<PAGE> 1
[NATIONWIDE LOGO]
NATIONWIDE(R)
VLI SEPARATE
ACCOUNT-3
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1996
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
APO-2413-H (6/96)
<PAGE> 2
[NATIONWIDE LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215
[PHOTO]
PRESIDENT'S MESSAGE
We are pleased to present the 1996 semi-annual report of the Nationwide VLI
Separate Account-3.
Equity investments provided a respectable return for the first half of 1996 with
the major market indices holding comfortably in double digits. Fixed-income
investments, however, did not perform as well with the average bond fund showing
slightly negative performance for the period. This was due to rising interest
rates and lingering inflation fears.
The U.S. economy showed signs of increasing strength during the first half of
the year. The question remains: will growth fall back to the perceived
inflation-free path by itself or will the Federal Reserve have to step in and
enforce moderation? Recent economic statistics, such as the July unemployment
report, point in the direction of some moderation. Also, fierce competition in
all consumer-goods markets make inflationary price increases very difficult. One
way or the other, we expect slower economic growth in the near future.
Financial assets will remain the preferred individual investment option because
they will continue providing security, liquidity, and income and growth.
We appreciate your confidence in the Nationwide Insurance Enterprise and in our
life and annuity products. You have our assurance that your personal
satisfaction with our products and service is our highest priority.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
3
<PAGE> 3
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1996
(UNAUDITED)
<TABLE>
<S> <C>
Assets:
Investments at market value:
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
1,264 shares (cost $21,678) ................................. $ 23,823
Dreyfus Stock Index Fund (DryStkIx)
7,893 shares (cost $131,855) ................................ 147,764
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
9,065 shares (cost $172,146) ................................ 176,585
Fidelity VIP - Growth Portfolio (FidVIPGr)
7,914 shares (cost $232,999) ................................ 237,890
Fidelity VIP - High Income Portfolio (FidVIPHI)
2,056 shares (cost $23,837) ................................. 24,219
Fidelity VIP - Overseas Portfolio (FidVIPOv)
844 shares (cost $14,154) ................................... 15,090
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
4,662 shares (cost $69,814) ................................. 72,869
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
5,022 shares (cost $70,189) ................................. 74,223
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
259,940 shares (cost $2,975,110) ............................ 3,831,513
Nationwide SAT - Government Bond Fund (NSATGvtBd)
137,066 shares (cost $1,499,777) ............................ 1,484,430
Nationwide SAT - Money Market Fund (NSATMyMkt)
383,939 shares (cost $383,939) .............................. 383,939
Nationwide SAT - Small Company Fund (NSATSmCo)
1,623 shares (cost $20,788) ................................. 21,748
Nationwide SAT - Total Return Fund (NSATTotRe)
894,541 shares (cost $9,432,044) ............................ 11,092,303
Neuberger & Berman - Balanced Portfolio (NBAMTBal)
78,553 shares (cost $1,199,170) ............................. 1,205,781
Neuberger & Berman - Growth Portfolio (NBAMTGro)
2,187 shares (cost $56,991) ................................. 54,637
Neuberger & Berman - Limited Maturity Bond Portfolio (NBAMTLMat)
658 shares (cost $9,278) .................................... 8,888
Neuberger & Berman - Partners Portfolio (NBAMTPart)
1,656 shares (cost $21,240) ................................. 23,660
Oppenheimer - Bond Fund (OppBdFd)
203 shares (cost $2,379) .................................... 2,316
Oppenheimer - Global Securities Fund (OppGlSec)
1,245 shares (cost $19,558) ................................. 20,225
Oppenheimer - Multiple Strategies Fund (OppMult)
205 shares (cost $2,976) .................................... 3,017
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Strong VIF - Strong Discovery Fund II (StDisc2)
1,024 shares (cost $12,703) ...................................... 10,873
Strong VIF - Strong International Stock Fund II (StIntStk2)
637 shares (cost $7,254) ......................................... 7,366
Strong VIF - Strong Special Fund II (StSpec2)
2,491 shares (cost $42,132) ...................................... 43,648
TCI Portfolios - TCI Advantage (TCIAdv)
125,106 shares (cost $681,040) ................................... 753,136
TCI Portfolios - TCI Balanced (TCIBal)
1,112 shares (cost $7,761) ....................................... 7,907
TCI Portfolios - TCI Growth (TCIGro)
5,648 shares (cost $66,380) ...................................... 61,285
TCI Portfolios - TCI International (TCIInt)
3,630 shares (cost $20,012) ...................................... 20,290
Van Eck - Gold and Natural Resources Fund (VEGoldNR)
1,956 shares (cost $32,237) ...................................... 30,610
Van Eck - Worldwide Bond Fund (VEWrldBd)
62 shares (cost $686) ............................................ 659
Van Kampen American Capital - Real Estate Securities Fund (VKACRESec)
79 shares (cost $859) ............................................ 924
Warburg Pincus - International Equity Portfolio (WPIntEq)
1,763 shares (cost $19,920) ...................................... 20,642
Warburg Pincus - Small Company Growth Portfolio (WPSmCoGr)
3,476 shares (cost $41,354) ...................................... 49,635
----------
Total investments .......................................... 19,911,895
Accounts receivable .................................................... 1,099
----------
Total Assets .................................................. 19,912,994
==========
CONTRACT OWNERS' EQUITY ................................................... $19,912,994
==========
</TABLE>
5
<PAGE> 5
Contract owners' equity represented by:
<TABLE>
<CAPTION>
UNITS UNIT VALUE
--------- ------------
<S> <C> <C> <C>
The Dreyfus Socially Responsible Growth Fund, Inc. ...... 1,525 $15.620864 $ 23,822
Dreyfus Stock Index Fund ................................ 9,793 15.087986 147,757
Fidelity VIP - Equity-Income Portfolio .................. 7,538 23.424312 176,572
Fidelity VIP - Growth Portfolio ......................... 10,148 23.442894 237,898
Fidelity VIP - High Income Portfolio .................... 1,087 22.284936 24,224
Fidelity VIP - Overseas Portfolio ....................... 1,032 14.603161 15,070
Fidelity VIP-II - Asset Manager Portfolio ............... 4,324 16.843096 72,830
Fidelity VIP-II - Contrafund Portfolio .................. 6,202 11.969216 74,233
Nationwide SAT - Capital Appreciation Fund .............. 237,185 16.156308 3,832,034
Nationwide SAT - Government Bond Fund ................... 101,098 14.683688 1,484,491
Nationwide SAT - Money Market Fund ...................... 32,105 11.960484 383,991
Nationwide SAT - Small Company Fund ..................... 1,629 13.370817 21,781
Nationwide SAT - Total Return Fund ...................... 563,939 19.669875 11,092,610
Neuberger & Berman - Balanced Portfolio ................. 82,972 14.532745 1,205,811
Neuberger & Berman - Growth Portfolio ................... 3,250 16.813980 54,645
Neuberger & Berman - Limited Maturity Bond Portfolio .... 679 13.083551 8,884
Neuberger & Berman - Partners Portfolio ................. 1,555 15.209561 23,651
Oppenheimer - Bond Fund ................................. 154 15.054812 2,318
Oppenheimer - Global Securities Fund .................... 1,625 12.446692 20,226
Oppenheimer - Multiple Strategies Fund .................. 178 17.026933 3,031
Strong VIF - Strong Discovery Fund II ................... 678 16.069822 10,895
Strong VIF - Strong International Stock Fund II ......... 647 11.567221 7,484
Strong VIF - Strong Special Fund II ..................... 2,221 19.667084 43,681
TCI Portfolios - TCI Advantage .......................... 29,153 13.552588 395,099
TCI Portfolios - TCI Advantage (Depositor) .............. 25,000 14.322518 358,063
TCI Portfolios - TCI Balanced ........................... 572 13.783329 7,884
TCI Portfolios - TCI Growth ............................. 3,754 16.306742 61,216
TCI Portfolios - TCI International ...................... 1,811 11.198083 20,280
Van Eck - Gold and Natural Resources Fund ............... 1,781 17.184146 30,605
Van Eck - Worldwide Bond Fund ........................... 51 12.924410 659
Van Kampen American Capital - Real Estate Securities Fund 81 11.658620 944
Warburg Pincus - International Equity Portfolio ......... 1,764 11.704777 20,647
Warburg Pincus - Small Company Growth Portfolio ......... 3,505 14.167737 49,658
======= ========= ----------
$19,912,994
==========
</TABLE>
See accompanying notes to financial statements.
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1996, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
1996 1995 1994
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested capital gains and dividends ........... $ 459,814 229,606 144,981
----------- ----------- -----------
Gain (loss) on investments:
Proceeds from redemptions of mutual fund shares 857,865 998,011 2,753,473
Cost of mutual fund shares sold ............... (764,127) (967,008) (2,729,611)
----------- ----------- -----------
Realized gain (loss) on investments ........... 93,738 31,003 23,862
Change in unrealized gain (loss) on investments 770,146 1,513,088 (383,089)
----------- ----------- -----------
Net gain (loss) on investments ............. 863,884 1,544,091 (359,227)
----------- ----------- -----------
Net investment activity ................. 1,323,698 1,773,697 (214,246)
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from contract owners .. 2,475,606 1,918,822 4,470,935
Surrenders (note 2d) ............................. (185,923) (106,759) (33,762)
Death Benefits (note 4) .......................... (967) (10,991) (16,283)
Policy loans (net of repayments) (note 5) ........ (422,352) (136,713) (33,177)
----------- ----------- -----------
Net equity transactions ................. 1,866,364 1,664,359 4,387,713
----------- ----------- -----------
EXPENSES:
Deductions for surrender charges (note 2d) ....... (41,427) (299) --
Redemptions to pay cost of insurance charges
and administrative charges (notes 2b and 2c) .. (1,065,013) (983,343) (1,151,728)
Deductions for asset charges (note 3) ............ (75,021) (54,574) (34,132)
----------- ----------- -----------
Total expenses .......................... (1,181,461) (1,038,216) (1,185,860)
----------- ----------- -----------
NET CHANGE IN CONTRACT OWNERS' EQUITY ............... 2,008,601 2,399,840 2,987,607
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD ......... 17,904,393 12,661,113 7,313,397
----------- ----------- -----------
CONTRACT OWNERS' EQUITY END OF PERIOD ............... $ 19,912,994 15,060,953 10,301,004
=========== =========== ===========
</TABLE>
See accompanying notes to financial statements.
7
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1996, 1995 AND 1994
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLISeparate Account-3 (the Account) was established
pursuant to a resolution of the Board of Directors of Nationwide Life Insurance
Company (the Company) on August 8, 1984. The Account has been registered as a
unit investment trust under the Investment Company Act of 1940. On August 21,
1991, the Company (Depositor) transferred to the Account 50,000 shares of TCI
Portfolios, Inc. - TCI Advantage, for which it was credited with 25,000
accumulation units. The value of the accumulation units purchased by the Company
on August 21, 1991 was $250,000.
The Company offers Modified Single Premium and Flexible Premium Variable
Life Insurance Policies through the Account. The primary distribution for the
contracts is through Company Agents; however, other distributors may be
utilized..
(b) The Contracts
Only contracts with a front-end sales load, a surrender charge and certain
other fees have been purchased. See note 2 for a discussion of policy charges
and note 3 for asset charges.
Contract owners may invest in the following funds:
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)(formerly Dreyfus Life and Annuity
Index Fund, Inc. (DLAI))
Portfolios of the Fidelity Variable Insurance Products Fund (Fidelity
VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund II (Fidelity
VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
Funds of the Nationwide Separate Account Trust (Nationwide SAT) (managed
for a fee by an affiliated investment advisor);
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
Nationwide SAT - Government Bond Fund (NSATGvtBd)
Nationwide SAT - Money Market Fund (NSATMyMkt)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman);
Neuberger & Berman - Balanced Portfolio (NBAMTBal)
Neuberger & Berman - Growth Portfolio (NBAMTGro)
Neuberger & Berman - Limited Maturity Bond Portfolio (NBAMTLMat)
Neuberger & Berman - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer);
Oppenheimer - Bond Fund (OppBdFd)
Oppenheimer - Global Securities Fund (OppGlSec)
Oppenheimer - Multiple Strategies Fund (OppMult)
Funds of the Strong Variable Insurance Funds (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Strong VIF - Strong Special Fund II (StSpec2)
8
<PAGE> 8
Portfolios of the TCI Portfolios, Inc. (TCI Portfolios);
TCI Portfolios - TCI Advantage (TCIAdv)
TCI Portfolios - TCI Balanced (TCIBal)
TCI Portfolios - TCI Growth (TCIGro)
TCI Portfolios - TCI International (TCIInt)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck) (formerly Van
Eck Investment Trust);
Van Eck - Gold and Natural Resources Fund (VEGoldNR)
Van Eck - Worldwide Bond Fund (VEWrldBd) (formerly Van Eck - Global
Bond Fund (VEGlobBd))
Fund of the Van Kampen American Capital Life Investment Trust (Van
Kampen American Capital);
Van Kampen American Capital - Real Estate Securities Fund (VKACRESec)
Portfolios of the Warburg Pincus Trust (Warburg Pincus);
Warburg Pincus - International Equity Portfolio (WPIntEq)
Warburg Pincus - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 1996, 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 policy charges (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.
(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, 1996. The cost of investments sold is
determined on the specific identification basis. Investment transactions are
accounted for on the trade date (date the order to buy or sell is executed) and
dividend income is recorded on the ex-dividend date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with, operations
of the Company, which is taxed as a life insurance company under the 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.
(2) POLICY CHANGES
(a) Deductions from Premium
On flexible premium life insurance 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. Additionally, the Company deducts a front-end
sales load of up to 3.5% from each premium payment received. 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. The
amount of the charge is based upon age, sex, rate class and net amount at risk
(death benefit less total contract value).
(c) Administrative Charges
For flexible premium contracts, the Company currently deducts a monthly
administrative charge of $25 during the first policy year and $5 per month
thereafter (may deduct up to $7.50, maximum) to recover policy maintenance,
accounting, record keeping and other administrative expenses. 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.
The above charges are assessed against each contract by liquidating units.
9
<PAGE> 9
(d) Surrenders
Policy surrenders result in a redemption of the contract value from the
Separate 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 amount
of the charge is based upon a specified percentage of the initial surrender
charge which varies by issue age, sex and rate class. For flexible premium
contracts, the charge is 100% of the initial surrender charge in the first year,
declining to 30% of the initial surrender charge in the ninth year.
No surrender charge is assessed on any contract surrendered after the
ninth year.
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. No charges were deducted from the initial funding, or from
earnings thereon.
(3) ASSET CHARGES
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.
This charge is assessed through the unit value calculation.
(4) DEATH BENEFITS
Death benefits result in a redemption of the contract value from the
Separate Account and payment of the death benefit proceeds, less any outstanding
policy loans and policy charges, to the legal beneficiary. The excess of the
death benefit proceeds over the contract value on the date of death is paid by
the Company's general account.
(5) POLICY LOANS (NET OF REPAYMENTS)
Contract provisions allow contract owners to borrow 90% of a policy's cash
surrender value. The contract is charged 6% on the outstanding loan and is due
and payable in advance on the policy anniversary.
At the time the loan is granted, the amount of the loan plus interest, if
any, 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. Interest credited is paid by the
Company's general account to the Account. Loan repayments result in a transfer
of collateral back to the Account.
(6) SCHEDULE I
Schedule I presents the components of the change in the unit values, which
are the basis for contract owners' equity. This schedule is presented in the
following format:
- Beginning unit value - Jan. 1
- Reinvested capital gains and dividends
(This amount reflects the increase in the unit value due to
capital gains and dividend distributions from the underlying
mutual funds.)
- Unrealized gain (loss)
(This amount reflects the increase (decrease) in the unit value
resulting from the market appreciation (depreciation) of the
underlying mutual funds.)
- Asset charges
(This amount reflects the decrease in the unit value due to the
charge discussed in note 3.)
- Ending unit value - June 30
- Percentage increase (decrease) in unit value.
10
<PAGE> 10
SCHEDULE I
NATIONWIDE VLI SEPARATE ACCOUNT-3
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1996, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
DRYSRGRO DRYSTKIX FIDVIPEI FIDVIPGR FIDVIPHI FIDVIPOV FIDVIPAM
<S> <C> <C> <C> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 $14.401809 13.775382 22.215745 21.256059 20.852993 13.645033 15.982529
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .152111 1.025291 1.527554 1.902180 .335875 1.051899
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.279416 1.217898 .274656 .748227 (.384502) .678251 (.126389)
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.060361) (.057405) (.091380) (.088946) (.085735) (.055998) (.064943)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $15.620864 15.087986 23.424312 23.442894 22.284936 14.603161 16.843096
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 8% 10% 5% 10% 7% 7% 5%
===================================================================================================================================
1995
Beginning unit value - Jan. 1 ** ** ** ** ** ** **
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*
===================================================================================================================================
1994
Beginning unit value - Jan. 1 ** ** ** ** ** ** **
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss)
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*
===================================================================================================================================
<CAPTION>
FIDVIPCON
<S> <C>
1996
Beginning unit value - Jan. 1 11.099135
- ----------------------------------------------
Reinvested capital gains
and dividends .104631
- ----------------------------------------------
Unrealized gain (loss) .811093
- ----------------------------------------------
Asset charges (.045643)
- ----------------------------------------------
Ending unit value - June 30 11.969216
- ----------------------------------------------
Percentage increase (decrease)
in unit value* 8%
==============================================
1995
Beginning unit value - Jan. 1 **
- ----------------------------------------------
Reinvested capital gains
and dividends
- ----------------------------------------------
Unrealized gain (loss)
- ----------------------------------------------
Asset charges
- ----------------------------------------------
Ending unit value - June 30
- ----------------------------------------------
Percentage increase (decrease)
in unit value*
==============================================
1994
Beginning unit value - Jan. 1 **
- ----------------------------------------------
Reinvested capital gains
and dividends
- ----------------------------------------------
Unrealized gain (loss)
- ----------------------------------------------
Asset charges
- ----------------------------------------------
Ending unit value - June 30
- ----------------------------------------------
Percentage increase (decrease)
in unit value*
==============================================
<FN>
* This is not an annualized rate of return as it is the change for a six month
period and asset charges do not include the policy charges discussed in
note 2.
** This investment option was not utilized or was not available.
</TABLE>
11
<PAGE> 11
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-3
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1996, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
NSATCAPAP NSATGVTBD NSATMYMKT NSATSMCO NSATTOTRE NBAMTBAL NBAMTGRO
<S> <C> <C> <C> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 $14.713230 14.984933 11.714295 11.420759 18.192762 14.157643 15.962482
- ----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .130848 .457308 .293298 .022437 .196992 2.170851 1.448641
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.374408 (.700476) .000000 1.976674 1.355728 (1.738205) (.530530)
- ----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.062178) (.058077) (.047109) (.049053) (.075607) (.057544) (.066613)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $16.156308 14.683688 11.960484 13.370817 19.669875 14.532745 16.813980
- ----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 10% (2)% 2% 17% 8% 3% 5%
==================================================================================================================================
1995
Beginning unit value - Jan. 1 $11.465403 12.720514 11.176411 ** 14.205723 11.531273 **
- ----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .110173 .438811 .316243 .219815 .293664
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.039681 1.069274 .000000 2.053852 1.537987
- ----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.047881) (.053537) (.045408) (.060943) (.049269)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $12.567376 14.175062 11.447246 16.418447 13.313655
- ----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 10% 11% 2% 16% 15%
==================================================================================================================================
1994
Beginning unit value - Jan. 1 $11.662121 13.250482 10.845265 ** 14.167308 12.027618 **
- ----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .072792 .396083 .171513 .175370 .469287
- ----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.654655) (.921057) .000000 (.208324) (1.303131)
- ----------------------------------------------------------------------------------------------------------------------------------
Asset charges (.045583) (.051463) (.043483) (.056410) (.047045)
- ----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $11.034675 12.674045 10.973295 14.077944 11.146729
- ----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (5)% (4)% 1% (1)% (7)%
==================================================================================================================================
<CAPTION>
NBAMTLMAT
<S> <C>
1996
Beginning unit value - Jan. 1 13.096811
- ----------------------------------------------
Reinvested capital gains
and dividends 1.102543
- ----------------------------------------------
Unrealized gain (loss) (1.064127)
- ----------------------------------------------
Asset charges (.051676)
- ----------------------------------------------
Ending unit value - June 30 13.083551
- ----------------------------------------------
Percentage increase (decrease)
in unit value* 0%
==============================================
1995
Beginning unit value - Jan. 1 **
- ----------------------------------------------
Reinvested capital gains
and dividends
- ----------------------------------------------
Unrealized gain (loss)
- ----------------------------------------------
Asset charges
- ----------------------------------------------
Ending unit value - June 30
- ----------------------------------------------
Percentage increase (decrease)
in unit value*
==============================================
1994
Beginning unit value - Jan. 1 **
- ----------------------------------------------
Reinvested capital gains
and dividends
- ----------------------------------------------
Unrealized gain (loss)
- ----------------------------------------------
Asset charges
- ----------------------------------------------
Ending unit value - June 30
- ----------------------------------------------
Percentage increase (decrease)
in unit value*
==============================================
<FN>
* This is not an annualized rate of return as it is the change for a six month
period and asset charges do not include the policy charges discussed in
note 2.
** This investment option was not utilized or was not available.
</TABLE>
12
<PAGE> 12
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-3
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1996, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTPART OPPBDFD OPPGLSEC OPPMULT STDISC2
<S> <C> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 $13.591346 15.164813 11.542134 16.100377 16.514850
- ------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .554011 .485469 .000000 .831692 3.137844
- ------------------------------------------------------------------------------------------------------
Unrealized gain (loss) 1.122308 (.536110) .952319 .160781 (3.518027)
- ------------------------------------------------------------------------------------------------------
Asset charges (.058104) (.059360) (.047761) (.065917) (.064845)
- ------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $15.209561 15.054812 12.446692 17.026933 16.069822
- ------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 12% (1)% 8% 6% (3)%
======================================================================================================
1995
Beginning unit value - Jan. 1 ** ** ** ** **
- ------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends
- ------------------------------------------------------------------------------------------------------
Unrealized gain (loss)
- ------------------------------------------------------------------------------------------------------
Asset charges
- ------------------------------------------------------------------------------------------------------
Ending unit value - June 30
- ------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*
======================================================================================================
1994
Beginning unit value - Jan. 1 ** ** ** ** **
- ------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends
- ------------------------------------------------------------------------------------------------------
Unrealized gain (loss)
- ------------------------------------------------------------------------------------------------------
Asset charges
- ------------------------------------------------------------------------------------------------------
Ending unit value - June 30
- ------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value*
======================================================================================================
<CAPTION>
STINTSTK2 STSPEC2 TCIADV
<S> <C> <C> <C>
1996
Beginning unit value - Jan. 1 10.236021 18.408627 13.112917
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends .024915 .804250 .840768
- ----------------------------------------------------------------------------
Unrealized gain (loss) 1.349483 .530996 (.348553)
- ----------------------------------------------------------------------------
Asset charges (.043198) (.076789) (.052544)
- ----------------------------------------------------------------------------
Ending unit value - June 30 11.567221 19.667084 13.552588
- ---------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 13% 7% 3%
============================================================================
1995
Beginning unit value - Jan. 1 ** ** $11.321934
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends .176395
- ----------------------------------------------------------------------------
Unrealized gain (loss) .931473
- ----------------------------------------------------------------------------
Asset charges (.046699)
- ----------------------------------------------------------------------------
Ending unit value - June 30 $12.383103
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 9%
============================================================================
1994
Beginning unit value - Jan. 1 ** ** $11.295721
- ----------------------------------------------------------------------------
Reinvested capital gains
and dividends .128749
- ----------------------------------------------------------------------------
Unrealized gain (loss) (.304481)
- ----------------------------------------------------------------------------
Asset charges (.045033)
- ----------------------------------------------------------------------------
Ending unit value - June 30 $11.074956
- ----------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (2)%
============================================================================
<FN>
* This is not an annualized rate of return as it is the change for a six month
period and asset charges do not include the policy charges discussed in
note 2.
** This investment option was not utilized or was not available.
</TABLE>
13
<PAGE> 13
SCHEDULE I, CONTINUED
NATIONWIDE VLI SEPARATE ACCOUNT-3
SCHEDULES OF CHANGES IN UNIT VALUE
SIX MONTH PERIODS ENDED JUNE 30, 1996, 1995 AND 1994
(UNAUDITED)
<TABLE>
<CAPTION>
TCIADV+ TCIBAL TCIGRO TCIINT VEGOLDNR VEWRLDBD VKACRESEC
<S> <C> <C> <C> <C> <C> <C> <C>
1996
Beginning unit value - Jan. 1 $13.802855 13.155049 16.149061 10.477472 15.612002 13.253457 10.792212
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .886970 .539952 1.812196 .249286 .331277 .361660 .008023
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.367307) .141389 (1.589861) .513970 1.310902 (.639351) .902276
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges .000000 (.053061) (.064654) (.042645) (.070035) (.051356) (.043891)
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $14.322518 13.783329 16.306742 11.198083 17.184146 12.924410 11.658620
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 4% 5% 1% 7% 10% (2)% 8%
===================================================================================================================================
1995
Beginning unit value - Jan. 1 $11.822996 ** ** ** ** ** **
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .184730
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) .975046
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges .000000
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $12.982772
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* 10%
===================================================================================================================================
1994
Beginning unit value - Jan. 1 $11.701906 ** ** ** ** ** **
- -----------------------------------------------------------------------------------------------------------------------------------
Reinvested capital gains
and dividends .133775
- -----------------------------------------------------------------------------------------------------------------------------------
Unrealized gain (loss) (.316874)
- -----------------------------------------------------------------------------------------------------------------------------------
Asset charges .000000
- -----------------------------------------------------------------------------------------------------------------------------------
Ending unit value - June 30 $11.518807
- -----------------------------------------------------------------------------------------------------------------------------------
Percentage increase (decrease)
in unit value* (2)%
===================================================================================================================================
<CAPTION>
WPLNTEQ WPSMCOGR
<S> <C> <C>
1996
Beginning unit value - Jan. 1 10.687672 12.461074
- -------------------------------------------------------------
Reinvested capital gains
and dividends .000000 .000000
- -------------------------------------------------------------
Unrealized gain (loss) 1.061762 1.759620
- -------------------------------------------------------------
Asset charges (.044657) (.052957)
- -------------------------------------------------------------
Ending unit value - June 30 11.704777 14.167737
- -------------------------------------------------------------
Percentage increase (decrease)
in unit value* 10% 14%
=============================================================
1995
Beginning unit value - Jan. 1 ** **
- -------------------------------------------------------------
Reinvested capital gains
and dividends
- -------------------------------------------------------------
Unrealized gain (loss)
- -------------------------------------------------------------
Asset charges
- -------------------------------------------------------------
Ending unit value - June 30
- -------------------------------------------------------------
Percentage increase (decrease)
in unit value*
=============================================================
1994
Beginning unit value - Jan. 1 ** **
- -------------------------------------------------------------
Reinvested capital gains
and dividends
- -------------------------------------------------------------
Unrealized gain (loss)
- -------------------------------------------------------------
Asset charges
- -------------------------------------------------------------
Ending unit value - June 30
- -------------------------------------------------------------
Percentage increase (decrease)
in unit value*
=============================================================
<FN>
* This is not an annualized rate of return as it is the change for a six month
period and asset charges do not include the policy charges discussed in
note 2.
** This investment option was not utilized or was not available.
+ For Depositor, see note 1a.
</TABLE>
See note 6.
14
<PAGE> 14
[THIS PAGE LEFT BLANK INTENTIONALLY]
15
<PAGE> 15
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