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[NATIONWIDE LOGO]
NATIONWIDE(R)
VARIABLE
ACCOUNT-4
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 2000
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-1882-X (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 Variable Account-4.
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
August 16, 2000
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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 underlying 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 Variable Account-4. 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 1-800-848-6331 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.nwservicecenter.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 5. 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 6 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 9, provide further disclosures
about the variable account and its underlying contract provisions.
3
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NATIONWIDE VARIABLE ACCOUNT-4
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
Investments at market value:
<S> <C>
Greenwich SSF - Intermediate High Grade Portfolio (GSSFIHiGr)
1,707 shares (cost $17,940) ...................................................... $ 15,333
Greenwich SSF - Total Return Portfolio (GSSFTotRt)
11,352 shares (cost $202,907) .................................................... 224,656
Smith Barney VAF - The Income and Growth Portfolio (SBVAFIncGro)
1,098,071 shares (cost $14,000,751) .............................................. 9,432,433
Smith Barney VAF - The Reserve Account Portfolio (SBVAFResAcct)
5,137 shares (cost $39,674) ...................................................... 36,575
Smith Barney VAF - The U.S. Government/
High Quality Securities Portfolio (SBVAFUSGovHQ)
59,280 shares (cost $687,336) ..................................................... 621,256
Travelers Series Fund Inc. - Smith Barney International Equity Portfolio (TSFSBIntEq)
15,186 shares (cost $261,993) .................................................... 299,472
Travelers Series Fund Inc. - Smith Barney Large Cap Value Portfolio (TSFSBLgCapVal)
11,963 shares (cost $240,521) .................................................... 221,680
Travelers Series Fund Inc. - Smith Barney Money Market Portfolio (TSFSBMMkt)
13,403 shares (cost $13,402) ..................................................... 13,403
-----------
Total investments ............................................................. 10,864,808
Accounts receivable .................................................................... 30,356
-----------
Total assets .................................................................. 10,895,164
ACCOUNTS PAYABLE .......................................................................... 34,088
-----------
CONTRACT OWNERS' EQUITY ................................................................... $10,861,076
===========
</TABLE>
4
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<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- ---------- ---------
Contracts in accumulation phase:
<S> <C> <C> <C> <C>
Greenwich SSF - Intermediate High
Grade Portfolio:
Non-tax qualified.......................... 1,363 $ 11.395119 $ 15,532 2%
Greenwich SSF - Total Return Portfolio:
Non-tax qualified.......................... 11,904 18.873707 224,673 5%
Smith Barney VAF - The Income and
Growth Portfolio:
Tax qualified.............................. 58,999 29.655821 1,749,664 (1)%
Non-tax qualified.......................... 253,478 29.655821 7,517,098 (1)%
Smith Barney VAF - The Reserve
Account Portfolio:
Tax qualified.............................. 224 14.121543 3,163 2%
Non-tax qualified.......................... 2,366 14.121543 33,412 2%
Smith Barney VAF - The U.S. Government/
High Quality Securities Portfolio:
Tax qualified.............................. 3,465 16.448134 56,993 2%
Non-tax qualified.......................... 34,154 16.448134 561,770 2%
Travelers Series Fund Inc. - Smith Barney
International Equity Portfolio:
Non-tax qualified.......................... 16,914 17.704074 299,447 (14)%
Travelers Series Fund Inc. - Smith Barney
Large Cap Value Portfolio:
Tax qualified.............................. 5,401 14.824816 80,069 (2)%
Non-tax qualified.......................... 9,551 14.824816 141,592 (2)%
Travelers Series Fund Inc. - Smith Barney
Money Market Portfolio:
Non-tax qualified.......................... 1,151 11.894247 13,690 2%
======= =========
Reserves for annuity contracts in payout phase:
Tax qualified.............................. 3,698
Non-tax qualified.......................... 160,275
----------
$ 10,861,076
==========
</TABLE>
* The period return does not include contract charges satisfied by
surrendering units.
See accompanying notes to financial statements.
5
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NATIONWIDE VARIABLE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY
STATEMENTS OF OPERATIONS
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
Total GSSFIHiGr GSSFTotRt
--------------------------- ------------------ -------------------
2000 1999 2000 1999 2000 1999
------------ ---------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 181,676 238,384 1,316 2,419 4,150 7,223
Mortality, expense and administration
charges (note 2) .............................. (74,756) (100,818) (99) (206) (1,451) (1,796)
------------ ---------- ------- ------- ------- -------
Net investment activity ....................... 106,920 137,566 1,217 2,213 2,699 5,427
------------ ---------- ------- ------- ------- -------
Proceeds from mutual fund shares sold ........... 1,807,143 1,531,864 108 16,272 13,271 41,763
Cost of mutual fund shares sold ................. (2,419,104) (1,480,165) (121) (17,974) (10,997) (35,627)
------------ ---------- ------- ------- ------- -------
Realized gain (loss) on investments ........... (611,961) 51,699 (13) (1,702) 2,274 6,136
Change in unrealized gain (loss) on investments . (1,551,725) (1,550,893) (907) (1,715) (6,411) 20,717
------------ ---------- ------- ------- ------- -------
Net gain (loss) on investments ................ (2,163,686) (1,499,194) (920) (3,417) (4,137) 26,853
------------ ---------- ------- ------- ------- -------
Reinvested capital gains ........................ 1,925,085 2,408,668 -- -- 11,915 10,901
------------ ---------- ------- ------- ------- -------
Net increase (decrease) in contract owners'
equity resulting from operations .......... (131,681) 1,047,040 297 (1,204) 10,477 43,181
------------ ---------- ------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 1,000 996 -- -- -- 248
Transfers between funds ......................... -- -- -- (16,062) -- (12,156)
Redemptions ..................................... (1,446,102) (1,169,345) -- -- (11,383) (679)
Annuity benefits ................................ (14,491) (15,504) -- -- -- --
Annual contract maintenance charge (note 2) ..... (2,960) (3,209) (3) (3) (21) (26)
Contingent deferred sales charges (note 2) ...... (483) (548) -- -- -- --
Adjustments to maintain reserves ................ (9,291) (40,182) 8 1 (15) (203)
------------ ---------- ------- ------- ------- -------
Net equity transactions ..................... (1,472,327) (1,227,792) 5 (16,064) (11,419) (12,816)
------------ ---------- ------- ------- ------- -------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (1,604,008) (180,752) 302 (17,268) (942) 30,365
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 12,465,084 15,626,086 15,232 32,802 225,616 251,728
------------ ---------- ------- ------- ------- -------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 10,861,076 15,445,334 15,534 15,534 224,674 282,093
============ ========== ======= ======= ======= =======
</TABLE>
<TABLE>
<CAPTION>
SBVAFIncGro
-------------------------
2000 1999
---------- ----------
<S> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ 145,004 222,144
Mortality, expense and administration
charges (note 2) .............................. (65,204) (89,289)
---------- ----------
Net investment activity ....................... 79,800 132,855
---------- ----------
Proceeds from mutual fund shares sold ........... 1,467,084 1,082,671
Cost of mutual fund shares sold ................. (2,051,075) (1,008,330)
---------- ----------
Realized gain (loss) on investments ........... (583,991) 74,341
Change in unrealized gain (loss) on investments . (1,506,620) (1,629,813)
---------- ----------
Net gain (loss) on investments ................ (2,090,611) (1,555,472)
---------- ----------
Reinvested capital gains ........................ 1,907,813 2,393,212
---------- ----------
Net increase (decrease) in contract owners'
equity resulting from operations .......... (102,998) 970,595
---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... 1,000 248
Transfers between funds ......................... (195,920) (95,489)
Redemptions ..................................... (1,117,777) (849,571)
Annuity benefits ................................ (13,757) (14,758)
Annual contract maintenance charge (note 2) ..... (2,552) (2,814)
Contingent deferred sales charges (note 2) ...... (412) (57)
Adjustments to maintain reserves ................ (9,244) (39,913)
---------- ----------
Net equity transactions ..................... (1,338,662) (1,002,354)
---------- ----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (1,441,660) (31,759)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 10,869,899 13,745,003
---------- ----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. 9,428,239 13,713,244
========== ==========
</TABLE>
6
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NATIONWIDE VARIABLE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
<TABLE>
<CAPTION>
SBVAFResAcct SBVAFUSGovHQ TSFSBIntEq TSFSBLgCapVal
----------------- ------------------ ----------------- -----------------
2000 1999 2000 1999 2000 1999 2000 1999
-------- ------- -------- -------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............................ $ 3,172 -- 21,763 2,850 1,948 699 2,964 2,124
Mortality, expense and administration
charges (note 2) .............................. (246) (349) (4,393) (5,927) (1,779) (1,434) (1,256) (1,526)
-------- ------- -------- -------- ------- ------- ------- ------
Net investment activity ....................... 2,926 (349) 17,370 (3,077) 169 (735) 1,708 598
-------- ------- -------- -------- ------- ------- ------- ------
Proceeds from mutual fund shares sold ........... 6,986 14,692 149,080 153,259 21,814 26,998 1,430 58,305
Cost of mutual fund shares sold ................. (10,048) (21,969) (184,672) (195,016) (13,663) (22,499) (1,158) (40,846)
-------- ------- -------- -------- ------- ------- ------- ------
Realized gain (loss) on investments ........... (3,062) (7,277) (35,592) (41,757) 8,151 4,499 272 17,459
Change in unrealized gain (loss) on investments . 793 7,256 28,180 44,370 (54,419) 10,587 (12,341) (2,295)
-------- ------- -------- -------- ------- ------- ------- ------
Net gain (loss) on investments ................ (2,269) (21) (7,412) 2,613 (46,268) 15,086 (12,069) 15,164
-------- ------- -------- -------- ------- ------- ------- ------
Reinvested capital gains ........................ -- -- -- -- -- -- 5,357 4,555
-------- ------- -------- -------- ------- ------- ------- ------
Net increase (decrease) in contract owners'
equity resulting from operations .......... 657 (370) 9,958 (464) (46,099) 14,351 (5,004) 20,317
-------- ------- -------- -------- ------- ------- ------- ------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ............................... -- -- -- 254 -- 248 -- --
Transfers between funds ......................... -- -- -- (32,232) 122,304 -- 50,000 --
Redemptions ..................................... (6,709) (14,208) (143,769) (85,020) (19,958) (25,612) -- (56,702)
Annuity benefits ................................ -- -- (734) (746) -- -- -- --
Annual contract maintenance charge (note 2) ..... (27) (28) (179) (156) (54) (36) (64) (85)
Contingent deferred sales charges (note 2) ...... -- (105) -- (386) (71) -- -- --
Adjustments to maintain reserves ................ 1 14 10 -- (28) -- (30) (81)
-------- ------- -------- -------- ------- ------- ------- ------
Net equity transactions ..................... (6,735) (14,327) (144,672) (118,286) 102,193 (25,400) 49,906 (56,868)
-------- ------- -------- -------- ------- ------- ------- ------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............. (6,078) (14,697) (134,714) (118,750) 56,094 (11,049) 44,902 (36,551)
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ....... 42,651 56,435 755,979 973,092 243,354 221,543 176,754 231,199
-------- ------- -------- -------- ------- ------- ------- ------
CONTRACT OWNERS' EQUITY END OF PERIOD ............. $ 36,573 41,738 621,265 854,342 299,448 210,494 221,656 194,648
======== ======= ======== ======== ======= ======= ======= =======
(Continued)
</TABLE>
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NATIONWIDE VARIABLE ACCOUNT-4
STATEMENTS OF CHANGES IN
CONTRACT OWNERS' EQUITY, CONTINUED
STATEMENTS OF OPERATIONS, CONTINUED
SIX MONTH PERIODS ENDED JUNE 30, 2000 AND 1999
(UNAUDITED)
TSFSBMMkt
----------------------
2000 1999
--------- ---------
INVESTMENT ACTIVITY:
Reinvested dividends ................................ $ 1,359 925
Mortality, expense and administration
charges (note 2) .................................. (328) (291)
--------- ---------
Net investment activity ........................... 1,031 634
--------- ---------
Proceeds from mutual fund shares sold ............... 147,370 137,904
Cost of mutual fund shares sold ..................... (147,370) (137,904)
--------- ---------
Realized gain (loss) on investments ............... -- --
Change in unrealized gain (loss) on investments ..... -- --
--------- ---------
Net gain (loss) on investments .................... -- --
--------- ---------
Reinvested capital gains ............................ -- --
--------- ---------
Net increase (decrease) in contract owners'
equity resulting from operations .............. 1,031 634
--------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners ................................... -- --
Transfers between funds ............................. 23,616 155,938
Redemptions ......................................... (146,506) (137,554)
Annuity benefits .................................... -- --
Annual contract maintenance charge (note 2) ......... (60) (60)
Contingent deferred sales charges (note 2) .......... -- --
Adjustments to maintain reserves .................... 7 (1)
--------- ---------
Net equity transactions ......................... (122,943) 18,323
--------- ---------
NET CHANGE IN CONTRACT OWNERS' EQUITY ................. (121,912) 18,957
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ........... 135,599 114,284
--------- ---------
CONTRACT OWNERS' EQUITY END OF PERIOD ................. $ 13,687 133,241
========= =========
See accompanying notes to financial statements.
8
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--------------------------------------------------------------------------------
NATIONWIDE VARIABLE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2000 AND 1999
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
Nationwide Variable Account-4 (the Account) was established pursuant to
a resolution of the Board of Directors of Nationwide Life Insurance
Company (the Company) on October 7, 1987, and commenced operations on
July 10, 1989. The Account has been registered as a unit investment
trust under the Investment Company Act of 1940.
The Company offers tax qualified and non-tax qualified Individual
Deferred Variable Annuity Contracts through the Account. The primary
distribution for the contracts is through the brokerage community.
Presently, the contracts are not actively marketed.
(b) The Contracts
Only contracts without a front-end sales charge, but with a contingent
deferred sales charge and certain other fees, are offered for purchase.
See note 2 for a discussion of contract expenses.
Contract owners in either the accumulation or the payout phase may
invest in the following:
Portfolios of the Greenwich Street Series Fund (Greenwich SSF);
Greenwich SSF - Intermediate High Grade Portfolio (GSSFIHiGr)
Greenwich SSF - Total Return Portfolio (GSSFTotRt)
Portfolios of the Smith Barney Variable Account Funds (Smith
Barney VAF);
Smith Barney VAF - The Income and Growth Portfolio (SBVAFIncGro)
Smith Barney VAF - The Reserve Account Portfolio (SBVAFResAcct)
Smith Barney VAF - The U.S. Government/High Quality Securities
Portfolio (SBVAFUSGovHQ)
Portfolios of the Travelers Series Fund Inc.;
Travelers Series Fund Inc. - Smith Barney International Equity
Portfolio (TSFSBIntEq)
Travelers Series Fund Inc. - Smith Barney Large Cap Value
Portfolio (TSFSBLgCapVal)
Travelers Series Fund Inc. - Smith Barney Money Market Portfolio
(TSFSBMMkt)
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 note 2). The accompanying financial
statements include only contract owners' purchase payments pertaining
to the variable portions of their contracts and exclude any purchase
payments for fixed dollar benefits, the latter being included in the
accounts of the Company.
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.
(Continued)
9
<PAGE> 10
NATIONWIDE VARIABLE ACCOUNT-4
NOTES TO FINANCIAL STATEMENTS, CONTINUED
(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. The cost of investments
sold is determined on a specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company which is taxed as a life insurance company
under the 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) Calculation of Annuity Reserves
Annuity reserves are computed for contracts in the variable payout
stage according to industry standard mortality tables. The assumed
investment return is 3.5 percent unless the annuitant elects otherwise,
in which case the rate may vary from 3.5 percent to 7 percent, as
regulated by the laws of the respective states. The mortality risk is
fully borne by the Company and may result in additional amounts being
transferred into the Account by the Company to cover greater longevity
of annuitants than expected. Conversely, if reserves exceed amounts
required, transfers may be made to the Company.
(2) EXPENSES
The Company does not deduct a sales charge from purchase payments received
from the contract owners. However, if any part of the contract value of
such contracts is surrendered, the Company will, with certain exceptions,
deduct from a contract owner's contract value a contingent deferred sales
charge not to exceed 7% of the lesser of purchase payments or the amount
surrendered, such charge declining 1% per year, to 0%, after the purchase
payment has been held in the contract for 84 months. No sales charges are
deducted on redemptions used to purchase units in the fixed investment
options of the Company.
The following contract charges are deducted by the Company: (a) an annual
contract maintenance charge of up to $30, dependent upon contract type and
issue date, which is satisfied by surrendering units; and (b) a mortality
risk charge, an expense risk charge and an administration charge assessed
through the daily unit value calculation equal to an annual rate of 0.80%,
0.45% and 0.05%, respectively.
10
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[THIS PAGE LEFT BLANK INTENTIONALLY]
11
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NATIONWIDE LIFE INSURANCE COMPANY Bulk Rate
HOME OFFICE: ONE NATIONWIDE PLAZA - COLUMBUS, OHIO 43215-2220 U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
