<PAGE> 1
[NATIONWIDE(R) LOGO]
NATIONWIDE(R)
VLI SEPARATE
ACCOUNT-3
SEMI-ANNUAL REPORT
TO
CONTRACT OWNERS
JUNE 30, 1999
NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: COLUMBUS, OHIO
<PAGE> 2
[NATIONWIDE(R) LOGO]
NATIONWIDE LIFE INSURANCE COMPANY
ONE NATIONWIDE PLAZA, COLUMBUS, OHIO 43215-2220
[PHOTO]
PRESIDENT'S MESSAGE
On behalf of Nationwide Life Insurance Company, we are pleased to present the
1999 semi-annual report of the Nationwide VLI Separate Account-3.
Equity investments performed well during the first half of 1999 with the major
market indices showing double-digit gains. Fixed income investments did not fare
as well during this period in the face of the Federal Reserve's inflation
cautiousness. The Fed is mindful of the resilient U.S. economy and the
increasingly tight labor pool that portends future wage inflation. Accordingly,
we have seen a ratcheting-up of short-term interest rates to dampen the momentum
of the current expansion. How aggressively the Fed may react to the perceived
inflation threat only adds uncertainty to the already jittery equity markets.
Over the long term, however, a slower but sustainable rate of growth, with low
inflation, provides a favorable environment for further advances in financial
assets.
At mid-year, we are pleased to report that all the mission-critical systems used
to service our variable annuity and variable life business have been internally
inventoried, assessed and tested as being Year 2000 compliant. We are currently
contacting our critical business partners to determine if they will be Year 2000
compliant. Contingency plans are being developed and are to be completed by the
end of the third quarter. All these steps are being taken to assure that
Nationwide Financial will be able to continue to serve your financial needs into
the Year 2000 and beyond.
Thank you for selecting Nationwide Financial to help you achieve your financial
planning and retirement savings goals. You have our commitment to provide the
consistent, high quality service you expect and deserve.
/s/ Joseph J. Gasper
Joseph J. Gasper, President
August 19, 1999
3
<PAGE> 3
- --------------------------------------------------------------------------------
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENT OF ASSETS, LIABILITIES AND CONTRACT OWNERS' EQUITY
JUNE 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
ASSETS:
<S> <C>
Investments at market value:
American Century VP - American Century VP Advantage (ACVPAdv)
72,223 shares (cost $444,270) .................................................................... $ 470,171
American Century VP - American Century VP Balanced (ACVPBal)
2,622 shares (cost $19,228) ...................................................................... 19,323
American Century VP - American Century VP Capital Appreciation (ACVPCapAp)
5,559 shares (cost $54,262) ...................................................................... 58,207
American Century VP - American Century VP Income & Growth (ACVPIncGr)
2,095 shares (cost $14,568) ...................................................................... 15,587
American Century VP - American Century VP International (ACVPInt)
3,113 shares (cost $20,671) ...................................................................... 25,468
American Century VP - American Century VP Value (ACVPValue)
1,190 shares (cost $8,259) ....................................................................... 8,083
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
3,028 shares (cost $78,063) ...................................................................... 106,116
Dreyfus Stock Index Fund (DryStkIx)
14,761 shares (cost $362,127) .................................................................... 533,034
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
6,172 shares (cost $203,011) ..................................................................... 239,612
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
372 shares (cost $8,270) ......................................................................... 9,304
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
15,545 shares (cost $344,691) .................................................................... 423,590
Fidelity VIP - Growth Portfolio (FidVIPGr)
18,222 shares (cost $629,911) .................................................................... 833,282
Fidelity VIP - High Income Portfolio (FidVIPHI)
4,350 shares (cost $53,930) ...................................................................... 49,109
Fidelity VIP - Overseas Portfolio (FidVIPOv)
1,059 shares (cost $19,836) ...................................................................... 22,030
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
5,980 shares (cost $96,518) ...................................................................... 105,782
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
23,112 shares (cost $428,845) .................................................................... 603,222
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
510 shares (cost $11,278) ........................................................................ 12,051
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
85 shares (cost $581) ............................................................................ 588
Nationwide SAT - Capital Appreciation Fund (NSATCapAp)
300,531 shares (cost $4,284,574) ................................................................. 8,919,768
Nationwide SAT - Government Bond Fund (NSATGvtBd)
165,218 shares (cost $1,843,025) ................................................................. 1,838,877
Nationwide SAT - Money Market Fund (NSATMyMkt)
77,388 shares (cost $77,389) ..................................................................... 77,388
</TABLE>
4
<PAGE> 4
<TABLE>
<S> <C>
Nationwide SAT - Small Company Fund (NSATSmCo)
1,899 shares (cost $29,148) ...................................................................... 32,726
Nationwide SAT - Total Return Fund (NSATTotRe)
1,010,413 shares (cost $12,338,385) .............................................................. 20,501,290
Neuberger & Berman AMT - Balanced Portfolio (NBAMTBal)
88,956 shares (cost $1,380,506) .................................................................. 1,421,511
Neuberger & Berman AMT - Growth Portfolio (NBAMTGro)
2,281 shares (cost $58,872) ...................................................................... 58,241
Neuberger & Berman AMT - Guardian Portfolio (NBAMTGuard)
76 shares (cost $1,118) .......................................................................... 1,233
Neuberger & Berman AMT - Limited Maturity Bond Portfolio (NBAMTLMat)
283 shares (cost $3,841) ......................................................................... 3,703
Neuberger & Berman AMT - Partners Portfolio (NBAMTPart)
7,092 shares (cost $137,733) ..................................................................... 146,946
Oppenheimer VAF - Bond Fund (OppBdFd)
993 shares (cost $11,906) ........................................................................ 11,421
Oppenheimer VAF - Global Securities Fund (OppGISec)
2,841 shares (cost $56,652) ...................................................................... 68,144
Oppenheimer VAF - Growth Fund (OppGro)
575 shares (cost $21,002) ........................................................................ 23,420
Oppenheimer VAF - Multiple Strategies Fund (OppMult)
597 shares (cost $9,287) ......................................................................... 10,107
Strong Opportunity Fund II, Inc. (StOpp2)
6,899 shares (cost $136,780) ..................................................................... 159,086
Strong VIF - Strong Discovery Fund II (StDisc2)
2,240 shares (cost $25,788) ...................................................................... 22,942
Strong VIF - Strong International Stock Fund II (StIntStk2)
801 shares (cost $8,334) ......................................................................... 7,793
Van Eck WIT - Worldwide Bond Fund (VEWrldBd)
156 shares (cost $1,665) ......................................................................... 1,677
Van Eck WIT - Worldwide Emerging Markets Fund (VEWrldEMkt)
826 shares (cost $9,011) ......................................................................... 8,587
Van Eck WIT - Worldwide Hard Assets Fund (VEWrldHAs)
498 shares (cost $7,390) ......................................................................... 5,329
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio (VKMSRESec)
1,318 shares (cost $19,635) ...................................................................... 18,300
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
2,051 shares (cost $23,786) ...................................................................... 24,103
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
86 shares (cost $917) ............................................................................ 1,139
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
1,443 shares (cost $20,934) ...................................................................... 24,652
------------
Total assets .................................................................................. 36,922,942
ACCOUNTS PAYABLE .......................................................................................... 3,315
------------
CONTRACT OWNERS' EQUITY (NOTE 7) .......................................................................... $ 36,919,627
============
</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, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
TOTAL ACVPADV
------------------------------------------ ------------------------------------------
1999 1998 1997 1999 1998 1997
------------ ------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 213,874 267,089 258,944 13,250 19,124 12,738
Mortality and expense charges
(note 3) ......................... (134,901) (125,965) (95,040) (1,795) (1,533) (1,644)
------------ ------------ ------------ ------------ ------------ ------------
Net investment activity .......... 78,973 141,124 163,904 11,455 17,591 11,094
------------ ------------ ------------ ------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 2,288,210 1,231,676 1,163,656 533,951 37,353 36,548
Cost of mutual funds sold .......... (1,640,372) (829,101) (946,332) (399,302) (31,439) (34,005)
------------ ------------ ------------ ------------ ------------ ------------
Realized gain (loss) on
investments .................... 647,838 402,575 217,324 134,649 5,914 2,543
Change in unrealized gain (loss)
on investments ................... 2,264,752 3,125,717 3,235,166 (151,523) (8,437) (6,422)
------------ ------------ ------------ ------------ ------------ ------------
Net gain (loss) on investments ... 2,912,590 3,528,292 3,452,490 (16,874) (2,523) (3,879)
------------ ------------ ------------ ------------ ------------ ------------
Reinvested capital gains ........... 217,525 482,670 179,051 31,451 71,956 44,788
------------ ------------ ------------ ------------ ------------ ------------
Net change in contract
owners' equity resulting
from operations .............. 3,209,088 4,152,086 3,795,445 26,032 87,024 52,003
------------ ------------ ------------ ------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,818,574 2,348,756 2,250,811 20,679 15,337 23,600
Transfers between funds ............ -- -- -- (14,421) -- --
Surrenders ......................... (1,431,059) (457,381) (358,462) (498,592) (9,961) (7,717)
Death benefits (note 4) ............ (17,623) (124,773) (997) -- (10,264) --
Policy loans (net of repayments)
(note 5) ......................... (422,365) (466,674) (366,612) (4,870) (5,222) (18,660)
Deductions for surrender charges
(note 2d) ........................ (62,823) (61,147) (91,718) (8) (1,331) (1,971)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,014,000) (1,008,505) (1,032,173) (17,678) (3,196) (6,482)
------------ ------------ ------------ ------------ ------------ ------------
Net equity transactions ........ (1,129,296) 230,276 400,849 (514,890) (14,637) (11,230)
------------ ------------ ------------ ------------ ------------ ------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 2,079,792 4,382,362 4,196,294 (488,858) 72,387 40,773
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 34,839,835 29,309,606 22,702,681 958,986 856,191 810,992
------------ ------------ ------------ ------------ ------------ ------------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 36,919,627 33,691,968 26,898,975 470,128 928,578 851,765
============ ============ ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
ACVPBAL
------------------------------------------
1999 1998 1997
------------ ------------ ------------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 356 374 170
Mortality and expense charges
(note 3) ......................... (72) (10) (10)
------------ ------------ ------------
Net investment activity .......... 284 364 160
------------ ------------ ------------
Proceeds from mutual fund
shares sold ...................... 361 4,926 224
Cost of mutual funds sold .......... (346) (4,313) (212)
------------ ------------ ------------
Realized gain (loss) on
investments .................... 15 613 12
Change in unrealized gain (loss)
on investments ................... (2,064) (581) 503
------------ ------------ ------------
Net gain (loss) on investments ... (2,049) 32 515
------------ ------------ ------------
Reinvested capital gains ........... 2,455 2,314 745
------------ ------------ ------------
Net change in contract
owners' equity resulting
from operations .............. 690 2,710 1,420
------------ ------------ ------------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 558 (101) 4,387
Transfers between funds ............ -- -- --
Surrenders ......................... -- (3,894) (111)
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- --
Deductions for surrender charges
(note 2d) ........................ -- (521) (28)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (383) -- --
------------ ------------ ------------
Net equity transactions ........ 175 (4,516) 4,248
------------ ------------ ------------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 865 (1,806) 5,668
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 18,451 20,052 12,871
------------ ------------ ------------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 19,316 18,246 18,539
============ ============ ============
</TABLE>
6
<PAGE> 6
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPCAPAP ACVPINCGR
------------------------------ ------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- 3 -- --
Mortality and expense charges
(note 3) ......................... (217) (129) (120) (39) -- --
-------- -------- -------- -------- -------- --------
Net investment activity .......... (217) (129) (120) (36) -- --
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 9,970 15,860 4,272 3,967 -- --
Cost of mutual funds sold .......... (11,195) (18,875) (5,022) (3,891) -- --
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... (1,225) (3,015) (750) 76 -- --
Change in unrealized gain (loss)
on investments ................... 9,756 532 (1,453) 860 -- --
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... 8,531 (2,483) (2,203) 936 -- --
-------- -------- -------- -------- -------- --------
Reinvested capital gains ........... -- 3,128 1,358 -- -- --
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 8,314 516 (965) 900 -- --
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,981 (3,621) 17,566 948 -- --
Transfers between funds ............ (7,729) -- -- 14,197 -- --
Surrenders ......................... -- (8,876) (16) (4,028) -- --
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... 367 5,439 (184) 439 -- --
Deductions for surrender charges
(note 2d) ........................ -- (1,187) (4) (271) -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,492) (1,311) (1,674) (470) -- --
-------- -------- -------- -------- -------- --------
Net equity transactions ........ (6,873) (9,556) 15,688 10,815 -- --
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 1,441 (9,040) 14,723 11,715 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 56,798 68,695 53,753 3,878 -- --
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 58,239 59,655 68,476 15,593 -- --
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
ACVPINT
------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- 162 233
Mortality and expense charges
(note 3) ......................... (99) (33) (26)
-------- -------- --------
Net investment activity .......... (99) 129 207
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 12,103 2,770 6,017
Cost of mutual funds sold .......... (8,732) (2,158) (5,239)
-------- -------- --------
Realized gain (loss) on
investments .................... 3,371 612 778
Change in unrealized gain (loss)
on investments ................... (1,389) 4,104 2,848
-------- -------- --------
Net gain (loss) on investments ... 1,982 4,716 3,626
-------- -------- --------
Reinvested capital gains ........... -- 1,666 451
-------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 1,883 6,511 4,284
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,342 1,005 (942)
Transfers between funds ............ (1,775) -- --
Surrenders ......................... -- (1,778) --
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... (9,312) 175 --
Deductions for surrender charges
(note 2d) ........................ -- (238) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,256) (607) (572)
-------- -------- --------
Net equity transactions ........ (11,001) (1,443) (1,514)
-------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (9,118) 5,068 2,770
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 34,574 27,751 24,852
-------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 25,456 32,819 27,622
======== ======== ========
</TABLE>
(Continued)
7
<PAGE> 7
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
ACVPVALUE DRYSRGRO
------------------------------ -------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 68 -- -- -- -- --
Mortality and expense charges
(note 3) ......................... (27) (1) -- (346) (79) (33)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 41 (1) -- (346) (79) (33)
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 137 -- -- 1,662 8,521 --
Cost of mutual funds sold .......... (155) -- -- (859) (5,506) --
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... (18) -- -- 803 3,015 --
Change in unrealized gain (loss)
on investments ................... 234 (377) -- 10,110 5,224 5,671
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... 216 (377) -- 10,913 8,239 5,671
-------- -------- -------- -------- -------- --------
Reinvested capital gains ........... 642 5 -- -- -- --
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 899 (373) -- 10,567 8,160 5,638
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 781 6,329 -- 5,105 14,002 7,270
Transfers between funds ............ -- -- -- 22,941 -- --
Surrenders ......................... -- -- -- (352) (10,248) (27)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- 4 7,203 --
Deductions for surrender charges
(note 2d) ........................ -- -- -- (24) (1,371) (7)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (150) -- -- (2,064) -- (487)
-------- -------- -------- -------- -------- --------
Net equity transactions ........ 631 6,329 -- 25,610 9,586 6,749
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 1,530 5,956 -- 36,177 17,746 12,387
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 6,543 -- -- 69,959 42,855 30,638
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 8,073 5,956 -- 106,136 60,601 43,025
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
DRYSTKIX
------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 2,739 2,456 2,254
Mortality and expense charges
(note 3) ......................... (1,877) (1,100) (730)
-------- -------- --------
Net investment activity .......... 862 1,356 1,524
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 18,960 27,750 4,881
Cost of mutual funds sold .......... (9,295) (15,913) (3,519)
-------- -------- --------
Realized gain (loss) on
investments .................... 9,665 11,837 1,362
Change in unrealized gain (loss)
on investments ................... 41,033 43,067 44,930
-------- -------- --------
Net gain (loss) on investments ... 50,698 54,904 46,292
-------- -------- --------
Reinvested capital gains ........... 2,126 589 --
-------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 53,686 56,849 47,816
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 26,926 39,514 73,557
Transfers between funds ............ 35,912 -- --
Surrenders ......................... (12,557) (163) (423)
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... 4,796 (29,943) (121)
Deductions for surrender charges
(note 2d) ........................ (846) (22) (108)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (12,214) (1,115) (541)
-------- -------- --------
Net equity transactions ........ 42,017 8,271 72,364
-------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 95,703 65,120 120,180
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 437,299 330,407 197,570
-------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 533,002 395,527 317,750
======== ======== ========
</TABLE>
8
<PAGE> 8
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
DRYCAPAP DRYGRINC
--------------------------------- ---------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 12 1 -- 36 22 10
Mortality and expense charges
(note 3) ......................... (856) (5) -- (31) (2) --
--------- --------- --------- --------- --------- ---------
Net investment activity .......... (844) (4) -- 5 20 10
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 1,148 8,403 -- 238 571 523
Cost of mutual funds sold .......... (892) (7,587) -- (232) (588) (540)
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 256 816 -- 6 (17) (17)
Change in unrealized gain (loss)
on investments ................... 15,571 1,181 -- 846 (83) 37
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... 15,827 1,997 -- 852 (100) 20
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ........... -- 3 -- -- 67 14
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 14,983 1,996 -- 857 (13) 44
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 4,802 (3,197) -- 924 5,791 999
Transfers between funds ............ 18,542 -- -- 575 -- --
Surrenders ......................... (273) -- -- -- (484) --
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... 308 -- -- -- -- --
Deductions for surrender charges
(note 2d) ........................ (18) -- -- -- (65) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,402) (213) -- (400) -- --
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ 21,959 (3,410) -- 1,099 5,242 999
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 36,942 (1,414) -- 1,956 5,229 1,043
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 202,644 10,431 -- 7,357 841 --
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 239,586 9,017 -- 9,313 6,070 1,043
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FIDVIPEI
---------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 6,187 6,967 6,340
Mortality and expense charges
(note 3) ......................... (1,599) (1,694) (1,172)
--------- --------- ---------
Net investment activity .......... 4,588 5,273 5,168
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 57,934 5,728 5,104
Cost of mutual funds sold .......... (45,097) (4,303) (4,437)
--------- --------- ---------
Realized gain (loss) on
investments .................... 12,837 1,425 667
Change in unrealized gain (loss)
on investments ................... 17,428 19,474 21,176
--------- --------- ---------
Net gain (loss) on investments ... 30,265 20,899 21,843
--------- --------- ---------
Reinvested capital gains ........... 13,676 24,794 31,876
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 48,529 50,966 58,887
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 17,619 40,894 172,915
Transfers between funds ............ (41,351) -- --
Surrenders ......................... (11,636) (441) --
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... 5,070 (1,029) (721)
Deductions for surrender charges
(note 2d) ........................ (784) (59) --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (11,516) (7,920) (11,456)
--------- --------- ---------
Net equity transactions ........ (42,598) 31,445 160,738
--------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 5,931 82,411 219,625
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 417,611 495,985 239,464
--------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 423,542 578,396 459,089
========= ========= =========
</TABLE>
(Continued)
9
<PAGE> 9
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPGR FIDVIPHI
--------------------------------- ----------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 1,154 2,130 2,197 4,513 4,477 2,716
Mortality and expense charges
(note 3) ......................... (2,867) (1,624) (1,316) (196) (82) (74)
--------- --------- --------- --------- --------- ---------
Net investment activity .......... (1,713) 506 881 4,317 4,395 2,642
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 17,254 16,094 10,190 11,804 10,434 3,987
Cost of mutual funds sold .......... (12,043) (13,027) (9,545) (12,013) (9,462) (3,950)
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 5,211 3,067 645 (209) 972 37
Change in unrealized gain (loss)
on investments ................... 18,087 19,351 33,855 (492) (5,310) 54
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... 23,298 22,418 34,500 (701) (4,338) 91
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ........... 72,571 55,712 9,833 169 2,845 336
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 94,156 78,636 45,214 3,785 2,902 3,069
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 41,935 31,824 42,147 2,459 168 6,922
Transfers between funds ............ 110,155 -- -- (10,750) -- --
Surrenders ......................... (18,095) (9,551) (285) -- (391) (128)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... 405 2,133 (259) (822) (433) (2,742)
Deductions for surrender charges
(note 2d) ........................ (1,219) (1,278) (73) -- (52) (52)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (20,560) (4,848) (4,666) (1,421) (1,783) (1,698)
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ 112,621 18,280 36,864 (10,534) (2,491) 2,302
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 206,777 96,916 82,078 (6,749) 411 5,371
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 626,463 416,421 311,789 55,873 58,539 37,907
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 833,240 513,337 393,867 49,124 58,950 43,278
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FIDVIPOV
---------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 343 335 360
Mortality and expense charges
(note 3) ......................... (85) (16) (33)
--------- --------- ---------
Net investment activity .......... 258 319 327
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 2,549 757 6,022
Cost of mutual funds sold .......... (2,252) (634) (5,462)
--------- --------- ---------
Realized gain (loss) on
investments .................... 297 123 560
Change in unrealized gain (loss)
on investments ................... 423 1,298 586
--------- --------- ---------
Net gain (loss) on investments ... 720 1,421 1,146
--------- --------- ---------
Reinvested capital gains ........... 554 987 1,428
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 1,532 2,727 2,901
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,842 1,417 (749)
Transfers between funds ............ (905) -- --
Surrenders ......................... (2,958) -- (79)
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... 1,515 (832) (2,300)
Deductions for surrender charges
(note 2d) ........................ (199) -- (20)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (620) (324) (585)
--------- --------- ---------
Net equity transactions ........ (1,325) 261 (3,733)
--------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 207 2,988 (832)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 21,834 17,383 19,938
--------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 22,041 20,371 19,106
========= ========= =========
</TABLE>
10
<PAGE> 10
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
FIDVIPAM FIDVIPCON
--------------------------------- ---------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 3,167 4,043 3,614 2,438 2,496 2,011
Mortality and expense charges
(note 3) ......................... (392) (188) (196) (2,146) (1,141) (678)
--------- --------- --------- --------- --------- ---------
Net investment activity .......... 2,775 3,855 3,418 292 1,355 1,333
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 2,309 19,485 7,398 18,050 18,884 1,261
Cost of mutual funds sold .......... (2,059) (17,426) (7,119) (9,887) (12,347) (1,050)
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 250 2,059 279 8,163 6,537 211
Change in unrealized gain (loss)
on investments ................... (2,099) (6,904) 445 29,988 32,349 19,908
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... (1,849) (4,845) 724 38,151 38,886 20,119
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ........... 4,012 12,128 9,065 17,876 18,366 5,315
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 4,938 11,138 13,207 56,319 58,607 26,767
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 790 10,486 25,549 19,635 5,913 152,706
Transfers between funds ............ 7,158 -- -- 60,672 -- --
Surrenders ......................... -- -- -- (3,297) (551) (112)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (190) (17,821) (11) (11,328) (3,470) (514)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (222) (74) (29)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (2,275) (1,771) (1,369) (7,268) (895) (1,181)
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ 5,483 (9,106) 24,169 58,192 923 150,870
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 10,421 2,032 37,376 114,511 59,530 177,637
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 95,340 121,091 102,479 488,648 352,512 117,335
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 105,761 123,123 139,855 603,159 412,042 294,972
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
FIDVIPGROP
--------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 85 9 --
Mortality and expense charges
(note 3) ......................... (35) -- --
--------- --------- ---------
Net investment activity .......... 50 9 --
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 6,533 -- --
Cost of mutual funds sold .......... (5,907) -- --
--------- --------- ---------
Realized gain (loss) on
investments .................... 626 -- --
Change in unrealized gain (loss)
on investments ................... (136) 144 --
--------- --------- ---------
Net gain (loss) on investments ... 490 144 --
--------- --------- ---------
Reinvested capital gains ........... 160 33 --
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 700 186 --
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,576 2,985 --
Transfers between funds ............ 4,979 -- --
Surrenders ......................... (3,125) -- --
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... 665 -- --
Deductions for surrender charges
(note 2d) ........................ (210) -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (605) -- --
--------- --------- ---------
Net equity transactions ........ 3,280 2,985 --
--------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 3,980 3,171 --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 8,074 -- --
--------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 12,054 3,171 --
========= ========= =========
</TABLE>
(Continued)
11
<PAGE> 11
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
MSEMMKT NSATCAPAP
----------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- -- 23,072 30,957 27,279
Mortality and expense charges
(note 3) ......................... (1) -- -- (31,615) (28,272) (20,103)
---------- ---------- ---------- ---------- ---------- ----------
Net investment activity .......... (1) -- -- (8,543) 2,685 7,176
---------- ---------- ---------- ---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... -- -- -- 189,807 223,261 111,889
Cost of mutual funds sold .......... -- -- -- (74,473) (97,042) (67,455)
---------- ---------- ---------- ---------- ---------- ----------
Realized gain (loss) on
investments .................... -- -- -- 115,334 126,219 44,434
Change in unrealized gain (loss)
on investments ................... 7 -- -- 813,758 1,043,364 871,961
---------- ---------- ---------- ---------- ---------- ----------
Net gain (loss) on investments ... 7 -- -- 929,092 1,169,583 916,395
---------- ---------- ---------- ---------- ---------- ----------
Reinvested capital gains ........... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. 6 -- -- 920,549 1,172,268 923,571
---------- ---------- ---------- ---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 12 -- -- 400,602 351,333 306,021
Transfers between funds ............ 576 -- -- 63,268 -- --
Surrenders ......................... -- -- -- (127,917) (90,711) (53,827)
Death benefits (note 4) ............ -- -- -- (9,070) (52,012) --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (92,436) (105,770) (80,566)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (8,617) (12,134) (13,770)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (4) -- -- (216,756) (66,598) (61,700)
---------- ---------- ---------- ---------- ---------- ----------
Net equity transactions ........ 584 -- -- 9,074 24,108 96,158
---------- ---------- ---------- ---------- ---------- ----------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 590 -- -- 929,623 1,196,376 1,019,729
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ -- -- -- 7,989,325 6,211,213 4,503,820
---------- ---------- ---------- ---------- ---------- ----------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 590 -- -- 8,918,948 7,407,589 5,523,549
========== ========== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
NSATGVTBD
------------------------------------
1999 1998 1997
---------- ---------- ----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 50,067 50,984 46,051
Mortality and expense charges
(note 3) ......................... (7,373) (7,216) (5,948)
---------- ---------- ----------
Net investment activity .......... 42,694 43,768 40,103
---------- ---------- ----------
Proceeds from mutual fund
shares sold ...................... 139,827 125,501 127,942
Cost of mutual funds sold .......... (128,713) (117,427) (131,920)
---------- ---------- ----------
Realized gain (loss) on
investments .................... 11,114 8,074 (3,978)
Change in unrealized gain (loss)
on investments ................... (103,673) 9,402 (1,358)
---------- ---------- ----------
Net gain (loss) on investments ... (92,559) 17,476 (5,336)
---------- ---------- ----------
Reinvested capital gains ........... -- -- --
---------- ---------- ----------
Net change in contract
owners' equity resulting
from operations .............. (49,865) 61,244 34,767
---------- ---------- ----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 110,956 358,741 231,470
Transfers between funds ............ (72,672) -- --
Surrenders ......................... (47,300) (28,681) (23,879)
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... (6,094) (3,251) (19,789)
Deductions for surrender charges
(note 2d) ........................ (3,187) (3,837) (6,109)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (71,143) (204,130) (234,709)
---------- ---------- ----------
Net equity transactions ........ (89,440) 118,842 (53,016)
---------- ---------- ----------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (139,305) 180,086 (18,249)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 1,977,998 1,636,721 1,487,699
---------- ---------- ----------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 1,838,693 1,816,807 1,469,450
========== ========== ==========
</TABLE>
12
<PAGE> 12
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NSATMYMKT NSATSMCO
--------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 2,386 8,974 9,438 -- -- --
Mortality and expense charges
(note 3) ......................... (378) (926) (1,046) (127) (121) (102)
----------- ----------- ----------- ----------- ----------- -----------
Net investment activity .......... 2,008 8,048 8,392 (127) (121) (102)
----------- ----------- ----------- ----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 315,050 33,331 95,007 13,971 2,308 1,266
Cost of mutual funds sold .......... (315,050) (33,331) (95,007) (12,698) (1,819) (1,301)
----------- ----------- ----------- ----------- ----------- -----------
Realized gain (loss) on
investments .................... -- -- -- 1,273 489 (35)
Change in unrealized gain (loss)
on investments ................... -- -- -- 458 3,342 4,947
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments ... -- -- -- 1,731 3,831 4,912
----------- ----------- ----------- ----------- ----------- -----------
Reinvested capital gains ........... -- -- -- -- -- --
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations .............. 2,008 8,048 8,392 1,604 3,710 4,810
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 13,606 24,303 2,942 3,859 6,644 15,357
Transfers between funds ............ (6,777) -- -- (12,805) -- --
Surrenders ......................... (227,277) (2,637) (4,417) -- (896) (26)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (8,808) (292) (3,517) (941) (992) (2,185)
Deductions for surrender charges
(note 2d) ........................ (15,310) (353) (992) -- (120) (7)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (5,226) (46,468) (51,479) (1,339) (3) --
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions ........ (249,792) (25,447) (57,463) (11,226) 4,633 13,139
----------- ----------- ----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (247,784) (17,399) (49,071) (9,622) 8,343 17,949
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............... 325,058 352,121 397,333 42,336 60,766 40,021
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 77,274 334,722 348,262 32,714 69,109 57,970
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NSATTOTRE
---------------------------------------
1999 1998 1997
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 75,418 97,584 118,776
Mortality and expense charges
(note 3) ......................... (75,142) (74,849) (55,922)
----------- ----------- -----------
Net investment activity .......... 276 22,735 62,854
----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 744,939 489,854 617,922
Cost of mutual funds sold .......... (410,369) (274,457) (453,644)
----------- ----------- -----------
Realized gain (loss) on
investments .................... 334,570 215,397 164,278
Change in unrealized gain (loss)
on investments ................... 1,577,046 2,113,031 2,162,182
----------- ----------- -----------
Net gain (loss) on investments ... 1,911,616 2,328,428 2,326,460
----------- ----------- -----------
Reinvested capital gains ........... 8,697 -- --
----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations .............. 1,920,589 2,351,163 2,389,314
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,009,437 1,324,807 995,334
Transfers between funds ............ (114,365) -- --
Surrenders ......................... (427,994) (243,041) (247,702)
Death benefits (note 4) ............ (8,553) (62,497) (997)
Policy loans (net of repayments)
(note 5) ......................... (263,204) (274,872) (199,241)
Deductions for surrender charges
(note 2d) ........................ (28,831) (32,511) (63,365)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (572,448) (640,496) (622,558)
----------- ----------- -----------
Net equity transactions ........ (405,958) 71,390 (138,529)
----------- ----------- -----------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 1,514,631 2,422,553 2,250,785
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ............... 18,984,736 16,284,321 12,760,855
----------- ----------- -----------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 20,499,367 18,706,874 15,011,640
=========== =========== ===========
</TABLE>
(Continued)
13
<PAGE> 13
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTBAL NBAMTGRO
--------------------------------------- ---------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 23,703 33,067 22,402 -- -- --
Mortality and expense charges
(note 3) ......................... (5,432) (5,933) (5,140) (229) (96) (140)
----------- ----------- ----------- ----------- ----------- -----------
Net investment activity .......... 18,271 27,134 17,262 (229) (96) (140)
----------- ----------- ----------- ----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 77,456 97,691 73,853 10,232 6,551 14,209
Cost of mutual funds sold .......... (71,486) (95,100) (70,579) (10,231) (5,652) (13,693)
----------- ----------- ----------- ----------- ----------- -----------
Realized gain (loss) on
investments .................... 5,970 2,591 3,274 1 899 516
Change in unrealized gain (loss)
on investments ................... (35,301) (120,363) 51,808 (1,529) (7,101) 4,446
----------- ----------- ----------- ----------- ----------- -----------
Net gain (loss) on investments ... (29,331) (117,772) 55,082 (1,528) (6,202) 4,962
----------- ----------- ----------- ----------- ----------- -----------
Reinvested capital gains ........... 35,116 232,254 57,499 3,161 15,182 4,858
----------- ----------- ----------- ----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations .............. 24,056 141,616 129,843 1,404 8,884 9,680
----------- ----------- ----------- ----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 85,318 49,593 59,918 5,064 6,436 (430)
Transfers between funds ............ (30,615) -- -- (4,988) -- --
Surrenders ......................... (39,263) (19,285) (11,429) (2,995) (9,307) (112)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (10,140) (24,903) (29,562) (205) 6,583 (211)
Deductions for surrender charges
(note 2d) ........................ (2,645) (2,580) (2,924) (202) (1,245) (29)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (47,291) (22,072) (26,688) (2,323) (1,891) (1,790)
----------- ----------- ----------- ----------- ----------- -----------
Net equity transactions ........ (44,636) (19,247) (10,685) (5,649) 576 (2,572)
----------- ----------- ----------- ----------- ----------- -----------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (20,580) 122,369 119,158 (4,245) 9,460 7,108
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 1,441,951 1,389,720 1,204,996 62,482 57,881 60,625
----------- ----------- ----------- ----------- ----------- -----------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 1,421,371 1,512,089 1,324,154 58,237 67,341 67,733
=========== =========== =========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
NBAMTGUARD
--------------------------------------
1999 1998 1997
----------- ----------- -----------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- -- --
Mortality and expense charges
(note 3) ......................... (3) -- --
----------- ----------- -----------
Net investment activity .......... (3) -- --
----------- ----------- -----------
Proceeds from mutual fund
shares sold ...................... 536 -- --
Cost of mutual funds sold .......... (505) -- --
----------- ----------- -----------
Realized gain (loss) on
investments .................... 31 -- --
Change in unrealized gain (loss)
on investments ................... 86 -- --
----------- ----------- -----------
Net gain (loss) on investments ... 117 -- --
----------- ----------- -----------
Reinvested capital gains ........... -- -- --
----------- ----------- -----------
Net change in contract
owners' equity resulting
from operations .............. 114 -- --
----------- ----------- -----------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 88 -- --
Transfers between funds ............ 533 -- --
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) ........ (18) -- --
----------- ----------- -----------
Net equity transactions ........ 603 -- --
----------- ----------- -----------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 717 -- --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 512 -- --
----------- ----------- -----------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 1,229 -- --
=========== =========== ===========
</TABLE>
14
<PAGE> 14
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
NBAMTLMAT NBAMTPART
------------------------------ ------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 225 645 516 1,540 542 209
Mortality and expense charges
(note 3) ......................... (16) (5) (9) (528) (345) (138)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 209 640 507 1,012 197 71
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 8,370 397 2,951 26,687 21,721 1,982
Cost of mutual funds sold .......... (8,382) (415) (2,952) (22,628) (13,410) (1,452)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... (12) (18) (1) 4,059 8,311 530
Change in unrealized gain (loss)
on investments ................... (172) (372) (224) 9,005 (17,571) 7,943
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... (184) (390) (225) 13,064 (9,260) 8,473
-------- -------- -------- -------- -------- --------
Reinvested capital gains ........... -- -- -- 2,679 17,062 3,214
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 25 250 282 16,755 7,999 11,758
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 750 558 (1,792) 12,403 44,811 30,917
Transfers between funds ............ -- -- -- (12,877) -- --
Surrenders ......................... -- -- -- (83) (8,728) (28)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (7,954) 3 -- 4,863 (12,815) (1,227)
Deductions for surrender charges
(note 2d) ........................ -- -- -- (6) (1,168) (7)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (343) -- -- (3,170) (1,343) (853)
-------- -------- -------- -------- -------- --------
Net equity transactions ........ (7,547) 561 (1,792) 1,130 20,757 28,802
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (7,522) 811 (1,510) 17,885 28,756 40,560
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 11,220 10,016 11,099 129,095 133,951 54,539
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 3,698 10,827 9,589 146,980 162,707 95,099
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
OPPBDFD
------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 538 70 160
Mortality and expense charges
(note 3) ......................... (45) (1) (6)
-------- -------- --------
Net investment activity .......... 493 69 154
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 698 433 3,370
Cost of mutual funds sold .......... (685) (423) (3,323)
-------- -------- --------
Realized gain (loss) on
investments .................... 13 10 47
Change in unrealized gain (loss)
on investments ................... (799) 15 (90)
-------- -------- --------
Net gain (loss) on investments ... (786) 25 (43)
-------- -------- --------
Reinvested capital gains ........... 52 63 17
-------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. (241) 157 128
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,347 14 (2,617)
Transfers between funds ............ -- -- --
Surrenders ......................... -- -- (73)
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- (275) (8)
Deductions for surrender charges
(note 2d) ........................ -- -- (19)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (932) -- (315)
-------- -------- --------
Net equity transactions ........ 415 (261) (3,032)
-------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 174 (104) (2,904)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 11,242 4,084 7,961
-------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 11,416 3,980 5,057
======== ======== ========
</TABLE>
15
(Continued)
<PAGE> 15
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
OPPGISEC OPPGRO
------------------------------ ------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 715 1,229 476 45 23 --
Mortality and expense charges
(note 3) ......................... (244) (65) (55) (61) (1) --
-------- -------- -------- -------- -------- --------
Net investment activity .......... 471 1,164 421 (16) 22 --
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 11,857 450 486 294 -- --
Cost of mutual funds sold .......... (8,633) (319) (403) (247) -- --
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... 3,224 131 83 47 -- --
Change in unrealized gain (loss)
on investments ................... 2,110 1,009 4,986 1,871 238 --
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... 5,334 1,140 5,069 1,918 238 --
-------- -------- -------- -------- -------- --------
Reinvested capital gains ........... 2,005 4,626 -- 490 280 --
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 7,810 6,930 5,490 2,392 540 --
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 3,943 4,055 19,639 1,258 3,479 --
Transfers between funds ............ 5 -- -- 10,818 -- --
Surrenders ......................... (3,037) -- (38) -- -- --
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (7,732) -- -- (68) -- --
Deductions for surrender charges
(note 2d) ........................ (205) -- (10) -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,509) (775) (540) (529) -- --
-------- -------- -------- -------- -------- --------
Net equity transactions ........ (8,535) 3,280 19,051 11,479 3,479 --
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (725) 10,210 24,541 13,871 4,019 --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 68,885 56,530 22,931 9,566 502 --
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 68,160 66,740 47,472 23,437 4,521 --
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 317 74 89
Mortality and expense charges
(note 3) ......................... (37) (1) (1)
-------- -------- --------
Net investment activity .......... 280 73 88
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 17 -- 32
Cost of mutual funds sold .......... (14) -- (30)
-------- -------- --------
Realized gain (loss) on
investments .................... 3 -- 2
Change in unrealized gain (loss)
on investments ................... (2) 49 156
-------- -------- --------
Net gain (loss) on investments ... 1 49 158
-------- -------- --------
Reinvested capital gains ........... 458 431 159
-------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 739 553 405
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 741 237 1,026
Transfers between funds ............ -- -- --
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) ........ (320) -- --
-------- -------- --------
Net equity transactions ........ 421 237 1,026
-------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 1,160 790 1,431
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 8,942 7,722 4,224
-------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 10,102 8,512 5,655
======== ======== ========
</TABLE>
16
<PAGE> 16
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
STOPP2 STDISC2
--------------------------------- ---------------------------------
1999 1998 1997 1999 1998 1997
--------- --------- --------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- 44 224 -- -- --
Mortality and expense charges
(note 3) ......................... (560) (301) (186) (85) (37) (30)
--------- --------- --------- --------- --------- ---------
Net investment activity .......... (560) (257) 38 (85) (37) (30)
--------- --------- --------- --------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 6,651 8,255 2,322 4,206 11,620 2,819
Cost of mutual funds sold .......... (5,062) (5,887) (2,091) (4,681) (10,017) (3,367)
--------- --------- --------- --------- --------- ---------
Realized gain (loss) on
investments .................... 1,589 2,368 231 (475) 1,603 (548)
Change in unrealized gain (loss)
on investments ................... 8,957 (2,239) 400 (3,830) 259 1,524
--------- --------- --------- --------- --------- ---------
Net gain (loss) on investments ... 10,546 129 631 (4,305) 1,862 976
--------- --------- --------- --------- --------- ---------
Reinvested capital gains ........... 15,628 16,130 7,197 3,517 367 --
--------- --------- --------- --------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 25,614 16,002 7,866 (873) 2,192 946
--------- --------- --------- --------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 8,527 15,531 21,749 1,206 (4,079) 6,752
Transfers between funds ............ (5,286) -- -- 3,108 -- --
Surrenders ......................... (280) (3,409) (937) -- (1,612) (96)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (534) (4,423) (1,521) 1,251 (239) (195)
Deductions for surrender charges
(note 2d) ........................ (19) (456) (240) -- (216) (25)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (4,576) (526) (245) (631) (39) (226)
--------- --------- --------- --------- --------- ---------
Net equity transactions ........ (2,168) 6,717 18,806 4,934 (6,185) 6,210
--------- --------- --------- --------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 23,446 22,719 26,672 4,061 (3,993) 7,156
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 135,650 115,087 59,160 18,874 32,100 15,722
--------- --------- --------- --------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 159,096 137,806 85,832 22,935 28,107 22,878
========= ========= ========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
STINTSTK2
---------------------------------
1999 1998 1997
--------- --------- ---------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... 29 148 238
Mortality and expense charges
(note 3) ......................... (29) (8) (13)
--------- --------- ---------
Net investment activity .......... -- 140 225
--------- --------- ---------
Proceeds from mutual fund
shares sold ...................... 6,309 166 453
Cost of mutual funds sold .......... (7,881) (187) (448)
--------- --------- ---------
Realized gain (loss) on
investments .................... (1,572) (21) 5
Change in unrealized gain (loss)
on investments ................... 2,468 688 596
--------- --------- ---------
Net gain (loss) on investments ... 896 667 601
--------- --------- ---------
Reinvested capital gains ........... -- -- 356
--------- --------- ---------
Net change in contract
owners' equity resulting
from operations .............. 896 807 1,182
--------- --------- ---------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 757 1,329 1,482
Transfers between funds ............ -- -- --
Surrenders ......................... -- -- --
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... (5,995) -- --
Deductions for surrender charges
(note 2d) ........................ -- -- --
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (292) (180) (176)
--------- --------- ---------
Net equity transactions ........ (5,530) 1,149 1,306
--------- --------- ---------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (4,634) 1,956 2,488
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 12,426 11,856 13,282
--------- --------- ---------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 7,792 13,812 15,770
========= ========= =========
</TABLE>
(Continued)
17
<PAGE> 17
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
VEWRLDBD VEWRLDEMKT VEWRLDHAS
--------------------------- --------------------------- ---------------------------
1999 1998 1997 1999 1998 1997 1999 1998 1997
------- ------- ------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 68 15 55 -- 48 1 83 51 360
Mortality and expense charges
(note 3) ......................... (7) -- -- (21) -- -- (23) (6) (14)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net investment activity .......... 61 15 55 (21) 48 1 60 45 346
------- ------- ------- ------- ------- ------- ------- ------- -------
Proceeds from mutual fund
shares sold ...................... 12 124 84 1,572 2,898 511 1,282 8,582 5,491
Cost of mutual funds sold .......... (11) (124) (89) (2,316) (4,179) (522) (2,289) (9,427) (6,150)
------- ------- ------- ------- ------- ------- ------- ------- -------
Realized gain (loss) on
investments .................... 1 -- (5) (744) (1,281) (11) (1,007) (845) (659)
Change in unrealized gain (loss)
on investments ................... (223) 39 (66) 3,038 (422) 1,177 1,891 (1,829) (258)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net gain (loss) on investments ... (222) 39 (71) 2,294 (1,703) 1,166 884 (2,674) (917)
------- ------- ------- ------- ------- ------- ------- ------- -------
Reinvested capital gains ........... 30 -- -- -- 43 -- -- 1,261 487
------- ------- ------- ------- ------- ------- ------- ------- -------
Net change in contract
owners' equity resulting
from operations .............. (131) 54 (16) 2,273 (1,612) 1,167 944 (1,368) (84)
------- ------- ------- ------- ------- ------- ------- ------- -------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 186 (21) (98) 239 (2,573) 11,378 659 (6,404) 4,893
Transfers between funds ............ -- -- -- 2,222 -- -- (698) -- --
Surrenders ......................... -- -- -- -- (278) -- -- (229) --
Death benefits (note 4) ............ -- -- -- -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... -- -- -- (187) -- -- (594) (1,486) (4,988)
Deductions for surrender charges
(note 2d) ........................ -- -- -- -- -- -- -- (31) (138)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (158) -- -- (123) -- -- (432) -- --
------- ------- ------- ------- ------- ------- ------- ------- -------
Net equity transactions ........ 28 (21) (98) 2,151 (2,851) 11,378 (1,065) (8,150) (233)
------- ------- ------- ------- ------- ------- ------- ------- -------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (103) 33 (114) 4,424 (4,463) 12,545 (121) (9,518) (317)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 1,776 1,602 1,698 4,164 8,768 -- 5,472 16,122 19,418
------- ------- ------- ------- ------- ------- ------- ------- -------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 1,673 1,635 1,584 8,588 4,305 12,545 5,351 6,604 19,101
======= ======= ======= ======= ======= ======= ======= ======= =======
</TABLE>
18
<PAGE> 18
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
VKMSRESEC WPINTEQ
------------------------------ ------------------------------
1999 1998 1997 1999 1998 1997
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ 1,317 38 27 -- -- --
Mortality and expense charges
(note 3) ......................... (74) (32) (22) (84) (34) (32)
-------- -------- -------- -------- -------- --------
Net investment activity .......... 1,243 6 5 (84) (34) (32)
-------- -------- -------- -------- -------- --------
Proceeds from mutual fund
shares sold ...................... 5,353 2,639 1,320 7,287 1,443 2,248
Cost of mutual funds sold .......... (6,720) (2,554) (957) (7,607) (1,592) (2,132)
-------- -------- -------- -------- -------- --------
Realized gain (loss) on
investments .................... (1,367) 85 363 (320) (149) 116
Change in unrealized gain (loss)
on investments ................... 1,537 (1,972) 620 1,811 3,253 3,022
-------- -------- -------- -------- -------- --------
Net gain (loss) on investments ... 170 (1,887) 983 1,491 3,104 3,138
-------- -------- -------- -------- -------- --------
Reinvested capital gains ........... -- 378 55 -- -- --
-------- -------- -------- -------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 1,413 (1,503) 1,043 1,407 3,070 3,106
-------- -------- -------- -------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,967 13,719 14,611 4,084 1,799 4,050
Transfers between funds ............ (5,001) -- -- -- -- --
Surrenders ......................... -- (2,229) (26) -- -- (1,323)
Death benefits (note 4) ............ -- -- -- -- -- --
Policy loans (net of repayments)
(note 5) ......................... (292) (89) (1,173) (7,088) -- (102)
Deductions for surrender charges
(note 2d) ........................ -- (298) (7) -- -- (338)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (612) -- (10) (893) -- --
-------- -------- -------- -------- -------- --------
Net equity transactions ........ (3,938) 11,103 13,395 (3,897) 1,799 2,287
-------- -------- -------- -------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (2,525) 9,600 14,438 (2,490) 4,869 5,393
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 20,855 20,959 4,604 26,587 24,083 19,473
-------- -------- -------- -------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 18,330 30,559 19,042 24,097 28,952 24,866
======== ======== ======== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
WPPVENCAP
-----------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... -- -- --
Mortality and expense charges
(note 3) ......................... (4) -- --
-------- -------- --------
Net investment activity .......... (4) -- --
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 1 -- --
Cost of mutual funds sold .......... (1) -- --
-------- -------- --------
Realized gain (loss) on
investments .................... -- -- --
Change in unrealized gain (loss)
on investments ................... 127 156 --
-------- -------- --------
Net gain (loss) on investments ... 127 156 --
-------- -------- --------
Reinvested capital gains ........... -- -- --
-------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 123 156 --
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 56 875 --
Transfers between funds ............ -- -- --
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) ........ (18) -- --
-------- -------- --------
Net equity transactions ........ 38 875 --
-------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... 161 1,031 --
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 978 -- --
-------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... 1,139 1,031 --
======== ======== ========
</TABLE>
(Continued)
19
<PAGE> 19
NATIONWIDE VLI SEPARATE ACCOUNT-3
STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS' EQUITY
SIX MONTH PERIODS ENDED JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
<TABLE>
<CAPTION>
WPSMCOGR
------------------------------
1999 1998 1997
-------- -------- --------
<S> <C> <C> <C>
INVESTMENT ACTIVITY:
Reinvested dividends ............... $ -- -- --
Mortality and expense charges
(note 3) ......................... (104) (79) (101)
-------- -------- --------
Net investment activity .......... (104) (79) (101)
-------- -------- --------
Proceeds from mutual fund
shares sold ...................... 16,866 16,915 11,072
Cost of mutual funds sold .......... (15,533) (12,161) (8,717)
-------- -------- --------
Realized gain (loss) on
investments .................... 1,333 4,754 2,355
Change in unrealized gain (loss)
on investments ................... (522) (2,291) (744)
-------- -------- --------
Net gain (loss) on investments ... 811 2,463 1,611
-------- -------- --------
Reinvested capital gains ........... -- -- --
-------- -------- --------
Net change in contract
owners' equity resulting
from operations .............. 707 2,384 1,510
-------- -------- --------
EQUITY TRANSACTIONS:
Purchase payments received from
contract owners .................. 1,607 (15,177) 2,282
Transfers between funds ............ (12,646) -- --
Surrenders ......................... -- -- (5,651)
Death benefits (note 4) ............ -- -- --
Policy loans (net of repayments)
(note 5) ......................... (3,254) (53) 3,185
Deductions for surrender charges
(note 2d) ........................ -- -- (1,446)
Redemptions to pay cost of insurance
charges and administration
charges (notes 2b and 2c) ........ (1,140) (1) (173)
-------- -------- --------
Net equity transactions ........ (15,433) (15,231) (1,803)
-------- -------- --------
NET CHANGE IN CONTRACT
OWNERS' EQUITY ..................... (14,726) (12,847) (293)
CONTRACT OWNERS' EQUITY
BEGINNING OF PERIOD ................ 39,373 54,327 53,633
-------- -------- --------
CONTRACT OWNERS' EQUITY
END OF PERIOD ...................... $ 24,647 41,480 53,340
======== ======== ========
</TABLE>
See accompanying notes to financial statements.
- --------------------------------------------------------------------------------
20
<PAGE> 20
NATIONWIDE VLI SEPARATE ACCOUNT-3
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 1999, 1998 AND 1997
(UNAUDITED)
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Organization and Nature of Operations
The Nationwide VLISeparate Account-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 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);
American Century VP - American Century VP Advantage (ACVPAdv)
American Century VP - American Century VP Balanced (ACVPBal)
American Century VP - American Century VP Capital Appreciation
(ACVPCapAp)
American Century VP - American Century VP Income & Growth
(ACVPIncGr)
American Century VP - American Century VP International (ACVPInt)
American Century VP - American Century VP Value (ACVPValue)
The Dreyfus Socially Responsible Growth Fund, Inc. (DrySRGro)
Dreyfus Stock Index Fund (DryStkIx)
Portfolios of the Dreyfus Variable Investment Fund (Dreyfus VIF);
Dreyfus VIF - Capital Appreciation Portfolio (DryCapAp)
Dreyfus VIF - Growth and Income Portfolio (DryGrInc)
Portfolios of the Fidelity Variable Insurance Products Fund (Fidelity
VIP);
Fidelity VIP - Equity-Income Portfolio (FidVIPEI)
Fidelity VIP - Growth Portfolio (FidVIPGr)
Fidelity VIP - High Income Portfolio (FidVIPHI)
Fidelity VIP - Overseas Portfolio (FidVIPOv)
Portfolios of the Fidelity Variable Insurance Products Fund II
(Fidelity VIP-II);
Fidelity VIP-II - Asset Manager Portfolio (FidVIPAM)
Fidelity VIP-II - Contrafund Portfolio (FidVIPCon)
Portfolio of the Fidelity Variable Insurance Products Fund III
(Fidelity VIP-III);
Fidelity VIP-III - Growth Opportunities Portfolio (FidVIPGrOp)
Portfolio of the Morgan Stanley Universal Funds, Inc. (Morgan Stanley);
Morgan Stanley - Emerging Markets Debt Portfolio (MSEmMkt)
21
<PAGE> 21
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 Life Investment Trust (Van Kampen LIT);
Van Kampen LIT - Morgan Stanley Real Estate Securities Portfolio
(VKMSRESec)
Portfolios of the Warburg Pincus Trust;
Warburg Pincus Trust - International Equity Portfolio (WPIntEq)
Warburg Pincus Trust - Post Venture Capital Portfolio (WPPVenCap)
Warburg Pincus Trust - Small Company Growth Portfolio (WPSmCoGr)
At June 30, 1999, contract owners have invested in all of the above
funds except for Nationwide SAT - Small Cap Value Fund. 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.
A contract owner may choose from among a number of different underlying
mutual fund options. The underlying mutual fund options are not
available to the general public directly. The underlying mutual funds
are available as investment options in variable life insurance policies
or variable annuity contracts issued by life insurance companies or, in
some cases, through participation in certain qualified pension or
retirement plans.
Some of the underlying mutual funds have been established by investment
advisers which manage publicly traded mutual funds having similar names
and investment objectives. While some of the underlying mutual funds
may be similar to, and may in fact be modeled after, publicly traded
mutual funds, the underlying mutual funds are not otherwise directly
related to any publicly traded mutual fund. Consequently, the
investment performance of publicly traded mutual funds and any
corresponding underlying mutual funds may differ substantially.
22
<PAGE> 22
(c) Security Valuation, Transactions and Related Investment Income
The market value of the underlying mutual funds is based on the closing
net asset value per share at June 30, 1999. The cost of investments
sold is determined on the specific identification basis. Investment
transactions are accounted for on the trade date (date the order to buy
or sell is executed) and dividend income is recorded on the ex-dividend
date.
(d) Federal Income Taxes
Operations of the Account form a part of, and are taxed with,
operations of the Company, which is taxed as a life insurance company
under the provisions of the Internal Revenue Code.
The Company does not provide for income taxes within the Account. Taxes
are the responsibility of the contract owner upon termination or
withdrawal.
(e) Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with generally
accepted accounting principles may require management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities, if
any, at the date of the financial statements and the reported amounts
of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(f) Reclassifications
Certain 1997 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.
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<PAGE> 23
(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.
(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.
24
<PAGE> 24
(7) COMPONENTS OF CONTRACT OWNERS' EQUITY
The following is a summary of contract owners' equity at June 30, 1999.
<TABLE>
<CAPTION>
PERIOD
Contract owners' equity represented by: UNITS UNIT VALUE RETURN*
-------- ---------- ----------
<S> <C> <C> <C> <C>
American Century VP -
American Century VP Advantage .................... 24,599 $ 19.111682 $ 470,128 3%
American Century VP -
American Century VP Balanced ..................... 964 20.037687 19,316 4%
American Century VP -
American Century VP Capital Appreciation ......... 3,528 16.507627 58,239 16%
American Century VP -
American Century VP Income Growth ................ 1,313 11.875525 15,593 9%
American Century VP -
American Century VP International ................ 1,444 17.628910 25,456 7%
American Century VP -
American Century VP Value ........................ 543 14.867552 8,073 13%
The Dreyfus Socially Responsible
Growth Fund, Inc. ................................ 3,336 31.815264 106,136 12%
Dreyfus Stock Index Fund .......................... 16,987 31.377050 533,002 12%
Dreyfus VIF - Capital Appreciation Portfolio ...... 16,953 14.132362 239,586 7%
Dreyfus VIF - Growth and Income Portfolio ......... 659 14.132230 9,313 11%
Fidelity VIP - Equity-Income Portfolio ............ 10,645 39.787906 423,542 12%
Fidelity VIP - Growth Portfolio ................... 17,833 46.724607 833,240 14%
Fidelity VIP - High Income Portfolio .............. 1,748 28.102779 49,124 8%
Fidelity VIP - Overseas Portfolio ................. 1,079 20.427325 22,041 8%
Fidelity VIP-II - Asset Manager Portfolio ......... 4,064 26.023875 105,761 5%
Fidelity VIP-II - Contrafund Portfolio ............ 25,663 23.503049 603,159 11%
Fidelity VIP-III - Growth Opportunities Portfolio . 839 14.367127 12,054 6%
Morgan Stanley -
Emerging Markets Debt Portfolio .................. 75 7.860506 590 13%
Nationwide SAT - Capital Appreciation Fund ........ 252,606 35.307745 8,918,948 11%
Nationwide SAT - Government Bond Fund ............. 104,364 17.618074 1,838,693 (3)%
Nationwide SAT - Money Market Fund ................ 5,694 13.571142 77,274 2%
Nationwide SAT - Small Company Fund ............... 1,880 17.400870 32,714 7%
Nationwide SAT - Total Return Fund ................ 561,928 36.480415 20,499,367 10%
</TABLE>
25
<PAGE> 25
<TABLE>
<S> <C> <C> <C> <C>
Neuberger & Berman AMT -
Balanced Portfolio ............................... 70,555 20.145573 1,421,371 2%
Neuberger & Berman AMT -
Growth Portfolio ................................. 2,239 26.010144 58,237 3%
Neuberger & Berman AMT -
Guardian Portfolio ............................... 113 10.877878 1,229 17%
Neuberger & Berman AMT -
Limited Maturity Bond Portfolio .................. 249 14.850110 3,698 0%
Neuberger & Berman AMT -
Partners Portfolio ............................... 5,540 26.530639 146,980 13%
Oppenheimer VAF - Bond Fund ....................... 644 17.727061 11,416 (2)%
Oppenheimer VAF - Global Securities Fund .......... 3,243 21.017527 68,160 13%
Oppenheimer VAF - Growth Fund ..................... 1,580 14.833265 23,437 15%
Oppenheimer VAF - Multiple Strategies Fund ........ 412 24.520578 10,102 8%
Strong Opportunity Fund II, Inc. .................. 4,412 36.059910 159,096 19%
Strong VIF - Strong Discovery Fund II ............. 1,254 18.289393 22,935 (6)%
Strong VIF - Strong International Stock Fund II ... 774 10.066830 7,792 11%
Van Eck WIT - Worldwide Bond Fund ................. 118 14.178734 1,673 (7)%
Van Eck WIT -
Worldwide Emerging Markets Fund .................. 1,023 8.394502 8,588 45%
Van Eck WIT - Worldwide Hard Assets Fund .......... 372 14.384048 5,351 18%
Van Kampen LIT - Morgan Stanley
Real Estate Securities Portfolio ................. 1,067 17.178756 18,330 8%
Warburg Pincus Trust -
International Equity Portfolio ................... 1,915 12.583549 24,097 6%
Warburg Pincus Trust -
Post Venture Capital Portfolio ................... 84 13.559677 1,139 12%
Warburg Pincus Trust -
Small Company Growth Portfolio ................... 1,489 16.552974 24,647 6%
======= ============= -----------
$36,919,627
===========
</TABLE>
*The period return does not include contract charges satisfied by surrendering
units.
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NATIONWIDE LIFE INSURANCE COMPANY
HOME OFFICE: ONE NATIONWIDE PLAZA - 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
