<PAGE> 1
[LOGO]
NATIONWIDE(R)
VLI SEPARATE
ACCOUNT-3
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1998
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
[LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
We at Nationwide Life Insurance Company are pleased to present the 1998
semi-annual report of the Nationwide VLI Separate Account-3.
The bull market continued its run in the first half of 1998. Most of the gains
came in the first quarter with more modest returns or small losses for the
second half of the period. At this writing, a market correction that began in
the second quarter continues to provide a good deal of day-to-day volatility.
Much of the capriciousness of the market is due to uncertainty about the
economic outcome in Asia. However, we think the correction will be of limited
magnitude and duration and will provide a healthy respite before further market
advances.
We believe that existing economic and market fundamentals provide an ongoing
favorable environment for financial assets. Interest rates remain low; inflation
is nearly nonexistent; corporate earnings, albeit slowing, remain positive, and
U.S. economic growth appears to be on a modest but sustainable track.
Against this backdrop, we believe our variable insurance products continue to
provide the versatile investment vehicle you need to respond to changing market
conditions. We are committed to the continual evaluation of our products and
services to ensure that we remain responsive to your long-term financial
planning and retirement-savings needs.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 17, 1998
3
<PAGE> 3
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1998
(UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investments at market value:
American Century VP - American Century VP Advantage (ACVPAdv)
141,979 shares (cost $800,446) ........................................ $ 928,544
American Century VP - American Century VP Balanced (ACVPBal)
2,218 shares (cost $16,258) ........................................... 18,273
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
6,415 shares (cost $64,654) ........................................... 59,659
American Century VP - American Century VP International (ACVPInt)
4,078 shares (cost $24,304) ........................................... 32,787
American Century VP - American Century VP Value (ACVPValue)
888 shares (cost $6,414) .............................................. 6,036
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
2,050 shares (cost $45,849) ........................................... 60,596
Dreyfus Stock Index Fund (DryStkIx)
13,175 shares (cost $281,022) ......................................... 395,521
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
268 shares (cost $7,853) .............................................. 9,032
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
280 shares (cost $6,194) .............................................. 6,063
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
22,979 shares (cost $478,277) ......................................... 578,374
Fidelity VIP - Growth Portfolio (FidVIPGr)
13,396 shares (cost $416,005) ......................................... 513,324
Fidelity VIP - High Income Portfolio (FidVIPHI)
4,668 shares (cost $57,958) ........................................... 58,955
Fidelity VIP - Overseas Portfolio (FidVIPOv)
988 shares (cost $17,802) ............................................. 20,368
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
7,138 shares (cost $112,945) .......................................... 123,126
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
18,771 shares (cost $313,046) ......................................... 412,034
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
155 shares (cost $3,022) .............................................. 3,166
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
294,063 shares (cost $3,852,738) ...................................... 7,407,446
Nationwide SAT - Government Bond Fund (NSATGvtBd)
157,980 shares (cost $1,737,323) ...................................... 1,816,775
Nationwide SAT - Money Market Fund (NSATMyMkt)
334,784 shares (cost $334,784) ........................................ 334,784
Nationwide SAT - Small Company Fund (NSATSmCo)
4,107 shares (cost $58,189) ........................................... 69,085
Nationwide SAT - Total Return Fund (NSATTotRe)
1,000,349 shares (cost $11,564,777) ................................... 18,706,531
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
93,993 shares (cost $1,448,210) ................................. 1,514,232
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
2,559 shares (cost $66,834) ..................................... 67,341
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
799 shares (cost $11,037) ....................................... 10,846
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
8,452 shares (cost $152,655) .................................... 162,698
Oppenheimer VAF - Bond Fund (OppBdFd)
333 shares (cost $3,909) ........................................ 3,995
Oppenheimer VAF - Global Securities Fund (OppGISec)
3,074 shares (cost $55,917) ..................................... 66,711
Oppenheimer VAF - Growth Fund (OppGro)
130 shares (cost $4,269) ........................................ 4,507
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
496 shares (cost $7,654) ........................................ 8,488
Strong Opportunity Fund II, Inc. (StOpp2)
6,340 shares (cost $122,247) .................................... 137,828
Strong VIF - Strong Discovery Fund II (StDisc2)
2,203 shares (cost $25,546) ..................................... 28,132
Strong VIF - Strong International Stock Fund II (StIntStk2)
1,402 shares (cost $15,588) ..................................... 13,813
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
143 shares (cost $1,518) ........................................ 1,608
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
516 shares (cost $7,021) ........................................ 4,309
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
570 shares (cost $9,214) ........................................ 6,585
Van Kampen American Capital LIT -
Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
2,064 shares (cost $32,227) ..................................... 30,567
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
2,437 shares (cost $28,714) ..................................... 28,950
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
82 shares (cost $869) ........................................... 1,026
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
2,401 shares (cost $34,305) ..................................... 41,472
-----------
Total assets ................................................. 33,693,587
ACCOUNTS PAYABLE ......................................................... 1,619
-----------
CONTRACT OWNERS' EQUITY (NOTE 7) ......................................... $33,691,968
===========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
5
<PAGE> 5
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL
---------------------------------------------
<S> <C> <C> <C>
1998 1997 1996
------------- ------------- -------------
INVESTMENT ACTIVITY:
Reinvested dividends ........ $ 267,089 258,944 245,576
Mortality and expense charges
(note 3)................... (125,965) (95,040) (75,021)
-------------- -------------- --------------
141,124 163,904 170,555
Net investment income...... -------------- -------------- --------------
Proceeds from mutual fund 1,231,676 1,163,656 857,865
shares sold................ (829,101) (946,332) (764,127)
Cost of mutual funds sold.... -------------- -------------- --------------
Realized gain (loss) on 402,575 217,324 93,738
investments..............
Change in unrealized gain (loss) 3,125,717 3,235,166 770,146
on investments............. -------------- -------------- --------------
3,528,292 3,452,490 863,884
Net gain (loss) on investments -------------- -------------- --------------
482,670 179,051 214,238
Reinvested capital gains..... -------------- -------------- --------------
Net change in contract
owners' equity resulting 4,152,086 3,795,445 1,248,677
from operations........ -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from 2,348,756 2,250,811 2,475,606
contract owners............ (457,381) (358,462) (185,923)
Surrenders................... (124,773) (997) (967)
Death benefits (note 4)......
Policy loans (net of repayments) (466,674) (366,612) (422,352)
(note 5)...................
Deductions for surrender charges (61,147) (91,718) (41,427)
(note 2d)..................
Redemptions to pay cost of
insurance charges and
administration charges (1,008,505) (1,032,173) (1,065,013)
(notes 2b and 2c).......... -------------- -------------- --------------
230,276 400,849 759,924
Net equity transactions.. -------------- -------------- --------------
NET CHANGE IN CONTRACT 4,382,362 4,196,294 2,008,601
OWNERS' EQUITY...............
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 29,309,606 22,702,681 17,904,393
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................ $ 33,691,968 26,898,975 19,912,994
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
ACVPADV
---------------------------------------------
<S> <C> <C> <C>
1998 1997 1996
------------- ------------- -------------
INVESTMENT ACTIVITY:
Reinvested dividends ........ 19,124 12,738 12,184
Mortality and expense charges
(note 3)................... (1,533) (1,644) (1,425)
-------------- ------------- --------------
17,591 11,094 10,759
Net investment income...... -------------- ------------- --------------
Proceeds from mutual fund 37,353 36,548 78,492
shares sold................ (31,439) (34,005) (70,667)
Cost of mutual funds sold.... -------------- ------------- --------------
Realized gain (loss) on 5,914 2,543 7,825
investments..............
Change in unrealized gain (loss) (8,437) (6,422) (26,539)
on investments............. -------------- ------------- --------------
(2,523) (3,879) (18,714)
Net gain (loss) on investments -------------- ------------- --------------
71,956 44,788 34,817
Reinvested capital gains..... -------------- ------------- --------------
Net change in contract
owners' equity resulting 87,024 52,003 26,862
from operations........ -------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from 15,337 23,600 511
contract owners............ (9,961) (7,717) (2,911)
Surrenders................... (10,264) - -
Death benefits (note 4)......
Policy loans (net of repayments) (5,222) (18,660) (32,805)
(note 5)...................
Deductions for surrender charges (1,331) (1,971) (648)
(note 2d)..................
Redemptions to pay cost of
insurance charges and
administration charges (3,196) (6,482) (6,964)
(notes 2b and 2c).......... -------------- ------------- --------------
(14,637) (11,230) (42,817)
Net equity transactions.. -------------- ------------- --------------
NET CHANGE IN CONTRACT 72,387 40,773 (15,955)
OWNERS' EQUITY...............
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 856,191 810,992 769,117
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................ 928,578 851,765 753,162
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
ACVPBAL
---------------------------------------------
<S> <C> <C> <C>
1998 1997 1996
------------- ------------- -------------
INVESTMENT ACTIVITY:
Reinvested dividends ........ 374 170 92
Mortality and expense charges
(note 3)................... (10) (10) (2)
-------------- -------------- --------------
364 160 90
Net investment income...... -------------- -------------- --------------
Proceeds from mutual fund 4,926 224 33
shares sold................ (4,313) (212) (33)
Cost of mutual funds sold.... -------------- -------------- --------------
Realized gain (loss) on 613 12 -
investments..............
Change in unrealized gain (loss) (581) 503 75
on investments............. -------------- -------------- --------------
32 515 75
Net gain (loss) on investments -------------- -------------- --------------
2,314 745 207
Reinvested capital gains..... -------------- -------------- --------------
Net change in contract
owners' equity resulting 2,710 1,420 372
from operations........ -------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from (101) 4,387 619
contract owners............ (3,894) (111) -
Surrenders................... - - -
Death benefits (note 4)......
Policy loans (net of repayments) - - -
(note 5)...................
Deductions for surrender charges (521) (28) -
(note 2d)..................
Redemptions to pay cost of
insurance charges and
administration charges - - -
(notes 2b and 2c).......... -------------- -------------- --------------
(4,516) 4,248 619
Net equity transactions.. -------------- -------------- --------------
NET CHANGE IN CONTRACT (1,806) 5,668 991
OWNERS' EQUITY...............
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD 20,052 12,871 6,893
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................ 18,246 18,539 7,884
============== ============== ==============
</TABLE>
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPCAPAP
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ - - -
Mortality and expense charges
(note 3)................... (129) (120) (108)
-------------- -------------- --------------
Net investment income...... (129) (120) (108)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................ 15,860 4,272 3,632
Cost of mutual funds sold.... (18,875) (5,022) (3,909)
-------------- -------------- --------------
Realized gain (loss) on
investments.............. (3,015) (750) (277)
Change in unrealized gain (loss)
on investments............. 532 (1,453) (4,669)
-------------- -------------- --------------
Net gain (loss) on investments (2,483) (2,203) (4,946)
-------------- -------------- --------------
Reinvested capital gains..... 3,128 1,358 5,393
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........ 516 (965) 339
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............ (3,621) 17,566 24,563
Surrenders................... (8,876) (16) (506)
Death benefits (note 4)...... - - -
Policy loans (net of repayments)
(note 5)................... 5,439 (184) (1,470)
Deductions for surrender charges
(note 2d).................. (1,187) (4) (113)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (1,311) (1,674) (1,663)
-------------- -------------- --------------
Net equity transactions.. (9,556) 15,688 20,811
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY............... (9,040) 14,723 21,150
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD
68,695 53,753 40,066
CONTRACT OWNERS' EQUITY -------------- -------------- --------------
END OF PERIOD................ $
59,655 68,476 61,216
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
ACVPINT
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ 162 233 335
Mortality and expense charges
(note 3)................... (33) (26) (10)
-------------- ------------- --------------
Net investment income...... 129 207 325
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................ 2,770 6,017 349
Cost of mutual funds sold.... (2,158) (5,239) (328)
-------------- ------------- --------------
Realized gain (loss) on
investments.............. 612 778 21
Change in unrealized gain (loss)
on investments............. 4,104 2,848 269
-------------- ------------- --------------
Net gain (loss) on investments 4,716 3,626 290
-------------- ------------- --------------
Reinvested capital gains..... 1,666 451 112
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........ 6,511 4,284 727
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............ 1,005 (942) 19,589
Surrenders................... (1,778) - -
Death benefits (note 4)...... - - -
Policy loans (net of repayments)
(note 5)................... 175 - -
Deductions for surrender charges
(note 2d).................. (238) - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... (607) (572) (361)
-------------- -------------- -------------
Net equity transactions.. (1,443) (1,514) 19,228
-------------- -------------- -------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY............... 5,068 2,770 19,955
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD
27,751 24,852 325
CONTRACT OWNERS' EQUITY -------------- -------------- -------------
END OF PERIOD................ $
32,819 27,622 20,280
============== ============== =============
</TABLE>
<TABLE>
<CAPTION>
ACVPVALUE
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........ - - -
Mortality and expense charges
(note 3)................... (1) - -
-------------- -------------- --------------
Net investment income...... (1) - -
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................ - - -
Cost of mutual funds sold.... - - -
-------------- -------------- --------------
Realized gain (loss) on
investments.............. - - -
Change in unrealized gain (loss)
on investments............. (377) - -
-------------- -------------- --------------
Net gain (loss) on investments (377) - -
-------------- -------------- --------------
Reinvested capital gains..... 5 - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........ (373) - -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............ 6,329 - -
Surrenders................... - - -
Death benefits (note 4)...... - - -
Policy loans (net of repayments)
(note 5)................... - - -
Deductions for surrender charges
(note 2d).................. - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c).......... - - -
-------------- -------------- --------------
Net equity transactions.. 6,329 - -
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY............... 5,956 - -
CONTRACT OWNERS' EQUITY BEGINNING OF PERIOD
- - -
CONTRACT OWNERS' EQUITY -------------- -------------- --------------
END OF PERIOD................ $
5,956 - -
============== ============== ==============
</TABLE>
7
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
DRYSRGRO
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............ $ - - -
Mortality and expense charges
(note 3)...................... (79) (33) (12)
-------------- -------------- --------------
Net investment income......... (79) (33) (12)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 8,521 - 3,060
Cost of mutual funds sold....... (5,506) - (2,749)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 3,015 - 311
Change in unrealized gain (loss)
on investments................ 5,224 5,671 1,533
-------------- -------------- --------------
Net gain (loss) on investments 8,239 5,671 1,844
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 8,160 5,638 1,832
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 14,002 7,270 1,993
Surrenders...................... (10,248) (27) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... 7,203 - (49)
Deductions for surrender charges
(note 2d)..................... (1,371) (7) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - (487) (289)
-------------- -------------- --------------
Net equity transactions..... 9,586 6,749 1,655
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 17,746 12,387 3,487
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 42,855 30,638 20,335
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 60,601 43,025 23,822
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
DRYSTKIX
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............ 2,456 2,254 1,381
Mortality and expense charges
(note 3)...................... (1,100) (730) (267)
-------------- ------------- --------------
Net investment income......... 1,356 1,524 1,114
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 27,750 4,881 1,939
Cost of mutual funds sold....... (15,913) (3,519) (1,694)
-------------- ------------- --------------
Realized gain (loss) on
investments................. 11,837 1,362 245
Change in unrealized gain (loss)
on investments................ 43,067 44,930 9,968
-------------- ------------- --------------
Net gain (loss) on investments 54,904 46,292 10,213
-------------- ------------- --------------
Reinvested capital gains........ 589 - -
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 56,849 47,816 11,327
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 39,514 73,557 33,414
Surrenders...................... (163) (423) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (29,943) (121) (604)
Deductions for surrender charges
(note 2d)..................... (22) (108) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1,115) (541) (54)
-------------- ------------- --------------
Net equity transactions..... 8,271 72,364 32,756
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 65,120 120,180 44,083
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 330,407 197,570 103,674
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 395,527 317,750 147,757
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
DRYCAPAP
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............ 1 - -
Mortality and expense charges
(note 3)...................... (5) - -
-------------- -------------- --------------
Net investment income......... (4) - -
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 8,403 - -
Cost of mutual funds sold....... (7,587) - -
-------------- -------------- --------------
Realized gain (loss) on
investments................. 816 - -
Change in unrealized gain (loss)
on investments................ 1,181 - -
-------------- -------------- --------------
Net gain (loss) on investments 1,997 - -
-------------- -------------- --------------
Reinvested capital gains........ 3 - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 1,996 - -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... (3,197) - -
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (213) - -
-------------- -------------- --------------
Net equity transactions..... (3,410) - -
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (1,414) - -
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 10,431 - -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 9,017 - -
============== ============== ==============
</TABLE>
8
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
DRYGRINC
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 22 10 -
Mortality and expense charges
(note 3)...................... (2) - -
-------------- -------------- --------------
Net investment income......... 20 10 -
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 571 523 -
Cost of mutual funds sold....... (588) (540) -
-------------- -------------- --------------
Realized gain (loss) on
investments................. (17) (17) -
Change in unrealized gain (loss)
on investments................ (83) 37 -
-------------- -------------- --------------
Net gain (loss) on investments (100) 20 -
-------------- -------------- --------------
Reinvested capital gains........ 67 14 -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... (13) 44 -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 5,791 999 -
Surrenders...................... (484) - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... (65) - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- -------------- --------------
Net equity transactions..... 5,242 999 -
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 5,229 1,043 -
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 841 - -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 6,070 1,043 -
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPEI
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 6,967 6,340 121
Mortality and expense charges
(note 3)...................... (1,694) (1,172) (340)
-------------- ------------- --------------
Net investment income......... 5,273 5,168 (219)
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 5,728 5,104 7,071
Cost of mutual funds sold....... (4,303) (4,437) (6,438)
-------------- ------------- --------------
Realized gain (loss) on
investments................. 1,425 667 633
Change in unrealized gain (loss)
on investments................ 19,474 21,176 794
-------------- ------------- --------------
Net gain (loss) on investments 20,899 21,843 1,427
-------------- ------------- --------------
Reinvested capital gains........ 24,794 31,876 3,459
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 50,966 58,887 4,667
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 40,894 172,915 104,726
Surrenders...................... (441) - (64)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (1,029) (721) (3,847)
Deductions for surrender charges
(note 2d)..................... (59) - (14)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (7,920) (11,456) (3,163)
-------------- ------------- --------------
Net equity transactions..... 31,445 160,738 97,638
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 82,411 219,625 102,305
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 495,985 239,464 74,267
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 578,396 459,089 176,572
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPGR
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 2,130 2,197 421
Mortality and expense charges
(note 3)...................... (1,624) (1,316) (690)
-------------- -------------- --------------
Net investment income......... 506 881 (269)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 16,094 10,190 14,650
Cost of mutual funds sold....... (13,027) (9,545) (15,231)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 3,067 645 (581)
Change in unrealized gain (loss)
on investments................ 19,351 33,855 9,278
-------------- -------------- --------------
Net gain (loss) on investments 22,418 34,500 8,697
-------------- -------------- --------------
Reinvested capital gains........ 55,712 9,833 10,639
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 78,636 45,214 19,067
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 31,824 42,147 83,017
Surrenders...................... (9,551) (285) (60)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... 2,133 (259) (3,900)
Deductions for surrender charges
(note 2d)..................... (1,278) (73) (13)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (4,848) (4,666) (3,755)
-------------- -------------- --------------
Net equity transactions..... 18,280 36,864 75,289
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 96,916 82,078 94,356
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 416,421 311,789 143,542
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 513,337 393,867 237,898
============== ============== ==============
</TABLE>
9
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPHI
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 4,477 2,716 1,018
Mortality and expense charges
(note 3)...................... (82) (74) (28)
-------------- -------------- --------------
Net investment income......... 4,395 2,642 990
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 10,434 3,987 9,026
Cost of mutual funds sold....... (9,462) (3,950) (9,029)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 972 37 (3)
Change in unrealized gain (loss)
on investments................ (5,310) 54 (41)
-------------- -------------- --------------
Net gain (loss) on investments (4,338) 91 (44)
-------------- -------------- --------------
Reinvested capital gains........ 2,845 336 199
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 2,902 3,069 1,145
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 168 6,922 10,912
Surrenders...................... (391) (128) (124)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (433) (2,742) (49)
Deductions for surrender charges
(note 2d)..................... (52) (52) (28)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1,783) (1,698) (957)
-------------- -------------- --------------
Net equity transactions..... (2,491) 2,302 9,754
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 411 5,371 10,899
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 58,539 37,907 13,325
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 58,950 43,278 24,224
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPOV
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 335 360 104
Mortality and expense charges
(note 3)...................... (16) (33) (15)
-------------- ------------- --------------
Net investment income......... 319 327 89
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 757 6,022 555
Cost of mutual funds sold....... (634) (5,462) (534)
-------------- ------------- --------------
Realized gain (loss) on
investments................. 123 560 21
Change in unrealized gain (loss)
on investments................ 1,298 586 672
-------------- ------------- --------------
Net gain (loss) on investments 1,421 1,146 693
-------------- ------------- --------------
Reinvested capital gains........ 987 1,428 114
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 2,727 2,901 896
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 1,417 (749) 6,088
Surrenders...................... - (79) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (832) (2,300) (193)
Deductions for surrender charges
(note 2d)..................... - (20) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (324) (585) (508)
-------------- ------------- --------------
Net equity transactions..... 261 (3,733) 5,387
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 2,988 (832) 6,283
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 17,383 19,938 8,787
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 20,371 19,106 15,070
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPAM
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 4,043 3,614 2,404
Mortality and expense charges
(note 3)...................... (188) (196) (78)
-------------- -------------- --------------
Net investment income......... 3,855 3,418 2,326
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 19,485 7,398 200
Cost of mutual funds sold....... (17,426) (7,119) (195)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 2,059 279 5
Change in unrealized gain (loss)
on investments................ (6,904) 445 (494)
-------------- -------------- --------------
Net gain (loss) on investments (4,845) 724 (489)
-------------- -------------- --------------
Reinvested capital gains........ 12,128 9,065 1,983
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 11,138 13,207 3,820
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 10,486 25,549 5,682
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (17,821) (11) -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1,771) (1,369) (1,241)
-------------- -------------- --------------
Net equity transactions..... (9,106) 24,169 4,441
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 2,032 37,376 8,261
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 121,091 102,479 64,569
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 123,123 139,855 72,830
============== ============== ==============
</TABLE>
10
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPCON
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 2,496 2,011 -
Mortality and expense charges
(note 3)...................... (1,141) (678) (128)
-------------- -------------- --------------
Net investment income......... 1,355 1,333 (128)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 18,884 1,261 2,360
Cost of mutual funds sold....... (12,347) (1,050) (2,254)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 6,537 211 106
Change in unrealized gain (loss)
on investments................ 32,349 19,908 3,896
-------------- -------------- --------------
Net gain (loss) on investments 38,886 20,119 4,002
-------------- -------------- --------------
Reinvested capital gains........ 18,366 5,315 536
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 58,607 26,767 4,410
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 5,913 152,706 36,211
Surrenders...................... (551) (112) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (3,470) (514) (1,350)
Deductions for surrender charges
(note 2d)..................... (74) (29) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (895) (1,181) (955)
-------------- -------------- --------------
Net equity transactions..... 923 150,870 33,906
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 59,530 177,637 38,316
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 352,512 117,335 35,917
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 412,042 294,972 74,233
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
FIDVIPGROP
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 9 - -
Mortality and expense charges
(note 3)...................... - - -
-------------- ------------- --------------
Net investment income......... 9 - -
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... - - -
Cost of mutual funds sold....... - - -
-------------- ------------- --------------
Realized gain (loss) on
investments................. - - -
Change in unrealized gain (loss)
on investments................ 144 - -
-------------- ------------- --------------
Net gain (loss) on investments 144 - -
-------------- ------------- --------------
Reinvested capital gains........ 33 - -
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 186 - -
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 2,985 - -
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- ------------- --------------
Net equity transactions..... 2,985 - -
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 3,171 - -
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. - - -
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 3,171 - -
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
NSATCAPAP
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 30,957 27,279 30,677
Mortality and expense charges
(note 3)...................... (28,272) (20,103) (15,206)
-------------- -------------- --------------
Net investment income......... 2,685 7,176 15,471
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 223,261 111,889 148,143
Cost of mutual funds sold....... (97,042) (67,455) (107,145)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 126,219 44,434 40,998
Change in unrealized gain (loss)
on investments................ 1,043,364 871,961 278,225
-------------- -------------- --------------
Net gain (loss) on investments 1,169,583 916,395 319,223
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 1,172,268 923,571 334,694
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 351,333 306,021 300,254
Surrenders...................... (90,711) (53,827) (37,771)
Death benefits (note 4)......... (52,012) - (967)
Policy loans (net of repayments)
(note 5)...................... (105,770) (80,566) (80,697)
Deductions for surrender charges
(note 2d)..................... (12,134) (13,770) (8,416)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (66,598) (61,700) (65,241)
-------------- -------------- --------------
Net equity transactions..... 24,108 96,158 107,162
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 1,196,376 1,019,729 441,856
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 6,211,213 4,503,820 3,390,178
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 7,407,589 5,523,549 3,832,034
============== ============== ==============
</TABLE>
11
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NSATGVTBD
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 50,984 46,051 47,591
Mortality and expense charges
(note 3)...................... (7,216) (5,948) (6,184)
-------------- -------------- --------------
Net investment income......... 43,768 40,103 41,407
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 125,501 127,942 162,744
Cost of mutual funds sold....... (117,427) (131,920) (170,804)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 8,074 (3,978) (8,060)
Change in unrealized gain (loss)
on investments................ 9,402 (1,358) (66,307)
-------------- -------------- --------------
Net gain (loss) on investments 17,476 (5,336) (74,367)
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 61,244 34,767 (32,960)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 358,741 231,470 235,462
Surrenders...................... (28,681) (23,879) (9,742)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (3,251) (19,789) (29,997)
Deductions for surrender charges
(note 2d)..................... (3,837) (6,109) (2,171)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (204,130) (234,709) (262,286)
-------------- -------------- --------------
Net equity transactions..... 118,842 (53,016) (68,734)
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 180,086 (18,249) (101,694)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 1,636,721 1,487,699 1,586,185
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 1,816,807 1,469,450 1,484,491
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
NSATMYMKT
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 8,974 9,438 9,648
Mortality and expense charges
(note 3)...................... (926) (1,046) (1,236)
-------------- ------------- --------------
Net investment income......... 8,048 8,392 8,412
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 33,331 95,007 60,852
Cost of mutual funds sold....... (33,331) (95,007) (60,852)
-------------- ------------- --------------
Realized gain (loss) on
investments................. - - -
Change in unrealized gain (loss)
on investments................ - - -
-------------- ------------- --------------
Net gain (loss) on investments - - -
-------------- ------------- --------------
Reinvested capital gains........ - - -
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 8,048 8,392 8,412
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 24,303 2,942 52,836
Surrenders...................... (2,637) (4,417) (13,634)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (292) (3,517) (326)
Deductions for surrender charges
(note 2d)..................... (353) (992) (3,038)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (46,468) (51,479) (68,350)
-------------- ------------- --------------
Net equity transactions..... (25,447) (57,463) (32,512)
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (17,399) (49,071) (24,100)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 352,121 397,333 408,091
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 334,722 348,262 383,991
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
NSATSMCO
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - 28
Mortality and expense charges
(note 3)...................... (121) (102) (4)
-------------- -------------- --------------
Net investment income......... (121) (102) 24
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 2,308 1,266 -
Cost of mutual funds sold....... (1,819) (1,301) -
-------------- -------------- --------------
Realized gain (loss) on
investments................. 489 (35) -
Change in unrealized gain (loss)
on investments................ 3,342 4,947 876
-------------- -------------- --------------
Net gain (loss) on investments 3,831 4,912 876
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 3,710 4,810 900
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 6,644 15,357 18,519
Surrenders...................... (896) (26) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (992) (2,185) -
Deductions for surrender charges
(note 2d)..................... (120) (7) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (3) - (71)
-------------- -------------- --------------
Net equity transactions..... 4,633 13,139 18,448
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 8,343 17,949 19,348
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 60,766 40,021 2,433
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 69,109 57,970 21,781
============== ============== ==============
</TABLE>
12
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NSATTOTRE
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 97,584 118,776 110,581
Mortality and expense charges
(note 3)...................... (74,849) (55,922) (44,218)
-------------- -------------- --------------
Net investment income......... 22,735 62,854 66,363
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 489,854 617,922 262,231
Cost of mutual funds sold....... (274,457) (453,644) (221,697)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 215,397 164,278 40,534
Change in unrealized gain (loss)
on investments................ 2,113,031 2,162,182 711,985
-------------- -------------- --------------
Net gain (loss) on investments 2,328,428 2,326,460 752,519
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 2,351,163 2,389,314 818,882
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 1,324,807 995,334 1,340,166
Surrenders...................... (243,041) (247,702) (101,652)
Death benefits (note 4)......... (62,497) (997) -
Policy loans (net of repayments)
(note 5)...................... (274,872) (199,241) (243,699)
Deductions for surrender charges
(note 2d)..................... (32,511) (63,365) (22,650)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (640,496) (622,558) (618,113)
-------------- -------------- --------------
Net equity transactions..... 71,390 (138,529) 354,052
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 2,422,553 2,250,785 1,172,934
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 16,284,321 12,760,855 9,919,676
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 18,706,874 15,011,640 11,092,610
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
NBAMTBAL
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 33,067 22,402 26,709
Mortality and expense charges
(note 3)...................... (5,933) (5,140) (4,713)
-------------- ------------- --------------
Net investment income......... 27,134 17,262 21,996
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 97,691 73,853 52,046
Cost of mutual funds sold....... (95,100) (70,579) (44,378)
-------------- ------------- --------------
Realized gain (loss) on
investments................. 2,591 3,274 7,668
Change in unrealized gain (loss)
on investments................ (120,363) 51,808 (147,698)
-------------- ------------- --------------
Net gain (loss) on investments (117,772) 55,082 (140,030)
-------------- ------------- --------------
Reinvested capital gains........ 232,254 57,499 148,526
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 141,616 129,843 30,492
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 49,593 59,918 90,282
Surrenders...................... (19,285) (11,429) (18,636)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (24,903) (29,562) (14,951)
Deductions for surrender charges
(note 2d)..................... (2,580) (2,924) (4,152)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (22,072) (26,688) (28,778)
-------------- ------------- --------------
Net equity transactions..... (19,247) (10,685) 23,765
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 122,369 119,158 54,257
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 1,389,720 1,204,996 1,151,554
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 1,512,089 1,324,154 1,205,811
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
NBAMTGRO
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - 19
Mortality and expense charges
(note 3)...................... (96) (140) (104)
-------------- -------------- --------------
Net investment income......... (96) (140) (85)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 6,551 14,209 2,423
Cost of mutual funds sold....... (5,652) (13,693) (2,496)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 899 516 (73)
Change in unrealized gain (loss)
on investments................ (7,101) 4,446 (2,067)
-------------- -------------- --------------
Net gain (loss) on investments (6,202) 4,962 (2,140)
-------------- -------------- --------------
Reinvested capital gains........ 15,182 4,858 4,370
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 8,884 9,680 2,145
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 6,436 (430) 18,377
Surrenders...................... (9,307) (112) (62)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... 6,583 (211) (1,199)
Deductions for surrender charges
(note 2d)..................... (1,245) (29) (14)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1,891) (1,790) (1,396)
-------------- -------------- --------------
Net equity transactions..... 576 (2,572) 15,706
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 9,460 7,108 17,851
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 57,881 60,625 36,794
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 67,341 67,733 54,645
============== ============== ==============
</TABLE>
13
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTLMAT
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 645 516 663
Mortality and expense charges
(note 3)...................... (5) (9) (7)
-------------- -------------- --------------
Net investment income......... 640 507 656
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 397 2,951 50
Cost of mutual funds sold....... (415) (2,952) (53)
-------------- -------------- --------------
Realized gain (loss) on
investments................. (18) (1) (3)
Change in unrealized gain (loss)
on investments................ (372) (224) (632)
-------------- -------------- --------------
Net gain (loss) on investments (390) (225) (635)
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 250 282 21
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 558 (1,792) 1,476
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... 3 - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- -------------- --------------
Net equity transactions..... 561 (1,792) 1,476
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 811 (1,510) 1,497
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 10,016 11,099 7,387
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 10,827 9,589 8,884
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
NBAMTPART
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 542 209 56
Mortality and expense charges
(note 3)...................... (345) (138) (24)
-------------- ------------- --------------
Net investment income......... 197 71 32
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 21,721 1,982 545
Cost of mutual funds sold....... (13,410) (1,452) (510)
-------------- ------------- --------------
Realized gain (loss) on
investments................. 8,311 530 35
Change in unrealized gain (loss)
on investments................ (17,571) 7,943 1,436
-------------- ------------- --------------
Net gain (loss) on investments (9,260) 8,473 1,471
-------------- ------------- --------------
Reinvested capital gains........ 17,062 3,214 700
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 7,999 11,758 2,203
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 44,811 30,917 3,863
Surrenders...................... (8,728) (28) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (12,815) (1,227) (436)
Deductions for surrender charges
(note 2d)..................... (1,168) (7) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1,343) (853) (28)
-------------- ------------- --------------
Net equity transactions..... 20,757 28,802 3,399
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 28,756 40,560 5,602
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 133,951 54,539 18,049
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 162,707 95,099 23,651
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
OPPBDFD
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 70 160 174
Mortality and expense charges
(note 3)...................... (1) (6) (6)
-------------- -------------- --------------
Net investment income......... 69 154 168
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 433 3,370 11,881
Cost of mutual funds sold....... (423) (3,323) (11,965)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 10 47 (84)
Change in unrealized gain (loss)
on investments................ 15 (90) (198)
-------------- -------------- --------------
Net gain (loss) on investments 25 (43) (282)
-------------- -------------- --------------
Reinvested capital gains........ 63 17 5
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 157 128 (109)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 14 (2,617) (4,563)
Surrenders...................... - (73) (30)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (275) (8) (187)
Deductions for surrender charges
(note 2d)..................... - (19) (7)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - (315) (95)
-------------- -------------- --------------
Net equity transactions..... (261) (3,032) (4,882)
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (104) (2,904) (4,991)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 4,084 7,961 7,309
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 3,980 5,057 2,318
============== ============== ==============
</TABLE>
14
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
OPPGLSEC
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... $ 1,229 476 -
Mortality and expense charges
(note 3)...................... (65) (55) (13)
-------------- -------------- --------------
Net investment income......... 1,164 421 (13)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 450 486 68
Cost of mutual funds sold....... (319) (403) (66)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 131 83 2
Change in unrealized gain (loss)
on investments................ 1,009 4,986 784
-------------- -------------- --------------
Net gain (loss) on investments 1,140 5,069 786
-------------- -------------- --------------
Reinvested capital gains........ 4,626 - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 6,930 5,490 773
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 4,055 19,639 13,165
Surrenders...................... - (38) (29)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - (10) (7)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (775) (540) (82)
-------------- -------------- --------------
Net equity transactions..... 3,280 19,051 13,047
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 10,210 24,541 13,820
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 56,530 22,931 6,406
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... $ 66,740 47,472 20,226
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
OPPGRO
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 23 - -
Mortality and expense charges
(note 3)...................... (1) - -
-------------- ------------- --------------
Net investment income......... 22 - -
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... - - -
Cost of mutual funds sold....... - - -
-------------- ------------- --------------
Realized gain (loss) on
investments................. - - -
Change in unrealized gain (loss)
on investments................ 238 - -
-------------- ------------- --------------
Net gain (loss) on investments 238 - -
-------------- ------------- --------------
Reinvested capital gains........ 280 - -
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 540 - -
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 3,479 - -
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- ------------- --------------
Net equity transactions..... 3,479 - -
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 4,019 - -
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 502 - -
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 4,521 - -
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
OPPMULT
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 74 89 73
Mortality and expense charges
(note 3)...................... (1) (1) -
-------------- -------------- --------------
Net investment income......... 73 88 73
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... - 32 -
Cost of mutual funds sold....... - (30) -
-------------- -------------- --------------
Realized gain (loss) on
investments................. - 2 -
Change in unrealized gain (loss)
on investments................ 49 156 9
-------------- -------------- --------------
Net gain (loss) on investments 49 158 9
-------------- -------------- --------------
Reinvested capital gains........ 431 159 52
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 553 405 134
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 237 1,026 836
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- -------------- --------------
Net equity transactions..... 237 1,026 836
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 790 1,431 970
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 7,722 4,224 2,061
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 8,512 5,655 3,031
============== ============== ==============
</TABLE>
15
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
STOPP2
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 44 224 194
Mortality and expense charges
(note 3)...................... (301) (186) (98)
-------------- -------------- --------------
Net investment income......... (257) 38 96
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 8,255 2,322 8,240
Cost of mutual funds sold....... (5,887) (2,091) (7,498)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 2,368 231 742
Change in unrealized gain (loss)
on investments................ (2,239) 400 225
-------------- -------------- --------------
Net gain (loss) on investments 129 631 967
-------------- -------------- --------------
Reinvested capital gains........ 16,130 7,197 1,657
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 16,002 7,866 2,720
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 15,531 21,749 7,600
Surrenders...................... (3,409) (937) (635)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (4,423) (1,521) (423)
Deductions for surrender charges
(note 2d)..................... (456) (240) (141)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (526) (245) (251)
-------------- -------------- --------------
Net equity transactions..... 6,717 18,806 6,150
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 22,719 26,672 8,870
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 115,087 59,160 34,811
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 137,806 85,832 43,681
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
STDISC2
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - 776
Mortality and expense charges
(note 3)...................... (37) (30) (14)
-------------- ------------- --------------
Net investment income......... (37) (30) 762
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 11,620 2,819 2,766
Cost of mutual funds sold....... (10,017) (3,367) (2,958)
-------------- ------------- --------------
Realized gain (loss) on
investments................. 1,603 (548) (192)
Change in unrealized gain (loss)
on investments................ 259 1,524 (2,069)
-------------- ------------- --------------
Net gain (loss) on investments 1,862 976 (2,261)
-------------- ------------- --------------
Reinvested capital gains........ 367 - 1,184
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 2,192 946 (315)
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... (4,079) 6,752 3,165
Surrenders...................... (1,612) (96) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (239) (195) (1,567)
Deductions for surrender charges
(note 2d)..................... (216) (25) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (39) (226) -
-------------- ------------- --------------
Net equity transactions..... (6,185) 6,210 1,598
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (3,993) 7,156 1,283
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 32,100 15,722 9,612
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 28,107 22,878 10,895
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
STINTSTK2
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 148 238 16
Mortality and expense charges
(note 3)...................... (8) (13) (2)
-------------- -------------- --------------
Net investment income......... 140 225 14
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 166 453 219
Cost of mutual funds sold....... (187) (448) (214)
-------------- -------------- --------------
Realized gain (loss) on
investments................. (21) 5 5
Change in unrealized gain (loss)
on investments................ 688 596 112
-------------- -------------- --------------
Net gain (loss) on investments 667 601 117
-------------- -------------- --------------
Reinvested capital gains........ - 356 -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 807 1,182 131
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 1,329 1,482 7,353
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (180) (176) -
-------------- -------------- --------------
Net equity transactions..... 1,149 1,306 7,353
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 1,956 2,488 7,484
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 11,856 13,282 -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 13,812 15,770 7,484
============== ============== ==============
</TABLE>
16
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
VEWRLDBD
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 15 55 19
Mortality and expense charges
(note 3)...................... - - -
-------------- -------------- --------------
Net investment income......... 15 55 19
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 124 84 33
Cost of mutual funds sold....... (124) (89) (34)
-------------- -------------- --------------
Realized gain (loss) on
investments................. - (5) (1)
Change in unrealized gain (loss)
on investments................ 39 (66) (29)
-------------- -------------- --------------
Net gain (loss) on investments 39 (71) (30)
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 54 (16) (11)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... (21) (98) 153
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- -------------- --------------
Net equity transactions..... (21) (98) 153
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 33 (114) 142
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 1,602 1,698 517
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 1,635 1,584 659
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
VEWRLDEMKT
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 48 1 -
Mortality and expense charges
(note 3)...................... - - -
-------------- ------------- --------------
Net investment income......... 48 1 -
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 2,898 511 -
Cost of mutual funds sold....... (4,179) (522) -
-------------- ------------- --------------
Realized gain (loss) on
investments................. (1,281) (11) -
Change in unrealized gain (loss)
on investments................ (422) 1,177 -
-------------- ------------- --------------
Net gain (loss) on investments (1,703) 1,166 -
-------------- ------------- --------------
Reinvested capital gains........ 43 - -
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... (1,612) 1,167 -
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... (2,573) 11,378 -
Surrenders...................... (278) - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- ------------- --------------
Net equity transactions..... (2,851) 11,378 -
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (4,463) 12,545 -
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 8,768 - -
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 4,305 12,545 -
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
VEWRLDHAS
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 51 360 291
Mortality and expense charges
(note 3)...................... (6) (14) (15)
-------------- -------------- --------------
Net investment income......... 45 346 278
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 8,582 5,491 5,123
Cost of mutual funds sold....... (9,427) (6,150) (4,404)
-------------- -------------- --------------
Realized gain (loss) on
investments................. (845) (859) 709
Change in unrealized gain (loss)
on investments................ (1,829) (258) (1,660)
-------------- -------------- --------------
Net gain (loss) on investments (2,674) (917) (941)
-------------- -------------- --------------
Reinvested capital gains........ 1,261 487 205
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... (1,368) (84) (380)
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... (6,404) 4,893 25,252
Surrenders...................... (229) - (67)
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (1,486) (4,988) -
Deductions for surrender charges
(note 2d)..................... (31) (138) (15)
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - (274)
-------------- -------------- --------------
Net equity transactions..... (8,150) (233) 24,896
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (9,518) (317) 24,516
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 16,122 19,418 6,089
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 6,604 19,101 30,605
============== ============== ==============
</TABLE>
17
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
VKMSRESEC
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... 38 27 1
Mortality and expense charges
(note 3)...................... (32) (22) -
-------------- -------------- --------------
Net investment income......... 6 5 1
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 2,639 1,320 -
Cost of mutual funds sold....... (2,554) (957) -
-------------- -------------- --------------
Realized gain (loss) on
investments................. 85 363 -
Change in unrealized gain (loss)
on investments................ (1,972) 620 58
-------------- -------------- --------------
Net gain (loss) on investments (1,887) 983 58
-------------- -------------- --------------
Reinvested capital gains........ 378 55 -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... (1,503) 1,043 59
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 13,719 14,611 475
Surrenders...................... (2,229) (26) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (89) (1,173) -
Deductions for surrender charges
(note 2d)..................... (298) (7) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - (10) -
-------------- -------------- --------------
Net equity transactions..... 11,103 13,395 475
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 9,600 14,438 534
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 20,959 4,604 410
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 30,559 19,042 944
============== ============== ==============
</TABLE>
<TABLE>
<CAPTION>
WPINTEQ
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - -
Mortality and expense charges
(note 3)...................... (34) (32) (13)
-------------- ------------- --------------
Net investment income......... (34) (32) (13)
-------------- ------------- --------------
Proceeds from mutual fund
shares sold................... 1,443 2,248 1,206
Cost of mutual funds sold....... (1,592) (2,132) (1,144)
-------------- ------------- --------------
Realized gain (loss) on
investments................. (149) 116 62
Change in unrealized gain (loss)
on investments................ 3,253 3,022 666
-------------- ------------- --------------
Net gain (loss) on investments 3,104 3,138 728
-------------- ------------- --------------
Reinvested capital gains........ - - -
-------------- ------------- --------------
Net change in contract
owners' equity resulting
from operations........... 3,070 3,106 715
-------------- ------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 1,799 4,050 18,365
Surrenders...................... - (1,323) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - (102) (977)
Deductions for surrender charges
(note 2d)..................... - (338) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- ------------- --------------
Net equity transactions..... 1,799 2,287 17,388
-------------- ------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 4,869 5,393 18,103
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. 24,083 19,473 2,544
-------------- ------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 28,952 24,866 20,647
============== ============= ==============
</TABLE>
<TABLE>
<CAPTION>
WPPVENCAP
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - -
Mortality and expense charges
(note 3)...................... - - -
-------------- -------------- --------------
Net investment income......... - - -
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... - - -
Cost of mutual funds sold....... - - -
-------------- -------------- --------------
Realized gain (loss) on
investments................. - - -
Change in unrealized gain (loss)
on investments................ 156 - -
-------------- -------------- --------------
Net gain (loss) on investments 156 - -
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 156 - -
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... 875 - -
Surrenders...................... - - -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... - - -
Deductions for surrender charges
(note 2d)..................... - - -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. - - -
-------------- -------------- --------------
Net equity transactions..... 875 - -
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. 1,031 - -
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD............. - - -
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 1,031 - -
============== ============== ==============
</TABLE>
18
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1998, 1997 AND 1996
(UNAUDITED)
<TABLE>
<CAPTION>
WPSMCOGR
-----------------------------------------
1998 1997 1996
------------- ------------- -------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ........... - - -
Mortality and expense charges
(note 3)...................... (79) (101) (61)
-------------- -------------- --------------
Net investment income......... (79) (101) (61)
-------------- -------------- --------------
Proceeds from mutual fund
shares sold................... 16,915 11,072 17,938
Cost of mutual funds sold....... (12,161) (8,717) (14,848)
-------------- -------------- --------------
Realized gain (loss) on
investments................. 4,754 2,355 3,090
Change in unrealized gain (loss)
on investments................ (2,291) (744) 1,678
-------------- -------------- --------------
Net gain (loss) on investments 2,463 1,611 4,768
-------------- -------------- --------------
Reinvested capital gains........ - - -
-------------- -------------- --------------
Net change in contract
owners' equity resulting
from operations........... 2,384 1,510 4,707
-------------- -------------- --------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners............... (15,177) 2,282 15,245
Surrenders...................... - (5,651) -
Death benefits (note 4)......... - - -
Policy loans (net of repayments)
(note 5)...................... (53) 3,185 (3,626)
Deductions for surrender charges
(note 2d)..................... - (1,446) -
Redemptions to pay cost of
insurance charges and
administration charges
(notes 2b and 2c)............. (1) (173) (138)
-------------- -------------- --------------
Net equity transactions..... (15,231) (1,803) 11,481
-------------- -------------- --------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY.................. (12,847) (293) 16,188
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD.......... 54,327 53,633 33,470
-------------- -------------- --------------
CONTRACT OWNERS' EQUITY
END OF PERIOD................... 41,480 53,340 49,658
============== ============== ==============
</TABLE>
See accompanying notes to financial statements.
19
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1998, 1997 AND 1996
(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 American Century VP - American Century VP
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 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 funds:
Portfolios of the American Century Variable Portfolios, Inc. (American
Century VP) (formerly TCI Portfolios, Inc.);
American Century VP - American Century VP Advantage (ACVPAdv)
(formerly TCI Portfolios - TCI Advantage)
American Century VP - American Century VP Balanced (ACVPBal)
(formerly TCI Portfolios - TCI Balanced)
American Century VP - American Century VP Capital Appreciation
(ACVPCapAp) (formerly TCI Portfolios - TCI Growth)
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International (ACVPInt)
(formerly TCI Portfolios - TCI International)
American Century VP - American Century VP Value (ACVPValue)
(formerly TCI Portfolios - TCI Value)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund
(Fidelity VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
20
<PAGE> 20
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 - Money Market Fund (NSATMyMkt)
Nationwide SAT - Small Cap Value Fund (NSATSmCapV)
Nationwide SAT - Small Company Fund (NSATSmCo)
Nationwide SAT - Total Return Fund (NSATTotRe)
Portfolios of the Neuberger & Berman Advisers Management Trust
(Neuberger & Berman AMT);
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
Funds of the Oppenheimer Variable Account Funds (Oppenheimer VAF);
Oppenheimer VAF - Bond Fund (OppBdFd)
Oppenheimer VAF - Global Securities Fund (OppGlSec)
Oppenheimer VAF - Growth Fund (OppGro)
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
Strong Opportunity Fund II, Inc. (StOpp2) (formerly Strong Special
Fund II, Inc.)
Funds of the Strong Variable Insurance Funds, Inc. (Strong VIF);
Strong VIF - Strong Discovery Fund II (StDisc2)
Strong VIF - Strong International Stock Fund II (StIntStk2)
Funds of the Van Eck Worldwide Insurance Trust (Van Eck WIT);
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
(formerly Van Eck WIT - Gold and Natural Resources Fund)
Portfolio of the Van Kampen American Capital Life Investment Trust
(Van Kampen American Capital LIT);
Van Kampen American Capital LIT - Morgan Stanley Real Estate
Securities Portfolio (VKMSRESec)
(formerly Van Kampen American Capital LIT - Real Estate Securities
Fund)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 1998, contract owners have invested in all of the above
funds except for American Century VP - American Century VP Income &
Growth, Morgan Stanley Universal Funds - Emerging Markets Debt
Portfolio, Nationwide SAT - Small Cap Value Fund, and Neuberger &
Berman AMT - Guardian Portfolio. 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, 1998. 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.
21
<PAGE> 21
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Reclassifications
Certain 1997 and 1996 amounts have been reclassified to conform with
the current period presentation.
(2) POLICY CHARGES
(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 $12.50 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.
(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 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. On each policy anniversary beginning with the 10th, this charge
is reduced to 0.50% on an annual basis provided that the cash surrender
value of the contract is $25,000 or more on such anniversary. This charge
is assessed through the unit value calculation.
(4) DEATH BENEFITS
Death benefits result in a redemption of the contract value from the
Account and payment of the death benefit proceeds, less any outstanding
policy loans and policy charges, to the legal beneficiary. The excess of
the death benefit proceeds over the contract value on the date of death is
paid by the Company's general account.
22
<PAGE> 22
(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 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 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.
23
<PAGE> 23
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1998.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN
-------- ---------- -------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Advantage .................. 26,225 $ 17.496545 $ 458,847 10%
American Century VP -
American Century VP Advantage
Initial Funding by Depositor (note 1a) ....... 25,000 18.789246 469,731 10%
American Century VP -
American Century VP Balanced ................... 952 19.165966 18,246 14%
American Century VP -
American Century VP Capital Appreciation ....... 4,036 14.780622 59,655 0%
American Century VP -
American Century VP International .............. 1,879 17.466243 32,819 25%
American Century VP -
American Century VP Value ...................... 445 13.383185 5,956 5%
The Dreyfus Socially Responsible
Growth Fund, Inc. .............................. 2,329 26.020390 60,601 18%
Dreyfus Stock Index Fund ........................ 15,301 25.849746 395,527 17%
Dreyfus VIF - Capital Appreciation Portfolio .... 734 12.285237 9,017 20%
Dreyfus VIF - Growth and Income Portfolio ....... 497 12.213307 6,070 6%
Fidelity VIP - Equity-Income Portfolio .......... 16,414 35.237987 578,396 10%
Fidelity VIP - Growth Portfolio ................. 14,602 35.155247 513,337 19%
Fidelity VIP - High Income Portfolio ............ 2,051 28.742182 58,950 4%
Fidelity VIP - Overseas Portfolio ............... 1,040 19.587603 20,371 15%
Fidelity VIP-II - Asset Manager Portfolio ....... 5,201 23.672944 123,123 9%
Fidelity VIP-II - Contrafund Portfolio .......... 21,544 19.125611 412,042 16%
Fidelity VIP-III - Growth Opportunities Portfolio 261 12.150728 3,171 11%
Nationwide SAT - Capital Appreciation Fund ...... 253,842 29.181890 7,407,589 19%
Nationwide SAT - Government Bond Fund ........... 104,802 17.335612 1,816,807 4%
Nationwide SAT - Money Market Fund .............. 25,675 13.036881 334,722 2%
Nationwide SAT - Small Company Fund ............. 4,036 17.123187 69,109 6%
Nationwide SAT - Total Return Fund .............. 579,618 32.274487 18,706,874 14%
Neuberger & Berman AMT - Balanced Portfolio ..... 77,163 19.596034 1,512,089 10%
</TABLE>
24
<PAGE> 24
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT - Growth Portfolio ..... 2,643 25.479039 67,341 15%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio .............. 739 14.650523 10,827 2%
Neuberger & Berman AMT - Partners Portfolio ... 6,777 24.008666 162,707 6%
Oppenheimer VAF - Bond Fund ................... 225 17.689611 3,980 4%
Oppenheimer VAF - Global Securities Fund ...... 3,646 18.305105 66,740 12%
Oppenheimer VAF - Growth Fund ................. 371 12.184646 4,521 17%
Oppenheimer VAF - Multiple Strategies Fund .... 372 22.881279 8,512 7%
Strong Opportunity Fund II, Inc. .............. 4,543 30.333638 137,806 13%
Strong VIF - Strong Discovery Fund II ......... 1,436 19.573146 28,107 7%
Strong VIF - Strong International Stock Fund II 1,350 10.231122 13,812 6%
Van Eck WIT - Worldwide Bond Fund ............. 116 14.098956 1,635 3%
Van Eck WIT -
Worldwide Emerging Markets Fund .............. 633 6.800411 4,305 (23)%
Van Eck WIT - Worldwide Hard Assets Fund ...... 429 15.394993 6,604 (14)%
Van Kampen American Capital LIT -
Morgan Stanley Real Estate
Securities Portfolio ......................... 1,779 17.177811 30,559 (5)%
Warburg Pincus Trust -
International Equity Portfolio ............... 2,270 12.754223 28,952 13%
Warburg Pincus Trust -
Post Venture Capital Portfolio ............... 80 12.886267 1,031 13%
Warburg Pincus Trust -
Small Company Growth Portfolio ............... 2,460 16.861654 41,480 4%
====== ========= ------------
$ 33,691,968
============
</TABLE>
25
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<PAGE> 25
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26
<PAGE> 26
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27
<PAGE> 27
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA o COLUMBUS, OHIO 43215-2220
Bulk Rate
U.S. Postage
PAID
Columbus, Ohio
Permit No. 521
Nationwide(R) is a registered federal service mark of Nationwide Mutual
Insurance Company
