvested capital gains ............ 2,677,139 535,780 1,098,565
---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. (1,650,248) 1,803,027 3,012,447
---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 1,281,240 1,422,825 2,193,341
Transfers between funds ............. 346,775 (119,455) --
Surrenders .......................... (610,030) (284,830) (218,321)
Death benefits (note 4) ............. (6,254) (828) (5,293)
Policy loans (net of repayments)
(note 5) ......................... (255,163) (208,962) (231,665)
Deductions for surrender charges
(note 2d) ........................ (61,641) (53,767) (26,883)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (472,176) (458,244) (780,983)
Asset charges (note 3):
MSP contracts .................... (5,527) (1,813) --
LSFP contracts ................... (4,092) (822) --
---------- ---------- ----------
Net equity transactions ........ 213,132 294,104 930,196
---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . (1,437,116) 2,097,131 3,942,643
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 30,848,846 22,223,409 19,093,154
---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . 29,411,730 24,320,540 23,035,797
========== ========== ==========
</TABLE>
(Continued)
11
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
FidVAM FidVCon
-------------------------------------------- ----------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 1,031,299 1,040,155 894,977 244,158 261,343 208,958
Mortality and expense charges
(note 3) ......................... (135,979) (139,133) (142,762) (268,014) (240,504) (145,059)
------------ ---------- ---------- ---------- ---------- ----------
Net investment activity .......... 895,320 901,022 752,215 (23,856) 20,839 63,899
------------ ---------- ---------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 2,257,981 2,649,925 1,593,036 4,229,821 17,757,473 1,380,112
Cost of mutual funds sold ........... (1,824,621) (2,115,072) (1,298,529) (3,284,707) (11,558,481) (962,695)
------------ ---------- ---------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... 433,360 534,853 294,507 945,114 6,198,992 417,417
Change in unrealized gain (loss)
on investments ................... (4,136,199) (1,230,877) (1,236,595) (11,000,361) (2,418,970) 3,079,468
------------ ---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments ... (3,702,839) (696,024) (942,088) (10,055,247) 3,780,022 3,496,885
------------ ---------- ---------- ---------- ---------- ----------
Reinvested capital gains ............ 2,429,670 1,317,530 2,684,931 8,862,945 1,916,516 1,537,336
------------ ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. (377,849) 1,522,528 2,495,058 (1,216,158) 5,717,377 5,098,120
------------ ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 1,244,248 1,647,919 1,439,623 3,837,418 4,372,871 6,402,896
Transfers between funds ............. (924,372) (1,004,031) -- (1,104,072) 5,120,838 --
Surrenders .......................... (567,376) (411,923) (627,160) (1,365,620) (671,985) (234,804)
Death benefits (note 4) ............. (2,142) (38,265) (1,045) (55,531) (12,543) (17,032)
Policy loans (net of repayments)
(note 5) ......................... (173,537) (367,797) 3,401 (591,250) (387,338) (276,399)
Deductions for surrender charges
(note 2d) ........................ (57,331) (77,759) (77,225) (137,989) (126,851) (28,913)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (552,527) (616,347) (232,307) (1,338,124) (1,303,533) (195,246)
Asset charges (note 3):
MSP contracts .................... (5,718) 118 -- (19,921) (2,685) --
LSFP contracts ................... (1,465) 53 -- (11,340) (1,217) --
------------ ---------- ---------- ---------- ---------- ----------
Net equity transactions ........ (1,040,220) (868,032) 505,287 (786,429) 6,987,557 5,650,502
------------ ---------- ---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . (1,418,069) 654,496 3,000,345 (2,002,587) 12,704,934 10,748,622
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 33,107,722 32,253,287 28,264,549 71,247,015 49,850,235 28,807,807
------------ ---------- ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 31,689,653 32,907,783 31,264,894 69,244,428 62,555,169 39,556,429
============ ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
FidVGrOp
------------------------------------------
2000 1999 1998
---- ---- ----
<S> C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 77,263 58,964 20,203
Mortality and expense charges
(note 3) ......................... (21,002) (27,142) (11,337)
--------- --------- ---------
Net investment activity .......... 56,261 31,822 8,866
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 3,942,143 1,844,238 997,348
Cost of mutual funds sold ........... 4,043,624) (1,564,325) (958,638)
--------- --------- ---------
Realized gain (loss) on
investments .................... (101,481) 279,913 38,710
Change in unrealized gain (loss)
on investments ................... (594,322) (14,590) 116,037
--------- --------- ---------
Net gain (loss) on investments ... (695,803) 265,323 154,747
--------- --------- ---------
Reinvested capital gains ............ 391,834 110,237 70,230
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. (247,708) 407,382 233,843
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 508,076 557,107 2,682,598
Transfers between funds ............. 309,440 217,982 --
Surrenders .......................... (111,294) (36,661) (17,235)
Death benefits (note 4) ............. (3,952) -- (9,221)
Policy loans (net of repayments)
(note 5) ......................... 2,280 (68,417) (3,587)
Deductions for surrender charges
(note 2d) ........................ (11,246) (6,921) (2,122)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (141,512) (153,039) (7,621)
Asset charges (note 3):
MSP contracts .................... (2,065) (1,376) --
LSFP contracts ................... (1,619) (624) --
--------- --------- ---------
Net equity transactions ........ 548,108 508,051 2,642,812
--------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 300,400 915,433 2,876,655
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 6,683,909 5,888,280 1,109,019
--------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD . 6,984,309 6,803,713 3,985,674
========= ========= =========
</TABLE>
12
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
JanACapApS JanAGlTchS JanAIntGrS
------------------------ -------------------- ---------------------
2000 1999 1998 2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................... $ 494 -- -- -- -- -- -- -- --
Mortality and expense charges
(note 3) ........................................ (694) -- -- (723) -- -- (425) -- --
----------- --- --- --------- --- --- ------- --- ---
Net investment activity ......................... (200) -- -- (723) -- -- (425) -- --
----------- --- --- --------- --- --- ------- --- ---
Proceeds from mutual fund
shares sold ..................................... 216,579 -- -- 279,415 -- -- 81,146 -- --
Cost of mutual funds sold .......................... (216,551) -- -- (263,831) -- -- (85,091) -- --
----------- --- --- --------- --- --- ------- --- ---
Realized gain (loss) on
investments ................................... 28 -- -- 15,584 -- -- (3,945) -- --
Change in unrealized gain (loss)
on investments .................................. 2,637 -- -- 28,318 -- -- 12,462 -- --
----------- --- --- --------- --- --- ------- --- ---
Net gain (loss) on investments .................. 2,665 -- -- 43,902 -- -- 8,517 -- --
----------- --- --- --------- --- --- ------- --- ---
Reinvested capital gains ........................... -- -- -- -- -- -- -- -- --
----------- --- --- --------- --- --- ------- --- ---
Net change in contract
owners' equity resulting
from operations ............................. 2,465 -- -- 43,179 -- -- 8,092 -- --
----------- --- --- --------- --- --- ------- --- ---
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............................ 13,465 - -- 17,841 -- -- 15,372 -- --
Transfers between funds ............................ 1,224,503 -- -- 1,229,736 -- -- 720,133 -- --
Surrenders ......................................... -- -- -- -- -- -- -- -- --
Death benefits (note 4) ............................ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ........................................ (4,061) -- -- (420) -- -- 41 -- --
Deductions for surrender charges
(note 2d) ....................................... -- -- -- -- -- -- -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....................... (9,381) -- -- (7,479) -- -- (2,455) -- --
Asset charges (note 3):
MSP contracts ................................... (155) -- -- (150) -- -- (102) -- --
LSFP contracts .................................. (53) -- -- (44) -- -- -- -- --
----------- --- --- --------- --- --- ------- --- ---
Net equity transactions ....................... 1,224,318 -- -- 1,239,484 -- -- 732,989 -- --
----------- --- --- --------- --- --- ------- --- ---
NET CHANGE IN CONTRACT OWNERS' EQUITY ................ 1,226,783 -- -- 1,282,663 -- -- 741,081 -- --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................................... -- -- -- -- -- -- -- -- --
----------- --- --- --------- --- --- ------- --- ---
CONTRACT OWNERS' EQUITY END OF PERIOD ................ $ 1,226,783 -- -- 1,282,663 -- -- 741,081 -- --
=========== === === ========= === === ======= === ===
</TABLE>
(Continued)
13
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
MSEmMkt NSATCapAp
------------------------------------------ ----------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- -- 64,829 123,887 121,805
Mortality and expense charges
(note 3) ......................... (3,262) (1,859) (1,414) (136,677) (177,391) (111,697)
----------- ------- ------- ---------- ---------- ----------
Net investment activity .......... (3,262) (1,859) (1,414) (71,848) (53,504) 10,108
----------- ------- ------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 585,958 776,751 1,007,212 6,768,423 10,204,170 24,884,337
Cost of mutual funds sold ........... (567,141) (780,258) (990,693) (6,877,474) (9,166,296) (22,114,759)
----------- ------- ------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... 18,817 (3,507) 16,519 (109,051) 1,037,874 2,769,578
Change in unrealized gain (loss)
on investments ................... 35,504 52,963 (32,273) 94,663 3,893,623 1,558,683
----------- ------- ------- ---------- ---------- ----------
Net gain (loss) on investments ... 54,321 49,456 (15,754) (14,388) 4,931,497 4,328,261
----------- ------- ------- ---------- ---------- ----------
Reinvested capital gains ............ -- -- -- -- -- --
----------- ------- ------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. 51,059 47,597 (17,168) (86,236) 4,877,993 4,338,369
----------- ------- ------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 43,907 51,024 135,616 2,843,926 3,206,546 6,323,233
Transfers between funds ............. 169,982 160,959 -- (5,632,319) 577,528 --
Surrenders .......................... (8,688) (691) -- (711,002) (484,580) (158,780)
Death benefits (note 4) ............. (3,364) -- (9) (53,729) (1,084) (5,133)
Policy loans (net of repayments)
(note 5) ......................... 2,881 (6,755) (2,802) (381,556) (406,011) (360,416)
Deductions for surrender charges
(note 2d) ........................ (878) (130) -- (71,843) (91,475) (19,551)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (14,983) (10,842) (535) (1,024,119) (1,229,348) (407,187)
Asset charges (note 3):
MSP contracts .................... (249) (164) -- (11,072) (2,826) --
LSFP contracts ................... (802) (74) -- (8,000) (1,281) --
----------- ------- ------- ---------- ---------- ----------
Net equity transactions ........ 187,806 193,327 132,270 (5,049,714) 1,567,469 5,372,166
----------- ------- ------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 238,865 240,924 115,102 (5,135,950) 6,445,462 9,710,535
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 701,398 340,166 251,886 43,171,073 41,283,344 21,752,456
----------- ------- ------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 940,263 581,090 366,988 38,035,123 47,728,806 31,462,991
=========== ======= ======= ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
NSATGvtBd
-----------------------------------------
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 336,280 410,523 277,274
Mortality and expense charges
(note 3) ......................... (49,928) (69,481) (51,167)
---------- ---------- ---------
Net investment activity .......... 286,352 341,042 226,107
---------- ---------- ---------
Proceeds from mutual fund
shares sold ...................... 5,684,298 23,880,721 11,696,556
Cost of mutual funds sold ........... (5,906,148) (24,524,311) (11,614,793)
---------- ---------- ---------
Realized gain (loss) on
investments .................... (221,850) (643,590) 81,763
Change in unrealized gain (loss)
on investments ................... 332,542 (72,114) 20,571
---------- ---------- ---------
Net gain (loss) on investments ... 110,692 (715,704) 102,334
---------- ---------- ---------
Reinvested capital gains ............ -- -- --
---------- ---------- ---------
Net change in contract
owners' equity resulting
from operations .............. 397,044 (374,662) 328,441
---------- ---------- ---------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 372,276 480,582 1,639,555
Transfers between funds ............. (2,462,597) 686,697 --
Surrenders .......................... (137,220) (141,969) (122,655)
Death benefits (note 4) ............. (3,333) (2,413) (2,663)
Policy loans (net of repayments)
(note 5) ......................... (83,357) (183,253) (253,465)
Deductions for surrender charges
(note 2d) ........................ (13,865) (26,800) (15,103)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (211,364) (257,303) (739,318)
Asset charges (note 3):
MSP contracts .................... (4,902) (1,180) --
LSFP contracts ................... (1,913) (535) --
---------- ---------- ---------
Net equity transactions ........ (2,546,275) 553,826 506,351
---------- ---------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY . (2,149,231) 179,164 834,792
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 13,361,909 14,057,773 9,022,990
---------- ---------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD . 11,212,678 14,236,937 9,857,782
========== ========== =========
</TABLE>
14
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMidCap NSATMMkt NSATMSecBd
------------ ---------------------- ------------------------------ ----------------
2000 1999 1998 2000 1999 1998 2000 1999 1998
---- --------- ---- ---- ---- ---- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 166 -- -- 1,493,296 1,143,390 1,169,613 1,927 -- --
Mortality and expense charges
(note 3) ......................... (59) -- -- (213,075) (231,890) (195,090) (47) -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Net investment activity .......... 107 -- -- 1,280,221 911,500 974,523 1,880 -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Proceeds from mutual fund
shares sold ...................... 228 -- -- 153,584,066 129,456,166 102,312,184 11,259 -- --
Cost of mutual funds sold ........... (223) -- -- (153,584,066) (129,456,166) (102,312,184) (11,199) -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Realized gain (loss) on
investments .................... 5 -- -- -- -- -- 60 -- --
Change in unrealized gain (loss)
on investments ................... (2,927) -- -- -- -- -- (928) -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Net gain (loss) on investments ... (2,922) -- -- -- -- -- (868) -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Reinvested capital gains ............ -- -- -- -- -- -- -- -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Net change in contract
owners' equity resulting
from operations .............. (2,815) -- -- 1,280,221 911,500 974,523 1,012 -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 369 -- -- 6,114,635 22,646,556 6,293,192 94 -- --
Transfers between funds ............. 156,516 -- -- (7,742,197) (13,212,708) -- 135,143 -- --
Surrenders .......................... -- -- -- (2,341,166) (1,841,711) (1,363,346) -- -- --
Death benefits (note 4) ............. -- -- -- (12,020) (9,090) -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (88,608) (1,434,449) (701,509) -- -- --
Deductions for surrender charges
(note 2d) ........................ -- -- -- (236,563) (347,661) (167,875) -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (332) -- -- (1,075,713) (1,347,671) (2,586,581) (112) -- --
Asset charges (note 3):
MSP contracts .................... -- -- -- (23,760) (12,685) -- (13) -- --
LSFP contracts ................... (2) -- -- (14,711) (5,752) -- -- -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
Net equity transactions ........ 156,551 -- -- (5,420,103) 4,434,829 1,473,881 135,112 -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
NET CHANGE IN CONTRACT OWNERS' EQUITY . 153,736 -- -- (4,139,882) 5,346,329 2,448,404 136,124 -- --
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... -- -- -- 55,937,112 47,514,985 44,437,799 -- -- --
------------ --- --- ------------ ------------ ------------ ------- --- ---
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 153,736 -- -- 51,797,230 52,861,314 46,886,203 136,124 -- --
============ === === ============ ============ ============ ======= === ===
</TABLE>
(Continued)
15
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATSmCapG NSATSmCapV
-------------------------------------- -------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ -- -- -- -- -- --
Mortality and expense charges
(note 3) ......................... (74) -- -- (19,582) (7,740) (9)
---------- ---------- ---------- ---------- ---------- --------
Net investment activity .......... (74) -- -- (19,582) (7,740) (9)
---------- ---------- ---------- ---------- ---------- --------
Proceeds from mutual fund
shares sold ...................... 84 -- -- 1,874,962 24,946,574 57,189
Cost of mutual funds sold ........... (90) -- -- (1,863,662) (24,609,841) (58,378)
---------- ---------- ---------- ---------- ---------- --------
Realized gain (loss) on
investments .................... (6) -- -- 11,300 336,733 (1,189)
Change in unrealized gain (loss)
on investments ................... 10,790 -- -- 354,545 81,911 (1,071)
---------- ---------- ---------- ---------- ---------- --------
Net gain (loss) on investments ... 10,784 -- -- 365,845 418,644 (2,260)
---------- ---------- ---------- ---------- ---------- --------
Reinvested capital gains ............ -- -- -- -- 39,519 --
---------- ---------- ---------- ---------- ---------- --------
Net change in contract
owners' equity resulting
from operations .............. 10,710 -- -- 346,263 450,423 (2,269)
---------- ---------- ---------- ---------- ---------- --------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 2,464 -- -- 148,244 87,410 102,772
Transfers between funds ............. 164,639 -- -- 3,499,689 525,988 --
Surrenders .......................... -- -- -- (39,507) (4,465) --
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (46,649) (3,030) --
Deductions for surrender charges
(note 2d) ........................ -- -- -- (3,992) (843) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,854) -- -- (954) (20,313) --
Asset charges (note 3):
MSP contracts .................... (49) -- -- (1,807) (18,934) --
LSFP contracts ................... (1) -- -- (2,823) (8,586) --
---------- ---------- ---------- ---------- ---------- --------
Net equity transactions ........ 165,199 -- -- 3,552,201 557,227 102,772
---------- ---------- ---------- ---------- ---------- --------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 175,909 -- -- 3,898,464 1,007,650 100,503
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... -- -- -- 3,023,167 840,622 --
---------- ---------- ---------- ---------- ---------- --------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 175,909 -- -- 6,921,631 1,848,272 100,503
========== ========== ========== ========== ========== ========
<CAPTION>
NSATSmCo
------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 8,275 -- --
Mortality and expense charges
(note 3) ......................... (111,053) (69,626) (63,165)
----------- ---------- ----------
Net investment activity .......... (102,778) (69,626) (63,165)
----------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 23,345,702 8,731,250 4,403,010
Cost of mutual funds sold ........... (15,223,525) (9,214,647) (4,280,792)
----------- ---------- ----------
Realized gain (loss) on
investments .................... 8,122,177 (483,397) 122,218
Change in unrealized gain (loss)
on investments ................... (6,349,896) 1,749,918 746,208
----------- ---------- ----------
Net gain (loss) on investments ... 1,772,281 1,266,521 868,426
----------- ---------- ----------
Reinvested capital gains ............ -- -- --
----------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. 1,669,503 1,196,895 805,261
----------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 1,313,025 1,665,406 2,323,502
Transfers between funds ............. 4,138,091 (1,123,943) --
Surrenders .......................... (279,870) (237,573) (143,659)
Death benefits (note 4) ............. (81,053) (22,618) (17,515)
Policy loans (net of repayments)
(note 5) ......................... (285,259) (135,113) (127,488)
Deductions for surrender charges
(note 2d) ........................ (28,280) (44,847) (17,689)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (558,463) (445,280) (19,908)
Asset charges (note 3):
MSP contracts .................... (11,631) 5,989 --
LSFP contracts ................... (7,790) 2,715 --
----------- ---------- ----------
Net equity transactions ........ 4,198,770 (335,264) 1,997,243
----------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 5,868,273 861,631 2,802,504
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 26,368,753 17,495,277 13,679,771
----------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . 32,237,026 18,356,908 16,482,275
========== ========== ==========
</TABLE>
16
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NSATStrGro NSATTotRtn NBAMTGro
--------------- --------------------------------- -------------------------------------
2000 1999 1998 2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................$ -- -- -- 266,511 401,272 475,135 -- -- --
Mortality and expense charges
(note 3) ......................... (259) -- -- (373,477) (409,894) (358,937) (159,989) (90,347) (88,537)
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Net investment activity .......... (259) -- -- (106,966) (8,622) 116,198 (159,989) (90,347) (88,537)
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 261,447 -- -- 9,489,928 4,507,318 13,264,954 18,448,395 39,409,448 17,314,434
Cost of mutual funds sold ........... (240,008) -- -- (6,356,817) (2,779,291) (7,824,001) (11,965,948) (39,719,323)(18,622,980)
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... 21,439 -- -- 3,133,111 1,728,027 5,440,953 6,482,447 (309,875) (1,308,546)
Change in unrealized gain (loss)
on investments ................... 2,741 -- -- (367,393) 8,405,203 5,583,635 (5,204,353) (194,817) (585,856)
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Net gain (loss) on investments ... 24,180 -- -- 2,765,718 10,133,230 11,024,588 1,278,094 (504,692) (1,894,402)
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Reinvested capital gains ............ -- -- -- -- 46,309 -- 3,211,533 1,124,154 4,778,935
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. 23,921 -- -- 2,658,752 10,170,917 11,140,786 4,329,638 529,115 2,795,996
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 3,404 -- -- 6,333,894 7,523,389 18,143,806 1,414,184 1,505,298 1,215,115
Transfers between funds ............. 423,242 -- -- (7,166,926) (1,685,456) -- 9,034,524 (789,610) --
Surrenders .......................... -- -- -- (1,999,612) (1,265,140) (992,942) (519,793) (308,656) (181,476)
Death benefits (note 4) ............. -- -- -- (218,219) (47,899) (83,810) (30,718) (6,700) (3,257)
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (1,254,590) (1,213,965) (994,765) (401,359) (195,283) (853,967)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (202,051) (238,821) (122,265) (52,523) (58,265) (22,346)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (2,368) -- -- (2,829,007) (3,232,868) (8,484,508) (823,679) (540,342) (184,523)
Asset charges (note 3):
MSP contracts .................... (123) -- -- (21,576) (8,187) -- (9,899) 24,679 --
LSFP contracts ................... -- -- -- (10,180) (3,712) -- (5,392) 11,190 --
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
Net equity transactions ........ 424,155 -- -- (7,368,267) (172,659) 7,465,516 8,605,345 (357,689) (30,454)
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . 448,076 -- -- (4,709,515) 9,998,258 18,606,302 12,934,983 171,426 2,765,542
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... -- -- -- 104,030,242 99,115,362 74,640,126 31,072,683 24,511,722 17,545,164
--------- --- --- ----------- ----------- ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD .$ 448,076 -- -- 99,320,727 109,113,620 93,246,428 44,007,666 24,683,148 20,310,706
========= === === =========== =========== ========== ========== ========== ==========
</TABLE>
(Continued)
17
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTGuard NBAMTLMat
------------------------------------------ ----------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ 12,425 4,569 -- 306,913 277,113 365,591
Mortality and expense charges
(note 3) ......................... (7,523) (6,206) (26) (16,517) (21,849) (28,663)
----------- --------- ------- --------- --------- ---------
Net investment activity .......... 4,902 (1,637) (26) 290,396 255,264 336,928
----------- --------- ------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 2,320,212 6,846,821 1,458 1,211,186 818,576 1,816,971
Cost of mutual funds sold ........... (2,266,008) (6,716,500) (1,527) (1,337,560) (861,356) (1,867,186)
----------- --------- ------- --------- --------- ---------
Realized gain (loss) on
investments .................... 54,204 130,321 (69) (126,374) (42,780) (50,215)
Change in unrealized gain (loss)
on investments ................... (20,877) 37,316 (1,307) (99,868) (216,481) (169,138)
----------- --------- ------- --------- --------- ---------
Net gain (loss) on investments ... 33,327 167,637 (1,376) (226,242) (259,261) (219,353)
----------- --------- ------- --------- --------- ---------
Reinvested capital gains ............ -- -- -- -- -- --
----------- --------- ------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 38,229 166,000 (1,402) 64,154 (3,997) 117,575
----------- --------- ------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 162,390 89,296 160,006 137,124 127,955 (163,038)
Transfers between funds ............. (253,821) 1,041,284 -- (919,572) (398,625) --
Surrenders .......................... (55,631) (14,232) -- (71,511) (50,287) (81,322)
Death benefits (note 4) ............. -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... 2,483 (6,580) -- 6,299 (77,518) (303,704)
Deductions for surrender charges
(note 2d) ........................ (5,621) (2,687) -- (7,226) (9,493) (10,014)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (32,385) (31,645) (1,263) (70,929) (84,154) (48,776)
Asset charges (note 3):
MSP contracts .................... (693) (93) -- (3,192) (359) --
LSFP contracts ................... (571) (42) -- (359) (163) --
----------- --------- ------- --------- --------- ---------
Net equity transactions ........ (183,849) 1,075,301 158,743 (929,366) (492,644) (606,854)
----------- --------- ------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY . (145,620) 1,241,301 157,341 (865,212) (496,641) (489,279)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 2,270,491 858,201 -- 4,928,380 5,019,328 5,891,455
----------- --------- ------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD . $ 2,124,871 2,099,502 157,341 4,063,168 4,522,687 5,402,176
=========== ========= ======= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
NBAMTPart
----------------------------------------
2000 1999 1998
---- ---- ----
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 217,800 395,343 123,869
Mortality and expense charges
(note 3) ......................... (100,551) (139,374) (149,612)
---------- ---------- ----------
Net investment activity .......... 117,249 255,969 (25,743)
---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 6,750,240 7,115,808 8,935,619
Cost of mutual funds sold ........... (7,918,273) (7,530,734) (7,365,832)
---------- ---------- ----------
Realized gain (loss) on
investments .................... (1,168,033) (414,926) 1,569,787
Change in unrealized gain (loss)
on investments ................... (3,967,265) 3,488,844 (3,799,608)
---------- ---------- ----------
Net gain (loss) on investments ... (5,135,298) 3,073,918 (2,229,821)
---------- ---------- ----------
Reinvested capital gains ............ 4,631,886 687,554 3,901,869
---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. (386,163) 4,017,441 1,646,305
---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 2,085,265 2,997,338 7,539,397
Transfers between funds ............. (3,920,841) (6,509,486) --
Surrenders .......................... (285,520) (399,446) (347,798)
Death benefits (note 4) ............. (98,136) (77,115) (3,394)
Policy loans (net of repayments)
(note 5) ......................... (38,114) (238,490) (854,379)
Deductions for surrender charges
(note 2d) ........................ (28,850) (75,404) (42,826)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (662,067) (893,634) (236,276)
Asset charges (note 3):
MSP contracts .................... (10,233) (12,166) --
LSFP contracts ................... (5,978) (5,517) --
---------- ---------- ----------
Net equity transactions ........ (2,964,474) (5,213,920) 6,054,724
---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY . (3,350,637) (1,196,479) 7,701,029
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 30,808,193 34,942,331 28,728,327
---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD . 27,457,556 33,745,852 36,429,356
========== ========== ==========
</TABLE>
18
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
OppAggGrVA OppBdVA
------------------------------------------ ----------------------------------------
2000 1999 1998 2000 1999 1998
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ $ - - - 888,727 563,814 177,251
Mortality and expense charges
(note 3) ......................... (298) - - (42,698) (51,399) (46,258)
----------- ---------- ---------- ---------- ---------- ----------
Net investment activity .......... (298) - - 846,029 512,415 130,993
----------- ---------- ---------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 2,320,285 - - 1,608,664 2,985,856 8,819,212
Cost of mutual funds sold ........... (2,259,087) - - (1,762,067) (2,946,651) (8,665,115)
----------- ---------- ---------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... 61,198 - - (153,403) 39,205 154,097
Change in unrealized gain (loss)
on investments ................... 1,936 - - (518,481) (858,388) (117,816)
----------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments ... 63,134 - - (671,884) (819,183) 36,281
----------- ---------- ---------- ---------- ---------- ----------
Reinvested capital gains ............ - - - - 54,146 160,413
----------- ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. 62,836 - - 174,145 (252,622) 327,687
----------- ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 61,037 - - 661,102 803,115 2,531,359
Transfers between funds ............. 1,102,594 - - (1,044,608) (333,920) -
Surrenders .......................... - - - (170,610) (259,972) (152,557)
Death benefits (note 4) ............. - - - (4,850) (1,959) (976)
Policy loans (net of repayments)
(note 5) ......................... - - - (42,318) (122,645) (47,429)
Deductions for surrender charges
(note 2d) ........................ - - - (17,239) (49,075) (18,785)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (2,387) - - (212,583) (261,138) (54,145)
Asset charges (note 3):
MSP contracts .................... (28) - - (4,993) (945) -
LSFP contracts ................... - - - (877) (428) -
----------- ---------- ---------- ---------- ---------- ----------
Net equity transactions ........ 1,161,216 - - (836,976) (226,967) 2,257,467
----------- ---------- ---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 1,224,052 - - (662,831) (479,589) 2,585,154
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... - - - 11,733,754 12,362,107 8,824,474
----------- ---------- ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. $ 1,224,052 - - 11,070,923 11,882,518 11,409,628
=========== ========== ========== ========== ========== ==========
<CAPTION>
OppCapApVA
----------------------------------------
2000 1999 1998
---------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ................ 18,905 16,006 9,433
Mortality and expense charges
(note 3) ......................... (57,851) (22,789) (5,614)
----------- ------------ -----------
Net investment activity .......... (38,946) (6,783) 3,819
---------- ----------- ----------
Proceeds from mutual fund
shares sold ...................... 5,956,059 13,437,035 209,040
Cost of mutual funds sold ........... (4,752,479) (13,096,360) (198,084)
---------- ----------- ----------
Realized gain (loss) on
investments .................... 1,203,580 340,675 10,956
Change in unrealized gain (loss)
on investments ................... (1,164,244) 229,785 75,252
---------- ----------- ----------
Net gain (loss) on investments ... 39,336 570,460 86,208
---------- ----------- ----------
Reinvested capital gains ............ 1,008,850 175,824 113,813
---------- ----------- ----------
Net change in contract
owners' equity resulting
from operations .............. 1,009,240 739,501 203,840
---------- ----------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............. 1,071,672 459,478 1,441,481
Transfers between funds ............. 4,834,077 (590,191) -
Surrenders .......................... (408,266) (26,248) (13,335)
Death benefits (note 4) ............. (5,432) (6,703) -
Policy loans (net of repayments)
(note 5) ......................... (113,545) (14,074) (12,852)
Deductions for surrender charges
(note 2d) ........................ (41,253) (4,955) (1,642)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (334,199) (145,416) (1,318)
Asset charges (note 3):
MSP contracts .................... (4,721) (340) -
LSFP contracts ................... (3,444) (154) -
---------- ----------- ----------
Net equity transactions ........ 4,994,889 (328,603) 1,412,334
---------- ----------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.. 6,004,129 410,898 1,616,174
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................... 12,287,029 6,027,018 618,849
---------- ----------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.. 18,291,158 6,437,916 2,235,023
========== =========== ==========
</TABLE>
(Continued)
19
<PAGE> 20
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
OppGlSecVA OppMGrInVA
-------------------------------------------- ------------------------------------------
2000 1999 1998 2000 1999 1998
------------ ------------ ------------ ------------ ---------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 99,579 255,944 389,267 - - -
Mortality and expense charges
(note 3) ........................ (154,903) (90,423) (84,767) (59) - -
------------ ------------ ------------ ------------ ---------- -----------
Net investment activity ......... (55,324) 165,521 304,500 (59) - -
------------ ------------ ------------ ------------ ---------- -----------
Proceeds from mutual fund
shares sold ..................... 1,620,111 3,264,518 2,440,838 7,778 - -
Cost of mutual funds sold .......... (915,782) (2,337,002) (1,633,051) (7,880) - -
------------ ------------ ------------ ------------ ---------- -----------
Realized gain (loss) on
investments ................... 704,329 927,516 807,787 (102) - -
Change in unrealized gain (loss)
on investments .................. (2,620,386) 1,000,292 (471,370) 809 - -
------------ ------------ ------------ ------------ ---------- -----------
Net gain (loss) on investments .. (1,916,057) 1,927,808 336,417 707 - -
------------ ------------ ------------ ------------ ---------- -----------
Reinvested capital gains ........... 5,565,874 717,222 1,465,275 - - -
------------ ------------ ------------ ------------ ---------- -----------
Net change in contract
owners' equity resulting
from operations ............. 3,594,493 2,810,551 2,106,192 648 - -
------------ ------------ ------------ ------------ ---------- -----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............ 1,848,648 1,809,125 2,834,330 5,753 - -
Transfers between funds ............ 3,632,319 (798,406) - 176,427 - -
Surrenders ......................... (576,044) (339,435) (173,421) - - -
Death benefits (note 4) ............ (42,132) (17,495) (12,596) - - -
Policy loans (net of repayments)
(note 5) ........................ (354,829) (192,000) (157,096) - - -
Deductions for surrender charges
(note 2d) ....................... (58,207) (64,075) (21,354) - - -
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....... (705,518) (544,481) (142,346) (329) - -
Asset charges (note 3):
MSP contracts ................... (8,371) (1,651) - (69) - -
LSFP contracts .................. (3,861) (749) - - - -
------------ ------------ ------------ ------------ ---------- -----------
Net equity transactions ....... 3,732,005 (149,167) 2,327,517 181,782 - -
------------ ------------ ------------ ------------ ---------- -----------
NET CHANGE IN CONTRACT OWNERS'
EQUITY ............................. 7,326,498 2,661,384 4,433,709 182,430 - -
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................... 34,770,201 21,130,542 16,552,365 - - -
------------ ------------ ------------ ------------ ---------- -----------
CONTRACT OWNERS' EQUITY END
OF PERIOD .......................... $ 42,096,699 23,791,926 20,986,074 182,430 - -
============ ============ ============ ============ ========== ===========
<CAPTION>
OppMltStVA
--------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 684,260 480,400 116,421
Mortality and expense charges
(note 3) ........................ (62,428) (61,508) (60,451)
------------ ------------ ------------
Net investment activity ......... 621,832 418,892 55,970
------------ ------------ ------------
Proceeds from mutual fund
shares sold ..................... 3,855,167 2,359,001 1,191,372
Cost of mutual funds sold .......... (3,551,080) (2,004,956) (910,992)
------------ ------------ ------------
Realized gain (loss) on
investments ................... 304,087 354,045 280,380
Change in unrealized gain (loss)
on investments .................. (1,019,763) (380,000) (200,068)
------------ ------------ ------------
Net gain (loss) on investments .. (715,676) (25,955) 80,312
------------ ------------ ------------
Reinvested capital gains ........... 993,822 694,901 675,242
------------ ------------ ------------
Net change in contract
owners' equity resulting
from operations ............. 899,978 1,087,838 811,524
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ............ 761,907 508,241 1,296,724
Transfers between funds ............ 5,882 (962,657) -
Surrenders ......................... (150,619) (283,850) (330,613)
Death benefits (note 4) ............ (25,446) (22,347) (1,705)
Policy loans (net of repayments)
(note 5) ........................ (199,002) (122,362) (68,611)
Deductions for surrender charges
(note 2d) ....................... (15,219) (53,583) (40,710)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ....... (297,487) (338,623) (65,263)
Asset charges (note 3):
MSP contracts ................... (4,286) (1,154) -
LSFP contracts .................. (1,190) (524) -
------------ ------------ ------------
Net equity transactions ....... 74,540 (1,276,859) 789,822
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS'
EQUITY ............................. 974,518 (189,021) 1,601,346
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD .......................... 14,930,150 14,207,759 12,354,982
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END
OF PERIOD .......................... 15,904,668 14,018,738 13,956,328
============ ============ ============
</TABLE>
20
<PAGE> 21
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
StOpp2 StDisc2
-------------------------------------- ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends. . . . . . . . . $ - - 9,466 - - -
Mortality and expense charges
(note 3) . . . . . . . . . . . . . (177,895) (135,574) (128,013) (29,818) (29,585) (36,399)
---------- ---------- ---------- --------- --------- ---------
Net investment activity. . . . . . (177,895) (135,574) (118,547) (29,818) (29,585) (36,399)
---------- ---------- ---------- --------- --------- ---------
Proceeds from mutual fund
shares sold. . . . . . . . . . . . 2,229,687 2,651,679 1,744,010 5,518,655 7,602,129 1,582,087
Cost of mutual funds sold . . . . . . (1,478,773) (1,843,006) (1,137,988) (4,916,094) (8,338,545) (1,281,933)
---------- ---------- ---------- --------- --------- ---------
Realized gain (loss) on
investments. . . . . . . . . . . 750,914 808,673 606,022 602,561 (736,416) 300,154
Change in unrealized gain (loss)
on investments . . . . . . . . . . 974,398 1,598,388 (677,163) 166,242 (770,988) 180,568
---------- ---------- ---------- --------- --------- ---------
Net gain (loss) on investments . . 1,725,312 2,407,061 (71,141) 768,803 (1,507,404) 480,722
---------- ---------- ---------- --------- --------- ---------
Reinvested capital gains. . . . . . . - 3,541,869 3,488,003 - 1,035,670 120,028
---------- ---------- ---------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations. . . . . . . . 1,547,417 5,813,356 3,298,315 738,985 (501,319) 564,351
---------- ---------- ---------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners . . . . . . . 1,984,381 2,194,780 2,605,777 507,390 572,779 463,511
Transfers between funds . . . . . . . 1,263,517 (1,114,017) - (229,429) (1,402,004) -
Surrenders. . . . . . . . . . . . . . (810,403) (523,814) (241,367) (112,361) (90,705) (113,497)
Death benefits (note 4) . . . . . . . (39,326) (41,689) (8,701) (4,409) - (1,071)
Policy loans (net of repayments)
(note 5) . . . . . . . . . . . . . (305,593) (368,754) (246,461) (98,242) (41,555) (100,992)
Deductions for surrender charges
(note 2d). . . . . . . . . . . . . (81,887) (98,881) (29,721) (11,353) (17,123) (13,975)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c). . . . . (829,574) (776,598) (144,972) (162,218) (186,922) (36,131)
Asset charges (note 3):
MSP contracts. . . . . . . . . . . (5,924) (2,639) - (798) 18,982 -
LSFP contracts . . . . . . . . . . (2,747) (1,197) - (432) 8,608 -
---------- ---------- ---------- --------- --------- ---------
Net equity transactions. . . . . 1,172,444 (732,809) 1,934,555 (111,852) (1,137,940) 197,845
---------- ---------- ---------- --------- --------- ---------
NET CHANGE IN CONTRACT OWNERS'
EQUITY. . . . . . . . . . . . . . . . 2,719,861 5,080,547 5,232,870 627,133 (1,639,259) 762,196
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD . . . . . . . . . . . . . . 42,117,945 31,035,784 25,405,845 6,885,495 8,351,832 7,545,548
---------- ---------- ---------- --------- --------- ---------
CONTRACT OWNERS' EQUITY END
OF PERIOD . . . . . . . . . . . . . . $44,837,806 36,116,331 30,638,715 7,512,628 6,712,573 8,307,744
=========== ========== ========== ========= ========= =========
<CAPTION>
StIntStk2
-----------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends . . . . . . . . . . . - 7,958 22,650
Mortality and expense charges
(note 3). . . . . . . . . . . . . . . . (31,410) (9,240) (9,083)
----------- ----------- -----------
Net investment activity . . . . . . . . (31,410) (1,282) 13,567
----------- ----------- -----------
Proceeds from mutual fund
shares sold . . . . . . . . . . . . . . 22,721,721 4,010,749 3,049,320
Cost of mutual funds sold. . . . . . . . . (21,437,539) (4,035,082) (3,173,020)
----------- ----------- -----------
Realized gain (loss) on
investments . . . . . . . . . . . . . 1,284,182 (24,333) (123,700)
Change in unrealized gain (loss)
on investments. . . . . . . . . . . . . (1,793,295) 240,237 242,382
----------- ----------- -----------
Net gain (loss) on investments. . . . . (509,113) 215,904 118,682
----------- ----------- -----------
Reinvested capital gains - - -
----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations . . . . . . . . . . (540,523) 214,622 132,249
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners. . . . . . . . . . 285,970 188,897 (8,969)
Transfers between funds. . . . . . . . . . (732,984) (115,285) -
Surrenders . . . . . . . . . . . . . . . . (91,921) (33,417) (20,530)
Death benefits (note 4). . . . . . . . . . (1,173) - (5,991)
Policy loans (net of repayments)
(note 5). . . . . . . . . . . . . . . . 15,121 (20,863) (20,946)
Deductions for surrender charges
(note 2d) . . . . . . . . . . . . . . . (9,288) (6,308) (2,528)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) . . . . . . . (115,628) (54,022) (1,125)
Asset charges (note 3):
MSP contracts . . . . . . . . . . . . . (1,644) (707) -
LSFP contracts. . . . . . . . . . . . . (2,623) (321) -
----------- ----------- -----------
Net equity transactions . . . . . . . (654,170) (42,026) (60,089)
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS'
EQUITY . . . . . . . . . . . . . . . . . . (1,194,693) 172,596 72,160
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD. . . . . . . . . . . . . . . . . 7,468,116 1,986,996 1,986,172
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END
OF PERIOD. . . . . . . . . . . . . . . . . 6,273,423 2,159,592 2,058,332
=========== =========== ===========
</TABLE>
(Continued)
21
<PAGE> 22
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
VEWwBd VEWwEmgMkt
------------------------------------ ----------------------------------------
2000 1999 1998 2000 1999 1998
----------- ---------- ---------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends.................. $ 125,433 135,225 24,030 - - 20,182
Mortality and expense charges
(note 3)........................... (11,709) (14,606) (12,836) (33,728) (14,530) (10,596)
----------- ---------- ---------- ----------- ----------- -----------
Net investment activity............ 113,724 120,619 11,194 (33,728) (14,530) 9,586
----------- ---------- ---------- ----------- ----------- -----------
Proceeds from mutual fund
shares sold........................ 7,227,587 3,219,812 444,657 15,583,968 14,917,573 2,681,020
Cost of mutual funds sold............. (7,489,078) (3,493,093) (427,670) (13,242,186) (13,530,838) (3,524,085)
----------- ---------- ---------- ----------- ----------- -----------
Realized gain (loss) on
investments...................... (261,491) (273,281) 16,987 2,341,782 1,386,735 (843,065)
Change in unrealized gain (loss)
on investments..................... 79,908 (157,901) 50,573 (3,194,575) (37,783) 222,177
----------- ---------- ---------- ---------- ----------- -----------
Net gain (loss) on investments..... (181,583) (431,182) 67,560 (852,793) 1,348,952 (620,888)
----------- ---------- ---------- ----------- ----------- -----------
Reinvested capital gains.............. - 60,420 - - - 17,939
----------- ---------- ---------- ----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations................ (67,859) (250,143) 78,754 (886,521) 1,334,422 (593,363)
----------- ---------- ---------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners............... 93,357 130,903 506,327 468,794 238,572 303,957
Transfers between funds............... (168,092) (325,382) - (1,801,530) 1,310,742 -
Surrenders............................ (15,262) (41,688) (11,858) (102,466) (48,930) (9,087)
Death benefits (note 4)............... - (1,088) (3,254) (6,036) - (4,921)
Policy loans (net of repayments)
(note 5)........................... (19,677) (73,512) (16,172) (106,736) (14,461) (10,202)
Deductions for surrender charges
(note 2d).......................... (1,542) (7,869) (1,460) (10,354) (9,236) (1,119)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c).......... (43,823) (60,584) (5,901) (156,467) (65,785) (5,654)
Asset charges (note 3):
MSP contracts...................... (749) (261) - (3,016) 2,471 -
LSFP contracts..................... (75) (119) - (2,872) 1,120 -
----------- ---------- ---------- ----------- ----------- -----------
Net equity transactions.......... (155,863) (379,600) 467,682 (1,720,683) 1,414,493 272,974
----------- ---------- ---------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY... (223,722) (629,743) 546,436 (2,607,204) 2,748,915 (320,389)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD............................. 2,721,035 3,547,221 2,529,206 10,148,983 1,851,575 2,399,674
----------- ---------- ---------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD... $2,497,313 2,917,478 3,075,642 7,541,779 4,600,490 2,079,285
=========== ========== ========== =========== =========== ===========
<CAPTION>
VEWwHrdAst
----------------------------------------
2000 1999 1998
---------- ---------- ----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends................... 47,340 61,762 35,945
Mortality and expense charges
(note 3)............................ (18,103) (19,298) (31,604)
---------- ---------- ----------
Net investment activity............. 29,237 42,464 4,341
---------- ---------- ----------
Proceeds from mutual fund
shares sold......................... 7,434,938 12,536,891 5,254,538
Cost of mutual funds sold.............. (7,066,155) (11,846,027) (6,923,358)
---------- ---------- ----------
Realized gain (loss) on
investments....................... 368,783 690,864 (1,668,820)
Change in unrealized gain (loss)
on investments...................... (217,668) 41,295 (120,061)
---------- ---------- ----------
Net gain (loss) on investments...... 151,115 732,159 (1,788,881)
---------- ---------- ----------
Reinvested capital gains............... - - 882,647
---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations................. 180,352 774,623 (901,893)
---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners................ 192,230 291,879 404,298
Transfers between funds................ (198,627) (723,551) -
Surrenders............................. (44,164) (240,281) (52,118)
Death benefits (note 4)................ (1,088) (1,400) (2,347)
Policy loans (net of repayments)
(note 5)............................ (48,255) 91,190 (58,205)
Deductions for surrender charges
(note 2d)........................... (4,463) (45,358) (6,418)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c)........... (87,721) (99,237) (84,904)
Asset charges (note 3):
MSP contracts....................... (1,165) 25 -
LSFP contracts...................... (199) 11 -
---------- ---------- ----------
Net equity transactions........... (193,452) (726,722) 200,306
---------- ---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY.... (13,100) 47,901 (701,587)
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD.............................. 4,294,443 4,129,585 6,316,203
---------- ---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD.... 4,281,343 4,177,486 5,614,616
========== ========== ==========
</TABLE>
22
<PAGE> 23
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
VKMSRESec WPIntEq
----------------------------------------- -----------------------------------------
2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... $ 241,653 400,217 12,298 - - -
Mortality and expense charges
(note 3) ............................. (20,570) (27,026) (33,996) (43,734) (37,101) (46,915)
----------- ----------- ----------- ----------- ----------- -----------
Net investment activity .............. 221,083 373,191 (21,698) (43,734) (37,101) (46,915)
----------- ----------- ----------- ----------- ----------- -----------
Proceeds from mutual fund
shares sold .......................... 1,971,023 4,652,983 2,812,518 3,296,098 5,966,736 7,454,530
Cost of mutual funds sold ............... (2,030,399) (5,521,374) (2,907,348) (2,495,405) (5,942,488) (7,745,663)
----------- ----------- ----------- ----------- ----------- -----------
Realized gain (loss) on
investments ........................ (59,376) (868,391) (94,830) 800,693 24,248 (291,133)
Change in unrealized gain (loss)
on investments ....................... 525,125 983,802 (425,117) (1,866,958) 607,775 1,610,483
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments ....... 465,749 115,411 (519,947) (1,066,265) 632,023 1,319,350
----------- ----------- ----------- ----------- ----------- -----------
Reinvested capital gains ................ - - 121,016 - - -
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations .................. 686,832 488,602 (420,629) (1,109,999) 594,922 1,272,435
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ................. 351,094 564,262 666,162 653,750 711,491 197,051
Transfers between funds ................. 27,347 (972,989) - (1,233,342) 229,058 -
Surrenders .............................. (61,337) (90,507) (61,824) (110,873) (157,093) (30,817)
Death benefits (note 4) ................. (2,472) (2,653) (10,901) (12,678) (46,674) (7,841)
Policy loans (net of repayments)
(note 5) ............................. (5,153) (82,519) (28,419) (119,308) (36,287) (121,860)
Deductions for surrender charges
(note 2d) ............................ (6,198) (17,085) (7,613) (11,203) (29,655) (3,795)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ............ (128,719) (167,494) (29,860) (222,077) (212,432) (16,044)
Asset charges (note 3):
MSP contracts ........................ (2,061) (47) - (4,392) 808 -
LSFP contracts ....................... (1,320) (22) - (3,417) 367 -
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions ............ 171,181 (769,054) 527,545 (1,063,540) 459,583 16,694
----------- ----------- ----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... 858,013 (280,452) 106,916 (2,173,539) 1,054,505 1,289,129
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 5,105,071 6,539,291 7,628,431 13,668,214 9,289,108 9,978,378
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD...... $5,963,084 6,258,839 7,735,347 11,494,675 10,343,613 11,267,507
=========== =========== =========== =========== =========== ===========
<CAPTION>
WPGlPVenCp
-----------------------------------------
2000 1999 1998
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends .................... - - -
Mortality and expense charges
(note 3) ............................. (13,087) (4,873) (3,714)
----------- ----------- -----------
Net investment activity .............. (13,087) (4,873) (3,714)
----------- ----------- -----------
Proceeds from mutual fund
shares sold .......................... 10,053,642 2,958,840 3,485,129
Cost of mutual funds sold ............... (9,277,604) (2,833,602) (3,402,821)
----------- ----------- -----------
Realized gain (loss) on
investments ........................ 776,038 125,238 82,308
Change in unrealized gain (loss)
on investments ....................... (705,531) 29,894 (15,371)
----------- ----------- -----------
Net gain (loss) on investments ....... 70,507 155,132 66,937
----------- ----------- -----------
Reinvested capital gains ................ - - -
----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations .................. 57,420 150,259 63,223
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners ................. 106,519 63,366 (9,777)
Transfers between funds ................. (1,344,657) (131,843) -
Surrenders .............................. (17,859) (19,367) (59)
Death benefits (note 4) ................. - - -
Policy loans (net of repayments)
(note 5) ............................. (14,502) (6,551) 4,461
Deductions for surrender charges
(note 2d) ............................ (1,805) (3,656) (7)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ............ (51,580) (23,447) (493)
Asset charges (note 3):
MSP contracts ........................ (931) (27) -
LSFP contracts ....................... (791) (12) -
----------- ----------- -----------
Net equity transactions ............ (1,325,606) (121,537) (5,875)
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ..... (1,268,186) 28,722 57,348
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ............................... 4,433,538 1,100,662 766,675
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD...... 3,165,352 1,129,384 824,023
=========== =========== ===========
</TABLE>
(Continued)
23
<PAGE> 24
NATIONWIDE VLI SEPARATE ACCOUNT-2
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
<TABLE>
<CAPTION>
WPSmCoGr
--------------------------------------------------
2000 1999 1998
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................. $ -- -- --
Mortality and expense charges
(note 3) ...................................... (118,332) (56,071) (69,420)
------------ ------------ ------------
Net investment activity ....................... (118,332) (56,071) (69,420)
------------ ------------ ------------
Proceeds from mutual fund
shares sold ................................... 22,914,310 5,060,104 8,087,280
Cost of mutual funds sold ........................ (13,788,445) (5,328,231) (7,533,905)
------------ ------------ ------------
Realized gain (loss) on
investments ................................. 9,125,865 (268,127) 553,375
Change in unrealized gain (loss)
on investments ................................ (10,630,706) 1,157,599 111,285
------------ ------------ ------------
Net gain (loss) on investments ................ (1,504,841) 889,472 664,660
------------ ------------ ------------
Reinvested capital gains ......................... -- -- --
------------ ------------ ------------
Net change in contract
owners' equity resulting
from operations ........................... (1,623,173) 833,401 595,240
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received
from contract owners .......................... 1,517,091 1,384,945 246,616
Transfers between funds .......................... 5,854,105 (1,260,836) --
Surrenders ....................................... (354,653) (155,832) (136,722)
Death benefits (note 4) .......................... (17,059) (60,498) (10,532)
Policy loans (net of repayments)
(note 5) ...................................... (267,586) (53,389) (149,141)
Deductions for surrender charges
(note 2d) ..................................... (35,836) (29,417) (16,835)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ..................... (549,426) (368,170) (38,444)
Asset charges (note 3):
MSP contracts ................................. (9,580) (198) --
LSFP contracts ................................ (6,555) (90) --
------------ ------------ ------------
Net equity transactions ..................... 6,130,501 (543,485) (105,058)
------------ ------------ ------------
NET CHANGE IN CONTRACT OWNERS' EQUITY .............. 4,507,328 289,916 490,182
CONTRACT OWNERS' EQUITY BEGINNING
OF PERIOD ........................................ 25,526,305 15,178,630 15,632,197
------------ ------------ ------------
CONTRACT OWNERS' EQUITY END OF PERIOD .............. $ 30,033,633 15,468,546 16,122,379
============ ============ ============
</TABLE>
See accompanying notes to financial statements.
24
<PAGE> 25
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000, 1999 AND 1998
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLI Separate 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:
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. (DrySRGr)
Dreyfus Stock Index Fund (DryStkIx)
Portfolio of the Dreyfus Investment Portfolios (Dreyfus IP);
Dreyfus IP - European Equity Portfolio (DryEuroEq)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Appreciation Portfolio (DryVApp)
Dreyfus VIF - Growth and Income Portfolio (DryVGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVEqIn)
Fidelity VIP - Growth Portfolio (FidVGr)
Fidelity VIP - High Income Portfolio (FidVHiIn)
Fidelity VIP - Overseas Portfolio (FidVOvSe)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVAM)
Fidelity VIP-II - Contrafund Portfolio (FidVCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVGrOp)
Portfolios of the Janus Aspen Series;
Janus Aspen - Capital Appreciation Portfolio - Service Shares
(JanACapApS)
Janus Aspen - Global Technology Portfolio - Service Shares
(JanAGlTchS)
Janus Aspen - International Growth Portfolio - Service Shares
(JanAIntGrS)
(Continued)
25
<PAGE> 26
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
Portfolio of the Morgan Stanley Universal Funds, Inc.
(Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
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 - Mid Cap Index Fund (NSATMidCap)
Nationwide SAT - Money Market Fund (NSATMMkt)
Nationwide SAT - Multi Sector Bond Fund (NSATMSecBd)
Nationwide SAT - Small Cap Growth Fund (NSATSmCapG)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Strategic Growth Fund (NSATStrGro)
Nationwide SAT - Total Return Fund (NSATTotRtn)
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 Aggressive Growth Fund/VA (OppAggGrVA)
Oppenheimer Bond Fund/VA (OppBdVA)
Oppenheimer Capital Appreciation Fund/VA (OppCapApVA)
Oppenheimer Global Securities Fund/VA (OppGlSecVA)
Oppenheimer Main Street Growth & Income Fund/VA (OppMGrInVA)
Oppenheimer Multiple Strategies Fund/VA (OppMltStVA)
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 (VEWwBd)
Van Eck WIT - Worldwide Emerging Markets Fund (VEWwEmgMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWwHrdAst)
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 - Global Post - Venture Capital Portfolio
(WPGlPVenCp)
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 2000, 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.
26
<PAGE> 27
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.
(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, 2000. 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 prior year amounts have been reclassified to conform with the
current year 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.
(Continued)
27
<PAGE> 28
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(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.
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.
28
<PAGE> 29
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.
(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 and are
reflected in the table below.
For modified single premium contracts (MSP), 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 (LSFP), 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%. This
charge is assessed monthly against each contract by liquidating units.
The following table provides mortality and expense risk charges for all
single premium contracts and multiple payment and flexible payment
contracts for the six month period ended June 30, 2000:
<TABLE>
<CAPTION>
TOTAL ACVPBal ACVPCapAp ACVPIncGr ACVPInt
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 12,431 - 1,325 - 594
Single Premium contracts issued
on or after April 16, 1990.... 861,250 4,279 26,319 3,766 22,213
Multiple Payment and Flexible
Premium contracts............. 3,592,849 17,486 75,066 12,378 79,013
-------------- ------------ ------------ ------------ ------------
Total....................... $ 4,466,530 21,765 102,710 16,144 101,820
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
ACVPValue DrySRGr DryStkIx DryVApp DryEuroEq
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - 304 1,021 - -
Single Premium contracts issued
on or after April 16, 1990.... 2,271 7,368 58,536 6,807 -
Multiple Payment and Flexible
Premium contracts............. 8,385 69,562 344,543 22,587 16
-------------- ------------ ------------ ------------ ------------
Total....................... $ 10,656 77,234 404,100 29,394 16
============== ============ ============ ============ ============
</TABLE>
(Continued)
29
<PAGE> 30
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
DryVGrInc FidVEqIn FidVGr FidVHiIn FidVOvSe
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - 1,040 1,731 261 379
Single Premium contracts issued
on or after April 16, 1990.... 1,257 75,201 126,130 18,974 31,278
Multiple Payment and Flexible
Premium contracts............. 8,571 239,074 601,491 71,048 90,723
-------------- ------------ ------------ ------------ ------------
Total....................... $ 9,828 315,315 729,352 90,283 122,380
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVAM FidVCon FidVGrOp JanACapApS JanAGlTchS
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 174 - 88 - -
Single Premium contracts issued
on or after April 16, 1990.... 39,135 44,874 2,061 328 163
Multiple Payment and Flexible
Premium contracts............. 96,670 223,140 18,853 366 560
-------------- ------------ ------------ ------------ ------------
Total....................... $ 135,979 268,014 21,002 694 723
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
JanAIntGrS MSEmMkt NSATCapAp NSATGvtBd NSATMidCap
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - 64 9 170 -
Single Premium contracts issued
on or after April 16, 1990.... 293 1,571 9,642 24,389 55
Multiple Payment and Flexible
Premium contracts............. 132 1,627 127,026 25,369 4
-------------- ------------ ------------ ------------ ------------
Total....................... $ 425 3,262 136,677 49,928 59
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATMMkt NSATMSecBd NSATSmCapG NSATSmCapV NSATSmCo
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 1,245 17 - 117 100
Single Premium contracts issued
on or after April 16, 1990.... 85,599 7 2 11,890 22,325
Multiple Payment and Flexible
Premium contracts............. 126,231 23 72 7,575 88,628
-------------- ------------ ------------ ------------ ------------
Total....................... $ 213,075 47 74 19,582 111,053
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATStrGro NSATTotRtn NBAMTGro NBAMTGuard NBAMTLMat
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - 278 1,178 - 545
Single Premium contracts issued
on or after April 16, 1990.... 126 27,372 38,782 203 5,984
Multiple Payment and Flexible
Premium contracts............. 133 345,827 120,029 7,320 9,988
-------------- ------------ ------------ ------------ ------------
Total....................... $ 259 373,477 159,989 7,523 16,517
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NBAMTPart OppAggGrVA OppBdVA OppCapApVa OppGlSecVA
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - - - 511 328
Single Premium contracts issued
on or after April 16, 1990.... 10,662 246 7,534 11,237 21,976
Multiple Payment and Flexible
Premium contracts............. 89,889 52 35,164 46,103 132,599
-------------- ------------ ------------ ------------ ------------
Total....................... $ 100,551 298 42,698 57,851 154,903
============== ============ ============ ============ ============
</TABLE>
30
<PAGE> 31
<TABLE>
<CAPTION>
OppMGrinVA OppMltSTVA StOpp2 StDisc2 StintStk2
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - - 90 - -
Single Premium contracts issued
on or after April 16, 1990.... 4 19,708 29,545 4,814 7,863
Multiple Payment and Flexible
Premium contracts............. 55 42,720 148,260 25,004 23,547
-------------- ------------ ------------ ------------ ------------
Total....................... $ 59 62,428 177,895 29,818 31,410
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VEWwBd VEWwEmgMkt VEWwHrdAst VKMSRESec WPintEq
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 89 302 1 - -
Single Premium contracts issued
on or after April 16, 1990.... 3,137 3,384 5,592 6,383 7,663
Multiple Payment and Flexible
Premium contracts............. 8,483 30,042 12,510 14,187 36,071
-------------- ------------ ------------ ------------ ------------
Total....................... $ 11,709 33,728 18,103 20,570 43,734
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
WPGlPVenCp WPSmCoGr
------------ ------------
<S> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 470 -
Single Premium contracts issued
on or after April 16, 1990.... 1,532 20,770
Multiple Payment and Flexible
Premium contracts............. 11,085 97,562
-------------- ------------
Total....................... $ 13,087 118,332
============== ============
</TABLE>
The following table provides mortality and expense risk charges for all
single premium contracts and multiple payment and flexible payment
contracts for the six month period ended June 30, 1999:
<TABLE>
<CAPTION>
TOTAL ACVPBal ACVPCapAp 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
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
ACVPValue DrySRGr DryStkix DryVApp DryVGrinc
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - 232 2,197 53 -
Single Premium contracts issued
on or after April 16, 1990.... 4,308 6,836 89,558 11,263 1,035
Multiple Payment and Flexible
Premium contracts............. 8,443 51,146 286,372 17,870 8,688
-------------- ------------ ------------ ------------ ------------
Total....................... $ 12,751 58,214 378,127 29,186 9,723
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVEqin FidVGr FidVHiln FidVOvSe FidVAM
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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
============== ============ ============ ============ ============
</TABLE>
(Continued)
31
<PAGE> 32
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
FidVCon FidVGrOp MSEmMkt NSATCapAp NSATGvtBd
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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>
<TABLE>
<CAPTION>
NSATMMkt NSATSmCapV NSATSmCo NSATTotRtn 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
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGuard NBAMTLMat NBAMTPart OppBdVA OppGlSecVA
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
OppCapApVa OppMltStVA StOpp2 StDisc2 StintStk2
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VEWwBd VEWwEmgMkt VEWwHrdAst VKMSRESec WPIntEq
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
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
============== ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
WPGLPVenCp WPSmCoGr
------------ ------------
<S> <C> <C>
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>
32
<PAGE> 33
The following table provides mortality and expense risk charges for all
single premium contracts and multiple payment and flexible payment
contracts for the six month period ended June 30, 1998:
<TABLE>
<CAPTION>
TOTAL ACVPBal ACVPCapAp ACVPIncGr ACVPInt
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 10,588 - 717 - -
Single Premium contracts issued
on or after April 16, 1990.... 805,716 6,110 12,151 155 24,756
Multiple Payment and Flexible
Premium contracts............. 2,492,593 11,873 42,995 133 21,308
------------ ------------ ------------ ------------ ------------
Total....................... $ 3,308,897 17,983 55,863 288 46,064
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
ACVPValue DrySRGr DryStkIx DryVApp DryVGrinc
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - - 1,824 52 -
Single Premium contracts issued
on or after April 16, 1990.... 2,921 4,522 4,734 3,804 1,369
Multiple Payment and Flexible
Premium contracts............. 7,015 31,495 225,357 4,080 5,780
------------ ------------ ------------ ------------ ------------
Total....................... $ 9,936 36,017 231,915 7,936 7,149
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVEqin FidVGr FidVHiIn FidVOvSe FidVAM
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 1,312 1,086 504 599 153
Single Premium contracts issued
on or after April 16, 1990.... 118,783 89,829 34,702 33,033 47,464
Multiple Payment and Flexible
Premium contracts............. 239,613 290,370 89,528 69,246 95,145
------------ ------------ ------------ ------------ ------------
Total....................... $ 359,708 381,285 124,734 102,878 142,762
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
FidVCon FidVGrOp MSEmMkt NSATCapAp NSATGvtBd
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 63 - - 327 159
Single Premium contracts issued
on or after April 16, 1990.... 32,678 5,273 288 17,113 31,279
Multiple Payment and Flexible
Premium contracts............. 112,318 6,064 1,126 94,257 19,729
------------ ------------ ------------ ------------ ------------
Total....................... $ 145,059 11,337 1,414 111,697 51,167
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NSATMMkt NSATSmCapV NSATSmCo NSATTotRtn NBAMTGro
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 743 - - 838 863
Single Premium contracts issued
on or after April 16, 1990.... 83,819 4 7,385 32,630 21,053
Multiple Payment and Flexible
Premium contracts............. 110,528 5 55,780 325,469 66,621
------------ ------------ ------------ ------------ ------------
Total....................... $ 195,090 9 63,165 358,937 88,537
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGuard NBAMTLMat NBAMTPart OppBdVa OppGLSecVA
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - 502 - - -
Single Premium contracts issued
on or after April 16, 1990.... 20 13,858 36,113 10,782 13,172
Multiple Payment and Flexible
Premium contracts............. 6 14,303 113,499 35,476 71,595
------------ ------------ ------------ ------------ ------------
Total....................... $ 26 28,663 149,612 46,258 84,767
============ ============ ============ ============ ============
</TABLE>
(Continued)
33
<PAGE> 34
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
OppCapApVA OppMltstVA StOpp2 StDisc2 StIntStk2
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - - 65 - -
Single Premium contracts issued
on or after April 16, 1990.... 529 19,254 25,383 8,085 2,306
Multiple Payment and Flexible
Premium contracts............. 5,085 41,197 102,565 28,314 6,777
------------ ------------ ------------ ------------ ------------
Total....................... $ 5,614 60,451 128,013 36,399 9,083
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
VEWwBd VEWwEmgMkt VEWwHrdAst VKMSRESec WPIntEq
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ 1 - 333 338 109
Single Premium contracts issued
on or after April 16, 1990.... 5,118 1,181 14,061 10,032 10,946
Multiple Payment and Flexible
Premium contracts............. 7,717 9,415 17,210 23,626 35,860
------------ ------------ ------------ ------------ ------------
Total....................... $ 12,836 10,596 31,604 33,996 46,915
============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
WPGLPVenCp WPSmCoGr
------------ ------------
<S> <C> <C>
Single Premium contracts Issued
prior to April 16, 1990....... $ - -
Single Premium contracts issued
on or after April 16, 1990.... 941 18,080
Multiple Payment and Flexible
Premium contracts............. 2,773 51,340
------------ ------------
Total....................... $ 3,714 69,420
============ ============
</TABLE>
(4) DEATH BENEFITS
Death benefit proceeds result in a redemption of the contract value from
the Account and payment of those 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. In the event that the guaranteed death benefit
exceeds the contract value on the date of death, the excess is paid by the
Company's general account.
(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.
34
<PAGE> 35
(7) Components of contract owners' equity
The following is a summary of contract owners' equity at June 30, 2000, for
each product in the accumulation phase.
Contract owners' equity represented by:
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Single Premium contracts issued prior to
April 16, 1990:
American Century VP - American Century
VP Capital Appreciation . . . . . . . . . . . . . 6,415 $ 42.980416 $ 275,719 17%
American Century VP -
American Century VP International . . . . . . . . 4,913 25.154705 123,585 (6)%
The Dreyfus Socially Responsible
Growth Fund, Inc. . . . . . . . . . . . . . . . . 1,694 37.342400 63,258 2%
Dreyfus Stock Index Fund . . . . . . . . . . . . . . 6,380 33.299785 212,453 (1)%
Fidelity VIP - Equity-Income Portfolio . . . . . . . 5,011 43.184959 216,400 (3)%
Fidelity VIP - Growth Portfolio. . . . . . . . . . . 4,311 83.609959 360,443 5%
Fidelity VIP - High Income Portfolio . . . . . . . . 1,958 27.734873 54,305 (5)%
Fidelity VIP - Overseas Portfolio. . . . . . . . . . 2,412 32.714959 78,908 (5)%
Fidelity VIP-II - Asset Manager Portfolio. . . . . . 1,181 30.723922 36,285 (1)%
Fidelity VIP-III -
Growth Opportunities Portfolio. . . . . . . . . . 1,352 13.527261 18,289 (4)%
Morgan Stanley -
Emerging Markets Debt Portfolio . . . . . . . . . 1,389 9.569746 13,292 6%
Nationwide SAT -
Capital Appreciation Fund . . . . . . . . . . . . 56 32.817208 1,838 1%
Nationwide SAT -
Government Bond Fund. . . . . . . . . . . . . . . 1,508 23.531059 35,485 4%
Nationwide SAT - Money Market Fund . . . . . . . . . 14,924 17.368940 259,214 3%
Nationwide SAT -
Multi Sector Bond Fund. . . . . . . . . . . . . . 352 10.169951 3,580 2%
Nationwide SAT - Small Cap Value Fund. . . . . . . . 2,015 12.078102 24,337 11%
Nationwide SAT - Small Company Fund. . . . . . . . . 836 24.944101 20,853 7%
Nationwide SAT - Total Return Fund . . . . . . . . . 1,312 44.113476 57,877 3%
Neuberger & Berman AMT -
Growth Portfolio. . . . . . . . . . . . . . . . . 3,943 62.172211 245,145 14%
Neuberger & Berman AMT -
Limited Maturity Bond Fund. . . . . . . . . . . . 6,133 18.512380 113,536 2%
Oppenheimer
Capital Appreciation Fund/VA. . . . . . . . . . . 5,374 19.809088 106,454 9%
Oppenheimer
Global Securities Fund/VA . . . . . . . . . . . . 2,125 32.151658 68,322 10%
Strong Opportunity Fund II, Inc. . . . . . . . . . . 449 41.885259 18,806 4%
</TABLE>
(Continued)
35
<PAGE> 36
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Van Eck WIT - Worldwide Bond Fund . . . . . . . . . 1,213 15.241310 18,488 0%
Van Eck WIT -
Worldwide Emerging Markets Fund. . . . . . . . . 6,248 10.061576 62,865 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund . . . . . . . . . . . 5 12.525276 63 4%
Warburg Pincus Trust -
Global Post-Venture Capital Portfolio. . . . . . 4,755 20.585314 97,883 5%
Single Premium contracts issued on or after
April 16, 1990:
American Century VP -
American Century VP Balanced . . . . . . . . . . 31,996 20.416546 653,248 1%
American Century VP - American Century
VP Capital Appreciation. . . . . . . . . . . . . 142,303 28.237153 4,018,232 17%
American Century VP - American Century
VP Income & Growth . . . . . . . . . . . . . . . 47,586 12.083124 574,988 (4)%
American Century VP -
American Century VP International. . . . . . . . 139,070 24.386291 3,391,401 (7)%
American Century VP -
American Century VP Value. . . . . . . . . . . . 28,446 12.191012 346,786 (5)%
The Dreyfus Socially Responsible
Growth Fund, Inc.. . . . . . . . . . . . . . . . 31,163 36.098124 1,124,926 2%
Dreyfus Stock Index Fund. . . . . . . . . . . . . . 277,642 32.188665 8,936,925 (1)%
Dreyfus VIF - Appreciation Portfolio. . . . . . . . 70,600 14.720022 1,039,234 2%
Dreyfus VIF -
Growth and Income Portfolio. . . . . . . . . . . 13,358 14.365377 191,893 (2)%
Fidelity VIP - Equity-Income Portfolio. . . . . . . 332,455 34.534901 11,481,301 (3)%
Fidelity VIP -
Growth Opportunities Portfolio . . . . . . . . . 17,982 13.249937 238,260 (4)%
Fidelity VIP - Growth Portfolio . . . . . . . . . . 340,648 56.530281 19,256,927 4%
Fidelity VIP - High Income Portfolio. . . . . . . . 103,845 27.896133 2,896,874 (5)%
Fidelity VIP - Overseas Portfolio . . . . . . . . . 207,291 23.036637 4,775,288 (6)%
Fidelity VIP-II - Asset Manager Portfolio . . . . . 203,672 29.336240 5,974,971 (1)%
Fidelity VIP-II - Contrafund Portfolio. . . . . . . 269,074 25.064937 6,744,323 (2)%
Janus Aspen Series -
Capital Appreciation Portfolio . . . . . . . . . 13,594 9.301931 126,450 (7)%(a)
Janus Aspen Series -
Global Technology Portfolio. . . . . . . . . . . 13,066 10.081425 131,724 1%(a)
Janus Aspen Series -
International Growth Portfolio . . . . . . . . . 18,723 9.724184 182,066 (3)%(a)
</TABLE>
36
<PAGE> 37
<TABLE>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Morgan Stanley -
Emerging Markets Debt Portfolio . . . . . . . . 10,926 9.373441 102,414 6%
Nationwide SAT -
Capital Appreciation Fund . . . . . . . . . . . 46,646 31.559777 1,472,137 0%
Nationwide SAT -
Government Bond Fund. . . . . . . . . . . . . . 195,239 19.072199 3,723,637 3%
Nationwide SAT - Mid Cap Index Fund. . . . . . . . 857 9.857951 8,448 (1)%(a)
Nationwide SAT - Money Market Fund . . . . . . . . 914,797 14.240158 13,026,854 2%
Nationwide SAT -
Multi Sector Bond Fund. . . . . . . . . . . . . 4,246 10.156626 43,125 2%(a)
Nationwide SAT -
Small Cap Growth Fund . . . . . . . . . . . . . 30 10.165270 305 2%(a)
Nationwide SAT - Small Cap Value Fund. . . . . . . 255,813 11.870653 3,036,667 10%
Nationwide SAT - Small Company Fund. . . . . . . . 90,057 24.285896 2,187,115 7%
Nationwide SAT -
Strategic Growth Fund . . . . . . . . . . . . . 7,955 10.096335 80,316 1%(a)
Nationwide SAT - Total Return Fund . . . . . . . . 110,742 37.184928 4,117,933 3%
Neuberger & Berman AMT -
Growth Portfolio. . . . . . . . . . . . . . . . 138,090 42.877597 5,920,967 14%
Neuberger & Berman AMT -
Guardian Portfolio. . . . . . . . . . . . . . . 2,851 10.854257 30,945 3%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio . . . . . . . . 58,879 15.516072 913,571 1%
Neuberger & Berman AMT -
Partners Portfolio. . . . . . . . . . . . . . . 67,575 24.088791 1,627,800 (1)%
Oppenheimer
Aggressive Growth Fund/VA . . . . . . . . . . . 3,519 10.661721 37,519 7%
Oppenheimer Bond Fund/VA . . . . . . . . . . . . . 61,865 18.591992 1,150,194 1%
Oppenheimer
Global Securities Fund/VA . . . . . . . . . . . 107,956 31.078774 3,355,140 10%
Oppenheimer Growth Fund/VA . . . . . . . . . . . . 88,420 19.403178 1,715,629 9%
Oppenheimer
Main Street Growth & Income/VA. . . . . . . . . 62 9.923502 615 (1)%
Oppenheimer
Multiple Strategies Fund/VA . . . . . . . . . . 112,906 26.649552 3,008,894 6%
Strong VIF - Strong Discovery Fund II. . . . . . . 33,969 21.635577 734,939 11%
Strong VIF -
Strong International Stock Fund II. . . . . . . 83,030 14.457718 1,200,424 (12)%
Strong VIF -
Strong Opportunity Fund II, Inc.. . . . . . . . 111,976 40.283344 4,510,768 3%
(Continued)
</TABLE>
37
<PAGE> 38
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Van Eck WIT - Worldwide Bond Fund. . . . . . . . 32,914 14.552700 478,988 (1)%
Van Eck WIT -
Worldwide Emerging Markets Fund . . . . . . . 52,529 9.836053 516,678 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund. . . . . . . . . . 63,127 13.524434 853,757 3%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Fund . . . . . . . . . 57,612 16.915844 974,556 14%
Warburg Pincus Trust -
International Equity Portfolio. . . . . . . . 73,372 15.945187 1,169,930 (9)%
Warburg Pincus Trust -
Global Post-Venture Capital Portfolio . . . . 11,622 20.124199 233,883 4%
Warburg Pincus Trust -
Small Company Growth Portfolio. . . . . . . . 122,065 25.978527 3,171,069 2%
Multiple Payment contracts and
Flexible Premium contracts:
American Century VP -
American Century VP Balanced. . . . . . . . . 207,595 21.269538 4,415,450 1%
American Century VP - American Century
VP Capital Appreciation . . . . . . . . . . . 783,810 27.248563 21,357,696 17%
American Century VP - American Century
VP Income & Growth. . . . . . . . . . . . . . 255,946 12.214588 3,126,275 (4)%
American Century VP -
American Century VP International . . . . . . 747,558 25.117659 18,776,907 (6)%
American Century VP -
American Century VP Value . . . . . . . . . . 152,146 12.407385 1,887,734 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. . . . . . . . . . . . . . . 499,932 37.333022 18,663,972 2%
Dreyfus Stock Index Fund . . . . . . . . . . . . 2,632,727 33.292046 87,648,868 (1)%
Dreyfus VIF - Appreciation Portfolio . . . . . . 389,447 14.939512 5,818,148 2%
Dreyfus VIF - European Equity Portfolio. . . . . 2,248 9.765505 21,953 (2)%(a)
Dreyfus VIF -
Growth and Income Portfolio . . . . . . . . . 151,182 14.620238 2,210,317 (1)%
Fidelity VIP - Equity-Income Portfolio . . . . . 1,599,715 36.245575 57,982,590 (3)%
Fidelity VIP -
Growth Opportunities Portfolio. . . . . . . . 429,757 13.447601 5,779,201 (4)%
Fidelity VIP - Growth Portfolio. . . . . . . . . 2,673,456 58.522458 156,457,216 5%
Fidelity VIP - High Income Portfolio . . . . . . 640,788 26.574602 17,028,686 (5)%
Fidelity VIP - Overseas Portfolio. . . . . . . . 882,638 25.378931 22,400,409 (5)%
</TABLE>
38
<PAGE> 39
<TABLE>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Fidelity VIP-II - Asset Manager Portfolio. . . . 888,836 27.059327 24,051,304 (1)%
Fidelity VIP-II - Contrafund Portfolio . . . . . 2,148,148 25.698199 55,203,535 (2)%
Janus Aspen Series -
Capital Appreciation Portfolio. . . . . . . . 94,611 9.309560 880,787 (7)%(a)
Janus Aspen Series -
Global Technology Portfolio . . . . . . . . . 92,673 10.089666 935,040 1%(a)
Janus Aspen Series -
International Growth Portfolio. . . . . . . . 43,691 9.732155 425,208 (3)%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio . . . . . . . 61,089 9.513376 581,163 6%
Nationwide SAT -
Capital Appreciation Fund . . . . . . . . . . 975,154 32.877948 32,061,063 0%
Nationwide SAT -
Government Bond Fund. . . . . . . . . . . . . 325,686 18.150229 5,911,275 4%
Nationwide SAT - Mid Cap Index Fund. . . . . . . 13,930 9.866027 137,434 (1)%(a)
Nationwide SAT - Money Market Fund . . . . . . . 2,105,080 14.186996 29,864,762 2%
Nationwide SAT -
Multi Sector Bond Fund. . . . . . . . . . . . 1,326 10.164955 13,479 2%
Nationwide SAT -
Small Cap Growth Fund . . . . . . . . . . . . 13,584 10.173586 138,198 2%(a)
Nationwide SAT - Small Cap Value Fund. . . . . . 228,209 11.999870 2,738,478 11%
Nationwide SAT - Small Company Fund. . . . . . . 1,019,044 24.861403 25,334,864 7%
Nationwide SAT -
Strategic Growth Fund . . . . . . . . . . . . 24,669 10.104589 249,270 1%(a)
Nationwide SAT - Total Return Fund . . . . . . . 2,427,549 36.120724 87,684,827 3%
Neuberger & Berman AMT -
Growth Portfolio. . . . . . . . . . . . . . . 777,780 43.038224 33,474,270 14%
Neuberger & Berman AMT -
Guardian Portfolio. . . . . . . . . . . . . . 164,010 10.972407 1,799,584 3%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio . . . . . . . 153,168 15.187538 2,326,245 2%
Neuberger & Berman AMT -
Partners Portfolio. . . . . . . . . . . . . . 890,741 24.811256 22,100,403 (1)%
Oppenheimer
Aggressive Growth Fund/VA . . . . . . . . . . 96,402 10.670421 1,028,650 7%(a)
Oppenheimer Bond Fund/VA . . . . . . . . . . . . 472,868 17.959057 8,492,263 2%
Oppenheimer
Global Securities Fund/VA . . . . . . . . . . 1,107,837 32.144397 35,610,752 10%
Oppenheimer Growth Fund/VA . . . . . . . . . . . 729,049 19.692541 14,356,827 9%
</TABLE>
(Continued)
39
<PAGE> 40
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION> PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Oppenheimer
Main Street Growth & Income/VA. . . . . . . . . 11,659 9.931623 115,793 (1)%(a)
Oppenheimer
Multiple Strategies Fund/VA . . . . . . . . . . 432,518 26.750095 11,569,898 6%
Strong VIF - Strong Discovery Fund II. . . . . . . 287,247 22.537617 6,473,863 11%
Strong VIF -
Strong International Stock Fund II. . . . . . . 285,882 14.800344 4,231,152 (12)%
Strong VIF -
Strong Opportunity Fund II, Inc.. . . . . . . . 909,850 41.961900 38,179,035 4%
Van Eck WIT - Worldwide Bond Fund. . . . . . . . . 130,953 13.920782 1,822,968 (1)%
Van Eck WIT -
Worldwide Emerging Markets Fund . . . . . . . . 599,413 10.010672 6,000,527 (13)%
Van Eck WIT -
Worldwide Hard Assets Fund. . . . . . . . . . . 205,673 15.175472 3,121,185 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Fund . . . . . . . . . . 240,991 17.343368 4,179,596 14%
Warburg Pincus Trust -
Global Post-Venture Capital Portfolio . . . . . 118,658 20.481233 2,430,262 5%
Warburg Pincus Trust -
International Equity Portfolio. . . . . . . . . 526,717 16.348137 8,610,842 (9)%
Warburg Pincus Trust -
Small Company Growth Portfolio. . . . . . . . . 871,755 26.635120 23,219,299 2%
Modified Single Premium contracts and
Last Survivor Flexible Premium contracts:
American Century VP -
American Century VP Balanced. . . . . . . . . . 47,420 16.328246 774,285 1%
American Century VP - American Century
VP Capital Appreciation . . . . . . . . . . . . 119,957 16.670308 1,999,720 17%
American Century VP - American Century
VP Income & Growth. . . . . . . . . . . . . . . 59,764 12.427941 742,743 (4)%
American Century VP -
American Century VP International . . . . . . . 149,003 23.402561 3,487,052 (6)%
American Century VP -
American Century VP Value . . . . . . . . . . . 50,041 12.761585 638,602 (4)%
The Dreyfus Socially Responsible
Growth Fund, Inc. . . . . . . . . . . . . . . . 84,024 24.782180 2,082,298 3%
Dreyfus Stock Index Fund . . . . . . . . . . . . . 586,479 23.430492 13,741,492 (1)%
Dreyfus VIF - Appreciation Portfolio . . . . . . . 66,953 15.297533 1,024,216 3%
</TABLE>
40
<PAGE> 41
<TABLE>
<CAPTION> PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Dreyfus VIF - European Equity Portfolio . . . . . 275 9.778327 2,689 (2)%(a)
Dreyfus VIF -
Growth and Income Portfolio. . . . . . . . . . 49,262 15.037439 740,774 (1)%
Fidelity VIP - Equity-Income Portfolio. . . . . . 413,346 15.968906 6,600,683 (3)%
Fidelity VIP -
Growth Opportunities Portfolio . . . . . . . . 68,886 13.769984 948,559 (4)%
Fidelity VIP - Growth Portfolio . . . . . . . . . 478,061 25.992229 12,425,871 5%
Fidelity VIP - High Income Portfolio. . . . . . . 297,846 12.547483 3,737,218 (5)%
Fidelity VIP - Overseas Portfolio . . . . . . . . 118,731 18.168170 2,157,125 (5)%
Fidelity VIP-II - Asset Manager Portfolio . . . . 96,392 16.879963 1,627,093 (1)%
Fidelity VIP-II - Contrafund Portfolio. . . . . . 327,799 22.259280 7,296,570 (1)%
Janus Aspen Series -
Capital Appreciation Portfolio . . . . . . . . 23,552 9.321768 219,546 (7)%(a)
Janus Aspen Series -
Global Technology Portfolio. . . . . . . . . . 21,370 10.102880 215,899 1%(a)
Janus Aspen Series -
International Growth Portfolio . . . . . . . . 13,731 9.744920 133,807 (3)%(a)
Morgan Stanley -
Emerging Markets Debt Portfolio. . . . . . . . 24,985 9.741623 243,394 7%
Nationwide SAT -
Capital Appreciation Fund. . . . . . . . . . . 211,056 21.321758 4,500,085 1%
Nationwide SAT -
Government Bond Fund . . . . . . . . . . . . . 119,026 12.957514 1,542,281 4%
Nationwide SAT - Mid Cap Index Fund . . . . . . . 795 9.878967 7,854 (1)%(a)
Nationwide SAT - Money Market Fund. . . . . . . . 700,085 12.350501 8,646,400 3%
Nationwide SAT -
Multi Sector Bond Fund . . . . . . . . . . . . 7,461 10.178281 75,940 2%
Nationwide SAT -
Small Cap Growth Fund. . . . . . . . . . . . . 3,672 10.186918 37,406 2%(a)
Nationwide SAT - Small Cap Value Fund . . . . . . 91,907 12.209617 1,122,149 11%
Nationwide SAT - Small Company Fund . . . . . . . 242,770 19.335974 4,694,194 8%
Nationwide SAT -
Strategic Growth Fund. . . . . . . . . . . . . 11,711 10.117813 118,490 1%
Nationwide SAT - Total Return Fund. . . . . . . . 385,864 19.333470 7,460,090 3%
Neuberger & Berman AMT -
Growth Portfolio . . . . . . . . . . . . . . . 172,782 25.276267 4,367,284 14%
Neuberger & Berman AMT -
Guardian Portfolio . . . . . . . . . . . . . . 26,365 11.164108 294,342 4%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio. . . . . . . . 58,782 12.075395 709,816 2%
</TABLE>
(Continued)
41
<PAGE> 42
NATIONWIDE VLI SEPARATE ACCOUNT-2
NOTES TO FINANCIAL STATEMENTS, CONTINUED
<TABLE>
<CAPTION>
PERIOD
UNITS UNIT VALUE RETURN(b)
--------- --------- ----------
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Partners Portfolio. . . . . . . . . . . . . . 222,492 16.761738 3,729,353 (1)%
Oppenheimer
Aggressive Growth Fund/VA . . . . . . . . . . 14,777 10.684355 157,883 7%(a)
Oppenheimer Bond Fund/VA . . . . . . . . . . . . 114,550 12.470236 1,428,466 2%
Oppenheimer
Global Securities Fund/VA . . . . . . . . . . 115,342 26.551339 3,062,485 11%
Oppenheimer Growth Fund/VA . . . . . . . . . . . 104,751 20.164467 2,112,248 9%
Oppenheimer
Main Street Growth & Income/VA. . . . . . . . 6,639 9.944637 66,022 (1)%(a)
Oppenheimer
Multiple Strategies Fund/VA . . . . . . . . . 81,287 16.311041 1,325,876 7%
Strong VIF - Strong Discovery Fund II. . . . . . 21,902 13.872055 303,826 12%
Strong VIF -
Strong International Stock Fund II. . . . . . 61,659 13.653266 841,847 (12)%
Strong VIF -
Strong Opportunity Fund II, Inc.. . . . . . . 98,876 21.534013 2,129,197 4%
Van Eck WIT - Worldwide Bond Fund. . . . . . . . 15,835 11.169513 176,869 0%
Van Eck WIT -
Worldwide Emerging Markets Fund . . . . . . . 93,401 10.296557 961,709 (12)%
Van Eck WIT -
Worldwide Hard Assets Fund. . . . . . . . . . 35,691 8.583053 306,338 4%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Fund . . . . . . . . . 49,904 16.209760 808,932 14%
Warburg Pincus Trust -
International Equity Portfolio. . . . . . . . 119,654 14.323822 1,713,903 (9)%
Warburg Pincus Trust -
Global Post-Venture Capital Portfolio . . . . 19,146 21.065694 403,324 5%
Warburg Pincus Trust -
Small Company Growth Portfolio. . . . . . . . 190,573 19.117425 3,643,265 2%
========= ========= ==============
$1,170,595,750
==============
</TABLE>
(a) These returns were computed for the period 05/01/00 through 06/30/00.
(b) The period return does not include contract charges satisfied by
surrendering units.
42
<PAGE> 43
[THIS PAGE LEFT BLANK INTENTIONALLY]
43
<PAGE> 44
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